Business in brief 8 Nov 2012
The National Assembly has approved the Resolution on 2013 the plan for socio-economic development. On November 8, more than 90% of NA deputies voted for the Resolution aimed at stabilizing macro-economy, achieving higher economic growth and controlling inflation. They agreed that the main focus will be on removing obstacles to businesses, promoting exports, renovating education, and increasing the quality of human resources. They stressed the need to boost the economic restructuring process, shift growth models, ensure social welfare, increase national defense and expand external relations, and thus creating a firm foundation for future development. The deputies overwhelmingly approved the goals of achieving 5.5% GDP growth, 10% export growth, 8% import surplus, and 8% CPI growth, while keeping the overspending rate under 4.8% of GDP.
Visiting Uruguayan Vice President Danilo Astori has expressed his wish for Vietnam to choose Uruguay as a gateway to export goods to the Common Market of South America (Mecosur). Astori co-chaired a seminar on Vietnam-Uruguay business opportunities in HCM City, with the participation of a large number of companies from both countries. He provided information on Uruguay’s strengths as well as incentives the country grants to those who invest and do business there. Chairman of the municipal People’s Committee Le Hoang Quan said that Uruguay and HCM City have great potential for investment cooperation. He affirmed that the city will do its utmost to foster all-around ties between the two countries. The same day, Vietnam and Uruguay issued a joint press announcement on Uruguayan Vice President Danilo Astori’s visit to Vietnam.
Deputy Prime Minister Hoang Trung Hai and his Russian counterpart Arkadij Dvorkovic have agreed to double the current two-way trade turnover of over US$3 billion within three years. While co-chairing a roundtable discussion between Vietnamese and Russian businesses in Hanoi on November 7, the two Deputy PMs highlighted both countries’ huge potential and opportunities for cooperation. They discussed important issues including boosting economic development and building a collaborative investment environment in Vietnam and Russia. Representatives of major Vietnamese and Russian enterprises proposed the two governments improve conditions by simplifying investment procedures and reforming mechanisms and policies related to taxation, labor, finance, and banking.
Vietnam has signed another contract to sell 300,000 tons or 15 percent broken rice to Indonesia, doubling the government deals signed in 2012 and which could put Vietnam on track to beat last year’s record shipments, traders said on Wednesday. Loading of the new shipment will begin later this month for completion by the year end, but domestic prices may not change much because of the deal due to available stocks, traders in Ho Chi Minh City familiar with the contract said. Last month, Vietnam sold 300,000 tons of 15-percent broken rice to Indonesia for shipment this year.
The domestic gold price exceeded VND47 million/tael on November 7, following a general rising trend on the global market. At 15:00, SJC gold was traded in Ho Chi Minh City at VND46.9 million per tael for buying and VND47.1 million per tael for selling, up VND550,000 per tael from previous recent transactions. Meanwhile, the price of SJC gold set by Phu Quy Jewelry Company hovered around VND47-47.13 million per tael. On the New York market, the gold price saw an increase of 1.9 percent, reaching US$1,618 per ounce-the highest level in nearly two months. Experts from ANZ Bank predict the gold price will reach US$1,890 per ounce in 2013.
The UK-Vietnam Joint Economic and Trade Committee (JETCO) will meet in London on November 8 to discuss ways to promote trade and investment cooperation between the two countries. The meeting will also address other issues including intellectual property rights, trade dispute resolution and those of importance to bilateral trade and investment ties. The talks will be co-chaired by Hugo Swire, Minister of State for Foreign and Commonwealth Affairs, and Ho Thi Kim Thoa, Deputy Minister of the Vietnamese Ministry of Industry and Trade. This is the sixth meeting of JETCO, which was established in 2007 as a mechanism to discuss and tackle bilateral trade issues. The meeting is convened annually, alternating between London and Hanoi. Trade and investment forms the core of the UK-Vietnam Strategic Partnership Agreement, aiming to raise two-way trade to US$4 billion and UK foreign direct investment to US$3 billion by 2013.
