Sacombank signs strategic investment agreement

Securities Company (SBS) and Singapore’s DMG & Partners Securities Pte Ltd signed a strategic cooperation program Friday in Ho Chi Minh City.

Under the program, SBS and DMG pledged to cooperate and share experiences in the areas of technology, brokerage, market research and the arrangement of workshops to introduce markets and opportunities for investment in Vietnam, said SBS chairman Nguyen Ho Nam.

Both sides will also join hands to introduce Vietnam’s leading businesses to investors in Singapore, Malaysia , Hong Kong (China), and provide information about the Vietnamese market for foreign investors, creating conditions for capital flows from foreign investors and investment funds into the domestic market, he added.

DMG CEO Nicholas Ng said with the experience, sustainable development basis and strength of both sides in local and regional markets, the two companies agreed that the cooperation program would be a good opportunity to raise prestige, position and improve their operations’ efficiency in the near future.

Sacombank-SBS, one of Vietnam’s leading securities companies, provides investment banking services to domestic and regional capital markets. It has expanded its operations to regional countries like Singapore, Cambodia and Laos with the aim of becoming a gateway for investment links, connecting the capital markets among countries and contributing to promoting the development of Vietnam’s securities market.

DMG Partners Securities Pte Ltd is a joint venture between OSK Berhad investment bank and Deutsche Asia Pacific. It is a member of the Singapore Stock Exchange.

Dollar price up following interbank rate rise

Shortly after the central bank raised interbank exchange rate from VND18,932 to VND20,693 per US dollar yesterday morning, the dollar price on the open market has sharply increased.

In Ho Chi Minh City, the selling price of US dollar on the open market yesterday afternoon increased up to VND21,700 at many jewelry shops in the Ben Thanh and Tan Dinh market areas. Meanwhile, the buying price of the blue money was around VND21,300-21,400.

Yesterday saw US dollar more bought than sold on the open market. A jewelry shop in Le Loi Street said the number of buyers of dollar at his shop was about 30 percent higher than that a few days before.

In Hanoi, the difference between selling and buying prices was less than in HCM City, with the dollar bought and sold for VND21,450-21,550 respectively at 4 pm yesterday.

Meanwhile, commercial banks, like Asia Commercial Bank (ACB) and Eximbank, posted their selling prices of US dollar at VND20,900-21,000 and buying prices at VND20,830-20,890.

The supply and demand of USD at commercial banks remained stable at such prices, a general director of a medium-sized bank told VnExpress. “The dollar price on the open market may lower in the days to come,” he said.

Vung Tau grants $290 mln projects, billions to come

Vung Tau coastSouthern coastal Ba Ria-Vung Tau province authorities yesterday handed 12 investment certificates for domestic and foreign projects, whose total registered capital amounts to over $290.3 million.

Of the amount, $70 million came from 4 foreign direct investment (FDI) projects and the remainder (VND4,300 billion) was invested by 8 domestic projects.

The most remarkable among the four FDI projects is the Diagnostic Imaging and Emergency Transport Center invested by a Vietnamese-Canadian, Mrs. Victoria Le Loan, general director of Viet-Can Company.

The Center will be equipped with advanced diagnosis imaging equipment imported from Canada, said Mrs. Loan.

In the second phase of the project, the center will invest US$20 million in launching emergency transport services, with one ambulance to be made available for each district of the province.

Viet-Can now is applying for a license to develop helicopter emergency transport services which carry patients from Vung Tau City to Ho Chi Minh City and even abroad, Mrs. Loan said.

Following these projects, the provincial authorities will license the South Con Son 2 Gas Pipeline project in a few days to come, said Ho Van Nien, deputy chairman of the provincial People’s Committee.

This is a giant project with a registered capital of $1.2 billion invested by the PetroVietnam Gas Corporation, he said.

Prices stable in supermarkets, still soar in traditional markets 

Costs of price-stabilized goods have remained stable in supermarkets after Tet (Lunar New Year), whereas price of seafood and vegetables has soared sharply in traditional markets. 

Commodity goods that were price stabilized like rice, sugar, cooking oil, red meat, poultry, eggs, fruits, vegetables and processed foods were sold in large volumes before Tet and these goods are still in abundant stock after Tet.

This goes to show that over 30 supermarkets and trading centers and 130 shops that sold price-stabilized goods had made good preparations in stocking the goods.

The price of pork has maintained at VND64,000 per kilogram at Co.op Mart supermarket, while it is selling for VND90,000 per kilogram in the market.

Sugar which is currently selling for VND25,000 per kilogram is still VND18,000 per kilogram in supermarkets.

Due to a high demand for seafood and vegetables coupled with inadequate supplies, prices have shot up by 30-40 percent.

A retailer commented that people ate so much meat during Tet that they prefer seafood after the festival which is raising the demand.

Besides, fishermen are still enjoying the holiday season and have yet to go out to fish in the sea causing a shortage of seafood.

