VietNam Business: Asia

Showing posts with label Asia. Show all posts

Saturday, February 19, 2011

Robust economic recovery in East Asia, says WB

The economic recovery in Vietnam in particular and in East Asia and
the Pacific in general is robust, said the World Bank in its latest
East Asia and Pacific Economic Update.

The WB Update was announced at a press briefing in Hanoi on Oct. 19.

According to the Update, Vietnam ’s economy has recovered strongly
with a GDP growth of 5.3 percent in 2009 and is on the way to the
target of 6.5 percent this year. The nation’s foreign investment rose
from 6.9 billion USD in 2009 to 7.6 billion USD in 2010.

In addition, manufacturing companies’ relocation of plants in Southeast
Asia is benefiting Vietnam as its workers’ salaries are low and its
sea-bordered position is favourable for attracting investment capital.

The Update notes that output has recovered to above
pre-crisis levels throughout developing East Asia, and is expanding at
near pre-crisis rates in some countries. Real GDP growth is likely to
rise to 8.9 percent in the region in 2010 (6.7 percent excluding China
), up from 7.3 percent in 2009 and in line with the average growth
rate during the 2000-2008 period. Private sector investment is once
again driving growth, confidence is on the rise, and trade flows have
returned to pre-crisis levels.

Yet, greater confidence
in the region's growth prospects and concerns about tepid economic
expansion in advanced economies is creating the need for policymakers to
perform a delicate balancing act -- in particular, around the return of
large capital inflows and appreciating currencies.

"Should inflows remain strong, especially against a background of weak
global growth, the authorities will be faced with the challenge of
balancing the need for large capital inflows -- especially foreign
direct investment -- with ensuring competitiveness, financial sector
stability, and low inflation," said Vikram Nehru, World Bank chief
economist for the East Asia and Pacific region.

The East
Asia and Pacific Update which is published twice yearly is the WB’s
comprehensive review of the region’s economies./.

Thursday, February 17, 2011

$1 bln. Intel chip factory to open this month

$1 bln. Intel chip factory to open this month Intel Corporation has announced its factory to test and assemble semi-conductors will open in Ho Chi Minh City by the end of this month.

The first large corporation making a high-tech investment in Vietnam has spent US$1 billion in building the new factory, construction of which begain in 2007.

The 500,000-square feet plant is expected to employ around 4,000 workers. This will be the seventh factory of its kind invested by Intel outside the US, with the others located in Malaysia, the Philippines, China and Costa Rica.

Navin Shenoy, Intel general director for the Asia-Pacific region, said the investment would help the corporation tap growth opportunities in the emerging Asian market.

“We expect Asia’s PC market to continue to grow by more than 20 percent annually in the next few years. We definitely will continue to invest in Asia where we see growth,” Shenoy told the Dow Jones Newswire in a recent interview.

He said the US and European consumer markets have showed weak sentiments while “Asia has a young population and a low PC penetration rate. China, India, and Southeast Asian countries like Indonesia and Vietnam are important markets.”

Intel reported more than $11 billion in quarterly revenues in the third quarter, and 58 percent or $6.40 billion of this came from the Asia-Pacific region, a 20 percent increase from $5.32 billion the same period last year.

Sunday, February 13, 2011

Intel to open 1 bln USD factory in Vietnam

Intel Corporation, the world’s largest semiconductor chip maker, will
open its 1 billion USD chip assembly and testing facility in Vietnam
by the end of this month, an executive said.

Intel’s
investment in Vietnam is aimed at tapping growth opportunities in
emerging Asia , Navin Shenoy, Intel’s general manager for Asia-Pacific,
was quoted by The Wall Street Journal as saying on Oct. 14.

"We
expect Asia ’s PC market to continue to grow by more than 20 percent
annually in the next few years. We definitely will continue to invest in
Asia where we see growth," he said.

Intel Corp., the first
major foreign investor in high technology in Vietnam, started
construction of the Vietnam facility in 2007, and 4,000 people are
expected to employ for the plant, according to the paper.

