Petrol imports forecast to soar

 

Increased domestic demand for gasoline would cause fuel imports to soar during the next few months, according to Petrolimex.

 

The Viet Nam National Petroleum Corporation (Petrolimex) accounts for 52 per cent of the total market share and acts as one of 11 national petrol distributors.

 

The company forecast that, during the next six months, the corporation would purchase a total of 4.32 million tonnes of petrol (including 3.37 million tonnes from abroad and 950,000 tonnes from the domestic Dung Quat Oil Refinery) in order to meet domestic demand.

 

Petrolimex's deputy general director Nguyen Quang Kien said that the rising demand for imports would cause a rise in demand for foreign currencies. He also added the two-month maintenance closure of the Dung Quat Oil Refinery would cause an additional domestic shortage in petrol supply.

 

Kien said that current domestic gasoline (A92) prices were 10 to 40 per cent lower than those of neighbouring countries such as Laos, Cambodia and Thailand.

 

During the first five months of 2011, the global price of crude oil increased by 25 per cent while the price of refined crude oil products increased by 32 to 43 per cent in comparison with the same period last year.

 

Petrolimex has purchased 2.270 million tonnes of petrol, including 780,000 tonnes from Dung Quat Oil Refinery since the start of the year.

 

For those reasons, Petrolimex has requested the Ministry of Industry and Trade and Ministry of Finance to allow petrol prices to be adjusted following Government Decree 84, calling for measures to help domestic fuel distributors, Kien said.

 

Deputy Minister of Industry and Trade Nguyen Thanh Bien said that petrol prices, which affect many other commodity prices, would not be adjusted as the nation was currently trying to curb inflation.

 

He added that fuel prices should remain under State control.

 

Thanks to Government Resolution 11, the Forex market has stabilised, thereby satisfying the demand for foreign currencies as well as distributors' needs.

 

Rice businesses to need qualified certificates for export

 

Rice exporters would need certificates from the Ministry of Industry and Trade (MoIT) in order to be eligible to export the commodity as of October 1 this year, according to the Viet Nam Food Association (Vietfood).

 

Currently, any business can export rice without having to adhere to industry regulations.

 

Vietfood chairman Truong Thanh Phong said the association had asked rice exporters, who met MoIT's storage and husking requirements regulated in Decree ND109/2010/ND-CP issued in November last year, to register early with MoIT to meet the deadline.

 

Under Decree ND109/2010/ND-CP, rice exporters are required to have a storage capacity of at least 5,000 tonnes and husking facilities with an output of at least 10 tonnes per hour.

 

Storage and husking facilities also have to be located in cities and provinces that are home to the country's rice export granaries or have international ports to serve rice exports.

 

According to the Ministry of Agriculture and Rural Development, the country exported 3.5 million tonnes of rice worth US$1.7 billion in the first five months of the year, a decrease of 18.6 per cent and 13.3 per cent in terms of volume and value against the same period last year.

 

Oil, gas project gets investment licence approval

 

The central coastal province of Khanh Hoa has issued an investment licence to Sao Mai-Ben Dinh Oil and Gas Joint-Stock Company allowing the construction of the Van Phong oil and gas service base.

 

The base, worth VND25.7 trillion (US$1.29 billion), will be constructed in the Hon Khoi area of Ninh Hoa town.

 

The base will include a seaport, drilling platform, floating facility and a tank compound for the storage of oil and gas, liquefied petroleum and related petroleum chemicals. The area will additionally include offices and services.

 

Construction, to be divided into three phases, will conclude in 2017. The VND2.8 trillion ($140 million) first phase will kick off later this year and be finished in 2012.

 

Tran Hai Binh, chairman of Sao Mai-Ben Dinh, said that investment is expected to help ease the overloaded operation of logistics services related to southern oil and gas industry.

 

PM praises HCM City's efforts to curb inflation

 

Prime Minister Nguyen Tan Dung has praised HCM City's efforts to control inflation, but said stronger measures are needed to succeed.

 

Speaking at a meeting to review socio-economic development and implementation of the Government's Resolution No 11 to combat inflation in HCM City yesterday, he said the city has stabilised prices, helped reduce the trade deficit, and economised on electricity and water use.

 

These achievements had a great impact on the implementation of the Government's policies on inflation control and economic stabilisation and ensuring social welfare.

