Business in brief in 25 July
Two-way trade turnover between Vietnam and India in the first six months of this year reached US$1.84 billion, an increase of 0.45 percent over the same period last year. According to the Export-Import Department under the Ministry of Industry and Trade, Vietnam earned nearly US$800 million from exports to India, up by 22.6 percent, while its imports from the South Asian nation were down 11 percent. Vietnam’s trade deficit with India was estimated at nearly US$340 million, 45 percent less than the same period last year. In addition to traditional goods such as agricultural and craft products, Vietnam has also been exporting high value-added products such as steel, rubber and coal to India.
Ho Chi Minh City’s trade surplus in the past seven months has reached more than 1 billion, including US$0.42 billion in July, according to the municipal Department of Statistics. Its exports in the reviewed period are down 1.1 percent to US$16.1 billion but its imports up 4.5 percent to US$15.03 billion. In July alone, exports from the State-owned sector accounted for the highest proportion of 48.7 percent, followed by the foreign-invested sector (28.2 percent) and the non-State owned sector (more than 23.1 percent). The non-state owned sector took the lead in terms of import value (46.7 percent), followed by the State-owned sector (26.8 percent) and the foreign-invested sector (26.5 percent).
Ninety-seven projects in southern Kien Giang Province’s Phu Quoc Island are likely to have their licenses revoked, the Nguoi Lao Dong (The Laborer) newspaper reported on July 23. Only nine out of the 229 projects approved by authorized agencies so far have been completed and put into operation, the report said. The Government inspectorate recently proposed to Prime Minister Nguyen Tan Dung that he directs the Kien Giang administration to revoke investment licenses from 97 projects whose construction has been excessively delayed. The Government inspectors have concluded that the island administration received investment projects without proper planning.
Around 70 small-and medium-sized enterprises (SMEs) from Vietnam will take part in the 9th International Small and Medium Enterprises Fair (CISMEF 2012), scheduled to take place in Guangdong, China this September. The event will focus on energy and environmental protection and is expected to attract a large number of Chinese companies, as well as nearly 4,000 businesses from 20 countries and territories around the world, that will display their products at 5,000 international standard pavilions. Speaking on July 24 in Beijing at a press briefing for the fair, Vietnamese Trade counselor to China, Bui Huy Hoang, praised the event, saying it has greatly benefited to participants, including Vietnam. The Ministry of Industry and Trade is cooperating with relevant agencies to boost dissemination information about the fair in Vietnam and abroad, he said.
Some 200 Chinese enterprises gathered to showcase their products at the 12th China Machinery Fair (ChinaMac Fair 2012) in Ho Chi Minh City on Wednesday. Apart from traditional machinery and equipment products, this year’s fair will see a large number of welding, cutting products and metal processing machine at the Metal and Weld Pavilion. Xinhua news agency reports the four-day fair is expected to draw about 10,000 visitors. The fair is organized by the Vietnam Advertisement and Fair Exhibition Company (VIETFAIR), China Light Industrial Corporation for Foreign Economic and Technical Cooperation (CLETC), and Hong Kong’s Yue Zhao International Exhibition Company with the support of Vietnam’s Industry and Trade Ministry.
The Johnny Rockets Group from the U.S. is looking for opportunities to develop the fast food chain in Vietnam as part of its strategy to expand its brand to potential markets in Southeast Asia. Steve Devine, President of International Development at The Johnny Rockets Group, said that the firm was seeking partners to franchise its fast food restaurant chain in Vietnam. "Vietnam is full of potentials, and we are seeking locations for our very first restaurants here,” Devine said. Before deciding to enter Vietnam, the firm has spent nearly four years studying the market, he added. Hamburgers, French fries and beverages are what will be served at The Johnny Rockets restaurants in the coming time. To penetrate the market, The Johnny Rockets yesterday signed a contract with CB Richard Ellis Vietnam (CBRE) to have CBRE as its property consulting firm in Asia and find suitable locations to open fast food restaurants in Vietnam.
Rusvietpetro, a joint venture between Zarubezhneft OAO (ZRNFT) and Vietnam Oil & Gas Group, plans to start production at an oil field in northern Russia on July 29, International Oil Daily reported, citing company officials. Output at the West Khosedayuskoye oil field in Russia’s Nenets region is expected to reach 180,000 metric tons by the end of the year, IOD reported today. Total recoverable resources at the field are estimated at 20 million metric tons, IOD said.
The Ministry of Information and Communications (MIC) has asked mobile-phone users in Ha Noi not to use signal boosters to enhance voice quality and other attachments. They said this could interfere with mobile signals throughout the city. The ministry said many portable boosters were used where mobile signals were weak, especially in the Old Quarter where there was a highly concentrated population. "The use of personal signal boosters are interfering with the overall quality of mobile signals in the city," said Doan Binh, director of the Authority of Radio Frequency Management in region 1 (ARFM) under MIC. Binh said a mobile operators such as Vinaphone, MobiFone and Viettel had reported their signals were becoming distorted in some areas in Ha Noi.
