Business in brief 27 Nov 2012
The latest developments in the lighting industry will be showcased at the Lighting World Expo to be held in HCM City from November 29 to December 1. To be organized at the Tan Binh Exhibition and Convention Centre, the event has attracted more than 90 local and international companies. Products on display include LED technology, lighting accessories, and commercial, industrial, official, and outdoor lighting.
Vietnam earned US$4 billion in wood and wooden product export over the past ten months of 2012, becoming the largest wood exporter in Southeast Asia. According to the Ministry of Industry and Trade (MoIT), with increasing export volume and expanding markets, Vietnam is currently the sixth biggest timber and wooden product exporter in the world and the second in Asia. The high quality of Vietnamese wooden products has deservedly attracted the attention of the US and Japan markets, said the MoIT. However, only 77 percent of Vietnam’s 13.4 million ha of forests are natural. As a result, the country has to import a large amount of timber for production, which affects the prices of wooden products.
The Japan International Cooperation Agency (JICA) will further support Vietnam in improving the investment environment, said Minister of Planning and Investment Bui Quang Vinh. While working with JICA Vice President, Arakawa in Hanoi on November 26, Minister Vinh said the Vietnam-Japan Joint Initiative on improving the investment environment has finished the fourth phase with positive results. Minister Vinh expressed hope that JICA will further support Vietnam in implementing the fifth phase for a better and effective investment environment, a green growth strategy, a program to cope with climate change, and an e-custom program. For his part, Vice President Arakawa said that JICA is willing to cooperate closely with the Vietnamese side in the implementation of the Vietnam-Japan Joint Initiative.
The Corporation for Financing and Promoting Technology (FPT) gained a total revenue of VND19.7 trillion (US$93 million) in the first 10 months of this year, reaching 75.6 per cent of its yearly plan. Despite the progress, represents a 2.4 per cent drop on the total of the same period last year. It earned a pre-tax profit of VND1.9 trillion (US$90 million) and an after-tax profit of VND1.2 trillion ($57 million). During the 10 months, FPT experienced growth in trading services and exporting software. The growth rate reached 30 per cent in revenue from telecoms, online and information technology services, and 35 per cent in software export value against the same period last year.
The central city has opened a foreign direct investment club in a bid to connect investors. The club has attracted 80 members from foreign-invested projects operating in Da Nang. Chairman of the club Lam Quang Minh said the club would create chances for investors to share experiences about conducting business in the city. The club will hold talks with the city’s administration on environmental investment and priority policies. The city has attracted 236 foreign-invested projects with US$3.45 billion so far. Since early this year, 165 of Da Nang’s foreign-invested enterprises have created over 38,000 jobs with an average monthly income of VND2.8 million ($133).
Passavant-Roediger GmbH, a German subsidiary of Drake & Scull International (DSI), won a contract to expand the Thu Duc water treatment plant, its first project in Vietnam. The $46 million project includes constructing a 300,000 cubic meter a day plant that treats river water, providing drinking water to area residents, the company said in a statement. Passavant-Roediger will also be responsible for building the river water intake pumping station and pressure mains pipes delivering water to the plant.
Toyota Motor Vietnam Company launched its new authorized service center, the Toyota Hiroshima Vinh Phuc Ltd Company (Toyota Hiroshima Vinh Phuc) on Saturday in Vinh Phuc Province to provide services of maintenance, body repair and painting. The Toyota Hiroshima Vinh Phuc had $10 million and was built on a total area of 9.000 sq.m, including a 2,100-sq.m area service which would serve 39,000 units of auto per year. So far, the Toyota Vietnam has a head office in Vinh Phuc, two branches in Ha Noi and HCM City, 24 official sale agencies, seven branches of sale agency and three authorized service centers.
The northeastern province of Quang Ninh licenced four foreign-invested projects capitalized at US$412 million in the first nine months of this year, up 15 times in value against 2011. It is now home to 93 valid foreign direct investment (FDI) projects, with a total registered capital of US$4.2 billion. The US takes lead among 17 countries and territories pouring investment in six projects, accounting for US$2.4 billion of the registered capital, or 59 percent of the total FDI in Quang Ninh. Notably, most FDI projects come from Asia with China and Hong Kong making up 57 percent of the province’s total projects but only 18 percent of total registered capital. Meanwhile, nations such as Germany, the UK and Japan with financial and high-technology expertise invest a moderate figure.
Star Telecom - Unitel, a joint venture between Lao Asia Telecom and the Vietnam Military Telecommunications Group (Viettel), has won the World Communications Awards 2012 (WCA 2012). The announcement was made at a press conference in Vientiane, Laos on November 26. The WCA 2012 is one of the most prestigious telecommunications prizes launched by the UK’s Total Telecom magazine since 1999. Laos’ Vice Minister of Post and Telecommunications Thansamay Kommasit said this is the first time representatives from the Lao telecoms sector has received an international prize. Unitel has spared no effort to secure its firm position as the largest telecoms network, sharing 44 percent of the mobile market, earning nearly US$160 million in revenue and achieving a growth rate of 40-50 percent.
Can Tho City hosted a seminar on November 26 to strengthen the effectiveness of investment and trade promotion targeting businesses from Hong Kong Special Administrative Region (HKSAR). The event was co-organised by Can Tho City’s People’s Committee and the China Manufacturer Alliance (CMA). Delegates heard introductory briefings on the potential advantages of the entire Mekong River Delta region and Can Tho City, particularly in terms of agricultural, seafood, and processing industries. They hoped local investment incentives will encourage Hong Kong investors to seek out the localities’ business opportunities. A CMA representative said that Hong Kong has offered business-friendly policies under its free market orientation.
Binh Phuoc Province People’s Committee in southern Vietnam has put into opened the Song Mang bridge connecting the province with the Cambodian province of Mondulkiri. The 320 meter bridge was built at a cost of VND12 billion (US$576,000) from the province’s budget. Addressing the opening ceremony, provincial people’s committee vice chairman Nguyen Huy Phong said the bridge would create opportunities for developing tourism and improving the lives of people in the region.