 

As the country's economic hub, HCM City had made "creative" efforts to fulfil the development targets set by the Government, especially those mentioned in Resolution No. 11.

 

To go on with this endeavour, the city had to take comprehensive and wide-ranging measures to curb inflation.

 

It had to make greater efforts in price management and crack down on hoarding and unauthorised hikes in the prices of essential goods.

 

Bank lending, liquidity, and bad debts must be controlled while gold and foreign exchange markets must be well managed.

 

The city's socio-economic achievements in the first five months were "encouraging," in some cases being better than the overall national performance.

 

Chairman of the city People's Committee, Le Hoang Quan, said steady growth had been achieved in the first five months.

 

Export growth was 18.4 per cent while retail sales increased by 22.2 per cent year on year.

 

Industrial production grew 12.4 per cent while agriculture, forestry, and fisheries were up 6.1 per cent.

 

The city licensed 123 foreign direct investment projects capitalised at US$1.33 billion. It also received 242,000 foreign visitors in the first five months of 2011.

 

Prices had begun showing a downward trend, falling from 3.16 per cent in April to 2.38 per cent in May.

 

The city had created 104,300 jobs, or 38.6 per cent of the whole year target.

 

The gold and forex markets saw little volatility with the gap in rates between commercial banks and the free market narrowing.

 

The city cut VND200 billion ($9.7 million) or 10 per cent of permanent Government spending while more than VND212 billion ($10.2 million) had been saved by suspending purchase of cars and other assets.

 

More than VND453 billion ($22 million) had been cut from allocation made for 95 public projects that had been delayed.

 

Market management and price stabilisation had improved, yielding positive results.

 

In the second half of the year, the city would focus on business and investment promotion, expansion of export markets, and reorganisation of the domestic market to promote production and consumption.

 

The price stabilisation programme would be expanded and efforts would be focused on creating more jobs.

 

The city would also urge agencies undertaking public works to speed up progress and complete them on schedule.

 

The meeting was also attended by Deputy Prime Minister Hoang Trung Hai and representatives of ministries.

 

Local firms get in on mergers, acquisitions

 

Merger and Acquisitions (M&A) in Viet Nam are no longer "an exclusive game" for foreign businesses and multinational companies but are now drawing the enthusiastic participation of domestic enterprises.

 

Dang Xuan Minh, director of the AVM Viet Nam Company, said many large private groups in Viet Nam, after gathering their financial resources, had sought to purchase or merge with other firms operating in the same field to increase their strength in the market.

 

The number of Vietnamese enterprises buying domestic firms now accounts for 40 per cent of all M&As.

 

A US$30 million deal between Lilama Ha Noi Joint Stock Company and the Viet Nam Steel Corporation (VNSteel) was one of the biggest recent transactions.

 

VNSteel acquired an 85 per cent stake in Lilama Ha Noi's zinc-plating factory at the Ha Noi-based Quang Minh Industrial Zone through the VNSteel Thang Long Corrugated Iron Plated Joint Stock Company.

 

Furthermore, large Vietnamese firms have also targeted M&As in foreign markets. Military-run telecoms group Viettel offered $300 million for a 60 per cent stake in Teletalk Bangladesh Ltd and $59 million for a 70 per cent stake in Haiti's Teleco Company.

 

According to a recent survey by international consultants Grant Thornton, 17 per cent of Vietnamese businesses said they planned to boost growth through M&As compared to 19 per cent in 2010 and 15 per cent in 2009. Up to 20 per cent of Vietnamese businesses said they expected changes in their ownership relations, doubling the global average rate.

 

Le Dinh Vinh, deputy general director of the SMIC Law Firm, said there were many favourable factors for boosting M&A activities in Viet Nam, especially the more open and transparent legal and investment environment over the last four years after Viet Nam joined the World Trade Organisation (WTO), Government efforts to attract foreign investment chiefly through M&As, and foreign investors' close attention to M&As.

 

The Competition Management Department, under the Ministry of Industry and Trade, forecasts that M&As in Viet Nam would continue to flourish in 2011 and over the next few years, growing at a rate of 30-40 per cent.

 

Matthias Duehn, EuroCham managing director, said that in 2011, M&A activities would develop strongly in several fields, particularly production, finance, banking and infrastructure.

 

However, the lack of a legal framework for M&A activities, stringent liquidity conditions and businesses' limited human resources and understanding of M&As would dampen this expansion.

