Intel all set to open $1bln Vietnam plant

US chip giant Intel Corp will open its US$1 billion chip assembly and test facility at the Saigon High-Tech Park next Friday.

It will take three to five years for the plant to reach full capacity when it will earn annual revenues of $5 billion-15 billion, according to Dien Dan Doanh Nghiep (Business Forum) newspaper.

It will be inaugurated together with a $2.5 billion plant in Dalian, China.

Their opening is meant to help the world’s largest computer chip manufacturer capture growth opportunities in emerging Asian countries, the Wall Street Journal newspaper quoted Navin Shenoy, Intel’s general director for Asia – Pacific, as saying.

The HCMC facility will handle the last stage in the production cycle, namely product quality checking, packaging, and retailing.

The company said the plant will create around 4,000 jobs, 70 percent of them university students it sent to the US for the last two years of their undergraduate courses.

The plant is Intel’s seventh chip assembly and test facility worldwide, the others being in Malaysia, the Philippines, China, and Costa Rica.

Intel announced last Wednesday that Q3 profits rose 63 percent to $3 billion on revenues of $11.1 billion.

In the period its revenues from the Asia-Pacific region rose 20 percent year on year to a record $6.4 billion.

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BP sells $1.8bln of assets to Russian JV TNK-BP

Photo: Reuters

LONDON/MOSCOW - BP has agreed to sell a package of oil and gas fields in Vietnam and Venezuela to its Russian joint venture TNK-BP for US$1.8 billion as the London-based oil major raises cash to pay for its Gulf of Mexico oil spill.

BP said in a statement on Monday that the assets represented reserves of 270 million barrels of oil equivalent and production of 40,000 barrels of oil equivalent per day.

The sale brings to around $11.5 billion the amount BP has agreed from asset sales in recent months. The company has a divestment target of $25 billion to $30 billion over the next 18 months.

Analysts said the price was in line with their valuations for the assets, which they added were not strategic for BP.

"This allows BP to high-grade its portfolio," Iain Armstrong, oil analyst at Brewin Dolphin said.

The deal also sees TNK-BP realize its ambition of growing outside Russia, where it is the third-largest oil producer.

"The acquisitions in Venezuela and Vietnam mark a milestone in TNK-BP's strategic expansion in the global energy market," said Mikhail Fridman, TNK-BP's executive chairman and one of the four Russia-connected billionaires who own the other half of TNK-BP.

The sale also represents the latest pull-back by big western oil companies from Venezuela.

In 2007 US oil giants Exxon Mobil and ConocoPhillips pulled out of Venezuela following socialist President Hugo Chavez's demand for majority control of oil projects, and in March this year Royal Dutch Shell said it and others were shunning the country's licensing rounds.

BP remains in talks with potential buyers for its interests on the North Slope of Alaska, including Prudhoe Bay, and Argentina-based Pan American Energy, sources familiar with the matter said.

The assets are worth around $7 billion and $7.5 billion, respectively, analysts said.

BP shares traded up 0.2 percent at 426 pence at 0915 GMT compared to a 0.1 percent rise in the STOXX Europe 600 Oil and Gas index.

TNK-BP, which produced 1.89 million boe per day in 2009, said it would use its own funds to finance the acquisitions and expects the transaction to be completed by first half 2011.

In Venezuela, the company will buy 40 percent of Petroperija and 26.6 percent of Bouqeronin oil field projects, majority owned by Venezuela's state-owned PDVSA oil company.

It will also acquire a 16.7 percent stake in the Petromanagas upgrader project, which processes tar-like Orinoco heavy crude into lighter synthetic oil that can be processed by traditional refineries.

In Vietnam, TNK-BP will acquire BP's 35 percent stake in an offshore gas condensate project; a 32.7 percent stake in the Nam Con Son gas pipeline and a 33.3 percent stake in the Phu My 3 power plant.

All three of these assets form an integrated gas and power project with a production capacity of 30,000 barrels of oil equivalent per day, on a working interest basis.

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

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Power cuts expected for months to come

Vietnam is faced with occasional power shortages during the next two or three months – and the situation is not forecast to improve in the new year.

