Firms urged to boost presence in French market

Vietnamese businesses should further sharpen their competitiveness to enhance their presence in France, the commercial counsellor at the Vietnamese Embassy in France Pham Xuan Yen said.

The French economy was expected to continue recovering this year, resulting in improvement in French spending. That would present an ideal opportunity for Vietnamese businesses to expand their operations, he said.

Two-way trade has increased significantly over the past two years, reaching 1.74 billion euros (US$2.37 billion) in 2009 and approximately 2 billion euros ($2.73 billion) last year.

Of the total, Vietnamese exports accounted for 1.32 billion euros ($1.8 billion), a 9 per cent increase against 2009. Among export items recording the highest growth were seafood, footwear, textiles and garments and home appliances.

In terms of investment, France was one of the first foreign investors in Viet Nam. Vinaspecia and Roussel Viet Nam pharmaceutical joint ventures were established in 1970s.

Since Viet Nam first opened its doors to foreign investors, more French businesses have come to Viet Nam to seek investment opportunities.

As of last year, France ranked 15th among 92 countries and territories investing in Viet Nam with over 300 projects worth a total of $2.94 billion. French businesses in Viet Nam have thus far created 26,000 jobs for Vietnamese workers.

French businesses were interested in the Vietnamese investment environment, said French Trade Commission (UBIFRANCE) director for Viet Nam Jean Louis Poli.

The director said he believed there would be fast growth in Franco-Vietnamese comprehensive co-operation as Viet Nam was a rapidly-growing and attractive country.

It was a good time for French investors to expand their business and investment activities in the country, he noted.

President of the Financial Consultancy Co Jean Michel Caldagues outlined infrastructure development as one of the sectors that French businesses were highly interested in.

He spoke highly of the public-private partnership (PPP) model that was being promoted in Viet Nam. Fostering infrastructure upgrade to cater for economic development was necessary in a country that experienced high growth like Viet Nam.

While the Government capital was insufficient, he said, PPP development was one of the best ways to mobilise resources for development. France was one of the countries with a wealth of experience in PPP development and it was willing to share its experience in this field with Viet Nam.

Dragon fruits fly record high in Binh Thuan: 1,000 tons a day

The central province of Binh Thuan is exporting a daily average of 1,000 tons of dragon fruits right before Tet, or the Lunar New Year beginning next week, a record high compared to its normal shipments.

According to chairman of the Binh Thuan Dragon Fruit Association Bui Dang Hung, wholesalers now buy the white-flesh fruit at VND13,000-14,000 per kilogram, at which farmers can profit at least VND7,000 per kilo.

Meanwhile, the pink-flesh variety is bought at a much higher price of VND34,000 per kilo but there is not enough for export at the moment, he added.

Binh Thuan is Vietnam’s dragon fruit orchard with around 12,300 ha, of which 13,000 ha is dedicated to white-flesh dragon fruits and 30 ha to pink-flesh species.

South Korea and Chile have recently started to import the fruits subject to heat-treatment and necessary registration, giving a further impetus to the already rapidly-growing exports.

Vietnam is now in talks with Australia and New Zealand to export its fruit to those markets.

The country sells most of its dragon fruit crops to neighboring China, but exports to other Asian nations, the US, and Europe have been picking up.

Interest rates on dollar deposits hit record highs

The Saigon Commercial Bank has set a new record for dollar deposit interest rates, offering 6.3 per cent on three-month deposits since last week.

The surge in dollar deposit interest rates, also taking place at other banks, indicates a rush among banks to cut themselves a larger slice of the large remittance pie during the Tet (Lunar New Year) festival season when overseas Vietnamese typically send more money home.

Kien Long and Asia Commercial Bank have increased their rates on dollar deposits to 6 per cent and 5-5.1 per cent respectively.

The banks said that despite the continuous increase in deposit interest rates in recent times, supply had not still kept pace with demand.

Therefore, some banks have begun offering even more incentives. For instance, if remittance recipients get at least US$5,000 and deposit it with the SCB bank for one month and upwards, they will be offered a gift worth VND50,000 ($2.5).

If overseas remittance is received in US dollars and the recipients resell the currency to SCB, they will receive gifts worth VND160,000 for every $500 worth of deposits.

At the Vietbank, businesses maintaining dollar deposit accounts for at least one week can enjoy domestic and international money transfers for free.

Experts said the demand for salary payment and bonuses were so high in the run up to the Lunar New Year that banks were also raising interest rates on US dollar to increase mobilisation of funds.

However, at a recent meeting, the Viet Nam Bank Association asked its members to consider the issue carefully before increasing deposit rates for the greenback because people would be motivated to hold on to the foreign currency.

Nguyen Duy Hung, general director of Vietbank, said his bank's US dollar mobilisation interest rate of 6.2 per cent was calculated on the customers' demand for loans from the bank. The high interest rate had been applied for a limited period, and was not a long-term plan.

Vietnam to export 1.5 million tons of cement in 2011

Vietnam is expected to export 1.5 million tons of cement in 2011, up 0.5 million tons over 2010.

There will be twelve new cement factories, raising the total cement manufactured to 60 million tons this year.

Since local market’s demand of cement is expected to rise 10 percent compared to last year to about 55-56 million tons, more cement will be exported, according to Nguyen Van Diep, head of Vietnam National Cement Association (VNCA).

The cement’s price still remains the same as the end of last year’s which is VND900,000- VND1 million (US$46.1- 51.3) per ton in the north region, and VND1.2 million –VND1.3 million (US$61.5- 66.6) per ton in the southern part.

Cement’s price may change as electricity and coal’s price will not remain the same.

