Hanoi to spend $24 million to stabilize prices

Hanoi city is expected to spend VND500 billion (US$24 million) this year to help reduce spiraling prices after a record hike in petrol and electricity prices.

According to the city’s Department of Industry and Trade, a fund worth VND500 billion (US$24 million) this year is dedicated to running a price stabilization program for basic commodities.

The new program, around VND100 billion more than last year’s, will be maintained throughout the year and expanded to the outskirts, said Nguyen Van Dong, deputy director of the department.

Last year’s fund was channeled to Tet’s goods sold at supermarkets and shops in the central area.

Chinese bank opens branch in HCM City

The Shanghai-based Chinese Bank of Communication on Monday opened a branch at Vincom Centre, District 1, HCM City.

The branch will conduct banking activities in Vietnamese dong and foreign currencies as regulated by the Law and the State Bank of Viet Nam.

It will offer credit, payment and budget services, and buy and sell foreign currencies. It will also offer gold trading, insurance, financial and monetary consultancy services.

Construction begins today on CT Plaza

CT Phuong Nam Joint Stock Co is scheduled to start work on CT Plaza today.

The VND1.8 trillion (US$85.7 million) project, which will occupy a 4,275-square metre site, is located at 117 Nguyen Dinh Chieu Street, District 3, HCM City.

The building will have 24 floors, 3 basements, 200 Swiss-style apartments. It will also have luxury hotels and shopping malls.

The plaza is due to be completed in the first quarter of 2013.

Western Bank to increase capital

Western Commercial Joint Stock Bank (Western Bank) decided to issue shares to the public to increase its charter capital by VND1 trillion (US$46,500) to VND3 trillion ($140.000).

The move is expected to help the bank expand its business interests and better serve its clients.

The bank has 75 branches and 20 transaction offices.

Long An industry, craft complexes prosper

Industrial and handicraft complexes in the southern province of Long An have so far attracted 290 projects – 21 of which are foreign-invested – worth VND94 trillion (US$4.4 billion).

At a recent conference, the provincial People's Committee vice chairman, Pham Van Rach, suggested that local authorities and relevant sectors support businesses with implementing their projects in the zones.

The province is home to 46 complexes, covering a total area of 5,800ha.

Delta province draws 12 Japanese investors

Some 12 Japanese enterprises were yesterday granted investment certificates in Long Hau Industrial Zone, in the delta province of Long An.

Japanese enterprises will invest in workshops which were built in the industrial zone in late 2010.

The country has attracted US$1 billion in 93 FDI-invested projects, together with US$86 million in 14 other schemes.

Vincom directors to sell shares

Chairman of property developer Vincom Co Le Khac Hiep and two members of the company's board of directors have registered to sell their holdings of 22.5 million shares, or 75 per cent stakes, in Vincom Securities Co.

The transaction will be carried out through matching and negotiation methods from today to May 2. The sale is aimed at recovering the company's investment capital.

Treasury bonds slow to sell

The Ha Noi Stock Exchange announced the bidding results of the government bonds sold by the State Treasury last Thursday, of which only VND825 billion (US$39.3 million) worth of bonds, or 13.75 per cent of the total value offered for sale, were sold.

Total volume of the bid reached VND6 trillion ($285.7 million) for three types of terms: three-year term, five-year term and 10-year term.

Abouth VND125 billion ($6 million) three-year bonds were sold at an interest rate of 11 per cent per year. VND700 billion ($33.3 million) worth of five-year bonds were sold at an interest rate of 11.39 per cent per year. No 10-year bonds were sold.

Bonds were scheduled to be issued this week with a par value of VND100,000 ($4.76) each.

Developer's initial listing approved

The HCM City Stock Exchange has approved of the initial listing of Soc Trang-based Cuu Long Petro Urban Development and Investment Corporation under the code of CCL.

The company is scheduled to debut 25 million shares, which represents all of its charter capital, on the southern bourse tomorrow at the reference price of VND23,000 (US$1.1) each.