Statistics from State-run Electricity of Vietnam Group (EVN) show that in the first nine months of the year, total water in national reservoirs was 33.3 billion cubic metres less than at the same period last year.

This is sufficient to cause hydro-power shortages of up to 6 billion kWh.

Total electricity production from all sources last month amounted to just over 8.6 billion kWh, up 15 per cent on the same period last year.

Reduced water levels have left power authorities perplexed at the possibility of power shortages and cut-offs in the near future as well as shortages next year.

To deal with the issue, Prime Minister Nguyen Tan Dung has asked the EVN to regulate power supplies for production and consumption and to try and limit cutting supplies.

He said the sector should mobilise oil-fired and coal-fired power plants, bring newly-built plants into operation and promote the saving of power among the population.

Deputy general director of the EVN Dang Hoang An said hydro power normally produced more than 59 per cent of total needs.

He said while the sector might be able to meet demand for 25 billion kWh in the last three months of this year, an additional problem was the temporary closure of Ca Mau Gas Factory PA3 pipelines for maintenance.

Ta Van Luan, director of Yaly Hydropower Plant, said water levels at Pleikrong Reservoir were about 537m, compared to 570m for the same period last year.

He said he did not expect the situation to improve in the near future and that the plant had been operating only five hours a day, lower than full capacity.

A similar situation is being experienced at the largest Yaly Hydropower Plant, which has a water level of 490m, 25m lower than average level last year.

Luan said water flow into Yaly reservoir was 160cu.m a second, but its four turbines needed 420cu.m a second to reach full capacity.

He said in the first nine months of the year, the plant had run at half of its capacity because of the low water levels.

And that some water would be saved for next year. The plant is expected to supply 4 billion kWh this year, compared to its expected production of 5.5 billion kWh.

Reservoirs in the Central Highlands and the south are facing drought.

Le Van Quang, deputy director of Da Nhim-Ham Thuan-Da Mi Hydropower Company said the water level at Ham Thuan was only 39cm above the lowest level and supplied water for electricity for only eight hours a day.

He said the 400MW Tri An Hydropower Plant had received 4.1 billion cu.m, 2 million cu.m lower than at the same period last year. Its water level was less than a metre above the lowest level.

Director of Tri An Hydropower Plant Nguyen Kim Phuc said low water levels had reduced expected electricity production this year to 1-1.2 billion kWh, the lowest level in 23 years of operation.

 

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Power cuts expected for months to come

HA NOI — Viet Nam is faced with occasional power shortages during the next two or three months – and the situation is not forecast to improve in the new year.

Statistics from State-run Electricity of Viet Nam Group (EVN) show that in the first nine months of the year, total water in national reservoirs was 33.3 billion cubic metres less than at the same period last year.

This is sufficient to cause hydro-power shortages of up to 6 billion kWh.

Total electricity production from all sources last month amounted to just over 8.6 billion kWh, up 15 per cent on the same period last year.

Reduced water levels have left power authorities perplexed at the possibility of power shortages and cut-offs in the near future as well as shortages next year.

To deal with the issue, Prime Minister Nguyen Tan Dung has asked the EVN to regulate power supplies for production and consumption and to try and limit cutting supplies.

He said the sector should mobilise oil-fired and coal-fired power plants, bring newly-built plants into operation and promote the saving of power among the population.

Deputy general director of the EVN Dang Hoang An said hydro power normally produced more than 59 per cent of total needs.

He said while the sector might be able to meet demand for 25 billion kWh in the last three months of this year, an additional problem was the temporary closure of Ca Mau Gas Factory PA3 pipelines for maintenance.

Ta Van Luan, director of Yaly Hydropower Plant, said water levels at Pleikrong Reservoir were about 537m, compared to 570m for the same period last year.

He said he did not expect the situation to improve in the near future and that the plant had been operating only five hours a day, lower than full capacity.

A similar situation is being experienced at the largest Yaly Hydropower Plant, which has a water level of 490m, 25m lower than average level last year.

Luan said water flow into Yaly reservoir was 160cu.m a second, but its four turbines needed 420cu.m a second to reach full capacity.

He said in the first nine months of the year, the plant had run at half of its capacity because of the low water levels.

