Business in brief 30 Dec 2011
Vietnam’s coffee export in 2011 is forecasted to hit a record of $2.7 billion for 1.2 million tons, remaining unchanged in export quantity but surging up to 45.4% in value from 2010, according to the Ministry of Agriculture and Rural Development. The country’s coffee export in December slipped slightly from November. The average coffee export price in Jan-Nov reached $2,205 per ton, up 49.2% from the same period last year. The US remained Vietnam’s biggest coffee buyer with 11.7% of the market share and followed by Germany with 10.1%. Some other markets saw relative growth such as Belgium (up 92.8% in quantity and three-fold increase in value on year) and Netherlands (up 46.4% in quantity and two fold increase in value on year). According to the latest report of the International Coffee Organization (ICO), global coffee exports could rise 6% in 2011, to over 120 million bags of 60 kilogram/bag, compared with 96.8 million bags in 2010, despite significantly increasing freight.
Vietnam is estimated to collect VND2,004.4 trillion ($95.28 billion) from retail and services sector in 2011, up 24.2% from 2010, the General Statistics Office (GSO) said. The country’s total revenues were estimated to increase 4.7% in the year (price hike factors or inflation at 18.13% excluded), lower than that of 14% in 2010 GSO added. Trade sector posted VND1,578.2 trillion turnover, up 24.1% from a year earlier, accounting for 78.8% of the country’s total revenue in the year. Hotel and restaurant sector reported VND227 trillion revenue, up 27.4% from 2010 and accounting for 11.3% of the country’s total figure. Services sector showed on-year-increase of 22.1% to VND181 trillion, accounted for 9% of the nation’s total figure. Tourism sector posted VND18.2 trillion, accounted for 0.9% the country’s revenues and up 12.2% from 2010.
The Ministry of Industry and Trade has issued a circular on 2012 import quotas, saying that goods imported from Laos will be taxed at zero percent. Under the circular, the import rate of zero percent will be applied to commodities of Lao origin, including rice of various kinds and tobacco leaves. In addition, imported goods should have a certificate of origin (C/O), issued by an authorized office of the Laos People’s Democratic Republic and customs procedures cleared at border gates. At the same time, Vietnamese entrepreneurs are allowed to import rice and paddy products under import quotas. For importers of tobaccos leaves, they must have a license granted with quotas by the MoIT. The circular will take effect as of January 1, 2012.
Jetstar Pacific Airlines has agreed to let passengers pay fares on mobile phones, in a deal with online payment service OnePay, mobile phone carrier Vinaphone and M-Service. The new service enables frequent travelers to book and pay for plane tickets anywhere from mobile phones on the Vinaphone network. Payment is automated by calling 19001550 or at www.jetstar.com after receiving ticket codes through the MoMo-Mobile Money service, part of the M-Service mobile phone application. This new service makes Jetstar Pacific the first airline in the country to accept mobile payment in addition to online, credit card and face-to-face transactions.
The State Bank of Vietnam (SBV)’s governor on December 26 issued a document allowing Saigon Commercial Joint Stock Bank (SCB) to provide foreign exchange services. Accordingly, the bank will be allowed to provide foreign exchange transactions in the forms of spot transactions, forward, swaps, option right, future contract and other foreign exchange transactions in accordance with the international practice. On the same day, the Governor also issued a document confirming SCB has registered supplying operation for the foreign exchange services such as providing international payment services and performing transactions of buying and selling foreign currency and gold in foreign markets.
Plastics and Rubber Technology Center in Hiep Phuoc Industrial Zone, HCMC has said it is ready to do tests on plastic and rubber products at the request of corporate customers. The lab has state-of-the-art equipment worth over VND80 billion, director Truong Van Long said at a conference in the city on test quality of local labs. In the past, plastics and rubber enterprises had to count on foreign labs but their testing fees were high. The presence of a local plastics and rubber testing center will help push down testing costs for plastics and rubber enterprises. The center plans to construct more specialized labs and collaborate with international certification organizations to directly issue certificates for local products. Aside from domestic customers, the center does tests for foreign-invested footwear and packaging producers active in the city’s export processing and industrial zones. The city is home to around 2,000 plastics and 700 rubber enterprises that account for 80% of national output. So demand for tests on quality of input materials and finished products is high.
