Dung Quat IZ attracts US$8 billion investment

As of early 2012, the Dung Quat Industrial Zone (IZ) has granted licences to 111 projects with total registered capital of US$8 billion, of which US$4.8 billion has been disbursed.

To date, 67 projects have been put into operation, with 31 operating effectively, including a Vietnam National Oil and Gas Group oil refinery project, a Dung Quat shipbuilding project and a Doosan Heavy Industries Vietnam (Doosan Vina) project.

Nguyen Hoai Giang, General Director of the Binh Son Refinery-Petrochemical Company that manages and operates the Dung Quat Oil Refinery, said after two years of operation, the plant has produced more than 10 million tonnes of various types of oil.

This year the Binh Son Company aims to store 6.5 million tonnes of crude oil and produce and sell nearly 6 million tonnes of other kinds of oil to earn VND108,355 billion (US$5.16 billion) and contribute more than VND15,000 billion (US$714 million) to the State Budget. The company will also increase the Dung Quat Oil Refinery’s capacity to 10 million tonnes of crude oil per year, and diversify its products to meet increasing demands.

On the fourth day of the Lunar New Year (January 26), nearly 1,800 Dung Quat Shipbuilding Industry Company officials and labourers resumed work on 104,000-tonne ships, aiming to deliver them to their new owners this year.

Hang Ha Ryu, General Director of Doosan Vina, said the company has targeted US$200 million in export earnings in 2012, up US$126 million compared to 2011. Nearly 2,000 officials, engineers and workers resumed work on major signed contracts after the Tet holiday.

On January 30, all companies in the Dung Quat IZ began normal operations, hoping to earn VND150,000 billion (US$7.14 billion) from industrial production and US$250 million from exports. The IZ plans to contribute about VND15,000 billion (US$714 million) to the State budget and generate 1,500 new jobs in 2012.

VN-Index strikes green, profit-takings push HNX-Index down

Stocks managed to close in the green on HCM City's exchange this morning but they plunged on the Ha Noi bourse due to heavy profit-taking activities by many investors.

In HCM City, the VN-Index opened up over 1.8 per cent but declined gradually toward the end of the session before closing essentially unchanged at 401.74 points, with 151 out of 293 codes losing value.

Blue chips were mixed. While property developer Hoang Anh Gia Lai (HAG) continued its seven-day winning streak by hitting its ceiling price, dairy giant Vinamilk (VNM), Phu My Fertiliser (DPM), software producer FPT Corp (FPT) and Sacombank (STB) lost from 0.6-2.8 per cent.

Others increased slightly or closed unchanged.

Market volume climbed nearly 56 per cent over yesterday with more than 68.5 million shares changing hands while the value of trades rose by more than 35 per cent to almost VND966.8 billion (US$46 million).

Military Bank (MBB) was the most active stock on the southern bourse with over four million shares changing hands, closing up 1.6 per cent to VND12,800 ($0.61).

In Ha Noi, the benchmark HNX-Index declined 1.15 per cent to conclude today's session at 61.85 points.

Heavy profit-taking pushed market volume up 76 per cent yesterday to 57.5 million shares while trading value also soared 63 per cent to more than VND441 billion ($21 million).

Losers outnumbered gainers by 164-104, with many speculative shares losing value, including Kim Long Securities Co (KLS) down 3.2 per cent; VNDirect Securities (VND), 1.3 per cent; Bao Viet Securities (BVS), 1.9 per cent; and Viet Hai Shipping and Real Properties Corp (VSP), 5.3 per cent.

PetroVietnam Construction (PVX) continued to be the most heavily-traded stock nationwide on a volume of nearly seven million shares. PVX bucked the trend to post a gain of 2.4 per cent to close at VND8,400 a share.

Blue chips help lift HCM indices
 
The benchmark VN-Index on the HCM City Stock Exchange passed 400 points yesterday, closing at 401.61, a 2.8 per cent rise over Wednesday.

