HCM City sees sharp rise in industrial production

Ho Chi Minh City recorded an industrial production value of over 167.58 trillion VND in the first ten months of 2010, a year-on-year increase of 14 percent.

The growth rate is considered robust as compared to 7.2 percent recorded in the same period last year.

Of the total, the domestic sector contributed 107.56 trillion VND or 64 percent, and the foreign-invested sector made of 36 percent.

In October alone, the industrial production value was 19.18 trillion VND, up 14.8 percent over the same month in 2009.

The most impressive growth was seen in the manufacturing of electric machines and equipment, with 34.6 percent.

However, sharp drops were seen in coal mining – at 33.5 percent, and office equipment and transport facilities manufacturing – at 13 percent.

Agro-forestry-seafood exports rise sharply

The country earned 1.72 billion USD from agro-forestry and seafood exports in October, raising its total export turnover in the first ten months of this year to 15.6 billion USD, a year-on-year increase of nearly 23 percent, according to the Ministry of Agriculture and Rural Development.

Of this, agricultural products made 7.89 billion USD, up 18 percent.

Rice continued as Vietnam ’s main export with 5.66 million tonnes shipped overseas for 2.63 billion USD, double last year’s amount. The Philippines remains Vietnam ’s main destination for rice exports, contributing up to 38 percent of all total earnings.

Coffee ranked second with 973,000 tonnes and a value of 1.4 billion USD, a 1.6 percent increase in volume, but a 0.71 percent drop in value.

Rubber exports rose by nearly 7.7 percent in volume but saw a 92 percent growth in value compared to the same period last year. In the first ten months, Vietnam exported 603,000 tonnes of rubber, earning 1.67 billion USD. China was Vietnam ’s biggest importer of rubber, making up nearly 59 percent of the country’s total export value.

The country also exported 113,000 tones of tea for 162 million USD, a rise of nearly 11 percent year-on-year. Pakistan was the largest importer of Vietnamese tea, followed by Taiwan and Russia .

Vietnam is now the world’s fifth largest tea producer and exports to 110 different countries and territories.

The country remains the leading global cashew nut exporter as the country exported 160,000 tonnes, worth 888 million USD. This is up by over 9 percent in volume and nearly 30 percent in value. Vietnamese cashew nuts were shipped to 50 countries and territories worldwide with the US , China and European countries being the largest customers.

Pepper dropped by 10 percent in volume but the export value rose by nearly 22 percent over last year with 106,000 tonnes making 359 million USD. The US remains Vietnam ’s largest market.

Forestry and wooden products recorded an export turnover of 2.9 billion USD of which timber earned 2.73 billion USD, a year-on-year of 35 percent.

Seafood continued to hold its position in particular markets despite natural disasters and anti-dumping lawsuits. The country earned 3.98 billion USD with the US making up nearly 19 percent and Japan , 18 percent.

In the reviewed period, Vietnam imported 10.4 billion USD worth of materials for agricultural production, up 39 percent year-on-year. However, the agricultural sector still recorded a trade surplus of 5 billion USD.

Penny stock rally sustains sluggish market

A rally in penny stocks lifted the VN-Index for a third straight day on Oct.25, with the index closing up 0.76 percent to 448.61 points, even in the face of bad news about the nation's inflation rate.

Significant capital began to flow toward penny stocks at mid-session on the HCM City Stock Exchange, causing nearly 30 stocks to hit their ceiling prices, including Ca Mau Trading (CMV), OPC Pharmaceutical (OPC), and Nari Hamico Mineral (KSS).

A few blue chips managed gains as well, including Eximbank (EIB) and real estate developers Hoa Phat Group (HPG), Masan Group (MSN) and Vincom (VIC).

Sacombank (STB), the most-active share with 1.1 million traded, closed down by 0.65 percent. About 28.2 million shares were traded during the session overall, for a net value on the day of 731 billion (37.5 million USD).

Tong Minh Tuan, head of analysis at BIDV Securities Co, said that recent patterns on the stock exchanges reflected a reaction to inflationary trends, even before official data had been released.

Foreign investors took advantage of the modest market rally to become net sellers of over 500,000 shares, worth a net of 2.3 billion VND (117,948 USD).

