France-Vietnam workshop on construction held in Paris

Vietnamese and French construction experts gathered at a workshop on construction of high buildings and underground projects in Paris on Nov. 18 and 19.

Representatives of Vietnamese relevant ministries and agencies also attended the event, which was held by the community of Vietnamese researchers and students in France and the network of Vietnamese scientists and experts in France (RSE).

Besides reports and discussions on experiences and new technologies in the field, the participants also heard about the projects to build the Hanoi Technologies University , the Nhon-Hanoi urban railway line, and the feasibility study of the second metro line in Ho Chi Minh City .

A round-table meeting was held under the framework of the workshop focusing on France-Vietnam cooperation in infrastructural construction in Vietnam , orientation for infrastructure development in Vietnam till 2020 and programmes on training engineers and talents.

Market slump hits securities share offer

Stock market declines have forced securities companies to delay plans to issue shares to raise capital this year.

Among the firms affected are Trang An Securities Co, which in looking to raise its charter capital from 139 billion VND to 300 billion VND (15 million USD); and Vietinbank Securities Co, that plans to raise its capital from 790 billion VND to 900 billion VND (45 million USD).

Le Ho Khoi, general director of Trang An brokerage, said the timing of the company’s share offering would depend on market conditions.

“Companies are likely to fail if they carry out their capital increase plans at this time,” Khoi said, adding that a share offering could only succeed if a strategic partner had been flood.

He said that not only securities companies but also listed firms need to revise the timing of their share issue so as not to flood the market.

“Mobilising capital through the stock exchange is posing a major challenge for most companies at the present time, particularly in the context of tightened credit conditions and high interest rates,” Khoi said.

Vietinbank Securities Co plans to sell more than 11 million shares, worth almost 12.3 percent of its charter capital, to a Japanese strategic partner, but its plan will almost certainly be put on hold until next year due to unfavourable market condiitons.

SME Securities Co, which earlier succeeded in raising its charter capital from 150 billion VND to 300 billion VND (15 million USD), also announced that it would postpone hiking its capital to 500 billion VND (25 million USD).

Competition among securities firms for market share is fierce and small companies are looking to raise capital to boost their financial capacity and expand, a director of a Hanoi-based securities company said.

“However, maintaining business performance is difficult at the current time, as is increasing charter capital,” he said.

Earlir this year, listed companies flooded the market with new shares, with the result that supply now greatly exceeds demand, making investors hesitant to buy stock.

The total number of new shares in the first nine months of this year reached 34.6 trillion, a year-on-year increase of 79 percent, according to the State Securities Commission.

Meanwhile the VN-Index has declined 13 percent since the beginning of the year, while the HNX- Index has plummeted 41 percent, with many shares losing 50-60 percent of their value.

First turbine starts idle run at Son La power plant

The first turbine group of the Son La Hydro-electric Power Plant in the northern province of Son La started its idle run on Nov. 18.

This is an important step before the turbine begins generate electricity by late November, one month ahead of the plan approved by the Prime Minister and two years ahead of the schedule set by the National Assembly.

Construction of the 37 trillion VND hydro-electric power plant started in December 2005. It is designed to have six turbine groups with a combined capacity of 2,400 MW.

Once it swings into full operation in 2012, the Son La power plant will be the largest in Southeast Asia, generating 10.2 billion kWh a year.

Foreign banks boost retail services

Foreign banks are racing to expand retail services by launching more services and subsidiaries as Vietnam approaches the time for opening the door to all banking services.

In line with the country’s WTO commitments, foreign banks operating in Vietnam will be allowed to provide banking services and products on par with local banks from January 1, 2011.

Hong Kong Shanghai Banking Corp (HSBC) inaugurated its fifth subsidiary in Vietnam in late September, while Citibank and Standard Chartered Bank launched their retail banking services in Hanoi in mid-October.

Foreign banks also launched new products and services, with the aim of narrowing market share gaps with local banks that currently account for 90 percent of retail market share.

US giant, Citibank introduced smart banking services aiming at young, high- tech customers and is aiming to provide internet and mobile phone retail banking services.

Standard Chartered Bank, along with seven-day services, plans to link to the local Smartlink’s ATM card alliance system from next January, becoming the first foreign bank in Vietnam to make this connection.

