VietNam Business: Asia Pacific

Showing posts with label Asia Pacific. Show all posts

Monday, February 21, 2011

Inflation undercuts growth gains

HA NOI — Viet Nam is quickly recovering from the financial crisis and can easily attain its targeted growth rate for this year, although inflation remains a huge challenge, said the World Bank in its East Asia and Pacific Economic Update yesterday.

Titled ‘Robust Recovery, Rising Risks', the half-yearly update gives assessments and outlooks on economies in the Asia-Pacific region.

"The target for real GDP growth in 2010 is an easily attainable 6.5 per cent," said the report on Viet Nam.

"The recovery has consolidated in recent months."

The country escaped from the global financial crisis "better than could have been anticipated" thanks to a sizeable stimulus package during the last two years.

However, World Bank economists also noted that it's time for the country to phase out its stimulus programme, given the much improved global economic environment.

On the other hand, it will be difficult to keep the inflation rate below 7 per cent in line with targets set by the National Assembly, notes the report.

"On a monthly basis, inflation started accelerating in the last quarter of 2009," reads the update.

The World Bank attributes the inflation risk to "higher commodity prices, devaluation of the dong, and adjustments in energy prices".

As for the budget deficit, the report predicts a substantial contraction compared with last year, given an overall deficit of slightly more than 6 per cent of GDP as translated from the national 2010 budget plan.

"Viet Nam's debt is likely to remain sustainable if the current economic recovery continues and authorities revert to a budget deficit in the order of 3 to 4 per cent."

The World Bank's economists also urged local regulators to increase interest rates to counter foreign currency and gold speculation.

"Gold speculation by local investors had led to worrying price spikes, affecting market sentiment," says the report.

The rising inflationary pressures and the return of large capital flows presents an emerging policy challenge and a risk to macro-economic stability, said the report in a warning to regional governments.

"The exchange rate in Viet Nam is not over-valued," said Deepak Mishra, a leading economist of the World Bank in Viet Nam, dispelling concerns over the dong's devaluation.

On the other hand, country director of World Bank Viet Nam Victoria Kwakwa recommended the country build more confidence in its macro-economic management . — VNS

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.

Monday, February 14, 2011

Intel to launch $1b chip plant

Vietnamese use Samsung computers with Intel programmes. Intel plans to open an assembly and testing facility in Viet Nam by the end of this year. — VNA/VNS Photo MInh Tu

HA NOI — Intel Corporation, the world's leading chip maker, will open a US$1 billion assembly and testing facility in Viet Nam at the end of this month, Intel Asia-Pacific general manager Navin Shenoy told The Wall Street Journal last week.

Intel Corp began construction of the facility in 2007, and the plant is expected to provide jobs for 4,000 people when operational.

Intel's investment in Viet Nam was aimed at tapping growth opportunities in emerging Asian markets, said Shenoy, noting that Viet Nam's young population and low PC penetration rate made it a particularly attractive market.

Intel already operates assembly and test sites in Malaysia, the Philippines and China.

"We expect Asia's PC market to continue to grow by more than 20 per cent annually in the next few years," he said, noting that, while market sentiment was weak in US and European consumer markets, Asian consumers and enterprises continued to buy PCs.

Intel reported more than $11 billion in quarterly revenue in the third quarter, with $6.4 billion, or 58 per cent, coming from the Asia-Pacific region, compared to $5.3 billion a year earlier. — VNS

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

US dollar drops on Singapore action, gold climbs

HONG KONG - The US dollar fell broadly to a 10-month low on Thursday after Singapore unexpectedly tightened policy by letting its currency strengthen, lifting Asian stocks and copper to two-year peaks and gold to a record high.

Major European stocks opened higher, mirroring gains in Asia, with the FTSEEurofirst 300 up 0.3 percent in early trade to 1,089.22.

The move by Singapore, viewed by analysts as a preemptive strike before policy loosening by the US Federal Reserve sends more investment to Asia, underscored the global currency tensions that have sparked a war of words among some policymakers.

Indeed, the dollar's decline to near parity against the Australian dollar and a 15-year low against the yen were fresh reminders about the US currency's dim prospects on expectations the Fed will soon have to flood the financial system with more newly printed money, or quantitative easing.