Blue chips continued to lift the Index as six of the 10 leading shares by capitalisation hit their ceiling prices. Other stocks in the future benchmark index VN-30 also rose sharply, with many hitting the daily increase limit of 5 per cent, except Sacombank (STB) which lost 0.5 per cent to close at VND18,900 (US$0.9).

There were four times more gainers than losers.

Trading value on the southern bourse rose 8 per cent over the previous session to VND715.3 billion ($34 million), while the volume of trades increased 12 per cent to 44 million shares.

"Optimism (but with caution) is replacing the pessimism which prevailed at the end of last year. This is shown with the continued growth of many shares, pulling the indices on both floors up quickly," said Ha Noi-based independent analyst Pham Viet Hung.

Hung said many investors believed interest rates would fall in the second quarter, and while the gold and forex markets continued to be closely managed, along with the quiet real estate market, money would flow strongly back into the stock market.

"However, market value remained low on both exchanges which can be a barrier to confirming a sustainable uptrend," Hung cautioned.

On the Ha Noi Stock Exchange, the HNX-Index edged up nearly 3.5 per cent to finish yesterday at 62.57 points with 253 out of 393 codes posting gains.

Market value climbed 13.4 per cent over Wednesday's session, totalling VND270.4 billion ($12.87 million) on a volume of 32.7 million shares.

Kim Long Securities Co (KLS) was the most active stock with around 4.3 million shares changing hands. It reached its ceiling price of VND9,600 per share.

Foreign investors continued to pour money into Viet Nam's stock market as they picked up a combined net buy of VND30.7 billion ($1.5 million) worth of shares on both markets yesterday.

Gold hikes in Vietnam as global price rises

Gold hiked to VND100,000 on Thursday, jumping to VND45.4 million a tael (1.2 ounces), as global price rose.

Saigon Jewellery Company, the biggest gold processor and trader in Vietnam, collected the metal at VND45.1 million and sold at VND45.4 million as of 10 am Vietnamese time.

Sacombank Jewellery Company bought gold at VND45.1 million and sold at VND45.4 million as of 10:05 am Vietnamese time.

Hanoi-based Phu Quy Jewellery Company purchased SJC-brand gold at VND45.25 million and sold at VND45.35 million as of 11:50 am Vietnamese time.

Meanwhile, Bao Tin Minh Chau Jewellery Company quoted price at VND45.25 million for buying, and VND45.35 million for selling at 11:00 pm Vietnamese time.

Gold advanced to highest level in eight weeks, gaining alongside equities and other commodities, as global manufacturing improved, weakening the dollar and boosting demand for alternative investment.

Spot gold rallied as much as 0.5 per cent to $1,751.97 an ounce and traded at $1,750.15 at 9:32 am in Singapore. Commodities advanced, fueled by favourable purchasing managers’ data in China, Europe and the US.

Manufacturing grew from the US to India and China, fueling optimism that global recovery is weathering the debt crisis in Europe and driving a rebound in stocks and commodities including copper and oil. India and China are the world’s largest bullion consumers.

Bullion for April delivery gained 0.2 per cent to $1,753 an ounce on the Comex in New York. Spot gold so called 14 day relative-strength index was at 72.15 today.

People rush to buy gold on God of Wealth Day

Locals on Wednesday still rushed to buy gold to wish for good luck on the occasion of the God of Wealth Day, the tenth day of the Lunar New Year.

According to local folklore, the God of Wealth returns to heaven on the tenth day of the first lunar month every year. Vietnamese people consider this the God of Wealth Day, thus often buy gold to wish for good luck and prosperity.

Saigon Jewelry Holding Co. (SJC)’s headquarters recorded busy retail trading, but few customers bought more than five taels. A tael is equal to 1.2 troy ounces.

Truong Cong An, vice head of jewelry sales department of SJC, said some 700 taels were sold in Wednesday morning alone, equal to the sales volume of the entire previous day. Most citizens bought from five candareens to two maces. A candareen is one tenth of a mace, ten of which make up one tael.

In addition, owners of many gold shops also went to SJC’s headquarters to exchange one-tael gold bars for smaller bars to resell to their customers.

