Vietnam-UK direct air route to open in December

The national flag carrier, Vietnam Airlines, has announced that a new air route between Vietnam and the UK will open on December 8.

The airline is expected to use Boeing 777 aircraft to operate seven flights per week by 2014. London Gatwick is selected to run the new air route.

At present, two-way trade turnover between Vietnam and the UK hits more than US$2 billion per year. The number of British customers to Vietnam is expected to increase by over 20 percent per year.

Gatwick is about 46km south of London, near the financial centre and considered London’s second largest airport. It is also listed among the world’s ten biggest airports.

Currently, Vietnam Airlines is making all necessary preparation for the first flight.

RoK consortium keen on Vietnam’s solar energy

Hanwha Group President Kim Seung – Youn expressed interest in solar energy in Vietnam, especially Ho Chi Minh City, during his meeting with the city’s Party Secretary Le Thanh Hai on June 18.

Kim described Vietnam as an attractive market and HCM City – the nation’s largest economic and industrial hub – as ideal for investment, especially in solar energy.

In return, the executive of the leading industrial consortium from the Republic of Korea was assured of best available conditions for foreign investors, including those from the RoK, to make profit in the city.

Hai said that HCM City takes the lead in development and integration, which also means that it is the nation’s greatest energy consumer.

In the new stage of development, the city will face more difficulties in power generating sources.

Vietnam attends ASEAN-SEAFDEC Conference

The ASEAN-SEAFDEC Conference under the theme “Sustainable Fisheries for Food Security Towards 2020 - Fish for the People 2020: Adapting to a Changing Environment” was held in Bangkok, Thailand on June 17.

Chi Tien Vinh, deputy head of the Directorate of Fisheries said that in the past decade, Vietnam’s seafood sector has made remarkable progress, especially in exporting tra and basa fish. The sector earned US$5 billion from exports and contributed to reducing poverty and protecting national sovereignty protection at sea. Vietnam is willing to cooperate with other countries in the regions to develop sustainable aquaculture in Vietnam’s East Sea to benefit future generations.

Vietnam also shared its experience in sustainable and profitable tra and basa fish aquaculture. At the conference’s closing ceremony, a joint statement was released by ASEAN Ministers and the Southeast Asian Fisheries Development Centre.

The statement focused on producing aquatic products for food security and poverty reduction, improving the effective management of aquaculture and strengthening adaptation to climate change, as well as increasing the competitive edge of seafood products in the world market, encouraging the efficient use of energy and promoting renewable energy.

In 2010, the Vietnamese seafood sector earned US$5 billion from exports with tra exports reaching more than US$1 billion. In the first six months of this year, Vietnam earned more than US$3 billion in export turnover. The sector has targeted a turnover of US$5.5 - 6 billion for the whole year. Currently, the US is Vietnam’s largest seafood export market, followed by Russia and Ukraine. Vietnam also plans to penetrate the Central Africa market in the future.

Vietnam aims to diversify its aquaculture and apply new technologies for breeding clean tra and basa fish, ensure food safety and hygiene and seek new aquatic products.

Vietnam has cooperated with many ASEAN nations in the field of aquaculture. It has signed agreements on exploiting seafood products with Indonesia and the Philippines and plans to enter similar deals with Myanmar and Malaysia in the future.

Vietnam also aims to cooperate and exchange information with Thailand in this field.

Foreign firms buy stakes in PetroVietnam

The Vietnam National Oil and Gas Group (PetroVietnam) has signed deals to sell stakes in real estate and securities companies to partners from the Republic of Korea (RoK).

Under the agreements, which were signed at an ongoing conference on trade promotion in RoK, Hanshin Group will purchase a 10 percent stake in the PetroVietnam Construction Joint Stock Corporation and the Shinhan Investment Group will buy a 15 percent stake in PetroVietnam Securities Incorporation.