"One thing that people underestimate is that the US will do everything in its power to reflate the economy. It's not just a question of QE2, but if required they will do QE3, QE4 etc," Pranay Gupta, chief investment officer for ING Investment Management Asia Pacific, said.

"Like it or not, loose monetary policy is here to stay and money flow coming out of the US and into Asia is here to stay," said Gupta, who oversees $85 billion in assets.

With the next Fed policy meeting and the next G20 summit still weeks away, the well-worn trade of selling dollars to buy emerging market stocks, commodities and longer-term bonds was still in play.

Singapore's monetary authority surprised traders by tightening policy, which it manages through a secret band in which its currency is allowed to trade. The news prompted the US dollar to fall broadly, pushing up the euro to an eight-month high around $1.4095.

"It is a pre-emptive move," Chua Hak Bin, an economist with Bank of America Merrill Lynch, said of the Singapore decision.

"Another Fed package would have brought interest rates even lower and driven more capital flows into Singapore."

The US dollar index, which measures the dollar's performance against six other major currencies, slid 0.7 percent to the lowest since December 2009.

The Australian dollar was at US$0.9963, up 0.7 percent on the day and within sight of parity, something not seen since 1982.

Australia's currency, which has benefited from having relatively high yields among G10 currencies, has risen 9.3 percent since September.

The falling US dollar lifted gold prices 0.7 percent to $1,380.45 an ounce, a record high, and copper traded on the London Metal Exchange up 1.5 percent to $8,487.00 a ton, its highest since July 2008.

Climbing commodity prices have been a boon for resource-related shares, and the materials sector gave the biggest lift to MSCI's index of Asia Pacific stocks outside Japan.

The index was up 1.5 percent to the highest since June 2008, having risen 14.5 percent since September, outpacing the 11 percent rise in the all-country world index.

Japan's Nikkei share average led gainers in Asia, up 2 percent. Resource stocks led the rise, although analysts said the yen's strength would limit the market's upside potential.

Gains in oil-related stocks helped to push up Hong Kong's Hang Seng index 1.1 percent to a 28-month intra-day high.

China Petroleum & Chemical Corp (Sinopec) stock rose 1.2 percent after analysts at Bank of America Merrill Lynch added the stock to its Asia Pacific Focus 1 portfolio, a list of its highest conviction buy-rated stocks.

Wednesday, January 26, 2011

Asia-Pacific firms worried over carbon laws - survey

MELBOURNE - Asia-Pacific firms are worried that tougher laws on greenhouse gas emissions will hit financial performance and uncertainties on the issue are already limiting their ability to raise capital, a survey published on Monday showed.

The survey by Standard & Poor's and carbon analytics firm RepuTex also found only a minority of firms demonstrated a high understanding of risks associated with tighter carbon laws.

"Respondents from all sectors across the entire Asia-Pacific region clearly stated that they anticipate climate change to progressively affect their financial statements," it said.

The study found 41 percent of the respondents reported that to a degree they were already feeling the impact of carbon regulations on their fund-raising activity.

It indicated some firms were actively exploring strategies to turn financial risks associated with greenhouse gas emission laws into opportunities to gain a competitive advantage, but only a minority showed a high understanding.

"Existing levels of awareness around factors such as carbon prices, expected climate change regulation, financial risks, and opportunities are relatively low, indicating that there is a substantial knowledge gap that may need to be addressed to achieve effective risk management," said the survey, released at at the annual Carbon Expo Australasia conference.

The survey polled 300 firms but was based on responses from 28 companies although the results also included data from 1,657 Asia Pacific companies monitored by RepuTex.

Around 90 percent of respondents expressed concern about the impact of physical climate change on their industry, with most concern shown by firms operating in Japan, Malaysia, and India.

By sector, real estate, metals and mining, consumer products and transportation saw climate change as having the most physical impact on their operations.

According to data provided by RepuTex, the most carbon-intensive sectors in the Asia-Pacific region are utilities, responsible for 58 percent of the region's emissions, energy, accounting for 18 percent, and materials, 13 percent.