 

In 2010, there were 345 M&As, worth a total of $1.7 billion, up 65 per cent over the previous year. This was the highest growth in M&A activity in Viet Nam so far.

 

Dragon fruit, rice, catfish prices fall 

 

The price of dragon fruit, rice and tra catfish has been dropping steadily in the Mekong Delta region.

 

A kilogram of medium-size dragon fruit sold for VND4,000-5,000 on May 29, while a kilogram of larger-size dragon fruit went for VND7,000-8,000.

 

Merchants said the price of dragon fruit has fallen because local companies are facing difficulty in exporting the fruit, especially to China.

 

The price of un-husked rice has decreased to VND4,900-5,100 per kilogram, depending on its variety, in Bac Lieu, Soc Trang and Dong Thap provinces.

 

Seafood processors have bought the best-quality tra catfish at VND27,000 per kilogram and the second best quality catfish at VND26,000 per kilogram, down 1,500-2,000 per kilogram compared to early May.

 

Nguyen Van Dao, general director of Go Dang Seafood Joint Stock Company, explained the drop in catfish prices to farmers’ refusal to sell their fish at VND28,500 per kilogram a few weeks ago as they expected the price to go up more.

 

However, the price began to drop since and farmers rushed to sell their fish, which caused the fall in prices.

 

Mr. Dao said the tra catfish export market remains good, with the price of catfish exported to Europe being US$3.4-3.5 per kilogram and to the US being US$4.1-4.2 per kilogram.

 

He added farmers need not sell their fish in a hurry at low prices to suffer losses.

 

Fruit farmers target higher standards

 

Several fruits in the southern region are being cultivated under Good Agricultural Practices standards and have high export value, according to the Plant Cultivation Department under the Ministry of Agriculture and Rural Development (MARD).

 

The fruits, including Nam Roi grapefruit, Hoang Hau dragonfruit, Tan Trieu grapefruit and Lo Ren milkfruit, are certified under the Vietnamese Good Agricultural Practices (VietGap) and Global Good Agricultural Practices (Global Gap).

 

However, fruit cultivation in the south still faces some obstacles, including inconsistent quality and poor competitiveness on the global market. In addition, the area for specialised cultivation for one particular fruit is too small.

 

Several localities have not found a stable outlet for their fruits and disease outbreaks have not been controlled well.

 

The southern region has 400,000ha of fruits of various kinds with total annual output of 4 million tonnes, accounting for 52.6 per cent of the country's total fruit area and 57.4 per cent of the country's fruit output.

 

The agriculture ministry on Tuesday held a meeting in Tien Giang Province to discuss important problems facing the industry.

 

Speaking at the meeting, experts said localities had instructed farmers to grow fruit under VietGap but the scale was still small and scattered, with each fruit cultivation area under VietGap standards reaching an average of a few hectares.

 

Vo Mai, deputy chairwoman of the Viet Nam Gardening Association, said farmers growing fruit under VietGap standards faced several difficulties.

 

The Government pays fees for farmers to apply for the VietGap certificate for the first time, but only for that time period. Once that passes, many farmers withdraw from growing fruit under VietGap standards, she said.

 

Consumers have not had identification between normal fruit and VietGap-certified fruits so farmers who grow VietGap-certified fruits find it is difficult for their products to compete with normal fruits, she said.

 

She suggested farmers should co-operate together to set up co-operatives in order to meet the demand of large-scale fruit cultivation and secure outlets for their products.

 

Bui Ba Bong, deputy minister of Agriculture and Rural Development, has ordered the southern region to create a zoning plan that would develop the region's fruit cultivation area.

 

He urged the southern provinces each to develop two to three specialised fruits as their key fruits.

 

He also ordered provinces to replicate the models of growing fruits under the VietGap and Global Gap standards as well as the model of cooperation among the State, enterprises, farmers and scientists in fruit cultivation.

 

The southern region has targeted that its area under fruit cultivation will be 418,000-438,000 ha in 2020, with total annual output of 5 million tonnes.

 

Dong Nai's industrial parks struggle

 

HCM City's neighbouring province of Dong Nai boasts a high IP occupancy rate, but several parks are languishing with little or no investment, the Dau Tu (Viet Nam Investment Review) newspaper reports.

