Shoe exports rise by 30 percent

Vietnam's leather and footwear export value jumped by 30 per cent to $4.8 billion during the first nine months of this year, according to the General Statistics Office (GSO).

By September, the leather and footwear industry had reached a growth rate of $550-640 million per month over four consecutive months, the office said.

Growth was mainly due to the abolishment of an anti-dumping tax related to leather-upper shoes made in Vietnam from April on the European Union market, importers accordingly shifting their orders from China to Vietnam because of a 16.5 per cent tax still applied in the former.

However, many domestic export leather and footwear producers have not yet dared to take orders because of high input costs and increased salaries, said Nguyen Thi Tong, general secretary of the Vietnam Leather and Footwear Association (Lefaso).

So far, producers have received enough export orders to last until the end of this year alongside contracts already negotiated for 2012, Tong said.

The industry expects to reach a total export value of $6 billion this year, Tong said, adding that, in order to reach the target, production lines would need to be expanded while product quality was enhanced.

To improve enterprise competitiveness, the domestic market would additionally need just as much attention as the export one, she said.

According to the Ministry of Industry and Trade, the industry has set up targeted export values of $9.1 billion for 2015, $14.5 billion for 2020 and $21 billion for 2025.

The industry expects to reach an average export value growth rate of 10.9 per cent per year in 2011-15, 9.7 per cent during 2016-20 and 9.7 per cent from 2021-25.

Banks become innovative in attracting new deposits
 
Many banks are managing to lure more depositors by offering attractive preferences on certain products.

The Sai Gon Thuong Tin Joint-Stock Commercial Bank (SCB) has adjusted its non-term deposit polices by increasing its overnight interest rate to 12 per cent per annum for individual depositors, and to 8 per cent for organisational depositors.

Following this trend are many other banks, including Viet A Joint-Stock Commercial Bank (VietAbank), Viet Nam Joint-Stock Commercial Bank, and Viet Nam Export–Import Joint-Stock Commercial Bank (Eximbank).

VietAbank's daily deposit interest rate ranges between 13 and 13.8 per cent per year while Navibank's non-term rate is 14 per cent per annum offered for deposits worth VND100 million or more.

At Eximbank, the overnight interest rate stands at 7 per cent per year while deposits with a term of 48 hours or two days have an interest rate of 8 per cent.

Many other banks including Orient Joint- Stock Commercial Bank (OCB) have launched promotion programmes under which a depositor would receive a gift with a value aligned with the individual's account as well as the term of the deposit.

OCB also allows depositors to withdraw their money prior to the due date after one-third of their deposit term has been completed. They are not required to give back any gifts.

The chairman of one bank's executive board said that small banks lost their competitive advantage after the State Bank of Viet Nam established a common pricing mechanism for bank capital mobilisation.

Many depositors at small banks have withdrawn money to deposit at large banks, particularly State-run banks, to ensure safety. This change has caused small banks'capital sources to fall sharply.

Small banks have been trying to promote one-day deposits as a way to prevent capital shortage.

Enterprises voice complaints against local tax-customs agencies

Representatives of many enterprises voiced their complaints to a leader of the Ministry of Finance about the problems over the inaccurate implementation of tax and customs policies in localities, resulting in difficulties in their production and business activities.

Speaking at the dialogue on tax and customs policies held in HCMC over the weekend, some complained their local tax department did not accept bills without seals but the practice was already endorsed by the General Department of Taxation.

Others said the same product was imposed with different tax rates, illustrating that while Ba Ria – Vung Tau Tax Department imposed a 5% value added tax on grilled chopped fish and dried leather jacket fish, the HCMC Tax Department slapped 10% on the products.

On reply to the enterprises’ complaints at the dialogue, deputy minister of finance Do Hoang Anh Tuan said he would ask those local tax and customs departments with inaccurate interpretation of policies stipulated by the ministry to make changes.

He also asked enterprises to submit documents to the General Department of Customs or the General Department of Taxation for considerations and solutions while he reminded tax agencies to report to superior agencies as well as specialized ones if disagreeing with the declared information from enterprises so as to have accurate tax application.

Besides, representatives from enterprises proposed the authorities to change some irrational tax policies.

Import-export tariff on electricity generators is a typical example as the import tariff for the whole product was 10% while that of its components was up to 15%, which challenged enterprises who want to promote localization.

