Business in brief in 19 September 2012
The showroom, organized by the Investment and Trade Promotion Center (ITPC), opened at 51 Dinh Tien Hoang, District 1, in Ho Chi Minh City on September 18. The showroom displays various kinds of export products such as textile and garment, food, handicraft and gifts items, and support industry. The second showroom is expected to open in late September at 92-96 Nguyen Hue Street, also in District 1.
The global economic recession has reduced the global consumer demand, but may open up an opportunity for Vietnam’s wood processing industry to develop. The remarks were made by Nguyen Chien Thang, chairman of the HCM City Handicraft and Wood Industry Association (HAWA) at a seminar in the city on September 18. Thang said that Vietnam ranks among the top ten wood producers and exporters in the world and its wood export turnover is likely to rise to US$15-20 billion in the next ten years. According to the HAWA president, foreign businesses are shifting their production base to Vietnam thanks to the country’s cheap labor cost, which is currently standing at US$ 6 per person per day compared to US$10 in China and US$13 in Malaysia.
Vietnam is a promising market for Thai enterprises, thanks to its stability and favorable investment environment. Vice Secretary General of the Thai Board of Investment ( BOI) Vasana Mututanont said this at a seminar on opportunities to strengthen trade and investment in Vietnam, which was held in Bangkok by the Thai Ministry of Foreign Affairs (MFA) and the BOI on September 18. Head of the MFA Department for East Asia, Paskorn Siriyaphan, said Vietnam is an important market for Thai enterprises and said he hopes to boost more trade and investment in the country. Trade between the two countries has developed significantly with two-way turnover reaching US$9.5 billion last year compared to just US$3.6 billion recorded in 2006. Thailand ranks third among the ASEAN countries investing in Vietnam, with US$6.7 billion in registered capital and creating jobs for over 12,000 local people.
Hanoi’s consumer price index (CPI) rose 2.47 percent in September compared to the previous month, according to the municipal Department of Planning and Investment. The city’s average GDP increased by 7.9 percent in the past three quarters of this year, with services rising 8.9 percent, and industry and construction up 8 percent. Total state budget revenue is estimated at VND92,275 billion, meeting 63.1 percent of Hanoi’s set target. However, the industrial and construction sectors are facing numerous difficulties, as shown by the 45 percent drop in key products. Export turnover is estimated to have increased by 0.4 percent in the third quarter of this year, bringing the nine-month value to US$7.53 billion.
Vietnam and Italy have agreed to promote bilateral co-operation in industrial production and increase their products’ competitiveness, said a Vietnam News Agency correspondent in Italy. The agreement was signed in Rome yesterday between Vietnam Ministry of Industry and Trade and Italian Investment and Technology Promotion Office, under the United Nations Industrial Development Organization (UNIDO ITPO). The two sides committed to organize workshops to teach Italian and Vietnamese people about the two countries and exchange information on projects that can help improve the relationship between Italian and Vietnamese enterprises. They also consented to promote sustainable development and green industry.
Upgrading the country’s irrigation system to improve its efficiency to 80 per cent will require around VND20 trillion (nearly US$1 billion) under a plan drawn up by the Ministry of Agriculture and Rural Development. The plan seeks to utilize irrigation works nation-wide to increase, by 2020, the total irrigated areas by 5 per cent and reduce electricity and water use per hectare by 10 per cent. Deputy Minister of Agriculture Hoang Van Thang told a recent meeting that though the country got a lot of rainfall, irrigation was widespread because of the uneven distribution of rainwater in terms of location and time. The country has 904 large to medium- sized irrigation works that can provide water for 200 hectares of fields or more. Of them 11 irrigate over 100,000ha, while more than 100 others are capable of irrigating 2,000ha or more.
The Prime Minister hopes to light up Vietnam’s anti-smuggling budget with a pioneering scheme to re-export seized tobacco. Under the PM approved Decision No. 1112, good quality tobacco seized from smugglers will be re-exported as part of an experiment running from now until the end of 2013. Money earned from the pilot scheme will be used for future anti-smuggling work, but there are strict conditions on the selling terms. The re-export must be carried out at international border gates and is not permitted to be done in land or to countries bordering Vietnam. The Ministry of Industry and Trade will be responsible for appointing suitable enterprises to perform the task, as well as regulating them.
Siemens Vietnam and Vietnam Motors Industry Corporation (Vinamotor) yesterday signed an agreement to manufacture an ELFA hybrid bus prototype. Siemens will supply all necessary ELFA components and provide technical support while Vinamotor will prepare the platform and manufacture the remaining parts of the bus for operational readiness. This kind of city bus can reduce fuel consumption by up to 50 per cent compared with standard models, and also mitigate its impact on the environment through lower exhaust emissions while providing maximum passenger comfort. According to President and CEO of Siemens Pham Thai Lai, the prototype is expected to be ready for initial demonstration by July next year. Upon successful production and testing, the prototype will be put into experimental operation with passengers on public roads for three months before a final performance evaluation. Serial production is expected to be carried out immediately after the evaluation stage.
In Vietnam, digital information makes up 45 per cent of an enterprise’s total value, according to the Symantec Corp’s first ever 2012 State of Information Survey. "In Vietnam, the rapid growth of digital information is inevitable with the increasing usage of technology among enterprises," said Alex Ong, Symantec’s country director for Vietnam. "While organizations in the digital economy can use the information they generate every day to better serve customers and increase productivity, the same information can be a major liability if not properly protected and managed."
Techcombank officially opened its new headquarters, named Techcombank Tower, in Ha Noi on Monday. This is a remarkable event marking the continuous development of Techcombank in its 19 years of history, throughout which the core value of putting the "customer first" has always been embraced. Techcombank has become one of the leading commercial joint stock banks in the market with a nation-wide network of 314 branches/TSO’s, 1,250 ATMs, and nearly 7,300 strong staff. Currently, the Bank serves 2.6 million customers and around 72,000 business clients.
