Wednesday, December 29, 2010

Foxconn to raise wages again at China plant

BEIJING - Electronics maker Foxconn Technologies, under fire for its working practices after a string of worker suicides, has decided to up salaries by two-thirds at its Shenzhen factory, state media said on Friday.

News agency Xinhua quoted company spokesman Liu Kun as saying the roughly 66 percent pay rise for assembly line workers, the second this year, would bring salaries to 2,000 yuan ($298.9) per month. It starts from this month.

The increase will benefit about 85 percent of workers at the Shenzhen factory, the report added.

Foxconn increased salaries by 30 percent in June, from 900 yuan to 1,200 yuan per month, for its Shenzhen employees.

Eleven suicides this year at the sprawling manufacturing base has brought intense scrutiny of Taiwan's Hon Hai Precision Industry Co Ltd, the owner of Foxconn, which makes the iPhone and other products for Apple and also counts Dell and Hewlett-Packard among its clients.

The company has tried addressing the problem by improving living conditions for workers, organising activities to boost moral and bumping up wages.

Hon Hai said in August it would have as many as 1.3 million workers in China by the end of 2011, up from 920,000 now, but would focus the expansion away from its increasingly expensive Shenzhen plant.

Foxconn is expanding aggressively inland, away from Shenzhen which is in the Pearl River Delta area, where wages are lower and workers are more plentiful.

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Vietnamese company expands business in Laos

Hanoi Liquor Joint Stock Company (HALICO) opened its representative
office in the Lao capital city of Vientiane on September 30.


Lao Minister of Industry and Trade Nam Viyaketh, Deputy Minister of
Planning and Investment Thongmy Phomvisay, senior officials and
Vietnamese Ambassador Ta Minh Chau along with 200 guests were present at
the opening ceremony.


Addressing the event, HALICO
Director Ho Van Hai underlined the company’s prestigious trade mark
which has developed both at home and abroad over the past 100 years.


He said the company desires to introduce high-quality
products to Lao customers and build a factory in the country in order to
boost two-way trade between the two nations, generate more jobs for
local people and contribute to the two countries’ state budgets.


Lao Minister Nam Viyaketh hailed the establishment of the office and
pledged to create favourable conditions for the company to effectively
run business and invest in his country.


He extended
his wish that HALICO would soon open a factory in Laos to provide
good-quality products for the country and other labouring markets,
contributing to bolstering bilateral comprehensive cooperation.


On behalf of the Lao government, Deputy Minister of Planning and
Investment Thongmy Phomvisay granted investment licence to the company’s
director./.

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City company signs Japan partner deal

The Japan Pile Corporation has entered a strategic partnership with
local firm Phan Vu Investment Corporation, concluding its contract on
Sept. 30 in HCM City.


Under the contract, the
Japanese company, which is listed on the Tokyo Stock Exchange, will
become a shareholder in Phan Vu. (PVI) with a 5-per- cent stake. It will
be the first foreign institutional investor of PVI.


The deal value, however, was not disclosed.


According to PVI's deputy general director Vo Thi Hien, her company
has a charter capital of 150 billion VND (75.5 million USD).


Last year it earned a net profit of almost 60 billion VND from a turnover of 690 billion VND.


As PVI's operations also include the pile foundation business, the
Japanese partner will cooperate to create new pile products for the
Vietnam market, including those with an anti-earthquake feature.


It will also assist in the management of the holding company model.


In the fourth quarter, Japan Pile Corp will organise training courses
for PVI staff in Vietnam and receive trainees in Japan as well.


The Phan Vu Investman Corp is expected to list in the HCM City bourse in the fourth quarter this year./.

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Shares stall on economic worries

The VN-Index fluctuated throughout most of Sept. 30’s session before closing at 454.52 points, an increase of 0.35 percent.


The volume of trades on the HCM Exchange rose by nearly 15 percent
over Sept. 29 to nearly 38 million shares, with a value in excess of 1
trillion VND (51.3 million USD).