The regulation that processors can only have tax refunded unless they export all their products and they must pay tax if they sell the products locally hindered the cooperation between foreign and local enterprises and made enterprises incur high costs due to imports from foreign countries.

Tuan affirmed that the Ministry of Finance would have proposals and amendments to the tax law to make it more appropriate and transparent to both implementing agencies and taxpayers.

VN, Japanese city to develop supporting industry

Kawasaki city wants to invest in Vietnam ’s supporting industries, besides the existing cooperation in maritime transport, tertiary education and postgraduate training.

Mayor of Kawasaki city, Abe Takao made this statement at a seminar on business opportunities in Vietnam , jointly organised by the Vietnamese Embassy in Japan and the Kawasaki Chamber of Commerce and Industry, in the Japanese city of Kawasaki on Sept. 26.

Vietnamese Ambassador to Japan, Nguyen Phu Binh said the increasingly close friendship between the two nations would be a foundation to promote bilateral cooperation in supporting industries, contributing to developing the two countries’ economies.

The event drew the participation of 150 delegates, including representatives from Vietnamese and Kawasaki small and medium enterprises.

Vietnam exports to Mexico up 20 percent

Vietnam earned nearly US$528 million  from exports to Mexico in the first seven months of this year, a year-on-year increase of almost 20 percent.

Vietnam’s export turnover to the second-largest economy in Latin America in the first seven months maintained a sustainable growth rate.

Meanwhile imports during the reviewed period were more than $38 million, a drop of 11 percent, according to the Trade Office of the Vietnamese Embassy in Mexico .

Two-way trade between the two countries in the period matched the application of market diversification policies of Mexico.

Masan Consumer to acquire 50.11 percent VCF stake

Vinacafe Bien Hoa Joint Stock Co (VCF)'s leader has approved to sell 50.11 percent stake in VCF to Masan Consumer after a recent meeting with the acquirer, said Le Hung Dung, VCF's financial director.

The sale will last to October 11, 2011.

After acquiring 50.11 percent stake in VCF, Masan Consumer will become strategic shareholder of Vinacafe Bien Hoa.

According to the annual report 2010 of VCF, till December 31, 2010, insiders and shareholders held nearly 60 percent stake in VCF.

Of which, Vinacafe held nearly 13.4 million shares (50.26 percent stake), Beta Securities Joint Stock Co held 2.05 million shares (7.7 percent stake) and an individual shareholder held 2.3 million shares (8.63 percent).

According to Ban Viet Securities Co, Masan Consumer's asking price is VND80,000 per share, while the closing price on September 23 of VCF was VND85,500 each, lower than the closing price on September 12, the starting day of the purchase, at VND89,000 each.

This price is much lower than the price of VND99,500 per share on September 5 when Masan Consumer leaked about the VCF acquisition.

With the asking price of VND80,000 Masan Consumer will have to spend some VND1.065 trillion on the purchase of 13.32 million shares, or 50.11 percent VCF stake.

According to the announcement of Masan Consumer, till July 31, the company's total amount of cash reached nearly VND4.258 trillion.

Leather footwear businesses boost exports

Leather footwear businesses have won an export order for 2011 and are negotiating new orders for next years, according to the Ministry of Industry and Trade (MoIT).

It is forecast that the leather and footwear sector can achieve an export turnover of US$6 billion this year.

In the first nine months, total export earnings from footwear products reached US$4.8 billion, up 30 percent against the same period last year. Accordingly, in the last four months, the leather and footwear sector’s export revenue stayed at US$550-640 million per month, showing a sharp increase from May.

This was attributed to the fact that the European Commission (EC) had removed anti-dumping tariffs on leather-capped shoes imported from Vietnam.

According to trade experts, the leather and footwear sector has maintained its stable growth with its products, ranking third after garments and textiles and crude oil among Vietnam’s key export items.

At the moment, leather footwear businesses are running short of labourers and facing high costs of transportation and services.

Vietnam, Benin hope to strengthen cooperation

The Ho Chi Minh City Office of the Department of Trade Promotion and the Beninese  Ministry of Industry, Commerce, Small & Medium Enterprises held a seminar on trade and investment promotion between the two countries on September 28.

Sabi Boum Djoule from the Beninese side said the country hopes to boost cooperation with Vietnam in agricultural mechanisation, agricultural processing, health care, technology transfer, and trade exchange.

Ngo Van Roan from the Ho Chi Minh City Department of Industry and Trade said Vietnam and Benin have great potential for increasing export-import revenue.

