Vietnam promotes cooperation opportunities in South Africa

Vietnam joined more than 50 diplomatic missions and many international organisations in a diplomatic fair in Pretoria, South Africa on October 25.

The Vietnamese Embassy provided visitors with leaflets and booklets introducing the country’s land, people and its cooperation possibilities, especially in economics, investment, trade and tourism. Vietnam’s potential products like rice, tra fish, tea and coffee were also on show.

The Vietnamese stand at the fair attracted nearly 1,000 visitors, including South African former Deputy Minister of International Relations and Cooperation, Ebrahim Ebrahim.

Themed “Celebrating 20 Years of Freedom and Democracy in South Africa”, the fair provided a good chance for participating countries to introduce their history, culture and landscape and to strengthen friendship ties as well as promoting cultural exchange, economic, trade and tourism cooperation.

Exporters make inroads into Australia

The Vietnam Trade Office in Australia and the Ministry of Industry and Trade are organising a series of activities to help Vietnamese exporters sell more goods to this market.

Under the free trade agreement between ASEAN, to which Vietnam is a member, and Australia and New Zealand, Australia eliminated import tariff on around 96% of lines of imports from ASEAN in 2010 and the remaining by 2020.

In early August, the Vietnam Trade Office arranged for a delegation of Australian fishery companies to visit and inspect aquaculture farms in Vietnam. Later, it helped businesses from the southernmost province of Ca Mau participate in an international food expo in Australia.

In the first nine months of this year, Vietnam’s exports to Australia were valued at US$3 billion, a year-on-year surge of 24.5%. Crude oil took the lead with a value of US$1.4 billion in January-August, up 53.7%, followed by mobile phones and parts with US$243.1 million and seafood with US$144.3 million.

Popular products such as iron and steel, electric wire, pepper, and garment-textile all registered high growth.

Deputy Minister of Industry and Trade Tran Tuan Anh said the Australian market has a great demand for apparel, footwear, wooden furniture and fishery products that are strengths of Vietnam. However, he noted that this is a choosy market which requires strict regulations on the quality and the delivery time of products.

A dozen of Vietnamese garment-textile firms are expected to participate in an international trade fair in Australia by the year’s end.

Chemical Group marks 45th founding anniversary

Deputy Prime Minister Hoang Trung Hai has asked the Vietnam Chemical Group to focus on the development of key chemical industries to meet manufacturing, consumption and exports needs.

Speaking at the sector’s 45th anniversary on October 25, Hai said more training for professional staff should be done to mobilize resources for key products and exports.

“Vietnam Chemical Group must ensure successful implementation of its development strategy approved by the Prime Minister with a 2030 vision. Sufficient supply should be available to care for agricultural, rural industrialization while luring foreign investment in oil and gas, pharmaceuticals and basic chemical industries.”

On the occasion, Vice State President Nguyen Thi Doan presented the Independence Order, first class to the Group.

Top brands and Qmix 100 award winners announced

One hundred fifteen domestic business enterprises on October 24 were announced ‘Top Brands’ and ‘Qmix 100’ winners at an awards ceremony in HCM City by the Institute of Development Economics Research (IDR).

The businesses were selected based on an evaluation of the quality of their management, competitive edge, brand image, and efficiency of operations by third party independent reviewers.

The 115 businesses were recognized for having successfully adopted management procedures to develop the image of their brand while 23 businesses were selected Qmix 100 2014 for having increased their overall business competitiveness.

Investment and business seminar held in Canada

The Embassy of Vietnam in Canada has sponsored a recent seminar in Halifax, Canada to promote investment and business opportunities in Vietnam.

Those attending the seminar included Premier of Nova Scotia Stephen McNeil, Mayor of Halifax, Mike Savage and over 100 leading representatives of the Canadian business community.

In his opening speech, Vietnam Ambassador to Canada To Anh Dung elaborated on the stable political and business climate of the nation and the fine development of bilateral relations between the two countries.

The Vietnamese diplomat affirmed the Vietnam Government’s steadfast determination to continue improving the business environment and urged those in attendance to invest in the Southeast Asian country.

Vietnam Trade Councillor in Canada Hoang Anh Dung in turn gave a presentation and spoke with local business representatives, who expressed a high level of interest in doing business in the country.