According to its listing prospectus, its total assets in 2010 were reported at VND444 billion ($21.1 million); total revenue reached over VND162.3 ($7.7 million); and its net profit was VND36 billion ($1.7 million).

The company is developing a housing project in southern Soc Trang City covering 112.8ha for middle-income people.

It targets to earn a total revenue of nearly VND450.3 ($21.4 million) and a net profit of VND156 billion ($7.4 million) this year. It also plans to pay a 20 per cent dividend.

Firm announces issue deadline

The HCM City Stock Exchange announced March 9 was the deadline for shareholders of DIC Investment and Trading Co to participate in the company's incoming share issue.

DIC will issue 2.5 million shares to existing shareholders at the ratio of 5:1 at the price of VND11,500 (US$0.55) each. The time to transfer buy rights will start from March 28 to April 20 and the time to register to purchase is until April 22. The transaction is projected to carry out on June 10.

The company earned a total revenue of VND1.13 trillion ($53.8 million) and a net profit of nearly VND28 billion ($1.3 million) last year.

GIC sells 10m shares to ERGO Insurance

The Global Insurance Company (GIC) yesterday announced it had sold 10 million shares to the ERGO Insurance Group (ERGO) in a strategic investment agreement.

In total, the transaction is valued at approximately VND380 billion (over US$17million), not including know-how transfer and technical support, giving ERGO a 25 per cent stake in GIC.

This strategic partnership is expected to strengthen GIC's position in the Vietnamese non-life insurance market as ERGO would provide GIC with technical assistance and expertise across its businesses, with a focus on enhancing retail products such as motor vehicle, fire and transport insurance.

HCM City firm to sell German forklifts

Tin Quang Forklift Company of HCM City and German-based Linde Material Handling are expected to sign a co-operation agreement today to distribute the latter's forklift products in the Vietnamese market.

Under the agreement, Tin Quang Company will be the sole distributor of the German-made forklifts in Viet Nam. This year, the company expects to supply about 100-200 forklifts, each worth VND200-800 million (US$9,524-38,095).

Southern businesses boost co-operation

Leaders of business associations in southern provinces signed an agreement on an annual co-operation programme in HCM City last week.

The programme aims to exchange experiences to enhance the operation and management of business associations, further assist and support businesses and narrow the bridge between businesses and the Government.

Under the programme, each business will have equal rights and obligations when participating in any activities held by the business associations.

Associations will exchange their list of business members and frequently update their lists.

New software offers added protection

Titanium Maximum Security 2011 software with cloud-client technologies to protect against cyber-crime was launched by Taiwan-based Trend Micro Inc in HCM City last week.

The software can stop viruses, spyware and phishing attacks before they reach laptops and desktops because a portion of the application resides on Trend Micro's own servers.

This partially cloud-based architecture also lightens the protected computer's processing, memory and storage load, resulting in significant performance gains.

Transport firms respond to high fuel costs

Transport operators in HCM City have increased rates by 15 to 20 per cent following last Thursday's hike in fuel prices.

More than 100 members of the HCM City Cargo Transport Association had effected the tariff hikes, Thai Van Chung, its general secretary, said.

After petrol and diesel prices increased by 20 per cent, transport operators needed at least a 15 per cent hike to break even since fuel accounts for 40-50 per cent of road transporters' costs, he said, adding rising prices of auto spares were also to blame for the tariff hikes.

More than 30 taxi firms operating a total of 10,000 taxis have sought permission for fare hikes of 10-15 per cent, according to the HCM City Taxi Association.

Two of them had completed the formalities required to get approval for a 12 per cent increase in fares from VND12,500 per kilometre to VND14,000, Le Trung Tinh, head of the Transport Management Office, said.

The Mien Dong Bus Station said 10 firms operating inter-provincial services had registered new fares that are 15-20 per cent higher.