In order to fully tap the potential, businesses from both countries should learn about each country’s market and demand and build a long-term trade relation.

The African country has a huge demand for coffee, pepper, tea, rice, textiles, garments, footwear products, rubber and consumer products, all of which are considered Vietnam’s strengths.

Vietnam-Benin export revenue reached US$46.7 million in the first quarter of 2011.

HCM City hosts Asian Network for Quality Congress 2011

500 delegates from 20 countries attended the Asian Network for Quality (ANQ) Congress 2011, which opened in Ho Chi Minh City on September 28.

This year’s event, themed “Quality management is the key to sustainable development” will focus on research and development of philosophy, theory, methodology and application in the field of Quality.

200 papers presented at the three-day congress will be divided into 13 topics such as quality management in production in manufactures and services, healthcare, education, social and environment, public sectors, information and communication technology.

Participants agreed that sharing the high growth values of the Asian economy is very important, while the management of the quality of consumer products, the environment, and natural resources are the key to sustainable development.

Nguyen Quang Toan, Chairman of the Vietnam Quality Association of Ho Chi Minh City (VQAH) said the conference will focus on the quality criteria applied by Asian countries such as Singapore and the Republic of Korea.

During the congress, held by the HCM City Department of Science and Technology and the Asian Network for Quality, participants will have technical visits to the HCM City University of Industry, Viet Thang Corporation, and Minh Long Ceramic Company.

Etihad has codeshare agreement with Vietnam Air

Etihad Airways, the national carrier of the United Arab Emirates, announced Wednesday a codeshare agreement with Vietnam Airlines, the Emirates News Agency reported the same day.
 
A Boeing 777 plane of Vietnam Airlines at Tan Son Nhat International Airport in Ho Chi Minh City

Passengers on both airlines will be able to take advantage of the agreement from October 30, 2011, the UAE news agency said

The agreement will allow Etihad guests to connect seamlessly through Bangkok to Ho Chi Minh or Hanoi on Vietnam Airlines’ daily services.

Likewise, Vietnam Airlines passengers from either destination of the country will be able to connect through Bangkok to Etihad's base in Abu Dhabi, the news agency said.

Etihad operates a double daily service to Bangkok.

“The codeshare agreement with Vietnam Airlines offers our passengers yet more destinations and connectivity while demonstrating our ambition to develop our presence in Asia. Both Ho Chi Minh and Hanoi are cities with much to offer both business and leisure travelers,” Etihad Airways CEO James Hogan was quoted by the Emirates News Agency as saying.

The announcement takes Etihad’s total of codeshare partners to 33.

Meanwhile, the international codeshare partners of the national carrier of Vietnam include Air France, Alitalia, Royal Dutch Airlines KLM, Czech Airlines, Delta Airlines of the US, Cambodia Angkor Air, Cathay Pacific, Lao Airlines, Japan Airlines, Garuda Indonesia, Philippines Airlines, Korean Air, China Airlines, and China Southern Airlines.

Vietnam Airlines will launch new services between Hanoi and Hochiminh City to London and vice versa operated as from 08 December 2011.

The carrier became a member of SkyTeam Alliance in June 2010.

U.S. firms eager to partner with local agribusinesses

U.S. food and agricultural products companies are busy meeting with Vietnamese counterparts to seek ways to set up partnerships that will help boost trade, said the Acting Under Secretary for Farm and Foreign Agricultural Services at the U.S. Department of Agriculture (USDA).

“The meetings will facilitate business ties, new sales, joint ventures and opportunities for investment that will expand and develop over time,” Michael Scuse told the welcome plenary session of a U.S. agricultural trade mission to HCMC on Tuesday. He is leading the first-ever mission of the USDA to the city until September 29.

“The result will be increased trade and improved economic prospects for all,” he said at the session, which was attended by HCMC Vice Chairman Le Minh Tri, Chair of AmCham HCMC Christopher C. Twomey, and representatives of the 15 U.S. visiting companies and nearly 150 Vietnamese firms.

Scuse told reporters after the session that there had been a tremendous increase in bilateral trade between the two countries in the past four years, particularly in exports of agricultural items. As a result, Vietnam has become one of the major markets of the U.S.

“Since 2006, no other major U.S. agricultural export market has grown quickly as Vietnam,” Scuse told the session. He furthered U.S. farmers and ranchers, producers, processors, shippers and exporters were able meet to the increasing food and fiber needs of nearly 90 million consumers in this growing market.

