Saturday, December 18, 2010

ASEAN-BIS to take place in Hanoi next month

HANOI – The ASEAN Business and Investment Summit, or ASEAN BIS 2010, will be held in Hanoi City from October 26-28 on the sidelines of the 17th ASEAN Summit.

The event, themed “Towards the ASEAN Community: From vision to action”, will offer an opportunity for leading businesses in the ASEAN region to seek partners and cooperation opportunities as well as expanding their investment activities. It is organized by ASEAN Chambers of Commerce and Industry (ASEAN-CCI), the East Asia Business Council, the Greater Mekong Sub-region Business Forum and the Vietnamese government.

Around 800 to 1,000 government officials, policy makers, economic experts and business leaders are expected to join the ASEAN BIS 2010.

Speaking at the press briefing on Monday, Doan Duy Khuong, vice chairman of the Vietnam Chamber of Commerce and Industry and President of the ASEAN - Business Advisory Council (ASEAN-BAC), said the ASEAN BIS 2010 will be where a nation or a business define its position in the region and the world. They will have chances to realize their advantages and shortcomings and set up suitable business strategies, he said

This year, Vietnam will organize many direct dialogues with strategic partners of ASEAN nations such as Australia, New Zealand, India, Japan, South Korea and Russia.

The organizers will also grant the ASEAN Business Awards (ABA) to outstanding ASEAN businesses that have contributed to regional economic growth and prosperity on October 28.

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ASEAN-BIS to take place in Hanoi next month

HANOI – The ASEAN Business and Investment Summit, or ASEAN BIS 2010, will be held in Hanoi City from October 26-28 on the sidelines of the 17th ASEAN Summit.

The event, themed “Towards the ASEAN Community: From vision to action”, will offer an opportunity for leading businesses in the ASEAN region to seek partners and cooperation opportunities as well as expanding their investment activities. It is organized by ASEAN Chambers of Commerce and Industry (ASEAN-CCI), the East Asia Business Council, the Greater Mekong Sub-region Business Forum and the Vietnamese government.

Around 800 to 1,000 government officials, policy makers, economic experts and business leaders are expected to join the ASEAN BIS 2010.

Speaking at the press briefing on Monday, Doan Duy Khuong, vice chairman of the Vietnam Chamber of Commerce and Industry and President of the ASEAN - Business Advisory Council (ASEAN-BAC), said the ASEAN BIS 2010 will be where a nation or a business define its position in the region and the world. They will have chances to realize their advantages and shortcomings and set up suitable business strategies, he said

This year, Vietnam will organize many direct dialogues with strategic partners of ASEAN nations such as Australia, New Zealand, India, Japan, South Korea and Russia.

The organizers will also grant the ASEAN Business Awards (ABA) to outstanding ASEAN businesses that have contributed to regional economic growth and prosperity on October 28.

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Central bank makes little change to Circular 13

HCMC – The central bank on Monday evening issued a new circular amending Circular 13, but it made little changes to the highly-controversial legal document on safety ratio for banking operations.

In the new document coded Circular 19/2010/TT-NHNN, the State Bank of Vietnam allows banks to calculate 25% of non-term capital deposited by companies as mobilized funds, meaning this capital can be used to make loans. In Circular 13, such deposits cannot be used for loans.

In addition, capital borrowed from other credit institutions with a term of three months or more, and capital borrowed from foreign banks will also be added into mobilized funds for lending. The amount of loans underwritten by a bank will not be considered its own loans under the new amendments.

These changes will help increase the amount of mobilized funds of credit institutions, and is seen a quantitative easing measure by the central bank in response to complaints by banks over Circular 13 as a monetary tightening policy.

The new changes came forth following instructions from the Government, asking the central bank to rethink Circular 13 issued in May this year.

Last Friday, the Prime Minister sent a fresh document to the central bank asking the governor to adjust Circular 13 based on proposals of the National Financial Supervisory Commission. The central bank was also told to assess the real financial market situation, capital raising process of banks, and the Government’s policy on decreasing interest rates.