Nguyen Thi Cuc, deputy general director of Phu Nhuan Jewelry Co. (PNJ), said there was a drastic surge in demand on Wednesday, mostly for small gold bars and rings. The retail sales volume accounted for some 60% of the total gold amount that PNJ sold on Wednesday.

Cuc said her company had prepared a large amount of lightweight gold bars to satisfy people’s demand.

Meanwhile in Hanoi, Bao Tin Minh Chau Jewelry Co. said many branches of the company witnessed queues of customers waiting for their turns to buy gold. Unlike HCMC, Hanoi’s citizens preferred rings to gold bars, crowding at the areas around Bui Thi Xuan and Tran Nhan Tong streets.

SJC on Wednesday quoted gold prices at VND45 million per tael for buying and VND45.3 million a tael for selling, dipping VND30,000 over the day before.

Ca Mau to develop more farm produce trademarks

The southernmost province of Ca Mau is accelerating the development of more trademarks for its farm produce.

The Department of Intellectual Property previously acknowledged three product trademarks from the province namely Rach Goc dried shrimp, U Minh Boi dried fish and U Minh Ha honey.

The Ca Mau Farmers Association has been focusing on developing production and improving the quality, quantity and value of these three products.

The province also boasts around 40 traditional specialties which should create trademarks in the future. This year, it will develop trademarks for Chinh fish and ca bong tuong (large goby fish) in Tan Thanh commune, as well as Nam Can sea-crabs and Thoi Binh fish sauce.

Nguyen Van Cat, an official from the Ca Mau Department of Science and Technology said that developing these brand names aims to facilitate production, promote products and receive more support from relevant agencies.

Will stocks, gold remain attractive to investors?

As the stock and gold markets started the Lunar New Year with several upheavals, Tuoi Tre spoke with two experts on whether these two channels are still appealing enough to attract investors this year.

Dinh Nho Bang, general secretary and deputy chairman of the Vietnam Gold Trading Association, told Tuoi Tre that the gold market this year will remain in its heating state as it did last year, with domestic gold expected to fluctuate in accordance with its global counterpart’s development.

Amid the ongoing global economic turbulence, the public, investors, and investment funds will choose gold as their main investing channel, Bang said.

The average gold price in 2012 will be around US$1,800 an ounce, Bang said, saying the forecast is based on consultancies from international experts.

“Global price currently revolves around $1,674 an ounce, so at first, it is likely to rise to the $1,700 an ounce mark,” he said.

“There is little likelihood the price will drop below $1,600-$1,500 an ounce.”

Bang added that the price of the precious metal in Vietnam will continue to rely on global fluctuation.

“However, the exact gold price can only be determined by the management policies of the State Bank of Vietnam,” he said.

“The gap between domestic and global prices last year once widened to as much as VND2 million ($100) a tael, but we hope that the difference would be reduced to VND400,000 as the central bank governor had claimed.”

With the global gold price development expected to remain unstable in 2012, Bang said local investors are advised to put their money into the bank savings channel.

“At a time when inflation is high, and gold prices fluctuate in an unpredictable way, depositing your money is a good choice,” he said.

“Investing in gold is a double-edged sword: you can reap whopping profits, but can also incur massive losses.”

Running counter to Bang’s advice to send money to banks, Tran Dac Sinh, chairman of the Ho Chi Minh Stock Exchange (HoSE), told Tuoi Tre that the stock market is still able to attract investors this year.

“Securities remain an attractive investing channel, and investors will still manage to earn profits, though it is harder to do so compared to last year,” Sinh said.

He said the outlook is made based on certain good signs of the macro-economy, such as cooling inflation, and an expected drop in bank interest rates.

“Once the economy posts bright outlook, money will flow into the stock market.”

Sinh said that the current banks’ interest rates are still too high, causing difficulties for businesses.

“Moreover, the high interest rates have attracted money to banks, while such investments should be put into channels like securities, real estate, or gold.”

Sinh said the government will soon provide assistance in the near future to help the stock market get out of this tough spot, a move he said will not only benefit the stock market itself, but also businesses and industries.

