Sandisk brings world's highest capacity memory card to VN

SanDisk Corporation, a global leader in flash storage solutions, has launched its latest innovations in Viet Nam.

Sandisk launches innovative flash memory offerings such as the world's highest capacity SD card for high performance video and photo capture and world's fastest, high-capacity micro SD UHS-I memory card. - VNS Photo

The offerings include the world's higest 512GB memory card, the SanDisk Extreme PRO SDXC UHS-I for video and photo capture, and the world's fastest and high capacity microSD memory card, the 64GB SanDisk Extreme PRO microSDXC UHS-I.

Dinh Quang Trong, SanDisk's country chief for Viet Nam, said Viet Nam is an important and strategic market for his company since demand for consumer electronics is continuing to grow and many consumers are looking for memory solutions, especially for breakthrough technologies that expand storage possibilities.

Vung Ang to become nation’s largest thermal power center

Minister of Industry and Trade Vu Huy Hoang and delegates had a working with Formosa Ha Tinh Steel Corporation (FHS), Vung Ang 1 thermal power plant at Vung Ang Economic Industrial Zone in the central province of Ha Tinh on January 24.

Up to now, Vung Ang 1 thermal power plant has completed around 98, 7 percent of the construction. It is expected to put into operation in November, 2015, reported management board of Vung Ang – Quang Trach Petroleum Power Project.

At the meeting, Minister of Industry and Trade Vu Huy Hoang stressed that the Son Duong Formosa steel & seaport complex is considered as one of major economic site which received the best conditions for priority investment by Government, relevant ministries and departments.

Vung Ang is well-known as one of five key coastal economic zones in energy, steel and oil refining.

In the near future, Vung Ang will become the largest thermal power center in Vietnam. Thus, Minister of Industry and Trade Vu Huy Hoang asked General Department of Energy, Vietnam Electricity Group, Vietnam Power Transmission Company and relevant agencies should collaborate closely with management board of the project in order to ensure construction safe, operation and benefits between investors.  

VEC plans to increase charter capital

The Vietnam Expressway Corporation (VEC) plans to increase its current charter capital 22-fold to more than 22.16 trillion VND (1.04 billion USD) ahead of its equitisation.

According to VEC General Director Mai Anh Tuan, it will be important to determine the corporation's charter capital ahead of its equitisation and to call upon stakeholders, especially strategic stakeholders.

The proposed charter capital is equivalent to combining the State's direct investments in the corporation's five major projects, the current charter capital and the remaining revenue from auctioning two toll-fee stations.

The Ministry of Construction has asked the VEC to establish a steering board for restructuring and equitisation and complete the restructuring project within the first quarter of this year, saying the equitisation of the corporation must be completed by the end of this year.

Minister of Transport Dinh La Thang has expressed his determination to speed up the equitisation of corporations under the ministry within this year and the VEC is just one among more than a dozen of the ministry's corporations to be complete the process in 2015.

Last year, the ministry equitised 10 corporations in line with an approved plan. The ministry also completed an initial public offering for 48 corporations.

January CPI slides over fuel cost reductions

Following recent plunges in fuel prices, the Consumer Price Index (CPI) in January dropped by 0.2 percent against that of December 2014, a record low over the last ten years.

The index, however, represented an annual gain of 0.94 percent, according to the General Statistics Office (GSO).

The steepest drop of 3.96 percent was seen in transportation cost due to lower petroleum prices. This accounted for 0.35 percent of the January fall in CPI, said Deputy Director of the GSO’s Price Statistics Department Do Bich Ngoc.

Housing and building materials showed a 1.09 percent decrease in prices, while post and telecommunications services costs slipped by 0.07 percent.

Other commodity groups in the price bracket saw rises ranging from 0.13 – 0.53 percent with the lowest increase at 0.08 percent seen in education services.

Ngoc said the fuel cost reductions also left its impact on the costs of food, limiting their growth this month at a low 0.28 percent even though food prices usually rise towards the Lunar New Year, the most important festival in a year.

The GSO forecasted February CPI will be stable or even fall slightly compared to the previous month.

Ho Chi Minh City sees strong growth in January

Ho Chi Minh City had a good start for 2015 with strong and stable growth in January, heard a regular meeting on January 23 of the municipal People’s Committee.

As of January 20, the city attracted 363.8 million USD in foreign direct investment (FDI), which was poured in 23 new and 8 underway projects. The capital amount was 15 times higher than the same time last year’s figure, said Thai Van Re, Director of the municipal Department of Planning and Investment.