For their part, Nova Scotia Premier Stephen McNeil and Halifax Mayor Mike Savage and other scholars were appreciative of the accomplishments of Vietnam in recent years and expressed satisfaction about the development of good relations between the two countries.

As Canada’s Atlantic gateway, they agreed Vietnam has many advantages including international deep water port, mineral resources and agro-fisheries products and said they hoped to further elevate trade ties.

During the working session with with Halifax Mayor Mike Savage and Halifax Port Authority on the same day,Dung announced plans to lead a delegation of businesses from Halifax to Vietnam to explore investment opportunities.

Russian energy corporation seeks cooperation opportunities

Chairman of Russia’s Rosatom State Nuclear Energy Corporation, Golubev Aleksey Viktorovich, is paying a working visit to Vietnam to seek investment cooperation opportunities.

The Russian guest revealed his visit's purpose at a recent meeting with Vice Chairman of the Hanoi People’s Committee Nguyen Hong Son.

Son, in turn, affirmed the capital city's willingness to promote cooperation opportunities with foreign partners.

ROSATOM is a global leader in the nuclear technology field, covering over 350 nuclear firms and research institutions operating in both civilian and defence sectors.

Construction begins on second made-in-Vietnam offshore oilrig

A ceremony to launch the construction of Tam Dao 05 offshore oilrig, the second locally-manufactured jack-up rig, was held in the southern province of Ba Ria-Vung Tau on October 25.

Invested by the Vietnam-Russia Oil and Gas Joint Venture (Vietsovpetro), Tam Dao 05 oilrig featuring the JU-2000E model of the American Friede and Goldman is expected to be completed within 32 months at a total cost of US$230 million.

The 120-metre jack-up rig weighs almost 18,000 tonnes when it is fully completed and can drill to a depth of 9 kilometres.

According to Vietsovpetro Director General Tu Thanh Nghia, the company is currently renting four foreign oilrigs at a total cost of US$220 million per year. This oilrig could help reduce the cost for the company, he added.

Tam Dao 05 platform manufacturer, PetroVietnam Marine Shipyard JSC (PV Shipyard), built the first made-in-Vietnam jack-up rig, Tam Dao 03, weighing nearly 12,000 tonnes. Tam Dao 03 platform, including a helicopter deck, can drill as deep as 6 kilometers.  

In addition, PV Shipyard also successfully upgraded Tam Dao 02 oilrig for Vietsovpetro in October, 2014.

Vietnam attracts US$13.7 bil in FDI in ten months

New and additional foreign direct investment (FDI) registered by foreign investors during the first 10 months of the year increased 71.2% on-year to US$13.7 billion, according to the Foreign Investment Agency (FIA).

During the 10 month period, 1.306 investment certificates were issued for new foreign projects capitalised at US$9.95 billion and 469 certificates were issued for supplementary capital of US$3.74 billion.

The manufacturing and processing sector leads in attracting foreign investment with 636 newly licensed projects capitalised at US$9.7 billion, followed by the real estate and construction sector.

The Republic of Korea remained the leading foreign investor, followed by Singapore, Hong Kong and Japan.

The FIA estimates foreign invested enterprises disbursed US$10.15 billion during the 10-month period, which represents a 5.9% on-year increase.

Exports of foreign invested enterprises (including crude oil) were US$82.48 billion, up 13.6% on-year, comprising 67% of total exports, while their imports hit US$68.66 billion, up 10.7% on-year, making up 57% of total import value.

The trade surplus for foreign invested enterprises collectively was estimated at US$13.8 billon for the ten month period.

First oil flows from Su Tu Nau oil field

A ceremony was held in Ho Chi Minh City on October 24 to receive the first oil flow from the Su Tu Nau (Brown Lion) oil field in Block 15.1 in the Cuu Long Basin offshore the southern region.

Deputy Prime Minister Hoang Trung Hai attended the ceremony and presented the oil field’s operator – the Cuu Long Joint Operating Company with the Labour Order, second and third class. Several individuals of the PetroVietnam Exploration and Production Corporation (PVEP) were also presented with the Friendship Order on the occasion.

The Deputy PM highlighted the significance of the event, which he described as a new step forward of Vietnam’s oil and gas sector.