 

For instance, the 54ha Tan Phu IP that became operational in 2005 has not had a single investment project to date, the report says.

 

Similarly, the 109ha Xuan Loc IP and the 183ha Nhon Trach II have only attracted one or two investment projects each over the past years, despite the fact that they have nearly completed their infrastructure constructions including roads, power and water supply and wastewater drainage systems.

 

Vo Cao Nhat, director of the Dinh Quan IP, said there were 14 investment projects that have registered to lease land, but only six of them have actually done it.

 

The remaining projects were stuck in financial difficulties because of the economic crisis, so they had not been implemented, Nhat said.

 

The 331ha Dau Giay IP has only one investment project so far despite the fact that many potential investors have visited the park.

 

Bo Ngoc Thu, director of the provincial Department of Planning and Investment, said investment into several IPs was slow because authorities were not encouraging projects in IPs that have not completed building a consolidated wastewater treatment system.

 

The Tan Phu and Xuan Loc IPs were located in mountainous areas and had disadvantages in transportation and socio-economic infrastructure, she said.

 

Other IPs like Dau Giay, Giang Dien, Long Khanh had not attracted investment projects because they were still in the process of land clearance and building infrastructure, she added.

 

Besides, the IPs have to face competition from industrial clusters, according to an investor of Long Khanh IP.

 

Industrial clusters do not have to build consolidated wastewater treatment system because they only operate in clean production sectors.

 

Furthermore, land rentals in industrial clusters are cheaper than in IPs.

 

Dong Nai has 30 IPs with a total area of 9,573ha, including 6,338ha for lease. Of these, 3,719ha have been rented, achieving an occupancy rate of 59 per cent.

 

The average occupancy rate in IPs nationwide is 46 per cent, according the Ministry of Planning and Investment.

 

HCM City to hold tra catfish conference

 

The Centre for Financial Data Research and Analysis GAFIN and Viet Nam Association of Seafood Exporters and Producers (VASEP) will co-organise a conference entitled "Viet Nam's tra fish – Vision for 2015" on Saturday in HCM City.

 

The conference will focus on clarifying the current economic and production situation and offer industry solutions.

 

In addition, GAFIN will highlight the advantages of Vietnamese fishery products.

 

Work starts on cosmetics factory

 

 Tra Giang International Beauty and Cosmetics Co recently started construction of a cosmetics manufacturing and packaging plant in Dong Tho Industrial Zone in Bac Ninh Province.

 

The plant, which will occupy a 6,400sq.m area, has a total capital investment of VND50 billion (US$2.4 million). It is expected to be operational in October.

 

The plant will manufacture hair-care products such as shampoo, hair conditioner and hair dyes, and be able to produce 500 million products per year.

 

Hung Yen set for oil, soybean factory

 

Quang Minh Corporation has begun work on an oil and soybean refining plant in Luong Bang Industrial Zone in northern Hung Yen Province.

 

The project, which will occupy an area of 12.5ha, has a total capital investment of VND1 trillion (US$47.6 million). It will be able to produce 360,000 tonnes of cooking oil per year, meeting roughly 10 per cent of total domestic demand for rude oil and refined oil, as well as for regional export.

 

The plant expects to earn a revenue of VND4 trillion ($190.5 million) per year.

 

VN, South Korea ink gas safety deal

 

The Industrial Safety Techniques and Environment Agency (STEA) under the Ministry of Industry and Trade and Korean Gas Safety (KGS) have signed a memorandum of understanding on gas safety.

 

The memorandum focuses on several main areas such as exchange of information on domestic and international regulations on gas safety, training and consultancy services in the gas and petrochemical industry.

 

Under the memorandum, KGS will support STEA to establish technical standards in gas safety and appoint technical experts to give safety training.

 

Lien Viet Bank changes name

 

Shareholder meeting of Lien Viet Commercial Joint Stock Bank (LienVietBank) last week agreed to change the bank's name to Lien Viet Post Commercial Joint Stock Bank.

 

Viet Nam Post Corporation (VNPost) will become a major shareholder in the bank.

 

The deal allows VNPost to use its subsidiary Postal Saving Service Company (VPSC) to make capital contributions.

 

In 2011, the three-year-old bank has targeted a pretax profit of VND1.18 trillion (US$57.56 million), up 55 per cent from last year. Meanwhile, it is aiming to increase its total assets by 71 per cent year-on-year to VND50-60 trillion ($2.43-2.92 billion). It is also looking to achieve a 20 per cent growth in total outstanding loans this year.

