16:47' 06/05/2008 (GMT+7)
Forming economic groups from general corporations seems to be in fashion in Vietnam. However, experts have pointed out that this is not a good thing in all cases.
The director of a Japanese investment fund said that he cannot understand why Vietnamese enterprises like the word ‘economic groups’. The reports of equitised corporations and private companies all say that the corporations aim to form strong economic groups sooner or later.
Meanwhile, the director said that he thinks the most suitable model for Vietnam in particular and Asia in general is the existence of small- and medium-sized enterprises, which can easily adapt to new circumstances and be competitive.
In fact, the model of chaebol (big conglomerates formed and managed by big families, which control main business fields of the national economy) is shaky. Last year, the Hyundai Group chairman was convicted of embezzling public money. This year, the chairman of Samsung Group announced his resignation following his indictment on tax evasion charges.
In South Korea, the 30 biggest chaebols control 40% of the national economy. Meanwhile, in Vietnam, according to the Ministry of Finance, there are 70 economic groups and general corporations. The giant groups and corporations just make up 40% of GDP, but use 60-70% of bank loans and the same proportion of foreign loans.
Most of the said groups and corporations are operating in the most profitable business fields, where they enjoy a monopoly, including petroleum, electricity, coal, and aviation. Though being the sole players on the pitch, the economic groups and corporations often complain that they incur heavy losses and threaten to raise the sale prices of commodities.
These groups and general corporations especially like setting up subsidiaries, which are the playing fields where they can exploit most of the preferences from the monopoly. Many of them have jumped into other business fields, which has raised concerns about their capacities in business management. Audited financial reports by the groups show that many of them have not been making profit, or even causing the state to suffer losses.
Of course, the bad performance of the groups and the risks they meet lead to risks for the national economy.
Dr Le Dang Doanh, a senior economist, said that Vietnamese economic groups and corporations are now like giants with weak feet. They have large bodies but cannot stand firmly on their feet. They always need the support of the state to survive.
However, analysts have warned that monopolies will be removed under the pressure of global economic integration.
It is necessary now to put economic groups under the strict control of the law, and to tidy up the business environment, expert say.
Tuesday 6 May 2008
solutions needed to stabilise pharmaceuticals market
05:28' 07/05/2008 (GMT+7)
According to the Ministry of Health, by the end of the first quarter of 2008, drug prices on the domestic market had risen by 8.93 percent. However, experts said that unforeseeable circumstances in both world and domestic markets had caused the abrupt increase in drug prices similar to what happened in early 2004.
Deputy Minister of Health Cao Minh Quang attributed the failure to control current drug prices to political instability in many countries around the world, the complicated situation in the domestic market, natural disasters and the soaring inflation rate.
In addition, the prices of input materials, which make up 90 percent of businesses’ production costs have driven domestic drug prices up. Meanwhile, imported medicines continue to be dominated by the global market.
The limited import of rare medicines has led to a monopoly on some drugs and difficulties in controlling the prices of others.
According to the Ministry of Health, approximately 20,000 kinds of drugs are sold in Vietnam. However, domestic producers only focus on common medicines at lower prices.
Meanwhile, poor distribution networks have also increased intermediate costs before patients can access the drugs, Mr Quang said
Many businesses prefer to import drugs through go-betweens rather than import directly from foreign producers in order to enjoy a percentage of their profits. Furthermore, more than 39,000 pharmacies have failed to meet the necessary requirements in terms of space and facilities under the Good Pharmacy Practice (GPP) standard. Currently, less than 40 pharmacies meet the GPP standard compared to the set target of having all GPP pharmacies nationwide by 2011.
According to the Pharmaceutical Product Management Administration, bad quality medicines accounted for 3.30 percent of the total drug samples in 2007, higher than the 2006 level of 3.18 percent while poor-quality medicines with a herbal origin made up a rather higher proportion of 10.8 percent.
Director of the Vietnamese National Institute of Drug Quality Control (NIDQC) Trinh Van Lau said that the amounts of low quality and fake drugs, including domestic and foreign drugs is increasing. In particular, imported drugs and oriental medicines which do not reach quality standards account for more than 10 percent. Mr Lau added that any kind of drug, which sells like hot cakes in the market will be copied immediately. The technology used to copy drugs is so sophisticated that even the real producers get fooled. In the past fake drugs appeared in remote areas but now they are available in the big cities. Antibiotic drugs and oriental medicines are the most copied.
Withdrawing from circulation and confiscation fake and low quality drugs has not been implementing in time. Furthermore, supervising the revoking of drugs is weak.
In order to control prices of drugs in the future, at a recent national meeting of the drug sector, deputy Prime Minister Nguyen Thien Nhan suggested setting up a website to list the prices of every drug and the punishments for violations. He urged the relevant agencies to strictly observe the quality of drugs and the distribution network and publicise the prices.
A long-term solution for controlling the price of drugs is to develop the pharmaceutical industry to gradually produce important antibiotic materials and organic pharmaceuticals to ensure enough materials for the domestic drugs industry. In 2008, the sector will also accelerate the production of domestic drugs as well as Generic drugs to supply the public healthcare system.
Mr Quang emphasised that to stabilise the pharmaceuticals market, Vietnam should increase its supplies and apply standards on the preservation and distribution of drugs to 39,016 retail drug sellers all over the country.
According to the Ministry of Health, by the end of the first quarter of 2008, drug prices on the domestic market had risen by 8.93 percent. However, experts said that unforeseeable circumstances in both world and domestic markets had caused the abrupt increase in drug prices similar to what happened in early 2004.
Deputy Minister of Health Cao Minh Quang attributed the failure to control current drug prices to political instability in many countries around the world, the complicated situation in the domestic market, natural disasters and the soaring inflation rate.
In addition, the prices of input materials, which make up 90 percent of businesses’ production costs have driven domestic drug prices up. Meanwhile, imported medicines continue to be dominated by the global market.
The limited import of rare medicines has led to a monopoly on some drugs and difficulties in controlling the prices of others.
According to the Ministry of Health, approximately 20,000 kinds of drugs are sold in Vietnam. However, domestic producers only focus on common medicines at lower prices.
Meanwhile, poor distribution networks have also increased intermediate costs before patients can access the drugs, Mr Quang said
Many businesses prefer to import drugs through go-betweens rather than import directly from foreign producers in order to enjoy a percentage of their profits. Furthermore, more than 39,000 pharmacies have failed to meet the necessary requirements in terms of space and facilities under the Good Pharmacy Practice (GPP) standard. Currently, less than 40 pharmacies meet the GPP standard compared to the set target of having all GPP pharmacies nationwide by 2011.
According to the Pharmaceutical Product Management Administration, bad quality medicines accounted for 3.30 percent of the total drug samples in 2007, higher than the 2006 level of 3.18 percent while poor-quality medicines with a herbal origin made up a rather higher proportion of 10.8 percent.
Director of the Vietnamese National Institute of Drug Quality Control (NIDQC) Trinh Van Lau said that the amounts of low quality and fake drugs, including domestic and foreign drugs is increasing. In particular, imported drugs and oriental medicines which do not reach quality standards account for more than 10 percent. Mr Lau added that any kind of drug, which sells like hot cakes in the market will be copied immediately. The technology used to copy drugs is so sophisticated that even the real producers get fooled. In the past fake drugs appeared in remote areas but now they are available in the big cities. Antibiotic drugs and oriental medicines are the most copied.
Withdrawing from circulation and confiscation fake and low quality drugs has not been implementing in time. Furthermore, supervising the revoking of drugs is weak.
In order to control prices of drugs in the future, at a recent national meeting of the drug sector, deputy Prime Minister Nguyen Thien Nhan suggested setting up a website to list the prices of every drug and the punishments for violations. He urged the relevant agencies to strictly observe the quality of drugs and the distribution network and publicise the prices.
A long-term solution for controlling the price of drugs is to develop the pharmaceutical industry to gradually produce important antibiotic materials and organic pharmaceuticals to ensure enough materials for the domestic drugs industry. In 2008, the sector will also accelerate the production of domestic drugs as well as Generic drugs to supply the public healthcare system.
Mr Quang emphasised that to stabilise the pharmaceuticals market, Vietnam should increase its supplies and apply standards on the preservation and distribution of drugs to 39,016 retail drug sellers all over the country.
Sunday 4 May 2008
Lao Cai vows six-day project approvals
05:53' 05/05/2008 (GMT+7)
Newly-established firms in the northern mountainous province of Lao Cai can now obtain investment licences in as few as six days.
Three administrative agencies – the Department of Planning and Investment (DPI), the provincial Tax Department and the Department of Public Security– have already taken measures to make business registration easier in order to attract greater investment in the province.
The government of Lao Cai province has pioneered a "three-in-one" approach to the registration process, in which the business registration office within the DPI acts as the single access point for business start-up procedures.
In addition to issuing business registration certificates, the DPI is responsible for interacting with the Tax Department and Public Security Department to assess liability under the tax code and issue an official business licence within just 15 days. "The greatest benefit of this model is that it reduces the time to start up a business," said Vu Kim Quy, head of the Business Registry at Lao Cai’s Department of Planning and Investment. "It now takes only six days for businesses to get all the necessary documentation."