The country’s leading internet security firm BKAV said it will invest VND334 billion (US$16 million) in building an IT complex at the Hoa Lac hi-tech park, 30km north-west of Ha Noi’s city center. The complex, which will cover an area of 2.3 ha, will include several buildings, including a research and development centre, a software programming section and an internet security quick response center. "The new high tech complex will help us to become a leading internet security developer in the region within the next ten years," said BKAV’s CEO Nguyen Tu Quang. Quang said BKAV had already received an investment license for the project from Hoa Lac hi-tech park. The company aims to expand its business by developing other types of software, including administrative tools for the Government.
Bien Hoa Packaging Co (SVI) announced to pay its first-phase dividend of this year to investors in cash. Dividends, at the rate of 10 per cent, will be paid on August 9. July 27 will be the ex-date – the date on which shares are traded without enjoying previously declared dividend payments.
Telecommunications equipment provider SACOM Development and Investment Corp (SAM) reported that its second-quarter profit reached VND114 billion (US$5.4 million), an impressive improvement compared to a loss of over VND100.6 billion ($4.8 million) during the same period of last year. The first-half profit rose to over VND158.6 billion ($7.6 million). Its gross revenue was VND179.4 billion from April to June, a year-on-year increase of over 13 per cent. Of which, investments in the real estate sector earned the company over VND80.4 billion ($3.8 million) while reimbursement from provisional funds for finance contributed VND40.4 billion ($1.9 million)
Three listed funds under the management of VietFund Management (VFM) reported profits in the second quarter of this year, helping reduce their combined losses from nearly VND1.36 trillion ($64.7 million) from early this year to over VND1 trillion (US$47.8 million) by the end of June. Vietnam Securities Investment Fund’s (VFMVF1) profit in the first half reached VND253 billion ($12 million). Its total investment value rose VND100 billion from the first quarter to over VND1.44 trillion ($68.7 million) by the end of June, 98 per cent of which were invested in securities. Its net asset value (NAV) was VND15,520 ($0.74) with an discount rate of 45 per cent. Second-quarter profits of Vietnam Blue-chips Fund (VFMVF4) and Vietnam Active Fund (VFMVFA) were VND95 billion ($4.5 million) and VND2 billion ($95,200), respectively. Investments of both funds focused on listed securities. NAV of both funds were VND5,100-5,300 with discount rates of 24-26 per cent.
An American business delegation visited the central coastal province of Ninh Thuan last Tuesday to seek investment opportunities. The delegation, which included the US-based Livingston Group, met with provincial authorities to discuss Memorandums of Understanding on investment promotions signed in May. Under the memorandums, the Livingston Group will support Ninh Thuan to develop high-end resorts, plus building a car-tyre plant and other projects , with the major stake coming from E-United.
The central coastal province of Quang Ngai will ert efforts to help overcome financial difficulties to get the Taiwanese-invested Guang Lian Dung Quat steel project up and running. The zone’s management unit had allocated more than 222ha of land to the investor, including 71.8ha cleared. The remaining areas were in the process of clearance. The steel plant was licensed in 2007 with an initial investment capital of US$3.3 billion that is expected to increase to $4.5 billion soon to upgrade technology. The project first phase is expected to be completed next year. The plant is a joint venture between Taiwanese Tycoons Group Enterprise who are involved in the manufacture of steel products, and E-United Steel Group a steel producer in Taiwan.
Bridgestone Vietnam, a Japanese-based tire maker today opens a tire service center dealership in Ha Dong District, Ha Noi. The company also has a plant in the northern port city of Hai Phong, its 50th world factory.
Samsung and Petrosetco Distribution JSC (PSD), a member company of PetroVietnam, last Friday signed an agreement for PSD to become Samsung’s mobile-phone distributor in Vietnam. Samsung expects that the move will expand its distribution network and attract more customers. PSD currently ranks 75th in VNR500, the list of the 500 biggest enterprises in Vietnam.
The Vietnam Coffee and Cocoa Association (VICOFA) has provided 88,000 coffee seedlings to the Central Highland provinces of Dak Lak and Gia Lai for replanting. Existing trees in the region are 20 to 30 years old and are starting to produce low yields. The area planted out covers about 100,000ha.
The Ministry of Agriculture and Rural Development has asked the Ministry of Industry and Trade to allow the importation of about 100,000 tons of sugar from the Hoang Anh Gia Lai Group in Laos. The company, which has invests US$100 million in the new Hoang Anh Attapeu Industrial Zone in Laos to refine sugar, said it could produce 7,000 tons per day. The zone is expected to be completed at the end of this year.
