First 4 Japanese projects of the year licenced in Da Nang

Four projects from Japanese companies Oishi, Amagasaki Seikan, Inoue Ribbon and Fukui Denka Koygo were licenced by the Da Nang City Municipal People’s Committee on January 18.

These projects are located in an area of 5ha in Hoa Khanh Industrial Zone (IZ) with a total initial capital of US$15 million. 

They all belong to Morito Group involved in producing and supplying garment parts to famous fashion companies such as Adidas, Nike and Gucci.

Since early 2011, Da Nang has seen 55 Japanese companies operating in 6 IZs with an estimated capitalization of US$300 million and creating over 15,000 jobs for workers.

Vietnam to import 100,000 tones of meat in 2011

Vietnam will consume around 2.9 million tonnes of meat in 2011, 6.5-7 percent more than the previous year, says the Export-Import Department under the Ministry of Industry and Trade (MoIT).

To meet the domestic needs for all kinds of meet in 2011, the MoIT will have to import between 90,000-100,000 tonnes.

The Export-Import Department has attributed the big import volume to the negative impacts of natural disasters and epidemics on the domestic output of cattle and poultry products in 2010.

The outbreak of blue-ear pig disease in the third quarter in 2010 especially reduced the numbers of pigs in many localities, which greatly affected the domestic supply.

In addition, flash floods in central provinces also damaged animal husbandry operations.

According to market experts, the price of pork and products processed from pork is likely to increase. As the domestic supply is fully prepared, there will no strong increases in price and speculation in order to drive the price up.

Labour exports look up for 2011

Despite missing the mark last year, Vietnam’s labour exports are expected to rise in 2011.

Dao Cong Hai, deputy director of the Ministry of Labour, Invalids and Social Affairs' (MoLISA) Department of Overseas Labour, said that the shortcomings of 2010 could actually be a driving force for heightened labour exports in 2011.

Hai’s assessment is that the country’s labour exports are quite strong, as more and more foreign firms prefer Vietnamese workers. The Malaysian market is warming up, and shows increasing demand for Vietnamese labourers who come from poorer districts.

Vietnamese manual workers are also finding more opportunities in places like Lybia and the United Arab Emirates (UAE), where they can earn monthly salaries of between VND5 million and VND7 million ($250 - $350). Last year these markets attracted over 5,000 Vietnamese labourers, while over 3,000 went to Macau.

South Korea also brings a lot of Vietnamese labourers, where they can earn a monthly income of VND17 million ($850). There, workers are finding jobs in construction, fisheries, agriculture and manufacturing so more men are attracted to this market. Women are more likely to find work in Taiwan or Malaysia, where there is a need in housekeeping and light manufacturing.

This year, Vietnam has set a target of sending 87,000 workers abroad. In order to meet this goal, extra labour training will be provided at 170 facilities nationwide. The department will also speed up a plan to build a vocational training centre in the central province of Thanh Hoa with the funding from the UAE.

Last year, Vietnam failed to meet its goal of sending 85,000 workers abroad, due to the effects of the global economic downturn, which had an adverse affect on demand for labour.

Easing up customs procedures

Changes to customs procedures from January 20 are expected to spur import-export activities for Vietnam.

The Ministry of Finance’s Circular 194/2010/TT-BTC – dated December 6, 2010 which provides guidance on customs procedures, customs check and supervision and import and export tax management, will be effective from January 20.

The circular is expected to address a number of impediments regarding customs and significantly boost import-exports, according to deputy head of the General Department of Customs Hoang Viet Cuong.

Under new regulations, from January 20 businesses are only required to hand in export contracts when exporting taxable products and products of specific economic sectors while formerly export businesses were all required to do so.

The customs authorities also present bases to verify whether products were in fact exported but not regulate procedures to verify the authenticity of export shipments.

“Formerly, it took three to four days to procure the bill of lading for each export shipment. After that, businesses need to go back and forth to procure papers verifying that their products were already exported; it was quite time-consuming. Enforcement of Circular 194 would significantly bolster exports,” said director of Viet Han Company Limited Do Van Han.