Lao Cai is home to nealy 1,100 firms with a total capital of VND4.5 trillion (US$281.25 million). So far this year, 90 firms have been granted licences, with a total capital of VND929 billion ($58.06 million).
Newly-established firms in the northern mountainous province of Lao Cai can now obtain investment licences in as few as six days.
Three administrative agencies – the Department of Planning and Investment (DPI), the provincial Tax Department and the Department of Public Security– have already taken measures to make business registration easier in order to attract greater investment in the province.
The government of Lao Cai province has pioneered a "three-in-one" approach to the registration process, in which the business registration office within the DPI acts as the single access point for business start-up procedures.
In addition to issuing business registration certificates, the DPI is responsible for interacting with the Tax Department and Public Security Department to assess liability under the tax code and issue an official business licence within just 15 days. "The greatest benefit of this model is that it reduces the time to start up a business," said Vu Kim Quy, head of the Business Registry at Lao Cai’s Department of Planning and Investment. "It now takes only six days for businesses to get all the necessary documentation."
Lao Cai is home to nealy 1,100 firms with a total capital of VND4.5 trillion (US$281.25 million). So far this year, 90 firms have been granted licences, with a total capital of VND929 billion ($58.06 million).
Nine bordergate EZs planned
23:09' 04/05/2008 (GMT+7)
Lorries carry goods through Lao Cai International Bordergate.
Prime Minister Nguyen Tan Dung has approved a plan to set up nine additional economic zones along the country’s bordergate region by 2020, bringing the total number of EZs in the country to 30.
The scheme, endorsed by the Prime Minister on April 25, is part of a larger economic development plan for the bordergate region up to 2020. It focuses on sustainable development and long-lasting friendship and political security between Viet Nam’s border provinces and neighbouring provinces in China, Laos and Cambodia.
The plan calls for the construction of infrastructure and the setting up of a well-co-ordinated management mechanism, together with policies that would increase the gross import-export revenues with neighbouring border regions to US$43 billion by 2020.
The nine target bordergate economic zones are Mong Cai, Lao Cai and Lang Son in the north, the special economic zone of Lao Bao and another central bordergate economic zone Cau Treo, the largest border economic zone of Bo Y in the Central Highlands, Moc Bai, An Giang, and Dong Thap in the south.
These bordergate economic zones should help strengthen international co-operation and attract domestic and foreign investment into the country, according to the master plan.
Bordergate zone
Located in the East-West Economic Corridor and the Viet Nam-Laos-Cambodia economic triangle, the Bo Y bordergate economic zone occupies 400ha in Ngoc Hoi District in the Central Highlands Province of Kon Tum.
To date, 54 investors have launched projects worth VND11 trillion ($687.5 million), including nine projects in the pipeline and 14 that have already been allocated land.
The zone is now focusing on developing infrastructure to attract investors, said Nguyen The Dat, head of the zone’s State management team.
Another bordergate economic zone on the trans-Asia highway, Moc Bai in southern Tay Ninh Province, also has great potential.
Located 70km from HCM City and some 170km from Phnom Penh, the 21.3ha zone opened in March, 2006 and has a commercial-industrial area and a duty-free supermarket.
Provincial authorities approved 38 projects capitalised at VND5.4 trillion ($337.5 million).
Phuong Trinh Co Ltd, in co-operation with Cambodian partners, has invested $3 million in launching a bus route linking Ben Thanh Market in downtown HCM City with Moc Bai and Tay Ninh town.
Lorries carry goods through Lao Cai International Bordergate.
Prime Minister Nguyen Tan Dung has approved a plan to set up nine additional economic zones along the country’s bordergate region by 2020, bringing the total number of EZs in the country to 30.
The scheme, endorsed by the Prime Minister on April 25, is part of a larger economic development plan for the bordergate region up to 2020. It focuses on sustainable development and long-lasting friendship and political security between Viet Nam’s border provinces and neighbouring provinces in China, Laos and Cambodia.
The plan calls for the construction of infrastructure and the setting up of a well-co-ordinated management mechanism, together with policies that would increase the gross import-export revenues with neighbouring border regions to US$43 billion by 2020.
The nine target bordergate economic zones are Mong Cai, Lao Cai and Lang Son in the north, the special economic zone of Lao Bao and another central bordergate economic zone Cau Treo, the largest border economic zone of Bo Y in the Central Highlands, Moc Bai, An Giang, and Dong Thap in the south.
These bordergate economic zones should help strengthen international co-operation and attract domestic and foreign investment into the country, according to the master plan.
Bordergate zone
Located in the East-West Economic Corridor and the Viet Nam-Laos-Cambodia economic triangle, the Bo Y bordergate economic zone occupies 400ha in Ngoc Hoi District in the Central Highlands Province of Kon Tum.
To date, 54 investors have launched projects worth VND11 trillion ($687.5 million), including nine projects in the pipeline and 14 that have already been allocated land.
The zone is now focusing on developing infrastructure to attract investors, said Nguyen The Dat, head of the zone’s State management team.
Another bordergate economic zone on the trans-Asia highway, Moc Bai in southern Tay Ninh Province, also has great potential.
Located 70km from HCM City and some 170km from Phnom Penh, the 21.3ha zone opened in March, 2006 and has a commercial-industrial area and a duty-free supermarket.
Provincial authorities approved 38 projects capitalised at VND5.4 trillion ($337.5 million).
Phuong Trinh Co Ltd, in co-operation with Cambodian partners, has invested $3 million in launching a bus route linking Ben Thanh Market in downtown HCM City with Moc Bai and Tay Ninh town.
BUSINESS IN BRIEF 4/5
23:48' 04/05/2008 (GMT+7)
Zamil spends $20mil to double its Vietnam steel production
Zamil Industries set to spend US$20 million to increase capacity in Vietnam to 100,000 tons a year from 50,000 tons in a bid to tap Asian demand for the construction material.
Zamil Steel, an affiliate of the Saudi Arabian maker of steel, air conditioners, glass and insulation, came to Vietnam in 1993, operating as a representative office.
Zamil Steel Vietnam, a joint venture between Zamil Steel Industries of Saudi Arabia and Japanese Mitsui, was established in Hanoi in 1997 to design, manufacture and supply top quality pre-engineered steel buildings like warehouses, workshops, distribution centers, showrooms, aircraft hangars, schools, and sports halls.
Its first plant in the city’s outlying Noi Bai Industrial Park has designed, fabricated and supplied buildings to Vietnam, China, Japan, and the South East Asia Region with 4,000-ton monthly outputs.
The manufacturer has recently put its second plant into operation in southern Dong Nai Province’s Amata Industrial Park, 35 km from Ho Chi Minh City.
It also aims to open sales offices in more provinces in Vietnam and enter new markets, including Australia and the US.
US executives to visit Vietnam
Some 50 executives from 23 leading US companies seeking business opportunities in Vietnam will begin a three-day visit to the country Monday, reported the US – ASEAN Business Council Saturday.
The business leaders will hold talks with leaders of the Vietnamese government and the Party.
The delegation – including executives from General Electric, Boeing, Chevron, ConocoPhillips, The Dow Chemical Company, ExxonMobil, Fedex, Ford, IBM, and Qualcomm – is led by Matthew Daley, chairman of the US –
ASEAN Business Council, and Stuart Dean, chairman of General Electric Southeast Asia and chairman of the US – Vietnam Trade Council.
Garments and textiles exports hit 2.6 billion USD
The garments and textiles export turnover for April increased by 50 million USD against the previous month, reaching an estimated 700 million USD, marking a rise of 8 percent on month.
During the first four months this year, the garments and textiles sector earned 2.6 billion USD, an on year increase of 24.5 percent. At present, all the deals for the second quarter of 2008 have been covered and prices have increased 10-15 percent on year.
However, footwear export turnover in April is only equal to that of March, reaching an estimated 330 million USD. In the first four months, the footwear sector only earned 1.35 billion USD. In spite of showing a 15.7 percent increase on year, this figure has only reached 30 percent of the yearly target.
No expansion of coffee areas until 2010
The Ministry of Agriculture and Rural Development has issued a directive asking provinces not to expand coffee growing areas from now to 2010, aiming to ensure the yield and quality of the product.
The ministry has asked its department in charge of the work to promptly complete a project on raising the competitiveness of Vietnamese coffee, taking measures to improve coffee quality and supporting farmers to cultivate new high-quality coffee varieties.
The directive also required Central Highlands provinces to urgently complete the rubber development programming, creating favourable conditions for businesses to lease land and cooperate with farmer households in shifting less-effective areas of perennial industrial plants into rubber areas.
In addition, the ministry has instructed localities to minimise the expansion of cassava acreage, especially in areas earmarked for other crops.
From now till 2010, construction of any cassava processing factory far from materials supply areas will not be permitted. Localities should create favourable conditions for modern processing facilities to purchase cassava for production.
The ministry said that unplanned development of crops and slash-and-burn practice for rubber and coffee planting are increasing in many localities, which not only affect the yield, quality and the market balance of the products, but also cause negative ecological effects.