Apart from aforesaid changes, the new circular still sticks to the loans-to-deposit ratio of 80% for commercial banks, and 85% for non-banking credit institutions. Besides, the central bank also upholds its stance about the risk coefficient at 2.5 for stock and real estate loans, thus restricting the cash flow for these two sectors.

The capital adequacy ratio (CAR) will be also unchanged at 9%. The effective time of new regulations is kept unchanged at October 1 although lenders and the National Financial Supervisory Commission said that was too hurried.

Earlier, the National Financial Supervisory Commission submitted a proposal to the Prime Minister suggesting methods to amend Circular 13.

Le Xuan Nghia, vice chairman of the commission, in a seminar last week in HCMC showed opinion that the Circular 13 was even stricter than the new international safety standard of Basel III. He also objected regulations on CAR, loans-to-deposit, and risk coefficient for stock and real estate loans, as well as time to meet those requirements.

Nghia said given strict regulations on safety in banking operation, the desire of lowering deposit and lending rates of the Government would be far away from reality and enterprises would find it harder to access banks’ loans.

In early August, Vietnam Banks Association representing 14 credit institutions sent a nine-page proposal asking the central bank to amend many things in the Circular. However, the amended regulation meets just a small part of the demand of credit institutions.

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Taiwanese trade mission comes knocking

Taiwanese entrepreneurs and Vietnamese partners at the meeting in HCMC on Monday - Photo: Thu Nguyet
HCMC - A trade mission representing 66 Taiwanese enterprises had a business-to-business meeting with HCMC partners on Monday to sound out trade opportunities.

They are operating in many industries, including beauty products, household devices, energy, trading, and environment protection products. The Taiwanese companies also had an exhibition of their products.

Vietnam is an important market for Taiwanese goods after Hong Kong and Chinese mainland.

In the first seven months of this year, bilateral trade between Vietnam and Taiwan amounted to US$4.6 billion and is expected to reach US$10 billion in the whole year. Vietnam’s imports from Taiwan increased 8.5% to more than US$3.8 billion while exports totaled US$785 million, up 34.2%.

Taiwan is also among the biggest foreign investors in Vietnam, with 2,130 projects having been licensed in the country with total registered capital of more than US$22 billion between 1988 and now. In the first seven months of the year, Vietnam has issued investment licenses to 51 Taiwanese-invested projects worth a total US$870 million.

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Friday, December 17, 2010

Taiwanese trade mission comes knocking

Taiwanese entrepreneurs and Vietnamese partners at the meeting in HCMC on Monday - Photo: Thu Nguyet
HCMC - A trade mission representing 66 Taiwanese enterprises had a business-to-business meeting with HCMC partners on Monday to sound out trade opportunities.

They are operating in many industries, including beauty products, household devices, energy, trading, and environment protection products. The Taiwanese companies also had an exhibition of their products.

Vietnam is an important market for Taiwanese goods after Hong Kong and Chinese mainland.

In the first seven months of this year, bilateral trade between Vietnam and Taiwan amounted to US$4.6 billion and is expected to reach US$10 billion in the whole year. Vietnam’s imports from Taiwan increased 8.5% to more than US$3.8 billion while exports totaled US$785 million, up 34.2%.

Taiwan is also among the biggest foreign investors in Vietnam, with 2,130 projects having been licensed in the country with total registered capital of more than US$22 billion between 1988 and now. In the first seven months of the year, Vietnam has issued investment licenses to 51 Taiwanese-invested projects worth a total US$870 million.

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Japan ICT companies back to Vietnam for business

Kenji Ogawa (L), vice chairman of the Information Technology Promotion Agency (IPA-Japan), and Pham Tan Cong (R), general secretary of Vinasa, congratulate each other on the signing of the MOU on development of the human resource valuation system applicable to Vietnam ICT enterprises - Photo: Hien Nguyen
HCMC – Japanese information and communication technology enterprises are coming back to Vietnam to grasp business opportunities after an interruption caused by the financial crisis since end-2008, heard the Vietnam Japan IT Day in the city on Monday.