Nguyen The Hung, deputy general director at the HCMC Branch of the Vietnam Chamber of Commerce and Industry (VCCI), gave some figures to back Scuse. Hung said last year saw the U.S. exports to Vietnam stand at US$3.7 billion, with sales of agricultural products up 42% over previous year to US$1.5 billion.

He said the two-way trade of fish and forestry products neared US$3.4 billion last year and it was estimated that the increase would be about 10% this year. He told the session that the U.S. had become the largest and most important market for Vietnam’s key export items.

The two-way trade between the U.S. and Vietnam in the first seven months of this year exceeded US$12 billion, according to the U.S. Census Bureau. In this period, Vietnam exported some US$9.63 billion worth of goods to the U.S. and imported US$2.46 billion of merchandize, up 20.7% and nearly 20% respectively.

“Based on actual trade through July, we expect that total bilateral trade in 2011 will reach around US$21 billion, of which Vietnam’s exports will account for US$16 billion and U.S. exports to Vietnam will be about US$5 billion,” said Twomey, chair of HCMC Chapter of the American Chamber of Commerce (AmCham) in Vietnam.

Twomey told the session that a substantial part of the U.S. exports to Vietnam were food and other agricultural products, including over US$250 million in meat and poultry, another US$250 million in raw cotton, some US$150 million in dairy products and eggs among others.
 
Metro system in HCM City still under preparation

HCMC’s metro system, consisting of six lines, has been started in recent years but is still under preparation until now due to unfinished feasibility studies and financial difficulties.

The metro line No. 1 is the first project to be started but it is still in the process of seeking contractors and capital, said Nguyen Do Luong, head of the HCMC Management Authority for Urban Railways (MAUR), in a meeting with HCMC authorities last week.

This metro route, linking Ben Thanh in District 1 with Suoi Tien in District 9, needs estimated capital of US$2.49 billion, 88.4% and 11.6% of which comes from Japan’s official development assistance (ODA) and the city’s reciprocal capital respectively. The 19.7-kilometer line with 2.6 kilometers underground and 17.1 kilometers above ground is divided into three packages.

The first package of building the underground section is in trouble as Japanese contractors after passing the first bidding round refused to continue in August last year. Replacements, including Kajima, Sumizu and Maeda from Japan, were not found until May.

The second package of building the elevated part and terminals and the third of supplying equipments, railways and carriages have been put out to tender. MAUR is also working with the Japan International Cooperation Agency (JICA) to evaluate results, preparing to borrow more ODA capital for the project, according to MAUR.

The project is unable to be finished in 2017 and operated in 2018 as planned due to some problems encountered when seeking contractors and other factors.

The construction of the 19-kilometer metro line No.2 from Thu Thiem Peninsula in District 2 to Tay Ninh Coach Station is also under preparation despite being kicked off on Monday.

The 11.32-kilometer part of the second line, stretching from Ben Thanh in District 1 to Tham Luong in District 12, requires capital of US$1.375 billion, in which the Asian Development Bank (ADB), German development bank (KfW) and European Investment Bank (EIB) will likely fund US$540 million, US$313 million and US$313 million respectively. This project still needs US$326.5 million from the reciprocal capital source of the city.

This project consisting of eight packages is calling for contractors although the first component, Tham Luong depot, has been started since August 24.

MAUR is also seeking consultants to make a feasibility study for the next phase of this route, Ben Thanh-Thu Thiem and Tham Luong-Tay Ninh Coach Station parts.

In addition, the metro line No. 5, starting from Saigon Bridge on Hanoi Highway and ending at Can Giuoc in District 8, is in need of investment capital, in which US$500 million is expected from Spain’s ODA.

Meanwhile, MAUR has only signed a memorandum of understanding with Italia-Thai Development Public Group of Thailand to study the feasibility of the line No. 4 which is 22.6 kilometers long.

Other railway projects, including monorail and tram systems, are moving slowly due to difficulties in capital, site clearance and compensation.
 
Investments in tourism property show an uptrend

Investments in the tourism property sector, especially in the low-cost hotel segment, sees a growing trend and is forecast to lure a great number of local as well as foreign investors in the coming time despite the current stagnancy in the realty market, said an industry practitioner.