And that some water would be saved for next year. The plant is expected to supply 4 billion kWh this year, compared to its expected production of 5.5 billion kWh.

Reservoirs in the Central Highlands and the south are facing drought.

Le Van Quang, deputy director of Da Nhim-Ham Thuan-Da Mi Hydropower Company said the water level at Ham Thuan was only 39cm above the lowest level and supplied water for electricity for only eight hours a day.

He said the 400MW Tri An Hydropower Plant had received 4.1 billion cu.m, 2 million cu.m lower than at the same period last year. Its water level was less than a metre above the lowest level.

Director of Tri An Hydropower Plant Nguyen Kim Phuc said low water levels had reduced expected electricity production this year to 1-1.2 billion kWh, the lowest level in 23 years of operation. ­— VNS

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Vietnam’s exports to US continue to rise

The US Department of Commerce has announced that Vietnam’s exports to the US in the first seven months of the year earned US$7.9 billion, an increase of 14 percent over the same period last year.

Garments and textiles lead amongst Vietnam ’s major export items to the US , making $3.2 billion, a year-on-year increase of 12 percent and followed by wooden products and furniture with $985 million, up 27 percent and footwear, $910 million up 9.6 percent.

Farm produce is still one of Vietnam ’s top five leading export items, ranking in $455 million, up 30.7 percent and seafood, $366 million, up 5.9 percent.

Also under the reviewed period, Vietnam’s imports from the US were worth $2 billion, an increase of 19.8 percent, bringing the import-export turnover between the two countries to $9.9 billion, an increase of 15.1 percent over the same period last year.

The Vietnamese Embassy’s Office of Commercial Bureau estimates that Vietnam’s export turnover to the US will hit $14.2 billion by the end of this year, a year-on year increase of 15 percent.

 

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Export staples join $1b club

HA NOI — With export turnover of more than US$1 billion each by September this year, coal, rubber and steel joined the country's $1 billion club, according to the Ministry of Planning and Investment.

The new additions lifted the number of the country's export staples with turnover of more than $1 billion to 13. The others include garments, footwear, crude oil, seafood, gemstones, wooden products, electrical goods, computers, machinery and vehicles.

Deputy Minister of Industry and Trade Nguyen Thanh Bien said the increasing cost of many export staples helped raise the country's total export turnover in the first nine months of the year to $51.5 billion, up 23.2 per cent year-on-year.

During the period, around 48 per cent of Viet Nam's exports went to the Asian market, followed by America with 23 per cent and Europe with 22 per cent.

Bien attributed the export growth to the State Bank of Viet Nam's decision to lift the inter-bank rate by 2.1 per cent in August as part of the effort to boost exports and curb the trade deficit.

Industry insiders forecast the trade sector would meet the Government's export target of $61 billion this year, given a number of key export industries including apparel still had fresh orders coming in.

To meet the target, the Ministry of Planning and Investment has asked customs officials to scrutinise current procedures to ease the import of materials for export production.

Besides capitalising on advantages created by Free Trade Agreements, the Ministry of Industry and Trade has also boosted other bilateral and multilateral negotiations to help exporters enlarge their markets. — VNS

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Vietnam’s exports to US continue to rise

The US Department of Commerce has announced that Vietnam’s exports to
the US in the first seven months of the year earned 7.9 billion USD, an
increase of 14 percent over the same period last year.

Garments
and textiles lead amongst Vietnam ’s major export items to the US ,
making 3.2 billion USD, a year-on-year increase of 12 percent and
followed by wooden products and furniture with 985 million USD, up 27
percent and footwear, 910 million USD up 9.6 percent.

Farm
produce is still one of Vietnam ’s top five leading export items,
ranking in 455 million USD, up 30.7 percent and seafood, 366 million
USD, up 5.9 percent.

Also under the reviewed period, Vietnam ’s
imports from the US were worth over 2 billion USD, an increase of
19.8 percent, bringing the import-export turnover between the two
countries to 9.9 billion USD, an increase of 15.1 percent over the same
period last year.

The Vietnamese Embassy’s Office of Commercial
Bureau estimates that Vietnam ’s export turnover to the US will hit
14.2 billion USD by the end of this year, a year-on year increase of 15
percent./.

