Indian textile exhibition kicks off Wednesday

HCMC – Twenty four Indian companies will display their latest range of fabrics and yarns in a two-day exhibition in the Rex Hotel in HCMC from Wednesday.  

The Indian textile exhibition is organized by the Synthetic and Rayon Textiles Export Promotion Council of India in collaboration with the Vietnam Chamber of Commerce and Industry (VCCI). It’s the sixth Indian textile exhibition held in the city in the last few years.

“Indian textile companies have some advantages as they can supply big orders as well as small-volume ones,” Srijib Roy, joint director of the Indian council, said in a meeting with local media on Monday to introduce the exhibition.  

Roy said they could meet demand of garment companies in fast changing fashion markets. Besides, Indian companies can change their products designs upon buyers’ request.  

Abhay Thakur, consul general of India in HCMC, said Vietnam’s textile imports from India this year increased four times compared with last year. In the first half of this year, Vietnam imported US$115 million worth of Indian textile products compared to US$25 million in the year-earlier period.

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Danang targets double-digit growth for next 5 years

DANANG – The central coast city of Danang has announced high development targets for the next five years, aiming at an annual gross domestic product growth rate of 13.5%-14.5% to reach a GDP per capita of US$3,200 by 2015.

In a report released at the opening session of the city’s Party Congress on Tuesday, the city boasts an average GDP growth rate of 11% in the 2006-2010 period. The GDP per capita this year is estimated at US$2,015, or 2.2 times higher than that in 2005 and 1.6 times that of the national average.

Nguyen Ba Thanh, secretary of Danang City Party Committee, told the opening session that Danang City would strive to create the growth momentum for the entire central region.

“Central authorities have assigned a challenging task to Danang City. Danang will have to push up development, not only for its own sake, but also for becoming the growth momentum for the central region,” Thanh said.

Thanh, who was re-elected secretary of the city’s Party Committee, said the city’s infrastructure has been developed quickly, meeting the demand of investors.

In the first half of this year, Danang attracted US$2.7 billion of foreign direct investment committed into 175 projects.

The municipal Party Congress will wrap up Thursday, after endorsing socio-economic development goals.

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Jardine Matheson to build commercial complex in city

HCMC chairman Le Hoang Quan (R) receives a book as souvenir from Jardine’s CEO and managing director Anthony J.L. Nightingale (C) during the meeting, while Alain Cany, country chairman of Jardine Matheson (Vietnam), looks on - Photo: Kinh Luan

HCMC – The UK-based Jardine Matheson Limited is proceeding with a huge project to develop a commercial complex in the central business district of HCMC, the group’s top executive said on Tuesday.

Jardines’ CEO and managing director Anthony J.L. Nightingale told HCMC Chairman Le Hoang Quan during a courtesy call at the City Hall on Tuesday that it was completing procedures for the project in a prime location in the city.

“The complex will be developed like our models in Hong Kong and Singapore. Its underground section will be used to place retail shops, but most of the higher floors will be offices for rent,” said Nightingale.

Joining the meeting on Tuesday were also managing director Benjamin Keswick and Alain Cany, country chairman of Jardine Matheson (Vietnam).

Nightingale noted that Jardines had strong support in this project by both the UK government and the Vietnamese Prime Minister.

Both Nightingale and Chairman Quan did not mention the project’s location, but a city official told the Daily the UK investor would build the complex on the “golden land plot” at 164 Dong Khoi Street in District 1.

“It is the French-style building opposite the Notre Dame Cathedral, covering 9,700 square meters, part of which currently houses the Department of Culture, Sports and Tourism,” the source said.

Jardine has been active in property projects in Vietnam. Nightingale said that Jardine Matheson (Vietnam) has cooperated with Phu My Hung Corporation to develop a hypermarket in Phu My Hung New Urban Area in District 7.

Entering in Vietnam in 1995, Jardine Matheson now has five representative offices, three wholly foreign-owned companies, comprising the lift and escalator manufacturer Schindler Vietnam, the supermarket operator Dairy Farm Giant South Asia Vietnam, and the risk management advisor and insurance broker Jardine Lloyd Thompson.