Rice prices return to the normal
The prices of rice in Ho Chi Minh City have resumed to a stable level on April 30 and May 1 after the city's People's Committee asked supermarkets to provide sufficient supply to consumers.
Prices of different kinds of rice have reduced from VND 2,000 to 6,000. Most consumers chose supermarkets as they provided stable prices and unlimited quantity including 150 tonnes on April 30 and 100 tonnes on May 1.
In addition, rice trading corps and supermarkets sent mobile rice selling trucks to industrial zones, export processing zones and remote areas.
As a result, people in the city are buying rice with normal prices.
MoF okays set-up of airline insurance company
The Ministry of Finance has approved the establishment of the Vietnam Airlines Insurance (VNI) Company with initial charter capital of VND 500 billion (US $31.2 million).
VNI has some major founding shareholders, including Vietnam Airlines, the Vietnam Coal and Mineral Industries Group and Vietnam Machinery Installation Corporation among others.
The company will provide insurance services for air transport as well as marine and land transit, accident insurance and other non-life insurance services.
HCM City’s export value surges 34.6%
Ho Chi Minh City ’s export value soared 34.6% to US $7.48 billion in the first four months of the year.
The rise was mainly fueled by increases in earnings from garment and textile, which raked in US $1.08 billion, up 15%; footwear; US $457 million, up 9.1%; and wooden furniture, US $151 million, up 42.3%.
Crude oil remained the spearhead export line of the city as it brought home US $3.48 billion.
Seafood was the only product experiencing a decline in exports. It grossed over US $173 million in the period, a drop of 7.8% compared with the same time last year.
Seafood producers explained that they have been affected by petroleum price hike, which cost them 15-20% more than the previous period.
In the first four months, the country earned US $18.26 billion, a surge of 24.6% over the same period last year.
Vietnam’s seafood appreciated in EU market
Products of Ho Chi Minh City-based Vinh Hoan Seafood Co. was selected one of the best new products at the 2008 European Seafood Exhibition in Belgium .
According to Truong Dinh Hoe, Secretary General of the Vietnam Association of Seafood Exporters and Processors (VASEP), 44 local seafood companies attended the exhibition, including those who joined the event for the first time.
According to the Vietnam Commerce Office in Belgium , last year, Vietnam earned US $950 million from seafood export to the EU, a year-on-year increase of 27%. The figure is estimated to reach US $1.2 billion this year.
Vietnam’s seafood, especially those made from shrimps and catfish, are favoured by foreign clients, said To Thi Tuong Lan, VASEP’s Vice Secretary General.
Real estate website gets some ink
The US-owned real estate website www.metvuong.com is coming out free of charge in paper format for its customers and partners.
Along with listing properties for rent or sale, the publication covers articles about the market and real estate related services.
The monthly publication gives buyers, sellers, renters, and landlords another option to find or release information on land and houses, according to chairman Paul Song.
CB Rechard Ellis, Savills and Indochina Land are among the company’s partners.
Work starts on biogas plants
Construction on two biogas energy plants for Biogas Tay Ninh, a wholly foreign-owned company, began on Monday in the province.
Completion is expected in 10 months for the plants, worth a total of US$3million, which are being built under the build-operate-transfer (BOT) form.
The plants will use waste water discharge from tapioca processing facilities in Tay Ninh Province.
With an average capacity of 3,000 cubic metres of waste water a day, the plants will be able to produce up to 12,000 cubic metres of biogas.
"The plants will help us save energy and reduce up to 90 percent of pollutants from our waste water," said Khun Umnad, general director of the company Tapico Tay Ninh.
Tay Ninh produces one million tonnes of cassava annually, producing about 300,000 tonnes of tapioca.
Pharma plant opens in Phu Yen
Pymepharco Joint Stock Co has opened a plant to manufacture intravenous drugs in the central province of Phu Yen.
The VND184 billion (US$11.5 million) plant, utilising technology from India, Germany and Spain, will adhere to the strict manufacturing standards of the World Health Organisation. Pymepharco works with Stada Vietnam to produce the oral antibiotic Cefdinir.
Binh Dinh be dammed, with new projects
Construction of three hydropower plants in Vinh Thanh District in the south-central province of Binh Dinh began on Sunday.
Vinh Son Hydro-Electricity Plants 3,4 and 5, all situated upstream on the Kon River, are being built by the Vinh Son-Song Hinh Hydroelectricity Joint Stock Company and Vinh Son Investment Joint Stock Company.
The projects were initiated under a Government plan to develop the national electricity grid between 2006 and 2015.
The Vinh Son project 3 is expected to cost VND660 billion (US$41.5 million) and is funded by the Vinh Son-Song Hinh Hydroelectricity Joint Stock Company. When completed in 2010, it will have a capacity of 32MW.
The 18MW Vinh Son Hydroelectricity Plant 4 will cost VND400 billion (US$25 million) and is scheduled to be completed in 2011.
Vinh Son 5 will cost VND600 billion (US$38 million) and the 28MW plant will be ready by 2010.
Binh Duong’s got the juice
Binh Duong authorities have licensed Kirin Acecook Vietnam Ltd Co to build a fruit-juice bottling plant worth US$60 million in the My Phuoc 2 Industrial Zone in Ben Cat District.
The factory, expected to open in May 2009, will have a production capacity of four million bottles of juice a year.
The venture brings together the Kirin Beverage Group of Japan, the Acecook Group of Japan, and the Acecook Vietnam Joint Stock Co.
New PetroVietnam affiliate bows
PetroVietnam Construction Joint Stock Co, a subsidiary of the Vietnam Oil & Gas Group (PetroVietnam), made its debut at a ceremony in Ha Noi last Thursday.
With charter capital of US$ 32.8 million and nearly 3,000 employees, PVC designs and supplies steel structures, pipelines and petroleum storages for onshore and offshore oil and gas projects.
Thais come to Can Tho garden party
Refrigeration Engineering Joint Stock Co (REE), the Sai Gon Agricultural Joint Stock Co and Siam Orchids Thailand Co will create a tropical flower garden in the Cuu Long (Mekong) Delta City of Can Tho.
The garden, covering 200ha, will be built at a cost of VND150 billion (US$9.37 million), with completion expected in 2011. It will be a centre for the collection, hybridisation and production of flowers adapted to the Delta eco-system.
Sai Gon Cable Co to list
The Sai Gon Cable Co will list more than 29 million shares at the Ha Noi Securities Trading Centre on May 6.
The company, which specialises in the trade and production of electrical and telecom cables, is capitalised at VND300 billion (US$18.7 million), 31.1 per cent of which the State holds.
Vinacontrol revenue hits $1.57m
The Vietnam Superintendence and Inspection Co (Vinacontrol) has announced a net revenue of VND25.2 billion (US$1.57 million) in the first quarter of this year, a year-on-year rise of 43.7 per cent.
The company plans to earn a total revenue of VND100 billion this year and pay its shareholders a dividend of 12 per cent.
Vinacontrol specialises in surveying and judging product quality.
SJE earns $278,000 in Q1
The electrical company Song Da 11 has announced a post-tax profit of VND4.45 billion (US$278,000) in the first three months of the year, an increase of 26.3 per cent year-on-year. Shares in the company, coded SJE, closed at VND22,900 on Tuesday..
POT’s Q1 profit plunges 94.5%
The Post and Telecommunication Equipment Co has revealed a post-tax profit of VND258 million (US$16,100) from the first quarter of the year, a plummet of 94.5 per cent against the same period in 2007.
The company, capitalised at VND194.4 billion, pledges to continue with its planned projects this year in hope of achieving a pre-tax profit of VND45 billion on revenue of VND780 billion.
BVS to issue 30m shares
Bao Viet Securities Co, code share BVS, will issue an additional 30 million shares worth VND300 billion (US$18.7 million) on May 6 at the Ha Noi Securities Trading Centre.
The company said it intends to offer the shares to its existing shareholders at a price of VND32,000 a piece.
Ha Tien 1 buyback
The Ha Tien 1 Cement Co has said it will commission the Bao Viet Securities Co to buy back 300,000 shares from May 5 to July 5. The capital used to initiate the buyback will be mobilised from the company’s investment and development fund.
Hoa Phat earns $144 million
The Hoa Phat Co announced a total revenue of VND2.3 trillion (US$144 million) from the first quarter of this year, 30 per cent of its target for the entire year.
The company expects to earn a post-tax profit of more than VND451 billion, 60 per cent of its target figure. Hoa Phat is mainly involved in the trade and production of structural steel.
HCM City speeds up ODA disbursement
Ho Chi Minh City is speeding up the implementation of 23 projects funded by Official Development Assistance (ODA) official.
Most of the projects, which received over 30 trillion VND in ODA commitments, are large-scale transport works.
Since early this year, the city has disbursed over 896 billion VND (56 million USD) of ODA for the projects, or 27.5 percent of the yearly plan.
To accelerate the disbursement of ODA capital, the city is focusing on removing difficulties in site clearance and rising construction material prices.
HCM City targets growth in mechanical engineering
The Ho Chi Minh City People’s Committee has approved a plan to develop the mechanical engineering industry by 2020.