Domestic investment also saw positive signs, with over 14.3 trillion VND (672.1 million USD) invested in local enterprises, he noted.

During the month, 1,386 new firms was licensed with a total registered capital of over 5.6 trillion VND (263.2 million USD) and 2,391 local enterprises poured a combined additional 8.7 trillion VND (498.9 million USD) into their business.

Le Hoang Quan, Chairman of the municipal People’s Committee commented that the surge in January’s FDI showed that investors were confident of the city’s investment environment.

In 2015, Ho Chi Minh City will strive to attract more FDI capital than last year’s 3.2 billion USD, he said, adding that this will pave the way for the city to fulfil its plan for the next five years.

At the same time, industrial growth in January was impressive with a 9.2 percent rise year on year, said Re, adding that an approximate 10 percent increase were seen in all four major industrial sectors of manufacturing and mechanics, electronics, chemicals-rubber-plastics, and food processing.

In February, as part of efforts to prepare for the upcoming Lunar New Year (Tet), the city will roll out a number of measures to ensure goods supply and price stability during the holiday, which will last from January 15-23.

Local enterprises have stocked 15.84 trillion VND (744.48 million USD) worth of goods, with the goal of keeping prices stable on the occasion.

Director of the Finance Department Dao Thi Huong Lan said the city will spend about 600 billion VND (28.2 million VND) to help disadvantaged people celebrate a warm Tet holiday.

In order to maintain the stable growth, Chairman Quan asked all departments and agencies to continue removing difficulties for businesses in an effective and timely manner, while strengthening control over prices and ensuring goods supply during Tet holiday.

US business community urged to spur Vietnam-US ties

Vietnamese Ambassador to the US Pham Quang Vinh called upon American businesses to tighten links with Vietnamese counterparts to contribute to growth in bilateral economic and trade relations.

During his meeting with representatives of the US business community in Washington DC on January 22, Vinh praised their contributions to normalising the ties between the two sides in the past.

He informed participants about recent achievements in Vietnam-US relations, especially in economics as the value of trade between the two nations hit 35 billion USD in 2014. He also highlighted Vietnamese policies and developments promoting economic growth, especially its efforts to renovate, restructure, and stabilise the national economy.

The two nations will work closely in 2015 in honour of the 20 th anniversary of their diplomatic ties, the diplomat said.

President of the US-ASEAN Business Council (US-ABC) Alexander Feldman and Vice President of the US Commercial Chamber (USCC) Tami Oberman stressed that the US business community has strong confidence in Vietnam’s economic development prospects and look forward to positive impacts brought about by the Trans-Pacific Partnership Agreement.

They said a number of US companies intend to expand their market to establish partnerships with Vietnamese firms and contribute to fostering Vietnam-US relations.

Dorothy Dwoskin from the Microsoft Corporation said her company is accelerating the restructuring of its investment activities in Vietnam.

Motorbike sales continue to fall

Despite the launch of new motorbike models and promotions, the number of motorbikes sold continues to fall, the Dau Tu (Investment Review) newspaper reports.

The Vietnam Registration Agency said more than 2.9 million motorbikes were registered last year, while the figure was 3.272 million in 2013, 3.282 million in 2012 and 3.671 million in 2011.

Among the registered motorbikes last year, most of them were for foreign directed investment enterprises (2.643 million) and were big brand names like Honda, Yamaha, Piaggio, Suzuki and VMEP. Only 272,000 registered motorbikes were made by 10 domestic businesses.

The market has reached a saturation point, as sales have plummeted.

Motorbike businesses incorrectly assumed that 2014 would be a bright year for sales.

Wang Chinh Tung, General Director of VMEP Co, said the company expected higher sales because the country's GDP had been forecast to rise in 2014.

Ono Masaru, General Director of Yamaha Vietnam , said in the past year, the company implemented 300 programmes to launch and promote new products to customers.

The biggest player, Honda Vietnam, also launched many new models with a series of promotions to stimulate demand.

However, contrary to their expectations, turnover continued to fall, leading to lowered production.

Motorbike sales will continue to fall, experts have predicted.

Food Ingredients Vietnam expo to be held in HCM City

Some 150 companies from 20 countries will participate in the second Food Ingredients Vietnam exhibition in HCM City from May 20 to 22.

They will showcase many kinds of ingredients with the main aim of supplying to Vietnamese companies.

According to the organiser, UBM Asia, the first exhibition held last year was very successful.

