Vietnamnet global

18/12/2011 07:00 (GMT+07:00)

BUSINESS IN BRIEF 18/12

Local exports achieve full-year targets early; Association drafts restructuring plan for stock market; Supermarkets trap consumers with promotions; Vietnam to intensify investment in Laos; Dishonest fuel dealers face losing licenses

Local exports achieve full-year targets early

Vietnam has achieved its full-year targets for export-import turnovers one month early, the latest figures from the General Customs Department have shown.

Specifically, the country’s total export turnover in the year to November topped nearly US$87.36 billion, up by 35 percent year on year, surpassing the 25-percent full-year target. Import turnover stood at $96.2 billion, a 26.5-percent increase year on year, while the targeted figure was 23.6 percent.

More importantly, the ratio of trade deficit and total export turnover has fallen dramatically compared to previous years, standing far behind the government target.

In the 11-month period, the country’s trade gap was nearly $8.82 billion, which is only 10.1 percent of the January-November total export turnover. Earlier, the government targeted a ratio of 16 percent.

Most of the export staples saw increases in turnover in the year to November, with only five out of 39 commodities experiencing a slight decline in their export turnover, while many other items enjoyed strong rises in earnings.

For instance, mobile phone export turnover rose by three times year on year, while cassava and pepper turnover nearly doubled against the same period last year; and coffee, crude oil, iron and steel, rubber, and chemicals all increased their earning 1.5 times.

Exports have remained as high as $9 billion for the last six months, an unprecedented steady development.

In November alone, exports reaped $8.9 billion, a 5.5 percent rise compared to October, while the respective figures for imports were $9.4 billion, a 3 percent rise.

This means the country’s trade gap last month narrowed to just $567 million, which is two thirds of the figure recorded in the previous month, and runs counter to the traditional high deficit experienced in the last months of every year.

Association drafts restructuring plan for stock market

The Vietnam Association of Securities Businesses (VASB) has held a meeting to collect feedback for its draft plan on restructuring the country’s stock market.

According to VASB, the country’s stock market has been operating for 11 years, with two stock exchanges and one UPCoM (unlisted public companies) market, where 105 securities companies and 46 fund management firms list more than 600 different shares, and 50 investment funds.

It has mobilized US$10 billion in government bonds, issued shares worth $15 billion, and attracted around $7 billion in foreign investment, VASB said.

However, it added, the stock market, along with the country’s financial market, has been affected by the global economic turbulence that began in 2007.

Moreover, the Vietnamese stock market has also been facing certain internal instability, in addition to external factors.

Thus, the stock market badly needs a restructuring in order to win back investors’ trust and confidence, the securities association said.

“The top target of the reform is to ensure that all shares can be easily traded in a fair, healthy, and transparent way, under adequate monitoring by the government,” said VASB chairman Le Van Chau.

The draft, which was earlier aimed at restructuring only the securities companies, has had its scale expanded into reforming the entire stock market, according to newswire VnEconomy.

The reform will evaluate the operation and financial ability of the operational securities firms to help them enhance operations, the plan states.

One of the key suggestions proposed in the plan is the merger of the country’s two stock exchanges -- the Ho Chi Minh Stock Exchange (HOSE), and the Hanoi Stock Exchange (HNX), to increase competitiveness in the regional arena.

The draft also suggests that the reform should not dissolve or merge the securities companies, but categorize them into stock brokerage companies, which are not allowed to participate in stock trading activities on their own; or securities businesses, which are banned from taking part in stock brokerage activities.

However, VietinBank Securities Co disagreed with this proposal, saying it would be difficult for securities companies to efficiently operate if they are not allowed to be involved in either trading or brokerage activities.

“The categorization should only be encouraged, not mandatory,” a company representative said.

The VASB also proposes to set higher requirements for share listing and public offering.

Accordingly, a company has to have profitable operation in the three previous years, rather than in just the currently required one year. It also has to meet a certain return on equity ratio, while the current regulations do not touch on this issue.

This suggestion, however, has received objections from some securities companies.

The APEC Securities Co, for instance, said the three-year profitable operation requirement was too strict.

It suggested a more flexible rule, saying if a business has been operating with profits in three consecutive years and holds a return on equity ratio of above 20 percent, it should be allowed to offer shares to hike registered capital by up to 100 percent.

Similarly, if the company only operates with a gain for two years, and has a return on equity ratio of 10 percent, the allowable increase rate should be 80 percent, APEC Co said.