The group has also invested in four other organizations in Vietnam, including Asia Commercial Bank, Truong Hai Auto Corporation, and the construction company Gamvico.

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ADB raises forecast on Vietnam’s economy

Ayumi Konishi, ADB country director for Vietnam, gestures while speaking to the press at the launch of the Asian Development Outlook 2010 Update (ADO Update) in Hanoi on Tuesday - Photo: TTXVN

HCMC – The Asian Development Bank raised its growth forecast for Vietnam’s economy in the Asian Development Outlook 2010 Update (ADO Update) launched on Tuesday.  

The report says Vietnam’s economic growth is expected to reach 6.7% this year, slightly higher than ADB’s earlier forecast, and for 2011 from 6.8% to 7.0% while lowering the inflation projection in 2010 to 8.5% and 2011 to 7.5%, respectively.  

“Since the last press conference on Asian Development Outlook 2010 in April this year, Vietnam has consolidated its macroeconomic stability, and as a result we are making upward adjustments in our growth forecast for both 2010 and 2011, while lowering the projections for inflation,”  Ayumi Konishi, ADB country director for Vietnam, said in a statement.  

The report notes the steps taken by the Government to stabilize economy have contributed to an improvement in the external and foreign reserves positions. With an improvement in the capital account, the overall balance of payments likely turned to a small surplus in the second quarter 2010 after recording deficits since the start of last year.

Economic growth quickened in the second quarter. Especially the two laws approved by the National Assembly in June 2010 – a new Law on the State Bank of Vietnam (SBV) and a Credit Institutions Law – together with various legal documents issued by SBV and other agencies, mark important progress in strengthening the framework for monetary policy implementation and safeguarding banking system stability.  

Vietnam, however, needs to be cautious in maintaining macroeconomic stability and effectively communicating such a policy stance to the public while accelerating reforms to prepare for the next ten-year period as a new Middle Income Country, according to the report.

“Vietnam should continue its efforts to ensure a better understanding of its policy stance by the public at large, supported by greater and timely availability of information and statistics. This applies not only to the Government but also to the corporate sector,” Konishi said.  

“In order to promote better corporate governance of both public and private enterprises, quality and timeliness of information to be made available to the owners or shareholders and potential future investors will be the key.”

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ADB raises forecast on Vietnam’s economy

Ayumi Konishi, ADB country director for Vietnam, gestures while speaking to the press at the launch of the Asian Development Outlook 2010 Update (ADO Update) in Hanoi on Tuesday - Photo: TTXVN

HCMC – The Asian Development Bank raised its growth forecast for Vietnam’s economy in the Asian Development Outlook 2010 Update (ADO Update) launched on Tuesday.  

The report says Vietnam’s economic growth is expected to reach 6.7% this year, slightly higher than ADB’s earlier forecast, and for 2011 from 6.8% to 7.0% while lowering the inflation projection in 2010 to 8.5% and 2011 to 7.5%, respectively.  

“Since the last press conference on Asian Development Outlook 2010 in April this year, Vietnam has consolidated its macroeconomic stability, and as a result we are making upward adjustments in our growth forecast for both 2010 and 2011, while lowering the projections for inflation,”  Ayumi Konishi, ADB country director for Vietnam, said in a statement.  

The report notes the steps taken by the Government to stabilize economy have contributed to an improvement in the external and foreign reserves positions. With an improvement in the capital account, the overall balance of payments likely turned to a small surplus in the second quarter 2010 after recording deficits since the start of last year.

Economic growth quickened in the second quarter. Especially the two laws approved by the National Assembly in June 2010 – a new Law on the State Bank of Vietnam (SBV) and a Credit Institutions Law – together with various legal documents issued by SBV and other agencies, mark important progress in strengthening the framework for monetary policy implementation and safeguarding banking system stability.  

Vietnam, however, needs to be cautious in maintaining macroeconomic stability and effectively communicating such a policy stance to the public while accelerating reforms to prepare for the next ten-year period as a new Middle Income Country, according to the report.