While last year most of the ingredients on show related to flavours and colours, this year there will be more health-related ingredients and halal food, said the UBM.

"Four thousand visitors are expected to visit the exhibition," it said, adding that this year will see the participations of Chinese companies and others from the EU and ASEAN.

The organiser is hoping that with many of the companies now knowing each other after last year, the second event will be more successful.

Apart from displaying products and cooperation opportunities, the event will also feature exhibitions and seminars about the food sector.-

Phu Quoc Island strives to attract more foreigners

Phu Quoc, also known as the Pearl Island and located in Vietnam’s southwest waters, is working to attract more foreign tourists as the number of Russian visitors has been plummeting in the region.

Phu Quoc is the largest of the 27 islands that form the Phu Quoc district of Kien Giang province.

Since February 2014, the Anh Duong Tourist Company in Ho Chi Minh City and the Pegas Touristik Company in Turkey have been operating direct flights from Russia to Phu Quoc to encourage foreign visits to the island.

The number of tourists, including Russian tourists, to Phu Quoc rose sharply in 2014, said Phung Xuan Mai, General Director of the Saigon-Phu Quoc Joint Stock Company, adding that the direct flight service was offered weekly with more than 200 seats on each flight.

The Pearl Island welcomed over 586,000 tourists last year, representing a yearly increase of 37.6 percent, and including nearly 125,000 foreigners – a 21.5 percent increase.

The island also posted an 84.28 percent hike in its tourism revenue last year to over 2.2 trillion VND (104.76 million USD), according to the People’s Committee of Phu Quoc district.

Vice Chairman of the committee Huynh Quang Hung attributed the success to a number of prominent events held on the island in 2014, such as the Khat vong tre (Youth Aspiration) art programme and the Miss Vietnam beauty pageant, as well as the launching of new international direct flights and major tourism facilities.

To make up for the decline in the number of Russian tourists, the district authorities have made substantial efforts to promote the island to international travel companies from Asian and European countries, Hung said. In addition, local businesses in the hospitality industry also offer various discounts on room and service prices.

Gregory Consyn, Manager of the Shells Resort and Spa in Phu Quoc, said his facility has an array of special offers, such as discounts on rooms, free spa services, and evening parties. The resort is now focusing on attracting travellers from Japan and the Republic of Korea and looks forward to additional flight routes linking the island and international destinations.

At present, Phu Quoc Island offers more than 4,000 hotel rooms which can accommodate 7,000-8,000 guests. A number of hotel and resort construction projects are currently under way in an attempt to cater to tourism demands and position the island towards becoming an international tourism hub.

Supervisory model on public investments prove effective in Quang Nam

A community-based model for supervising public investment has proved its effectiveness in reducing corruption and wastefulness, subsequently reducing related complaints and petitions in central Quang Nam province.

The outcomes were shared at a workshop on January 23 in Quang Nam which was held to review the operation of the model, a prize-winning initiative in the 2011 Vietnam Anti-corruption Initiatives (VACI) and was carried out with funding from the World Bank and the Government Inspectorate.

The Quang Nam provincial inspection department has set up 102 community monitoring boards with over 2,000 members across six districts and towns since 2011. Members of the board are volunteers from the local Vietnam Fatherland Front chapters. They all underwent training courses to better deal with real-life situations of public work construction projects.

The boards monitored 558 construction projects in their localities in 2014 and detected 96 law violation cases that were promptly reported to relevant agencies.

Participants at the workshop hailed the boards’ achievement in enhancing transparency and strengthening democracy at grassroots level.

In 2015, the province plans to expand the model to 12 other districts and towns.

The macadamia nut is thriving in Vietnam

More than 2,000 representatives of the macadamia nut industry gathered at the nation’s first ever show showcasing it on January 24 at the Long Vu Place in Hanoi.

Organizers of the event were all smiles to see the nation’s delicious creamy nut take centre stage at the show and the better than expected turnout for the event.

At the event, industry leaders, scientists, growers and producers held dialogues aimed at defining future orientations for the industry in Vietnam and measures needed to spur increased investment in it.

The country is set to produce 200,000 tons of nut and generate trade value worth billions of US dollars by 2025 and beyond.

The macadamia nut is often called the ‘the Queen of Nuts’ due to its great taste and outstanding nutritional value. The plant, indigenous to Australia, was introduced to Vietnam  in 2002 by Former Deputy Prime Minister Nguyen Cong Tan.

Germany, Vietnam step up agriculture cooperation

Vietnam and Germany have agreed to step up cooperation in agricultural vocational training and signed an agreement to that effect on January 23 at an ongoing international trade fair in Berlin.