Meanwhile, VASB also said the current regulations on trading treasury stocks should be adjusted, saying it was against principle that the Vietnam Securities Commission currently encourages traders to buy treasury stocks.

“Since listed companies are allowed to buy their own stocks to reduce registered capital, many stock traders have taken advantage of this to manipulate and speculate the market,” said Nguyen Thanh Ky, VASB general secretary.

Trade counsellors seek ways to facilitate export

A trade counsellors conference has been held in Hanoi to disseminate Party and State policies in socio-economic development and international integration of the trade and industry sector and Vietnam’s trade missions overseas.

Minister of Industry and Trade Vu Huy Hoang emphasised the significance of the conference as the economic situation in Vietnam and the world saw many changes and regional and global markets experienced many fluctuations during the past four years.

Import-export and trade promotion activities and overseas marketing work meant new requirements for Vietnam’s trade missions abroad, the minister said.

However, he said that despite overseas markets facing many difficulties, Vietnam’s exports to Asia-Pacific, European and American markets recorded high growth.

The minister attributed the growth to Vietnamese trade missions’ assistance to local businesses in trade promotion activities, seeking trade partners, trademark advertising, settling hindrances in trade disputes and issues relating to anti-dumping investigations, anti-subsidy efforts and other trade barriers in foreign markets.

Minister Hoang said 2012 will offer many opportunities as well as pose difficulties and challenges for Vietnam’s export markets.

The target of export growth of 13 percent in 2012 set by the Government for the industry and trade sector is not high compared with that of 2011 but poses challenges to the sector and Vietnam’s trade missions abroad, the minister said.

The ministry will discuss challenges and difficulties with counsellors in 2012 to help businesses prepare for their exports, he said.

Supermarkets trap consumers with promotions

Many consumers have been duped into believing that promotional campaigns held by supermarkets are a great chance to buy items at low prices, and they are unaware of the tricks that lay behind the campaigns.

A sales manager at an electronics mall admitted to Tuoi Tre that it is not easy to attract consumers to retail stores and supermarkets at a time when most people are cutting spending.

“Our promotional programs are designed to give customers the sense that a great variety of products are on discount, while there are in fact only a few,” he said.

“Hence, customers may buy things that they did not initially intend to.”

In fact, such a trick can easily be observed in many electronics center around Ho Chi Minh City, which often run ads boasting phrases such as “most shocking price ever,” “giant discounts,” or “Big Sale – Big Bang,” while there are in fact only a few items being discounted.

Lured by these ads, many consumers have found themselves in an awkward situation in which the products they want to buy are not discounted, while those that are discounted are not appealing enough for them to open their pockets.

There are also cases in which a consumer asks a sales assistant about certain discounted products only to be informed that such items “are out of stock,” or “yet to arrive.”

The assistants then enthusiastically guide the consumer to other products in the same category, but without any discounts offered, something that many consumers said is very annoying.

For their part, the supermarkets have taken advantage of all occasions to offer shopping campaigns.

In almost every month of the year, promotional programs are regularly launched, in the names of either marking the supermarkets’ birthday, children’s day, or even the new academic year.

A supermarket even launched a shopping campaign titled “Warm Winter” in HCMC, where the climate is particularly hot all year round.

In fact, most of the consumers that have packed the electronics centers and supermarkets during the promotional time visit simply to window-shop.

“Few consumers actually buy things since most people now have shallow pockets,” a sales assistant at an electronic mall said.

While the discounted prices are traditionally offered on electronic products and fashion garments, supermarkets and electronics centers are now putting other items such as rice and vegetables on discounts, in their race to attract consumers to their facilities.

Tu, a resident in District 11, said she regularly drops by a supermarket to buy meat, fish, and vegetables, since these items are being discounted.

But during her shopping there, Tu often buys other goods such as sugar, salt, and household products, even though they are more costly than those sold in stores on the street by up to several thousand dong.

Like Tu, many housewives have fallen into such traps at the supermarket.

A director of a supermarket said that most such stores are now focusing on running promotional programs covering fresh food and essentials commodities, rather than household products like in previous years.

“Thought profits earned from food commodities are not particularly high, it is an effective way of attracting consumers in the face of harsh competition,” he said.

Vietnam to intensify investment in Laos

Lao Prime Minister Thongsing Thammavong received a delegation of the Vietnamese Investors Association in Laos led by its head Tran Bac Ha, in Vientiane on Thursday.

