HCM City Securities Co targets 30% rise in profits

The HCM City Securities Company (HSC) targets a turnover of more than VND436 billion (US$20.8 million) this year, 20 per cent higher than 2010.

The company expects the turnover will yield a net profit of VND237 billion, up 30 per cent over last year. It believes the market has hit its bottom and is likely to bounce back.

In the first quarter, according to the company's CEO Johan Nyvene, HSC earned net profits of VND41 billion ($2 million). While transaction turnover in the securities market decreased by up to 50 per cent, that of the company fell just 10 per cent, he said.

The company ranked third among leading securities companies in the first quarter in terms of brokerage transactions.

PetroVietnam Insurance to buy back shares

PetroVietnam Insurance (HNX:PVI) plans to buy back nearly 4 million shares between now and September 6. The repurchase will increase the company's treasury stocks to 5 million.

The buyback will be implemented through order matching and negotiation based on market prices and the maximum book value. PetroVietnam Securities Inc will purchase the shares.

The insurer has set itself an earnings target of VND4.9 trillion (US$233.3 million) this year, up 7.8 per cent from 2010, and a pre-tax profit of VND420.5 billion ($20 million), a year-on-year rise of 25.14 per cent.

Song Da affiliate posts first-quarter earnings

Ha Noi-listed Song Da 12 Co (S12) has estimated its first-quarter earnings to be VND29.7 billion (US$1.4 million) – 9 per cent of this year's plan.

The company earned a pretax profit of nearly VND2 billion ($95,238) in the first quarter – 17 per cent of its target for the year.

Song Da 12 Co is currently holding its annual shareholders meeting. It plans to announce its business targets for the year, which include a total turnover of VND335.6 billion ($16 million), a pre-tax profit of VND11.6 billion (over $765,000) and a dividend payment at 12 per cent._

Wood export deals pass 2010 mark

Vietnamese wooden products exporters have already signed contracts worth US$3.4 billion this year, or equivalent to the exports during the whole of last year, according to the Vietnam Timber and Forest Product Association.

Most of the deals are for shipments in the second and third quarters, with more orders expected to be received, it said.

But the industry is struggling with higher costs of rubber wood, packaging, and labor.

At the end of last year the price of rubber wood, the main raw material, rose sharply due to a nearly 50 percent rise in latex prices.

Farms that had been planning to cut down rubber trees for wood decided against it as the latex prices soared, leading to a shortage of wood.

In January the Association forecast the year’s exports to top $4 billion, a 17 percent rise over 2010.

Ho Chi Minh City ports hike rates

Several ports in Ho Chi Minh City have increased tariffs by 10 to 15 percent.

The new rate for container transport is US$9-10 per ton while warehouse rent costs VND3000 per ton for the first 16 days and VND12000 after that.

The cost of loading frozen seafood into a 20-feet container for export has risen to $34 and to $48 for a 40-feet container.

The two biggest ports in the City, Cat Lai in District 2 and Tan Cang in Binh Thanh District, said they will switch to the new tariffs Friday while other ports are expected to follow later this month.

The ports blamed the price hikes on higher costs due to inflation and the rising global fuel prices.

Ho Chi Minh City has a total of seven ports, the others being Hiep Phuoc, Nha Rong, Tan Thuan, Ben Nghe, and Khanh Hoi in District 1, 2, 4, and Binh Thanh.

EVN asked to supply steady power through April 

The Ministry of Industry and Trade has asked the Vietnam Electricity (EVN), to provide a steady supply of power during the month of April. 

In a document sent to EVN, Vietnam’s largest power company, the ministry asked the company to ensure a steady supply of electricity and prevent power outage.

Power blackouts will only be permitted during repair and maintenance work. EVN will hence mobilize all power resources to meet the consumption demand.

Meanwhile, electricity companies will have to monitor thermalpower engine units for scheduling maintenance and repair jobs. Faults in the engine units must be repaired as quickly as possible.

Electricity projects, including the second engine unit of the Son La Hydropower Plant, the first engine unit of the An Khe-Ka Nac Hydropower Plant and the second phase of the Uong Bi Thermalpower Plant, must step up in order to provide power in April, May and June.

EVN will also update electricity source, demand and hydrographic conditions to adjust the power-supply during the dry season.

According to EVN, the power output for consumers in the next few months will increase by 20 percent compared to the first months of the year.

Six new projects in Nhon Hoi Economic Zone 

The Nhon Hoi Economic Zone management board has granted license to six projects, worth around VND10.835trillion (US$542 million) in the Nhon Hoi EZ in Binh Dinh Province. 