Agricultural exports decline
 
Export turnover from agricultural, forestry and seafood products in January declined by 16.3 per cent compared to the same period last year to about US$1.8 billion due to the global economic difficulties, according to the Ministry of Agriculture and Rural Development.

Agricultural products made up $1.1 billion of the total, down 19 per cent, while seafood and forestry products contributed $370 million and $300 million, down 13.3 per cent and 18.2 per cent, respectively.

Director of the ministry's Centre for Information and Statistics Nguyen Viet Chien said that export value for all of the country's key agricultural products decreased in January.

Last month, the country exported only 400,000 tonnes of rice worth $240 million, down 25.4 per cent in volume and 14.2 per cent in value, Chien said, adding that besides the prolonged global economic difficulties, domestic rice businesses also failed to win new export contracts due to higher prices compared to their Indian and Pakistani counterparts.

Coffee exports experienced a similar trend, seeing a 20.9 per cent reduction in volume to 60,000 tonnes and 15.3 per cent in value to $200 million. Coffee prices were also forecast to decline continuously in the coming months.

January's export value for rubber reached only $200 million, down 38.7 per cent compared to the same period last year, due to decreasing demand around the globe in the wake of the EU debt crisis.

With these results, the ministry was concerned that export value of many agricultural products would decrease sharply in 2012 compared to last year.

If the EU and world economies did not improve, rubber export turnover could decline by $1 billion compared to last year to roughly $2.1 billion despite a rising export volume of 880,000 tonnes, the ministry said.

This year's pepper and coffee exports are expected to reach only $620 million and $2 billion, down 16 per cent and 25 per cent, respectively, compared to last year.

In 2011, the country gained an impressive $25 billion from agricultural, forestry and seafood exports, up 29 per cent over the previous year.

Opening times changed at Lao Bao International Border Gate

In an attempt to improve conditions for traffic and trading between Viet Nam and Laos through the Lao Bao International Border Gate, the Government has approved changes to the time the gate is open from February 1.

This pilot programme will be tested over the next six months, during which time the gate will be opened from 7am to 10pm, including holidays and weekends, rather than shutting at 7.30pm as before.

The gate is located on the East-West Economic Corridor (EWEC). In recent years, inconsistencies in operation times between EWEC countries has led to problems through the corridor. For example, working hours in Laos run from 7am to 10.30pm, while in Viet Nam, the border shuts at 7.30pm, causing difficulties for trading, transportation and tourism.

Dong Nai to develop support industries
 
The southern province of Dong Nai has implemented many measures to develop supp-ort industries to reduce reliance on imports and add more value to industrial products, a Tin Tuc report said.

The province's 2007-15 (with a vision towards 2020) support industry development plan sought to meet the demand of both domestic and export markets, the report said.

The province has asked the Prime Minister to allow the establishment of specialised zones for support industries that will be chosen from industrial zones that the PM has already approved for the province.

It has proposed that the Government allows these zones to enjoy policy incentives in terms of corporate income tax, land rents, credit and tax exempts for importing equipment.

The province has also decided to review its policies to attract more small- and- medium sized enterprises into spare parts production.

To enhance development of the support industry, economists say the province should promote diverse co-operation models with foreign investors involved in supporting industries so that local companies can become part of the product supply chain in global production lines managed by multinational corporations.

They also say local firms should focus more on becoming strategic partners and satellite companies of foreign firms, as well as on taking franchises of established brands instead of focusing, as is currently done, on capital contribution and outsourcing of simple products.

They have suggested that the province set up a credit support system for SMEs since this sector usually finds hard to access capital from banks without assets that can be mortgaged.

Providing information as well as building training and technical support centers to support SMEs was also very important in having them participate in the development of support industries including spare parts production, the experts were cited by the Tin Tuc report as saying.

The current weak state of supporting industries in the country has resulted in mass imports of spare parts to meet local production demand, leading to a high trade deficit for many years now, the report said.

It quoted Dinh Quoc Thai, chairman of the provincial People's Committee, as saying Dong Nai had in the past attracted some investment projects producing components, accessories and equipment such as coat buttons, footwear soles and fabric, but the figures were still modest and unable to satisfy local demand.