PM Thongsing Thammavong said the delegation’s visit expressed the determination of Vietnamese investors in Laos in investment cooperation with the neighboring country.

Tran Bac Ha, who is also Chairman of the Bank for Investment and Development of Vietnam, said the association is creating investment plans based on the two countries’ demands and working with relevant agencies of the two nations to assess the implementation of Vietnamese-funded projects in Laos .

The association will also act as a bridge to connect the two countries’ governments and enterprises, establish dialogue mechanisms and propose policies for investment development and solutions during the investment process.

Ha added that the Vietnamese Investors Association in Laos will take part in multifaceted cooperative programs between the two Parties and states to boost the comprehensive Vietnam-Laos cooperation and welcome the Vietnam-Laos friendship year in 2012.

PM Thongsing Thammavong spoke highly of the association’s future plans and pledged to create favorable conditions for Vietnamese investors to work in Laos.

The same day, the delegation was received by Lao Deputy PM Somsavath Lengsavath.

Can Tho-Taiwan flights open during Tet holiday

The Director of the Vietnam Airlines office in Can Tho city said on Thursday that the national flag carrier will operate 11 direct flights from Can Tho to Taiwan, China and vice versa during the 2012 lunar new year.

There will be six flights from Taipei , Kaohsiung and Taichung to Can Tho and five from Can Tho to these destinations, with the first flight from Taipei to Can Tho on January 17, 2012.

Each flight is capable of carrying 100-130 passengers on Airbus 321 aircraft.

This is the third year the Vietnam Airlines office in Can Tho city has offered a direct air service to Taiwan to allow overseas Vietnamese to return home to celebrate the Tet holiday.

Dishonest fuel dealers face losing licenses

The 11 fuel dealers who have been caught selling substandard gasoline should have their licenses canceled and receive the highest possible fines, Le Manh Ha, deputy chairman of the Ho Chi Minh City People’s Committee, has said.

The proposal was made at the conclusion of a meeting between the city’s government, the municipal relevant departments and agencies, and the Market Management Agency under the Ministry of Industry and Trade, regarding the final penalty on the dishonest fuel dealers who mixed A83-grade gasoline with A92 and A95 to cheat their customers.

Speaking at the meeting, the municipal Department of Science and Technology said besides breaching the regulation on gasoline quality, three of the 11 dealers also failed to renew their licenses that had expired in December 2010.

The department thus suggested applying Decree No 54 to punish the violators with a monetary fine 5 times greater than the total value of the substandard petrol they sold.

However, the department added that in fact the dealers can only be subject to a maximum fine of VND30 million, as stipulated by the ordinance of financial sanctions.

“No matter how high the fine calculated by the Decree No 54 is, the dealers only have to pay VND30 million maximum,” a department official said, cautioning that such regulation can only encourage more violations.

The science department also suggested that the dealers be fined VND5 million for operating with expired licenses.

However, deputy chairman Ha said the proposed sanctions are not strict enough and called for more proposals from other agencies.

Huynh Khanh Hiep, deputy head of the municipal Department of Industry and Trade, said the act of selling substandard gasoline under the name of A92 and A95 gasoline can be considered a trade fraud.

Thus, he demanded that the dealers be penalized under the Decree No 107 on trade frauds and goods trafficking, which stipulates that the dealers pay fines, compensate their customers, and most importantly, be suspended for 12 months.

The decree also stipulates that if the dealers cannot find the victims to pay the compensation to, the money they earned from selling the substandard fuel will be confiscated to contribute to the state budget.

The suggestion met with approval by the Market Management Agency.

In closing the meeting, Ha said the city’s government is likely to levy the highest financial fine possible on the dishonest dealers, requesting them to pay compensations as well as revoking their licenses.

Ha also said that the substandard gasoline, which was detected to have an unusual octane rating of 83.4, 83.7, or 85, can be considered fake A92 and A95 petrol, thus subjecting the dealers to possible criminal prosecution.

Though this idea is not completely shared by other agencies, Ha still demanded that the relevant agencies consider all legal regulations to conduct criminal prosecution on the dealers, which he said would be a stricter penalty.

He also ordered the municipal Department of Science and Technology to collect fuel samples in all fuel dealers citywide.

For its part, the department said it has detected many unqualified gasoline samples in some filling stations.