PetroVietnam Deputy Director General Nguyen Tien Dung said that this was part of the group's five year plan, during which time it would focus on four key areas: oil exploration and exploitation both at home and abroad, petrochemistry, thermo-electricity and other clean energies, and technical services in the oil industry.

The group would retain its 100 percent stake in PetroVietnam Exploration Production Corporation to ensure the target was met, he said.

In addition, PetroVietnam Insurance's strategic shareholder, the Oman Investment Fund, has decided to raise its holdings in the Vietnamese partner.

Vice chairman of the PetroVietnam board Hoang Xuan Hung said that the two sides had reached an agreement to enhance co-operation, particularly in oil and gas.

The Oman Oil Company has also agreed to invest in the Ca Mau Fertiliser Plant project, which is expected to go into operation in 2012.

Both sides will sign the detailed contract in Q3.  PetroVietnam estimates its first half total revenue will reach VND340 trillion (US$16.5 billion), up 45 percent year-on-year and 68 percent of the group's target for the year.

Oil sales are projected to earn US$5.8 billion, up 34 percent from the same period in 2010, and equivalent to 69 percent of its annual goal.

In the first half of this year, PetroVietnam disbursed a total investment worth more than VND46 trillion (US$2.23 billion), equivalent to 37 percent of the total it projected for the whole year.

HCM City needs VND14 trillion to put cables underground

The HCMC Power Corporation will spend some VND14 trillion, or nearly US$700 million, in the next ten years to put all the electricity and telecom cables along main streets underground in an effort to improve the city's landscape, the company said.

Pham Quoc Bao, deputy general director of the power corporation, said on Thursday that the corporation would carry out the project to remove all messy overhead low- and medium-voltage power and telecom cables along 340 main streets with a combined length of 5,000 kilometers in the 2011-2020 period.

The corporation announced the project on Thursday after receiving the final approval from the city government early this month for carrying out the.  

For the first phase of the project between now and 2015, the corporation will focus on putting underground low- and medium-voltage power wires and telecom cables along main streets in District 1 and District 3. Bao said the budget for implementing the first phase of the project would be about VND6.5 trillion.

“Firstly, in 2011, the corporation will start with 19 streets with a total length of 60 kilometers,” he said.           

Work will start first on some of the downtown streets, including Ton Duc Thang, Le Duan, Dong Khoi, Nguyen Hue, Le Loi, Ham Nghi and Tran Hung Dao streets.

For the second phase from 2016 to 2020, the corporation will continue the job an all remaining main streets with a total budget of some VND7.5 trillion.

Bao also said during the time for digging trenches along the pavements to put cables underground, the corporation would try not to trouble the daily activities of local people.

In 2010, HCMC Power Corporation successfully carried out a pilot plan of putting messy electricity and telecom cables along the 2.5 kilometer stretch of Tran Hung Dao Street in District 1 between Nguyen Van Cu and Nguyen Cu Trinh streets with a total budget of VND50 billion.           

The HCMC Power Corporation manages 400 kilometers of 110kV cables, 5,080 kilometers of 15kV power lines and 9,500 kilometers of lower-voltage lines. The city has over 20 telecommunications companies with hundreds of thousands of kilometers of cables and power posts.

Sweden promotes cooperation in waste treatment

A delegation of Swedish companies is in Vietnam from June 13 to 17 to visit Danang, Quy Nhon, HCMC and Vung Tau to sound out cooperation opportunities in waste treatment and generation of energy from waste.

At a conference on partnership between Vietnam and Sweden in sustainable development held in HCMC on Thursday, Swedish experts shared experiences in successfully implementing waste classification from households and produce biogas fuel for city buses.

In addition, the delegation and officials of HCMC had exchanges to concretize projects and areas which have high potential for the two countries’ cooperation in the near future.

Nguyen Van Phuoc, deputy director of the HCMC Department of Natural Resources and Environment, told the Daily on the sidelines of the conference that he had interest in producing energy from waste, especially with technologies from Sweden.

