Viet Nam, India eye stronger ties
A delegation of 11 Indian companies visited HCM City this week to seek cooperation with Vietnamese industries.
They represented Indian companies in the auto, construction, printing, telecommunication, rubber, cement, painting, battery, shipbuilding, publishing and laboratory and sea port industries.
Speaking at the meeting on Thursday, Kuldeep Singh, acting consul general of India to HCM City said the visit aims to promote trade in Viet Nam through an annual exchange programme with Vietnamese businesses.
Kuldeep Singh said, “Indian businesses should watch the Vietnamese market which is a potential market in the South eastern Asia with many attractive investment opportunities and plentiful labour resources.”
Intel promises rural internet roll-out
The Viet Nam Public Utility Telecommunications Fund (VTF) and Intel Viet Nam have signed a memorandum of understanding to bring computer and internet services to rural and remote areas.
According to the five-year memorandum, which begins this month, VTF and Intel will offer training in internet skills to residents in rural areas.
Intel will also write computer manuals, develop software applications, and translate the software language into Vietnamese.
VTF and Intel will work with government agencies to popularise internet use. Both sides will manufacture computers at a reasonable price and offer after-sales maintenance services.
Cuu Long to sharpen competitiveness
Enhancing the competitiveness of local companies and ensuring sustainable practices are two major goals of government and business leaders in the Cuu Long (Mekong) Delta.
Sepaking at a forum held yesterday (Friday, June 25) in Kien Giang Province’s Rach Gia city, Pham Hoang Hai of the Global Compact Network Viet Nam said the business community should develop strategies to compete globally and practice corporate social responsibility to ensure sustainability.
In doing so, they must ensure that the environment is protected, Bui Ngoc Suong, chairman of Kien Giang Province People’s Committee, said.
Banks back cheaper apartments
The recent promotion of medium-cost property projects by a few banks in HCM City is warming up the real-estate market.
Strong customer support had made cheaper accommodation more feasible, said Nguyen Thi Xuan Lieu, a branch director of Vietinbank.
She said Vietinbank recently approved loans worth VND80 billion (US$4.2 million) for investment in the Phu Gia Hung medium-price apartment project.
Other banks, including MHBank, Sacombank, ABBank and Techcombank, are also interested in the project, which has a total capital of VND200 billion ($10.5 million). This week, they agreed to provide loans to people buying apartments in the project.
Chinese group builds resort
China’s Tianshi Group has started construction of Thien Thanh Resort in Yen Bai Province’s Yen Binh District.
The VND231 billion (US$12.5 million) project will cover an area of 5ha, including a commercial centre and hotels, restaurants, spa, facilities for the elderly, an ecological garden and an exercise area.
It is expected to open within two years. An additional VND270 billion ($14.6 million) will be invested in that period.
CTD wins City Gardens bid
Cotec-Cotecons Construction Joint Stock Company (CTD) has won a contract to build the high-grade City Gardens apartment project.
The project will cover 23,000sq.m, have up to 27 floors and 926 fully serviced apartments.
It will be the largest project carried out by CTD in the south. Investment will total VND953 billion ($51.5 million).
Freeland Building announced
Tasco Joint Stock Company has announced details of its Freeland Building project in the Phap Van-Tu Hiep urban area, 6km from the city centre.
Covering an area of more than 2,000sq.m, the 21-floor building will include two underground car parks, a commercial centre, offices and apartments.
Singapore’s Kyta Company, which designed the Crescent Construction in Phu My Hung urban area, four buildings in Linh Dam and Viet Hung urban areas, will plan the building.
New office tower opens in HCM City
The 12-storey 60 NDC office tower in HCM City’s District 1 was opened recently by real estate developer Dragon Fly Company.
The new Grade-B facility offers tenants monthly rentals of $20-25 per square metre. The floor area covers a total of 4,400sq.m.
Dragon Fly has other reasonably priced high-rises in District 1, including Capital Place on Thai Van Lung and the Empire Tower on Ham Nghi Street.
Exchanges set for co-operation
The Ha Noi and Philippines Stock Exchanges (PSE) have agreed on long-term co-operation.
They will develop information channels to enable data transfers and broaden opportunities for both sides.
Last January, the PSE also agreed to a similar deal with HCM City Stock Exchange.