PVEP Director General Do Van Khanh said the success of the project has opened up new prospects for applying the technology to the exploration and exploitation of small near-shore oil fields in the Cuu Long Basin as well as in other areas.

He said the Su Tu Nau is the 7th among the nine oil fields slated to be put into operation this year.

RoK businesses updated on labour policies

Businesses from the Republic of Korea were updated on Vietnam’s new labour policy at a workshop held by the Ministry of Labour, Invalids and Social Affairs (MoLISA) in conjunction with the RoK’s Chamber of Commerce and Industry in Hanoi on October 24.

MoLISA Deputy Minister Pham Minh Huan stated that the workshop also aims to help businesses in general and RoK investors in particular understand more about Vietnam’s labour market.

The deputy minister noted that the RoK is the biggest foreign investor in Vietnam as well as the third largest trade partner and the second biggest provider of official development assistance of Vietnam. There are now around 130,000 Koreans living in Vietnam and more than 4,000 RoK companies investing in the country.

He reported that by October 1 this year, Vietnam’s working age population stood at around 47.8 million.

During the workshop, delegates shared information about salary policies and the minimum wage as well as welfare for workers such as housing, social insurance and labour safety.

Vietnam promotes trade activities in Algeria

Vietnam, Algeria aim to raise two-way trade turnover to US$1 billion by 2020, told at a recent seminar in Annada, Algeria.

At the seminar, Ambassador to Algeria Vu The Hiep recalled the traditional ties between the two countries and hoped to promote investment and trade cooperation in line with fine political relations.

He revealed that Vietnam will expand operation of PetroVietnam at Bir-Seba joint venture, implement some new investment projects and send around 1,500-2,000 workers and technicians to work in Algeria.

Meanwhile, Trade Counsellor Nguyen Van Mui introduced Vietnam’s socio-economic development and international integration, and bilateral economic, trade and investment cooperation between the two countries to help the Algerian business community understand about the Vietnamese market.

A representative from the Annaba Chamber of Commerce and Industry talked about economic potential and investment opportunity in the province and encouraged Vietnamese businesses to invest in infrastructure, housing, utensils production, garment, footwear, manufacturing industry, electronics, fishery, irrigation and forestry.

The two sides also discussed measures to accelerate economic relations in the future and proposed the two governments sign cooperative agreements on trade, labour and investment.

Bridgestone inaugurates first tyre factory in Vietnam

Bridgestone Vietnam Ltd Company under the Bridgestone Asia Pacific (BSCAP) inaugurated the first tyre factory at Dinh Vu Industrial Zone in Haiphong City on October 24.

This is the largest foreign direct investment (FDI) project in Haiphong with capitalisation of US$447.8 million.

Bridgestone Vietnam began manufacturing radial tyres for automobiles as from April 2014 with productivity of 10,000 tyres per day. It expects to raise its productivity to 49,000 tyres per day and attract around 3,800 workers by 2017.

At the inauguration ceremony, Minister of Industry and Trade Vu Huy Hoang said Bridgestone’s choosing Haiphong as its destination demonstrates that the city is effectively implementing support policies to attract foreign investors, including those from Japan to contribute to the city’s socio-economic development.

Masaaki Tsuya, Bridgestone Group’s CEO said Bridgestone is the world’s leading rubber and tyre producer and its products are available in 150 countries.

Bridgestone Vietnam General Director Teruo Kunitake said the group wants to contribute to the country’s economic development. The company now has more than 1,100 workers, most of them are Vietnamese.

Hanoi hosts agricultural products and craft village fair

Leading Vietnamese enterprises are showcasing their products at the Hanoi Agriculture and Craft Village Fair 2014 which opened in the capital city on October 24.

The fair’s 200 booths introduce hi-tech agricultural products, safe vegetables, fruits, and fresh and processed food and seafood.

The event, which will last until October 27, is a good opportunity for local enterprises to promote their trademarks and honour traditional craft village value.

A number of trade promotion activities will be held in the framework of the exhibition, including cooperation contracts and experience sharing.

Trade shortfall hits US$438 million in two weeks

Exports in the first half of October dipped 13.9% compared to the second half of September to US$6.2 billion resulting in a trade shortfall of US$438 million, according to the General Statistics Office (GSO).