According to the HCMC Department of Natural Resources and Environment, an average of 6,500 tons of waste is collected daily. About 80% of the waste volume is buried, while 20% is processed into fertilizer.

The city targets to lower the buried amount to 10% by 2020.

Previously, some cities in Vietnam have implemented plans to classify household waste but the effort has failed.

The delegation is expected to visit Vung Tau after its meetings in HCMC.

There’re about 80 enterprises of Sweden doing business in Vietnam. Sweden ranks 41st among 92 countries and territories investing in Vietnam, with 29 projects totally worth US$72.1 million, according to Foreign Investment Agency under the Ministry of Planning and Investment.

EuroCham says larger GreenBiz to take place in city

The second edition of GreenBiz Conference and Exhibition on European Green Business Solutions (GreenBiz 2011) will kick off on September 15 in HCMC in a much larger scale and scope, giving Vietnamese firms various ideas and options for sustainable production and development, organizers said.

The European Chamber of Commerce in Vietnam (EuroCham) introduced the GreenBiz 2011 to reporters in HCMC on Thursday. EuroCham chairman Alain Cany said the two-day event would be held in partnership with the Vietnam Chamber of Commerce and Industry (VCCI) and the Investment and Trade Promotion Center in HCMC (ITPC).

Cany said around 100 corporate exhibitors would showcase their green technologies and solutions at the GreenBiz 2011 and expected that more than 4,000 corporate representatives would visit the event at the White Palace Convention Center in Phu Nhuan District. The GreenBiz 2009 attracted some 3,000 visitors.

Cany said, “Sustainable Cities” had been chosen as the main theme of the upcoming event. “Bearing this in mind, the GreenBiz 2011 Exhibition will showcase solutions for sustainable cities in all areas concerned, from sustainable buildings, healthcare and public administration facilities to transportation, harbors and airports.”

Organizers will also bring together government and corporate representatives as well as experts of relevant organizations to discuss various aspects of green development for Vietnam. These include efficient use of water, investment and finance for new technologies, climate change and energy consumption and supply, environment-friendly manufacturing, and sustainable cities among others.

Formosa pushes on with its mega project

After a three-year delay caused by site clearance issues, Taiwanese-backed Formosa Plastics Group is now pushing head with construction of its mammoth steel and seaport complex in central province of Ha Tinh. It’s a move that has encouraged other investors to kick start their own projects in the zone. Ngoc Linh reports.

On a 2,000-hectare site at coastal Vung Ang economic zone in the central province of Ha Tinh, Formosa Plastics Group (FPG), through its subsidiary Formosa Ha Tinh Steel Corporation, is hastily carrying out the first stage of works on its mammoth steel and seaport complex.

The site will be home to what Hsu Chih Hao, a manager at Formosa Ha Tinh Steel Corporation, said would be among the top five largest steel manufacturing factories in the world.

“We are pushing the construction process to ensure we put the factory into operation in 2014,” said Hao.

To date, FPG has pumped about $150 million into this project, said Hao. That doesn’t include the $30 million the group gave to Ha Tinh People’s Committee for site clearance.

What FPG is now doing in Vung Ang economic zone has dispelled doubts over its seriousness in regards to this $8.9 billion project and its financial ability after three years of delay.

Those doubts boiled over last summer when some local media outlets said the FPG had no intention of developing the site.

But now FPG, which is making its first foray into the steel industry, is realising its plans. In the first phase of construction, FPG will build a steel factory with total annual capacity of 7.5 million tonnes. In the second phase, the investor plans to raise investment to $16 billion to build a factory with total annual capacity of 15 million tonnes of steel.

Hao blamed the project’s three-year delay on slow site clearance. Originally Ha Tinh People’s Committee promised to complete site clearance within eight months. Instead, FPG had to wait until the end of last year to take hold of the entire cleared site.