Ukraine halts tra imports

The National Agro Forestry Fisheries Quality Assurance Department (NAFIQAD) sent a dispatch to the Ministry of Agrarian Policy of Ukraine asking for an explanation as to why it has stopped 20 Vietnamese companies from exporting tra fish into the country.

The dispatch was sent after the Viet Nam Association of Seafood Exporters and Producers (VASEP) announced that since January 20, Ukraine had been accepting imports from only 10 out of 30 Vietnamese companies, following inspections late last year.

"The dispatch has been sent, but we have not received any reply yet," said NAFIQAD deputy head Nguyen Nhu Tiep.

Tiep said foreign countries often spent an ample amount of time working before such problems were solved.

In their dispatch, NAFIQAD asked the ministry to supply regulations about conditions, standards and criteria for seafood producers to be approved to export tra fish into Ukraine's market.

NAFIQAD also asked for a copy of the inspection results.

The department has also asked for confirmation of whether Ukraine will continue to import shrimp, cuttlefish and dried aquaculture products from Viet Nam after January 20.

NAFIQAD also proposed that Ukraine should import the same volume of Vietnamese tra fish as the country did before January 20.

Stores increase hours, staff for Tet

Supermarkets in Ha Noi and HCM City will extend their operating hours and stock extra goods to meet increased shopping demand ahead of the Tet (lunar new year) holiday.

A representative of Intimex said that the number of customers at its supermarkets had grown by five to ten times at this time of the year and that the stores would increase their inventories by an average of 30 per cent. More cashiers and guards would be added to reduce overcrowding, he said, noting that the supermarkets would re-open on February 6, the fourth day of Tet.

Supermarket chain Big C announced it would extend hours by 1-2 hours during the peak period from January 24 to February 1. All Big C outlets would open from 7am to midnight next Wednesday, February 2.

Big C Thang Long store manager Nguyen Trong Tuan, said his store had increased the numbers of check-out counters and cashiers by 30 per cent through next Wednesday.

Tuan also said that Big C would not increase the prices of essential goods during the holiday shopping period, particularly products identified as part of the price stabilisation programme.

According to Fivimart, the prices of goods have increased only slightly compared with last year, but Fivimart supermarkets continued to offer products at discounts of 10-30 per cent.

Nguyen Tien Thoa, head of the Ministry of Finance's price management department, said the authorities had taken actions to manage and ensure stable prices and supplies for the holidays.

Starting in December, Thoa said, inspectors from local finance departments had reviewed and checked the listed prices of products in supermarkets, shopping centres and shops.

Retailers under the price stabilisation programme in Ha Noi and HCM City had also received loans worth up to VND880 billion (US$45.1 million), he said.

"We are determined to deal with violators who have not listed prices or have increased prices unreasonably," Thoa said.

Vietnam's top asset manager sets sights on Cambodia

Vietnam's largest asset manager, VinaCapital Investment Management Ltd, is expanding into neighboring Cambodia with a pledge to invest US$100 million and eventually launch a dedicated fund, the company said on Tuesday.

Its new, wholly owned unit, VictoryCapital, will "invest in a broad range of sectors, including real estate, hospitality, infrastructure and agriculture", said VinaCapital, which oversees $1.7 billion in assets primarily in three London-based funds.

VictoryCapital will source and manage investments in Cambodia, with VinaCapital's Singapore office helping to raise capital, VinaCapital's statement said. It did not specify when it would launch its Cambodia fund.

VictoryCapital joins a small band of frontier investors sizing up Cambodia at a time when China and South Korea are increasing direct investment in its tiny $10 billion economy. Plans for a stock market are progressing, though slowly.

Simon Luu, formerly with Australia and New Zealand Banking Group (ANZ) in Phnom Penh, will be country manager and Don Lam will be chief executive.

Bank pumps $62m into fertiliser plant

Vietinbank inked a deal to provide the Viet Nam National Chemical Group with VND1.2 trillion (US$62 million) in financing to build the Diamond Phosphate Fertiliser Factory No 2. The 12-year loan has a three-year grace period. The factory, located in the northern province of Lao Cai, will be built at a cost of VND5.2 trillion ($266 million). with a design capacity of 330,000 tonnes per year.

Two banks raise charter capital

VinasiamBank and Viet-Russia Joint Venture Bank will raise their charter capital this year.

Vinasiam will increase its charter capital from US$61 million to $161 million, through a capital contribution from Agribank ($34 million), Thailand's Siam Commercial Bank Plc ($33 million) and Thailand's Charoen Pokphan Group ($33 million).

The Viet-Russia Joint Venture Bank will extend its capital from $62.5 million to $168.5 million, of which the BIDV and Russia Commercial Bank will each contribute $84.25 million.

Dutch give boost to agricultural sector

Agricultural co-operation between Viet Nam and the Netherlands under the public-private partnership (PPP) has recorded positive developments, according to the Ministry of Agriculture and Rural Development.

The ministry's International Cooperation Department said the fisheries, cocoa and coffee industries have benefited the most from the co-operation. The Netherlands will help Viet Nam become a full member of the Western and Central Pacific Fisheries Commission (WCPFC). Both countries have agreed to seek funding for a programme to train quarantine officers and law experts concerning the European Union's food safety rules and law.

The Netherlands has pledged to investment 300,000 euros ($407,940) over the 2010-12 period to improve the sustainability of tra and basa fish rearing in Viet Nam.

In addition, the Netherlands have proposed a programme on sustainable production and business development for Viet Nam's coffee industry. Donors are expected to contribute 47 per cent of the 32 million euro programme to be carried out until 2012.

PV