At the Mien Tay Bus Station, two have hiked fares by 18 per cent.

The HCM City Alliance of Transport Co-operatives planned to hike fares on non-subsidised buses on 10 routes by 15 per cent, general director Phung Dang Hai said. Nearly 150 buses run on these routes.

But he warned that fare hikes should be carefully considered in order not to scare people away from public transport.

Mekong Delta forum seeks to connect cities

 

The Mekong Delta Economic Co-operation-Ca Mau 2011 Forum later this year would focus on building better connections between provinces and cities in the region, organisers said at a HCM City press conference on Thursday.

The annual MDEC forum would start with a conference in HCM City in July, followed by four seminars in Ca Mau in October.

The provincial People's Committee chairman, Pham Thanh Tuoi, said the forum aimed to boost investment and business activities, while promoting the strength of the region and each of the 13 individual localities.

It would aid the process of restructuring the local economy and facilitating integration into the global economy, the head of the organising board said.

Themed "The Cuu Long (Mekong) Delta – Links for Sustainable Development", the forum would bring together local and foreign scientists, economists, businesses, managers, and organisations to work out ways to connect the provinces and cities in the Delta.

The forum would centre on inter-regional links among the Cuu Long (Mekong) Delta region and Can Tho City, and the connection between the region and HCM City; and co-operation to map out promotion plans for trade, tourism and investment for the whole region by 2015.

Luu Phuoc Luong, deputy head of the Steering Committee for the Southwestern Region, said the Cuu Long (Mekong) Delta had a host of potential for developing agriculture and tourism with more than 700km of coastline and 28,000km of rivers and canals.

The region contributes over 50 per cent of Viet Nam's paddy output, 90 per cent of rice export, 65 per cent of seafood output and 70 per cent of fruit.

However, Luong said that agricultural mechanisation in the Delta was slow and temporary, with few scientific and technological advances, which held it back competitively.

He also noted unplanned development, the unstable market and prices, diseases and epidemics, and food safety issues that directly impact the lives of Cuu Long (Mekong) Delta people.

Although tourist arrivals increased steadily by 11 per cent year-on-year, there was little variety in the Cuu Long (Mekong) Delta's tourism products, he said.

Luong said that the quality of local tourism staff needed improvement and there was lack of co-operation between the region and HCM City.

The MDEC forum was first held in Can Tho City in 2008 and in Kien Giang Province last year.

Funds needed to upgrade HCM City: Study

 

Around 8.1 per cent of the nation's gross domestic product (GDP) needs to be spent annually to develop HCM City into a world-class transit-oriented metropolis, a German study has found.

Commenting about the study at yesterday's final workshop of the HCM City 21 Initiative project, Conrad Cappell, German consul general in the City, said: "If the proposed investment is done, HCM City could match New York and Paris by 2050. It is not a dream but a real option."

The two-year study was conducted by Vietnamese and German city planners, architects, and engineers, economists from the German International Co-operation Agency, industrial giant Siemens AG, the local Institute of Development Studies, and Hong Kong – based Infratrans Consultancy Limited.

Their brief was to provide strategic advice on development priorities for the City and required performance levels in a broad range of criteria defining the quality of urban life.

HCM City was benchmarked against other global cities to provide a background for an analysis of its strengths and weakness today and opportunities and threats tomorrow.

The initiative identified priority action needs and prepared an immediate action plan.

It looked into the budget needs for developing the City into a top performing metropolis by 2050 and recommended most suitable budget allocations for the main areas of infrastructure.

It pointed out that the 8.1 per cent of GDP spent annually would also bring benefits for the southern region and entire nation.

Around 44 per cent of the amount would be spent on developing nationwide transport infrastructure.

This would enable HCM City to fulfill its role as the country's largest logistics hub and cut the very high cost of logistics obtaining now.

The project is part of a programme to establish partnerships by the German Ministry for Economic Cooperation and Development.