Signatories to the agreement were President of the Vietnam Farmers' Association Nguyen Quoc Cuong and President of the German Farmers' Union (DBV) Joachim Rukwied.

The signing ceremony was also attended by Vietnamese Ambassador to Germany Nguyen Thi Hoang Anh and DBV representatives.

At the ceremony, Cuong spoke glowingly of the valuable assistance provided to Vietnam by the German government and the DBV in prior cooperation agreements, which has been instrumental in helping farmers.

Cuong noted the newly-signed agreement for the period 2015-2017 comes at a time when both nationsare celebrating the 40th anniversary of bilateral diplomatic ties and enjoying fruitful relations in a host of fields.

For his part, Joachim Rukwied said the Vietnamese and German governments are staunch supporters of bilateral agricultural cooperation adding that the agreement focuses on vocational training for both farmers and agricultural experts.

Korean business invests in high-quality rice production in Tay Ninh

A Korean business has decided to invest VND20 billion in the development of a high-quality rice cultivation area in the southwestern province of Tay Ninh.

A memorandum of understanding (MoU) was signed on January 22 by Vietnam Moc Bai joint stock company under the Republic of Korea’s Taekwang group and Tay Ninh Department of Agriculture and Rural Development (DARD).

Accordingly, the fund will be used to build dykes, irrigation system and procure machines and equipment.

Tay Ninh province will spend more than VND6.4 billion on building a storage area and a bomb and mine clearance project.

DARD Vice Director Nguyen Thai Son said experts and technicians will help farmers develop a modern rice cultivation model to bring about highest efficiency.

In 2010 Taekwang Group invested in building a Nike sports shoes factory in Moc Bai Economic Zone in Tay Ninh province with an annual capacity of 10 million pairs of shoes and has employed 15,000 local workers.

It is also building a 100ha garment industrial zone and plans to develop a hi-tech vegetable cultivation zone on 20ha in Phuoc Ninh commune, Duong Minh Chau district.

Trade deficit hits US$522 million in first half of January

Vietnam’s total imports and exports in the first half of January increased by 6.2% to US$12.11 billion compared to the same period last year, according to the General Department of Vietnam Customs.

However, comparing with the second half of December 2014, the trade balance registered a deficit of US$522 million, accounting for more than 9% of total exports revenue.

Vietnam earned US$5.79 billion from exports, down 2% (around US$115 million) against the same period last year.

Products saw decline in export growth including means of transport, tools, seafood, crude oil, rice and petroleum. Meanwhile some products enjoying high export growth were telephones and components, computers, electronics and components and footwear.

Foreign direct investment (FDI) businesses fetched US$3.92 billion from exports, an increase of 3.8% against the same period last year and accounting for 68% of total export revenue.

HCM City targets surge in retail sales

The HCM City is eyeing a 12-14 per cent increase in retail sales and services this year to VND740.55 trillion (US$34.75 billion), according to the municipal Department of Industry and Trade.

It has also set a target of $34.95 billion from exports, an 8-10 per cent increase over last year, Le Van Khoa, the director of the department, told a review meeting yesterday.

Exports, excluding crude oil, were worth $27.89 billion last year, a year-on-year increase of 12 per cent, with shipments of industrial and processed goods increasing significantly from previous years, he said.

The city would strive to ensure balanced trade and prevent indiscriminate imports, especially of luxury goods.

The city would take measures to ensure inflation is lower than the national figure and to speed up restructure of the industrial sector so that it can play a greater role in the global value chain, Khoa said.

Amending zoning plans so that industrial parks and processing zones and industrial clusters specialise in certain industries, upgrading traditional markets, ensuring supply and demand are matched and strengthening market oversight are also on the cards for this year, he said.

It would undertake programmes to resolve difficulties faced by companies and help them sell more in both domestic and foreign markets, he said.

There would be focus on developing supporting industries to increase local content in industrial products, he said.

Deputy Minister of Industry and Trade Do Thang Hai hailed the efforts made by the city's industrial and retail sectors last year.

He urged the city to implement measures to help businesses expand investment and trade and integrate more with the global economy.

He also suggested that it should improve the efficiency of its programmes like price stabilisation and Vietnamese people prioritise using made-in Viet Nam goods and those to strengthen links between banks and businesses.

Business outlook upbeat with less firms closing

The number of enterprises going out of business in January was 10 per cent lower than in the same period last year.