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Apparel industry to achieve export target early

Photo: Reuters

The garment industry will achieve this year’s export target of US$10.5 billion by November, the Vietnam Textile and Apparel Association said.

In September, for a third consecutive month, exports topped $1 billion, taking year-to-date exports to more than $8 billion.

Since most firms have signed contacts for the rest of the year, exports will be worth at least $1 billion each month this quarter, VITAS said.

This year exports to major traditional markets have seen high growth. Exports to the US are up 22.1 percent to $3.94 billion, while shipments to the EU and Japan are 6.7 percent and 14.3 percent up at $1.18 billion and $691 million.

However, a surge in the global price of cotton has had a negative impact on the industry which imports 95 percent of its cotton needs. The price of a ton has risen 45 percent from the same period last year to $1,900-2,000.

Vietnam imported 260,000 tons of cotton in the first nine months and that figure is likely to reach 370,000 tons by year-end.

With the government setting export targets of $19 billion in 2015 and $25 billion in 2020, the industry is eyeing increased cotton cultivation and development of human resources to meet the increasing needs.

On the domestic front, in an effort to capture a greater market share, it is promoting trademarks and setting up distribution networks around the country.

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EVN pledges sufficient power supply in Q4

HCMC – The Electricity of Vietnam Group (EVN) pledged on Monday that the State utility would try its best to meet the country’s total power demand at some 25 billion kilowatt hours in the fourth quarter of this year.

The group’s deputy general director Dang Hoang An told an online meeting organized by the Ministry of Industry and Trade that EVN would mobilize more energy sources to minimize power outages.

EVN has had to purchase a maximum volume of power from other sources including 67.8 billion kilowatt hours from China to lessen impacts of the power supply crunch in the January-September period, An told the meeting to review industrial production in the first three quarters. He explained that power supply was strain lately due to droughts, causing the water flow to reservoirs to dwindle.

According to a report issued on Monday by the Ministry of Industry and Trade, in the last quarter of the year, some power plants are expected to start commissioning such as the first power turbine of Son La Hydropower Plant, and the first turbines of Song Tranh 2 Hydropower Plant and Dong Nai 3 Hydropower Plant.

The forthcoming operation of such hydropower plants will help ease the power shortage in the country.

However, An noted that the power outages could still occur for around ten days this month as PetroVietnam has just announced a scheme to maintain the gas pipelines of Ca Mau Gas Power Complex over ten days.  

Furthermore, An of EVN also told the ministerial meeting that the most worrying problem for EVN is to cope with the water storage in the coming months, particularly during the dry season in the first half of next year.

“EVN will work with the Ministry of Agriculture and Rural Development in the coming days to seek measures for this matter,” An said, referring to the conflict of storing water for power generation and pumping water for farming.

Speaking at the meeting, Minister of Industry and Trade Vu Huy Hoang asked PetroVietnam to work with its Malaysian partner to speed up the gas pipeline maintenance and for the time being use oil to fuel the Ca Mau power plant so that it can run at full capacity in the pipeline maintenance process.

Related to industrial production of the country, the ministry in its report expected a growth rate of 14% as targeted for the manufacturing sector this year, after attaining an industrial production value of VND574 trillion in the year to date, a year-on-year increase of 13.8%.

The ministry also predicted that for the whole year 2010, the country will also obtain total export revenue of US$69 billion, an increase of 21%, while import expenditure is estimated at US$82 billion, up 17% year-on-year.

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Garment exports on target

The textile and garment industry will meet its annual export target of
10.5 billion USD by November, said vice chairman and general secretary
of the Vietnam Textile and Apparel Association (Vitas) Le Van Dao.

Dao estimated that the industry would earn more than 1 billion USD each month in the fourth quarter.

September was the third consecutive month the industry fetched more
than 1 billion USD from exports, bringing the sector's total export
value in the first nine months of this year to more than 8 billion USD, a
year-on-year increase of 20.6 percent, according to the General
Statistics Office.

Dao said many garment exporters had orders for the end of this year and even for the beginning of next year.