Decliners
outnumbered advancers by 139-68, although five of the 10 leading shares
by capitalisation managed gains, including Sacombank (STB), Eximbank
(EIB), developer Hoang Anh Gia Lai Co (HAG), software giant FPT and
insurer Bao Viet Holdings (BVH), with the latter reaching its ceiling
price for a third consecutive day.


Ocean Group (OGC)
was again the most-active share on the southern bourse with a volume of
over 1.8 million units, but OGC again lost value on the day, closing
off 1.86 percent to 31,600 VND (1.60 USD) per share.


Vimedimex Medi-Pharma Co (VMD) saw its first day of trading on the HCM
exchange, but VMD shares dropped to their floor price of 32,000 VND
(1.65 USD) per share.


On the Ha Noi Stock Exchange,
the HNX-Index closed essentially unchanged at 127.29 points. The value
of trades reached 630.6 billion VND (32.3 million USD) on a volume of
26.3 million shares, decreases of 25 percent in value and 21.6 percent
in volume.


Losers outnumbered gainers, meanwhile, by
an overwhelming 200-78. Among the 10 leading shares by capitalisation,
only Asia Commercial Bank (ACB) rose in value.


Kim
Long Securities (KLS) was the most heavily-traded share, with 2.27
million changing hands, but KLS ended the session down nearly 2 percent
to just 15,000 VND (0.75 USD) per share.


The US dollar on Sept. 30 began to recover slightly on the black market, reaching over 19,700 VND per dollar.


Foreign investors were net buyers on both national stock exchanges on
the same day, picking up a combined 136.6 billion VND (7 million USD)
worth of shares./.

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Speculators cause domestic gold hike

The price of gold on the local market has risen due to possible
speculation rather than a supply shortage, according to Nguyen Van Giau,
governor of the State Bank of Vietnam (SBV).


The global gold price set new records in the past few days, as did the domestic gold market.


The SBV and the Vietnam Gold Association had kept a close watch on the
market in the last few days, and discovered there was no shortage of
gold, Giau said, adding that speculation was possibly the cause for the
price rise.


Domestic gold prices in August and the
first half of September were lower than the world price. But currently
the domestic price is 400,000 VND per tael higher than the global price.


The SBV was working with other agencies, including
the police and market management, to discover the reasons behind the
price hikes.


"With this kind of sensitive item, our
policy is not to completely ban gold imports, but gold companies are not
permitted to import any volume they want," Giau said.


"We are establishing a management framework for gold trading and
imports so that it is suitable with a market economy. We will collect
ideas from ministries and industries when we complete it."


Nguyen The Hung, general director of the Vietnam Gold Investment and
Trading Company, said the gold price on the domestic market would be
equal or even lower than the world price if the SBV permitted gold
importers to import gold.


However, the Government
has stopped granting permits for gold imports, which indicates that it
no longer considers gold an essential item, according to an expert.


In addition, the higher gold price had not affected people's lives
since few people conducted their transactions in gold, he said.


The gold price on the domestic market on Sept. 30 morning fell to
31.15 million VND (1,597 USD) per tael (1.2 ounces) after it reached a
record of more than 31.3 million VND (1,605 USD) per tael on Sept. 29,
following an upward trend in global gold prices.


On
Sept. 29, most gold shops in HCM City raised their price by more
than 700,000 VND (21.3 USD) over the Sept. 28 price to 31.25-31.36
million VND per tael.


On Sept. 30 morning, SBJ gold
was buying and selling at 31.15 million VND (1,597 USD) and 31.18
million VND (1,599 USD) per tael, respectively.


Sai
Gon Jewellery Holding Co on Sept. 30 bought the precious metal at 31.14
million VND and sold it at 31.18 million VND per tael, a reduction of
130,000 – 170,000 VND against Sept. 29.


The global
gold price on Sept. 29 reached an all-time high of 1,313 USD an ounce on
speculation that a global economic recovery would stoke inflation.


In Asia , the metal slightly fell on Sept. 30 morning to 1,309 USD an ounce.


The weakening of the US dollar on the world market has also contributed to the gold price hike, analysts have said./.