The number of international arrivals in Hanoi reached nearly 1.9 million in 2011, a year-on-year increase of 11 percent, according to the capital city’s Department of Culture, Sports and Tourism. About 1.4 million visitors stayed in the capital city, up 15 percent over last year, most coming from China (309,000), Australia (109,000), Japan (115,000) and the Republic of Korea (53,000). Hanoi also welcomed 11.66 million domestic tourists in 2011, up 10 percent compared to the previous year. This is thanks to the Hanoi tourism promotion campaign that has introduced its new products and services to international friends. In addition, more direct air routes have been launched to connect Hanoi to many cities around the world.
The Nam Trieu Shipbuilding Industry Corporation (Nasico) handed over five ships to domestic and foreign partners on Wednesday. These vessels included a 9,200-ton ship delivered to Hanse Capital of Germany, a 53,000-ton cargo ship manufactured for the Hoa Ngoc Lan shipping company and three others for the Nam Trieu shipping company. Nasico is a subsidiary company of the Vietnam Shipbuilding Industry Group (Vinashin), which is implementing a comprehensive restructuring plan. The handover of these ships is a sign that the company’s restructuring plan is on track.
Total revenue for Vietnam Dairy Product Joint Stock Company (Vinamilk) has reached US$1 billion for 2011, according to the company’s external relations manager Bui Thi Huong. Vinamilk reached a record of $133 million in export turnover and signed $10-million milk export contract with Thailand for the first time. Domestically, Vinamilk milk powder products account for about 30 per cent of the market share, a two-fold increase against 2009.
Vietnam aims to export 6 million tons of cement products, including 500,000 tons of cement and 5.5 million tons of clinker, by 2012, primarily to Africa, according to the Vietnam National Cement Association (VNCA). Head of the VNCA’s office Nguyen Van Diep said cement exports had reached 5.5 million tons and reserves hit 3 million tons. The sector’s production achieved just 85 per cent of its total design capacity with 67 million tons, while consumption amounted to 91 per cent of the year’s target. The VNCA estimates total cement consumption in 2012 will reach 60 million tons, 52-53 million tons of which will be consumed domestically.
The State Capital Investment Corporation (SCIC) plans to sell 4 million shares in Tan Tien Plastic Packaging Co (TTP), equivalent to 27.3 per cent of the company’s charter capital, through negotiation. It has set a face value of VND52,000 (US$2.48) a share, which nearly doubles its current price of just VND25,000 ($1.19). Besides SCIC, TTP’s other major stakeholders include Le Minh Cuong (chairman and CEO, 11.2 per cent), FTIF-Templeton Frontier Markets Fund (7.4 per cent) and SSI Vision Fund (5 per cent).
Steelmaker Hoa Phat Group (HPG) will issue 31 million shares to pay for the 2010’s second phase dividend at the rate of 10 per cent. The issue is expected to take place in the first quarter of next year and will be extracted from the company’s undistributed net profit. After the release, HPG’s charter capital will increase from the current VND3.18 trillion (US$151.4 million) to VND3.49 trillion ($166.3 million). By the end of November, the group posted a total revenue of VND16.56 trillion ($788.6 million) and a total net profit of VND1.25 trillion ($59.6 million), completing 95 per cent of its earnings target and 67 per cent of its profit goal for the year.
PetroVietnam Technical Services Corporation (PVS) estimates its net profit this year will reach VND1.25 trillion (US$59.5 million), a year-on-year increase of 10 per cent, exceeding its yearly target by nearly 36 per cent. The company’s total revenue is also projected to surpass its yearly goal by 31 per cent, totaling VND27.5 trillion ($1.3 billion).