The data showed Japan produced the largest portion of carbon emissions in the region, accounting for 31 percent, followed by China, on 29 percent, and South Korea, 11 percent.

The survey found that 46 percent of a respondents recognized carbon change commitments as a possible source of competitive advantage, leading them to analyze future carbon liabilities while building carbon-management strategies.

Investors wary of carbon risk

Firms in the survey also indicated they believed the evolving regulatory and physical environment in the region meant investors were increasingly identifying firms which posed the greatest risk to their investment portfolios over potential carbon liabilities.

Investors were increasingly seeking to buy stock in carbon-efficient leaders, the companies in the survey believed.

The participating firms also recognized that behavioral change and the use of new technology to reduce carbon footprints opened up opportunities to cut exposure to higher energy costs.

Nearly 80 percent of the respondents chose implementing energy efficiency measures as the most preferable and feasible option to mitigate carbon exposure.

Investing in clean technologies, innovation, and renewable energy, and retrofitting and optimizing existing processes, were chosen by 71 percent of the respondents.

"We believe that this indicates that respondents are taking advantage of low-hanging fruit such as energy-efficiency measures, which often result in cost savings," Standard & Poor's/RepuTex said.

They said the oil and gas, metals and mining, electric utilities, and integrated gas sectors anticipated significant carbon exposure under future emissions trading schemes, and were already performing direct-emissions forecasting to determine future carbon liabilities.

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.

Monday, December 27, 2010

Vietnamese SMEs upbeat about economy: survey

Jeff Mclean (C), general manager of UPS Vietnam, at the function held yesterday at the Sofitel Plaza Saigon in District 1 to announce the fifth UPS Asia Business Monitor 2010 - Photo: Nhan Tam

HCMC – Some 72% of 100 Vietnamese small and medium enterprises (SMEs) are optimistic that they will perform better business in 2010, according to a survey conducted in the Asia-Pacific region whose results were released here on Wednesday.

For economic sectors, the construction industry will continue to boom as 53% of Vietnamese SMEs believe that this sector continues to be the country’s key growth industry this year, followed by IT (36%) and leisure and tourism (28%).

In the medium term for between three and five coming years, local SMEs still place the top choice on the construction industry as the key economic pillar with 53%, followed by agriculture (29%), leisure and tourism (29%), and IT (26%), according to the fifth UPS Asia Business Monitor (ABM).

The survey, outsourced to the independent research organization TNS in Hong Kong by the logistics service provider UPS, was conducted between March 11 and April 20 this year. This is the first time Vietnam participated in the annual UPS ABM, which also covers other markets like Australia, China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand.

Vietnamese SMEs also cast an optimistic view on the Asia-Pacific region, with some 59% believing that the Asia Pacific economy would continue to grow while 9% of them expect a decline and the remaining 32% expect the economy to remain the same.

Jeff Mclean, general manager of UPS Vietnam, said that the Vietnam survey results would greatly assist the company in how to better meet the needs of local SMEs as they compete in the global market.

However, he added that despite the prevailing positive growth sentiment, Vietnam seems to be the least optimistic regarding workforce projection in the region. An overwhelming 61% of those surveyed intend to reduce their workforce, while none of them plan to increase their workforce.

“They have optimistic views about the future, but they still feel worried,” Mclean told the Daily after the function to announce the survey, adding that they just want to take advantage of current human resources to overcome the difficulties.

The survey also showed that although the Vietnamese economy is expected to grow this year, local entrepreneurs still encounter challenges as about 7 out of 10 Vietnamese SMEs say that their top business concern is costs.

The second biggest concern is the high interest rate while competition is the third biggest concern.

UPS ABM 2010 surveyed 1,351 decision-makers of SMEs between March 11 and April 20 this year. SMEs are defined as companies with fewer than 250 employees. Respondents were from a range of industries such as electronics, construction, food and beverage, services, manufacturing, automotive, garments and textiles, IT, tourism and hotel, healthcare and pharmaceuticals and others.