The
Vietnam facility is Intel’s seventh assembly and test site. Other
sites include Penang and Kulim in Malaysia, Cavite in the
Philippines, Chengdu and Shanghai in China, and San Jose in
Costa Rica.

Shenoy said that China, India, Indonesia and
Vietnam are important markets of the US chip maker in Asia, which
has a young population and a low PC penetration rate. He added while the
company is seeing relatively weak sentiment in the US and European
consumer markets, Asian customers and enterprises continue to buy PCs.

Intel
reported more than 11 billion USD in quarterly revenue for the first
time in the third quarter. 58 percent of its third-quarter revenue came
from the Asia-Pacific region which rose 20 percent to a record 6.40
billion USD, compared with 5.32 billion USD a year earlier./.

Sunday, February 6, 2011

Asia travel industry has bright outlook: Abacus CEO

Abacus International President and CEO Robert Bailey at the media briefing for the 7th Abacus International Conference in HCMC on Wednesday evening - Photo: Mong Binh

HCMC – The sunshine is casting over Asia’s travel industry, giving regional travel agents confidence in continuing recovery and growth toward the end of this year and beyond, Abacus International President and CEO Robert Bailey said.

Bailey quoted the latest Abacus Asia Travel Sentiment Survey conducted by Asia’s leading provider of travel solutions and services as saying that up to 62% of travel agents anticipate a promising industry outlook for the next half year.

Bailey highlighted the survey findings at a media briefing on Wednesday evening ahead of the 7th Abacus International Conference 2010 that will kick-off in HCMC on Thursday. He said in a welcome letter handed to the Daily that the event would touch on rewarding topics, with the focus on the changes within Asia and how these changes will lead growth opportunities in this region.

Bailey said recent positive growth in travel bookings had fuelled optimism for the industry’s outlook and for Abacus as its total booking volumes to August recorded 11% year-on-year growth with the number of travelers rising by 15%.

“This trend is expected to continue into the first quarter of 2011. This has been a better than expected result from our earlier forecast of 3-5% in the first half,” Bailey said. He credited the growth to the pent-up demand for leisure travel as well as the return of corporate travel.

Bailey said China and India continued to lead Asia’s travel industry growth but stressed the important role of countries in Indochina. In his presentation at the media briefing, Bailey listed Vietnam alongside China and India as key markets in Asia Pacific growth spurt.

Bailey said Asia certainly remained the most dynamic region, as proved by a surge in international arrivals to Asia Pacific and the expected US$5.2 billion profits from carriers in the region this year.

Preliminary data from the Pacific Asia Travel Association (PATA) showed the number of international visitors to the region in July increased by 15% year-on-year and the January-July figure was up 12% over the same period last year.

Though corporate travelers remain cautious with their travel expenditure and leisure travelers continue to look for the best bargains, Abacus’ survey indicated travel agents still believed the corporate segment as having the most room for growth.

On another aspect, Bailey said mobile platform was standing out within the travel industry and its applications were rapidly being developed to meet the demand, particularly in Asia Pacific where there are over 450 million mobile Internet subscribers.

The dynamic online landscape in Asia, online and mobile solutions and applications for the industry, corporate productivity and opportunities in Indochina are among the topics on the table at the international conference. The event will end this weekend.

Sunday, January 16, 2011

Japan mulls Asia-Pacific free trade talks

TOKYO - Japan is considering joining negotiations for a free trade partnership among Asia-Pacific nations in a bid to bolster its ailing economy, the foreign minister said Thursday.

Foreign Minister Seiji Maehara said the Trans-Pacific Partnership (TPP) concept, including Japan's key ally United States, may help boost Japan's efforts to conclude free trade deals to increase exports.

"The Trans-Pacific Partnership Agreement stands as our promising framework for economic integration in the Asia-Pacific region," Maehara said in an address to a Japan-US business conference in Tokyo.

"I'm fully committed to making the greatest possible efforts to promote Japan's (free trade agreement) and (economic partnership agreement) policies, including looking into Japan's participation in TPP negotiations," he said.