"If the situation does not improve, industrial production will continue to depend on imported inputs, making it difficult for firms to reduce costs and become more competitive, not to mention the impact on the nation's trade deficit," Thai said.

Dong Nai's industrial sector has for many years now focused mainly on developing key industries like textiles and garment, footwear, automobiles, motorcycles and electronics, either as outsourced or assembly projects that are characterised by low added value and low competitiveness.

Support industries play an important role in enhancing the competitiveness of finished industrial products, increasing the ratio of local content and reducing dependence on imported inputs, the Tin Tuc report said.

It said the engineering, electronics and garment and textile sectors have invested a lot in developing support industries over the past years, achieving significant progress and contributing greatly to export growth.

However, most support industries in the province are being developed by Japanese and Taiwanese companies, with domestic producers making up a minority.

Domestic firms in the sector lack links with primary industries and large manufacturers so they cannot make big investments in parts production, Tin Tuc said.

Citing experts, it said Government's policies to develop support industries were not attractive enough to stimulate domestic investment in the sector.

"The development of support industries in the province is gaining urgency, because it is needed to meet integration requirements and local socioeconomic development," Thai said.

Dong Nai would strive to realise the goals of the support industry development plan and meet the overall target of industrialisation and modernisation by 2015, he added.

Ministry sets high industrial targets despite economic woes
 
Although international financial institutions have made pessimistic predictions about the global economy in 2012, Viet Nam has still set fairly high targets for industrial production and trade.

During a recent press meeting in HCM City, Deputy Minister of Industry and Trade (MoIT) Nguyen Nam Hai said the value of industrial production in 2012 was expected to increase by 13 per cent over last year's figure. This would help ensure the nation's GDP growth rate of between 6 and 6.5 per cent.

He said all sources of investment would be mobilised for industrial production.

More incentives are expected to be given to support industries that supply materials for garment, textiles, leather and shoes, electronics, computers and spare parts and equipment for ship-building, car and motorbike production.

He said production of electricity, coal, petroleum, fertiliser and steel must be in full swing to meet the needs of the national economy.

In 2012, the nation's exports are expected to increase 13 per cent over last year, to earn US$108.8 billion.

Meanwhile, import value would reach $121.8billion, an increase of 15.2 per cent compared with 2011. This means that imports would increase 12 per cent over exports.

"We are striving to keep the trade surplus at 10 per cent," Hai said.

To reach the target, the ministry plans to diversify export items while improving its national trade promotion activities to help local businesses expand their market share and partnerships.

More incentive policies would be created to encourage the production of export goods and substitutes for imports using domestic materials.

As for the domestic market, the MoIT will ensure a stable supply of essential goods by developing production chains and modern distribution systems including supermarkets and shopping malls.

The promotion of domestic goods would be continued with the slogan, Vietnamese give priority to using Vietnamese goods.

Retail sales of goods and social services is expected to earn VND2,445 trillion, an increase of 23 per cent over 2011, according to MoIT.

The MoIT official, however, admitted that the industrial portion in the nation's GDP is still lower than the set target.

Because the industry is "extensively developed" with its main focus on assembling and processing, the sector's production value increase is always faster than its added-value growth rate.

Although the nation's export value has had a fairly high growth rate, it is unsustainable and has not matched its great potential, while the structure of export items remains inappropriate.

The great portion of materials, fuel and equipment imported in the textile-garment as well as leather and shoe industries shows these industries' heavy dependence on foreign suppliers, mostly in the Asia-Pacific region.

International domain names best for business expansion

Businesses should buy international domain names now if they planned to penetrate the world market to avoid costs later on, said Nguyen Tu Quang, general director of internet security company Bkav.

Statistics from the Viet Nam National Internet Centre (VNNIC) show that the number of domain names registered between 2004 and 2011 increased by 20. In addition, the centre has allowed businesses to register names for free, contributing to a sharp increase in the number of .vn domain names.