“This constitutes a violation of the law and the authorized agencies can confiscate the products and await final inspection results to impose sanctions,” Ha said.

Domestic paper industry lags behind imports

The domestic paper industry is currently suffering due to imports driving up production costs and taxes amidst declining raw material volumes, according to the Viet Nam Paper and Pulp Association.

It said that raw material imports had remained necessary for pulp production purposes while the industry continued exporting large amounts of domestic material at low prices.

To prove its points, the association revealed that annually, the industry was capable of producing more than 400,000 tonnes of pulp, meeting 20 per cent of the total national demand.

Meanwhile, it added that over 2 million tonnes of wood-based materials used to make pulp had been exported.

Currently, although local demand had remained high, consumption was steady.

Global paper prices have however reduced recently, being around 10 per cent cheaper than domestically, the association confirmed.

It noted that out of date technology had been a large draw back in terms of production, quality and competitiveness.

The situation is expected to deteriorate when the import tax on paper is cut by 20 per cent in 2012 as part of World Trade Organisation (WTO) commitments.

To solve the problem, experts agreed comprehensive investment in technology was essential in streamlining operations to meet 70 per cent of domestic demand by 2020.

A General Customs Department report revealed that the country had imported 954,000 tonnes of paper, worth US$961 million, up 2 per cent in volume and 16 per cent in value.

Imports came mostly from Indonesia, Thailand and Singapore.

Construction projects slow to a crawl

Ninety-nine per cent of construction projects in Viet Nam have fallen behind schedule, with red tape and delayed land clearance procedures seen as leading causes for the delays, Deputy Minister of Construction Bui Pham Khanh told a seminar held here yesterday by the Federation of Civil Engineering Associations (FCEA).

State-financed projects were not immune from the delays, Khanh noted. State-funded capital construction costs were equal to 40 per cent of gross domestic product, he said, so slow progress on projects was a huge waste to the State and detrimental to the public interest, he said.

Yet some major projects managed to stay on track, such as the Son La hydroelectric facility, which was completed two years ahead of schedule, saving about US$2 billion, he said. Keys to the project’s success were good preparation, sufficient land clearance compensation for residents in affected areas (about VND20 trillion or $952 million) and the proper selection of project management personnel and contractors.

Such projects were few and far between, however. FCEA president Tran Ngoc Hung said projects were sluggish in all aspects, including preparation and implementation.

Overlapping of regulations, cumbersome administrative procedure, incomplete development plans at national or local levels were all factors in delays, but insufficient survey and study could also result in changes to the location and scale of projects, he said.

“When implementing projects, land clearance is almost always the bottleneck, lasting for years.”

Resettlement areas also required infrastructure, including transportation systems, power and water supplies and schools.

Hung recommended that State should clear land to offer a “clean surface” before calling for bids on projects.

The head of the Ministry of Construction’s construction economics department, Pham Van Khanh, said that an improved legal framework would shorten the period of project implementation.

Currently, there was a lack of construction cost management tools including market database and construction indices, adding to time for computing estimates and making payments, he said.

Regulations on the contents of contracts, including obligations, responsibility and sanctions for relevant parties, were also insufficient or unsuited to international norms. These could cause disputes and require additional time to resolve, he said.

HCMC business group warns of more grim times

“Hang in there” was the message from the HCM City Union of Business Associations to its members as it warned them the economic situation would remain dire next year.

Speaking at a meeting held yesterday to review the association’s performance this year and set tasks for the next, Huynh Van Minh, its chairman, admitted that 30 per cent of businesses in Viet Nam had ceased operations this year due to the impacts of the global economic crisis and high interest and inflation rates at home.

But he promised them the association’s full support.

Pham Ngoc Hung, HUBA’s deputy chairman, explained what kind of support it offered.

It was a bridge between the Government and businesses, communicating the Government’s policies to enterprises and conveying the latter’s demands, and organised training courses, trade promotions, and meetings to help members raise their competitiveness and expand markets, he explained.

In 2012 it would continue to organise seminars, fairs, training courses, and trade promotions, he said.

This year it had admitted 154 new members, raising the total number to 46 associations and 200 enterprises, and raised more than VND8.3 billion (US$414,564) for social and charitable activities, he said.

The association had petitioned the Government to adopt urgent measures to support businesses, especially small and medium-sized ones, exporters, and those in the agricultural sector and producing essential consumer goods, he said.

He urged the HCM City government to speed up administrative reform and set up a fund to lend to SMEs.