Japan marks $6.1b for major projects

Japan would provide an ODA loan of 500 billion yen (US$6.1 billion) to Viet Nam's two infrastructure development projects, the Lach Huyen Port Complex and the Long Thanh International Airport, as a public-private partnership.

Daily newspaper Nikkei yesterday quoted relevant information resources as saying that the Japanese government would finance the projects through its businesses.

Details of the projects will be discussed in meetings between Vietnamese Politburo members of the Party Central Committee, minister and head of the Government Office Nguyen Xuan Phuc and Japanese authorities next week.

The 140 billion yen ($1.7 billion) Lach Huyen Port Complex in northern Hai Phong Port City will receive 120 billion yen ($1.4 billion) from the Japanese government, while the remaining capital would be provided by Itochu Corp, Nippon Yusen KK and Mitsui O.S.K Lines Ltd.

The three groups will co-operate with Viet Nam National Shipping Lines (Vinalines) to build the port complex, which is expected to become operational in 2015.

They will manage the port for a certain amount of time until they get back their invested capital. Japan's International Co-operation Agency (JICA) is scheduled to build a detailed construction plan by the end of this month.

The Long Thanh International Airport would cost an estimated 300 billion yen ($3.6 billion) to build its major components, including the runway and air traffic control centre.

Mitsubishi Corp, Taisei Corp, Japan Airport Consultants Inc and Narita International Airport Corp will use capital from JICA to conduct research on the project and report to the two governments this year.

The airport is expected to become one of the largest in the region with a designed capacity of handling 100 million passengers and 5 million tonnes of cargo every year. The airport will receive 90 per cent of international flights and 20 per cent of local flights to and from HCM City.

Authorities prepare to crack down on smuggling, counterfeit goods

Relevant agencies and localities have been asked to conduct investigations of domestic prices to ensure stabilisation as well as prevent violators from taking advantage of the "Vietnamese people use Vietnamese goods" programme to bring smuggled and counterfeit goods into the market.

Speaking at an online conference on Thursday to review last year's activities against smuggling, fake goods and trade fraud, and set tasks for this year, Deputy Prime Minister Hoang Trung Hai said preventing and fighting violations were two of the most important tasks to ensure the country's stable economy and promote production.

Hai asked the Ministry of Industry and Trade (MoIT) to promulgate documents that help overcome legal loopholes in policies and mechanisms, and improve market forecasts, management capacity and solutions to responding to unexpected market changes.

Director of MoIT's market management department Nguyen Hung DuõÕng said last year, relevant agencies from provinces and cities throughout the country conducted investigations of 470,000 violations and handled nearly 185,000 cases of illegal transportation of contraband imitation goods and trade fraud to collect a total VND3.2 trillion (US$152 million) in fines.

However, smuggling and trade fraud remained very complicated in the border provinces of Lang Son, Quang Ninh and Lao Cai as well as at sea and river ports, and by air, post and railway, Dung said.

He added that there had also been an increase in trade fraud and intellectual property violations.

Smuggling and trade fraud through borders were expected to increase in terms of larger and more sophisticated operations, though the overall number of cases was likely to fall, he said.

Smugglers could take advantage of tax exemption policies offered to residents in border areas, receipt management, import-export policies and preferential policies at border gate economic zones to slip counterfeits into Viet Nam.

The department said most smugglers would focus on high-value goods including tobacco, wine, electrical goods, coal and wood.

Vice Chairman of the Ha Noi People's Committee Nguyen Huy Tuong said last year the city handled 1,547 smuggling cases and collected around VND100 billion ($4.7 million) in fines.

Tuong added that 60 to 70 per cent of goods circulating in the city were from China.

He said strict measures should be taken at borders to prevent smuggling, adding that localities should co-operate to prevent smuggling along their transportation routes.

The city should focus on specific traffic routes including national highway 1A, 1B, railways and Dong Xuan, Ha Vy and Ninh Hiep markets.