E-commerce was developing well due to its convenience and low cost, especially for new companies. The best way to advertise a trademark was to use an international .com domain name as it was easily recognisable around the world, Quang added.

Domain name disputes have increased with the development of e-commerce. Several businesses have had to spend billions of dong to buy domain names for their trademarks.

Demand for Vietnamese domain names has increased sharply in recent years as businesses have become aware of their value in terms of global expansion.

Domain name speculation developed before Vietnamese trademarks were positioned in global markets, and speculators have targeted well-known enterprises in developed sectors including banking, real estate telecommunications and technology.

Quang said his company had still benefited despite having to pay VND2 billion (US$95,300) to buy their bkav.vn domain name from a US company.

"It didn't occur to us to buy an international domain name 10 years ago, so we only bought bkav.com.vn which is Vietnamese," he added.

Several companies have spent billions of dong to purchase international domain names, saying they are vital for business expansion as they attract a significantly larger number of hits than the Vietnamese equivalents.

Owners of popular websites in Viet Nam including vozforums.com, diadiem.com and 5giay.com have difficulty proving their ownership because of hackers and advertising.

Several enterprises have also struggled to reclaim their registered domain names, leading to lengthy legal proceedings that cost time and money.

Some domain names in Viet Nam were taken even before the country gained access to the internet in 1997.

Domain name fpt.com was bought by speculators in 1995, viettel.com in 1997, mobifone.com in 1998, bkav.com in 2001, and viettien.com and vinaphone.com in 2003.

VNNIC figures show that Viet Nam has more than 18,000 registered .vn domain names, 20 per cent of which are business oriented.

Last year, the centre registered over 50,000 domain names, three times higher than in 2010.

Ministry fast-tracks transportation projects
 
The Transport Ministry is targeting the completion of more than 30 major projects this year to make a milestone in transport infrastructure development. Last year, hundreds of projects were delayed due to the Government's public investment cutting policy.

The projects include a road network to Phong Nha- Ke Bang Culture Heritage and Khe Gat Airport in central Quang Binh Province, Ngoc Thap Bridge in northern Phu Tho Province, Dam Cung Bridge in southernmost Ca Mau Province, Ha Long-Cai Lan Railway, An Thoi Port in southern Kien Giang Province and Da Nang Airport Terminal.

To achieve the goals, over VND42 trillion (US$2 billion) is schemed for project disbursement this year.

Of the funding, nearly VND7.5 trillion ($357 million) is from State budget, VND15 trillion ($715 million) from Government bond and about VND19.5 trillion ($928.5 million) from other sources.

Moreover, the ministry will focus on directing investors to speed up projects partly disbursed already and co-operating with localities to boost land clearance facilitating construction.

The ministry will also tighten inspections and punish violations related to the quality and progress of the projects.

Deputy Minister Truong Tan Vien said that last year, many key projects were not finished due to a funding shortage following last year's Resolution 11 on stabilising macroeconomy and curbing inflation.

The infrastructure projects of last year could meet about 55 per cent of demand.

Mekong Delta plagued by low-quality fertiliser
 
Distribution of fake and low-quality fertilisers is thought to be rampant in the Cuu Long (Mekong) Delta, causing great losses to farmers.

Do Van Phuoc, head of the Tien Giang Province Market Management Office, said: "In 2011 we discovered eight samples of low-quality fertilisers."

All eight products' manufacturers were fined.

Worse still, some fertilisers carrying labels of prestigious brands turned out to be fake.

Inspectors from the province's Department of Agriculture and Rural Development also found nine other samples containing only half of the organic substances they claimed to have.

"Many farmers have complained about fake and low-quality fertilisers," Le Minh Duc, director of the Long An Province Department of Agriculture and Rural Development, said.

"Farmers spent money but damaged their crop. I want to punish these violators severely."

But he admitted that related authorities could not check all brands because there are too many producers.

Another problem is that by the time authorities discover fake products, most of the stocks are sold out.

Besides, the penalties are too mild to deter producers of fake.

"The Ministry of Agriculture and Rural Development (MARD) should be more circumspect while licensing fertiliser production," La Van Be, head of the Ben Tre Province Market Management Office, said.