At present, a kilogram of fresh water fish costs VND150,000 and a kilogram of tiger shrimps about VND300,000 while it was only VND180,000 before Tet.

Cucumber currently costs VND10,000-12,000 per kilogram and tomato fetches VND9,000-15,000 per kilogram at Ben Thanh, Ba Chieu and Cay Go markets.

Traders attribute the price hike to an increase in transportation costs, expecting also for prices to stabilize within 15 days after Tet.

Soaring coffee prices cause companies to scramble 

Domestic coffee prices are soaring these days causing a scramble amongst domestic and foreign companies.

According to the Vietnam Coffee and Cocoa Association (Vicofa), the price of coffee has hit an all-time high of VND40,500-41,000 per kilogram over the last four years in the Central Highlands.

This price hike has caused concern amongst local traders, as foreign companies are pushing to purchase directly from farmers.

Vicofa claims that foreign companies have the buying power to stock large quantities whilst domestic companies are more cash strapped.

Vicofa also feels that foreign companies are violating the country’s laws by buying coffee directly from farmers.

The Club of Coffee Exporters has proposed that relevant agencies must i th trades worth an average of VND325 billion ($15.5 million) per day.

Tai Viet Securities Co analysts figured that foreign investors began paying greater attention to the Ha Noi market last week, where they bought up 6.5 million shares.

Aquaculture exports set to expand

Exports of cuttlefish, squid and shellfish are expected to increase this year as part of the Ministry of Agriculture and Rural Development's programme to diversify the nation's seafood exports.

Over 120,000 tonnes of shellfish were exported in 2010, earning US$489 million and accounting for 9.7 per cent of seafood exports, according the Viet Nam Association of

Seafood Exporters and Producers (VASEP). Of the total, 100,000 tonnes were unprocessed, accounting for $400 million, or 82 per cent of the total export value.

VASEP's Nguyen Minh Tam attributed the result to the increased efforts by exporters to expand export markets from such traditional customers as the EU and the US to

new markets in the Middle East. Vietnamese cuttlefish, squid and shellfish are now exported to 80 markets around the world.

Technical barriers, such as stricter food safety and hygiene requirements, pose challenges to continued growth in exports, however.

Vietnamese exports to the EU must now meet technical requirements developed by the British Retail Consortium, in addition to ISO22000 standards and Hazard Analysis and Critical Control Point (HACCP) system, a process control system that identifies where hazards might occur in the food production chain.

For processors, the shortage of raw materials also remained problematic. VASEP was urging the Government to simplify import procedures and reduce import taxes from 10-20 per cent to zero for unprocessed products.

Rubber exports stretch to $250m

Viet Nam exported 70,000 tonnes of rubber in January, worth US$250 million, a year-on-year increase of 30 per cent in volume and 90 per cent in value, according to a report by the Ministry of Agriculture and Rural Development (MARD).

The price of rubber is expected to stabilise by May. The current global price stands at $5,000 per tonne, doubling that of the same period last year, while in the domestic market, rubber for export has also reached a similar figure.

Viet Nam planned to enlarge the area of its rubber plantations by 5,000ha this year and produce a total of 780,000 tonnes, 30,000 more than last year with export turnover

expected to hit $2.5-2.7 billion, estimated Le Quang Thung, chairman of the Viet Nam Rubber Association (VRA).

According to VRA, rubber processors need to take advantage of the high price to renew technology and equipment, and improve product quality with a view to diversifying their export markets and enhancing their product value.

The rubber industry draws investment from both State owned and private enterprises. Apart from Viet Nam Rubber Group (VRG), private firms such as Sai Gon Investment Group (SGI) and Hoang Anh Gia Lai Group also have plans to develop rubber plantations this year. VRG is also planting 21,000ha of rubber in Laos and expects to add a further 4,000ha with an estimated productivity of 4,000 tonnes.

MARD figures showed that Viet Nam exported 783,000 tonnes of natural rubber worth a record high $2.37 billion last year, a year-on-year increase of 7 per cent in volume and 93.7 per cent in value.

Delta highway project to be a private-public affair

The My Thuan-Can Tho highway in the Mekong Delta will be built by a public-private partnership, the Ministry of Transport has said.

The 32.3-km highway, from the My Thuan Bridge in Vinh Long Province to the Can Tho Bridge, will get funding from the Government, domestic and foreign loans, and private investors.

The lands available on both sides of the expressway will be used to raise funds for the construction estimated to cost VND6.08 trillion (US$304 million), the ministry said.

The highway, for which pre-feasibility studies are complete, will have four lanes and be built to grade-A highway standards that will allow vehicles to travel at 100km an hour.

Construction will begin this year and be completed by 2015 when it is expected to handle around 40,000 vehicles a day. It will be built by the Cuu Long Traffic Infrastructure Investment, Development, and Management Corporation.

It is expected to ease the congestion on Highway No1 and will form an uninterrupted link between HCM City and 13 Mekong Delta provinces.