Vietnamese SMEs upbeat about economy: survey

Jeff Mclean (C), general manager of UPS Vietnam, at the function held yesterday at the Sofitel Plaza Saigon in District 1 to announce the fifth UPS Asia Business Monitor 2010 - Photo: Nhan Tam

Jeff Mclean, general manager of UPS Vietnam, said that the Vietnam survey results would greatly assist the company in how to better meet the needs of local SMEs as they compete in the global market.

The second biggest concern is the high interest rate while competition is the third biggest concern.

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, November 11, 2010

Curbing tech piracy can stimulate Asian economies: report

A sales assistant arranges compact discs at a stall in a Jakarta mall.

Photo: AFP

SINGAPORE - Asian economies led by China can reap a financial windfall and create hundreds of thousands of jobs in a few years by cracking down on software piracy, an industry study showed Wednesday.

The Business Software Alliance (BSA) and research group IDC said nearly 60 percent of the software programs installed on personal computers in 2009 across the world's largest region were unlicensed.

Reducing software piracy to about 50 percent in four years would produce almost US$41 billion in economic activity, create 350,000 new jobs and generate nearly $9 billion in taxes, according to the joint study.

Achieving the same reduction in two years would boost the economic benefits for the region by another 33 percent, a press statement said.

Worldwide, a cut in piracy rates from the current 42 percent to 32 percent over four years would add $142 billion to the global economy, 500,000 new jobs and $32 billion dollars in tax revenues, the study said.

Roland Chan, BSA's senior regional director for marketing, said the Asia-Pacific region will capture "more than three fifths" of the new jobs forecast be generated globally because of the size of the market.

"Reducing software piracy is an opportunity to inject much-needed stimulus into Asia Pacific economies," he said.

"This study clearly shows that aggressively fighting software piracy today means greater economic benefits tomorrow -- for the region's economy, not just the software industry."

An earlier BSA-IDC report said 900 million software programs were installed on personal computers in the Asia-Pacific region in 2009.

Chan said he hoped the study results would help convince governments to improve their fight against piracy, which cost technology companies more than $50 billion in 2009.

"The primary message is to tell countries that if you do more in reducing your piracy rate, you're going to get more," Chan told AFP in an interview ahead of the study's launch on Wednesday.

"And if it is accelerated, the economic benefits will even be better."

According to the study, China stands to benefit the most if it further cuts down its piracy rate, which stood at 79 percent in 2009.

Of the estimated 350,000 jobs expected to be generated in the Asia-Pacific region, China will account for 250,000 due to the size of its software industry, the study showed.

India will account for nearly 60,000 jobs, followed by South Korea at over 10,000 and Japan at 9,500.

China will also benefit most in terms of revenues and taxes, the study said.

The report looked at 13 economies that make up 98 percent of the region's packaged software market -- Australia, China, Hong Kong, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.

Piracy rates in the 13 economies in 2009 ranged from a low of 21 percent in Japan to 86 percent in Indonesia, BSA said.

The BSA is an industry group that works for copyright protection and counts among its members some of the world's biggest technology companies as well a local software developers.

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.

Tuesday, September 14, 2010

Vietnamese entertainment & media giant enters US

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According to PricewaterhouseCoopers Global Entertainment & Media, over the
next five years, digital technologies will become increasingly widespread across
all segments of entertainment & media (E&M) as digital migration continues to
expand.

In Vietnam, the value of the E&M market approximately tripled in 5 years
from 2004 to 2009 and is expected to exceed US$ 2.3 billion in 2013. The overall
E&M compound annual growth rate (CAGR) of Vietnam is projected to be the highest
one in the world at 16.7% followed by Saudi Arabia/Pan Arabia at 15.1% and
Pakistan at 13%.

Online games have appeared in Vietnam E&M industry in recent years but its
potential has been confirmed. Online games market is now one of the most
promising markets to grow. Online game has two main forms: PC and console games,
and some giants of this industry in Vietnam are Nintendo, Microsoft, VTC Game,
Vina Game. According to statistics, every year a profit of Online games reach 36
billion US Dollars. Trend of this industry are inclined to spread in Asia region
and America is now the potential market!