The association had also petitioned the Ministry of Education and Training and the city to provide incentives related to land, finance, and others for establishing an Entrepreneurs Academy to train business executives, he said.

Huynh Khanh Hiep, deputy director of the HCM City Department of Industry and Trade, said the city appreciated HUBA’s accomplishments and was committed to providing the most favorable conditions for businesses.

Motorists able to buy Bio-fuel E5 with cards

The Viet Nam Oil Corporation (PV Oil) and Materials-Petroleum Joint Stock Company (Comeco) officially started on Tuesday the service of purchasing bio-fuel E5 via OP and OP Plus cards issued by the Ocean Commercial Joint Stock Bank (Ocean Bank).

Holders of OP and OP Plus cards can now buy petroleum products from any of the 15 participating Comeco’s pumping stations.

At present, the bio-fuel E5 is sold in a total of 144 pumping stations in 34 provinces and cities nationwide.

Dak Lak attracts 47 new projects worth $95 million

The Tay Nguyen (Central Highlands) province of Dak Lak has attracted 47 new projects this year with a total investment capital of more than VND2 trillion (US$95.2 million).

Construction projects include agricultural and forestry product manufacturing and processing plants, the VND100 billion ($4.7 million) industrial sewing factory project from the Viet Nam National Textile and Garment Group and a VND300 billion ($14.2 million) Metro supermarket project.

The majority of projects have currently started construction or become operational, creating jobs for thousands of local ethnic labours.

Exports of made-in-Viet Nam footwear, handbags to rise

The domestic market was estimated to consume about 25 million handbags, briefcases and backpacks this year, including 15 million made by domestic enterprises, according to the Association of Footwear and Leather of Viet Nam (Lefaso).

The consumption of handbags, briefcases and backpacks next year is expected to slightly increase by 5-8 per cent. The export turnover of these products in the first 11 months of this year reached US$1.13 billion, a year-on-year increase of 33 per cent, according to Lefaso.

Meanwhile, the output of footwear from domestic producers is expected to reach 70 million pairs worth US$750 million, equivalent to 50 per cent of domestic market demand.

Long An’s industrial zones attract $1.42 billion in FDI

The southern province of Long An’s industrial zone attracted 611 projects since the beginning of this month, including 118 foreign direct investment (FDI) projects with a total registered capital of over US$1.428 billion.

In November, provincial industrial zones attracted 10 new projects in the fields of steel making, plastic spare parts processing, packing and carton manufacturing, including three FDI projects with a total registered capital of $2.33 million and seven domestic invested ones, worth more than VND338 billion ($16 million).

The new projects are believed to create jobs for 900 labours.

New terminal facilitates faster sea transport

The Cai Mep International Terminal, which officially began operating earlier this month, has had a highly productive start in loading and unloading cargo from container vessels.

The terminal achieved 125 berth moves per hour, equal to 125 containers of all sizes, using a system of four quay cranes. At this speed, the port would be able to facilitate faster transport times between Viet Nam and Europe and the US.

High quality Vietnamese products showcased in Danang

A trade fair of high-quality Vietnamese goods opened in central Danang city on December 16, drawing 250 stands from more than 120 businesses across the country.

On display are various kinds of goods, including handicrafts, garment and textiles, footwear and food.

The fair aims to encourage local consumers to buy made-in-Vietnam products. It also creates a good opportunity for businesses to introduce their products and seek partners.

The Deputy Director of the Danang municipal Department for Industry and Trade, Lu Bang, said the fair is the second of its kind ever held in the city to help local businesses expand their distribution network and find new markets.

Bridgestone rolls out tire plan

Japan-based Bridgestone Corporation will build a new plant in Vietnam to produce radial tires for passenger cars.

The decision was made as a result of the strong growth in global demand for passenger cars (PSRs), and the total investment in the plant will be $458.5 million.

Production at the new plant will begin in the first half of 2014.

Plans call for a production capacity of approximately 24,700 tires per day after the production ramp-up is completed in the first half of 2016.

The new plant, to cover one million square metres and employ around 1,900 employees by 2016’s first half, will serve as an export base for replacement tire sold in the European, North American, and Japanese markets, primarily supplying tires for general use. Currently, Bridgestone has increased its production capacities at the Nong Khae Plant in Thailand and the Karawang Plant in Indonesia to supply tires to those markets.