Washington has said it would enter TPP talks, viewing such a deal as a means to advance US economic interests with fast-growing Asia.

Australia, Brunei, Chile, New Zealand, Malaysia, Peru, Singapore, and Vietnam have also said they will join the talks.

Japan has lagged behind other Asian countries -- such as South Korea which Wednesday agreed a pact with the European Union -- in sealing free trade deals.

Former Japanese prime minister Yukio Hatoyama proposed building an East Asian community similar to the EU through economic integration, but the idea evaporated after his resignation in May.

Maehara, who has argued for a stronger Japan-US security alliance, welcomed further American involvement in Asia through forums such as the Asia-Pacific Economic Cooperation (APEC), which Japan hosts this year.

"I believe the active engagement of the United States in this region is an indispensable element for the peace and prosperity in the region," he said.

"I'm greatly encouraged by these signs of increased US commitment to the region," Maehara said.

Tuesday, December 14, 2010

Asia to grow 8.2 pct in 2010, slower next year

Growth across Asia and the Pacific will be the fastest this year since 2007 as the region recovers strongly from the global crisis, but will moderate in 2011

Photo: Reuters

MANILA - Growth across Asia and the Pacific will be the fastest this year since 2007 as the region recovers strongly from the global crisis, but will moderate in 2011, the Asian Development Bank said on Tuesday.

Developing Asia, a diverse group of 45 economies including China, India, Tajikistan, Samoa, and Indonesia, would grow 8.2 percent in 2010 and 7.3 percent in 2011, the ADB said in its update of its 2010 Asian Development Outlook.

The 2010 growth forecast has been revised up from 7.5 percent in April and a forecast of 6.4 percent a year ago; the 2011 forecast is unchanged from April.

"The return of investors' risk appetite for emerging market assets and the strong economic recovery have combined to bring a surge in capital flows to developing Asia," the ADB said.

Those flows -- both portfolio and direct investment -- reflected strong fundamentals and confidence in long-term reforms and growth potential, but also carried risks such as potentially destabilising markets and complicating policy setting.

"The prospect of reversal of inflows remains a possibility in the medium term as monetary tightening in the U.S. and the eurozone narrow the interest rate differentials with developing Asia," the bank said.

"Asian authorities should therefore consider appropriate policy measures to manage a surge in capital inflows and to encourage stable long-term capital flows."

The ADB said Asia would also benefit from greater coordination to overcome fears of losing export competitiveness through unilateral currency strength.

"While price stability must remain the overriding objective of monetary policy, the global crisis highlights the need to prevent asset price bubbles through improved coordination between financial regulation and monetary policy to the region."

China steady, asean up

The ADB maintained a forecast of 9.6 percent growth in China this year, supported by exports and domestic demand, and expected it to ease slightly to 9.1 percent in 2011.

Indian growth was expected to pick up slightly to 8.7 percent in 2011 from 8.5 percent this year, driven by domestic demand, company profits and favourable financing conditions.

Forecast growth for the 10 economies of Southeast Asia has been revised up to 7.4 percent in 2010 -- the fastest since 1996, before the Asian Financial Crisis -- from 5.1 percent.

"The world economy is experiencing considerable uncertainty, though, and there are signs that economic activity across Southeast Asia is starting to decelerate," the ADB said, forecasting regional growth in 2011 at 5.4 percent.

Central Asian economies were benefitting from buoyant oil and metal prices, and remittance inflows, but the ADB said there were exceptions to the regional improvement.

"Country-specific circumstances, such as devastating floods in Pakistan, the ongoing political impasse in Nepal, and political unrest in the Kyrgyz Republic will weigh on future growth," the bank said.

Thursday, December 2, 2010

Indonesia's Telkom eyes acquisitions in SE Asia

JAKARTA - PT Telekomunikasi Indonesia, Indonesia's biggest phone firm, said on Thursday it is looking at acquisitions in Southeast Asia as it sees its domestic market maturing.