This decrease in closures indicates that HCM City-based enterprises were prospering, according to figures released by the City's Department of Planning and Investment at a meeting held on Friday, January 23.

Meanwhile, licences granted to newly-established local enterprises, and for operational projects seeking capital expansion in HCM City, rose 33.2 per cent compared with January 2014, Thai Van Re, Director of the HCM City Department of Planning and Investment told delegates at a meeting to review January's socio-economic developments in HCM City.

According to a report released by the HCM City People's Committee, in January the city authority licensed 23 new foreign direct investment (FDI) projects with total registered capital of nearly US$330 million, up 53.3 per cent in the number of projects and a 15-fold increase in investments.

In addition, eight operational projects were licensed for capital expansion of $34 million.

Further, the Chairman of HCM City People's Committee, Le Hoang Quan, said total FDI flowing into HCM City is expected to increase from $3.25 billion in 2014 to $3.5 billion this year.

In the past few years, foreign investment in HCM City has been focused on sectors such as mechanics, electronics–IT, chemicals and food processing.

"The city authority will create favourable conditions for investors in HCM City," said Quan.

Additionally, the Director of HCM City Finance Department, Dao Lan Huong, said revenues from tax payments for the city's budget reached VND26 trillion, over US$1.2 billion, up 29 per cent compared with the same period last year.

The rising budgetary revenues indicate the "good health" of HCM City-based businesses, said Huong, as quoted by Sai Gon Giai Phong (Liberated Sai Gon) newspaper.

Tet gifts hit markets across HCM City

Supermarkets, markets and shops in HCM City are offering various kinds of Tet (Lunar New Year) gift hampers to meet the demand from businesses as well as individual customers.

Saigon Co.op, which runs Co.opmart supermarkets, is offering hundreds of varieties of hampers at prices ranging from VND59,900 to VND1.7 million (nearly US$80).

For the first time it has launched a free gift delivery services to receivers in any province and city where its stores are located under its "Tet Viet gan ket moi nha" (Vietnamese Tet connects every home) programme.

South Korean supermarket chain Lotte Mart has gift baskets at prices ranging from VND99,000 to VND4 million ($187).

French supermarket Big C is offering gift baskets and boxes priced at VND59,900-1.7 million.

Traders at traditional markets like Tan Dinh, Thi Nghe, and Ba Chieu also have various kinds of Tet gifts. Nguyen Thu Van of Thi Nghe Market expected sales to increase strongly from the middle of the lunar month which falls on February 3. Tet is on the February 19.

All of them mainly contain confectionery, tea, coffee, water melon seeds, wine, seasoning, and cooking oil.

Le Ngoc Dao, deputy director of the city Department of Industry and Trade, said companies are ready to supply enough goods for the nation's biggest holiday, and expected supply to increase by 10-30 per cent over last year.

"There will be no shortage of goods or price surges suddenly during Tet, while goods quality will be strictly controlled," she said.

Nguyen Thi Hanh, general director of Saigon Co.op, said Saigon Co.op would increase supply of essential goods by two or three times from normal months to ensure there is no shortage. It is also set to increase supply of specialties from various parts of the country — like Thanh Oai orange, Dien pomelo from Ha Noi, Phan Thiet dragon fruit wine, Ca Mau dried shrimp, and plum wine.

Besides, it would offer discounts of up to 50 per cent on more than 4,500 products and organise 140 sales trips to the city's remote districts and industrial parks and export processing zones, Hanh said, adding that it is co-operating with the Fatherland Front in districts to give away more than 7,500 gifts to disadvantaged families for them to enjoy Tet.According to Lotte Mart, prices in general are not much different compared to last Tet.

New refinery included in oil sector's plans

Prime Minister Nguyen Tan Dung has decided to include the Victory-Nhon Hoi petrochemical and oil refinery project in plans for the country' petrol sector.

The US$22 billion project is listed among the projects receiving priority from the Government, reported the news site vnexpress.

The US$21.5-billion Victory project, to be located in Binh Dinh's Nhon Hoi Economic Zone, is to be funded by the Petroleum Authority of Thailand (PTT) and its strategic partner, the Saudi Arabian oil company Saudi Aramco.

The Government has given a nod in investment priorities to the project, which were suggested by the province's leaders and the Ministry of Finance.

In a meeting, held last week between local authorities and leaders of ministries on sectors to discuss issues related to the project, Chairman of Provincial People's Committee Ho Quoc Dung said he would work with PTT's representatives to complete the investment licence, which is scheduled to be issued in February this year.

