Saturday, December 29, 2007

Vietnam Year End Business News

USD/VND exchange rate margin extended

The Governor of the State Bank of Viet Nam (SBV) on December 24 decided to widen the US dollar and Viet Nam dong (USD/VND) exchange rate margin to +/-0.75 percent from +/-0.5 percent.

The USD/VND exchange rate margin was widened from +/-0.1 percent to +/-0.25 percent on July 1, 2002 and from +/-0.25 percent to +/-0.5 percent on December 31, 2006.

Hai Phong earns over 1.2 billion USD from exports

The northern port city of Hai Phong ’s export turnover is estimated to reach a record of 1.217 billion USD in 2007, a 20 percent year-on-year increase, exceeding the mark of 1 billion USD for two consecutive years.

To the figure, the centrally-run economic sector contributed 131.3 million USD, up 56.2 percent; the locally-run sector, 481.1 million USD, up 0.2 percent and the foreign invested businesses, 604.8 million USD, up 34.7 percent.

In detail, seafood earned of 36.5 million USD; plastics (66.9 million USD); garment and textile (104.7 million USD); footwear (340.8 million USD); electronic products (57.5 million USD); and electric wire and cable (131 million USD).

Nam Trieu, Bach Dang, Ben Kien and Song Cam shipbuilding companies in Hai Phong have built large cargo ships for export under contracts signed with foreign partners, raising their export earnings by 50 percent over last year.

HCM City: FDI increases 16 percent

Ho Chi Minh City attracted nearly 2.6 billion USD of foreign direct investment (FDI) this year, a 16 percent increase over last year.

The city licensed 460 foreign investment projects with a total charter capital of 2.28 billion USD and permitted a total additional capital of 310. 9 million USD for 197 other projects

The real estate sector and consultancy service represented 53.3 per cent of the said investment capital; the industrial parks and processing zones, 6.5 percent; and high-tech parks, 6.2 percent.

HCM City now houses 2,610 operating projects totalling more than 16.55 billion USD, or 20.4 percent rise in the number of projects and 13.6 percent increase in capital compared to last year.
In 2007, FDI businesses make up 20.1 percent of the city’s GDP, 11 percent increase over last year. The sector obtained an industrial production value of 130,544 billion VND, a 19.3 per cent year-on-year increase. High growth was seen in the production of automobile (61.9 percent), building materials (23.4 percent), radio and TV sets (35.7 percent).

These businesses earned a total export turnover of almost 4.9 billion USD, up by 36.5 per cent over last year.

Ha Noi: export revenues increase 22 percent

Ha Noi’s export value in December was estimated to reach 413.6 million USD, thus bringing the city’s total export revenues in 2007 to surpass 4.35 billion USD, a year-on-year increase of 22 percent.

To the figure, the State-owned sector contributed 2.25 billion USD, the foreign invested sector, 1.69 billion USD and the private sector, nearly 413 million USD.

The foreign invested sector recorded the highest growth rate of 28.2 percent, while the State sector, an 18.3 percent increase.

Laser jet printer registered the highest export value of 960.377 million USD and the growth rate of 40.5 percent.

Agricultural products were also among top currency earners, posting a year-on-year increase of 14.7 percent. Garment recorded a growth rate of 14 percent, while footwear and leather item, 11.3 percent.

Meanwhile, the export value of electronic products fell 13.5 percent year-on-year due to the decreasing price and limited export market.

Total import value of Ha Noi-based businesses is forecast to exceed 14.94 billion USD, a year-on-year increase of 21 percent. The figure included more than 4.9 billion USD spent on petroleum.

The import value of equipment, machinery and materials, excluding petroleum, was over 7.45 billion USD, and consumer goods, 2.2 billion USD.

VN-Index close to 900 points after big loss

The VN-Index at the Ho Chi Minh City Stock Exchange (HoSE) continued its downward trend by declining 12.43 points to finish at 918.43 points at the December 25 trading session.

By the end of the session, only 7.4 million shares worth 634 billion VND ware traded.

Blue chippers, including Hau Giang Pharmaceutical JSC (DHG), Kinh Do Corporation (KDC) and North Kinh Dong Food JSC (NKD) experienced decreases of between 2,000 VND and 6,000 VND per share.

The HaSTC Index at Ha Noi bourse also fell 5.93 points to close at 325.64 points with 1.8 million shares worth 179 billion VND changing hands, the lowest value over the last four months.

Biggest losers were seen among new listed shares, including Kinh Bac Construction Company (KBC), with 22,400 VND decrease and Quang Nam Mineral Industrial Company (MIC), which suffered a 15,000 VND drop.

Viet Nam-Laos railway under consideration

The Ministry of Transport has appointed the Viet Nam Railway Department (VRD) to make a feasibility study on the construction of a railway linking Viet Nam and Laos .

As part of the trans-Asia railway system, the route will start at Veuntai village, 12 km north of Thakhet city of Laos , and finish at Mu Gia Pass in Viet Nam ’s central Quang Binh province.

The project is estimated to cost 450 million USD, said VRD Deputy Director Nguyen Van Doanh.

Quang Ngai: Oil spill from ship collision

More than 170 cubic metres of diesel oil split to the sea when two cargo ships collided off shore the Ba Lang An cape of central Quang Ngai province on December 23.

According to Phan Hong Khanh, deputy head of the Dung Quat port’s service bureau, a 1,800-tonne vessel, Hai Xuan 09, was shipping more than 1,700 tonnes of cement from Thanh Hoa to Khanh Hoa, when it hit Ha Loc 08, a 17,000-tonne oil tanker carrying 1,300 tonnes of diesel oil on route from southern Vung Tau port to central Da Nang port. The oil tanker was seriously damaged.

Quang Ngai province has sent a rescue team to assess environmental pollution caused by the accident and asked for measures to prevent oil from spreading on sea.

The cause of the accident is under investigation.

Viet Nam plans to build 6,000 km of expressway

Viet Nam is expected to build nearly 6,000 km of expressway between now and 2020, according to a plan mapped out by the Ministry of Transport.

Under the plan which has been submitted to the Government for approval, around 765 trillion VND will be needed to develop all routes of expressway, including two North-South routes with a total length of 3,520 km.

In addition, six routes in the northern region, which are 975km in total length; three routes in the central and Central Highlands region, 265 km; six routes in the southern region, 834 km, and three belt roads in Ha Noi and Ho Chi Minh City, 286 km, will be built.

Bourses welcome new members

The Ho Chi Minh City Stock Exchange (HoSE) will welcome a new member, Lilama 10 Joint Stock Company under the Viet Nam Machinery Installation Corporation (Lilama), on December 25.

The Lilama 10, coded L10, will offer 9 million shares at the HoSE.

Lilama 10, after 50 years of operation, carried out hundreds key projects in the country, including Hoa Binh, Yaly, and Son La hydro-power plants, Pha Lai 1, 2 and Uong Bi thermal plants, But Son, Nghi Son, Hoang Mai and Chinfon cement plants and the Dung Quat oil refinery.

In December, Ha Noi bourse, HaSTC, also welcomed three subsidiaries of the Viet Nam Construction Import-Export Corporation (Vinaconex). They were Vinaconex 3, coded VC3 with 8 million shares; Vicostone (VCS) and Vinaconex Xuan Mai (XMC) each with 10 million shares.

Vinaconex plans to have additional four subsidiaries to make debut at the HaSTC.