Over the past nine months, exports to the big markets have recorded
high growth. Exports to the US increased 22.1 percent to 3.94 billion
USD while the rising figures to the EU and Japan were 6.7 per cent
and 14.3 percent to 1.18 billion USD and 691 million USD, respectively.

Exports to the Democratic People’s Republic of
Korea surged 64 percent thanks to the impact of its Free Trade
Agreement with ASEAN.

However, Pham Xuan Hong, Vitas
deputy chairman, said the garment industry was facing a shortage of
labour and an increase in the price of transport and power.

A surge in the price of cotton on the world market also had a negative
impact on the industry. A tonne of cotton has risen 45 percent since
the same period last year to 1,900-2,000 USD while the industry has to
import up to 95 percent of its cotton. The industry imported 260,000
tonnes of cotton in the first nine months of the year and estimates that
figure will reach roughly 370,000 tonnes by the end of the year.

Hong said garment exporters were seeking new sources from Japan
and ASEAN countries in order to enjoy preferential taxes.

To fulfil the target of 19 billion USD from exports by 2015 and 25
billion USD by 2020, the garment sector is actively implementing
programmes related to cotton cultivation to increase domestic supplies
and develop human resources to meet the increasing demands of the
sector.

The sector is also promoting its trademark
and setting up distribution networks nationwide to take a firm foothold
in the domestic market./.

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Garment exports on target

Workers make clothes for export at a factory in the northern province of Ninh Binh. The textile and garment industry is on track to reach its annual export target of US$10.5 billion by November. — VNA/VNS Photo Tran Viet

HA NOI — The textile and garment industry will meet its annual export target of US$10.5 billion by November, said vice chairman and general secretary of the Viet Nam Textile and Apparel Association (Vitas) Le Van Dao.

Dao estimated that the industry would earn more than $1 billion each month in the fourth quarter.

September was the third consecutive month the industry fetched more than $1 billion from exports, bringing the sector's total export value in the first nine months of this year to more than $8 billion, a year-on-year increase of 20.6 per cent, according to the General Statistics Office.

Dao said many garment exporters had orders for the end of this year and even for the beginning of next year.

Over the past nine months, exports to the big markets have recorded high growth. Exports to the US increased 22.1 per cent to $3.94 billion while the rising figures to the EU and Japan were 6.7 per cent and 14.3 per cent to $1.18 billion and $691 million, respectively.

Exports to North Korea surged 64 per cent thanks to the impact of its Free Trade Agreement with ASEAN.

However, Pham Xuan Hong, Vitas deputy chairman, said the garment industry was facing a shortage of labour and an increase in the price of transport and power.

A surge in the price of cotton on the world market also had a negative impact on the industry. A tonne of cotton has risen 45 per cent since the same period last year to $1,900-2,000 while the industry has to import up to 95 per cent of its cotton. The industry imported 260,000 tonnes of cotton in the first nine months of the year and estimates that figure will reach roughly 370,000 tonnes by the end of the year.

Hong said garment exporters were seeking new sources from Japan and ASEAN countries in order to enjoy preferential taxes.

To fulfil the target of $19 billion from exports by 2015 and $25 billion by 2020, the garment sector is actively implementing programmes related to cotton cultivation to increase domestic supplies and develop human resources to meet the increasing demands of the sector.

The sector is also promoting its trademark and setting up distribution networks nationwide to take a firm foothold in the domestic market. — VNS

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Rubber export seen at US$1.5 billion

HCMC – The nation expects to beat this year’s rubber export target of US$1.5 billion this year given the rising rubber prices on the world market, according to the Vietnam Rubber Association (VRA).

Vietnam in the first nine months of 2010 obtained US$1.42 billion in rubber export revenue.

VRA said that rubber supplies from large exporters were shrinking due to unfavorable weather while rubber demands of China and India remained high. As a result, rubber prices on the global market rocketed to US$3,270 per ton in September, up 250% against the 2009 average figure.

Meanwhile, the Association of Natural Rubber Producing Countries predicts the rubber output worldwide at around 9.5 million tons this year, increasing by 6.3% against 2009. However, the output will decrease from 2011 as many countries will replant rubber trees and natural rubber prices will stay high then.