Deputy Minister of Industry and Trade Le Duong Quang has highlighted the Belarusian government’s constant support for Vietnam’s efforts to develop its national economy. At the ninth session of the Vietnam-Belarus Inter-governmental Committee held in Hanoi on November 6, Quang said despite the impact of global economic downturn, two-way trade turnover between the two countries reached US$95.6 million by the end of June 2012. This was thanks to the implementation of the resolutions of the eighth session of the committee, provisions under the economic cooperative program in the 2011-2012 period, and agreements reached during Belarusian Prime Minister’s visit to Vietnam. On this occasion, the Vietnam-Belarus trade Centre has made its debut to help businesses of both countries further tighten trade ties.
Vietnamese and Russian enterprises have been urged to accelerate co-operation in promising sectors such as oil and gas, nuclear, light industries, machinery engineering and agriculture. Russian Deputy Prime Minister Arkady Dvorkovich delivered the message yesterday during a roundtable discussion between businesses from the two countries in Ha Noi. The bilateral trade and investment relations between the two countries still lagged behind potential, with two-way trade reaching an estimated US$3 billion this year, said Vietnamese Deputy PM Hoang Trung Hai. The two governments had set a target of raising bilateral trade to $7 billion in 2015, with a focus on promoting the export of Vietnamese goods to Russia, Hai said.
New subscribers to prepaid mobile services will be charged VND 25,000 from January 1, 2013, excluding the cost of a SIM Card. The move aims to curb the increasing number of virtual subscriptions to prepaid services, where users only use the numbers they subscribe temporarily. The subscription for post-paid mobile services will remain VND30,000, the Ministry of Information and Communications said. Meanwhile, the ministry will require mobile network providers to obtain permission from the ministry to change the subscription rate and offer promotions. Mobile network providers will also be required to post a list of subscription fees and SIM prices in their sale outlets at the rates set by the ministry. Vietnam currently has six mobile network operators: Viettel, Vinaphone, MobiFone, Vietnamobile, Gtel and Sfone. New mobile subscriptions in Vietnam have skyrocketed in recent years, reaching 19 million in 2006, 98 million in 2009 and more than 123 million by the end of September 2012.
The managing director of Air Mekong, Luong Hoai Nam, stepped down from his position last Thursday, just five months into his tenure. A representative of the Air Mekong said Nam, who began working for Air Mekong in July, quit his job due to personal reasons. Before working for Air Mekong, Nam spent 11 years at national carrier Vietnam Airlines, before becoming general director of Jestar Pacific in 2004.
A joint venture agreement signing ceremony to establish Thien Nam Sunrise Textiles JSC was inked on Monday by Chinese Sunrise Shengzhou Textile Company and Vietnamese Thien Nam Investment and Development JSC in HCM City. The project will cost a total of US$24 million to build a factory in Bao Minh Industrial Park in northern Nam Dinh Province with a production capacity of 1 million meters of woven fabrics and 300 tons of knitting fabrics a month. Thien Nam is a leading spinning enterprise in Vietnam, owning four spinning factories with a total of nearly 150,000 spindles and yarn production capacity of 25,000 tons per year. Over 70 per cent of products are exported to overseas markets such as Turkey, Brazil, Indonesia, South Korea, and China.
The government has shone the green light on a US$300 million solar panel manufacturing plant in the central province of Thua Thien-Hue after granting a license on Monday. The plant is backed by Vietnam’s WorldTech Transfer Investment in co-ordination with the United Arab Emirates’ Global Sphere. Phase one of the project, located in the province’s Phong Dien Industrial Park covers an area of 15ha with a total investment worth $300 million. It is slated to be built late next month and completed in May 2015.
Smartlink Card Joint Stock Co will soon merge into the Vietnam National Financial Switching Joint Stock Co (Banknetvn) in this year in what will be a major step towards the unification of the country’s financial networking alliances, it has been reported. Several online newspapers said that a memorandum of understanding for the merger was to be signed yesterday, but a Banknetvn’s switchboard clerk confirmed with the Vietnam News that no such event took place. A source from the State Bank of Vietnam said that auditing and valuation procedures for the merger between two largest transaction processing systems were currently being carried out, adding that the move would fully conform with the Enterprise Law. Reports claim one other system, VNBC, will also merge into Banknetvn within the first half of next year.