However, on the Hanoi Stock Exchange, they picked up a net of 125,300 shares, worth a combined 2.7 billion VND.

On the Hanoi market, the HNX-Index gained 0.4 percent to close at 111.77 points. Volume remained sluggish at just 20.7 million shares, for a value of only 400.3 billion VND (20.5 million USD).

The northern market saw 15 penny stocks climb to their ceiling prices, including Phu Thinh-Nha Be Garment (NPS), which spiked 6.96 percent on the day, Hung Yen Educational Book and Equipment (HST), up 6.94 percent, and SME Securities Co (SME), up 6.87 percent.

VN builds first steel pipe factory

Ground was broken at the country's first petroleum steel pipe plant on Oct.25 in Tien Giang southern province's Soai Rap Petroleum Service Industrial Zone.

Besides reducing the country's imports, the 2.2 trillion VND (112 million USD) plant is also expected to contribute to the development of other industrial sectors including mining, processing, metallurgy, engineering, transport and construction.

Nguyen Van Phong, vice chairman of the Tien Giang People's Committee, said that he also expects the plant would help the province attract other projects to the Soai Rap Petroleum Service Industrial Zone.

The plant, which will cover an area of nearly 39.5ha and use Swiss technology, will have an output volume of 100,000 tonnes of steel pipes per year.

According to the plant's investors, PetroVietnam Pipe Manufacturing Joint Stock Company, the plant will supply its products to key projects such as Nam Con Son 2 and the Lot B O Mon gas pipe along with other gas pipes in the country when the first stage of the plant is completed in the fourth quarter of next year.

Japan's Mitsubishi to help VN reduce energy consumption

Mitsubishi Corp. will conduct a feasibility study to help Vietnam cut energy consumption through the use of energy-saving home appliances, a local report said.

In cooperation with five electric appliance makers, including Panasonic Corp. and Sharp Corp., Mitsubishi will verify how much carbon dioxide and other greenhouse gas emissions can be reduced between now through the end of March 2011, the Yomiuri daily reported, adding that the project aims to suppress growth in the country's energy consumption by promoting the use of products from Japan, including energy-efficient air conditioners, refrigerators and light bulbs.

The Japanese Ministry of Economy, Trade and Industry (METI), which is supporting projects that help Japanese companies to count their reductions of greenhouse gas emissions in emerging economies, designated Mitsubishi's plan as one of the 15 greenhouse reduction projects last week.

Among other METI-designated projects include a Tokyo Electric Power Co. (TEPCO) proposal, under which the company will examine how much greenhouse gas emissions can be reduced if it wins a contract associated with a nuclear power station in Vietnam.

According to the daily, electricity shortages have become a serious problem in Vietnam as rapid industrialisation has seen demand for power increase by about 16 percent per year.

Vietnam’s export turnover reaches $67.3 billion in ten months

Vietnam’s export turnover is estimated to reach US$6.25 billion in October, bringing the total export turnover in the past ten months to $67,278 million, up to 23.3 percent against the same period last year, according to the General Statistics Office (GSO).

Meanwhile, import turnover climbed to $67.28 billion or 20.7 per cent year-on-year increase.

Of total turnover, businesses with foreign direct investment represented $31.4 billion, up over 25.8 per cent against the same period in 2009.

The remainder was accounted for by domestic businesses with $26.77 billion, up 20.4 per cent.

Exports items with high growth included rubber (up 94.4 per cent to $1.68 billion), cashew nuts (by 29 per cent to $900 million), rice (by 5.7 million tonnes to $2.66 billion) and textiles and garments which soared 22.31 per cent to $9.11 billion, with electrical wire and cables up 60 per cent to $1.68 billion.

Coal export totalled over 15.55 million tonnes and $1.26 billion or 22.1 per cent down in volume, with crude oil hitting 6.69 million tonnes to $4.4 billion or a 44.3 per cent decrease in volume.

Imported commodities were mainly raw materials for local production including rubber, up 57.5 per cent ($500 million); cotton 24.7 per cent ($554 million); and animal feed increasing 20.54 per cent ($1.8 billion).

However, imports of petrol declined 25.5 per cent in volume and 3.2 per cent in turnover and automobile and motorbike imports also decreased by 28.4 per cent and 14.7 per cent in volume respectively.

Source: SGGP, VNA