Accordingly, the Nhon Hoi project will enjoy favourable assistance in difficult regions, high-tech industrial zones and economic zones. For instance, the enterprise income tax for the Nhon Hoi project will rise to 10 per cent in 15 years. The project will also enjoy a tax-free status for the first four years, while taxes for the next nine years will be reduced by half.

Further, the project's investor proposes to extend the enterprise's income tax of 10 per cent to 30 years, which will be considered at the time of funding. Also, the project will be exempted from land leasing taxes and the tax on imported crude oil, as well as on imports of machinery and equipment which are not manufactured domestically.

When the refinery comes into operation in 2017, its products will also be sold in Viet Nam. Yet, the Government has set no specific tax on the importation of the Nhon Hoi factory's products.

The project's first phase is estimated to be valued at $21.5 billion to produce some 400,000 barrels per day.

Viettel conference links telecoms

Nearly 500 leaders and best employees of military-run telecommunications group, Viettel, attended and presented papers on over 20 topics related to the telecommunications industry at a conference here on Thursday.

The telecommunications conference, titled "Viettel Global Experience Sharing Conference", created an opportunity for Viettel's employees from across the world to meet and share their experiences in managing and conducting their telecom business.

Employees participating in the conference arrived from Viet Nam, Laos, Cambodia, and Timor Leste, as well as Haiti, Peru, Mozambique, and Cameroon. Also present were employees from Tanzania and Burundi.

The conference was divided into five workshops covering different subjects: business, technology, infrastructure, and information technology, as well as management.

This conference marks the first time that a multinational group from Viet Nam has hosted a global programme that gathers telecom operators from 10 countries. It provides Viettel the opportunity to introduce Viet Nam and the strengths of Vietnamese corporations to its international friends. Viettel, the largest mobile operator in Viet Nam, is currently proving its competence in the global telecommunications industry, with most of its overseas subsidiaries playing leading roles in their respective markets, both in terms of technology and business. Viettel has been gaining knowledge and experience in various fields through its investments and by doing business in different countries.

The group's total revenue in foreign countries last year rose 25 per cent, reaching US$1.2 billion, while its profit was $115 million, posting a 25 per cent year-on-year increase.

Viettel has applied for a licence and auction approval to invest in several African and East European countries. Investing in foreign countries has been one of Viettel's three main priorities. It aims to become a global company that ranks amongst the top 20 telecommunications groups in the world. Company officials expect to receive 20-25 investment licences for an overseas telecommunications network that will provide services to 500-600 million people by 2020.

The Ministry of Information and Communications has recently approved the addition of digit "1" to the "096", "097" and "098" prefixes in mobile phone numbers operated by Viettel.

The move follows a ministerial decision on allocation of telecom codes and numbers.

With the addition of one digit, Viettel will have more three million 10-digit mobile phone numbers. With 11 mobile phone prefixes, Viettel, with 87 million phone numbers, becomes the largest owner of mobile phone numbers in the country, of which 27 million are 10-digit numbers and 60 million 11-digit ones.

On December 22, 2014, the ministry issued Circular No 22/2014/TT-BTTT about planning the country's telecommunication numbers. The circular will take effect on March 1.

The ministry said that the plan is being implemented since fixed phones were on the decline while mobile phones' market was expanding. The fixed phones have seven digit long prefixes while mobile phones have two. However, fixed phones account for about five per cent while mobile phones make up for about 95 per cent of the total Vietnamese subscribers.

Therefore, the ministry has decided to provide eight prefixes for mobile phones and only one for fixed line that can lead to a change in area codes. All 11-digit phone numbers of mobile network operators will be transformed into 10-digit ones. The change in area code will be implemented within two years.

Central bank well set to keep forex rate under 2 pct: experts

Experts said the State Bank of Viet Nam will succeed in keeping the Vietnamese dong-US dollar exchange rate from fluctuating to below 2 per cent this year.

Some have been concerned that the continuing sharp fall in oil prices, which is one of Viet Nam's key export staples, will negatively impact foreign currency supply and demand.

However, the deputy director of the Central Institute for Economic Management, Vo Tri Thanh said at a conference on Thursday that the central bank will successfully keep the foreign exchange rate from fluctuating to below 2 per cent, owing to supply and demand of the country's foreign currency sources, as well as the central bank's competence in successfully managing the forex market for the past few years.

Thanh added that Viet Nam's foreign currency reserves have currently hit a record high of roughly US$35 to 38 billion, while balance of payments this year are forecast to have reported a surplus of roughly $7 to 8 billion.