The event, organized by the Vietnam Software Association (Vinasa) and Vinasa Japan IT Cooperation Club, is attended by about 50 Japanese enterprises like NEC, GDS and Cybozu, Pham Tan Cong, general secretary of Vinasa, told the Daily on the sidelines of the event.

Many Japanese ICT firms shut down their Vietnam branches in the aftermath of the crisis, Cong said, and 2009 was a tough year for the Japanese ICT industry although Japan was a huge market with annual turnover of US$130 billion.

Vietnam’s software outsourcing sector also felt the impact of the Japanese ICT sector’s woes since it is recognized as the third largest partner of Japanese firms.

FPT, the country’s biggest ICT enterprise, was hurt when ICT companies of Japan left Vietnam; about 56% of its revenue came from Japan’s market.

“A tough period seems to be over. On Tuesday Japan ICT companies are back to Vietnam and they are searching for new partners and new business opportunities,” Cong noted.

Since early this year, he added, Vietnamese and Japanese ICT companies have exchanged many business matching trips and clinched a lot of high-value deals. “It’s a good sign for the Vietnam software outsourcing sector.”

Hiromi Sugiyama, vice chairman of the Japan Information Technology Service Industry Association, said the worst for Japan’s ICT industry was over and that it was time for it to explore new partners and business deals.

Vietnam’s software outsourcing segment is recognized as a key partner of Japan, Sugiyama said, adding embedded software development, business application software development and data entry were in need of Vietnamese firms.

He said Japan’s offshore outsourcing volume grew rapidly, from US$1.37 billion in 2004 to US$4.33 billion in 2008. Vietnam ICT enterprises are mostly likely to gain slice of this huge pie.

“Japan is a serious market. To win a contract from the market, Vietnam ICT companies should enhance the quality of IT developers’ skills and of services,” he noted.

On Monday saw Vinasa signing a memorandum of understanding with the Information- Technology Promotion Agency (IPA-Japan) to promote the human resource valuation system in Vietnam ICT enterprises.

IPA will provide technical support for Vinasa to build up the system and deploy it by early 2011.

In a related development, the Taiwan External Trade Development Council (TAITRA) in Vietnam on Monday launched a campaign to promote its information technology products here in the local market.

The Taiwan Excellence campaign is organized by TAITRA and supported by 17 selective Taiwan information technology brands including ASUS, MSI, D-link, BenQ, Genius and Optoma.

TAITRA said it would organize a Taiwan information technology expo in HCMC next month to promote its products locally.

The Ministry of Information and Communications reported that between 2000 and 2009, Vietnam’s IT industry grew at double digits, 20-25% a year.

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Sept dollar credit growth up strongly in HCMC

HCMC – Outstanding loans in foreign currency, mostly the U.S. dollar, at credit institutions in HCMC by the end of this month are forecast to expand 36% from late last year to VND186.1 trillion, according to central bank figures.

The figures from the central bank’s HCMC branch show September dollar credit growth at commercial banks in the city is seen reaching 6.1% month-on-month, up from the 1% recorded in August.

Banks have reported an 8.5% rise in September dollar mobilization from August after they hiked dollar deposit rates early this month. Meanwhile, the amount of dollars raised in August was down 4% month-on-month.

Therefore, banks in the city may have raised a total of VND181.25 trillion by late this month, up 8.4% from late 2009. So outstanding dollar loans continue surpassing mobilization in September and part of the reason is that foreign banks have ample cheap dollar funds from their mother banks and foreign institutions.

In contrast to the dollar mobilization, HCMC banks’ Vietnam dong fund raising in the first nine months this year has been higher than credit growth. By late September, the volume of dong deposits is projected to amount to VND530.7 trillion, up 21.7% from late last year, and outstanding loans VND463.3 trillion, up 9.4% from late 2009.

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