Indonesia, Southeast Asia's biggest economy, has become one of the world's most crowded telecommunications markets, with 11 operators fighting for custom in a population of 237 million.

"Telkom is looking for acquisition opportunities in Southeast Asia, including mobile phone providers as our market is starting to mature," said CEO Rinaldi Firmansyah.

"We need a new market but we will not go to Africa. It's too far...But in Asia we're open for any acquisition possibilities," he said on the sidelines of a conference.

Telkom, which rarely comments on regional expansion, tried last year to acquire a stake in Iran Telecom but failed as it lacked backing from Indonesia's government.

Firmansyah did not say how big the firm's warchest would be, but said earlier on Thursday that it sees capital expenditure in 2011 at about US$2 billion.

"We see the same capex for next year at about $2 billion to finance our infrastructure projects as well as maintenance," said Firmansyah.

Telkom needs to invest heavily in telecoms infrastructure such as towers, and is also shifting its focus to data services to earn higher profits as Indonesian subscriber growth slows.

Monday, November 22, 2010

Growing Asian middle class fuels theme park boom

Visitors take pictures on the opening day of Resorts World Sentosa Southeast Asia's first Universal Studios movie theme park in Singapore in March 2010.

Photo: AFP

SINGAPORE - When Singapore first announced it was building a Universal Studios theme park, skeptics wondered if the complex would draw enough crowds to be commercially viable.

But just six months after opening, Universal Studios Singapore has already welcomed more than one million visitors, and other countries in Asia are building even bigger theme parks.

Asia has become the new frontier for large-scale outdoor entertainment complexes thanks to growing affluence in large emerging economies like China, India and Indonesia, and cheaper air travel.

"The industry is moving to Asia," said Christian Aaen, Asian regional director of research firm AECOM Economics, which specializes in entertainment and leisure industry analysis.

"With key fundamentals in place such as the growing middle class and incomes in Asia as well as demand for entertainment and leisure time, this is the perfect product for tourism and economic development," he told AFP.

Tokyo Disneyland and Disney Sea, the Universal Studios park in Osaka and South Korea's homegrown Everland ranked among the world's top 10 theme parks in terms of visitors last year, according to industry consultancy Themed Entertainment Association (TEA).

Encouraged by Asia's promise, Universal Studios signed a deal in January to build its largest theme park in the world in South Korea at a cost of around US$2.67 billion.

When completed in 2014, the resort will be bigger than Universal Studios' four other parks in Hollywood, Florida, Osaka and Singapore combined.

Disneyland has not fared well in Hong Kong -- with a 70 million Hong Kong dollar ($9 million) loss last year, according to the South China Morning Post -- but it is going ahead with a new franchise in Shanghai, with construction expected to start in November.

Denmark's Legoland is setting up its first Asian branch in Malaysia's Johore state close to Singapore, hiring builders to use the famous little plastic bricks to replicate national and state landmarks.

A recent Asian Development Bank (ADB) report said the region's middle class was growing at an exponential rate and poised to become the world's single biggest group of consumers.

In 2008, some 1.9 billion people were broadly classified by the ADB as part of the middle class in Asian developing countries, more than triple the group's size of 565 million in 1990.

China in particular saw its middle class boom, with statistics showing the share of the Chinese population with daily incomes of six to ten dollars surging from 4.8 to 25.5 percent between 1995-2007.

In India, people in that income bracket increased from about 29 percent in 1993-94 to 38 percent in 2004-05, the ADB report showed.

Wealthy Singapore, which has only five million people, is a major beneficiary of Asia's increasingly mobile middle class families.

Nearly 1.1 million tourists entered Singapore in July -- a record high, thanks in part to Universal Studios -- with Indonesia, China, Malaysia and India in the top five countries of origin along with Australia.

"As developing Asia's people secure their middle-class status, its emerging consumers are very much expected to become the next global consumers and assume the traditional role of the US and European middle classes," the ADB said.

AECOM's Aaen said the opening of Universal Studios in Singapore "marked the beginning of the new decade where Asia will dominate and remain the primary region for future growth of the industry".