However, year-to-date, the nation’s export volume has jumped 14.1% on-year to US$116.04 billion, with foreign invested enterprises accounting for 61.8% of the total.

The nation’s imports were also down 3.3% over the second half of September registering in at US$6.63 billion.

Imports have to date jumped 11.6% on-year tallying in at US$114.2 billion.

Milk and dairy imports hit US$838 million

Vietnam imports of milk and dairy products for the third quarter jumped 4% on-year to US$838 million, according to the latest statistics of the General Department of Vietnam Customs.

The Republic of Korea was the largest supplier to the Vietnam market, making up 24% of market share at US$198.4 million, followed by Malaysia.

Vietnam also imports from other markets including the Philippines, Spain, Thailand, Germany and Denmark, US, Japan and Australia.

In the eight months leading up to September, Vietnamese milk and diary imports has enjoyed high growth, at 68% for markets recording positive growth.

New aerospace company hopes to fly high

A new Japanese invested enterprise manufacturing passenger doors for the Boeing 777 aircraft, MHI Aerospace Vietnam Co., Ltd. (MHIVA), got off the ground in Hanoi on October 22.

On its first official day of operations, the factory marked the shipment of its 1,000th inboard flap for the Boeing 737.

Spanning 6,500 square meters, the new plant is an extension of the MHIVA office in the Thang Long Industrial zone.

In the future, it will also produce a total assembly package for passenger doors of Boeing aircraft.

MHIVA said the factory will continue to promote cooperation with local partners to scale up production in Vietnam.

Vietnam, Laos cooperate in oil and gas pipeline project

Vietnam and Laos will conduct a feasibility study on a project building a bonded warehouse and two oil and gas pipelines running from Vietnam’s central province of Quang Binh’s Hon La island to the Lao province of Khammouane.

A contract signing ceremony was held in Vietnam on October 22 between PetroLao, Ennergy Commodities company from Slovakia, and the Association of Vietnam Investors in Laos (AVIL).

The project includes the building of a bonded warehouse, with a capacity of 300,000-500,000 cubic metres for temporary import and re-export to Laos, a seaport system to handle 50,000 tonnes vessels, and a 290 kilometres long oil pipeline from Hon La to Khammouna province.

As scheduled, the project will start in the fourth quarter of 2015 within 30 months, and is expected to put into operation by the end of 2017.

Green growth vital for Viet Nam

Dependency on coal and its carbon pollution for economic growth was no longer sustainable, officials told a forum here.

The officials, speaking at the Viet Nam Economic Forum for 2014 on Friday, said the country needed to focus on environmentally friendly business practices.

Green growth was essential for the economy and the people's well-being, said Dang Huy Dong, deputy minister of Planning and Investment.

The ministry recently announced a plan to promote the use of renewable energy and reduce carbon's hold on the economy. But, Dong said, this would require significant backing from domestic and foreign businesses who would need to reduce greenhouse-gas emissions, use more clean energy, and recycle more waste products.

Tran Dinh Thien, head of the Viet Nam Institute of Economics, said the Government would also have to reallocate human resources to commit to the green cause.

"More attention needs to be paid to developing technology industries and educating laboratory workers better to support them," Thien said. "The three major shortcomings of the national economy are its improper growth model, lack of competitiveness, and State governance."

To meet the ministry's green growth targets, Thien said Viet Nam needed to overcome its weaknesses by restructuring all sectors, especially manufacturing.

He also said upgrading infrastructure could improve the national economy and help attract foreign investment.

The country should also use technology to make agriculture practices more environmentally friendly, Thien said. To accomplish this, more businesses should involve themselves in agriculture, alongside farmers.

Nguyen Thi Tue Anh, deputy head of the Central Institute For Economic Management, said at the forum that the country needed to handle environmental protection and economic growth in tandem.

It could do this by encouraging businesses to reduce emissions and use less harmful technology.

In the long term, environmentally-friendly growth meant investing more in preserving, developing and effectively using natural resources, as well as curbing emissions.

Illegal software use could blacklist firms

Companies, especially exporters, using illegal computer software face the threat of being banned from access to large international markets like the US, experts warn.

Both local and international intellectual property laws are being tightened over time and penalties for intellectual property infringement made harsher, they said.