 

HDBank offers agricultural loans

 

HDBank yesterday began its loan programme for the agricultural sector with a total of VND2 trillion (US$95.2 million) in funds available.

 

Individuals and businesses operating in the agricultural sector that meet the requirements of HDBank's loans can borrow money in Vietnamese dong. Interest rates offered for these customers are 2-4 per cent lower than normal.

 

The programme will be applied until December 31 this year, and will possibly end as soon as the loan limit is used up.

 

Retail sales growth slows due to inflation

 

The retail sales value of goods and services increased by only 0.68 per cent to VND156 trillion (US$7.4 billion) during May.

 

Compared to previous months, May saw the lowest increase in sales value, according to the Domestic Market Watch Board run by the Ministry of Industry and Trade.

 

The total retail sales value during the first five months of 2011 reached VND762.7 trillion ($36.3 billion), an increase of 22.5 per cent over the same period last year. Considering inflation, the value rose by only 6.4 per cent, however.

 

The board attributed the slower pace of retail sales to high inflation, which has caused consumers to cut spending. Increased commodity prices have also caused sales volumes to fall.

 

During the first five months, commercial sector revenue, which accounted for nearly 80 per cent of the nation's total consumption revenue, rose by 23.6 per cent in comparison with the same period last year.

 

Last year, the country's total retail sales value of goods and services jumped by 24.5 per cent to VND1.561 trillion ($74.3 billion) against the previous year.

 

Modern retail chains currently account for 20 per cent of distribution in the country. This level is low compared with regional countries. However, experts have predicted this figure will grow to around 31.2 per cent by 2015.

 

Managing Partner at Athena Retail Consulting Vu The Du said that there still remained a multitude of investment opportunities in Viet Nam, especially throughout its untapped rural areas.

 

"Whilst rural sales have grown by 30-40 per cent annually, retail sales in rural areas, housing 74 per cent of the country's population, still provide major investment potential," Du said.

 

The retail industry annually contributes more than 15 per cent of the country's gross domestic product (GDP) and employs more than 5.4 million workers, representing over 10 per cent of Viet Nam's total workforce.

 

Steel giant moves towards public offering

 

The Viet Nam Steel Corporation (Vnsteel) moved a step closer to its initial public offering (IPO), setting the date for June 10 as part of an ambitious business plan.

 

The corporation will offer 65.9 million shares, or a 9.7 per cent stake at the auction, with an opening price of VND10,100 (US$0.49). The IPO will be held on the Ha Noi Stock Exchange.

 

"The IPO will help Vnsteel verify sources of capital, especially from strategic partners," Vnsteel's general director Le Phu Hung said.

 

Hung revealed that foreign corporations, including Nippon Steel, Evraz Group SA, Marubeni Itochu Steel and Novolipetsk Steel, were on Vnsteel's list of strategic partners. "They will create substantial changes for Vnsteel, especially in corporate governance," he said.

 

Vnsteel has a charter capital of VND6.8 trillion ($323.8 million), of which the State holds a 90 per cent stake. After the IPO, the corporation targets an after-tax profit of VND670 billion ($31.9 million) this year, VND882.5 billion ($42 million) in 2012 and nearly VND1.1 trillion in 2013. Vnsteel will invest VND36.9 trillion ($1.8 billion) in 16 steel projects.

 

"We are the middle of constructing the second phase of the Thai Nguyen steel project which will help increase capacity to 1.5 to 2 million tonnes a year," Hung said, noting another project in Lao Cai that will produce 500,000 tonnes this year and double that when it is completed in 2012.

 

Although it wasn't a good time to raise capital through the equity market, investors were more likely to buy if the price is right. "The price will increase with support from our strategic partners," Hung said.

 

We expect the auction to be a success, he added.

 

Vietnam to devise new incentives

 

Despite a number of difficulties Vietnam still attracts special attention from Japanese businesses.

 

The statement was affirmed by Japanese businesses at the fourth joint Japan-Vietnam Economic Conference held in Tokyo, Japan on May 30 by the International Friendship Exchange Council and the Vietnamese Embassy in Japan. Present at the conference were more than 100 Japanese businesses and Vietnamese Minister of Industry and Trade, Vo Hong Phuc and Vietnamese Ambassador to Japan, Nguyen Phu Binh as two main speakers.

