Friday, January 14, 2011

Korea Testing Laboratory to enter Vietnam

HCMC – The Korea Testing Laboratory, or KTL, is planning to enter Vietnam to further facilitate trade between the two countries as the rapid growth of trade between Vietnam and South Korea results in high demands for testing, a KTL executive said.

Jung-sup Kim, director general for the industry support division of KTL, told a seminar in HCMC on Tuesday that the rising exchange of commodities between the two countries prompted KTL to come to Vietnam to serve the big testing demand.

Kim told the seminar it co-held with Vietnam’s Quality Assurance and Testing Center 3, or Quatest 3, that testing for electrical, electronic and medical devices as well as toys was on the rise.

Therefore, “it is necessary for the industries to have testing regarding quality and safety in addition to mandatory regulations relating to the conformity assessment of the governments for the production and trading of these products,” he said.

Korean experts at the seminar introduced local businesses to its compulsory certification schemes for electronic products, medical devices and the Energy Efficiency Labeling Program.

KTL, under the Korean Ministry of Knowledge Economy, provides testing, certification, quality certification services and R&D for product safety, reliability, performance and standards.

In addition, the founding member of the Asian Network Forum (ANF) is working with Quatest 3 to help the latter upgrade itself to international standard.

Hoang Lam, deputy director of Quatest 3, told the seminar that collaboration with KTL would make his agency’s testing results more widely recognized.

“We are to join the ANF in November, and at the time, the products tested by our laboratory will soon be recognized be regional laboratories,” Lam said.

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Market suddenly bounces back

HCMC – The local market suddenly rallied to over the 450-point level on Tuesday after two successive falling sessions. The VN-Index gained 5.13 points, or 1.15%, from the previous day to close at 450.96.

Liquidity, however, fell back sharply with 33.2 million shares worth VND839 billion traded, plunging by 33.7% and 31% against a day earlier respectively. Investors on the southern bourse bid for nearly 72 million shares, rising by 7.5% from the previous session, while they offered 54.3 million shares, a 34.4% decrease.

The market opened lower and hit a low of 440.63 in the second matching phase before a rebound. It enjoyed a late surge which included a four point jump at the close to end the day at the highs.

The market saw 131 stocks rising and 72 others closing down, of which 11 stocks went to the ceiling prices and seven others plunged to the floor prices.

Ocean Group Co. (OGC) once again was the most actively traded stock, rising 2.3% to VND30,800 per share with 1.6 million shares traded. Sacombank (STB) still stood at the second position, closing flat at VND16,800 on the volume of 1.4 million shares.

Foreigners remained strong net buyers as they bought 5.8 million shares worth VND220 billion and offloaded 1.9 million shares worth VND78.8 billion. They accounted for 26.2% and 9.3% of the market’s buying and selling value respectively.

The Hanoi market also recovered after a four-session losing streak while turnover fell to VND720 billion. The HNX-Index rose 1.1 points, or 0.91%, from the previous session to 122.02.

There were 171 stocks advancing and 96 others losing, of which 32 stocks closed the day at the ceiling prices and nine stocks dropped to the floor prices. Foreigners were net buyers again to the tune of VND7 billion worth of shares.

Fiachra Mac Cana, managing director of HCMC Securities Corp., said both markets rebounded in late trading after a weak start but volumes were lower. The late bounce was at least partly down to technical trading in the southern bourse and therefore perhaps less than convincing.

“Even so we are happy to see some buying support above the critical 118-point level on the HNX-Index. Market breadth widened somewhat, while foreigners were very active buyers again on Wednesday,” he said.

“While we think the late rebound was encouraging with volumes fairly low and market bids and offer levels trailing below recent averages it lacks conviction. Therefore, the market is still likely to test lower short term in our opinion. We keep our investment stance that medium to long-term players can continue to buy in gradually,” Mac Cana added.

Vietnam International Securities Co. (VIS) said the market would check the 450-point level for several times before a clearer tendency got visible. “The market may not see a strong decline as stock prices had suffered enough impacts of bad news. The market will see another rising session on Thursday,” VIS said.

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Heritage site aims to lure investment from RoK

Thua Thien-Hue province, where the Hue imperial city is located, has
been given a promise from the Republic of Korea (RoK) Ambassador
to encourage investors to come.


The RoK diplomat, Park Suk Hwan, told the provincial People’s Committee
Chairman, Nguyen Van Cao, during their meeting in the central region
province on October 6, that he would promote the province’s strengths
and potential among RoK business circles, to encourage them to invest.


Thua Thien-Hue is home to Hue Imperial City
which has been recognised as a world cultural heritage site by the UN
Educational, Social and Cultural Organisation (UNESCO).


Cao reported that the province has granted 11 licences for investment
to businesses from the RoK, capitalised at some 560 million USD.


Most of their projects are in the hospitality industry, services, and
construction and investment in technical infrastructure for industrial
zones.


In addition to Foreign Direct Investment,
the province has received the RoK’s aid in Official Development
Assistance (ODA) for the construction of a 500-bed hospital, capitalised
at 20 million USD./.

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Auditors seek assistance from Slovakia

During talks in Hanoi on October 6 the Vietnamese audit chief asked
his Slovak counterpart to provide technical assistance for State Audit
of Vietnam, with funding to come from Slovak Official Development
Assistance (ODA) and State budgets.


