Business in brief in 5 Nov 2012
Two-way trade turnover between Russia and Vietnam has increased sharply, according to the Russian Ministry of Economic Development. In the first half of this year, trade hit more than US$2.5 billion, a 49.7% rise over the same period last year. Of that figure, Russia exported over US$1 billion, up 63.8%, and imported more than US$1.4 billion, an increase of 40.6%. Russia’s main exports to Vietnam include machinery and equipment (69% of the total export value), metal products (15.4%), chemical products (3.8%), and mineral water (2.4%), while it imports machinery and equipment (58.1%), garments and footwear (20.9%), agricultural products (13.9%) and chemicals (2.6%) from Vietnam. Last year, two-way trade exchange reached US$3.061 billion, a year-on-year increase of 25.2%, with Russia’s exports accounting for US$1.388 billion (up 0.3%) and its imports from Vietnam hitting US$1.722 billion (up 55%).
The national airlines of Kazakhstan, Air Astana, will launch the first route linking Ho Chi Minh City and the biggest Kazak city of Almaty on January 2, 2013. There will be two flights per week on the route, one every Wednesday and Friday. A direct flight will be offered from Ho Chi Minh City to Almaty, while the Almaty to HCM City flight will transit in Bangkok.
Coffee exports of the 2011-2012 crop have reached almost 1.6 million tons worth nearly US$3.4 billion, up 23 percent in volume and 24 percent in value, according to the Vietnam Coffee-Cocoa Association (Vicofa). Vicofa said that the average export price stood at US$2,000 per ton, actually much lower than the 2011’s figure, but only $30-40 per ton lower than the world’s price. The Vietnamese coffee has been exported to 80 countries and territories around the world. Its largest importers include Germany, the US, Italy, Spain, and Japan. Vietnam’s coffee output has amounted to 1.5 million tons in the 2011-2012 crop, surpassing the set target of 1.2 million tons. Vicofa forecasts that the total coffee output for the 2012-2013 crop will fall 15-20 percent to 1.2-1.3 million tons as between 50,000-60,000 hectares of coffee trees of above 25 years old need to be re-greened.
Phase one of the Vientiane-Long Thanh golf course project with 18 holes was inaugurated in Vientiane on November 3. Invested by the Vientiane KN Group, the 36-hole golf course is part of the Vientiane-Long Thanh special economic zone covering an area of 557.74 ha with a total investment of US$1 billion. Besides the golf course, the zone includes a five-star hotel, a school and an international hospital, a luxury resort, a trade center, sports facilities and an urban area with over 2,000 villas. The zone is expected to be completed in 2020, generating over 3,000 jobs for local people. Laos took this opportunity to present Le Van Kiem, chairman of the Board of Directors of the Long Thanh-Vientiane special economic zone, with the Development Order.
Customers of 25 golden places around Hanoi are enjoying 20–50 percent discounts on a variety of products and services including food, beverages, garments, and electronic appliances. The number of customers at supermarkets such as Big C, Fivimart, Hiway, HC, Topcare and Pico is perpetually growing, especially in more recent days. Thanks to thorough preparation, however, eager shoppers have not been forced to jostle each other to buy the products and services on sale. Most of the products are made in Vietnam. The 2012 Sales Promotion Month, which began on October 31, always receives positive response from Hanoians. It demonstrates the City’s efforts in containing inflation and stabilizing market prices.
The Japanese Tiger Vietnam Company put its first manufacturing plant for household electrical appliances, invested at US$12 million, into operation at the Amata Industrial Zone in Dong Nai province on November 2. Established for 90 years, Tiger is a leading Japanese group that sells its products to 60 countries around the world, primarily in Asia and North America. A representative of the group said it considers Vietnam a strategic future market for both production and sales in the region. Japan is one of countries that has invested the most in Dong Nai with 141 projects worth around US$2.8 billion operating in many fields, but mainly in high-tech and environmentally friendly sectors.
World coffee exports have increased by 2.95% to 107.8 million bags in coffee year 2011/12 (October-September) compared to 104.7 million bags in 2010/11, according to International Coffee Organization (ICO). Data from the London-based intergovernmental body of coffee exporting and importing countries indicate that Costa Rica, Cote D’ Ivoire, Ecuador, Guatemala, Indonesia, Mexico, Nicaragua and Vietnam registered an upward trend in exports during the 2011-12 coffee year. On the other hand, Brazil, Columbia, Ethiopia and India witnessed decline in shipments of the brew. As the decline in production in Brazil was compensated by Vietnam, Peru and Honduras, the global coffee production is estimated to be flat at 134.3 million bags in the 2011-12 crop year.
A market of 250 stalls which opened in Ha Noi to promote Vietnamese-made products has failed to meet the expectation of Vietnamese customers. The market being held at the Vietnam Fair and Exhibition Centre was opened last Friday to mark sales promotion month and will close tomorrow. Among the low turnout, some patrons said the presentation of the stalls was poor and the large number of products from China, South Korea and Japan – some of questionable quality – was disappointing. A Market Management Department official said he could not understand how foreign products had come to be in the market, a place to promote Vietnamese products. Many of the products were being sold at prices equal to or even higher than normal retail prices, which was surprising, given the market was advertised as offering cheaper prices.
Saigontourist Travel Service Co. on Saturday hosted a function to welcome the cruise ship SuperStar Aquarius of Star Cruises at Halong Bay, marking the continued cooperation between the local travel firm and the cruise line. This is also the first ship of Star Cruises coming to Vietnam under a new cooperation program lasting from this month until next April between the two sides. Specifically, Saigontourist will cater to 99 journeys to Vietnam of Star Cruises’ luxury cruise ships SuperStar Aquarius and SuperStar Gemini in the six-month period. These luxury ships which will make calls at Danang 11 times, at Halong 57 times and 31 at both Halong and Danang will bring a total of over 110,000 tourists and crew members from China, Hong Kong, Japan and South Korea to Vietnam.
SAP (Systems, Applications and Products in Data Processing), a global leader in enterprise application software, organized its first Technology Summit in HCM City earlier this week to introduce its in-memory appliance (SAP HANA) software solution to cope with big data and real-time data management. The appliance will help customers process large quantities of data in real-time from virtually any source of information, allowing enterprises to make intelligent, data-based decisions, the company said.
The fifth Vietnam Information Safety Day will be held in HCM City from November 15 – 16 and in Ha Noi a week later. This year, the focus will be on "Constructing a safe information infrastructure for national digital sovereignty." State information management officials and experts will exchange experiences, discuss the latest safety solutions for information protection as well as strategic trends in information safety.
Leading Vietnamese information and communications technology companies will participate in the second Vietnam ICT Brand expo held in HCM City from November 15 – 17. Around 70 kiosks will display Vietnamese ICT achievements and products. Four conferences and workshops on various ICT developments will be held during the expo, which aims to promote consumption for made-in-Vietnam products.
METRO Cash&Carry Vietnam has launched an initiative to help professionals improve community health. The 20-month project, "HEALTHY", a Public Private Partnership with the German Investment and Development Agency (DEG), will focus on improving safety and hygiene conditions and promoting the concept of healthy business, healthy life. The project is aimed at hotels, restaurants, the catering industry, and professional traders as well as service companies and offices. It will also benefit suppliers like fruit, vegetable, and fish farmers and potential employees and students.