 

Minister Phuc said Vietnam is in a bind, facing a high rate of inflation, huge trade deficits and budget overspending. At the moment, its priority is given to controlling inflation and stabilising macroeconomy. However, he affirmed that the country will be back on track as of 2012.

 

Japanese participants in the conference expressed their keen interest in the Vietnamese market.

 

Fukuda from the Shinkin Credit Fund said Vietnam is one of important destinations in the “China plus 1” strategy, which will help Japanese businesses reduce their risks of investing in China.

 

Japanese former ambassador to Vietnam Norio Hattori, said the investment relations between the two countries are not yet commensurate with their fine traditional relations. Hattori said this is due to lack of advertising and promotion of Vietnam’s investment environment as well as policies to attract investment, especially in high-tech and support industries.

 

Minister Phuc affirmed that the Vietnamese Government will consider amending laws and offering specific incentives.

 

Direct Hanoi-Kaohsiung route to be launched

 

The national flag carrier, Vietnam Airlines, will open a direct air route between Hanoi and Kaohsiung, Taiwan, on June 17. 

 

There will be three flights per week on Monday, Wednesday and Friday, using Airbus A321 aircraft.

 

Trinh Hong Quang, Vietnam Airlines Executive Vice President, said that the new route will meet the demand for travel and economic and cultural exchange between Vietnam and Taiwan.

 

It will also improve Vietnam Airlines’ competitiveness and make it on of the larger airlines in the region, he added.

 

This is the fourth direct route between Vietnam and Taiwan, which raises the total number of flights to 28 per week.

 

Companies still have room to grow in Vietnam 

 

International business representatives on Friday told the audience at a trade seminar that Vietnam remains a great place to invest, despite fluctuations and challenges.

 

The seminar was held at the Caravelle Hotel in Ho Chi Minh City's District 1 and was organized by the Indian Chamber of Commerce in Vietnam.

 

"Vietnam has many untouched resources and Indian companies can make use of these resources," said Abhay Thakur, Indian Consul General, during the opening address.

 

Yet certain issues related to policies and regulations need to be addressed to make things easier for businesses, he said.

 

“The government has recently taken decisive steps in the right direction, and the future looks bright, although there might be some bumps on the road,” said Michel Tosto, Institutional Sales & Brokerage Director of Viet Capital Securities.

 

VinaCapital Chief Investment Officer Andy Ho said the Consumer Price Index has continued to fall and interest rates are too high, making things difficult for businesses.

 

“The business environment is improving but it's still challenged by such things as inefficient government bureaucracy, corruption, inadequate infrastructure and an inadequately educated workforce.” said Tuyen Nguyen, Investment Officer from the International Financial Company IFC.

 

Nguyen also said Vietnam has proven its ability to overcome growing pains in the past. He said overheating in the mid 2000s was resolved quickly.

 

He said things would get worse in 2011 before getting better in 2012; global recovery would help but commodity pressures would persist. Nguyen alleged that a big gap in skills and it needs to be addressed in the next 5-10 years. “

 

"The economy is still under significant short-term stress. The need for infrastructure is a challenge, but also an opportunity,” said Amit Arora, Standard Chartered Bank’s country head of Consumer Banking.

 

Vietnam Airlines unveils new Taiwan service

 

Vietnam Airlines will begin direct flights between Hanoi and Kaohsiung, Taiwan, on June 17.

 

In an announcement Monday the airline said it would deploy Airbus A321 for the thrice-weekly service on Mondays, Wednesdays, and Fridays.

 

It will be the carrier’s fourth direct service to Taiwan – comprising 28 weekly flights -- and the 46th international route.

 

To mark the launch, Vietnam Airlines is offering 1,400 seats at a 30 percent discount for departure from June 17 to July 17.

 

Rubber prices bounce back

 

The price of SVR 3L, the major rubber variety Vietnam exports, has increased by 3.6 percent to US$488 per ton on the world market in the past two weeks, the Vietnam Rubber Group said.

 

This has boosted the domestic prices of latex by 9.4 percent to VND30000-36000 per liter, it added.

 

The hike in prices is due to increased demand from China and India, the two biggest importers, while production in major exporting nations like the Philippines and Indonesia is lower than expected due to unfavorable weather conditions.