Thus, besides facing litigation risks in their own backyard, violating companies will also be blacklisted by big foreign importers, they said.

In Viet Nam, illegal use of software may leave businesses facing penal crimes and harsh penalties under the law. Copyright owners can request a court order to force perpetrators to stop the illegal act, tender a formal apology, take corrective actions, and pay damages.

According to international IP lawyers, exporters could face severe penalties since 36 US states have ratified the Unfair Competition Act, which requires all manufacturers and shippers around the world to use legal and licensed computer hardware and software in their business activities.

Tran Manh Hung of law firm Baker & McKenzie said companies could also face legal actions against them by competitors anywhere in the world.

Inability to prove the legitimacy of computer hardware or software, or failure to cease using illegal computer products within 90 days following receipt of a formal notice could be subject to compensation, confiscation, and, more importantly, being blacklisted for entering the US market.

But despite warnings, many companies operating in Viet Nam, both domestic and foreign, continue to violate the law.

In the past several months checks have been carried out at many foreign and local businesses companies and computer dealers, and most were found breaching software ownership to one degree or another – for example, foreign companies buy limited software licences as a cover-up.

Pham Xuan Phuc, deputy chief inspector at the Ministry of Culture, Sports and Tourism, said wholly foreign-owned companies know best about intellectual property laws but still deliberately violate them and illegally use intellectual property that does not belong to them for gain.

During a check carried out last month by the ministry and the High-tech Crime Police of the Ministry of Public Security, HCM City-based Taiwanese company Perfect Viet Nam Medical Industry Company was found using unlicensed software worth billions of dong.

On the 44 computers checked, the inspectors found 124 applications, including Autodesk graphic design software and even low-cost software like Lac Viet's dictionary. Of the 124 applications, the company could produce licences for only 10.

Viet Nam News got in touch with the company, but it refused to answer any questions.

European business confidence rising

The business confidence and outlook of European businesses in Viet Nam continued to rise, according to the 16th quarterly EuroCham Business Climate Index (BCI) survey.

The survey, conducted in September 2014 and released on Thursday, revealed that in the third quarter, the BCI climbed from 66 to 74, approaching previous levels in the first quarter of 2011. The increase was attributed to high hopes and expectations regarding current negotiations on the European Union-Viet Nam Free Trade Agreement.

"We see a clear trend where the European business community is excited and gearing up for the future. The signing and, more importantly, the realisation of the FTA, will be crucial steps in assuring that these preparations have not been made in vain," European Chamber of Commerce (EuroCham) executive director Csaba Bundik said.

Nearly half of respondents assessed their current business situation as positive while only five per cent found it to be very poor. Notably, the major change came from respondents that perceived the business situation as negative, declining from 21 per cent last quarter to a single digit at eight per cent this quarter.

Of those surveyed, a majority had a positive business outlook and perceived a future FTA to assist in realising this positive business environment.

According to the survey, up to 61 per cent of EuroCham members thought the macroeconomic situation in Viet Nam would stabilise and improve while 24 per cent said the situation would not change, and 15 per cent expected it to deteriorate.

Meanwhile, the inflation rate estimates of third quarter respondents was higher, increasing from 4.26 per cent to 4.61 per cent.

With high expectations of macroeconomic stability and improvement as well as general expectations of an improved business outlook, a moderate rise in inflation is a logical and expected outcome, the survey said.

Apartments scaled down

A number of high-end apartments here have been converted into medium-end apartments and offered at lower prices to attract more customers and reduce large inventories, experts said.

The price of high-end apartments was reduced from VND38 million to VND 45 million per square meter a few years ago to VND30 million per square metre today because these were priced beyond most peoples' incomes, reported Infonet online newspaper.

Investors took out high-end interiors and delivered nearly-completed instead of completed apartments to be able to bring down prices. The size of high-end apartments was likewise reduced to further bring down the price to VND22 million to VND30 million per square metre.

Affected projects include Ho Guom Plaza, Golden Palace, Golden Land and Spark Hoang Quoc Viet, as well as CT1 Trung Van and Green Star.

The market for high-end apartments has remained gloomy for several years while the market for medium- and small-end apartments has remained bright because the latter were priced within most peoples'incomes.