“We are satisfied with the construction progress of Formosa at present. It is doing very well,” said Phan Binh Minh, deputy director of Vung Ang Economic Zone Management Authority.

FPG is currently dredging a channel to provide access to the sea at Son Duong port.

At the same time, it is also levelling the project site. Those works are expected to be completed by the end this year.

During the process of dredging the channel, a hopper dredger hit a mine left over from the Vietnam War and was broken. However, Hao said this would not seriously impact on the construction schedule of the project. “There are many difficulties, but we are sure we will start the construction of the steel factory by the end this year,” he said.

Last week, FPG also kicked off construction of the first phase of the 250ha, 14-berth Son Duong port which will mainly serve the steel factory. Furthermore, the Taiwanese company would also start construction of a 750 megawatt thermoelectricity plant in this site to ensure the power supply at the complex.

FPG’s port and steel manufacturing factory complex are expected to be a driving force for the development of Ha Tinh province in particular and for the central region in general. The investor estimates the project, once completed, could create 10,000 direct jobs and about 100,000 indirect jobs.

Minh is also upbeat about the impact of FPG’s construction. “Actually, the implementation of Formosa’s project is breathing new life into other projects,” he said, adding that Vung Ang would be a hub of steel industry in Vietnam.

With its huge labour requirements, the FPG project will need a series of service projects nearby. According to Vung Ang Economic Zone Management Authority, the zone has attracted more than 60 investment projects so far. These include a vocational school and hi-tech park invested by Korean Vison Land Ltd and a $78 million five-star hotel and office building complex invested by Human City Company.

Also on the cards is the Polaris KTY-invested Tau Voi Lake tourism project, capitalised at $70 million.

Minh said the implementation of those projects had been relatively slow until FGP took hold of its cleared site.

“[Now] they want to put the projects into operation soon to serve the demands of workers and staff at Formosa’s project,” said Minh.

HCM City suggests ODA capital for environmental projects

HCMC’s government has suggested the Ministry of Planning and Investment use ODA (official development assistance) from the World Bank (WB) and Asian Development Bank for the second phase of the city’s Environmental Hygiene Project this year.

Tran The Ky, deputy director of the city’s Transport Department, said the second phase is expected to cost around US$470 million to improve the environment and standard of living for residents, restore and protect the Saigon River ecological system and the river’s lower section.

The city will also use the capital to completely treat wastewater discharged from Nhieu Loc-Thi Nghe Canal Basin before letting it run into the Saigon or Dong Nai rivers. The project will be implemented during the 2013-2017 period.

According to the management board of Nhieu Loc-Thi Nghe environmental hygiene project, the first phase including dykes and lighting system has finished while remaining works, the bidding pack No. 10 for dredging the canal, will be completed in September.

Local government last year canceled a contract with contractor China State Construction Engineering Corp. as the WB asked HCMC to reject this contractor because one of its subsidiaries in the Philippines was involved in a bribery scandal.

To solve the problem, the department has divided the bidding package into four smaller packages and given to domestic contractors. The WB last year delayed completion of phase one until September, instead of two earlier deadlines of 2009 and June 2010.

The project so far has cost US$316.8 million with US$294 million coming from ODA funds.

FPT, Ficombank ink IT cooperation deal

FPT Information System Joint Stock, or FPT IS, on Thursday signed a strategic partnership with First Commercial Bank (Ficombank) to provide information technology (IT) system and consulting services to the lender.

FPT IS deputy general director Nguyen Tuan Hung said the enterprise would provide professional human resources and set up a strategy to modernize the bank in short, medium and long-term vision. The IT firm will also help solve IT related problems, train staffs and help expand IT projects for Ficombank.

“FPT IS will also take charge of negotiation with producers to provide best solutions for Ficombank,” Hung added.

Meanwhile, FPT IS and its affiliates will prioritize using Ficombank’s financial services and jointly promote brands of the two sides on the market.