Minister of Industry and Trade Vu Huy Hoang said this year, the ministry would work together with the Ministry of Planning and Investment and the Finance Ministry to finalise a national programme to control the smuggling of counterfeit goods and trade fraud in the 2011-15 period.

It would also ask the Government to issue a decree on administrative punishment for the smuggling of fake goods.

He said customs officers, border guards and maritime police also needed to enhance control over the border provinces and economic border gates.

"It is essential to take more effective measures to curb prices, stabilise the market and control inflation," he said.

The Government should create plans to prevent illegal speculation on goods to raise prices while strictly controlling mineral exploitation, iron and steel production, and trading in substandard poultry products and cosmetics.

"In addition, it is necessary to inform all businesses and consumers about the law," he said.

The department would review difficulties that face the prevention of smuggling and trade fraud activities and report to the Government next month.

HCM City firms join India-ASEAN expo

For the first time ever HCM City-based businesses are taking part in the India-ASEAN Business Fair being held in the Indian capital New Delhi and are hoping to explore business opportunities there.

With a population of 1.2 billion, India has a huge demand for many kinds of goods, especially since domestic production does not meet demand, according to Vietnamese Ambassador to India Nguyen Thanh Tan.

In recent years, the country had become one of Viet Nam's top business partners but two-way trade remained modest compared with potential, he said, adding that Vietnamese goods were not popular in India.

Tu Minh Thien, director of the HCM City Trade Promotion Centre, agreed, saying India was a promising market for Vietnamese goods but geography and cultural differences had discouraged local companies from focusing on it.

With the ASEAN-India Free Trade Agreement taking effect last year, Tan called on Vietnamese firms to step up marketing to boost exports to the country and take advantage of the Agreement.

Deputy Minister of Industry and Trade Nguyen Thanh Bien said there was high demand in India for seafood, farm produce, construction materials, steel, and other goods.

He said if Viet Nam started a direct flight to India, it could attract 400,000-500,000 Indians annually.

Le Quang Dung, deputy director of the Sai Gon Cosmetics Corporation, one of companies promoting the fair, said his firm planned to tie up with Indian partners to set up business there.

At the fair, on Thursday the HCM City People's Committee and the Indian embassy in Ha Noi organised a conference to solicit investment in HCM City.

Last year, bilateral trade was worth nearly US$2.5 billion, of which Indian exports accounted for $1.52 billion.

Viet Nam exports coffee, coal, pepper, rubber, electrical products, and footwear to India, and imports animal feed, steel, iron, plastic products, drugs, and accessories and machinery for the garment and textile industries.

Vietnam foreign investment down 32 pct in Jan-Feb

Vietnam has attracted foreign investment worth US$1.56 billion in the first two months this year, including $86 million to expand existing projects, the Foreign Investment Agency has said.

The amount is 32 percent down year on year and investment in new projects is also down 74.3 percent, the agency, which is run by the Ministry of Planning and Investment, said.

Disbursed foreign capital reached $1.15 billion, up 4.5 percent over the same period last year.

Ho Chi Minh City continued leading the country in attraction of FDI with $1.1 billion poured into projects so far largely due to US solar power company First Solar Inc, which received an investment certificate earlier February to build a $1 billion factory near the city.

Another economic hubs central Danang city, Ba Ria-Vung Tau and Dong Nai in the south attracted FDI worth $180 million, $81.4 million and $47.2 million respectively.

The country targets to attract $20 billion in foreign direct investment pledges for the whole year, up 7.5 percent from 2010.

It will be more selective with new foreign-invested projects, focusing on attracting capital into infrastructure, high-tech and export.

Last year saw pledges of foreign direct investment down about 18 percent from 2009 to $18.6 billion lower than the expected $22-25 billion. Disbursed capital, however, was up 10 percent to about $11 billion.

Hoteliers enjoy high occupancy

Hotel occupancy rates in Ho Chi Minh City stood at 80 percent this month as international visitors came to the city for conferences.

