Business briefs

• Vietnam’s exports this year may grow 19-21 percent while imports could rise 16-17 percent from 2009, said Le Van Duoc, director of the Industry and Trade Ministry’s Planning Department. Exports could rise 10 percent in 2011 to US$74.8 billion, while imports could increase 9.7 percent to $89.4 billion, creating a trade deficit of $14.6 billion, the Planning and Investment Ministry has projected.

• The government on Tuesday named a new chief executive officer for state-owned shipbuilder Vinashin, the fourth head of the group over the past two months. Truong Van Tuyen, former deputy general director of Vietnam Oil and Gas Group was appointed, replacing acting chief executive Nguyen Quoc Anh, who took the post on August 30. The two predecessors, Pham Thanh Binh and Tran Quang Vu, were suspended amid a financial investigation into the company.

• Major state-owned companies will receive a total capital injection of VND5.18 trillion ($265.9 million) to develop infrastructure projects in 2011, news website VnExpress reported on Tuesday, citing the Ministry of Planning and Investment. The capital includes VND3.5 trillion for oil and gas group PetroVietnam, VND45 billion for the Vietnam National Shipping Lines, VND1.33 trillion for Vietnam Railways, and VND215 billion for Electricity of Vietnam.

• The government has ordered the Ministry of Industry and Trade to take measures to reduce power cuts and ensure all power plants run at their full capacity. The ministry was also asked to supervise prices set by power producers in an attempt to make pricing more transparent.

• Inflation in Vietnam may rise 1.56 percent in the final three months of the year as commodity prices are stabilized, Hoang Trung Hai, deputy prime minister, said in a statement on the government’s website on Wednesday.

• Gold prices in Vietnam have exceeded world prices as investors accumulated the metal to repay bank loans taken out several months ago, which they had sold for cash, said Tran Thanh Hai, director of the Vietnam Gold Business Corp. Domestic gold prices hit a record VND33 million ($1,690) per tael on Wednesday, up 4.4 percent from the previous day. One tael is about 1.2 ounces of gold.

• The central bank may allow businesses to import gold to “stabilize the market” so that domestic prices will move closer to the international trend, online newswire VnEconomy reported, citing Nguyen Quang Huy, head of the State Bank of Vietnam’s department for foreign-currency management. Any imports will be based on a “suitable volume and timeframe,” the report cited Huy as saying.

• Air Mekong, a local private air carrier that has partnered with Skywest Inc., will start domestic flights on October 9, said Doan Quoc Viet, chairman of the carrier. The company will use four CRJ-900 aircraft produced by Montreal-based Bombardier Inc. for its flights.

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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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Export turnover increases 23.2 percent

The country's export turnover reached an estimated US$51.5 billion during the first nine months of the year, an increase of 23.2 percent compared to the same period last year, reported the General Statistics Office.

The domestic sector earned $24.1 billion, a 19.7 percent increase, while the foreign-investment sector fetched $27.35 billion (including crude oil), a 26.5 percent increase.

Export commodities earned more than $1 billion in revenue.

Coffee, cassava and cassava products, and crude oil declined in export turnover in comparison to the same period last year.

The country imported $60.1 billion in commodities during the first nine months, an increase of 22.7 percent compared to the same period last year.

Imported commodities that earned the highest import turnovers included textiles, up 26 percent ($3.84 billion); electronics, computer and computer accessories, 30.6 percent ($3.5 billion); metals, 72.8 percent ($1.8 billion); and plastics, 36 percent ($2.7 billion).

According to the GSO, the trade deficit was restrained to $8.6 billion during the first nine months of the year, which accounted for only 16.7 percent of the total export and import turnover.

The GSO's Commerce Department director Le Minh Thuy said the current trade balance lacked equilibrium as export turnover rose due to inflated prices of several export commodities, including crude oil, cassava, coal, pepper and cashew nuts.

Gold and gold products accounted for a major proportion of export revenues. If the GSO did not include gold exports, the trade deficit during the first nine months of the year would have been $11.4 billion instead of $8.6 billion.

Thuy said tough policies concerning import controls needed to be implemented to ensure the efficient development of the export sector.

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Export turnover increases 23.2 percent

The country's export turnover reached an estimated US$51.5 billion during the first nine months of the year, an increase of 23.2 percent compared to the same period last year, reported the General Statistics Office.

The domestic sector earned $24.1 billion, a 19.7 percent increase, while the foreign-investment sector fetched $27.35 billion (including crude oil), a 26.5 percent increase.

Export commodities earned more than $1 billion in revenue.

Coffee, cassava and cassava products, and crude oil declined in export turnover in comparison to the same period last year.

The country imported $60.1 billion in commodities during the first nine months, an increase of 22.7 percent compared to the same period last year.

Imported commodities that earned the highest import turnovers included textiles, up 26 percent ($3.84 billion); electronics, computer and computer accessories, 30.6 percent ($3.5 billion ); metals, 72.8 percent ($1.8 billion); and plastics, 36 percent ($2.7 billion).

According to the GSO, the trade deficit was restrained to $8.6 billion during the first nine months of the year, which accounted for only 16.7 percent of the total export and import turnover.

The GSO's Commerce Department director Le Minh Thuy said the current trade balance lacked equilibrium as export turnover rose due to inflated prices of several export commodities, including crude oil, cassava, coal, pepper and cashew nuts.

Gold and gold products accounted for a major proportion of export revenues. If the GSO did not include gold exports, the trade deficit during the first nine months of the year would have been $11.4 billion instead of $8.6 billion.

Thuy said tough policies concerning import controls needed to be implemented to ensure the efficient development of the export sector.

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