Speaking with investors at a conference held in the New World Saigon hotel in HCMC on Tuesday, chief executive officer of CBRE Hotels Asia Pacific Robert Mclntosh said that Hanoi and HCMC recorded a hefty growth in revenue per available room (RevPar) in the last three years.

RevPar is calculated by multiplying the room price and the room occupancy which is used by hotels to define their income.

According to the market survey by CBRE, hotels in Hanoi and HCMC saw their room occupancy rise by 5-10% this year against 2010 while RevPar gained a rise of 15-20% compared to that of 2009. The average room price of hotels in Vietnam remained higher than that of regional hotels and just after Hong Kong and Singapore.

The market survey company said that hotel investments attracted numerous local investors who were making consideration and seeking more concrete information so as to pour their money into the field.

The potential for hotel investments in Asia-Pacific as well as in Vietnam, Mclntosh believed, is pretty high, especially for those who seek long-term investments. He added that the segment made fast recovery after the financial crisis and enjoyed a growth rate of RevPar at around 20% against the pre-crisis period in a majority of big cities in Asia.

The figures from a market survey revealed that while the investment in tourism property accounted for only some 22% in Vietnam compared to over 35% in Thailand, the proportion is poised to increase to around 38% in the next 12-18 months.

The tendency will not apply to resorts, but to low-cost hotels instead which reap better results in terms of RevPar growth rate at present. Three-star hotel market provides investors with a good opportunity to look for ample profits, he said.

The three to five-star hotels in HCMC, according to the figures from a market survey by Savills Vietnam, have around 10,000 rooms of which HCMC’s District 1 accounted for 70%.

The coming time is predicted to see some 6,200 rooms from 25 projects of three to five-star hotels enter the market while around 1,500 rooms is forecast for 2012 alone.

The current macro-economic policy which is unfavorable to the realty market, however, is likely to affect the schedule of some projects in the future.
 
Phu Dinh port up and running

Saigon Transportation Mechanical Corp. (Samco) on Tuesday officially inaugurated the new port Phu Dinh in District 8, which will transport cargo on the HCMC-Mekong Delta route.

Developer Samco plans to put 11 quays into operation in the first phase, handling 500-ton boats and 1,000-ton barges. In addition, the port is equipped with a warehouse covering 4,600 square meters and a storage area of around 50,000 square meters to preserve farm products.

Located on the confluence of the Can Giuoc River and the Cho Dem River (in Ben Luc) and Doi Canal, Phu Dinh Port is considered a convenient location to transit commodities transported by boat from HCMC to the Mekong Delta and vice-versa.

Its connection with National Highway 1A and HCMC’s Belt Road 2 offers more choice for enterprises in terms of goods transportation. Accordingly, the port’s cargo throughput is estimated at 2.5 million tons annually.

Phu Dinh is expected to help clear the disorder caused by cargo carriers berthing along the river bank and attract small discharging berths from the inner city, commented Tran Hoa Lan, general director of River Port Ho Chi Minh City Co., Ltd.

Phu Dinh project kicked off in 2003 with an area of over 60 hectares, with the first phase due to be completed by 2007. However, the investor has just finished the first phase worth a total VND398 billion, with VND363 billion coming from the state budget.

Vietnamese firms urged to boost Cambodia trade

Vietnamese businesses need to learn more about the Cambodian market's consumer needs and develop distribution channels in order to expand trade, according to the Vietnamese trade counsellor in Cambodia.

Vu Thinh Cuong, speaking at an online forum on Cambodian trade yesterday, said that products should conform with Cambodian taste and customs, including packaging and labelling.

"Businesses need to establish good distribution channels for the direct circulation of goods to rural residents," he said, adding that rural Cambodians think highly of the quality and price of Vietnamese goods.

He also advised businesses to have reliable Cambodian partners with adequate financial capacity for distribution channels.

For the last eight months of the year, export turnover from Viet Nam to Cambodia reached US$1.5 million, an increase of 59 per cent over the same period last year.

Textile exports gained the strongest growth of 71 per cent, while seafood and food products increased 54 per cent and 46 per cent, respectively, compared with the same period last year.

"Vietnamese processed seafood for rural residents and fresh fish, shrimp and crabs have the most potential," Cuong said.

Key export items from Viet Nam to Cambodia are petrol, construction materials, agricultural machinery, pesticides and fertilisers, plastic items, food and utensils, vegetables, textiles and seafood.