Under the plan, products with high added value and environmentally efficient will be favoured.
Key products will include autos, waterway transport vehicles, machinery and tools, and electric equipment.
All small mechanical establishments will be moved out of the city’s urban areas and modern ones will be moved to local industrial parks.
Zamil spends $20mil to double its Vietnam steel production
Zamil Industries set to spend US$20 million to increase capacity in Vietnam to 100,000 tons a year from 50,000 tons in a bid to tap Asian demand for the construction material.
Zamil Steel, an affiliate of the Saudi Arabian maker of steel, air conditioners, glass and insulation, came to Vietnam in 1993, operating as a representative office.
Zamil Steel Vietnam, a joint venture between Zamil Steel Industries of Saudi Arabia and Japanese Mitsui, was established in Hanoi in 1997 to design, manufacture and supply top quality pre-engineered steel buildings like warehouses, workshops, distribution centers, showrooms, aircraft hangars, schools, and sports halls.
Its first plant in the city’s outlying Noi Bai Industrial Park has designed, fabricated and supplied buildings to Vietnam, China, Japan, and the South East Asia Region with 4,000-ton monthly outputs.
The manufacturer has recently put its second plant into operation in southern Dong Nai Province’s Amata Industrial Park, 35 km from Ho Chi Minh City.
It also aims to open sales offices in more provinces in Vietnam and enter new markets, including Australia and the US.
US executives to visit Vietnam
Some 50 executives from 23 leading US companies seeking business opportunities in Vietnam will begin a three-day visit to the country Monday, reported the US – ASEAN Business Council Saturday.
The business leaders will hold talks with leaders of the Vietnamese government and the Party.
The delegation – including executives from General Electric, Boeing, Chevron, ConocoPhillips, The Dow Chemical Company, ExxonMobil, Fedex, Ford, IBM, and Qualcomm – is led by Matthew Daley, chairman of the US –
ASEAN Business Council, and Stuart Dean, chairman of General Electric Southeast Asia and chairman of the US – Vietnam Trade Council.
Garments and textiles exports hit 2.6 billion USD
The garments and textiles export turnover for April increased by 50 million USD against the previous month, reaching an estimated 700 million USD, marking a rise of 8 percent on month.
During the first four months this year, the garments and textiles sector earned 2.6 billion USD, an on year increase of 24.5 percent. At present, all the deals for the second quarter of 2008 have been covered and prices have increased 10-15 percent on year.
However, footwear export turnover in April is only equal to that of March, reaching an estimated 330 million USD. In the first four months, the footwear sector only earned 1.35 billion USD. In spite of showing a 15.7 percent increase on year, this figure has only reached 30 percent of the yearly target.
No expansion of coffee areas until 2010
The Ministry of Agriculture and Rural Development has issued a directive asking provinces not to expand coffee growing areas from now to 2010, aiming to ensure the yield and quality of the product.
The ministry has asked its department in charge of the work to promptly complete a project on raising the competitiveness of Vietnamese coffee, taking measures to improve coffee quality and supporting farmers to cultivate new high-quality coffee varieties.
The directive also required Central Highlands provinces to urgently complete the rubber development programming, creating favourable conditions for businesses to lease land and cooperate with farmer households in shifting less-effective areas of perennial industrial plants into rubber areas.
In addition, the ministry has instructed localities to minimise the expansion of cassava acreage, especially in areas earmarked for other crops.
From now till 2010, construction of any cassava processing factory far from materials supply areas will not be permitted. Localities should create favourable conditions for modern processing facilities to purchase cassava for production.
The ministry said that unplanned development of crops and slash-and-burn practice for rubber and coffee planting are increasing in many localities, which not only affect the yield, quality and the market balance of the products, but also cause negative ecological effects.
Rice prices return to the normal
The prices of rice in Ho Chi Minh City have resumed to a stable level on April 30 and May 1 after the city's People's Committee asked supermarkets to provide sufficient supply to consumers.
Prices of different kinds of rice have reduced from VND 2,000 to 6,000. Most consumers chose supermarkets as they provided stable prices and unlimited quantity including 150 tonnes on April 30 and 100 tonnes on May 1.
In addition, rice trading corps and supermarkets sent mobile rice selling trucks to industrial zones, export processing zones and remote areas.
As a result, people in the city are buying rice with normal prices.
MoF okays set-up of airline insurance company
The Ministry of Finance has approved the establishment of the Vietnam Airlines Insurance (VNI) Company with initial charter capital of VND 500 billion (US $31.2 million).
VNI has some major founding shareholders, including Vietnam Airlines, the Vietnam Coal and Mineral Industries Group and Vietnam Machinery Installation Corporation among others.
The company will provide insurance services for air transport as well as marine and land transit, accident insurance and other non-life insurance services.
HCM City’s export value surges 34.6%
Ho Chi Minh City ’s export value soared 34.6% to US $7.48 billion in the first four months of the year.
The rise was mainly fueled by increases in earnings from garment and textile, which raked in US $1.08 billion, up 15%; footwear; US $457 million, up 9.1%; and wooden furniture, US $151 million, up 42.3%.
Crude oil remained the spearhead export line of the city as it brought home US $3.48 billion.
Seafood was the only product experiencing a decline in exports. It grossed over US $173 million in the period, a drop of 7.8% compared with the same time last year.
Seafood producers explained that they have been affected by petroleum price hike, which cost them 15-20% more than the previous period.
In the first four months, the country earned US $18.26 billion, a surge of 24.6% over the same period last year.
Vietnam’s seafood appreciated in EU market
Products of Ho Chi Minh City-based Vinh Hoan Seafood Co. was selected one of the best new products at the 2008 European Seafood Exhibition in Belgium .
According to Truong Dinh Hoe, Secretary General of the Vietnam Association of Seafood Exporters and Processors (VASEP), 44 local seafood companies attended the exhibition, including those who joined the event for the first time.
According to the Vietnam Commerce Office in Belgium , last year, Vietnam earned US $950 million from seafood export to the EU, a year-on-year increase of 27%. The figure is estimated to reach US $1.2 billion this year.
Vietnam’s seafood, especially those made from shrimps and catfish, are favoured by foreign clients, said To Thi Tuong Lan, VASEP’s Vice Secretary General.
Real estate website gets some ink
The US-owned real estate website www.metvuong.com is coming out free of charge in paper format for its customers and partners.
Along with listing properties for rent or sale, the publication covers articles about the market and real estate related services.
The monthly publication gives buyers, sellers, renters, and landlords another option to find or release information on land and houses, according to chairman Paul Song.
CB Rechard Ellis, Savills and Indochina Land are among the company’s partners.
Work starts on biogas plants
Construction on two biogas energy plants for Biogas Tay Ninh, a wholly foreign-owned company, began on Monday in the province.
Completion is expected in 10 months for the plants, worth a total of US$3million, which are being built under the build-operate-transfer (BOT) form.
The plants will use waste water discharge from tapioca processing facilities in Tay Ninh Province.
With an average capacity of 3,000 cubic metres of waste water a day, the plants will be able to produce up to 12,000 cubic metres of biogas.
"The plants will help us save energy and reduce up to 90 percent of pollutants from our waste water," said Khun Umnad, general director of the company Tapico Tay Ninh.
Tay Ninh produces one million tonnes of cassava annually, producing about 300,000 tonnes of tapioca.
Pharma plant opens in Phu Yen
Pymepharco Joint Stock Co has opened a plant to manufacture intravenous drugs in the central province of Phu Yen.
The VND184 billion (US$11.5 million) plant, utilising technology from India, Germany and Spain, will adhere to the strict manufacturing standards of the World Health Organisation. Pymepharco works with Stada Vietnam to produce the oral antibiotic Cefdinir.
Binh Dinh be dammed, with new projects
Construction of three hydropower plants in Vinh Thanh District in the south-central province of Binh Dinh began on Sunday.
Vinh Son Hydro-Electricity Plants 3,4 and 5, all situated upstream on the Kon River, are being built by the Vinh Son-Song Hinh Hydroelectricity Joint Stock Company and Vinh Son Investment Joint Stock Company.
The projects were initiated under a Government plan to develop the national electricity grid between 2006 and 2015.
The Vinh Son project 3 is expected to cost VND660 billion (US$41.5 million) and is funded by the Vinh Son-Song Hinh Hydroelectricity Joint Stock Company. When completed in 2010, it will have a capacity of 32MW.
The 18MW Vinh Son Hydroelectricity Plant 4 will cost VND400 billion (US$25 million) and is scheduled to be completed in 2011.
Vinh Son 5 will cost VND600 billion (US$38 million) and the 28MW plant will be ready by 2010.
Binh Duong’s got the juice
Binh Duong authorities have licensed Kirin Acecook Vietnam Ltd Co to build a fruit-juice bottling plant worth US$60 million in the My Phuoc 2 Industrial Zone in Ben Cat District.
The factory, expected to open in May 2009, will have a production capacity of four million bottles of juice a year.
The venture brings together the Kirin Beverage Group of Japan, the Acecook Group of Japan, and the Acecook Vietnam Joint Stock Co.