Nguyen Van Duc, the HCM City Real Estate Association deputy chairman, said investors were more concerned about increasing sales, reducing inventory and paying debts than they were about protecting their reputation.

The Thoi bao Ngan hang (Banking Times) newspaper quoted Nguyen Vinh Tran, Nam Long Investment Joint Stock Company general director, as saying the scaling down of high-end apartments to make them more affordable was a temporary trend and that the domestic property market was not recovering as quickly as expected.

The recovery of the domestic property market requires co-operation among investors, customers and State management offices, as well as general solutions on State and investors' financial and customer care policies, Tran added.

Securing land use rights drags on

The capital city people's committee has expressed concern over slow progress in the granting of land use rights and house ownership certificates to residents.

The committee said the number of certificates granted by end-September did not go according to plan. A report showed that in the first nine months of 2014, only about 3,815 or 68.5 per cent of the target number of certificates were granted to households.

So far, nearly 1.25 million certificates, or 85.7 per cent of the city's target land slots and 99.6 per cent of slots eligible for certificates, were granted.

The authorities asked that the accountabilities of management agencies and investors in the slow granting of land use rights and house ownership certificates be specified.

The committee pointed out that the main cause for the delay was investors' non-compliance with planning, construction, transactions and land use fees.

It ordered the Department of Natural Resources and Environment to make a list of investors who were slow in submitting documents required for the granting of certificates and publish the list on the department's e-portal. Investors found guilty of violations will be barred from participating in other housing projects.

Previously, the Department of Natural Resources and Environment proposed that the time for administrative procedures in granting red books in housing projects and new urban areas be reduced from the current 60 days to only seven days.

Companies offer bonds to individuals

Corporate bonds, inherently meant for organisational investors, are being offered to individual investors as companies wish to raise capital.

Small investors were not supposed to buy bonds due to their high costs. The buyers of bonds were often commercial banks.

Among the first two bond offers being made are by Vietcombank Securities and Tri Viet Investment (TVC). Tong Minh Tuan, Vietcombank Securities Co's head of corporate finance, said that 50 individual investors have registered to buy all its bonds worth VND200 billion (US$9.4 million). On average, each person registered VND2 to VND5 billion ($94,300-235,800).

Tri Viet Investment's bond issuance is worth VND30 billion ($1.4 million) and has not yet been launched.

The bond yields of both companies are higher than the bank rates, helping to lure investors. Vietcombank Securities' bonds yield 8.5 per cent per year, 2.3 per cent higher than its mother bank's deposit rate for the same period. The brokerage will buy back the bonds before maturity on demand, six months from the date of issuance.

Meanwhile, Tri Viet plans to offer a 10.5 per cent rate.

This is proof that corporate bonds are a favourable way of raising capital when banks are tightening loan terms to prevent bad debts. The proceeds, in turn, will probably be used for margin lending.

Tri Viet's board member Quach Manh Hao said in an interview with Dau tu chung khoan (Securities Investment) that the bond market is a forgotten potential segment.

Tuan expects his company to attract more customers thanks to diversified individual portfolios, including shares and bonds.

He also proposed to conduct a second issuance which will be double in value.

One of the remaining problems is the issue of safety of buying bonds, as there is no unified trading system for corporate bonds. Meanwhile, compared to bank deposits which allow investors to withdraw before maturity, it is almost impossible to do so with corporate bonds.

A couple of years ago, some open-ended funds tried to connect small investors with government bonds, but their strategies failed due to the hesitation of the investors.

Viet Nam's dairy imports up in first nine months

Viet Nam imported dairy products worth US$838.1 million in the first nine months of this year, a month-on-month rise of 4.2 per cent, according to the General Department of Viet Nam Customs.

In the third quarter, Viet Nam imported $246.8 million worth of dairy products, an increase of 4.8 per cent compared to the same period last year.

Korea was the leading dairy exporter to Viet Nam in the first three quarters, accounting for 23.6 per cent of imports worth $198.4 million. Malaysia ranked second with $192.7 million.

Viet Nam also imported dairy products from the Philippines, Spain, Thailand, Germany and Denmark.

Ha Noi city to develop 77ha urban area

The capital city people's committee has approved urban development plans for a 77ha area in the southwest.