Seven sectors in Cambodia should be given priority, including agriculture and agriculture-supported industry, basic and telecommunications infrastructure, thermoelectric power and energy, industry with high-usage proportion of local labour, hospitality and healthcare, and education.

Viet Nam's 41 projects in Cambodia account for a total investment of $566 million as of 2010, ranking ninth in the top list of countries investing in Cambodia.

Viet Nam has invested in rubber plantations, telecommunications, food processing, textiles and construction materials.

Currently, the Cambodian government allows a lease of 70 years on rubber plantations.

The Viet Nam Industrial Rubber Corporation has developed 14 projects with an area of 100,000ha of land, while private investors have invested in 10 projects with 50,000ha.

As of May, Vietnamese businesses had added two rubber plantation projects with total capital of $60 million.

Cambodia continues to be a key market for Vietnamese goods.

"In 2012, Viet Nam will continue to open exhibition fairs and trade promotions in Cambodia," said Le Bien Cuong, head of the Ministry of Industry and Trade's Southeast Asia Division.

Cuong said this year's promotion programmes to Cambodia still has a national trade promotion campaign that takes place in November.

Conference to call for investment in north central region

A conference that will highlight investment opportunities in Viet Nam's north central region will be held on October 17 in Vinh City, Nghe An Province, announced the Ministry of Planning and Investment.

The Investment Promotion Conference in North Central of Viet Nam will attract more than 700 representatives, giving attendees the chance to exchange and find investment opportunities in the six regional provinces of Nghe An, Thanh Hoa, Ha Tinh, Quang Binh, Quang Tri and Thua Thien-Hue.

In recent years, the region has seen growing investment that has led to improving socio-economic conditions. However, investment potential still remains great.

Up to September 26, the region has attracted 243 foreign investment projects, worth US$19.9 billion, equivalent to 10 per cent of the country's total foreign-invested projects.

Real estate experts call for amendments to property law

Real estate experts have asked the State to consider a new legal documentation system for the real estate market and regulations on charter capital, commissions and capital mobilisation in order to respond to current needs.

During a recent seminar reviewing the laws on land and real estate businesses, Nguyen Van Minh, deputy chairman of the Viet Nam Real Estate Association, said that according to current regulations, real estate businesses must have VND6 billion (US$288,000) in charter capital and at least 20 per cent of the total project investment or 15 per cent of a housing project in equity.

The rate was not meaningful so the State should remove the charter capital licence requirement for property projects to reduce administrative procedures, he said.

Nguyen Thi Nga, a law expert from the Ha Noi Law University, said the charter capital requirement of VND6 billion was insignificant when compared with business demand, which made the requirement unnecessary.

She recommended the State to abolish the low charter capital regulation which would encourage fair competition for property projects. The companies with solid financial capacity would thrive while those without sufficient funds would be forced to abandon property investment activities which required significant long-term capital.

With regard to regulations, there were many contradictions in terms of timing and the rate of mobilisation capital required for property construction projects among official letters and decrees. An amendment was needed to avoid duplication, conflict and difficulties in the application of the law, Minh said.

Additionally, a floor rate or ceiling rate should be set for remuneration and commissions for real estate brokers to create transparency in the market, he said.

Pham Sy Liem, deputy chairman of the Viet Nam Federation of Civil Engineering Associations, said the amended law on real estate business should consider the interests of property buyers because the current law was primarily focused on sellers and investors.

Metro Cash & Carry opens wholesale centre

Metro Cash & Carry opened a new wholesale centre in Ha Long City in the northern province of Quang Ninh yesterday.

Located on 2.3 hectares with a total sales floor of 5,600 square metres in Ha Tu Ward, Metro Ha Long Centre caters for businesses like hotels, restaurants, small- and medium-sized retailers, service companies and offices.

With an investment of US$20.7 million, the new centre sells a variety of 25,000 food and non-food products. This is Metro's 15th wholesale centre in Viet Nam.

US company breaks ground on new plant

The US-based electronic manufacturing services provider Jabil Viet Nam Co. Ltd. began construction of a new plant in Saigon Hi-Tech Park in HCM City's District 9 yesterday.

The 2.5-hectare plant with an investment of US$70 million will assemble electronics products to export to the US, Europe and Asia-Pacific markets, including office equipment, computers, printers and communication and medical equipment.

It is expected to be put into operation in 2013, with an annual turnover target of US$200 million in the first year of operation. It will employ 2,000 employees.

PV