However, Bridgestone has determined that a new plant in Vietnam was necessary in order to respond to continuing growth in demand.

In selecting the site, Bridgestone made a comprehensive evaluation from a variety of perspectives, including infrastructure, location, workforce and cost. As a result of this evaluation, the Dinh Vu Industrial Zone in Haiphong, Vietnam was chosen as the site of the new plant.

The Bridgestone Group currently produces new tires at 47 plants in 20 countries. After the start-up of a new plant in India, a plant for large and ultra-large off-the-road radial tires for construction and mining vehicles in the United States, and this new plant in Vietnam, Bridgestone will have a production system of 50 plants in 21 countries.

Moving forward, the Bridgestone Corporation will continue working to bolster its global supply capacity and to build a system for the rapid supply of high-quality products to meet market demands.

Bridgestone Corporation, headquartered in Tokyo, is the world’s largest tire and rubber company. In addition to tires for use in a wide variety of applications, it also manufactures a broad range of diversified products, which include industrial rubber and chemical products and sporting goods. Its products are sold in over 150 nations and territories.

Oil and gas sector fetches US$34 billion in revenue

The oil and gas sector, which employs more than 50,000 workers and accounts for nearly 25 percent of the country’s GDP, has earned US$34 billion in revenue this year and paid over US$7 billion in taxes.

The industry has expanded its activities to 18 countries such as Malaysia, Algeria, Japan, the US, and the Republic of Korea.

It is planning to penetrate other strongly potential markets namely the Commonwealth of Independent States, Africa and the Middle East, and diversify investment forms together with major partners, said Nguyen Quoc Thap, Vice CEO of Vietnam Oil and Gas Group (PetroVietnam).

In addition, the sector will continue completing domestic seaport projects and calling for investment in them.

PetroVietnam currently has six projects worth US$3 billion each and 11 others worth US$2 billion each.

Ba Ria-Vung Tau seeks Japanese assistance

Leaders of southern Ba Ria-Vung Tau province on October 15 held a working session with representatives of the Japan International Cooperation Agency (JICA) and the Vietnam Development Forum (VDF).

At the meeting, local authorities briefed the Japanese side on the province’s potential, opportunities, development plans as well as difficulties and its desire for support from Japan.

Representatives of the two organisations said that Ba Ria-Vung Tau holds great potential for economic breakthroughs and suggested it set up an information channel with Japan in the first quarter of 2012 to jointly develop cooperation programmes and tasks.

They also stressed the need for Ba Ria-Vung Tau to inform the Japanese side about its focused areas so that Japan has plans to dispatch experts and consultancy firms to assist the province.

Prof. Yoshiharu Tsuboi, JICA’s senior advisor, recommended Ba Ria-Vung Tau to consider fostering connections between localities while building its development plans.

Regarding Thi Vai-Cai Mep seaport, he said the province needs to improve managerial and competitive capacity to regional and international standards.

JICA and VDF advisors said the Japanese government is mulling over the provision of official development assistance to fund construction of Phuoc An bridge linking the Thi Vai-Cai Mep seaport with southern inter-regional expressway.

Largest shopping and entertainment centre inaugurated

Vietnam’s largest shopping and entertainment centre, Savico MegaMall, was officially inaugurated in Hanoi’s Long Bien district on December 16.

Covering an area of more than 60,000 square metre in the east of the city, this architectural gem has attracted investment from the world’s leading international companies in the field of design consultancy, project management and supervision such as Site Architect, Coteba Artelia from France and Red Brand from Australia.

The main investor in the centre is Hanoi Savico Joint Stock Company. Savico Megamall’s major leaseholders include Big C supermarket, Tran Anh Electronic Supermarket, and culinary restaurants such as KFC, Lotteria, Sumo BBQ, Pizza Hut, Hot Wok and Seafood One.

The centre has gathered more than 100 international and domestic trademarks in the fields of cosmetics, fashion, jewelry, and watch making, household utensils, interior decoration, book supermarket, toys and children’s clothes and banking services.

Its MegaFun Game Centre is also considered the largest entertainment site for children and families.

Vietnam attends import-export trade exhibition in Cambodia

Nearly 262 companies from 17 nations in the world including 20 from Vietnam, have participated in the 6th Cambodia Import-Export & One Province One Product Exhibition Plus ACMECS which officially opened in Phnom Penh on December 15.

The annual event aims to help businesses promote trade and seek partners.