Some of these projects are large-scale ones. The Vinh Hoi resort project for example, will cover an area of 300 hectares with a total capital of $250 million. The Hai Giang tourist project will have US$150 million investment by Hai Giang JSC and the Nhon Ly- Cat Tien Beach Resort project is worth a total US$90 million.

Another project at the Linh Phong pagoda will cover an area of 56.6 hectares with a capital investment of $25 billion. Also coming up are the Trung Luong project by the My Tai Co. Ltd and another tourist project by the Quoc Thang Co. Ltd.

All the tourist projects will meet with international standards.

Vietnam Airlines to revive Danang-Hai Phong service

Vietnam Airlines is set to revive flights between Da Nang and Hai Phong on April 28 after a 10-year hiatus.

It will use ATR72 aircraft and fly five times a week.

It will be the carrier’s second service to Hai Phong, the other being from Ho Chi Minh City.

Vietnam Airlines also plans to launch a weekly flight from Danang to Taiwan next month using a 180-seat A312 Airbus aircraft.

Ho Chi Minh City to boost investment in Laos

Ho Chi Minh City will increase its investment in Laos and contribute to strengthening traditional ties of friendship and solidarity between Vietnam and Laos, said Le Thanh Hai, Secretary of the city’s Party committee on April 11.

Hai made the statement during his meeting with Lao Prime Minister Thongsing Thammavong in Vientiane.

He said the cooperative relations between HCM City and Vientiane and other Lao localities have been developing continuously and they have created a firm foundation for bilateral ties between the two countries.

The Lao PM said he welcomed the visit by the delegation from HCM City and highly appreciated the city’s effective investment in Laos. He expressed his hope that HCM City will accelerate investment in such fields as education, training, agriculture, health care, industry and culture in the near future.

The same day, the delegation headed by Hai met with its counterpart in Vientiane and discussed ways to strengthen bonds in various areas.

On the evening of April 11, Hai was received by Lao President Choummaly Sayasone.

Vietnam’s jeans exports rise sharply

Vietnam’s exports of jean trousers in the first quarter of this year increased by 31.5 per cent in volume to 1.3 million pairs and 25.5 per cent in value to $7.92 million compared with the same period last year.

The US market accounted for the major part of Vietnam’s jeans exports, buying 939,800 pairs, up 125.2 per cent, at a value of $5.42 million, up 127.3 per cent.

Apart from the US , jeans exports to several markets such as the Republic of Korea, Australia and the UK also raised remarkably. However, the sector’s exports to traditional markets like Japan and Taiwan ( China ) saw a decrease.

Honda Vietnam to increase production in July

Honda Vietnam Co. (HVN), the largest motorcycle maker in Vietnam, has announced it will turn out 10,000 more Air Blade scooters in July, buoyed by increasingly strong local demand.

Koji Onishi, general director of the company, said at the launch of a new Air Blade FI model at the Bitexco Financial Tower in HCMC last week that it would increase its Air Blade production capacity to 40,000 units per month from the current 30,000.

The increase will help to meet the local demand which has been running high since the Air Blade’s debut in 2007. The scooter prompted an instant buying spree after it was put on the market.

Despite the strong demand, the company has been unable to scale up production as its factory in the northern province of Vinh Phuc is running at full capacity.

Honda Vietnam has been increasing the capacity of its second factory that mainly produces scooters including Air Blade, SH, Click, and Lead. The cost of the expansion plan is US$70 million and when in place, the facility will be able to churn out 500,000 units per year.

With this new expansion, HVN’s total motorcycle and scooter production capacity will reach two million units a year, which is also the 2011 sales target. HVN’s market share reached 64% in 2010.

Sales of automatic transmission (AT) scooters are selling well in Vietnam. Since the introduction of Air Blade, Honda Vietnam has sold 950,000 units.

The new Air Blade FI is equipped with more conveniences such as a remote response key system, a center console and a larger U-box.

The new scooter is officially available on April 12 at Honda Exclusively Authorized Dealers (HEAD) nationwide with a suggested retail price of nearly VND36 million for the red, black and white types, and nearly VND37 million for the sporty colors: black red, and white red (VAT included).

Delta governments cut spending to tame inflation

Cities and provinces in the Cuu Long (Mekong) Delta are scrapping or deferring many public projects as they fall in line with the Government's stated aim of curbing inflation and stabilising the economy as spelled out in Resolution No11 it issued in February.

Can Tho City has scrapped 69 projects that would have entailed spending of more than VND117 billion (US$5.59 million).