China, India and Malaysia are leading rubber importers, accounting for 47% of the total global rubber consumption.

In 2009, Vietnam had the rubber growing area of 640,000 hectares, exported around 680,000 tons worth over US$1.2 billion to 70 markets.

Under the Government’s scheme, Vietnam will grow 800,000 hectares of rubber by 2020, reach the latex output of 1.2 million tons and obtain export value of US$2 billion.

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Land ready for steel, power, port project

The management board of Vung Ang Economic Zone in the central province of Ha Tinh handed over last Friday 3,300 ha of land and sea surface to Taiwan's Formosa Group, investor in a US$16billion industrial complex.

The project includes a 7.5 million ton/year steel mill, a 1,600MW power plant, and the Son Duong Seaport which will have a handling capacity of 30 million tons of cargo per year.

The area comprises more than 1,900ha of land and over 1,300ha of sea surface.

Ha Tinh authorities said nearly 2,500 households with a population of more than 10,000 in the communes of Ky Lien, Ky Long, Ky Loi and Ky Phuong in Ky Anh District had moved to new re-settlement areas during the site clearance process which lasted over two years.

Members of families affected by the project received over VND1.9 trillion ($100 million) in site compensation and had been supported by the province's job-training programs, the authorities said.

In addition to the site clearance, the authorities also built a canal over 10km long to supply water to the refinery and a 5.2-km road for transporting heavy machinery and equipment for construction of the Son Duong Deep water Sea port.

According to Sai Gon Economic Times newsmagazine, the Taiwanese group has also decided to raise investment in the first stage of the project from $7.9 billion to $8.9 billion.

Total investment of the two stages of the project amounts to $16 billion.

The project is expected to employ 10,000 local workers when the first stage is completed and the figure can increase to 30,000 after completion of the second stage.

Chu Xuan Pham, an engineer with Hung Nghiep Formosa Co, said construction of the steel refinery would be completed in 36 months and building of Son Duong Port to be completed in 48 months as required in the company's investment license.

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Vietnam urges US to reduce trade barriers

Vietnam has called on the US to minimize its trade barriers and play a more active role in the multilateral trade system

Photo: VNA

Vietnam has called on the US to minimize its trade barriers and play a more active role in the multilateral trade system.

A Vietnamese representative made the request at a session held at the World Trade Organisations (WTO) headquarters in Geneva on Sept. 29 and Oct. 1 to review the US ’s trade policies.

Head of the Vietnamese Delegation to the UN, WTO and other international organisations in Geneva Ambassador Vu Dung and officials from the Ministries of Industry and Trade, and Foreign Affairs attended the event.

The representative voiced concerns over the US ’s trade barriers that resulted in anti-dumping duties against frozen shrimp, plastic bags and tra fish (Pangasius) imported from Vietnam .

Vietnam expected that the US would re-examine its investigations on the imposition of anti-subsidy and anti-dumping tariffs before making decision to avoid affecting other WTO members.

Two-way trade between Vietnam and the US has grown steadily, reaching its peak of US$15 billion in 2009, 15 times higher than the figure in 2001 when the two nations had not signed the Bilateral Trade Agreement (BTA) yet.

The US has become as Vietnam ’s biggest importer in recent years, importing $11.5 billion worth of goods in 2009, accounting for one-fifth of the Southeast Asian country’s total exports. In the first five months of 2010, bilateral trade hit $7.75 billion, including $6.09 billion from Vietnamese exports.

The country emerged as the biggest foreign investor in Vietnam last year, with a combined registered capital of $9.8 billion.

The US is also an important partner of Vietnam in the current negotiations on the Trans-Pacific Strategic Economic Partnership Agreement.

 

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Land ready for steel, power, port project

Contractors remove sand for a steel mine in Thach Khe District, central Ha Tinh Province. The province has handed over 3,300ha of land and sea surface for projects in Vung Ang Economic Zone. — VNA/VNS Photo Cong Tuong

HA TINH — The management board of Vung Ang Economic Zone in the central province of Ha Tinh handed over last Friday 3,300 ha of land and sea surface to Taiwan's Formosa Group, investor in a US$16billion industrial complex.