However, Thanh noted that it will be important to see how the central bank adjusts the rate to stabilize the forex market, while avoiding negatively affecting other indices.

The Bao Viet Securities Co. (BVSC) also forecast this week that the forex market will remain stable in 2015 as well.

The securities company anticipates the exchange rate of the dong against the dollar to vary between VND21,600 and VND21,800 till the end of this year.

The forex market will still experience ‘rising waves.' However, the central bank will successfully intervene to keep the exchange rate fluctuation within the set target.

Trust in the central bank's successful policies formulated over the last two years has also helped the central bank execute its policies more effectively, BVSC said.

However, BVSC said the central bank could consider the devaluation of the dong against the dollar and implement the devaluation with a certain timeline, in a bid to boost the competitiveness of Vietnamese exports.

Textile firm enjoys successful IPO

Minh Khai Textile successfully sold 1.6 million shares, or a 51.5 per cent stake, during its initial public offering (IPO) yesterday at the average price of VND71,990 (US$3.4).

Remarkably, the starting price was only VND10,100 ($0.47).

The auction attracted 30 investors, whose registration volume later climbed to 26.8 million shares. The buyers were three individual investors, who paid VND118.7 billion ($5.57 million) for the shares.

Minh Khai Textile's charter capital after the IPO is VND32 billion ($1.5 million).

Tien Bo Group to list on HNX

Construction company Tien Bo Group will list 3.5 million shares on the Ha Noi Stock Exchange from January 26. The shares, coded TTB, will be traded from a starting price of VND15,000 ($0.7).

The group earned a profit of VND11.7 billion in 2014 and plans to pay cash dividends at 7 per cent and buy shares at 7.5 per cent for the year. It also expects to raise the charter capital to VND105 billion after listing.

Auction of five-year bonds raises $428.57 million

The State Treasury raised VND9 trillion (US$428.57 million) through the auction of five-year bonds in January.

It mobilised VND6 trillion at a strong interest rate of 5.9 per cent during the January 22 bid, 0.11 percentage point lower than the interest rate recorded during the January 15 session.

The agency said it plans to issue about VND70 trillion ($3.33 billion) worth of bonds in the first quarter of this year. Of this amount, VND55 trillion is expected to be in five-year bonds, VND10 trillion in 10-year bonds and VND5 trillion will be denominated in 15-year bonds.

Vinamilk purchase of raw milk soars by 20 per cent

Viet Nam Dairy Products Joint-Stock Co purchased nearly 12 million kg of fresh milk from farmers in the first 19 days of the year, an increase of 20 per cent over the same period last year.

At least 7.5 million kg were bought from HCM City and neighbouring provinces, an increase of 11 per cent.

The highest growth of 71 per cent was from Binh Dinh and Lam Dong provinces.

Vinamilk has purchased 60 per cent of raw fresh milk from farmers nationwide. The number of farm households delivering high quality milk will be paid more than VND14,000 per kg. The company said these households accounted for more than 50 per cent. Vinamilk also committed not to decrease milk purchasing and the price if the milk quality meets the company's requirement. Vinamilk said it would help farmers increase the quality of raw milk.

Vingroup gets go ahead for underground parking lot study

The HCM City authorities allowed Vingroup to conduct a study of the underground parking lot project in Tao Dan Park in the city's District 1 early this week.

Vingroup plans to build the project on a build, operate and own (BOO) basis with its own investment in six months.

However, if Vingroup is not selected as the investor, fails to finish the study or submit a feasibility study, the group must pay all fees of the study themselves, while the city will consider Vingroup to be out of the project.

In November 2014, the State-owned construction company, Viet Nam Urban and Industrial Zone Development Investment Corporation (IDICO), withdrew from the project due over financial issues.

Under the study done by IDICO, the construction of the lot will cost VND1.43 trillion (US$67.1 million). The five-storey, 70,211sq.m parking area will contain 1,050 cars, 10 buses and 2,500 motorbikes.

New flash storage options

SanDisk Corporation, a global leader in flash storage solutions, has launched its latest innovations in Viet Nam.

The offerings include the world's higest 512GB memory card, the SanDisk Extreme PRO SDXC UHS-I for video and photo capture, and the world's fastest and high capacity microSD memory card, the 64GB SanDisk Extreme PRO microSDXC UHS-I.

Dinh Quang Trong, SanDisk's country chief for Viet Nam, said Viet Nam is an important and strategic market for his company since demand for consumer electronics is continuing to grow and many consumers are looking for memory solutions.