The circular is also expected to simplify a lot of procedures towards import and export products for businesses in export processing zones (EPZs). Accordingly, businesses inside and outside EPZs are eligible to make customs procedures as applied to products exported from EPZs for use in the domestic market.

Besides, transactions between EPZ-based businesses not located in the same EPZ also abide to customs procedures applied to products exported from EPZs for use in the domestic market.

In respect to temporary import/ re-export activities, the Circular 194 requires the customs declarers to confirm the validity of temporary import/ re-export equipment, making it easier for supervision purposes.

Besides, in order to limit trade deficit, the new circular bans consumer goods which have been kept in bonded warehouses from circulating into the domestic market.

The Circular 194 also encompasses new tax regulations. Accordingly, local governments have the right to select capable organisations to handle tax exempted-goods registration (previously the activities were handled by the local customs departments).

Besides, export items entirely made by using imported materials will be exempted from paying export duty. If both imported and local materials are used in export production, the export duty will be imposed on materials of local origin.

Also from January 20, 2011 EPZ businesses will not be required to show up documents indicating that products were already used in non-tariff areas or exported when making tax refund procedures as previously.

FPT tots up 2010 profits

Distribution and hi-tech production was still the main revenue source for the country’s leading information and communication technology group, FPT Corporation, in 2010.

The 2010 financial report from FPT released on January 20 reads that among its five core businesses, revenue from distribution and hi-tech production sector accounted for the biggest part – or 65 per cent of the total corporation’s revenue in 2010, valued at VND13.3 trillion ($667 million).

FPT’s total revenue for 2010 was VND20.5 trillion ($1.0 billion), a year-on-year increase of 9.5 per cent against the figure in 2009.

The FPT Integrated System, software solution and informatics services followed with revenue of VND3.2 trillion ($162.5 million), accounting for 15 per cent of the total.

The telecom sector followed, making up 11 per cent, while software exports mustered 4.8 per cent and education 1.3 per cent.

However, FPT’s distribution and hi-tech production’s pre-tax profit was ranked third in profit making sectors of the corporation. The telecom sector made the largest pre-tax profit of VND601 billion ($30 million); the integrated systems, software solution and informatics services followed with a pre-tax profit of VND484 billion ($24.2 million). The distribution and hi-tech production followed with VND411 billion ($20.5 million).

The corporation plans to earn revenue of VND24.5 trillion ($1.22 billion) this year, posting a year-on-year increase of 20 per cent. The company is also predicting a pre-tax profit of VND2.4 trillion ($120 million), a year-on-year increase of 20 per cent.

Local firm opens fiber plant in Tay Ninh

HCMC-based Century Synthetic Fiber Corporation on Tuesday opened a fiber plant in Trang Bang Industrial Park in the southern province of Tay Ninh to increase its fiber production for export and the local market.

Dang Trieu Hoa, chairman and CEO of the company, told the opening ceremony that the US$19.5-million plant was equipped with the closed production chain of Draw Textured Yarn (DTY) from polyester chips with an output of 11,000 tons per year, taking the company’s total capacity to 25,000 tons per year.

Being equipped with advanced machines imported from Germany’s Oerlikon Barmag Group, fiber products from the new factory will meet customers’ demands at home and abroad, according to the corporation.

The company’s customers include Thanh Cong Textile and Garment Investment Trading Co., Thai Tuan Textile and Garment, and major foreign brand producers in Vietnam like Nike, adidas, Columbia, Ikea, Reebok, Guess, Decathlon. Its products will also be shipped to overseas markets such as Turkey, Switzerland, Taiwan, South Korea, and Thailand, the company said.

According to the corporation, the demand for DTY at home and abroad is rising quickly. Therefore, the company will invest in the second phase of the new plant this year, with a budget of US$12.2 million and an annual output of 10,000 tons per year, Hoa said, adding the phase will be put to operation next year.