The project includes a 7.5 million tonne/year steel mill, a 1,600MW power plant, and the Son Duong Seaport which will have a handling capacity of 30 million tonnes of cargo per year.

The area comprises more than 1,900ha of land and over 1,300ha of sea surface.

Ha Tinh authorities said nearly 2,500 households with a population of more than 10,000 in the communes of Ky Lien, Ky Long, Ky Loi and Ky Phuong in Ky Anh District had moved to new re-settlement areas during the site clearance process which lasted over two years.

Members of families affected by the project received over VND1.9 trillion (nearly $100 million) in site compensation and had been supported by the province's job-training programmes, the authorities said.

In addition to the site clearance, the authorities also built a canal over 10km long to supply water to the refinery and a 5.2-km road for transporting heavy machnery and equiment for construction of the Son Duong Deep water Sea port.

According to Sai Gon Economic Times newsmagazine, the Taiwanese group has also decided to raise investment in the first stage of the project from $7.9 billion to $8.9 billion.

Total investment of the two stages of the project amounts to $16 billion.

The project is expected to employ 10,000 local workers when the first stage is completed and the figure can increase to 30,000 after completion of the second stage.

Chu Xuan Pham, an engineer with Hung Nghiep Formosa Co, said construction of the steel refinery would be completed in 36 months and building of Son Duong Port to be completed in 48 months as required in the company's investment licence. — VNS

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Vietnam urges US to reduce trade barriers

Vietnam has called on the US to minimise its trade barriers and
play a more active role in the multilateral trade system.

A Vietnamese representative made the request at a session held at the
World Trade Organisations (WTO) headquarters in Geneva on Sept. 29 and
Oct. 1 to review the US ’s trade policies.

Head
of the Vietnamese Delegation to the UN, WTO and other international
organisations in Geneva Ambassador Vu Dung and officials from the
Ministries of Industry and Trade, and Foreign Affairs attended the
event.

The representative voiced concerns over the
US ’s trade barriers that resulted in anti-dumping duties against frozen
shrimp, plastic bags and tra fish (Pangasius) imported from Vietnam .

Vietnam expected that the US would
re-examine its investigations on the imposition of anti-subsidy and
anti-dumping tariffs before making decision to avoid affecting other WTO
members.

Two-way trade between Vietnam and the
US has grown steadily, reaching its peak of 15 billion USD in 2009, 15
times higher than the figure in 2001 when the two nations had not
signed the Bilateral Trade Agreement (BTA) yet.

The
US has become as Vietnam ’s biggest importer in recent years,
importing 11.5 billion USD worth of goods in 2009, accounting for
one-fifth of the Southeast Asian country’s total exports. In the first
five months of 2010, bilateral trade hit 7.75 billion USD, including
6.09 billion USD from Vietnamese exports.

The
country emerged as the biggest foreign investor in Vietnam last
year, with a combined registered capital of 9.8 billion USD.

The US is also an important partner of Vietnam in the current
negotiations on the Trans-Pacific Strategic Economic Partnership
Agreement./.

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Retail sales soar 25% in first nine months

Customers shop at a supermarket in the northern province of Bac Ninh. September's retail sales revenue increased 2.93 per cent against the previous month to nearly VND134.9 trillion ($6.9 billion). — VNA/VNS Photo Tran Viet

HA NOI — Total retail sales revenue of commodities and services in the first nine months of the year increased 25.4 per cent year-on-year to more than VND1,146 trillion (US$58.7 billion), according to the General Statistics Office (GSO).

September's revenue alone increased 2.93 per cent against the previous month to nearly VND134.9 trillion ($6.9 billion), the GSO said.

The trade sector reported a year-on-year revenue surge of 26.4 per cent to VND905.1 trillion ($46.4 billion), accounting for 79 per cent of the country's total sales revenue during the nine month period.

The hotel and restaurant sector saw a rise of 21.8 per cent to VND126.25 trillion ($6.47 billion). The increased figures for the tourism and service sectors were 37.4 per cent and 20.5 per cent to VND12.16 trillion ($625.6 billion) and VND102.6 trillion ($5.26 billion), respectively.