The focus is on trade promotions among five ACMECS (Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy) countries - Cambodia, Laos, Myanmar, Thailand and Vietnam by their leaders at the fifth ACMECS held in Phnom Penh in November last year.

Trade exchange between Vietnam and ACMECS countries has developed constantly in recent years and is expected to reach US$12 billion this year.

In the first ten months of the year, Cambodia’s bilateral trade turnover reached nearly US$2.3 billion, up 57 percent from a year earlier.

Gap widens between local and global gold price

With yesterday’s domestic gold price dropping just slightly against the steep decline of the global price, the price gap between the two widened to VND2.6 million a tael.

As of 5pm yesterday, the global gold plummeted to US$1,587 an ounce, or VND40.8 million a tael while the domestic price was VND43.4 million a tael.

The domestic gold price fell by only VND750,000, or US$36, a tael compared to Monday while its global counterpart lost $124.8 a tael in the last 3 days.

All SJC shops in HCMC yesterday continued to be overcrowded with hundreds of customers queuing up to buy gold.

Saigon Jewelry Co, the country’s largest gold trader, said it sold 12,000 taels of SJC gold on Thursday, up by 1,000 tael compared to a day earlier.

SJC sold a total of 30,000 taels in the last 3 days.

Last week, when the gap between the domestic and global price was nearly VND2 million, the State Bank of Vietnam allowed SJC and some commercial banks to sell out their own gold to narrow the gap.

They were also allowed to open accounts on international gold trading floors to cover supply. However, the gap even widened after SJC and banks opened new gold trading accounts.

Gold traders attribute the huge gap to the fact that domestic gold has failed to follow the extremely sharp dip of global gold.

However, experts say the domestic price remains high because many traders have incurred losses after buying gold at higher prices last week.

“Since the global price has fallen sharply, traders have to keep prices up to cut losses,” an expert told Tuoi Tre.

“They are waiting until the global price rebounds or their old stock is sold out.”

The CEO of a gold company in affiliate with a bank admitted that although the central bank had green-lighted banks to open gold trading accounts, only a couple of businesses had done so.

Those who didn’t do so had suffered losses in the last market intervention due to the dropping global price and soaring forex rate, he said.

In Ho Chi Minh City, dollar selling price on the black market today (December 16) continued to rise by VND125 compared to yesterday.

The greenback this morning was sold at VND21,400 a dollar. It has strengthened by more than VND220 since Wednesday.

The gap between official and unofficial dollar exchange rate has widened to VND380 a dollar.

Meanwhile, the interbank exchange rate was kept unchanged at VND20,813 a dollar, after rising by VND10 on Wednesday to reach the top height since February 11, when the central bank devalued the dong by 9.3 percent.

On September 7, central bank Governor Nguyen Van Binh promised that the exchange rate would not appreciate by more than 1 percent by the end of the year.

The rate has so far risen by VND185, or 0.9 percent, meaning the central bank can only increase the rate a maximum of 0.1 percent, or VND21, in the remaining days of the year.

Most banks now trade the greenback at the new ceiling of VND21,021.

Newly-merged bank unveils official name

TinNghiaBank, Ficombank, and Saigon Commercial Bank, the country’s first three banks to be merged under the banking system restructuring, announced Thursday that the newly-merged bank will be named after the latter business.

The new name was agreed on by the three banks’ shareholders in an unusual meeting yesterday.

On December 6, Ficombank, TinNghiaBank and Saigon Commercial Bank (SCB) became the first three banks to be merged, as the central bank began to implement its banking reform plan.

The newly-merged bank -- or Saigon Commercial Bank from now on -- has a total registered capital of VND10.58 trillion (US$507.8 million), equaling 1,058 shares, and total assets worth VND153.62 trillion.

During the merger process, all shares of the three banks will be converted into the new bank’s stocks with their values remaining unchanged.

The newly-merged SCB will file documents to seek approval for the merger from the State Bank of Vietnam.

Nguyen Hoang Minh, deputy director of the HCMC branch of the central bank, said the institution will facilitate the merger in order to protect depositors’ rights.

SCB has also been allowed to hold a shareholder meeting on December 23 to discuss future development plans.

The new bank is expected to target a VND667-billion post-tax profit next year, and VND1.18 trillion and VND1.86 trillion in the next two years, respectively.

It also aims to hike registered capital to VND16 trillion in 2014, 37.5 percent of which will be held by new shareholders.