Century Corp. currently also operates a plant in HCMC’s Tay Bac Cu Chi Industrial Park producing micro filament draw textured yarn fiber from partially oriented yarn. Given the new plant in Tay Ninh with total capacity of some 25,000 tons a year, the company will have a combined output of 35,000 tons in 2012.

Current output of Century Corp. accounts for 15% of national DTY production estimated at nearly 166,000 tons last year.

The corporation obtained revenues of some VND500 billion last year and it targets to double the figure this year after opening the new factory.

Century Corp. was founded in 2000 as a producer of polyester filament products. The company at a meeting in HCMC last year got approval from shareholders to list on the Hochiminh Stock Exchange, and it is considering a suitable time to trade shares on the market this year.

Tan Cang - Cai Mep opens second-phase facilities

The Tan Cang - Cai Mep Deepwater Terminal Area in Ba Ria-Vung Tau Province inaugurated the second phase on Saturday, said Tan Cang-Cai Mep International Terminal Joint-stock Co. as the operator of this phase.

The second phase, marking the completion of the entire project, is comprised of a container yard covering 40 hectares and a berth section extending 590 meters.

In the first phase that was completed and put to service in June 2009 by another operator, facilities include a berth section of 300 meters and a container yard of 20 hectares.

The operator of the second-phase facilities, which is a joint venture between Saigon Newport Corp. and three shipping lines of Mitsui OSK Line from Japan, Hanjin from Korea, and Wanhai from Taiwan, also welcomed the maiden call of The New World Alliance’s direct service that links up the container terminal to their Eastern Asia-North Europe sea route coded JEX.

Akira Kurita, general director of the operator, said Cai Mep was the sixteenth port of this sea route operated by The New World Alliance.

This 21-day direct service that uses the deepwater port of Cai Mep will help both importers and exporters in Vietnam to cut costs of transshipment in Singapore, he added.

The entire terminal, with the berth now stretching a total 890 meters and container yard covering a combined 60 hectares, has a designed throughput of 1.8 million TEUs or 25.3 million tons of cargo per year.

It is also equipped with modern facilities and equipment for its cargo handling. These include six ship-to-shore gantries, 20 rubber-tyred gantries, 30 container trucks and 600 sockets for fridge containers.

Saigon Newport Corp. said the container terminal is now the most advanced and fully-done deepwater terminal in Vietnam.

Southern companies want pig breeder association

Pig breeding enterprises in the southern region say they want to club together under the form of an association to help them deal with the recent increases in animal feed prices in Vietnam.

“With the association, we can at least run a feed price stabilization fund following the Government’s 116/20090QD-TTg decision to help breeders,” said Chung Kim, director of Kim Long Breeding and Animal Feed Co in Binh Duong Province.

Material feed prices might keep rising on the world market this year due to bad weather conditions and local enterprises stand to lose out as feed prices in the country will certainly move up, Kim said. The price uptrend is aggravated by the several layers of intermediary business, he said.

Local enterprises each year spend around US$1 billion on animal feed material import and then sell to feed processing plants and breeders. The indirect supply is a main factor causing feed prices to soar.

The association would help reduce input costs by importing materials to deliver to farms, Kim explained.

Nguyen Tri Cong, director of Cong Tri Co. Ltd. in Dong Nai Province, said individual pig farms cannot seek Government support when diseases break out. Meanwhile, other enterprises can access assistance from State management agencies through industry associations.

Many farms recently were confused about what vaccines to buy when the blue-ear pig disease occurred. That confusion could have been averted if there were an association, Cong said.

Local enterprises initiated the idea of an association in late 2009 to benefit both large farms, individual breeders and consumers, Kim added.

Market rises for fifth straight day

The local market advanced albeit slightly for the fifth consecutive session on Tuesday given strong appetite for many large caps, with the VN-Index adding 2.27 points, or 0.46%, against the previous day to close at 497.43.

Liquidity dropped slightly as 40.8 million shares worth VND1 trillion were traded at the end of the day, down 6.7% and 2% from the session earlier respectively. Bids on the southern bourse rose a mere 1.1% to 77.8 million shares while offers were almost unchanged from the previous session at 76 million shares.

