Business in brief in 28 Aug 2012
Vietnam ranked second in footwear exports to Colombia with export revenues reaching more than US$28 million, making up 16 per cent of the Southern American country’s total footwear import value in the first five months of this year. However, the Southeast Asian nation ranked fourth in terms of export volume with more than 1.16 million pairs of shoes. According to the Colombian Association of Footwear and Leather Manufacturers (ACICAM), the country imported almost 25.7 million pairs of shoes worth $177.2 million in the first five months of 2012. China was the Southern American country’s largest footwear exporter with more than 19 million pairs of shoes worth over $105 million.
Vietnam attracted US$8.47 billion in foreign direct investment (FDI) during the first eight months of 2012, equal to 66.1% of the previous year’s figure. The Foreign Investment Agency said that as of August 20, the country had licensed 672 more FDI projects with total registered capital of US$5.52 billion, and approved 244 existing projects with their additional investment of US$2.95 billion. About US$7.28 billion of FDI had been disbursed in the reviewed period, 99.7% of the figure for the same period last year. The newly-licensed projects are primarily focused in the processing, manufacturing, real estate, retail, transport and healthcare sectors. Japan is currently Vietnam’s largest foreign investor with newly-invested and expanded projects worth US$4.33 billion, accounting for 51.1% of the total investment in the Southeast Asian country.
A ‘business matching’ meeting between representatives of Vietnamese firms, including manufacturers of garments and textiles, and their Myanmar counterparts will be held in Myanmar, the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) said. Last year, bilateral trade between Vietnam and Myanmar was over US$ 167 million, up 9.8 percent year-on-year. Textiles and clothing are among the major products imported by Vietnam from Myanmar. Since Myanmar opened to foreign investment in 1988, Vietnam’s investment in Myanmar has grown to US$ 23.65 million as of November 2011, as per official statistics. In 2011, Myanmar exported apparels worth US$ 770 million, according to the Myanmar Garment Manufacturers Association (MGMA).
The two-way trade turnover between Vietnam and Canada reached more than US$2 billion in 2011, six times higher than ten years ago, said Le Hoang Quan, Chairman of the Ho Chi Minh City People’s Committee. At a working session with Canada’s International Trade Minister Edward Fast on August 27, Quan highlighted the effectiveness of investment cooperation between the two countries, saying that Canadian investors have poured US$6 billion into Vietnam. Bilateral relations have constantly developed in various fields, particularly in economics, culture and education, he said. In 2013, Canada and Vietnam will celebrate the 40th anniversary of their bilateral diplomatic relations, he added.
The Ministry of Industry and Trade (MOIT) has quashed rumors that Vietnam is running short of petrol for domestic use and said any hoard of this product will be strictly dealt with by relevant agencies. Vo Van Quyen, head of the Domestic Market Department under the MOIT, said that wholesale petrol companies have an adequate supply of petrol and oil for consumption and that his department will work with relevant agencies to examine filling stations that are said to have refused to serve their customers. Over the past few days, many filling stations have halted operations or not operated at full capacity, reasoning that there is a power cut or a lack of petrol supply from wholesale trading companies. However, wholesale companies have confirmed that they have enough petrol and oil for supply.
Ho Chi Minh City has spared no effort to use official development assistance (ODA) from the Japanese Government in an effective way over the years. Chairman of the Ho Chi Minh City People’s Committee Le Hoang Quan said this at the August 27 working session with Hiroto Arakawa, Vice-President of the Japan International Cooperation Agency (JICA). Quan expressed his sincere thanks for Japan’s ODA, to Vietnam, particularly HCM city in a number infrastructure projects such as building an international terminal at Tan Son Nhat airport, East-West Avenue and the Binh Hung waste water treatment plant. During the working session, the two sides reviewed the progress of ODA projects, funded by JICA, and discussed measures to speed up site clearance along the HCM city-Long Thanh-Dau Tay express way as well as plans to perfect the urban railway system.
Vietnam will help Laos to build two hydro-electric power plants in the southern provinces of Attapeu and Sekong, near the common borderline between the two countries. This is part of an agreement signed in Vientiane on August 27 by representatives from the Lao Government and leaders of Vietnam’s Song Da (Da River) Group and Vietnam-Lao power joint stock company. Accordingly, the two plants, namely Sekong3 and Sekaman 4, will be built at the estimated cost of US$278.5 million and US$128 million, respectively. The Sekong 3 plant with a design capacity of about 205 MW is expected to produce 804 million kWh a year by 2015. The Sekaman 4 plant with a smaller design capacity will supply 316 million kWh a year by 2016. The two projects aim to ensure energy security and boost trade ties of both countries.
Hundreds of local and international firms will display their products at an annual trade fair that opens today in Can Tho City. They include electronic products, cosmetics, garment and textile, machinery, equipment, timber products, and handicrafts. The event until September 3 seeks to help boost sales of domestic companies, particularly those in the Cuu Long (Mekong) Delta, strengthen exchange of information among businesses, and promote technology transfer to improve their competitiveness. A seminar to promote exports from the delta will be held during the fair.
A ground-breaking ceremony for a locally invested soy milk plant was held in Tien Son industrial zone in the northern province of Bac Ninh on Saturday. With a designed capacity of 1 billion cartons a year, Vinasoy-Bac Ninh Plant, invested by Quang Ngai Sugar Joint Stock Company, is expected to become one of the world’s five largest soy milk factories. Covering an area of 60,000sq m, the plant is equipped with synchronous and automatic equipment from Sweden’s Tetra Pak group. It will employ 200 workers and help local soybean growers secure a stable source of income.
Hoang Anh Gia Lai Group (HOSE: HAG) has delisted US$90 million in its international bonds from the Singapore Exchange (Stock Trading) to reduce costs. HAG was the first company in Vietnam to have its bonds listed on an overseas exchange, and the withdrawal may give a negative impression to international investors. According to a recent announcement by HAG, the delisting would help save the listing maintenance fee. The number of the bond-holders was small as well as the number of bond-trading deals. The five-year bonds were issued on May 20 last year and listed on SGX-ST on May 23, with an annual interest rate of 9.875 per cent.
