Hi-tech rubber plant inaugurated in HCMC 

The Saigon Industry Corporation inaugurated their hi-tech rubber production plant and two plastic production plants in Cu Chi District of Ho Chi Minh City on Saturday.  

The inauguration ceremony of the three plants was attended by deputy Minister of Industry and Trade Nguyen Thanh Bien, the HCM city People’s Committee chairman Le Hoang Quan and the city Party Committee Secretary Le Thanh Hai.

The three plants, namely Hi-tech Rubber Accessories Production, Do Thanh Plastic Production and Plastic uPVC Pile Production Plant, are expected to ensure regular employment for 600 workers with an average monthly income of VND4 million.

The Hi-tech Rubber Accessories Production Plant has been built using high technology equipment on a total area of 60,000 square meters at a cost of VND230 billion (US$11million). It is expected that the plant will produce 150 million plastic products annually.

According to Nguyen Trung Tin, People’s Committee vice chairman, the opening of the Hi-tech Rubber Accessories Production Plant is a significant landmark in this industry and for the development of the country.

Do Thanh Plastic Production Plant has a total capital of VND80 billion (US$4 million) which includes three factories, a housing area and a refectory for workers. The plant has capacity to produce 4,000 tons of plastic bags per year, using pressure technology and the PET plastic blow molding technology.

Whereas the Plastic uPVC Pile Production Plant, with a total investment capital of nearly VND300 billion (US$14 million), will produce the plastic piles to cope with landslide and erosion in the city and the Mekong Delta.

Stating at the ceremony, Mr. Tin appreciated the great effort made by the Saigon Industry Corporation in building the plants.

On the occasion, the city chairman Le Hoang Quan presented to the corporation the third category Independent Medal. The corporation’s general director Nguyen Van Tho and former chairman Phan Van Thanh were awarded the second and the third category Labor Medals.

Imports of consumer goods rise

Imports of consumer goods totalled US$580 million in January and accounted for 7.3 per cent of the country's total import value, according to the General Department of Customs.

Imports of automobiles, mobile phones, electric facilities and food accounted for more than 51 per cent of the total import value of consumer goods in January.

Imports of poultry eggs, animal fat and vegetable oil have raised new concerns because Viet Nam has seldom imported these products previously as they were produced locally, according to an official from the Ministry of Finance.

Last year, the country imported $530 million of milk, poultry eggs and products made from milk and meat.

Of the four countries that lead in exporting consumer goods to Viet Nam, China tops the list, followed by Thailand, Malaysia and South Korea.

Last year, Viet Nam imported $1.85 billion of consumer goods from China.

The import value of consumer goods from China has risen 54 per cent over a three-year period.

Consumer goods imported from China are mostly mobile phones, compact discs and DVDs, electrical household appliances, flowers, fruits and vegetables.

Last year, Viet Nam imported $82 million of fruit and $69 million of vegetables from China.

In a recent report to the Government, the Custom General Department has asked the Government to improve inspections of safety and hygiene of imported agricultural products and garments, and to strictly control goods smuggling in the northern border provinces.

Building materials sector booms

Viet Nam's building materials industry has experienced rapid growth in recent years, turning it into one of the country's best-performing manufacturing sectors, according to a report by The Kearny Alliance, an American non-governmental organisation.

Primarily known for its cottage industries like handicrafts, garments and furniture, Viet Nam's building materials industry has positioned itself to become more involved in heavy industries.

While the global economic turmoil led to a severe slowdown in the construction supply segment among key markets in developed countries, the opposite has been true in developing economies, the report said.

Burgeoning demand from local and foreign buyers, particularly from the Middle East, South Asia and Southeast Asia, encouraged the industry to expand by roughly 15 per cent last year.

Building material exports are expected to increase by as much as 30 per cent over last year, experts and industry insiders have said.

The sector has a local abundance of raw materials, particularly those used for tiles, bricks and floorings.

There are more than 2,000 stone and mineral quarries with estimated reserves of at least 100 million tonnes.

Extensive design capability is the sector's other major strength since Viet Nam has many craft villages composed chiefly of artisans.

These workers are trained in various carving and detailing techniques that are typically used on wooden items, including doors, windows and flooring.

Product suppliers can readily offer models that are created in-house.

In addition, they can recommend modern styles that incorporate traditional motifs to customers.

The Asia Pacific region is the most vital export destination of the industry.

Among the companies featured in the report, the Asia Pacific region accounts for over half of overseas revenue. Major markets include South Korea, Thailand and Malaysia.

The Middle East has, however, become a significant export destination for local suppliers due to a recent construction boom.

Among the manufacturers interviewed in the report, exports to the Middle East region accounted for 13 per cent last year and were expected to double by the end of this year.

Key markets in the Middle East include Iraq, Israel, Iran, Turkey and the United Arab Emirates (UAE).