“Vietnam should continue its efforts to ensure a better understanding of its policy stance by the public at large, supported by greater and timely availability of information and statistics. This applies not only to the Government but also to the corporate sector,” Konishi said.  

“In order to promote better corporate governance of both public and private enterprises, quality and timeliness of information to be made available to the owners or shareholders and potential future investors will be the key.”

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VietABank to issue 137 million shares

Customers transact at a transaction office of VietABank. The bank will issue shares to increase capital to VND3 trillion - Photo: Le Toan

HCMC – Vietnam Asia Commercial Bank (VietABank) will issue nearly 137 million shares to increase its chartered capital from VND1.63 trillion to VND3 trillion to comply with the central bank’s regulations.

Under the plan approved by the State Bank of Vietnam, the bank will issue 9.58 million shares to pay 2009 dividend of 7% to existing shareholders, and sell 26.1 million to existing shareholders at VND10,000 each with the ratio of 100:16.

In addition, VietABank plans to sell over 100 million shares to local investors at the price not lower than VND10,000 each.

* HCMC Housing Development Bank (HDBank) has got approval from the State Securities Commission to issue 145 million shares to increase its chartered capital from VND1.55 trillion to VND3 trillion.

The bank will issue shares in two phases; 45 million shares in the first phase will be sold to existing shareholders at the face value, while 95 million shares will be sold to existing shareholders and the remaining five million shares to staff in the second phase at VND10,000 each.

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Spanish firms see Vietnam as good production base

Judith Padrós (L) of the Barcelona Chamber of Commerce talks to Vietnamese guests at a networking event held here on Monday evening for Spanish delegates and their local counterparts - Photo: Mong Binh

HCMC – Many Spanish companies are looking for the opportunity to invest in Vietnam as they consider this market as an attractive base for both production and consumption, said the Spanish economic and commercial counselor in Vietnam.

Alberto Cerdán told the Daily that executives of some 30 Spanish companies operating in various business fields would participate in a major investment forum planned here in November this year.

Cerdán released the news as Spain’s Barcelona Chamber of Commerce in association with the Segovia and Gijon chambers of commerce is organizing a mission to Vietnam, Laos and Cambodia to explore new business opportunities and expand their presence in those markets.

The visiting delegation groups Spanish firms in agricultural equipment, project and consultancy services, perfume and aroma, cosmetics, timber products and services, hospital equipment, and waste water treatment among others.

“We are here, not only to sell our products and services but also to look to partnerships with local partners,” Judith Padrós at the Barcelona Chamber of Commerce, told the Daily at a networking event held in HCMC on Monday.

Cerdán elaborated that some of the Spanish businesses coming to Vietnam in November had already built factories in China, and they wanted to invest in production facilities to take full advantage of lower labor cost in this country and to expand their operations in Asia.

He explained competition in Europe was turning tougher so Spanish companies would gain an advantage in that market if they were able to make products with competitive prices, and Vietnam had emerged as a haven for them.

He confirmed Spanish enterprises were keen to turn out garments and footwear in Vietnam for export to Europe and the United States as well as for consumption in this market.

“They start to think about Vietnam as a market for both production and consumption. For that they need their footing in the region,” he said.

In addition to garment, footwear and fish products, Vietnam will be able to attract Spanish investors in areas of logistics, building materials, food additives, farming and pharmaceutical, according to the Spanish counselor.

Spain is also involved in the fifth subway line to be developed in HCMC. Cerdán said Idom Ingenieria Consultoria S.A. and its local partners had almost completed the feasibility study for the subway development funded by Spain’s ODA loans.

The fifth subway line will stretch 15 kilometers from Can Giuoc Coach Station in District 8 to the Saigon Bridge and the 6-kilometer-long sixth line will connect Ba Queo in Tan Binh District and Phu Lam in District 6. An initial plan envisaged around US$900 million for developing the first route and US$320 million for the latter.

In December last year, high-ranking officials of Spain and Vietnam signed a memorandum of understanding under which the European country will provide up to 500 million euros (some US$674 million) for subway development in HCMC.

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