High-end hotels like the Grand, Sheraton Saigon, New World, Duxton and Majestic fared much better than the same period last year, posting occupancy rates of more than 77 percent.

According to the five-star New World Saigon, the 550-room hotel was 94 percent full during the last days of February.

The eight-day WCA Annual Worldwide Conference 2011 attended by 1,600 participants at the Saigon Exhibition & Convention Centre in District 7 contributed to bring guests to the city’s hotels.

At the Sheraton Saigon, the room occupancy also peaked at 99 percent. Businessmen are staying at the hotels for many conferences there along with guests from the logistics conference.

HCMC hoteliers also expected the uptrend of foreign businessmen coming to the city.

The city’s Department of Culture, Sports and Tourism has estimated around 310,000 foreign visitors to HCMC this month, up 8 percent year-on-year. The tourism revenue is expected at VND4.3 trillion this month, up 34 percent.

Vietnam Petrolimex buys 35,000 tonnes of fuel oil

Vietnam's Petrolimex bought up to 35,000 tonnes of March-loading fuel oil, their first purchases from the spot market in about three months, amid strong price-levels for a second consecutive month, traders said on Friday.

The national import-export firm bought via tender 10,000 tonnes of low 0.97 density and 25,000 tonnes of high 0.99 density 180-centistoke fuel oil, for March 15-22 loading from Singapore from BP. Respective premiums were US$25 a tonne and $9 to $10 to Singapore spot quotes on a free-on-board (FOB) basis.

It also cancelled its requirements for another two cargoes, 10,000 tonnes of low-density fuel oil and 25,000 tonnes of 380-cst both for March 1-5 lifting, via the same tender.

"Petrolimex hasn't been very active since the fourth quarter, as they have switched some of their power-generation requirements to coal, which is cheaper," a Singapore-based Western trader said.

"They have also renewed their term deal with LUKOIL for another year and they have some supplies from Dung Quat, so their requirements for this year would not be very much."

Traders said Russian major LUKOIL has sold 2 to 3 cargoes of 30,000 tonnes each for January-loading onwards.

The firm last issued a tender for about 70,000 tonnes of November-December loaders, which was transacted at undisclosed price levels.

 

Prudential Vietnam, Maritime Bank boost cooperation

Prudential Vietnam Life Insurance Co (Prudential Vietnam) and Vietnam Maritime Commercial Joint Stock Bank (Maritime Bank) have signed an agreement to boost cooperation in Hanoi.

Accordingly, the bank's staff will directly distribute the life insurance products of Prudential Vietnam to the customers after being trained by the insurer.

Customers when making transactions at Maritime Bank will be able to access many financial services with different needs and get advice about Prudential's services and products.

According to the roadmap of cooperation, during 2011, there will be thousands of employees of Maritime Bank to be trained by Prudential and will work in dozens of Maritime Bank branches in big cities like Hanoi, Ho Chi Minh City, and Hai Phong.

They will introduce four insurance products including "Gia Phu An Thanh Tai", "Phu An Khang Huu Tri", "Phu Hung Phuc Dinh Ky", "Phu Anh Binh".

This is the second cooperation agreement being signed between Maritime Bank and Prudential Vietnam, marking the successful cooperation in 2010 and towards a long-term and effective cooperation between the two partners in the future.

Maritime Bank and Prudential Vietnam have been successfully co-launching life-insurance products for mortgage loans at Maritime Bank whereby borrowers will be guaranteed financial obligations in case of death or totally and permanent disability.

Vietnam has enough fuel supply: official

Vietnam has enough supply of fuels, Nguyen Cam Tu, Deputy Minister of Industry and Trade, told local media after checking on petrol and oil stocks in Hanoi.

But he admitted that there has been a problem with the distribution process.

The supply has not been adequately distributed to wholesale providers, Tu complained, revealing oil and petrol imports have risen 33 percent over the same period last year.