The surge's retail sales revenue was due primarily to the organisation of promotional programmes, including the Sales Promotion Month 2010 in HCM City, one of the country's largest shopping centres.

The HCM City's September programme saw the participation of nearly 600 businesses, mostly involved in garments and textiles, food and beverages, home utensils and tourism services, with roughly 2,000 sales promotion points. Roughly 1,500 products received 10-50 per cent reductions, 90 per cent of the products were high-quality Vietnamese goods.

According to the HCM City Department of Industry and Trade, sales of businesses taking part in the Sales Promotion Month increased 10-15 per cent compared to the same period last year. The number of consumers also rose sharply.

Director of the Ministry of Industry and Trade's Domestic Market Department Truong Quang Hoai Nam said foreign investors continued to consider Viet Nam a promising investment destination.

Meanwhile, global ratings agency AT Kearney predicted that Viet Nam's retail industry would grow over the next few years, and that consumer spending would rise above its current level of 70 per cent of household income.

The Ministry of Industry and Trade forecast that the country's retail sales and services revenue would soar 22 per cent from a year earlier to $78.9 billion. — VNS

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Agricultural exports rise 22.3% in first nine months

Workers process pineapple for export in Ninh Binh Province. Agricultural exports reached US$14 billion in the first nine months of the year. — VNA/VNS Photo Huy Hung

HA NOI — Agricultural export value reached US$14 billion in the first nine months of the year, an increase of 22.3 per cent over the same period last year, according to the Ministry of Agriculture and Rural Development.

Of the total, seafood accounted for $3.47 billion – an increase of 14.2 per cent over the previous year – while forestry products accounted for $2.6 billion, a whopping 36.3 per cent increase.

Remaining agricultural exports totalled $7.2 billion, an increase of 21.1 per cent, of which rice earned $2.56 billion, an increase of 14 per cent.

The sector as a whole generated 27 per cent of the nation's total export value in first nine months of the year, the ministry said.

Nguyen Viet Chien, director of the ministry's Centre for Information and Statistics, said the increases were due both to high demand and rising global prices.

Among leading cash crops, rice exports totalled 5.5 million tonnes during the nine-month period, an increase of 12 per cent, while rice prices rose to an average of $470 per tonne, 3 per cent higher than last year and nearly comparable to the average price for rice from Thailand, where rice production was effected this year by natural disaster.

Despite gloomy forecasts earlier this year that coffee exports would not reach $1 billion during 2010, coffee exports rose 4.2 per cent in the first nine months to a volume of 925,000 tonnes, while export value has already surpassed $1.3 billion.

Rubber exports climbed to 531,000 tonnes in the first nine months, an increase of 10.9 per cent, earning $1.45 billion – double last year's value.

Tea exports rose 4 per cent in volume during the period to 100,000 tonnes and 16.7 per cent in value to $146 million, while cashew exports jumped by 10 per cent in volume to 143,000 tonnes and by 30 per cent in value to $780 million.

Favourable conditions on world markets have made it likely that total agricultural export value would exceed $16 billion by the end of the year, Chien said. — VNS

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Italian businesses eye investments

HA NOI — A delegation of Italian engineering companies and contractors in transport, energy and environment sectors will visit Viet Nam from Sunday to Wednesday, Trade Commissioner Marco Saladini said in Ha Noi yesterday.

The purpose of the mission was to aid the nation's rapid development by improving the country's infrastructure, presenting Italian companies with co-operation opportunities, Saladini said.

Over the past five years, infrastructure investment in the country had not kept pace with the GDP growth of 7.3 per cent. To meet demand and development goals, it was estimated Viet Nam's overall infrastructure spending requirements over the next five years alone were in the range of US$165 billion, about $33 billion a year.

Italian Trade Commission research indicated initiated projects to be completed by 2015 in the three key sectors' infrastructure were worth $85 billion.

Even this smaller figure implied a strong acceleration from the current overall expenditure level of $5 billion or 9.4 per cent of the country's GDP, which was the average of the last few years, Saladini said.

The trade commission would conduct a seminar next Monday and Tuesday on infrastructure development and co-operation opportunities with Italian companies. — VNS

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