According to a survey conducted in the report, most local exporters of building materials are gearing up for robust sales growth this year as overseas demand picks up.

Vu Ngoc Khiem, programme manager of the Kearny Alliance, said the country's building materials suppliers were confident of seeing export sales surge by at least 10 per cent for the next 12 months.

To lure more buyers, 71 per cent of makers plan to maintain export prices for the next six months, the survey said.

About 25 per cent of suppliers who plan to raise prices will keep increases to within 5 per cent over the next 12-month period.

The country's abundance of raw material has allowed local exporters to offer more competitive prices, especially compared with rising costs in China, Khiem said.

About 40 per cent of suppliers will produce more decorative designs, with others relying on eco-friendly materials.

Total annual export sales of featured suppliers reached more than US$66 million last year, Khiem said.

They currently employ over 8,000 full-time workers, creating more jobs for the local community.

Tiles and bricks account for half of the total output, while flooring takes up 30 per cent.

The Viet Nam Sourcing Report: Building Materials, issued by the Kearny Alliance, covers profiles of 35 manufacturers, plus descriptions, prices and packaging details for 98 best-selling export products.

These products include tiles, bricks, doors, windows, paneling, framework, flooring and roofing.

Seminar on Japanese construction technology

A technical seminar on the latest technology from Japan which uses steel pipe piles and steel sheet piles in construction projects, kicked off yesterday in Ha Noi.

The seminar was co-organised by the Ministry of Transport (MoT) and J-Spiral Steel Pipe Co Ltd.

Nguyen Van Hich, deputy head of the Science and Technology Department under the MoT, told the seminar that the country's infrastructure was being developed to boost the nation's economic growth. He said the country was open to new technology that might aid the development.

"The country is building more bridges, ports and harbours. The structure's design must be congruent with the country's unique geological make up," said Hich. "Technology using steel pipe piles may be suitable with Viet Nam's complex geological make up."

At the seminar, Professor Osamu Kiyomiya from Waseda University introduced the new technology and explained how it could be used to build ports and harbours.

Kiyomiya said Japan used 0.63 million tonnes of steel piles per year and the technology was used primarily to build bridges, foundations, ports and harbours.

Viet Nam used about 0.3 million tonnes of steel piles per year. Steel pipe pile plants were being built in Viet Nam and the material would be used to build ports, railways and other major infrastructure projects, Kiyomiya said.

He said steel piles were used to build Tokyo's International Offshore Airport and the Tokyo Port Bay Bridge. The material is earthquake resistant, reduces construction time and have advanced anticorrison technology.

On the same day, J-Siral Steel Pipe Co Ltd, a joint venture established by three Japanese companies - JFE Steel Corp, Maruichi Steel Tube Ltd and Toyota Tsusho Corp, was introduced.

The Dong Nai-based company, previously known as Jeong An Vina Co Ltd - a Vietnamese spiral steel pipe manufacturer that produces 50,000 tonnes of steel annually, was acquired for about 18 billion won (US$16.16 million, 1.3 billion yen) from Korean Jeong An Steel Co Ltd.

The company, capitalised at $3.1 million, will manufacture high-quality steel pipe piles, steel pipe sheet piles and water pipes. The company hopes to utilise the strong demand for steel pipe in Viet Nam's construction steel market.

Vietnam's industrial sector keeps growing

Vietnam's industrial production value in January reached VND73.7 trillion (US$3.52 billion), rising 16.1 percent against the same period last year.

Of which, state-owned sector saw a growth of 6.7 percent, private-owned sector surged 18.9 percent and foreign- invested sector soared 18.5 percent, according to the General Statistic Office (GSO).

Some important industries posted high growth including liquefied petroleum gas (36.2 percent), footwear (35.1 percent), ceramic tiles (32.5 percent), tire for automobile and tractor (26.8 percent), glass (20.7 percent), cement (18.9 percent) and textile fiber (17.2 percent).

In addition, some products reported high growth in comparison with last January including rolled steel (15.9 percent), powder milk (15.4 percent), electricity production (14.3 percent), motor (13.5 percent) and adult clothing (12.4 percent).

Also in January, the consumption index of processing and manufacturing sectors continued to increase, of which, some products posted high consumption index such as powder milk (136.9 percent), fresh milk (68 percent), air conditioner (65.5 percent), steel sheet (55.3 percent), paint used in construction sector (49.4 percent), laundry soap (36 percent), footwear (26.9 percent), instant coffee (23.6 percent), fizzy drinks (22 percent) and canned beer (14.2 percent).

Vietnam's total retail sales and services reached VND150 trillion ($7.2 billion) in January, up 22.1 percent against last January, according to the GSO.