The area, including Dan Phuong District's Tan Hoi and Tan Lap communes and Hoai Duc District's Duc Thuong commune, will have a population of 11,000 with modern infrastructure and green space. The plans specify the city's urban development strategy from 2030 to 2050.

HCM City issues licences to four projects

The people's committee here has granted licences to four projects worth more than VND4 trillion (US$190 million).

Ben Thanh-Sao Thuy Company is investing VND3.6 trillion in a 17,577sq m site for a building, hotel and commerce complex in District 1's Da Kao Ward. The project is expected to provide 1,000 apartments and will become operational by 2020.

The Real Estate 11 Company is investing VND214 billion in the high-rise building Res 11 in District 11's Ward 3. The building will have 20 floors with 116 apartments and is expected to be completed in two years.

Covering a 1,496sq m area, the VND95-billion Binh Dong Xanh Project of Sai Gon 5 Construction and Commerce Company in District 8's Ward 13 will have 56 apartments for an estimated 250 people. It will become operational in 18 months.

Sugar firms merge

Thanh Thanh Cong Tay Ninh Sugar Company will issue an additional 37 million shares for swapping with shares of Gia Lai Cane Sugar Thermoelectricity Jsc (SEC).

The swap will be done at a ratio of 1-1. Afterwards, the company, listed on the HCM City Stock Exchange as STB, will hold 100 per cent of SEC's charter capital. SBT said that in merging SEC with SBT, the company aimed to comply with the Law on Competition.

Water company sees inflow from IPO

Trung An Water Supply Company Ltd. earned VND20.6 billion (US$970,000) from its initial public offering at the HCM City Stock Exchange yesterday.

All shares were sold at a price of VND15,600 ($0.75) each, or 56 per cent higher than the initial price, to 22 organisations and individuals.

More than 1.3 million shares were put on auction at the company's IPO while the total number of shares that investors registered to buy were three times higher.

Most Ha Noi-listed firms see profits

About 87 per cent, or 179, of the 206 companies that have issued financial reports at the stock exchange here have announced profits.

Stock exchange figures showed that a total of 206 of the 208 companies listed issued financial reports on time even if they were not required to do so, and their combined profits posted a 33.5-per cent year-on-year increase. But the combined loss of 27 listed companies posted a whopping 98.2-per cent year-on-year increase.

Southern region needs connections

The Southern Key Economic Zone, which comprises HCM City and seven provinces, has succeeded in improving its infrastructure and economy since its establishment in 1998, but still needs to improve connections among provinces to exploit its competitive advantages.

The area, which includes the provinces of Binh Duong, Tay Ninh, Binh Phuoc, Ba Ria – Vung Tau, Long An, Tien Giang and Dong Nai, accounts for only eight percent of the country's area, but produces 42 percent of national GDP and contributes 60 percent to the national budget.

The zone, the country's economic driving force, plays a leading role in international integration and economic cooperation.

The GDP growth rate in the region remained at 11 per cent annually between 2001 and 2010.

In 2000, annual per capita income in the region was VND11.4 million (US$542) and five years later rose to VND23 million (US$1,095). In 2010, it was VND48.6 million (US$2,314) and the following year, VND56.7 million (US$2,700), according to HCM City Institute for Development Studies.

Speaking at a workshop held yesterday at Viet Nam National University – HCM City, Le Vinh Tan, deputy head of Central Economic Commission, said the area needed better linkages and training for human resources.

He noted that the area, with 17 percent of the country's population, continues to have dynamic economic growth.

More effective linkages would help reduce infrastructure pressure in major urban centres, Phan Thanh Binh, director of Viet Nam National University – HCM City, said.

The high urban growth rate has contributed to the development of the economy but has also created challenges in delivering accessible housing and urban services.

Rapid growth has also led to natural resource depletion and environmental degradation.

Urban sprawl, the loss of agricultural land and the impact of climate change have all exacerbated urban development problems.

In such a context, regional planning and linkages are effective approaches and the key to ensuring optimal spatial allocation of socio-economic activities, and equal development between regions, according to experts.

Better land-use planning in the region would also help strengthen regional integration, maximise the efficiency of investments, and reduce the spatial footprints of regional growth.