 

The increase in the prices of oil and fuel has also affected the prices.

 

But the price remains far off the record high of $600 touched two months ago.

 

So far this year Vietnam has shipped 212,300 tons of rubber worth US$934 million, mainly to China, Japan, and Europe.

 

US firm wins EPC contract in southern Vietnam

 

PetroVietnam Technical Services Corp (PTSC) has selected the US-based Black & Veatch Holding Co to provide project management and design services for the Long Phu 1 Power Plant in the Mekong Delta’s Soc Trang Province.

 

The project is expected to supply much-needed additional power to the national electric grid, especially to more than 16 million people in the southernmost region.

 

“Apart from engineering and project management consulting experience, Black & Veatch has experience as an Engineering-Procurement-Construction (EPC) contractor in the power sector, which is of great importance in assisting PTSC with the engineering and construction of the Long Phu 1 Power Plant Project,” said Nguyen Tran Toan, Deputy General Director of PTSC.

 

PTSC is the Vietnamese EPC contractor for the project and is a member of the Vietnam Oil & Gas Group (PetroVietnam), the project owner. PetroVietnam Power, also a member of PetroVietnam, will operate the plant and deliver electricity to the Vietnam grid system.

 

“Black & Veatch Program Management professionals will be an integral part of the PTSC team, supporting them in meeting the operational goals,” said John Morrow, Project Manager for Black & Veatch.

 

The Vietnam Government projects the country’s economy will grow at a rate of 7.5-to-8 percent annually, over the next five years, so the Long Phu 1 Power Plant will provide an essential source of energy to support Vietnam’s growing economy.

 

“Rapid urbanization, manufacturing growth and a strong interest in the nation’s rich deposits of rare earth metals are putting pressure on Vietnam’s power grid,” said Gary Morrow, Senior Vice President and Director of Power Generation Services for Black & Veatch.

 

The Long Phu 1 Thermal Power Plant Project is a coal-fueled facility and will use highly efficient supercritical technology. Supercritical technology achieves lower carbon and other emissions than subcritical plants of the same power output because it enables plant operators to use less fuel per unit of electricity generated.

 

In addition to using highly-efficient supercritical technology, the Long Phu 1 Thermal Power Plant will also include wet scrubbers and electrostatic precipitators for air emissions controls.

 

The facility will consist of two, 600-megawatt (MW) units. It is the first of three planned power plants at the Long Phu Power Center. When completed, the center will have a combined capacity of 4,400 MW.

 

Provisional acceptance for the two, 600-MW units is scheduled in 2014.

 

The Vietnamese Government has announced plans to build 90 coal-fired power plants by the year 2025. These facilities will have a combined capacity of 106,000 MW and represent an investment of US $83 billion.

 

PetroVietnam plans to invest in, develop, construct and operate 9,000 additional megawatts of power generation capacity to meet 20 percent of the national electricity demand by 2015. Long Phu 1 is one of the power plant projects in the plan.

 

Black & Veatch has provided vital water and energy infrastructure in Vietnam for more than 20 years.

 

Since 1989, the company has completed more than 20 water-related projects in Vietnam and has an additional five water projects underway.

 

The company’s energy business has also completed five consulting service projects and one EPC project.

 

In 2008, Black & Veatch was presented a Safety Excellence Award from the Vietnam Government for “exceptional safety procedures and training” during the construction of the Saigon Hi-Tech Park transmission project. Black & Veatch provided EPC services for this project.

 

HCM City needs to have mechanism to lure funds

 

The People’s Committee of Ho Chi Minh City should introduce policies and mechanisms to mobilise all sources for investment, especially in key projects.

 

The request was made by Prime Minister Nguyen Tan Dung during his working session with the city’s leaders in HCM City on May 30 to review the implementation of solutions for socio-economic development over the past five months, as well as the Government’s Resolution 11 on curbing inflation, stabilising the macro-economy and ensuring social security.

 

Over the past five months, the city effectively took solutions, achieving results in all areas, creating an impetus for obtaining set goals, the PM said.

 

He hailed the dynamism and creativity of the city’s Party and authorities in curbing inflation and stabilising the macro-economy, promoting the increase of industry and services, saving on consumption and production, trade deficit control, and social security policies.