Among the earnings, trade reached VND118.3 trillion (up 23.1 percent), hotel and restaurant reached VND16.4 trillion (up 17.6 percent), services at VND13.6 trillion (up 19.6 percent) and tourism at VND1.5 trillion (up 14.5 percent).

Vincom opened real estate floor in Hanoi

Local property developer Vincom Joint-Stock Co., Vincom has launched a real estate trading centre The centre, locating on the fourth floor of Vincom City Towers, will provide customers with brokerage and consultancy services.

Beside the projects developed by familiar trademarks Vincom and Vinpearl, the centre includes portfolios for projects developed by other companies. The centre will also help in sourcing project capital.

At the opening ceremony, Vincom director Le Khac Hiep said the centre would contribute to improving transparency in the company's property trading section, as well benefit the company's business performance in the future.

Work starts on PVC pile factory

Saigon Industry Corporation (CNS) has started work on a factory producing plastic piles for landslide prevention works.

The facility in Tan Thanh Dong Ward of HCMC’s Cu Chi District will cost about VND300 billion (US$14.3) million and be up and running six months later.

The city has seen landslides along the city’s riverbanks rising in recent years.

The company has got approval from the city government for mass production of PVC piles after tests showed such piles could be effectively used to prevent land from sliding along riverbanks in districts 9 and 12.

The same day the firm also commissioned two other factories producing high-tech rubber products and plastic products in Cu Chi District.

The two newly-built plants cost nearly VND300 billion.

CNS which started operation in 2006 is a diversified enterprise with key products including Craven A cigarettes, mechanical products, computers, chemicals and others.

The corporation will implement a $190 million project this year to build an integrated circuits factory with average output of some 300 million units a year.

Toyota Tsusho may get Vietnam mining rights in mid 2011: Nikkei

Toyota Tsusho Corp is likely to secure mining rights for a rare-earth metals project in Vietnam around mid 2011, The Nikkei said citing the company's President Junzo Shimizu.

Toyota Tsusho, a trading house affiliated with Toyota Motor Corp, and project partner Sojitz Corp have been preparing to start rare-earth operations in Vietnam since they got the go-ahead at a late-October summit between the Japanese and Vietnamese prime ministers, the daily said.

However, due to drawn-out Vietnamese proceedings, they are yet to get mining rights needed to kick off the project, the paper said.

After the approval processes, Toyota Tsusho and Sojitz will build a plant for extracting and refining rare earths, The Nikkei added.

Electricity market lacks IT systems

A competitive electricity market needs a co-ordinated system of information technology in order to operate reliably and transparently, said Deputy Minister of Industry and Trade Hoang Quoc Vuong at a seminar held on Thursday entitled IT Solutions for a Competitive Power Market in 2011.

The domestic electricity market remained new and had many limitations, especially IT infrastructure and a lack of competitiveness, said Vuong, noting that State-owned utility giant Electricity of Viet Nam (EVN) currently controlled around 60 per cent of the nation's total electrical capacity.

Power plants seeking to sell electricity to the national system needed tools to compute reasonable offer prices based on a competitive market, Vuong added.

Viet Nam PRP Corporation general director Tran Anh Thai said the goal of a competitive electricity market was to gain optimal efficiency in power supply in the context of a market economy, thereby creating correct pricing signals for the development of power plants.

"Those would also create an equal playing field, cut power generation costs, and ensure a balance between demand and supply," Thai said.

The establishment of a common information model (CIM) would also comply with the terms of Ministry of Industry and Trade Directive No 6941, which requires IT insfastructure for the power generation market that includes 15 subsystems, with each linked to the other via a direct connection to ensure proper operation of units joining the market. The Centre of National Power Grid Control would be responsible for managing, connecting and operating the 15 subsystems.

Under the principles of the competitive power market, all power plants with capacities over 30MW would be obliged to participate in the market, except for current facilities built under Built-Operate-Transfer (BOT) contracts and hydroelectric facilities.

Thursday's seminar was organised by the Ministry of Industry and Trade and Viet Nam Power Resource Partners Corporation.

Deal signed to build fish fillet factory

Vina Price Seafood Company and Long Hau Joint-Stock Company signed a contract yesterday to re-lease land and to build a fish processing plant.

The plant covers an area of 20,000sq.m and will a cost of more than US$4 million. The plant will process fish fillets.

Korean Seafood is one of South Korea's leading seafood producers that owns processing plants in China, Russia and New Zealand.

Southern province greenlights projects

The provincial Department of Planning and Investment officially granted investment licences to 12 projects. It also named 95 projects that were earmarked for compensation and land clearance.

Dang Minh Thong, deputy director of the department, said FDI-projects worth US$8 billion that had been granted investment licences between 2006-10, were still in the process of clearing land.

Local authorities are planning to streamline administrative procedures to facilitate the implementation of land-clearance projects, he added.