Architect Ngo Quang Hung, deputy head of Southern Institute for Spatial Planning, predicted that by 2020 the urbanisation rate would be roughly 80 percent and by 2050, 90 percent.

During the three-day workshop, local and international experts will provide technical support for urban planning in HCM City and other provinces and cities in the Southern Key Economic Zone.

Binh said the workshop had been a great opportunity for officials to learn about urban and regional planning, and integration of land-use planning with public transportation. Local governance and financial resources for urban development were also discussed.

Second ETF launched in capital

Saigon Securities Inc (SSI) officially launched its exchange-traded fund (ETF) at the Ha Noi Stock Exchange in the city yesterday.

The ETF SSIAM HNX30 is the second domestic ETF fund and the first to simulate the domestic HNX30 index set, said Nguyen Khac Hai, deputy general director of SSI Asset Management Company (SSIAM).

According to Hai, the ETF is a new product that was launched to help investors balance the risk and profitability of their investment channels, consisting of banks and stocks.

The deputy director noted that investors, especially the new ones, often made low profits from bank savings or faced high risks at the stock market. With the help of SSIAM, one of the leading asset management companies in Viet Nam, they will have more and better options, Hai added.

He revealed that the HNX30 items had very high liquidity, including stocks, which had a liquidity of more than 10 per cent.

SSI said HNX's value at the northern bourse in the last nine months had increased by 84 per cent compared with that of the entire 2013.

From early 2012 to date, on a period of either three, six or 12 months, HNX30 has proven to be more effective than other indices such as HNX-Index, as well as VN30, VN-Index, Market Vector VN Index and FTSE VN Index.

Founders of the fund include SSIAM, Bao Viet Securities Company, Vietcombank Security and VnDirect.

The fund is expected to mobilise at least VND50 billion (US$2.3 million) through its initial public offering, which began last October 27 and ends on November 21.

Hai said foreign investors would likely refrain from participating in the primary market, however, and would probably invest in secondary trading after witnessing traded funds.

According to SSI, the second domestic ETF will likely be listed at the Ha Noi Stock Exchange in December.

FPT finds another partner in Europe

Uwe Schlager, Director of FPT Germany, an affiliate of Vietnam’s information technology corporation FPT, signed a memorandum of understanding with the Germany-based management consulting firm Xspera.

Accordingly, FPT Germany and Xspera will jointly carry out a number of technological cooperation projects on the application of technology.

Xspera will establish a software development centre using skilled FPT staff in Vietnam to serve the company’s clients.

At the same time, the company will also increase its value chain by utilising FPT’s capacities to implement and maintain specialised technology and applications.

Established in late 2012, FPT Germany has representative offices in Frankfurt and Essen. Its operations in Germany focus on energy, banking, and telecommunications.

Xspera is a management consulting firms that operates globally. It provides advice on b usiness development, management and operations for businesses in the information and communications technology sector, in production, and services. The firm aims to optimise enterprises’ assets, utilise information technology to boost business, and improve financial performance.

Opportunities awaiting investors

Many opportunities are awaiting investors between now and 2015 with forecasts of the positive economic recovery and the growth of the stock market, according to experts.

Over the past 18 months, the macro economy has been gradually stablised and started recovering thanks to the Government’s positive reform on the investment climate, especially policies to facilitate foreign investors’ operation, they said.

Chief Executive Officer of the asset management and real estate development firm VinaCapital Don Lam said foreign investors are keen on investment opportunities in Vietnam , specifically in food and beverages, and consumer goods.

Many are paying attention to the equitisation of State-owned enterprises (SOEs) from now to 2015, particularly in the field of infrastructure.

Japanese investors, for example, are studying information on power plant projects of the Electricity of Vietnam (EVN) Group and the Vietnam National Coal and Mineral Industries Holdings Corporation (Vinacomin).

The Vietnamese Government’s determination and efforts to reform the institutional and administrative systems, improve the investment environment, and enhance business competitiveness have also positively impacted on the stock market as reported by Prime Minister Nguyen Tan Dung at the opening eighth session of the 13th National Assembly in Hanoi on October 20.

According to the VinaCapital, the market will see higher growth from now to 2015 as inflation and interest rate are currently at low level.

Foreign investors have also showed more interest in the stock market than real estate, said CEO Don Lam.

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