Business in brief 17th June 2011
Ho Chi Minh City attracted more than 1.65 million international visitors in the first six months of this year, up 10 percent against the same period last year. The largest numbers of foreign visitors were from the US, Japan, Taiwan, the Republic of Korea, Singapore, France, and Russia, bringing in VND23 trillion for the tourism sector, 24 percent higher than last year’s figure. HCM City is now preparing for its seventh International Tourism Fair, which will be held from September 14-17 under the theme “Four nations- one destination”. The focus will be on promoting the domestic market and international cooperation in building a safe, friendly, and civilized tourism environment, said La Quoc Khanh, Deputy Director of the municipal Department of Culture, Sports and Tourism.
Vietnamese businesses are showcasing their products at the International Gifts, Premium and Stationery Exhibition which opened in Kuala Lumpur from June 15-17. Vietnam’s pavilions for skillful and diversified products, especially those made from natural materials, attracted a large number of visitors. Addressing the opening ceremony, Malaysian Minister of Industry and Trade Mustapa Mohamad underlined the need for businesses to diversify both designs and quality of their products to meet the increasing demand for gifts, premium and stationery. The sector has greatly contributed to the national economy, he said, adding that in 2010, Malaysia earned (US$1.43 billion) from exporting these products. The event attracted the participation of hundreds of businesses from Malaysia, regional and international countries.
The Da Nang People’s Committee had granted licenses to three new foreign direct investment projects with a total registered capital of VND8.518 billion by mid-June. Of the total, a license was granted to UCSI Ventures Vietnam Limited Co which will set up a training center of professional skills and foreign languages worth VND6 billion. The city also issued a license for the US-invested Golf Management, L.L.C Limited Co to establish a golf course management limited company. The VND618 million business is expected to be put into operation in July, 2011. Another license was handed over to a VND1.9 billion project on software production invested by Chassaing Kieu Tien Le, a US national. The project is scheduled to be operational in July this year. The central city has, to date, granted licenses to 203 FDI projects with a total investment of US$3.3 billion.
PetroVietnam is selling down its states in real estate and securities units to Korean partners, official said. Korea’s Hanshin group will buy a 10 percent stake in PetroVietnam Construction Joint Stock Corporation (PVX) and Shinhan Investment Group will buy a 15 per cent stake in PetroVietnam Securities Incorporation (PSI) in deals inked at a trade conference in Korea. PetroVietnam Deputy Director General Nguyen Tien Dung said this was part of the group’s plan to focus on core business. In the next five years it will focus on oil exploration and exploitation both at home and abroad, petro-chemistry, thermo-electricity and other clean energies, and technical services in the oil industry. The group would keep its 100 per cent stake in PetroVietnam Exploration Production Corporation.
Trade unions have been set up at more than 600 out of nearly 1,000 businesses in HCM City’s Industrial Parks (IPs) and Export Processing Zones (EPZs) this year, an increase of 20 per cent compared with last year. More than 169,000 workers have become members of trade unions, according to Nguyen Van Khai, president of Trade Unions of HCM City’s IPs and EPZs. Trade unions in co-operation with law advisory offices this year have met with hundreds of workers who sought advice to protect their rights and interests.
PetroVietnam Petrochemical and Textile Joint Stock (PVTex) Company and domestic and foreign partners signed five contracts to provide services to the Dinh Vu Polyester Fiber factory in Hai Phong City. According to General Director of PVTex Vu Dinh Duy, Dinh Vu Polyester Fiber Project is near completion. With a production capacity of 175,000 tons per year, once the plant goes into commercial operation it will meet about 40 per cent of market demand for raw materials used for textiles and other light industries.
PetroVietnam estimates its first half total revenue will reach VND340 trillion (US$16.5 billion), up 45 per cent year-on-year and 68 per cent of the group’s target for the year. Oil sales are projected to earn $5.8 billion, up 34 per cent from the same period in 2010, and equivalent to 69 per cent of its annual goal. In the first half of this year, PetroVietnam disbursed a total investment worth more than VND46 trillion ($2.23 billion), equivalent to 37 per cent of the total it projected for the whole year.