FPT project in Myanmar

Viet Nam's FPT Information System Company (FPT IS) recently began implementing SAP enterprise resource planning (ERP) solutions for Myanmar's United Paint Group Co, Ltd (UPG).

This is the first ERP project that a Vietnamese firm has carried out in Myanmar.

Within seven months, FPT IS will carry help create subsystems for production management, product purchasing and sales, along with storage, accounting and a smart reporting system. The implementation of the software will enhance UPG's management capacity.

Maritime sector to focus on private funding

The Ministry of Transport will further encourage investment from the private sector for infrastructure projects in the maritime industry as the State will fund only national defence and security projects.

The Minister of Transportation Dinh La Thang made this announcement on Wednesday at a meeting on directing the implementation of a plan to mobilise private investment for maritime infrastructure projects going forward.

Do Duc Tien, the deputy head of the Maritime Department, said in January, that the department will soon list maritime infrastructure projects that need investment from the private sector.

The list has 41 projects for the 2015 to 2020 period, with a total investment of VND43 trillion (US$2 billion), including 10 projects for developing shipping flows/routes, 19 projects for building seaports, three projects for developing an electronic maritime system and nine projects for constructing safe-anchorage sites for boats during storm season.

Many investors have committed to invest a total of VND7 trillion for some of these projects, he pointed out.

During 2015 to 2016, investors have so far registered to invest in the development of three other projects, including a project for building a flow for large ships to and from the Hau River, which will require a total capital of VND2.7 trillion, a project for building a Tho Quang flow for 10,000-DWT ships, with a total capital of VND126 billion and a project for upgrading the Nghi Son flow for 50,000-DWT ships with a total capital of VND300 billion.

Thang said private investors currently hold 75 to 80 per cent of the total investment capital in the maritime sector, while the remaining of 20 per cent comes from the State.

The Lach Huyen port will be the last infrastructure project in the maritime sector to have state investment, he added as maritime infrastructure projects from now on will involve private investment.

The State will only invest in maritime projects that do not need investment from private investors and which are aimed at ensuring national defence and security, Thang explained.

However, Thang said the managerial role of the State in all these projects is not clear yet.

The state offices must analyse investors' reasons for investing in the sector, the advantages and disadvantages of investment activities in the sector. The state office will also provide solutions for creating favourable conditions for investors to invest in the maritime sector because the sector needs considerable investment capital for development.

Piaggio Vietnam recalls 630 faulty scooters

Piaggio Vietnam, a subsidiary of Italy’s Piaggio Group, one of the world’s leading manufacturers of scooters and motorbikes, on January 24  

announced to recall nearly 630 imported CKD scooters in the Vietnamese market.

Recalled scooters include Piaggio Beverly 125, Vespa GTS 125 and Vespa LXV 125.

According to dantri newswire, from January 23, the company started to check and replace scooters’ rotors for free in all nation-wide customer  service centres. It takes from 40 to 90 minutes for the replacement.

Those 630 scooters were manufactured from May 13, 2009 to August 31, 2010 and the reason for the recall was the problem in the scooters’  rotors could make hard to start the engine or in a risk to make the engine suddenly stop when the scooters are used for a long time and  continuously in the too hot temperature condition.

Despite the fact that there was not any reported case in the Vietnamese market so far, Piaggio Vietnam decided to make the recall, the  company said.

PVI, PVcomBank agree on comprehensive co-operation

The PetroVietnam Insurance Corporation (PVI) and the Viet Nam Public Bank (PVcomBank) signed a comprehensive co-operation agreement at the bank's headquarters on January 21.

The two parties committed to providing and using each other's services, including deposits, payment account management and capital arrangement, along with financial consultancy and individual and corporate finances.

They also agreed to exchange business information and explore investment opportunities at home and abroad.

The two confirmed that this co-operation will help ensure sustained growth for both sides, in line with the general development trend seen in Vietnamese enterprises.

PVI is an affiliate of the Viet Nam Oil and Gas Group (PetroVietnam) and among the leading industrial insurance companies in Viet Nam. It represents nearly all of the energy insurance market, about 30 per cent of the marine insurance market, and around 40 per cent of the property and engineering insurance sector.

PVcomBank holds VND9 trillion (US$428.57 million) in equity and nearly VND100 trillion ($4.76 billion) in total assets. PetroVietnam owns 52 per cent and strategic shareholder Morgan Stanley holds 6.7 per cent of the bank's equity.

VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR