Business in brief in 05 March
Telecom service providers in Vietnam attracted 1.94 million new telephone subscribers during the first two months of the year, an increase of 34.1% over the same period last year. According to the Ministry of Posts and Communications, the figure includes more than 1.93 million mobile phone subscribers and 4,900 landline subscribers. The total number of telephone subscriptions in Vietnam rose to 134.2 million by the end of February 2012, including 119 million mobile phone subscriptions, up 4.3% year on year, and 15.3 million landline subscriptions, down 1.4% over same period last year. Meanwhile, the country has 4.3 million broadband internet subscriptions and 32.6 million internet users by the end of February, up 18.2% and 18.4% year on year. The ministry said the country’s post and telecom services sector posted an estimated revenue of VND22.1 trillion (US$1.06 billion) in the first two months, an increase of 21.4% over the corresponding period in 2011. The domestic post and telecom industry last year obtained total revenues of VN$167.1 trillion (US$7.95 billion), up 19.3% against the figures of 2010.
Tokyo Gas Co Ltd said on Monday that it will hold a news conference at 3:30 pm to make an announcement on a comprehensive business cooperation agreement with PetroVietnam Gas, a subsidiary of Vietnam’s state oil group. Vietnam, facing a shortage of gas, is seeking to lift domestic production and increasing imports of liquefied natural gas (LNG). Japan is the world’s biggest LNG buyer, and Tokyo Gas is one of the country’s biggest LNG buyers.
Japan’s major retail company, the Aeon Group, has officially set up base in the country by establishing the Aeon Vietnam Company in Ho Chi Minh City on March 2. The company also announced its very first construction project, that of the first trade center in Vietnam, to be built in Tan Phu District in Ho Chi Minh City. The Aeon-Tan Phu Celadon trade center project, at a cost of around US$100 million is expected to be complete by early 2014. According to a representative of the Aeon Vietnam Company, this will be a very futuristic trade and retail center, which will also include shops and entertainment areas. The Aeon Group is planning to build about 20 retail centers across the country by 2020. These centers will modernize Vietnam’s retail industry and also help push Vietnamese exports to Japan. The Aeon Group was established in 1926 and is presently operating 14,000 retail centers all over the world.
Saudi Airlines Cargo has announced plans to launch its new B747 freighter flight from Saigon, Vietnam, starting from March 25 in combination with its Hong Kong service. The airline will operate twice a week linking Vietnam with the Middle East and Frankfurt, according to a senior official. Peter Scholten, vice president, commercial, at Saudi Airlines Cargo, said: “Saigon is an emerging market. With China becoming more expensive, production is increasingly being moved to Vietnam and other developing countries. This new service will enable us to expand our network into the region in response to changing market conditions.” Saudi Airlines Cargo operates scheduled freighter services with 12 freighters and sells the belly-capacity on 140 passenger aircraft for Saudi Arabian Airlines spanning a rapidly expanding global network of 225 destinations.
The Department of Commerce (DOC) of the US has announced the sixth preliminary results of administrative review (POR6) on frozen shrimp imported from Vietnam in the period from February 1, 2010 to January 31, 2011. Accordingly, the Minh Phu and Nha Trang Seafood companies will enjoy the zero percent duty. The 0.8 percent rate will be levied on Camimex alone and the 1.03 percent tax will be paid by others. This is the third adjustment the DOC has made to its anti-dumping duties levied on Vietnamese shrimp so far. According to US regulations, import businesses must pay their taxes in advance based on the previous administrative review and taxes will only be collected when a new administrative review is announced.
Lao Airlines has announced the launch of a thrice-weekly Pakse - Savannakhet - Da Nang air service from mid-April. A 65-seat ATR-72 aircraft will leave Pakse at 9.30am, touch down at Savannakhet at 10.10am before arriving in Da Nang at 11.40am on Tuesdays, Thursdays, and Saturdays. The return flights will leave for Savannakhet at 2.10pm on the same days. The Lao carrier will first bring a delegation of tour operators, hoteliers and journalists on a trip to Da Nang and other localities next week to explore tourism products.
AIA Vietnam Insurance Company has reported its new business value, the key performance indicator measuring its business results, in the local market to increase by 29% in 2011 while total premium is forecast to rise by 25%. In its preliminary review of 2011 business, the company also sees the number of in-force policies to increase by 21% against the previous year and raise insurance claims and policy holders’ benefits by 46%. Stephen Clark, CEO of AIA Vietnam, said in a statement released on Wednesday that the insurer will continue to focus on three core factors in its development strategy, customers, product competitiveness and agents, in the coming time to meet increasing demands of local clients. AIA Vietnam currently serves around 300,000 policy holders across the country. Until the end of 2011, the insurer paid out a total of more than VND860 billion in insurance benefits for nearly 132,000 cases.