HCMC to set up technology trading floor

A technology trading exchange floor will be established in HCMC this year to boost trade promotion, according to the city’s Department of Science and Technology.

Phan Minh Tan, director of the department, said that the trading floor will aim to supply science and technology information for various sectors as well as linking buyers and sellers through consulting and evaluation services.

The floor will enable scientists and businesses to interact and advertise their products and research, he said, adding the floor must be a place that scientists and researchers can trust and immediately think of when they have new products.

This move is considered a strong step forward creating and promoting the development of the technology market in HCMC in particular and Vietnam as a whole.

Tan said that many Vietnamese small and medium-sized companies (SMEs) in the city are working on business expansion plans as well as technological innovation. Most investors in Export Processing Zones (EPZs) and Industrial Zones (IPs) are SMEs in labor-intensive industries like textile and clothing, footwear and electronics, he said.

He noted they need to change equipment and technology to compete. Many international manufacturers of industrial machines and equipment have recently considered Vietnam a potential market for expanding their business, so they joined many fairs and exhibitions in Vietnam to sell their products.

The companies said Vietnam, as one of the fastest growing ASEAN countries, is expected to become a newly-industrialized country. This will make Vietnam one of the world’s most potent markets with vast opportunities for international suppliers.
 
MTA Vietnam continues to serve manufacturing industry

More than 300 companies from 27 countries and territories are expected to participate in a precision engineering, machine tools and metalworking technology exhibition and conference next month in HCMC, MTA Vietnam 2011 organizers said on Thursday.

The eighth annual show will bring a host of international brand names and the latest technology to Vietnam, according to Exhibition Services Co. of the Vietnam Chamber of Commerce and Industry and Singapore Exhibition Services Co. on Thursday.

Bui Thi Thuc Anh, director of Exhibition Services Co., said that the event had gained the interest of key international industry players, making it the premier sourcing and networking platform for professionals in the manufacturing sector. It will be the largest ever machine tool and metalworking exhibition in the city.

Firms in sectors like aviation, automobile, precision engineering, electricity, electronics, construction, supporting industries and chemicals will introduce their latest products at the MTA Vietnam 2011 scheduled for July 5-8 at the Saigon Exhibition and Convention Center in Phu My Hung in District 7.

Vietnam’s manufacturing industry has seen some growth according to the country’s Ministry of Planning and Investment, with the sector ranking second last year in terms of attracting Foreign Direct Investment (FDI). This was up from third in 2009 with a 127% increase in registered capital.

With the country’s manufacturing industry progressing as a result of government initiatives, World Trade Organization (WTO) commitments and industrial liberalization, the country is set to become one of Southeast Asia’s major manufacturing hubs.

That is the reason why many international machine and equipment makers are looking to strengthen and build their presence in the country.

According to organizers, many major companies exhibiting at MTA Vietnam 2011 include global trading company Yamazen, Amada, Blum, Bystronic, Campro, Carl Zeiss, Chin Fong, DMG/MORI SEIKI, Fair Friend, Guehring, Heidenhain, Jainnher, Mitsubishi Electric, Mitutoyo, Mazak, MST, Nikon, Renishaw and TRUMPF.

The event will feature a strong international presence with group pavilions from China, Germany, Italy, Japan, Korea, Singapore, Taiwan, Thailand, Turkey and the U.K.

Fishery processors crippled by severe material shortage

Many local fish processors at a review meeting in HCMC on Tuesday lamented that the industry might face numerous shutdowns in the coming time as the shortage of materials has become highly critical.

Nguyen Thu Sac, vice chairwoman of the Vietnam Association of Seafood Exporters and Producers, or Vasep, told association members at the meeting that many processors would likely lay off workers, scale down production or even shut down business due to the shortage of materials.

She explained that the total output of both natural catch and farmed fish had tumbled in recent months. The situation has become further aggravated as Chinese traders have competed harshly with local processors to buy materials from both sea-faring vessels and farmers.