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Expo promotes regional tourism

A three-day annual International Travel Expo aimed at boosting 3CODE
(Three Countries One Destination) tourism programme covering Vietnam ,
Laos and Cambodia opened in HCM City on Sept. 30.


Held at the Saigon Exhibition and Convention Centre in District 7, the
event attracted 155 "buyers" from 35 countries and 173 sellers
(enterprises and departments offering products and services).


Besides buyers from traditional markets, organisers aimed to explore
new markets in North Europe, Spain , Italy and the US .


"This year's expo welcomes Myanmar , preparing to form the new
4CODE," said La Quoc Khanh, deputy director of the HCM City Department
of Culture, Sports and Tourism.


"We hope to see all
the six countries of the Greater Mekong Subregion in the coming expo, to
join hands and make the region more interesting in the eyes of
international tourists," Khanh said.


Vietnam 's
national flag carrier as well as the official carrier of the event,
Vietnam Airlines, offered up to 85 percent discounts on selected
international routes.


The carrier also introduced its "Welcome Christmas in Europe " tour packages at attractive prices.


Thailand organised a conference introducing its Amazing Thailand
campaign. The Tourism Authority of Thailand (TAT) targets 14 million
arrivals by the end of this year, and 15.5 million international tourist
arrivals next year.


TAT and the Vietnam National Administration of Tourism will hold a working section on Sept. 10./.

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Oil rig safety laws need boosting

Bach Ho oil rig in the southern province of Ba Ria-Vung Tau. Offshore oil and gas operations will be enhanced if tighter safety laws and regular inspections are conducted. — VNA/VNS Photo Ha Thai

Bach Ho oil rig in the southern province of Ba Ria-Vung Tau. Offshore oil and gas operations will be enhanced if tighter safety laws and regular inspections are conducted. — VNA/VNS Photo Ha Thai

HCM CITY — Viet Nam needed to strengthen risk-control aspects of several laws as part of efforts to enhance the safety of offshore oil and gas operations, speakers said at a seminar held in HCM City yesterday.

They also highlighted the need for strict, regular inspections and annual maintenance of all industry facilities.

The seminar, held by the Viet Nam National Oil and Gas Group (PetroVietnam), drew the participation of senior Government officials and representatives of oil and gas joint venture companies.

Do Van Hau, deputy director of PetroVietnam, recalled the explosion on British Petroleum's Deepwater Horizon rig in April that killed 11 workers and led to the biggest oil spill disaster in world history, dumping 16,000cu.m of crude oil into the Gulf of Mexico, describing it as a wake-up call.

It prompted State management agencies as well as the domestic oil and gas industry to work harder and ensure safety in all activities related to oil and gas exploration and exploitation, he said.

PetroVietnam and international oil and gas contractors had made great efforts to ensure safety for the people and to protect the environment. So far, there had been no serious accidents, he noted.

Dao Duy Khu from PetroVietnam's Safety, Health and Environment Board said there were currently 15 oil fields under exploitation in the country, including Bach Ho, Rong, Doi Moi, Rang Dong, Lan Tay and Phuong Dong. Viet Nam oil and gas exploitation this year is expected to reach 14.52 million tonnes and 8 million cu.m, respectively.

Khu stressed that offshore oil and gas operations including drilling, exploitation, storage and product transport were all high-risk activities. The main risks were fires, explosions, spills, collisions and natural disasters such as storms, earthquakes, and tsunamis.

State management agencies needed to strengthen risk control aspects of various legal documents including the Oil and Gas law, the Labour law, the Environment Protection Law, the Firefighting and Prevention Law, and the Maritime Law, other speakers said at the seminar.

The agencies should also inspect periodically the implementation of these legal documents.

Nguyen Xuan Hoa of the Oil and Gas Exploitation Board said safety management should cover the quality of designs, operational procedures and environment protection.

Accordingly, all enterprises should evaluate environmental impacts and prepare solutions in case of emergencies, he said. Training courses on safety should be held every year for company staff, he added. — VNS

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