He confirmed only four out of 12 major providers can ensure sufficient supply now. They are the Vietnam National Petroleum Corporation (Petrolimex), Petec Trading and Investment Corporation (Petec), Petrovietnam Oil Corporation (PV Oil), and Mekong Petroleum Joint Stock Company (PetroMekong).

There has been no hoarding of fuels in Hanoi, he insisted, adding it is not completely fair to crack down on firms and gas stations that either did not provide enough fuel supply or limited operations since they might just do so due to losses. 

The Ministry has asked wholesale providers to distribute enough fuels to the market, especially to such critical regions as the Mekong Delta or the Central Highlands, Tu said.

Agents can only make profits with a VND400 discount on each liter of petrol but many providers, in difficulty, can merely afford a VND150-170 markdown, he said.

Petrolimex system is doing a better job thanks to its VND220-250 discounts, he explained. 

He reiterated that the country has adequate supply of fuels as Petrolimex can ensure 53 percent and the Dung Quat refinery can meet 30 percent of total demand, not to mention PV Oil.

PV Oil will not only provide enough fuels for its agent system but also for gas stations and agents outside the system that have signed contracts with it, Le Xuan Trinh, deputy CEO of the state-owned company, confirmed.

The firm now supplies fuels to more than 2,800 filling stations, Trinh said, ensuring those will always have sufficient supply.

 

IFAD to grant $48.35 mil to boost agriculture

The International Fund for Agricultural Development (IFAD) will give a US$48.35 million loan to the “Tam Nong Support Project” to be developed in three provinces of Vietnam.

The 5-year loan was validated by an agreement signed between Vietnamese Ambassador to Italy, Dang Khanh Thoai, and the representative of the IFAD in Roma, Italy, yesterday.

This is the largest among the loans the IFAD have granted to Vietnam so far.

With “Tam Nong” meaning “agriculture, farmers and rural areas”, the project will give support to 117 poor communes in 16 districts of three provinces: Tuyen Quang, Gia Lai and Ninh Thuan.

As shown on the IFDA website, the project has three components: institutional strengthening for the implementation of pro-poor initiatives under Tam Nong; promotion of pro-poor value chains; and commune market-oriented socio-economic development planning and implementation.

The project’s ultimate goal is to raise the quality of life for rural people, especially those living in the most disadvantaged areas.

Specifically, the project aims to secure the sustained and lucrative economic participation of about 73,800 ethnic minority and rural poor households living in the three countries.

Speaking at the signing ceremony, IFAD President Kannayo Nwanze, who visited Vietnam last month, highly appreciated the progress achieved by the Vietnamese Government in agriculture and rural development.

Vietnam is an excellent example for other developing countries to follow, since the country has from the position of a country lacking food become one of the world’s leading food exporters, significantly contributing to ensuring the world’s food security.

He said IFAD will continue giving support to Vietnam. IFAD will continue seeking ways to enhance the quality of life for rural people, especially ethnic minority communities, in Vietnam, he said.

He also expressed his hope that Vietnam would strengthen cooperation with IFAD in boosting investment in agricultural and rural development.

Lenders expect booming earning result in 2011 

Several commercial banks set a confident earning target this year in spite of financial experts’ worries about a rough year for credit institutions. 

Maritime Bank announced at the shareholder meeting that it targeted a profit of more than VND1.8 trillion (US$86 million) and an unchanged dividend rate of 17 percent this year.

The Hanoi–based bank last year made a pretax profit of VND1.49 trillion, and planed to raise its registered capital to VND8 trillion ($381 million).

However, analysts said the profit target of the lender remain low in term of the return-on-capital ratio.

Another Hanoi-based VPBank also set high earning targets this year, expecting the total asset and pretax profit to reach VND100 trillion and VND1.2 trillion respectively.

With a registered capital of VND5.2 trillion, the bank last year made a profit of VND2.4 trillion, a year-on-year increase of 55 percent.

