Business in brief in 3 May
Vietnam consumer price index (CPI) in May is foreseen to rise in higher level compared with that of April, the local news provider Gafin.vn reported, citing the domestic market regulator’s forecast. The higher increase is due to influences of petroleum price hike, salary increase (from May 1st) and long holiday that will boost travel activities and consumption. Besides, increase in prices of construction steel, fertilizers, sugar will increase CPI, the experts at the domestic market regulation said. Of note, food prices are in uptrend and the people have used pork meet back will increase the prices of the main commodity groups that contribute large percentage points in the CPI’s calculation in May. However, May’s CPI rise is forecast to be only slight higher compared with April’s level as abundant supplies and low demand.
The General Statistics Office showed that in Jan-April period, Vietnam has about 3.5 million new telephone subscribers, increasing by 20% against the same period last year. Of which, there were 102,000 fixed telephone subscribers, equivalent to 38.1% and 3.5 million mobile subscribers, up 20.8% year-on-year. Up to the end of April, the number of telephone subscribers nationwide was estimated at 134.4 million, a year-on-year increase of 2.5%. Meanwhile, there are 4.4 million internet subscribers, up 20.4% against the same period last year. Vietnam has about 32.2 million Internet users by late April, increasing by 13.9% year-on-year. The country’s accumulative net revenue in post and telecommunication sector in the first four months of 2012 was estimated at 45.8 trillion dong, up 13.7% year-on-year.
Budget carrier VietJetAir launched its second route last Friday, linking HCM City and Da Nang, with two daily flights. On the same day it increased the frequency of its HCM City – Ha Noi flights to eight per day and also opened a sales office in Da Nang. It unveiled a "Fly 3 Get 1 Free" promotion on the Ha Noi sector, offering one free ticket to anyone buying three Eco – or Flexi-fare tickets before May 31. Southern Dong Nai Province’s industrial zone management board has asked authorities to revoke the investment certificates of four companies: TNV, Union Turbine, Halla Vina Industrial and Hy Vina. TNV received its certificate more than a year ago, and the others received theirs in 2007, but none of them has implemented a project yet, the board said.
Import duties on several types of automobile will increase starting next Monday, in accordance with regional trade and economic co-operation frameworks, said the Ministry of Finance. Tax rates will be raised by 4-5 per cent up to 78 per cent for ambulances and four-wheel-drive vehicles, and by 5 per cent up to 70 per cent for buses and coaches weighing 6-18 tons.
Garment and textile exports in April reached US$1.1 billion, down 7.25 percent from last month, bringing the country’s first four-month export turnover to roughly US$4.5 billion, the Vietnam Textile and Apparel Association (Vitas) said. In addition, Vietnam earned US$565 million from exporting fabric products, down 10.3 percent against the same period last year. According to Vitas, the decrease in exports is attributable to a reduction in consumption demand from major markets such as the US, EU and Japan. Many local businesses still find it difficult to sign export contracts.
Two-way trade turnover between Vietnam and Norway reached US$128.5 million in the first three months of the year, up 17.6% against the same period last year, according to the Statistics Norway. Bilateral trade surplus rose 17.6% to US$35.2 million from a year earlier. In the first three months of the year, Vietnam’s exports to Norway reached US$81.9 million, up 26.3%. Footwear topped the list with US$23.6 million (up 0.1%), followed by garment and textiles US$12.3 million (up 12.8%), interior decoration US$7.6 million (6.2%), seafood US$4.2 million (up 15.5%), handicraft US$1.6 million (down 1%) and cashew nuts US$1.9 million (down 69%). In the reviewed period, Vietnam’s imports from Norway increased by 33.7% to US$46.7 million compared to last year’s level.