The market once again was very strong to begin with and pushed up quickly to reach the daily high of 501.28 at the beginning of the second matching phase before running into some selling pressure. It subsequently retreated in two stages before finally closing only a couple of points above Monday’s closing levels.

Losers outnumbered gainers despite the rising session, with 66 stocks moving up and 158 others falling. Of them, 15 stocks hit the ceiling prices and 11 stocks plunged to the floor prices.

Nari Hamico Minerals Co. (KSS) took the lead for liquidity for the first time, surging 4.9% from the previous day to VND29,900 per share on the volume of 2.2 million shares. Saigon Securities Inc. (SSI) was the second biggest traded stock but it lost 1.6% to VND29,900 with 1.6 million shares changing hands.

Foreign net buying was sharply higher on Tuesday as the investors bought 4.5 million shares worth VND158 billion and offloaded 1.6 million shares worth VND61 billion, making up 14.7% and 5.7% of the market’s buying and selling value respectively.

The Hanoi market, meanwhile, retreated after four rising sessions in a row while liquidity also declined to VND557 billion. The HNX-Index lost 1.56 points, or 1.43%, against the previous day to 107.46.

There were 59 stocks rising while 236 stocks posting losses, of which five stocks went to the ceiling prices and eight stocks plunged to the floor prices. Foreigners were strong net buyers and accounted for 2.7% and 0.9% of the market’s buying and selling value respectively.

Vietnam International Securities Co. (VIS) said the market enjoyed another rising day and liquidity remained high. However, a large number of stocks did not go in line with the uptrend and large caps like BVH and MSN continued to dominate the market on Tuesday. The Hanoi market ended its rising streak as it had no supports from some large caps like on the southern bourse.

“Capital flow for the market seems to slow down as individuals like to hold cash at the end of the (lunar) year while corporate investors need money for salaries, bonuses and business before Tet. Therefore, investors should be cautious as it is rather risky to buy stocks at high prices now. We think the market may move in a narrow range on Thursday,” VIS said.

Ho Tram Strip owner appoints engineering consultant

Asian Coast Development (Canada) Limited (ACDL) on Tuesday announced its appointment of Meinhardt Vietnam Ltd. as the engineering and site supervision consultant for phase 1 of Ho Tram Strip Project – the MGM Grand Ho Tram Resort.

Lloyd Nathan, chief executive officer of ACDL, said in a statement that the Meinhardt Group had global credentials and local expertise. “Meinhardt has provided engineering services for large scale integrated resorts in Singapore, Macau and the Philippines and has been involved in some of the leading real estate and infrastructure projects around the world.”

ACDL said it had involved with Meinhardt’s Vietnam team for two years, and the latter had worked on more than 200 developments in Vietnam, including the Westin Cam Ranh and the Laguna Hue. The company has also engaged with engineering, project and construction management for sites of the Kumho Asiana Plaza and An Dong Plaza in HCMC.

On the global front, Meinhardt has been known as a major engineering, planning and management consultancy firm with 33 offices in Australia, America, the Middle East, Europe and other parts The 3,000-staff group undertakes projects worth some US$10 billion annually.

Dat Chau, general director of Meinhardt Vietnam, said being appointed to work on the MGM Grand Ho Tram Project was an iconic win for Meinhardt as it brought together the group’s diverse expertise and project experience from Singapore, Hong Kong, Australia and Vietnam offices.

In late 2010, ACDL named global consulting service company Rider Levett Bucknall as quantity surveying and co-project management partner for the first phase of the US$4.2-billion Ho Tram Strip project in the southern province of Ba Ria-Vung Tau.

The MGM Grand Ho Tram is scheduled for opening in the first quarter of 2013, with a five star hotel of 541 rooms in the initial time and 1,100 rooms later, a 13,600-square-meter entertainment area, retail, restaurants, bars, lounges, shows, conference and meeting areas, a golf course, and other leisure amenities.

PV