"It will create a continuous 150-km highway from HCM City all the way to Can Tho," Deputy Minister of Transport Ngo Thinh Duc said.

The existing two-lane road limits vehicles to a speed of 50km an hour.

Transparency vital for investment

Improving the transparency of the business environment at provincial levels was an important factor in attracting urgently needed investment, the vice chairman of

the Viet Nam Chamber of Commerce and Industry, (VCCI) Hoang Van Dung announced at a press conference this week.

Dung said transparency created trust among investors and reduced fees for searching for information.

Dau Anh Tuan, deputy head of VCCI's Legislation Department, said businesses with high transparency achieved higher profits, proving the sustainability of a transparent business environment.

He said several provinces had been active in improving their business environment. Northern Bac Ninh Province had built a handbook to guide investors about investment and building procedures. Southern Dong Nai Province set up a website in five languages to provide information to investors.

Some provinces established an "one-door" mechanism for granting investment certification.

Ho Dai Dung, deputy director of northern Phu Tho Province's Planning and Investment Department, said it worked together with industrial zone management boards to supply businesses with investment information.

Dung said the province also clearly stipulated regulations for investors and investment regions.

The department held monthly meetings with businesses to resolve any difficulties and had merged its Commercial and Investment Promotion Centre with its Tourism Centre to provide a one-stop shop for businesses.

Vice chairman of Thai Binh Province's People Committee, Pham Van Ca, said the province held meetings with enterprises and carried out checks to resolve any difficulties.

He added the province supplied information on improving transparency. All issues were submitted to provincial leaders within three days through the "one-door" mechanism.

Hoang Ngoc Giao, deputy head of the Institute for Legal and Development Research, said transparency in the business environment was complicated because it related to several issues of planning, lands and natural resources.

Giao said a model to enhance transparency was being completed. He said it would feature the specific characteristics of every locality.

Bac Lieu to focus on marine economy

Authorities in the Cuu Long (Mekong) Delta province of Bac Lieu consider the marine economy as the driving force behind their socio-economic development strategy.

The strategy, which extends to 2015 and beyond, focuses on developing the Ganh Hao marine economic zone, which will eventually help establish a developed coastal strip and contribute to spurring economic growth for the entire region and the country.

Vo Van Dung, chairman of the provincial People's Committee, said Ganh Hao coastal township had long been well-known not only in Bac Lieu but also across the Cuu Long (Mekong) Delta region.

"However, the potential and advantages offered by Ganh Hao estuary have yet to be properly tapped, thus yielding no socio-economic benefits," he said.

Since the Strategy for Vietnamese Sea until 2020 issued in February 2007, the provincial government has mapped out specific action plans for developing the marine economy.

Chairman Dung applauded the Prime Minister's decision to approve the locality's project to incorporate the Ganh Hao marine economic zone into the national master plan for coastal economic zones by 2020.

"This comes as a big opportunity to enable the province to make a breakthrough in socio-economic development and quickly escape poverty," he said.

The Ganh Hao marine economic zone covers 20,956 ha of Long Dien Dong, Long Dien Tay and Dien Hai communes, as well as Ganh Hao township, of which 17,000ha is natural land and 3,644ha, coastal wetland.

Covering 22km along the coastline, Ganh Hao was envisioned to become an integrated economic zone and the key industrial centre of the province for thermal power, aquaculture processing, shipbuilding and repair and port services.

Tourism and trading complexes, urban development and other marine-related industries have also been planned.

The zone is expected to house an export processing zone, a trading centre, an international exhibition area, an electricity hub and industrial clusters.

Economic experts said that Ganh Hao economic zone could develop into the province's leading and dynamic economic centre by 2030 if it adapted to global economic competition.

The zone would be a centre for aquaculture breeding and processing of international standards and hold high potential for producing large amounts of electric power for the Cuu Long (Mekong) Delta region.

If the provincial GDP growth rate stands at 13 per cent from now to 2020 and 9-10 per cent in the 2021-25 period, and budget revenue rises 11-12 per cent per annum, then the Ganh Hao zone would contribute roughly 50 per cent to the local GDP and attract 30,000 local labourers, according to experts.

To facilitate the construction of Ganh Hao marine economic zone, Dong Hai District Party Secretary Le Hien said the locality was rallying support from grassroots and central levels to develop infrastructure.

Local authorities are concentrating on unravelling administrative hassles and speeding up construction of several key projects, including the administrative metropolis, hospital, resettlement area, Dinh Thanh Bridge, and upgrading and widening the arterial road from Highway 1A to Ganh Hao Township.

Billions of dong would be spent further on developing the local industry, commerce, services and luring investment, while the project to enlarge Ganh Hao fishing port will be finalised soon.

Starting from a low level economically, and located far from large commercial hubs, Bac Lieu is ranked among the poorest provinces in the Cuu Long (Mekong) Delta. The gap between the rich and the poor has widened more dramatically in Bac Lieu than it has in other areas of the country.