Eximbank, Vietnam’s eighth largest lender, expected to achieve a return rate of 26 percent at least this year, with a pretax profit of VND3 trillion. The HCMC-based bank has a registered capital of VND10.56 trillion.

Military Bank this year was very cautious in setting up earning targets and business plans due to “recent fluctuations on the monetary market”, said Cao Thuy Nga, deputy director of the lender.

She said the bank targeted to make a growth rate of around 30-40 percent of last year’s results. The Hanoi-based lender last year gained a pretax profit of VND2.1 trillion ($100 million), 24 percent higher than the target.

Pham Duy Hung, general director of VietABank, expected profits of the lender this year would likely to be double time higher than last year, equal to the increasing rate of its registered capital.

The registered capital of the HCMC-based lender last year increased to nearly VND3 trillion from VND1.6 trillion.

Hoang Van Toan, chairman of the TRUSTBank, said the bank would increase its registered capital by 40 percent in 2011. He also expected the pretax profit this year would surge by 98 percent of 2010’s VND302 billion.

Do Minh Toan, vice chairman of DaiABank, set the earning target this year at the rate of four times higher than 2010. The bank has a registered capital of VND3.1 trillion.

Toan said the return-on-capital ratio of most of lenders this year remained low as they expected to raise the registered capital to VND3 trillion.

“Lenders are under pressures of the 15-20 percent increase in the employee payment and shareholders’ requirement of dividend rates, which have to be higher than the interest rate,” he said.

“Therefore, the banks have to set high earning targets in spite of the challenging time. Many lenders setting high targets had to lower the figure at the end of last year”.

Analysts said commercial banks would struggle to meet up the target this year due to tight regulations on credit operations and a harsh competition.

“Profits from gold trading, credit cards and payment services remain low in 2011. Thus banks have to focus on lending, leaving them struggle to earn big profits,” a financial expert

 

Denmark supports private businesses

The Businesses Association in the southern province of An Giang on February 25 held a seminar on the implementation of a project called “The Global Competitiveness Facility for Vietnamese Enterprises” (GCF) for the period 2011-2013.

The project worth VND216 billion funded by the Danish International Development Agency (DANIDA) for the 2011-2013 period will be carried out in eight targeted provinces and cities, including Nghe An, Thanh Hoa, Khanh Hoa, Phu Yen, Lam Dong, Dak Lak, An Giang and Can Tho City.

Senior advisor Amarnath Reddy from the GCF told the seminar that the project will focus on agriculture, aquaculture, fisheries, handicrafts and tourism. It will also provide solutions to challenges faced by small businesses, household enterprises and farmers.

The project will offer new services not already available in the eight targeted provinces and improve the ability for several small producers to export.

During the first phase from 2006-2010, the GCF has provided VND135 billion to four provinces of Ha Tay (now part of Hanoi), Nghe An, Khanh Hoa and Lam Dong, helping to create jobs for 6,400 local people and provide vocational training for more than 8.100 others.

The GCF is designed to increase the competitiveness of non-State businesses in export-oriented business sectors in the targeted provinces through better access to relevant business services and exposure to innovative business models.

The GCF will help to reduce the financial risks that Vietnamese enterprises face and identify and introduce new technologies and business models, apart from access to new markets.

Business associations club together

Eleven business associations in southern Vietnam on Thursday signed an agreement with an aim to strengthen cooperation, especially in exchanging information, connecting members, and creating a bridge between businesses and the Government.

The signing parties included the HCMC Union of Business Association (HUBA) and counterparts from the Mekong Delta region.

Pham Ngoc Hung, vice chairman of HUBA, told local media in HCMC that the business associations’ cooperation would help raise a common voice from enterprises to policymakers to solve difficulties facing local companies, and create networking among them to seek new markets.

The associations plan to organize a trade fair in HCMC in this year’s November to help enterprises in the southern region connect with other local businesses and foreign companies.