Hau Giang Province is reducing spending by VND43.5 billion by culling 38 projects.

Tra Vinh Province has decided to put off 15 projects that would have cost VND52.4 billion, while in Ca Mau Province the numbers are VND31 billion and 13 projects.

An Giang calls for investment

The Cuu Long (Mekong) Delta province of An Giang is calling for investment in 100 projects worth a total of VND60 trillion (US$2.87 billion) from now to 2015.

The largest project was the Can Tho-An Giang-Phnom Penh highway, expected to cost $1.8 billion, the provincial people's committee said on its website.

"The province is looking to all sources for investment, especially foreign, to further develop our infrastructure facilities," said Pham Thanh Thai, director of the provincial Department of Planning and Investment.

The department stated in a recent report that this year the province had granted licences to 19 new projects, worth a combined VND1.27 trillion ($61 million).

This represents a year-on-year increase of 29 per cent in terms of investment and 35 per cent in terms of the number of projects.

During the same period, the province also permitted 12 existing projects to raise their investment by VND212 billion ($10 million).

There are currently 382 licensed projects in the province, worth VND23 trillion ($1.1 billion). Of those, 10, worth $80.7 million, are foreign-invested.

"We will continue to apply our one-door-shop policy to create the most favourable conditions for domestic and foreign investors," Thai said.

In addition to perfecting infrastructure facilities in industrial zones, the province would continue to improve personnel training, organise meetings with investors and step up promotional activities, he added.

The province this year plans to attract seven new foreign-invested projects worth $120 million.

India spices up links with Vietnam

Indian companies are checking out Vietnam to identify investment opportunities and boost a bilateral trade relationship worth $2.75 billion last year.

India’s ambassador to Vietnam Ranjit Rae delivered this message during the visit of a delegation of 62 Indian enterprises to Vietnam last week.

Led by the Associated Chambers of Commerce and Industry of India and the Federation of Indian Export Organisations, the delegation represented a broad range of sectors including agriculture and food processing, chemicals, construction materials and machinery, handicrafts, electrical equipment, gems and jewellery, lubricant grease and oil, leather, garments and textiles and scientific equipment.

“There is huge potential in Vietnam and Indian companies are looking to identify opportunities,” Rae said.

Indian investment in Vietnam to date stays at a relatively low level. There have been some 51 projects worth some $213 million registered by Indian firms in Vietnam so far.

Last week’s visit by 62 Indian firms was not the only recent sign of Indian interest in Vietnam, other business groups have come to the ASEAN country this year to sniff out business opportunities.

A 40-member delegation from Indian Speciality Chemical Manufacturers Association visited Ho Chi Minh City in mid-March.

The companies involved make organic and industrial chemicals and food additives used in the printing, dyeing, construction, rubber, and food industries. During the visit, over half the Indian chemical manufacturers sought out Vietnamese partners to set up joint ventures in Vietnam.

In the first quarter of this year, Indian Marico acquired an 85 per cent stake in International Consumer Products (ICP), one of the most successful Vietnamese producers of fast moving consumer goods.

In a similar development, India’s Bafna Enterprises kicked off its spice processing company in Vietnam in February. Bafna Enterprises holds a 75 per cent stake in the $5 million joint venture named Unispice. The other stakeholder is a Vietnamese firm.

Unispice will focus on value-added pepper products. Initially, the company will have the capacity to process 500 tonnes of pepper a month. This processing plant is part of Bafna Enterprises’ strategic plan to be in close proximity to raw material supply.

The poor supply of black pepper in India prompted the Indian firm to look for other sources.

Vietnam replaced India as the world’s largest producer and exporter of black pepper in 2000 and produces around 100,000-130,000 tonnes of the spice per year.

Bafna Enterprises is the third major spice exporter from the subcontinent to set up a processing facility in Vietnam in recent times. Vallabhdas Kanji Ltd and Madhu Jayanti International Limited set up processing facilities in Vietnam a few years ago.

Also last week, Indian Exim Bank launched a new scheme offering credit to foreign governments and government-owned entities for executing projects run by Indian companies. The credit will be offered in sectors such as road, housing, building, gas and oil pipelines, power, renewable energy, airports, ports and other infrastructure projects.

“With the new scheme, and with the India-ASEAN Free Trade Agreement, you will see a significant increase in bilateral trade and investment between the two countries in future,” Rae said.

In the first two months of 2011, bilateral trade value between the two countries stood at $643 million, up 59 per cent year-on-year with Vietnam shipping some $175 worth of goods to India.