Business in brief 9 Feb 2012
The total oil exploitation output was estimated at 2.12 million tons, of which, crude oil exploitation output was estimated at 1.41 million tons, up 11.6 percent on year (thanks to increase in overseas mining activities), LPG output was estimated at 65.200 tons, up 26.3 percent on year, and fuel of all types at 567,200 tons, up 11.2 percent on year and gas exploitation was estimated at 0.71 billion cubic meters, down 10.2 percent on year. If considering the working duration in January 2012 (the month of Lunar New Year-Tet) against February 2011, the crude oil exploitation output increased 23.7 percent on year, LPG output surged 27.8 percent, fuel of all types up 11.8 percent and gas output up 6 percent.
State-owned enterprises must go IPO within 3 months from the date their equitization proposal is approved. State-owned enterprises must go IPO within 3 months since their equitization proposals have been approved, said Finance Ministry’s circular guiding IPO, management and use of IPO proceeds from equitizing 100% state owned enterprises, effective from February 15, 2012. The circular said the share prices sold to investors are auction winning prices bid by investors. Preferential share prices sold to equitized companies’ staff are equal to 60% of lowest auction winning price if the companies go IPO or 60% of lowest arranged price or auctioned price sold to strategic partners.
Vietnamese mobile application developers say their business is growing at a fast pace due to a strong demand in overseas markets. Le Duc Bao, director of AntTek, said his company started developing mobile applications for foreign markets last April and since then its revenues have increased by around 30 percent every month. The major markets are North America and Europe, he told news website thesaigontimes.vn. The apps are sold via major online stores run by Google and Amazon, Bao said. His company also works with mobile network operators to sell the apps to their customers. According to research firm Markets&Markets, the global mobile applications market is expected to be worth US$25 billion by 2015, up from about $6.8 billion in 2010.
Two-way trade between Vietnam and Brazil in 2011 hit more than US$1.4 billion, up 53.8 percent from a year earlier, according to the Brazilian Ministry of Development, Industry and Foreign Trade (MDIC). This is the first time the two-way trade performance has exceeded US$1 billion. Brazil exported goods worth US$794 million to Vietnam and imported commodities valued at US$647 million from Vietnam. Brazil’s key export items to Vietnam included soya beans, cotton, tobacco materials, corn, and iron. Meanwhile, Vietnam exported to Latin America’s largest economy footwear, frozen fish fillets, printer, rubber, fabric, cement, headphones, automobile tires, electric engines etc. According to statistics from MDIC, Vietnam-Brazil two-way trade has increased considerably since 2000, exceeding US$100 million for the first time in 2005 and US$937 million in 2010.
Barite processing businesses in Tuyen Quang province are allowed to export around 70,000 tons of powdered products after meeting domestic use, according to the Government’s direction. Currently, the province is coordinating with the Ministry of Industry and Trade (MoIT) to direct the export of barite powder under the relevant regulations to avoid anti-dumping issues. Barite is used in the petroleum and glass industries, and is among the major materials to produce many chemical products. Exporting barite powder will make an important contribution to improving the province’s goods export turnover, expected to hit more than US$15.1 million this year.
The Vietnam Joint Stock Commercial bank for Industry and Trade (Vietinbank) opened a branch in Vientiane yesterday. At the inauguration ceremony, Lao State Bank Governor Somphao Phaysith and State Bank of Vietnam’s Deputy Governor Dang Thanh Binh praised the branch and said they hoped it would help promote economic co-operation, trade and bilateral investment between the two countries, as well as foster their special relationship. Vietinbank CEO Pham Huy Hung affirmed the branch’s operations would be transparent and efficient. It would become a major commercial bank in Laos to contribute to the country’s socio-economic development, he said. This is the bank’s second overseas branch. The other is in Frankfurt, Germany.
Over 85 listed companies on both of the nation’s stock exchanges have reported losses in the fourth quarter of last year, with many posting losses for the entire year. Many of these operate in the financial, real estate and construction sectors. Only 13 per cent of listed firms so far have released their financial reports for last year.
The HCM City Stock Exchange has extended the suspension of SME Securities Co (SME) as the company has continued to fail to settle its transactions. The Ha Noi Stock Exchange yesterday also suspend SME’s operations on both the listed and unlisted markets until February 15. SME is consulting with its shareholders about halting brokerage operations.
A senior official of the State Capital Investment Corporation (SCIC) said it would establish a financial investment company specializing in direct investments in securities, upon final approval of the plan by the Prime Minister. The official, on condition of anonymity, said that the restructuring would prevent conflicts of interest arising from SCIC from combining its investment activities with its ongoing role as the representative of State holdings in a large number of equitized enterprises.
Coffee exports from Vietnam are expected to soar dramatically this month thanks to favorable weather helping the drying process, said Le Tien Hung, general deputy director of Dak Lak’s Simexco Export and Import Co.
Plastic exporters have already received sufficient export contracts for the first half of this year, with order prices surging 10 per cent over last year, said Ho Duc Lam, deputy chairman of the Vietnam Plastics Association. Lam said that key importing markets for Vietnamese packing, canvas, and household plastic utensils were Japan, the US and Germany. Importers of plastics products have begun to move their orders from China to Vietnam. VPA estimated plastic export turnover this year would be US$1.7 billion, up 25-28 per cent over last year.
The Ha Noi People’s Committee has approved a detailed master plan of the Gia Lam urban area in the outskirt of the capital’s Gia Lam District. The project, which covers 377 ha in Trau Quy Town and the communes of Duong Xa, Kieu Ky and Da Ton, is expected to house a population of between 23,000 and 25,000 when it is completed. The Vietnam Infrastructure Development and Finance Investment Joint Stock Company is in charge of construction.