As the national leader in Web-games industry, VTC Online is the first
company of Vietnam which has copyright to launch Online games in many Asian
countries such as: South Korea (Websam - 11/2009), Indonesia (Samkok - 3/2010),
Cambodia (Samkok - opening soon in 2010). America is a next step beyond the
boundary of the continent, realized “go Global” strategy of VTC Online with
Three Kingdoms Webgames which is one of VTC Online’s best battle-focused
real-time strategy game.

With the slogan “Intergrating service – connecting people,” VTC Online
targets at the community of 20 millions East Asia people who are living and
working in America, along with that is 40 millions U.S. citizens with the habit
of regularly using the Internet.

The global E&M market as a whole, including both consumer and advertising
spending will grow by 2.7 per cent compounded annually for the entire forecast
period to $1.6 trillion in 2013. Though the current economic downturn has,
without doubt, impacted virtually every sector of the E&M marketplace it has
also accelerated and intensified the digital migration among both providers and
consumers of content. Responses to the recession will vary from country to
country and region to region with some territories showing little ill effects
while others experience steep declines.

Latin America and Asia Pacific remain the fastest growing regions
increasing at an annual compound rate of 5.1 per cent and 4.5 per cent through
to 2013 reaching $73 billion and $413 billion respectively. Excluding Japan, the
dominant country in the Asia Pacific region which accounted for 45 per cent of
total spending in 2008, E&M spending in Asia Pacific will increase at a
projected 7.1 per cent compound annual rate over the period of the Forecast./.

Friday, September 3, 2010

Asian stocks steady as Southeast Asia outperforms

Photo: Reuters

HONG KONG - Asian stocks steadied on Monday, underpinned by a rally in Southeast Asian stocks that drove Jarkata to a record peak as foreign investors keep chasing its surprisingly strong growth momentum.

Major European shares opened 0.4 percent higher and futures for the S&P 500, Dow Jones and Nasdaq were up 0.1 to 0.2 percent, pointing to a slightly firmer start for US trade.

Inconclusive weekend elections in Australia briefly pulled its dollar down to a one-month trough although shares in miners rose as investors bet a proposed new tax on coal and iron ore profits may never be introduced.

A wave of mergers in Asia is also boosting values as acquirers leverage on relatively lower valuations and cheap funding costs to buy companies. An estimated $58 billion worth of mergers involving Asian companies were playing out during the day.

"We are seeing this as an extremely stocks selective market. In Asia the markets that are holding up better are the Southeast Asian markets as investors have been very specific about picking markets where companies have sustainable earnings," said Linda Csellak, head of Asia-Pacific equities at MFC Global Investment Management.

The MSCI index of Asia Pacific ex-Japan stocks was flat with the resources sector outperforming the rest of the market.

In Japan, where the yen currency has rattled investors in recent weeks, shares extended losses amid worries a strong yen would derail the fragile economic recovery.

The Nikkei average inched to a nine-month closing low, shedding 0.7 percent and holding just above a critical technical support at around 9,100.

The decline follows Friday's 2 percent fall as corporate performance jitters grew in the wake of the yen's strength against the dollar.

"Governments around the world are allowing their currencies to weaken, and if Japan doesn't do anything about the strength in the yen it could appreciate further and that would put pressure on Japanese stocks," said Masahiko Sato, an executive director at Nomura Securities' equity marketing department.

Japanese Prime Minister Naoto Kan and Bank of Japan Governor Masaaki Shirakawa discussed the yen and agreed to work closely in a phone conversation on Monday, but Kan did not ask the central bank to ease monetary policy further.

The dollar fell 0.3 percent to 85.35 yen, within striking distance of 84.72 yen hit earlier this month, its lowest since July 1995.

Indonesia, Asia's second-best performing stock market this year, rose to an all-time high and Malaysia's index struck its highest in 2- years, outpacing regional giants Australia and Japan, both of which ended the day with losses.

Oil rebounded to above $74 a barrel but stayed close to six week lows amid concerns about a global economic recovery.

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Tuesday, December 14, 2010

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

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Thursday, November 11, 2010

A sales assistant arranges compact discs at a stall in a Jakarta mall.

Photo: AFP

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