Vietnamese handicraft, silk products and brocade have attracted French interest at Paris Spring Fair 2012 which is being held from April 28 to May 8. The event aims to introduce and promote Vietnam to French and international friends. Apart from handicraft and silk products, French visitors are all enchanted by Vietnam’s unique lacquer ware, tortoise-shell jewelries, souvenirs and postcards which are being displayed across ten stalls. Paris Spring Fair 2012 is one of the largest fairs in France with the participation of 3,400 stalls displaying unique products from many nations across Asia, Africa and America.
The High-Quality Vietnamese Products Business Association has arranged for 23 Vietnamese businesses to conduct a fact-finding tour of China. A representative from the association said that the tour aims to find ways of bringing Vietnamese products to the Chinese market. The businesses are scheduled to meet some Chinese distributors and import-export companies and visit supermarkets and commercial centers in Shenzhen and Guangzhou provinces. This is part of an advertising and marketing project by the Center of Business Studies and Assistance.
The Philippines will in the next three weeks choose Cambodia, Thailand or Vietnam to supply up to 120,000 tons of rice it needs to boost its buffer stocks, a senior government official said on Wednesday. The country’s state grains procurement agency said last month it would import the rice to deepen its reserves before the lean harvest season begins in July, with rice producers in its Southeast Asian neighbors eagerly awaiting a decision. The Philippines usually buys about three-quarters of its annual rice imports from the world’s No. 2 exporter, Vietnam, and small volumes from the biggest seller, Thailand. But Agriculture Secretary Proceso J. Alcala said a general agreement for Cambodia to supply rice to the Philippines could be finalized by next week, meaning that the country would be in the running for the latest contract.
The State Bank of Vietnam issued Decision No. 857/QD-NHNN, tightening lending to customers being residents by credit institutions and branches of foreign banks. Accordingly, credit institutions and branches of foreign banks licensed to operate in foreign exchange shall consider providing short-term loans in foreign currency to customers to make payment for imported goods and accessories used for production of export products. However, borrowers must demonstrate they will have sufficient foreign currency to repay loans. Borrowers are then required to sell foreign currency back to lending credit institutions via spot foreign exchange transactions, except for cases in which borrowers acquire bank loans to execute transactions that require settlement in foreign currency as prescribed by laws. The Decision will be effective from May 2 to December 31, 2012.
The southern province of Bac Lieu is calling for investment in residential and new urban areas, culture, tourism, infrastructure, healthcare and agriculture this year. Key projects include a VND600 billion (US$28.8 million) port, a VND1.36 trillion ($65.4 million) hi-tech agricultural production zone and a VND100 billion ($4.8 million) marine tourism complex. The local trade promotion center said it expected the province to lure four foreign direct investment projects involving hi-tech agriculture, aquatic products and cardiovascular hospital in 2012.
Nha Trang Textile and Garment (Nhatexco), a subsidy of Vietnam’s leading textile manufacturer Phong Phu Corp, has opened a new VND328bn ($15.7m) spinning plant in Khanh Hoa province. The facility has 40,000 spindles and will produce 4,200 tons of fibre and yarn per year. Products include polyester yarn and thread for both export and local markets as well as Nhatexco’s own textile plants. Using modern production lines imported from Japan, Germany, Switzerland and China, the plant will employ more than 300 local workers. The new facility means that Nhatexco now has three spinning plants with a total installed capacity of 166,000 spindles.
With help of the Vietnam Environment JSC, the very first batch of oil was produced at an all-new recycling facility built at major port city Da Nang. This marks the country’s first chapter in solid waste to fuel recycling. Investing roughly US$ 25 million in the cutting-edge plant, the Vietnam Environment JSC has ensured a productivity equaling nine tons of oil every day. According to the company’s Director, Nguyen Van Tuan, approximately three tons of plastic bags can be recycled into one ton of oil. All materials, predominantly discarded plastics, are obtained from the garbage site, which is ideally located next door. Moreover, by opting to process this material, the plant is prospected to recycle 90%, leaving only 10% to be buried – where in the past all of it was simply landfilled.