Sacombank to issue shares
Sacombank Securities Co (SBS) will issue 17 million shares in two phases to shareholders and employees.
In the third quarter, the firm will offer 2.85 million one-year transfer-limited shares to institutional and individual investors for VND35,000 (US$1.85) per share.
In the fourth quarter, it will issue 13.81 million shares to shareholders at a ratio of 3 to 1 and 34,000 shares to staff for VND15,000 ($0.79).
Vien Dong Pharma makes $3.4m
Vien Dong Pharmaceutical Co (DVD) earned a total revenue of VND585 billion (US$30.1 million) and a net profit of VND65 billion ($3.4 million) in the first five months of this year, DVD’s general director Le Van Dung said.
Dung said the company had fulfilled nearly 49 per cent of the year’s revenue target and 45 per cent of its planned net profit.
It has already bought a 20.74-per-cent stake in Savi Pharmaceutical Co and 24.75 per cent of total shares in the Ha Tay Pharmaceutical Co (DHT).
Thuan Thao Co to debut on HCM bourse
Thuan Thao Corp (GTT) has been permitted by HCM City bourse to list 29 million shares for the first time.
However, the exact timetable for the listing was not revealed.
The company, with a charter capital of VND290 billion (US$15.3 million), provides transport services and operates in the fields of real estate, tourism and entertainment.
This year, the firm targets a total revenue of VND485 billion ($25.7 million) and a pre-tax profit of nearly VND50 billion ($2.6 million).
Workshop analyses VN’s economic growth prospects
A workshop on Viet Nam’s economic growth model: its current status and options for the next ten years from 2011-20 and the vision by 2030 was jointly organised on Wednesday by the National Assembly Committee for Economic Affairs and the National Economics University.
Speaking at the event, Ha Van Hien, chairman of the Committee said the objective of the workshop was to thoroughly analyse the current status of the country’s economy and the world economic and financial situation.
“Hopefully, at the end of the workshop, we’ll be able to come up with recommendations that would help Viet Nam overcome barriers and challenges in its economic growth,” said Hien.
“Another important topic for discussion was to find a suitable mechanism in resources allocation of the economy and the relationship between the State, the market and enterprises,” Hien added.
He conceded that the Vietnamese market at present was at a low level of development and didn’t follow “any theoretical rule” written in text books while quite a number of key State owned enterprises have shown signs of monopoly.
“I hope if we can shed light on resources allocation mechanism in a scientific way while ensuring the State’s regulatory role in the market, we’ll be able to create a healthy business environment,” said Hien.
He continued, there were many strong businesses in Viet Nam and they had all the conditions to compete with other foreign businesses on a level playing field.
“This is a key factor for Viet Nam’s economic growth,” said Hien.
Former Deputy Prime Minister Vu Khoan said everyone agreed that Viet Nam must take corrective actions on its economic growth model.
“But how should it be corrected? Where and by what it should be started?” Khoan asked.
“We should start from our ‘head’ i.e. to overcome ourselves first,” Khoan said.
Dr Tran Du Lich, deputy head of the Ho Chi Minh City National Assembly delegation said to renovate, first of all, we must define the State function in the market economy. “This is the foundation to renovate the contents of the economic structure,” said Lich.
Director of the Central Institute for Economic Management (CIEM) Dr Nguyen Dinh Cung said in order to renovate the growth model, it needs three principles. First, the consideration of economic restructuring as a regular and continuous process; it is urgent now, and in the long run. Second, we must achieve a balance between the qualitative and quantitative; and finally, we have to implement a policy promoting economic development in all regions across the country.
Professor Dr Vo Dai Luoc, former director of the Ha Noi-based Institute for World Economy said in all changing orientations, the institutional reform was the most critical. “Institutions must be modernised. The difference between undeveloped, medium and developed nations is their institutions,” said Luoc.
Dr To Trung Thanh, from the National Economics University spoke about the importance of imposing stronger control on capital investment by foreign direct enterprises.
“We should encourage them to invest in industrial production with hi-tech content and say no to projects on extracting mineral resources that cause pollution and use obsolete technology,” said Thanh.
Associate Professor Quach Duc Phap, from the Finance Academy under the Ministry of Finance asked the Government to make best use of available resources for development investment; to comprehensively renovate state revenue collection and spending; and to change the economic development policy.