"The ministry has granted too many licences.

"Some producers use basic equipment which can't ensure quality."

Pham Van Du, deputy head of MARD's Department of Plant Cultivation, said fake and low-quality fertilisers were produced by small workshops and sold in remote areas.

"We will take necessary measures to stop this," he promised.

But, curiously, authorities around the Cuu Long (Mekong) Delta have a common refrain when farmers demand that they name the dubious brand and their producers: it is not possible because the violators "have paid fines and taken back all their products."

There are 400 producers churning out 4,000 fertiliser products, but few of them are large companies or renowned products.

Furniture exports forecast to decline in first quarter

Furniture export is projected to decline against last year since wood processors become more cautious about taking new orders after the long Lunar New Year holiday, the Vietnam Timber and Forest Products Association (Vifores) said.

Though local wood working companies find no difficulties in taking orders from importing markets such as the U.S. and the EU, they are not eager to sign new contracts as in the previous years, said Nguyen Ton Quyen, chairman of Vifores.     

“Last year, high inflation pushed interest rates and input costs up. This year, from their past experience, timber enterprises survey supply and demand, and material prices before signing new contracts with partners,” he said.

“We say ‘yes’ to those orders having quantity and product types suitable to our production capacity so as to secure profitability rather than vying for orders as much as possible in the past,” said Ngo Thi Hong Thu, vice chairwoman of Truong Thanh Furniture Corporation.

The holiday-thinned January pulled down export sales by 18.5% year-on-year to some US$280 million only, driving the export value of furniture products in the first quarter down to an estimated US$1 billion.

In particular, the export value of bamboo and rattan products in January is estimated at US$19 million, a 9.7% year-on-year decrease.
 
Cashew industry seeks huge loans for new harvest

The Vietnam Cashew Association (Vinacas) will ask for the Government’s support in providing loans of over VND29.5 trillion to buy cashew material for processing activities and export.

If it secures the Government’s backing, the association will buy raw cashews from farmers at VND35,000 per kilogram, VND7,000-8,000 kilogram higher than the current price.

In a petition which will be sent to the Government, Vinacas expects loans from the central bank to be raised to 90% of the total cashew value as collateral from the current rate of 70%. The association suggests that the loans carry a softer interest rate, at 11-12% per year compared to the current commercial rate of around 20%.

The total domestic cashew volume is estimated to reach 380,000 tons, or 30,000 tons higher than the previous season, as there will be no big weather changes.

Cashew firms have to depend on banks’ credit supply to buy enough materials.

Beside the domestic yield, Vinacas estimates to import around 450,000 tons of dry cashews worth VND13.23 trillion from Africa and Indonesia.
 
New skyscraper to get rising by April  

Bitexco Group prepares to kick off the construction of a 55-storey building in downtown HCMC by this April.

The Ben Thanh Towers project will be developed on 8,600 square meters in HCMC’s District 1 with investment capital of some US$400 million and bordered by four streets of Calmette, Le Thi Hong Gam, Pho Duc Chinh and Pham Ngu Lao.

The high-rise structure will provide around 138,000 square meters of floor area, including serviced apartments, offices for lease and shopping malls when it is complete by 2015.

In related news in the property sector, Nhon Trach Investment Joint Stock Co. plans to put villas in the Eastern Saigon new urban area project up for sale. It is a part of Nhon Trach new urban area project situated in Dong Nai Province’s Nhon Trach District.

Some 150 villas ranging from 300 to 600 square meters and townhouses with a total area of 170 square meters per unit will be on sale by the second quarter of this year, said Nguyen Hieu Loc, managing director of Nhon Trach Investment Joint Stock Co.

The project will be constructed on 942 hectares of land at a total cost of up to US$6 billion. It is slated to become a key hub of Dong Nai Province for industry, commerce, education, training, science and technology.

The investor has already paid site clearance, compensation and land use fees for about 700 hectares. For the completion of this project, the investor must mobilize through many channels including issuing corporate bonds and joining forces with other companies.