New PetroVietnam affiliate bows
PetroVietnam Construction Joint Stock Co, a subsidiary of the Vietnam Oil & Gas Group (PetroVietnam), made its debut at a ceremony in Ha Noi last Thursday.
With charter capital of US$ 32.8 million and nearly 3,000 employees, PVC designs and supplies steel structures, pipelines and petroleum storages for onshore and offshore oil and gas projects.
Thais come to Can Tho garden party
Refrigeration Engineering Joint Stock Co (REE), the Sai Gon Agricultural Joint Stock Co and Siam Orchids Thailand Co will create a tropical flower garden in the Cuu Long (Mekong) Delta City of Can Tho.
The garden, covering 200ha, will be built at a cost of VND150 billion (US$9.37 million), with completion expected in 2011. It will be a centre for the collection, hybridisation and production of flowers adapted to the Delta eco-system.
Sai Gon Cable Co to list
The Sai Gon Cable Co will list more than 29 million shares at the Ha Noi Securities Trading Centre on May 6.
The company, which specialises in the trade and production of electrical and telecom cables, is capitalised at VND300 billion (US$18.7 million), 31.1 per cent of which the State holds.
Vinacontrol revenue hits $1.57m
The Vietnam Superintendence and Inspection Co (Vinacontrol) has announced a net revenue of VND25.2 billion (US$1.57 million) in the first quarter of this year, a year-on-year rise of 43.7 per cent.
The company plans to earn a total revenue of VND100 billion this year and pay its shareholders a dividend of 12 per cent.
Vinacontrol specialises in surveying and judging product quality.
SJE earns $278,000 in Q1
The electrical company Song Da 11 has announced a post-tax profit of VND4.45 billion (US$278,000) in the first three months of the year, an increase of 26.3 per cent year-on-year. Shares in the company, coded SJE, closed at VND22,900 on Tuesday..
POT’s Q1 profit plunges 94.5%
The Post and Telecommunication Equipment Co has revealed a post-tax profit of VND258 million (US$16,100) from the first quarter of the year, a plummet of 94.5 per cent against the same period in 2007.
The company, capitalised at VND194.4 billion, pledges to continue with its planned projects this year in hope of achieving a pre-tax profit of VND45 billion on revenue of VND780 billion.
BVS to issue 30m shares
Bao Viet Securities Co, code share BVS, will issue an additional 30 million shares worth VND300 billion (US$18.7 million) on May 6 at the Ha Noi Securities Trading Centre.
The company said it intends to offer the shares to its existing shareholders at a price of VND32,000 a piece.
Ha Tien 1 buyback
The Ha Tien 1 Cement Co has said it will commission the Bao Viet Securities Co to buy back 300,000 shares from May 5 to July 5. The capital used to initiate the buyback will be mobilised from the company’s investment and development fund.
Hoa Phat earns $144 million
The Hoa Phat Co announced a total revenue of VND2.3 trillion (US$144 million) from the first quarter of this year, 30 per cent of its target for the entire year.
The company expects to earn a post-tax profit of more than VND451 billion, 60 per cent of its target figure. Hoa Phat is mainly involved in the trade and production of structural steel.
HCM City speeds up ODA disbursement
Ho Chi Minh City is speeding up the implementation of 23 projects funded by Official Development Assistance (ODA) official.
Most of the projects, which received over 30 trillion VND in ODA commitments, are large-scale transport works.
Since early this year, the city has disbursed over 896 billion VND (56 million USD) of ODA for the projects, or 27.5 percent of the yearly plan.
To accelerate the disbursement of ODA capital, the city is focusing on removing difficulties in site clearance and rising construction material prices.
HCM City targets growth in mechanical engineering
The Ho Chi Minh City People’s Committee has approved a plan to develop the mechanical engineering industry by 2020.
Under the plan, products with high added value and environmentally efficient will be favoured.
Key products will include autos, waterway transport vehicles, machinery and tools, and electric equipment.
All small mechanical establishments will be moved out of the city’s urban areas and modern ones will be moved to local industrial parks.
BUSINESS IN BRIEF 4/5
23:48' 04/05/2008 (GMT+7)
Zamil spends $20mil to double its Vietnam steel production
Zamil Industries set to spend US$20 million to increase capacity in Vietnam to 100,000 tons a year from 50,000 tons in a bid to tap Asian demand for the construction material.
Zamil Steel, an affiliate of the Saudi Arabian maker of steel, air conditioners, glass and insulation, came to Vietnam in 1993, operating as a representative office.
Zamil Steel Vietnam, a joint venture between Zamil Steel Industries of Saudi Arabia and Japanese Mitsui, was established in Hanoi in 1997 to design, manufacture and supply top quality pre-engineered steel buildings like warehouses, workshops, distribution centers, showrooms, aircraft hangars, schools, and sports halls.
Its first plant in the city’s outlying Noi Bai Industrial Park has designed, fabricated and supplied buildings to Vietnam, China, Japan, and the South East Asia Region with 4,000-ton monthly outputs.
The manufacturer has recently put its second plant into operation in southern Dong Nai Province’s Amata Industrial Park, 35 km from Ho Chi Minh City.
It also aims to open sales offices in more provinces in Vietnam and enter new markets, including Australia and the US.
US executives to visit Vietnam
Some 50 executives from 23 leading US companies seeking business opportunities in Vietnam will begin a three-day visit to the country Monday, reported the US – ASEAN Business Council Saturday.
The business leaders will hold talks with leaders of the Vietnamese government and the Party.
The delegation – including executives from General Electric, Boeing, Chevron, ConocoPhillips, The Dow Chemical Company, ExxonMobil, Fedex, Ford, IBM, and Qualcomm – is led by Matthew Daley, chairman of the US –
ASEAN Business Council, and Stuart Dean, chairman of General Electric Southeast Asia and chairman of the US – Vietnam Trade Council.
Garments and textiles exports hit 2.6 billion USD
The garments and textiles export turnover for April increased by 50 million USD against the previous month, reaching an estimated 700 million USD, marking a rise of 8 percent on month.
During the first four months this year, the garments and textiles sector earned 2.6 billion USD, an on year increase of 24.5 percent. At present, all the deals for the second quarter of 2008 have been covered and prices have increased 10-15 percent on year.
However, footwear export turnover in April is only equal to that of March, reaching an estimated 330 million USD. In the first four months, the footwear sector only earned 1.35 billion USD. In spite of showing a 15.7 percent increase on year, this figure has only reached 30 percent of the yearly target.
No expansion of coffee areas until 2010
The Ministry of Agriculture and Rural Development has issued a directive asking provinces not to expand coffee growing areas from now to 2010, aiming to ensure the yield and quality of the product.
The ministry has asked its department in charge of the work to promptly complete a project on raising the competitiveness of Vietnamese coffee, taking measures to improve coffee quality and supporting farmers to cultivate new high-quality coffee varieties.
The directive also required Central Highlands provinces to urgently complete the rubber development programming, creating favourable conditions for businesses to lease land and cooperate with farmer households in shifting less-effective areas of perennial industrial plants into rubber areas.
In addition, the ministry has instructed localities to minimise the expansion of cassava acreage, especially in areas earmarked for other crops.
From now till 2010, construction of any cassava processing factory far from materials supply areas will not be permitted. Localities should create favourable conditions for modern processing facilities to purchase cassava for production.
The ministry said that unplanned development of crops and slash-and-burn practice for rubber and coffee planting are increasing in many localities, which not only affect the yield, quality and the market balance of the products, but also cause negative ecological effects.
Rice prices return to the normal
The prices of rice in Ho Chi Minh City have resumed to a stable level on April 30 and May 1 after the city's People's Committee asked supermarkets to provide sufficient supply to consumers.
Prices of different kinds of rice have reduced from VND 2,000 to 6,000. Most consumers chose supermarkets as they provided stable prices and unlimited quantity including 150 tonnes on April 30 and 100 tonnes on May 1.
In addition, rice trading corps and supermarkets sent mobile rice selling trucks to industrial zones, export processing zones and remote areas.
As a result, people in the city are buying rice with normal prices.
MoF okays set-up of airline insurance company
The Ministry of Finance has approved the establishment of the Vietnam Airlines Insurance (VNI) Company with initial charter capital of VND 500 billion (US $31.2 million).
VNI has some major founding shareholders, including Vietnam Airlines, the Vietnam Coal and Mineral Industries Group and Vietnam Machinery Installation Corporation among others.
The company will provide insurance services for air transport as well as marine and land transit, accident insurance and other non-life insurance services.
HCM City’s export value surges 34.6%
Ho Chi Minh City ’s export value soared 34.6% to US $7.48 billion in the first four months of the year.
The rise was mainly fueled by increases in earnings from garment and textile, which raked in US $1.08 billion, up 15%; footwear; US $457 million, up 9.1%; and wooden furniture, US $151 million, up 42.3%.
Crude oil remained the spearhead export line of the city as it brought home US $3.48 billion.
Seafood was the only product experiencing a decline in exports. It grossed over US $173 million in the period, a drop of 7.8% compared with the same time last year.
Seafood producers explained that they have been affected by petroleum price hike, which cost them 15-20% more than the previous period.