Pham Xuan Nam of the Khanh Hoa-based Dai Thuan Joint-stock Company said the volume of fish his company purchased from fish ports in Nha Trang met only 30% of his company’s processing capacity.

To avoid breaching contracts signed with foreign buyers, local processors in vying for materials have pushed up prices, which may result in big losses for them.

Many processors are seeking to import materials from other countries, but supplies are also restricted. The vice chairwoman of Vasep said Indonesia had recently imposes a ban on the export of unprocessed seafood, making it difficult to source materials for their production.

The shortage of materials is especially critical for shrimp, according to Truong Dinh Hoe, general secretary of Vasep. Hoe said the shortage of fresh shrimp for processing would continue into next year, and many enterprises are asking for approval from the agriculture ministry to import shrimp from South America for processing.

There are around 147 local seafood processors and exporters struggling with material shortage, according to Sai Gon Giai Phong newspaper.
 
Power up eases pressure on grid

Two more hydropower plants have just plugged into the national grid adding 1.3 billion kilowatt hours of electricity each year to the supply.

Electricity of Vietnam (EVN), the country’s sole electricity distributor recently stated that the first turbine of An Khe-Ka Nak hydropower plant had successfully joined the national grid.

The Gia Lai province plant has a capacity of 173 megawatts with an average electricity output of 701.5 million kWh annually.

Meanwhile, the second turbine of Dong Nai 3 hydropower plant with a capacity of 90MW was hooked up to the national grid last week.

Dong Nai 3 hydropower plant is one of four existing projects on Dong Nai River including Dai Ninh, Srok Phu Mieng, Dong Nai 3 and Dong Nai 4. Dong Nai 3 has two turbines with a total designed capacity of 180MW to provide an average electricity output of 607 million kWh per year.

The first turbine of Dong Nai 3 hydropower plant was commissioned in January of this year, seven years after the plant’s construction started.

EVN reported that late last week the first two turbines of the Son La hydroelectricity plant, which joined the national grid in January and April this year, had generated more than 2 billion kWh of electricity, or nearly half the power generated by the whole country in a month. EVN representatives said the installation of the third and fourth turbines of the plant was on schedule and the third turbine would go live in August while the the fourth turbine would follow in December.

Most of the equipment for the last two turbines, located in the northern mountainous province of Son La, has also been delivered to the site. With six turbine groups and a combined capacity of 2,400MW, the project has a total investment capital of some $2 billion and will produce 10.2 billion kWh of power a year when it is completed

Moreover the completion of repairs of other thermo-power plants in the north such as Cam Pha, Quang Ninh, Haiphong and Son Dong will also help stabilise power supplies, according to an EVN report.

Deputy Minister of Industry and Trade (MoIT) Hoang Quoc Vuong asked EVN not to cut electricity supply in June.

The power output in the first five months of this year is estimated at more than 43 billion kWh, an increase of 10 per cent against the same period last year, according to the MoIT.

Indonesia’s imports of food, beverage from Vietnam surge

Indonesia’s imports of food and beverage from Vietnam in the first six months of the year surged 43.14 per cent over the same period last year.

The Indonesian Food and Beverage Association (Gapmmi) on June 19 released a report that the country spent $5.51 million on imports of food and beverage from Vietnam in the reviewed period.

The association said the country’s imports of food and beverage from other ASEAN nations continue increasing in recent months thanks to the lifting of taxation following the regional free trade agreement (AFTA) and efforts by the Indonesian government and relevant agencies in fighting smuggling.

Malaysia continues to be the largest exporter of the staples to Indonesia with an export value of $20.6 million, an increase of 76.17 per cent, making up over 23 per cent of Indonesia’s food and beverage imports.

Indonesia also imported $7.48 million worth of foods and beverage from Singapore in the period, a year-on-year increase of 29.1 per cent.