Thursday, November 11, 2010

Asia defies global newspaper meltdown

Photo: AFP

HONG KONG - Asian newspapers are defying the global print media meltdown while their counterparts in the West spill red ink and lay off staff in droves as readers flock to online news.

Print advertising -- the lifeblood of a newspaper's revenue base -- has plunged 47 percent in the hard-hit North American market since 2005, while the outlook for Europe, Middle East and Africa (EMEA) remains tepid, says a new study by global consultancy Pricewaterhouse Coopers.

However, Asia's newspaper advertising is expected to rise 3.1 percent annually through 2014 to US$27.3 billion, according to PwC's "Global Entertainment and Media Outlook 2010-2014."

The trend toward online news has been slower in Asia where newspapers remain popular, including Japan which has the world's highest newspaper readership.

"In Asia Pacific and Latin America...newspaper readership has held up and is increasing, which accounts for their stronger performance in recent years and faster growth rates compared with North America and EMEA in the next five years," the report said.

Spending in Asia's newspaper sector will rise at 2.3 percent annually through 2014, it added.

In Hong Kong, the city's myriad Chinese and English-language newspapers wage a daily battle for readers in one of the world's most saturated newspaper markets.

Leading tabloid Apple Daily boosts its coverage with fanciful animated depictions of gruesome and violent news stories, and employs an army of young reporters who will stop at little to get the story.

"It is cut-throat competition," says Cheng Ming-yan, Apple's chief editor, adding, "We're not conservative -- we have very aggressive reporting."

Number-one selling Oriental Daily News (ODN) once sued its bitter rival Apple over claims that its reporters tricked ODN colleagues into divulging exclusive stories.

"It is pretty intense -- Hong Kong has always been a newspaper town," said Steve Shellum, executive editor of the English-language daily The Standard.

Newspapers reach almost 80 percent of adults in Hong Kong, a city of seven million, and its two biggest-selling papers each claim a daily readership above 1.2 million, according to "World Press Trends 2010" produced by newspaper association WAN-IFRA.

"Chinese people are eager to get information from newspapers because, traditionally, that was the way their mother and father spent their leisure time," said Cheng at Apple Daily.

But circulation at Hong Kong's paid dailies has still been dropping as free newspapers muscle in on their turf.

Apple not only plans to continue using cartoon animations in its print edition, it is also moving to video with sometimes questionable depictions of news -- all in a bid to attract the next generation.

"It's very important and will become more important. Young people have grown up with cartoons -- they want the image," Cheng said.

Apple's computer-generated video of Tiger Woods' now ex-wife running after his car swinging a golf club -- after hearing of the golf legend's infidelities -- was an Internet sensation, and seems unlikely to be a one-hit wonder.

"Our new business is to focus on live animation news," Cheng said.

That swing to online and video news will ultimately spell doom for newspapers even in the Asian market, said Chan Yuen-ying, director of the University of Hong Kong's journalism school.

"(The decline) is hitting Asia slower and media owners still have some time, but the door is closing," Chan said.

"I don't think there is reason to be optimistic."

Thursday, October 21, 2010

Vinamilk enters Forbes Asia’s ‘Best Under a Billion’

Vinamilk enters Forbes Asia’s ‘Best Under a Billion’ Vietnam has made its debut in Forbes Asia’s “Best Under A Billion” list this year as its leading dairy company, Vinamilk, was ranked among top-performing small-to-midsize enterprises in the Asia-Pacific region.

Vinamilk, which holds a one-third share of Vietnam’s US$1.5-billion dairy market, enjoyed a net profit jump of 67 percent to $90 million. Its revenues climbed by half to $389 million through the first half of 2010, Forbes reported. The company is expected to grow 25 percent this year.

“With revenues doubled and net profit up fourfold in the last four years, it is the most successful of the country’s privatized state-owned enterprises,” according to the September issue of Forbes Asia. In August, Vinamilk began construction on a $120 million dairy plant near Ho Chi Minh City that is expected to be the biggest in Southeast Asia.