In the first four months, the country earned US $18.26 billion, a surge of 24.6% over the same period last year.
Vietnam’s seafood appreciated in EU market
Products of Ho Chi Minh City-based Vinh Hoan Seafood Co. was selected one of the best new products at the 2008 European Seafood Exhibition in Belgium .
According to Truong Dinh Hoe, Secretary General of the Vietnam Association of Seafood Exporters and Processors (VASEP), 44 local seafood companies attended the exhibition, including those who joined the event for the first time.
According to the Vietnam Commerce Office in Belgium , last year, Vietnam earned US $950 million from seafood export to the EU, a year-on-year increase of 27%. The figure is estimated to reach US $1.2 billion this year.
Vietnam’s seafood, especially those made from shrimps and catfish, are favoured by foreign clients, said To Thi Tuong Lan, VASEP’s Vice Secretary General.
Real estate website gets some ink
The US-owned real estate website www.metvuong.com is coming out free of charge in paper format for its customers and partners.
Along with listing properties for rent or sale, the publication covers articles about the market and real estate related services.
The monthly publication gives buyers, sellers, renters, and landlords another option to find or release information on land and houses, according to chairman Paul Song.
CB Rechard Ellis, Savills and Indochina Land are among the company’s partners.
Work starts on biogas plants
Construction on two biogas energy plants for Biogas Tay Ninh, a wholly foreign-owned company, began on Monday in the province.
Completion is expected in 10 months for the plants, worth a total of US$3million, which are being built under the build-operate-transfer (BOT) form.
The plants will use waste water discharge from tapioca processing facilities in Tay Ninh Province.
With an average capacity of 3,000 cubic metres of waste water a day, the plants will be able to produce up to 12,000 cubic metres of biogas.
"The plants will help us save energy and reduce up to 90 percent of pollutants from our waste water," said Khun Umnad, general director of the company Tapico Tay Ninh.
Tay Ninh produces one million tonnes of cassava annually, producing about 300,000 tonnes of tapioca.
Pharma plant opens in Phu Yen
Pymepharco Joint Stock Co has opened a plant to manufacture intravenous drugs in the central province of Phu Yen.
The VND184 billion (US$11.5 million) plant, utilising technology from India, Germany and Spain, will adhere to the strict manufacturing standards of the World Health Organisation. Pymepharco works with Stada Vietnam to produce the oral antibiotic Cefdinir.
Binh Dinh be dammed, with new projects
Construction of three hydropower plants in Vinh Thanh District in the south-central province of Binh Dinh began on Sunday.
Vinh Son Hydro-Electricity Plants 3,4 and 5, all situated upstream on the Kon River, are being built by the Vinh Son-Song Hinh Hydroelectricity Joint Stock Company and Vinh Son Investment Joint Stock Company.
The projects were initiated under a Government plan to develop the national electricity grid between 2006 and 2015.
The Vinh Son project 3 is expected to cost VND660 billion (US$41.5 million) and is funded by the Vinh Son-Song Hinh Hydroelectricity Joint Stock Company. When completed in 2010, it will have a capacity of 32MW.
The 18MW Vinh Son Hydroelectricity Plant 4 will cost VND400 billion (US$25 million) and is scheduled to be completed in 2011.
Vinh Son 5 will cost VND600 billion (US$38 million) and the 28MW plant will be ready by 2010.
Binh Duong’s got the juice
Binh Duong authorities have licensed Kirin Acecook Vietnam Ltd Co to build a fruit-juice bottling plant worth US$60 million in the My Phuoc 2 Industrial Zone in Ben Cat District.
The factory, expected to open in May 2009, will have a production capacity of four million bottles of juice a year.
The venture brings together the Kirin Beverage Group of Japan, the Acecook Group of Japan, and the Acecook Vietnam Joint Stock Co.
New PetroVietnam affiliate bows
PetroVietnam Construction Joint Stock Co, a subsidiary of the Vietnam Oil & Gas Group (PetroVietnam), made its debut at a ceremony in Ha Noi last Thursday.
With charter capital of US$ 32.8 million and nearly 3,000 employees, PVC designs and supplies steel structures, pipelines and petroleum storages for onshore and offshore oil and gas projects.
Thais come to Can Tho garden party
Refrigeration Engineering Joint Stock Co (REE), the Sai Gon Agricultural Joint Stock Co and Siam Orchids Thailand Co will create a tropical flower garden in the Cuu Long (Mekong) Delta City of Can Tho.
The garden, covering 200ha, will be built at a cost of VND150 billion (US$9.37 million), with completion expected in 2011. It will be a centre for the collection, hybridisation and production of flowers adapted to the Delta eco-system.
Sai Gon Cable Co to list
The Sai Gon Cable Co will list more than 29 million shares at the Ha Noi Securities Trading Centre on May 6.
The company, which specialises in the trade and production of electrical and telecom cables, is capitalised at VND300 billion (US$18.7 million), 31.1 per cent of which the State holds.
Vinacontrol revenue hits $1.57m
The Vietnam Superintendence and Inspection Co (Vinacontrol) has announced a net revenue of VND25.2 billion (US$1.57 million) in the first quarter of this year, a year-on-year rise of 43.7 per cent.
The company plans to earn a total revenue of VND100 billion this year and pay its shareholders a dividend of 12 per cent.
Vinacontrol specialises in surveying and judging product quality.
SJE earns $278,000 in Q1
The electrical company Song Da 11 has announced a post-tax profit of VND4.45 billion (US$278,000) in the first three months of the year, an increase of 26.3 per cent year-on-year. Shares in the company, coded SJE, closed at VND22,900 on Tuesday..
POT’s Q1 profit plunges 94.5%
The Post and Telecommunication Equipment Co has revealed a post-tax profit of VND258 million (US$16,100) from the first quarter of the year, a plummet of 94.5 per cent against the same period in 2007.
The company, capitalised at VND194.4 billion, pledges to continue with its planned projects this year in hope of achieving a pre-tax profit of VND45 billion on revenue of VND780 billion.
BVS to issue 30m shares
Bao Viet Securities Co, code share BVS, will issue an additional 30 million shares worth VND300 billion (US$18.7 million) on May 6 at the Ha Noi Securities Trading Centre.
The company said it intends to offer the shares to its existing shareholders at a price of VND32,000 a piece.
Ha Tien 1 buyback
The Ha Tien 1 Cement Co has said it will commission the Bao Viet Securities Co to buy back 300,000 shares from May 5 to July 5. The capital used to initiate the buyback will be mobilised from the company’s investment and development fund.
Hoa Phat earns $144 million
The Hoa Phat Co announced a total revenue of VND2.3 trillion (US$144 million) from the first quarter of this year, 30 per cent of its target for the entire year.
The company expects to earn a post-tax profit of more than VND451 billion, 60 per cent of its target figure. Hoa Phat is mainly involved in the trade and production of structural steel.
HCM City speeds up ODA disbursement
Ho Chi Minh City is speeding up the implementation of 23 projects funded by Official Development Assistance (ODA) official.
Most of the projects, which received over 30 trillion VND in ODA commitments, are large-scale transport works.
Since early this year, the city has disbursed over 896 billion VND (56 million USD) of ODA for the projects, or 27.5 percent of the yearly plan.
To accelerate the disbursement of ODA capital, the city is focusing on removing difficulties in site clearance and rising construction material prices.
HCM City targets growth in mechanical engineering
The Ho Chi Minh City People’s Committee has approved a plan to develop the mechanical engineering industry by 2020.
Under the plan, products with high added value and environmentally efficient will be favoured.
Key products will include autos, waterway transport vehicles, machinery and tools, and electric equipment.
All small mechanical establishments will be moved out of the city’s urban areas and modern ones will be moved to local industrial parks.
Zamil spends $20mil to double its Vietnam steel production
Zamil Industries set to spend US$20 million to increase capacity in Vietnam to 100,000 tons a year from 50,000 tons in a bid to tap Asian demand for the construction material.
Zamil Steel, an affiliate of the Saudi Arabian maker of steel, air conditioners, glass and insulation, came to Vietnam in 1993, operating as a representative office.
Zamil Steel Vietnam, a joint venture between Zamil Steel Industries of Saudi Arabia and Japanese Mitsui, was established in Hanoi in 1997 to design, manufacture and supply top quality pre-engineered steel buildings like warehouses, workshops, distribution centers, showrooms, aircraft hangars, schools, and sports halls.
Its first plant in the city’s outlying Noi Bai Industrial Park has designed, fabricated and supplied buildings to Vietnam, China, Japan, and the South East Asia Region with 4,000-ton monthly outputs.
The manufacturer has recently put its second plant into operation in southern Dong Nai Province’s Amata Industrial Park, 35 km from Ho Chi Minh City.
It also aims to open sales offices in more provinces in Vietnam and enter new markets, including Australia and the US.
US executives to visit Vietnam
Some 50 executives from 23 leading US companies seeking business opportunities in Vietnam will begin a three-day visit to the country Monday, reported the US – ASEAN Business Council Saturday.
The business leaders will hold talks with leaders of the Vietnamese government and the Party.