Talks between
Auditor General Vuong Dinh Hue and President of Slovakia’s Supreme
Audit Office (SAS) Jan Jasovsky focused on the agreement of cooperation
signed in Bratislava , Slovakia , in December, 2009.


Under the document, SAS will help the State Audit of Vietnam increase
its competence in budget auditing and verifying State budget estimates
before submission to the National Assembly for approval.


The scheme also calls for further cooperation in consultancies around
information technology, under which the SAS will send experts to
Vietnam for exchange of experience.


During the
talks, the Vietnamese auditor general also expressed interest in sending
his staff to Slovakia to attend workshops and take part in
programmes sponsored by SAS.


Further cooperation
with SAS within the framework of the International Organisation of
Supreme Audit Institutions (INTOSAI) was also high on the duo’s talks,
focusing on environmental audit, public debt audit, IT audit, auditing
quality supervision and operational auditing./.

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Vietnam’s largest industrial gas plant operational

An industrial gas plant with capacity of 8,500 N cu.m per hour, the
largest of its kind in Vietnam, was put into operation on October 6 at
the Hoa Phat Steel Complex in the northern province of Hai Duong by the
Messer Hai Phong Industrial Gas Company Ltd.


With an investment of 20 million USD, the plan is capable of producing 300 tonnes of oxygen and 510 tonnes of nitrogen a day.


Additionally,
the company built a liquefied petroleum gas plant, providing 100 tonnes
of liquefied oxygen and nitrogen and 10 tonnes of liquefied argon a
day.


Apart from serving the Hoa Phat Steel Complex, the plant
will supply these products to the industrial gas markets in the north
and central regions.


The Germany-based Messer Group has been
operating over 13 years in Vietnam with two companies – Messer Hai
Phong Industrial Gas Company Ltd. and Messer Vietnam Industrial Gas
Company Ltd. It is leading in gas supply and related engineering service
in the Southeast Asian country.


In addition to the plant in Hai
Duong, Messer Group invested in building filling stations in the
southern provinces of Ba Ria-Vung Tau and Binh Duong and the northern
city of Hai Phong . It is expected to inject over 50 million USD in
industrial gas production projects in Vietnam in the coming years./.

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Poor fuel management costs millions

Poor fuel forecasting and lack of communication had caused Vietnam to
spend valuable foreign currency on importing petrol while domestic
petrol was in oversupply, the Ministry of Industry and Trade said this
week.


It has also contributed to Vietnam National
Petroleum Corporation (Petrolimex) losing 41 million USD in exchange
rates so far this year.


Deputy Minister Nguyen Cam Tu said
only 9 out of 11 petrol enterprises had bought petrol produced by Dung
Quat Oil Refinery this year, using only 30-40 percent of its production
capacity.


Petrolimex, which accounted for 60 percent of
the country's market share of petrol, had been expected to buy 28
percent of Dung Quat's output, but had only bought 19 percent.


Tu explained that the reason for the high imports was a shortfall last
year when the new refinery had failed to reach its production target due
to teething problems and as a result petrol traders had had to import
petrol in order to ensure supply.


This year, traders had
again signed contracts to import fuel, hedging against the same thing
happening again at the refinery, but the plant had ironed out its
problems.


Since August it had been producing to its design
capacity, which was equal to 6.5 million tonnes a year, or 30 percent
of the country's needs, exceeding its own yearly plan by 25 percent.


Thus while local production was up, local demand was down as domestic
traders would suffer heavy losses if they cancelled their import
contracts.


The differences in exchange rates had already
caused Petrolimex a loss of 800 billion VND (41 million USD) since the
beginning of the year.


To address the problem, PetroVietnam would plan and work with petrol traders to limit stockpiled petrol and restrict imports.


In the meantime, Petrolimex had targeted to double petrol consumption
from the refinery in the next three months and six out of 11 petrol
importers had sought to reduce their imports to 700,000cu. m.


To date, the plant had processed 4.98 million tonnes and sold 4.74
million tonnes; in particular 4,500 tonnes of aviation fuel Jet A1 fuel
was sold to PB Singapore Petroleum Company.


The country
had imported 7.84 million tonnes in the first nine months, or 67.6
percent of its forecast consumption for the year./.

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Thursday, January 13, 2011

Hanoi commercial property booms

The Hanoi real estate market saw optimistic development in the third
quarter and the growth trend is expected to continue to the end of this
year, Savills Vietnam real estate agent reported on Oct. 5.


"Good economic recovery in the third quarter helped the office and
retail sectors in the property market," said Pham Thanh Son, Savills
Vietnam economics expert.


Hanoi 's office occupancy
rate average increased to 91 percent, a 4 percent jump, in the second
quarter, according to Savills associate director and head of research
and consultancy Tran Nhu Trung.


The average occupancy rate
in the city's shopping centres remained high at 94 percent and many new
shopping centres opened in this quarter.


The serviced
apartment sector average dipped slightly to 91 percent from 92 percent
in the third quarter but average rental rates increased by 0.4 percent
to 26 USD per sq.m per month, Trung said.


Son reported
challenges to credit acquisition for the capital property market, which
include depreciating dong, high interest rates for loans and Decree 71,
which contributed to a decline in mobilised capital.


Son
also asserted that the increased price of gold and the higher exchange
rate attracted more investors to the financial market so available
capital for property projects has declined./.

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