Industrial zones in the capital city of Hanoi aim to attract investment capital of U$$250 million in 2012. To achieve this goal, the Hanoi Industrial and Export Processing Zone Management Board will promote investment activities, introduce Hanoi’s potential and offer preferential policies to investors. The management board will also do its utmost to help enterprises develop their business and production activities. In 2011, the board licensed 29 new projects and adjusted capital for 21 projects, worth totaling US$191.13 million, a year-on-year increase of 40.5 percent. IZ enterprises achieved high growth, with the total turnover of US$4.068 billion, up 13.8 percent from the previous year. Export turnover reached over US$2.46 billion, up 15.5 percent, while import value increased by 17.7 percent to US$2.48 billion. Up to now, IZs in Hanoi have had 510 registered projects and 115,100 workers.
Almost 60 Vietnamese companies from Ho Chi Minh City have registered to join a business delegation set to visit Myanmar on March 11, to seek a potential export market for Vietnamese products, according to a Vietnamese trade counselor in Myanmar. Vietnamese enterprises are seeking opportunities in new markets like Myanmar. Vietnam’s key exports to Myanmar include steel, garments and textiles, accessories, medicine, medical equipment, construction material, electronic appliances, tubes and tires, machine spare parts, chemical fertilizers and machinery components. Myanmar is a new market and a potential export market for Vietnamese products. According to the Vietnam trade promotion agency in Myanmar, the country ranked 13th in list of exporters to Myanmar last year, showing a total export turnover of US$82.45 million, up 66.5% over 2010. During the first months of 2012, Vietnam earned $7 million from exports to Myanmar.
The business communities of Vietnam and Sri Lanka are keen to expand investment and cooperation in many areas. This view was shared at a Vietnam-Sri Lanka business forum in Hanoi on March 5. Hoang Van Dung, Vice Chairman of Vietnam Chamber of Commerce and Industry (VCCI) said the two countries’ import-export turnover has risen from US$50.5 million in 2009 to US$113.2 million in 2011. Vietnam exports machinery, silk, cloth, plastics and tea, rubber to Sri Lanka and it imports feed for cattle, garments and textiles from the country, he added. The forum, co-organized by the VCCI and the Ceylon Chamber of Commerce, aims to create opportunities for the two business communities to cooperate in the fields of medicine, health care, real estate, seafood, agricultural machinery, technology, chemicals, paper and food production.
The first 1,800-liter batch of Van Phan fish sauce from central Nghe An province has been exported to Malaysia. This is a famous brand of fish sauce widely used in Nghe An province and the north central region. Vo Van Dai, Director of Van Phan seafood joint stock company, said it annually produces one million litres of fish sauce and always improves its quality to meet food safety requirements for export. Van Phan fish sauce is also much sought after in Laos.
The Small-and-Medium-sized Enterprise (SME) networking and mentoring program was launched in Ho Chi Minh City on March 3. It is one of 38 projects that have been financed by the US Department of State. The program is expected to be carried out from now until the end of 2012 by a group of scholars and students of Fulbright and Humphrey scholarship programs under the auspices of the US embassy in Vietnam. Selected executives of SMEs in Hanoi and HCM City will attend a series of regular seminars discussing pressing issues facing their business. The program’s mentors will go along with them to put forth timely assessments and solutions to difficulties they are dealing with.
Despite the impact of global inflation and economic downturn, southern Tien Giang province’s exports have achieved significant results. In the first two months of this year, the province earned US$93 million from exports, up 16 percent compared to the same period last year. Its key export products are rice, seafood, and garments. Of the figure, the domestic sector accounted for 81 percent, while the foreign direct investment sector made up 19 percent. The province’s export markets have expanded throughout the world to include the EU (accounting for 40 percent), Asia, America, Oceania, and Africa. Phan Quoc Nam, Director of the Long Xuyen Ltd Company, said high-quality Vietnamese products can compete with those from China and Thailand. His company aims to increase its exports by 30 percent to US$2 million this year.
Electrolux Vietnam opened its new facility at Hoang Cau, Dong Da District on Friday. Occupying an area of 130 sq.m on two levels, the facility displays a range of household appliances in various models. To constantly improve its commitment to customers, Electrolux offers full service from product information to installation to after-sales service. Over the last 19 years, Electrolux Vietnam has succeeded in providing consumers easy-to-use home appliances. Electrolux Vietnam is a well-established premium household brand with three offices in Ha Noi, HCM City and Da Nang.
Members of the Vietnam Gift and Housewares Association’s southern region on Friday discussed plans to update their designs for the American and European markets. At least 100 producers of gifts and home-decor items from southern provinces met at the seminar to identify the most popular trends and colors preferred by European and US importers. An association official said that local manufacturers were skilled in producing wooden, metal, and rattan indoor and outdoor furniture and home-decor products. The US and European markets prefer ethnic items and personal accessories, according to the association.