The delegation – including executives from General Electric, Boeing, Chevron, ConocoPhillips, The Dow Chemical Company, ExxonMobil, Fedex, Ford, IBM, and Qualcomm – is led by Matthew Daley, chairman of the US –
ASEAN Business Council, and Stuart Dean, chairman of General Electric Southeast Asia and chairman of the US – Vietnam Trade Council.
Garments and textiles exports hit 2.6 billion USD
The garments and textiles export turnover for April increased by 50 million USD against the previous month, reaching an estimated 700 million USD, marking a rise of 8 percent on month.
During the first four months this year, the garments and textiles sector earned 2.6 billion USD, an on year increase of 24.5 percent. At present, all the deals for the second quarter of 2008 have been covered and prices have increased 10-15 percent on year.
However, footwear export turnover in April is only equal to that of March, reaching an estimated 330 million USD. In the first four months, the footwear sector only earned 1.35 billion USD. In spite of showing a 15.7 percent increase on year, this figure has only reached 30 percent of the yearly target.
No expansion of coffee areas until 2010
The Ministry of Agriculture and Rural Development has issued a directive asking provinces not to expand coffee growing areas from now to 2010, aiming to ensure the yield and quality of the product.
The ministry has asked its department in charge of the work to promptly complete a project on raising the competitiveness of Vietnamese coffee, taking measures to improve coffee quality and supporting farmers to cultivate new high-quality coffee varieties.
The directive also required Central Highlands provinces to urgently complete the rubber development programming, creating favourable conditions for businesses to lease land and cooperate with farmer households in shifting less-effective areas of perennial industrial plants into rubber areas.
In addition, the ministry has instructed localities to minimise the expansion of cassava acreage, especially in areas earmarked for other crops.
From now till 2010, construction of any cassava processing factory far from materials supply areas will not be permitted. Localities should create favourable conditions for modern processing facilities to purchase cassava for production.
The ministry said that unplanned development of crops and slash-and-burn practice for rubber and coffee planting are increasing in many localities, which not only affect the yield, quality and the market balance of the products, but also cause negative ecological effects.
Rice prices return to the normal
The prices of rice in Ho Chi Minh City have resumed to a stable level on April 30 and May 1 after the city's People's Committee asked supermarkets to provide sufficient supply to consumers.
Prices of different kinds of rice have reduced from VND 2,000 to 6,000. Most consumers chose supermarkets as they provided stable prices and unlimited quantity including 150 tonnes on April 30 and 100 tonnes on May 1.
In addition, rice trading corps and supermarkets sent mobile rice selling trucks to industrial zones, export processing zones and remote areas.
As a result, people in the city are buying rice with normal prices.
MoF okays set-up of airline insurance company
The Ministry of Finance has approved the establishment of the Vietnam Airlines Insurance (VNI) Company with initial charter capital of VND 500 billion (US $31.2 million).
VNI has some major founding shareholders, including Vietnam Airlines, the Vietnam Coal and Mineral Industries Group and Vietnam Machinery Installation Corporation among others.
The company will provide insurance services for air transport as well as marine and land transit, accident insurance and other non-life insurance services.
HCM City’s export value surges 34.6%
Ho Chi Minh City ’s export value soared 34.6% to US $7.48 billion in the first four months of the year.
The rise was mainly fueled by increases in earnings from garment and textile, which raked in US $1.08 billion, up 15%; footwear; US $457 million, up 9.1%; and wooden furniture, US $151 million, up 42.3%.
Crude oil remained the spearhead export line of the city as it brought home US $3.48 billion.
Seafood was the only product experiencing a decline in exports. It grossed over US $173 million in the period, a drop of 7.8% compared with the same time last year.
Seafood producers explained that they have been affected by petroleum price hike, which cost them 15-20% more than the previous period.
In the first four months, the country earned US $18.26 billion, a surge of 24.6% over the same period last year.
Vietnam’s seafood appreciated in EU market
Products of Ho Chi Minh City-based Vinh Hoan Seafood Co. was selected one of the best new products at the 2008 European Seafood Exhibition in Belgium .
According to Truong Dinh Hoe, Secretary General of the Vietnam Association of Seafood Exporters and Processors (VASEP), 44 local seafood companies attended the exhibition, including those who joined the event for the first time.
According to the Vietnam Commerce Office in Belgium , last year, Vietnam earned US $950 million from seafood export to the EU, a year-on-year increase of 27%. The figure is estimated to reach US $1.2 billion this year.
Vietnam’s seafood, especially those made from shrimps and catfish, are favoured by foreign clients, said To Thi Tuong Lan, VASEP’s Vice Secretary General.
Real estate website gets some ink
The US-owned real estate website www.metvuong.com is coming out free of charge in paper format for its customers and partners.
Along with listing properties for rent or sale, the publication covers articles about the market and real estate related services.
The monthly publication gives buyers, sellers, renters, and landlords another option to find or release information on land and houses, according to chairman Paul Song.
CB Rechard Ellis, Savills and Indochina Land are among the company’s partners.
Work starts on biogas plants
Construction on two biogas energy plants for Biogas Tay Ninh, a wholly foreign-owned company, began on Monday in the province.
Completion is expected in 10 months for the plants, worth a total of US$3million, which are being built under the build-operate-transfer (BOT) form.
The plants will use waste water discharge from tapioca processing facilities in Tay Ninh Province.
With an average capacity of 3,000 cubic metres of waste water a day, the plants will be able to produce up to 12,000 cubic metres of biogas.
"The plants will help us save energy and reduce up to 90 percent of pollutants from our waste water," said Khun Umnad, general director of the company Tapico Tay Ninh.
Tay Ninh produces one million tonnes of cassava annually, producing about 300,000 tonnes of tapioca.
Pharma plant opens in Phu Yen
Pymepharco Joint Stock Co has opened a plant to manufacture intravenous drugs in the central province of Phu Yen.
The VND184 billion (US$11.5 million) plant, utilising technology from India, Germany and Spain, will adhere to the strict manufacturing standards of the World Health Organisation. Pymepharco works with Stada Vietnam to produce the oral antibiotic Cefdinir.
Binh Dinh be dammed, with new projects
Construction of three hydropower plants in Vinh Thanh District in the south-central province of Binh Dinh began on Sunday.
Vinh Son Hydro-Electricity Plants 3,4 and 5, all situated upstream on the Kon River, are being built by the Vinh Son-Song Hinh Hydroelectricity Joint Stock Company and Vinh Son Investment Joint Stock Company.
The projects were initiated under a Government plan to develop the national electricity grid between 2006 and 2015.
The Vinh Son project 3 is expected to cost VND660 billion (US$41.5 million) and is funded by the Vinh Son-Song Hinh Hydroelectricity Joint Stock Company. When completed in 2010, it will have a capacity of 32MW.
The 18MW Vinh Son Hydroelectricity Plant 4 will cost VND400 billion (US$25 million) and is scheduled to be completed in 2011.
Vinh Son 5 will cost VND600 billion (US$38 million) and the 28MW plant will be ready by 2010.
Binh Duong’s got the juice
Binh Duong authorities have licensed Kirin Acecook Vietnam Ltd Co to build a fruit-juice bottling plant worth US$60 million in the My Phuoc 2 Industrial Zone in Ben Cat District.
The factory, expected to open in May 2009, will have a production capacity of four million bottles of juice a year.
The venture brings together the Kirin Beverage Group of Japan, the Acecook Group of Japan, and the Acecook Vietnam Joint Stock Co.
New PetroVietnam affiliate bows
PetroVietnam Construction Joint Stock Co, a subsidiary of the Vietnam Oil & Gas Group (PetroVietnam), made its debut at a ceremony in Ha Noi last Thursday.
With charter capital of US$ 32.8 million and nearly 3,000 employees, PVC designs and supplies steel structures, pipelines and petroleum storages for onshore and offshore oil and gas projects.
Thais come to Can Tho garden party
Refrigeration Engineering Joint Stock Co (REE), the Sai Gon Agricultural Joint Stock Co and Siam Orchids Thailand Co will create a tropical flower garden in the Cuu Long (Mekong) Delta City of Can Tho.
The garden, covering 200ha, will be built at a cost of VND150 billion (US$9.37 million), with completion expected in 2011. It will be a centre for the collection, hybridisation and production of flowers adapted to the Delta eco-system.
Sai Gon Cable Co to list
The Sai Gon Cable Co will list more than 29 million shares at the Ha Noi Securities Trading Centre on May 6.
The company, which specialises in the trade and production of electrical and telecom cables, is capitalised at VND300 billion (US$18.7 million), 31.1 per cent of which the State holds.
Vinacontrol revenue hits $1.57m
The Vietnam Superintendence and Inspection Co (Vinacontrol) has announced a net revenue of VND25.2 billion (US$1.57 million) in the first quarter of this year, a year-on-year rise of 43.7 per cent.
The company plans to earn a total revenue of VND100 billion this year and pay its shareholders a dividend of 12 per cent.
Vinacontrol specialises in surveying and judging product quality.
SJE earns $278,000 in Q1
The electrical company Song Da 11 has announced a post-tax profit of VND4.45 billion (US$278,000) in the first three months of the year, an increase of 26.3 per cent year-on-year. Shares in the company, coded SJE, closed at VND22,900 on Tuesday..