 

He urged the city’s Party and authorities to uphold their results to register a GDP growth rate of 12 percent and a 9 percent increase in exports, generate 265,000 jobs, raise the skilled labour rate to 60 percent and obtain per-capita income of US$3,130 for this year.

 

To meet the targets, PM Dung noted the city should continue taking drastic measures to battle inflation, focusing on price controls, along with keeping credit growth under 20 percent and closely watching bad debts of banks, as well as the gold market.

 

He suggested the city focus on solutions to economic development, sustainable urban development and management, development of education-training, science-technology and culture, settlement of social security and acceleration of administrative reform and anti-corruption.

 

In the first five months of this year, HCM City maintained stable growth, with significant achievements in services, exports, tourism and industrial production. The city granted licences for 123 FDI projects with capital of $1.33 billion, said the city’s report.

 

Thanks to Government Resolution 11, over the past three months the city gained encouraging results in stablising the foreign currency and gold markets, mobilising capital and providing loans, reducing regular spending, controlling prices and stabilising the market and supporting enterprises in production and business, according to the report.

 

Vinpearl launches two projects in Nha Trang

 

Vinpearl Corporation, an affiliate of Vingroup, on Saturday put into operation its luxury resort Vinpearl Luxury Nha Trang and Golf Vinpearl located on Hon Tre Islet in the central coast city of Nha Trang.

 

The company says Vinpearl Luxury Nha Trang comes into service with 84 luxury villas and other serviced facilities, which covers some 71,800 square meters on the islet. This is the first of its Vinpearl Luxury brand which the company designs to tap the luxury segment.

 

On the same day, Vinpearl officially opened its 18-hole golf course named Golf Vinpearl which covers some 182 hectares on the islet. Besides serviced facilities, the golf component also has some luxury villas.

 

The company says after the launch of Vinpearl Luxury Nha Trang, it will continue to start work on Vinpearl Luxury Danang by July this year and Vinpearl Luxury HCMC by August 8, 2012.

 

Hong Leong Vietnam joins Smartlink alliance

 

Hong Leong Bank Vietnam on Friday announced to have joined the card alliance Smartlink, allowing its clients to access to services at over 5,500 automated teller machines within the Smartlink system nationwide.

 

Yap Chee Woy, general director of the bank, and Nguyen Tu Anh, chief executive officer of Smartlink, signed the agreement to this effect on Friday at the Priority Banking Center of the bank’s Hanoi branch.

 

Currently, Smartlink’s network has over 5,500 ATMs and more than 20,000 points of sale nationwide. With the bank becoming a member of the card alliance, its customers will enjoy convenience when accessing their funds and performing transactions including cash withdrawal, PIN change, balance enquiry and transfer of funds among accounts at the bank.

 

“By joining Smartlink System, customers of Hong Leong will now have the flexibility and convenience to perform transactions at ATMs of other banks in the system without incurring any additional charge,” said Yap Chee Woy in a statement.

 

Hong Leong Bank Vietnam Limited commenced operations in October 2009 in HCMC. Six months later, the bank developed a new 24-hour transaction channel to better serve its customers with the offering of ATM card and services.

 

In 2011, the bank has further expanded its footprint in Vietnam by launching a branch in Hanoi followed by its Priority Banking service.

 

C.T Group introduces hi-end apartments

 

C.T Phuong Nam Joint Stock Co., a member of the HCMC-based C.T Group, on Saturday launched the second sales campaign of hi-end apartments of the multi-purpose C.T Plaza Nguyen Dinh Chieu building project under progress in the city’s District 3.

 

The company will sell 28 hi-end apartment units from 72 to 118 square meters at floors 19 and 20 for US$4,600 per square meter.

 

Earlier, customers at the groundbreaking ceremony in early March registered to buy all of the 28 units at floors 17 and 18 for US$4,600 per square meter, according to the company. There are in total 200 units on floors 17 to 24.

 

The VND1.8-trillion project at 117 Nguyen Dinh Chieu Street covering 50,000 square meters will include three basements and 24 floors for a luxury commercial area, hi-end apartments and a five-star-hotel. The project will be completed in early 2013.

 

C.T Group, a privately held fashion and cosmetics brands distributor and property developer, said the new project would be a state-of-the-art structure in the city.

 

Established in 1992, C.T Group has 36 members active in real estate, financial investment, high-end retail, cuisine, entertainment, education, healthcare, construction, natural resources, tourism, and import-export, among others.