Addressing the participants, Vice President Nguyen Thi Doan said to create a sustainable economic growth model in the future, it was important to focus on renovation, to improve the quality of the human resources while applying advanced science and technology.
“However to build such a model, for the time being it is important for us to develop quantitatively in order to generate more jobs, to ensure social security and to stabilise the economy.
Professor Dr Kenichi Ohno from the Japanese Institute of National Policy warned that Viet Nam might be trapped in middle-income nation status.
Other ASEAN countries like Malaysia (with a present per capita income of $7,750) and Thailand ($3,973 per capita income) had all failed to avoid the middle-income trap following two decades of remarkable growth in the 1970s and 1980s. Only several economies have been able to avoid the trap by focusing on developing highly skilled human resources and advanced technology.
In the first six months of 2010, Viet Nam achieved a GDP growth of 6-6,1 per cent. In the first quarter, it saw an increase of 5.83 per cent and in the second quarter 6.2-6.4 per cent. The consumer price index (CPI) in June increased by 0.22 per cent compared with the previous month.
Tower complex begins in Ha Noi
The Cau Giay Joint Stock Service, Trade and Investment Company on Wednesday broke ground for the construction of a three-tower complex worth VND3.57 trillion (US$188 million), including a 50-floor tower, the third-highest in Ha Noi.
The complex is located on a total land area of 10,200 square metres on Cau Giay Street. It includes two office-for-lease towers with 38 floors and both equipped with trade centres. The highest tower is an apartment complex with 360 luxury flats, each with an area ranging from 119 to 156sq.m.
The project also has five basements with a combined area of 44,000sq.m, to accommodate 600 cars and more than 700 motorbikes.
The towers are all designed and built by international companies.
Tran Duc Minh, chairman of the Cau Giay company, said that the project would indirectly benefit modern infrastructure in the Cau Giay – My Dinh area, including schools, kindergartens, hospitals, stadiums and trade centres.
It is expected that construction will be finished in June 2013.
The Ha Noi Landmark Tower—the highest building in all of Viet Nam—has a tower with 70 floors, and is also the 17th highest tower in the world. It also has two other towers with 48 floors each.
This is a complex including a hotel, apartments and other things. The project, located along Pham Hung Street, is invested in by the Keangnam Group of South Korea.
The second highest tower is the Ha Noi City Complex, with 65 floors. The Lotte Group of South Korea pumped about $400 million into building the complex, which has shopping centres, hotels, luxurious apartments and other services.
Cargill sweet on cocoa production
“Viet Nam has good potential for exporting cocoa,” said Cargill Inc senior vice president Paul Conway during a visit last week to southern Binh Phuoc Province, where Cargill has established its third cocoa buying station in Bu Dang District.
Two other buying stations were established in Ben Tre and Dac Lac provinces in 2005.
“This is an important source of income for farmers in these provinces, and especially meaningful in diversifying Viet Nam’s agricultural produce and hard-currency exports,” said Deputy Minister of Industry and Trade Nguyen Nam Hai.
Over 12,000 Vietnamese farmers have benefited from Cargill training in best practices for cocoa growing, harvesting and fermentation to help them produce high-quality cocoa beans for international markets.
Cargill has established over 100 cocoa demonstration farms, co-operated with the Ministry of Science and Technology to help establish Vietnamese cocoa standards, and collaborated with the Ministry of Agriculture and Rural Development to release approved cocoa varieties and help build up the value-chain for Vietnamese cocoa.
“Over the next few years, we will see that crop growing significantly and then ultimately we will put a processing plant here to put the added value in the country of origin,” Conway said.
Cocoa cultivation also helps coffee farmers improve incomes when coffee price decline, with the price of cocoa beans on international markets being generally more stable than that of coffee.
Cargill produces a wide range of cocoa and chocolate ingredients to be used in bakery, confectionery, and dairy applications around the world.
To ensure good quality and secure a sustainable supply of cocoa beans, Cargill has its own cocoa bean sourcing operations for buying, handling and exporting in Brazil, Cameroon, Ivory Coast, Indonesia and Viet Nam.
It buys over 70 per cent of the nation’s cocoa output and sells Vietnamese products across the globe.
PV
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