POT’s Q1 profit plunges 94.5%
The Post and Telecommunication Equipment Co has revealed a post-tax profit of VND258 million (US$16,100) from the first quarter of the year, a plummet of 94.5 per cent against the same period in 2007.
The company, capitalised at VND194.4 billion, pledges to continue with its planned projects this year in hope of achieving a pre-tax profit of VND45 billion on revenue of VND780 billion.
BVS to issue 30m shares
Bao Viet Securities Co, code share BVS, will issue an additional 30 million shares worth VND300 billion (US$18.7 million) on May 6 at the Ha Noi Securities Trading Centre.
The company said it intends to offer the shares to its existing shareholders at a price of VND32,000 a piece.
Ha Tien 1 buyback
The Ha Tien 1 Cement Co has said it will commission the Bao Viet Securities Co to buy back 300,000 shares from May 5 to July 5. The capital used to initiate the buyback will be mobilised from the company’s investment and development fund.
Hoa Phat earns $144 million
The Hoa Phat Co announced a total revenue of VND2.3 trillion (US$144 million) from the first quarter of this year, 30 per cent of its target for the entire year.
The company expects to earn a post-tax profit of more than VND451 billion, 60 per cent of its target figure. Hoa Phat is mainly involved in the trade and production of structural steel.
HCM City speeds up ODA disbursement
Ho Chi Minh City is speeding up the implementation of 23 projects funded by Official Development Assistance (ODA) official.
Most of the projects, which received over 30 trillion VND in ODA commitments, are large-scale transport works.
Since early this year, the city has disbursed over 896 billion VND (56 million USD) of ODA for the projects, or 27.5 percent of the yearly plan.
To accelerate the disbursement of ODA capital, the city is focusing on removing difficulties in site clearance and rising construction material prices.
HCM City targets growth in mechanical engineering
The Ho Chi Minh City People’s Committee has approved a plan to develop the mechanical engineering industry by 2020.
Under the plan, products with high added value and environmentally efficient will be favoured.
Key products will include autos, waterway transport vehicles, machinery and tools, and electric equipment.
All small mechanical establishments will be moved out of the city’s urban areas and modern ones will be moved to local industrial parks.
Salt makers rake in the dough on rising prices
23:03' 04/05/2008 (GMT+7)
A salt worker in Duc Pho District in the central province of Quang Ngai harvests salt.
Sharp increases in the price of salt has compelled salt workers in the Mekong (Cuu Long) Delta region to fill up their aquaculture areas to produce salt again.
Several years ago, the price of salt was low, even falling to VND100,000 (US$6.25) per tonne. Salt makers could hardly make ends meet even while working very hard.
Unable to earn a living from making salt, a lot of farmers in the Mekong Delta shifted to aquaculture. However, earlier this year, the price of salt increased considerably, rising to VND1 to 1.2 million ($62.50 - $75) per tonne.
The increase was due to bad weather-early and long-lasting rainy periods - which caused low yields for salt makers.
Farmers in these areas, who gain little from aquaculture, are shifting back to salt again, hoping to earn more money.
According to estimates by departments of agriculture and rural development nationwide, salt makers in Ben Tre Province’s biggest salt producing area widened their production area to 860ha, and Soc Trang Province’s Vinh Chau District now has 1,400ha for salt production. Meanwhile, farmers in Tra Vinh Province have filled up 100ha of shrimp-raising area to make salt.
Many farmers in Ninh Thuan Province even borrowed money to invest in making salt. Trinh De Thoai, a resident of Khanh Chu Village in Khanh Hai Commune of Ninh Hai District, borrowed money at a very high interest rate. According to him, the cost of salt production is about VND180,000 ($11.25) per tonne, while the price of salt is currently VND1 million per tonne. Salt makers can profit greatly from making salt this year, earning VND25 to 30 million (up to $1,825) per ha.
According to Chau Thanh Long, deputy director of Ninh Thuan Province’s Department of Agriculture and Rural Development, Ninh Hai District has 800ha of shrimp-raising area. But earlier this year farmers filled up all these area to make salt.
"Though the increase in salt prices can help farmers make better earnings, giving over all cultivation area to salt making will destroy the province’s long-term plan for aquaculture," said Long.
This has become an issue that is hard to control among farmers: whenever a product’s price is high, farmers will immediately widen production area, ignoring the warnings of local authorities and planners.
A good trend or not?
"We cannot ban farmers from making salt. We have warned them not to destroy aquaculture raising areas to make salt, since the price of salt has always been fluctuating and irregular. But farmers all see the short-term profit," said Nguyen Minh Dang, vice chairman of the Long Dien Tay Commune’s People’s Committee in Bac Lieu Province.
Le Hung Hien, head of the Economic Department of Ninh Thuoc District in Ninh Thuan Province, shared the same concerns, saying that if the price of salt comes down again in the coming years, farmers’ lives in these areas would become even harder.
Stable development
With long-term perspective, the application of modern production methods in making salt needs to be carried out so that farmers can carry on with this traditional job.
According to Deputy Minister of Agriculture and Rural Development Diep Kinh Tan, the sector will put priority investment into trial projects for salt production that apply new technologies in order to gradually modernise the salt-making process.
The goal is to improve the productivity of salt making from 50 - 60 tonnes per hectare to 75 - 80 tonnes per hectare, instead of massive widening in production area.
Ben Tre Province has been successful in applying a new production model by covering the surface of the salt making area with plastic canvas. This can help shorten production time as well as increase productivity and salt quality. However, this method is costly, at around VND4.2 million ($260) per ha.
Thus, local authorities are therefore urged to support salt makers in providing preferential borrowing interest or other policies that encourage the adoption of more advanced production methods.
A salt worker in Duc Pho District in the central province of Quang Ngai harvests salt.
Sharp increases in the price of salt has compelled salt workers in the Mekong (Cuu Long) Delta region to fill up their aquaculture areas to produce salt again.
Several years ago, the price of salt was low, even falling to VND100,000 (US$6.25) per tonne. Salt makers could hardly make ends meet even while working very hard.
Unable to earn a living from making salt, a lot of farmers in the Mekong Delta shifted to aquaculture. However, earlier this year, the price of salt increased considerably, rising to VND1 to 1.2 million ($62.50 - $75) per tonne.
The increase was due to bad weather-early and long-lasting rainy periods - which caused low yields for salt makers.
Farmers in these areas, who gain little from aquaculture, are shifting back to salt again, hoping to earn more money.
According to estimates by departments of agriculture and rural development nationwide, salt makers in Ben Tre Province’s biggest salt producing area widened their production area to 860ha, and Soc Trang Province’s Vinh Chau District now has 1,400ha for salt production. Meanwhile, farmers in Tra Vinh Province have filled up 100ha of shrimp-raising area to make salt.
Many farmers in Ninh Thuan Province even borrowed money to invest in making salt. Trinh De Thoai, a resident of Khanh Chu Village in Khanh Hai Commune of Ninh Hai District, borrowed money at a very high interest rate. According to him, the cost of salt production is about VND180,000 ($11.25) per tonne, while the price of salt is currently VND1 million per tonne. Salt makers can profit greatly from making salt this year, earning VND25 to 30 million (up to $1,825) per ha.
According to Chau Thanh Long, deputy director of Ninh Thuan Province’s Department of Agriculture and Rural Development, Ninh Hai District has 800ha of shrimp-raising area. But earlier this year farmers filled up all these area to make salt.
"Though the increase in salt prices can help farmers make better earnings, giving over all cultivation area to salt making will destroy the province’s long-term plan for aquaculture," said Long.
This has become an issue that is hard to control among farmers: whenever a product’s price is high, farmers will immediately widen production area, ignoring the warnings of local authorities and planners.
A good trend or not?
"We cannot ban farmers from making salt. We have warned them not to destroy aquaculture raising areas to make salt, since the price of salt has always been fluctuating and irregular. But farmers all see the short-term profit," said Nguyen Minh Dang, vice chairman of the Long Dien Tay Commune’s People’s Committee in Bac Lieu Province.
Le Hung Hien, head of the Economic Department of Ninh Thuoc District in Ninh Thuan Province, shared the same concerns, saying that if the price of salt comes down again in the coming years, farmers’ lives in these areas would become even harder.
Stable development
With long-term perspective, the application of modern production methods in making salt needs to be carried out so that farmers can carry on with this traditional job.
According to Deputy Minister of Agriculture and Rural Development Diep Kinh Tan, the sector will put priority investment into trial projects for salt production that apply new technologies in order to gradually modernise the salt-making process.
The goal is to improve the productivity of salt making from 50 - 60 tonnes per hectare to 75 - 80 tonnes per hectare, instead of massive widening in production area.
Ben Tre Province has been successful in applying a new production model by covering the surface of the salt making area with plastic canvas. This can help shorten production time as well as increase productivity and salt quality. However, this method is costly, at around VND4.2 million ($260) per ha.
Thus, local authorities are therefore urged to support salt makers in providing preferential borrowing interest or other policies that encourage the adoption of more advanced production methods.
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