Ashok Sud, Standard Chartered Bank Vietnam General Director, expressed his pleasure with establishing a “fair” market for both local and foreign banks. All products and services his bank wants to provide have received permission, he said.

Although possessing only a moderate retail market share, foreign banks treasure the most wealthy client group, including individuals with monthly income of 10 million VND (about 500 USD) or above.

According to Standard Chartered Bank, Vietnam ’s per capita income is estimated to be 2,000 USD a year by 2015, resulting in an increase in the use of banking services.

But there is a concern among financial experts that in the near future, local bank services such as international payments, trade assistance and project investment could be taken over by foreign banks because of their superior capacity in technology and management as well as financial strength.

Therefore, apart from strengthening and improving management and business capacity, local banks have invested in improved technology, expanding services to the private business and foreign-invested business groups along with state-owned firms.

VN, Cambodia agree to 22m USD rice cooperation

Thai Thinh Co has inked a 22.4 million USD agreement with Cambodian-based Takmoa Agriculture Development Association to cooperate in growing rice for export.

The partners will plant two rice crops per year at an estimated yield of 7 tonnes per hectare, targeting exports of 100,000 tonnes per year, and Thai Thinh will provide technical assistances in rice cultivation and processing to the Cambodian association.

The partners will also build an irrigation system and a rice processing facility with an estimated output capacity of 500 tonnes per day.

Garment, footwear firms to receive honours

Eighty-four outstanding enterprises in the textile and garment, and leather and footwear sectors will receive awards in Hanoi on Nov.18 at a ceremony to be attended by Deputy Prime Minister Truong Vinh Trong.

The awards ceremony will be jointly held by the Sai Gon Times, the Vietnam Textile and Garment Association (VITAS) and the Vietnam Leather and Footwear Association (LEFASO).

Recipient organisations include 64 textile and garment businesses, and 20 from the leather and footwear sector. The event represents the 7th awards ceremony for textile and garment sector and the second for the leather and footwear industry.

Top prizes for comprehensively outstanding enterprises will be given to 15 garment and textile, and five leather and footwear companies.

Leading the pack in the garment industry is Viet Tien Garment Joint Stock Co, while the top position among textile companies is Viet Thang Textile Corporation. Thai Binh Investment and Footwear Production Corporation leads the leather and footwear sector.

Viet Tien Co has held on to the top position for the past seven years. It is expected to reach 120 billion VND (6 million USD) in revenues this year with profit set to account for 44 percent.

"To gain the leading position, Viet Tien has made bold investment in equipment, technology and human resources to raise product quality as well as develop our trademark, boost advertising and remodel after-sales services to customers," said Phan Van Kiet, the company's deputy director general.

His firm started exporting its products with the Viet Tien trademark to Cambodia last year. This year it has brought its brand name to Laos and will enter the Myanmar market in December. Singapore , Malaysia and China would follow next year, he said.

Viet Tien has exported products (with trademarks of other well-known global companies) to more than 100 customers in over 50 countries.

New in the event this year is the organisers' decision to award eight workshops and four vocational schools in the garment and textile sector, rather than limiting the prize to companies only, said Le Quoc An, chairman of VITAS, at a press conference in Hanoi on Nov. 17.

"Organisers want to emphasise the significant role of three factors in each firm: good product quality, productivity and good relations between employees and employers," said An.

The award has been organised annually but a recent decision by the Prime Minister indicates that future awards will be held every 3 – 5 years. The 8th instalment is scheduled to take place in 2013.

In the first 10 months of this year, the textile and garment sector – the country's largest foreign currency earner – notched up a 9.2 billion USD export turnover.

"It is completely possible for the industry to hit over 11 billion USD export value by the end of the year," said An.

Vo Thi Tong, deputy chair-woman of LEFASO, said the leather and footwear industry earned 4.06 billion USD in the first 10 months and could reach more than 5 billion USD for the whole year. For the first time, it has surpassed the oil and gas industry to become the country's second foreign currency earner.

"Combining the export revenue of the two sectors, the figure could reach 16 billion USD by the end of this year, accounting for one-fourth of the nation's total export value and generating more than three million jobs," An said.

The Government has set an export turnover for textile and garments of 18 billion USD by 2015, but VITAS plans to raise the target to 20 billion USD.

Source: VNA