The annual “Best Under A Billion” list highlights 200 top-performing firms with revenues under $1 billion from nearly 13,000 publicly listed Asia-Pacific companies, based on earnings growth, sales growth, and shareholders’ return on equity.

China and Hong Kong have outdone the rest of the region for the third consecutive year with 71 one firms on the list, followed by India with 39 entries.

Forbes said 151 new firms appeared on this year’s list.

Vinamilk enters Forbes Asia’s ‘Best Under a Billion’

China and Hong Kong have outdone the rest of the region for the third consecutive year with 71 one firms on the list, followed by India with 39 entries.

Forbes said 151 new firms appeared on this year’s list.

Friday, October 1, 2010

Asia stocks rise on China

Photo: Reuters

SINGAPORE - Asian stocks rose on Wednesday as investors cheered a manufacturing rebound in China and rosier-than-expected Australian growth, which halted the yen's advance towards a 15-year peak against the dollar.

Asian stocks shrugged off a flat lead from Wall Street, reflecting belief that Asia's economic recovery could hold up relatively well compared to the United States, which faces the possibility of a double-dip recession.

Leading European stocks opened 0.4 percent higher, while S&P 500 futures were flat.

China's manufacturing economy regained some momentum in August, while Australia's economy grew at the fastest pace in three years last quarter as households spent far more than expected while exports enjoyed an Asian-driven boom.

"The market is still concerned about the global recovery momentum, but based on fundamentals, some funds will flock from developed countries to Asia," said Daniel Chan, chief economist and wealth management strategist BWC Capital Markets in Hong Kong.

The MSCI index of Asia Pacific stocks outside Japan rose 1.5 percent, led by commodity-related shares due to optimism about Chinese.

But the MSCI Asia index is still down about 2.5 percent so far this year, compared to a 6.6 drop on the MSCI world-wide index, underscoring Asia's economic resilience.

Analysts expect increased volatility in Asian stock and bond markets as markets brace for a slowdown in the world economy.

Japan's Nikkei average rose 1.2 percent after briefly hitting a 16-month low, getting a boost from the Chinese data while technology shares crawled higher in reaction to a sharp fall the day before.

Australian stocks jumped just over 2 percent, the sharpest daily rise since early July, as investors applauded Australia's outperformance against sluggish global economies.

Australia and New Zealand Banking Group led in a rally in local bank shares, powering 2.4 percent higher.

South Korean stocks gained 1.3 percent, propelled by auto and retail counters including Kia Motors and Lotte Shopping, but key technology shares continued to fall amid persisting concern over global economic recovery.

"The market is being helped by gains in defensive, domestic consumption issues as investors seek safer bets," said Lee Sun-yeb, a market analyst at Shinhan Investment Securities.

U.S. Treasury yields rebounded slightly after the benchmark 10-year yield recorded its largest monthly drop in August since late 2008, when markets were reeling from the Lehman Brothers collapse.

Yen off 15-year high

The yen fell as upbeat Chinese and Australian data improved investors' appetite for risk. It extended losses after Japanese ruling party powerbroker Ichiro Ozawa, challenging Prime Minister Naoto Kan in a party leadership vote, said he would implement steps including intervention if the yen rose sharply.

The Australian dollar jumped 1 percent to 75.85 yen and the dollar edged up 0.3 percent to 84.40 yen.

Japanese government bonds fell as investors braced for a debt sale, and the yield curve resumed steepening as superlongs sagged on the underlying prospect of potential political change watering down the government's stance on fiscal austerity.

The 10-year yield was up 5 basis points at 1.010 percent while the 20-year yield climbed 7.5 basis points to 1.735 percent, heading back towards a seven-week high of 1.835 percent hit on Monday.

Gold prices hit a fresh one-month high at $1,250.55 an ounce, while crude gained 36 cents to $72.28 a barrel after tumbling 3.7 percent the previous day on signs U.S. stockpiles rose further last week and prospects of bad weather to suppress demand at the end of the driving season.

Asia stocks rise on China