Domestic gold prices set new record

HA NOI — Domestic gold prices soared yesterday to a new record of VND33 million per tael (US$1,690), an increase of VND1.4 million ($72) per tael over Tuesday's price, as speculators created a run on gold shops.

A tael is equivalent to 1.2 ounces.

The gold-selling districts in Ha Noi and HCM City were thronged with people and saw prices change at least four times in the morning, with Sai Gon Jewelry Co (SJC), Sacombank Jewelry Co, Bao Tin Minh Chau, Agribank Jewelry Co and Phu Nhuan Jewelry Co quoting buy/sell prices at VND32.85/33 million.

Domestic gold prices have increased by over 24.4 per cent since January, when prices stood at about VND26.5 million ($1,360).

Sacombank Jewelry general director Nguyen Ngoc Que Chi said yesterday's rush of buyers was due to a large number of speculators who had bought futures contracts in prior months and now sought to acquire gold before the price shot up further, putting a run on the available supply of the precious metal.

SJC's Ha Noi director, Luu Quang Dien, agreed, adding, "Many big trades are made by phone and the supply is limited, so the company has to select familiar customers to whom to sell."

The increase made domestic gold price be VND1 million ($51.28) higher than global gold price, which ignites concerns involving gold smuggling to take profits. Domestic price is normally just VND200,000-300,000 higher than global price.

Rumours were rife on the gold market last week that supplies were falling short of demand and that gold prices would continue to set new record highs,so State Bank of Viet Nam Governor Nguyen Van Giau attempted to counter the rumours and blamed any rises in prices on speculation rather than a gold shortage.

"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.

"Despite the shortage of gold at this time, I don't think the State Bank of Viet Nam will allow enterprises to import more because of foreign exchange rates and inflation," commented the head of a jewelry company who asked to remain unnamed.

On the global market yesterday, spot gold rose as high as $1,349.80 per ounce, its eighth record in the past two weeks.

The US dollar on black market yesterday also rose by VND170 to VND19,750-19,850 while bank exchange rates remained unchanged at VND19,500 per dollar. — VNS

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City targets 12% growth in 2011-2015

HCM CITY — Le Thanh Hai, secretary of the HCM City Party Committee, has said the city will try its best to attain an annual GDP growth rate of 12 per cent during the 2011-15 period.

In a political report delivered at the 9th Party Congress of HCM City, Hai said the city targeted an annual value-added growth of 13 per cent for its service sector; 11 per cent for the manufacturing sector and 5 per cent for agriculture.

Hai said in 2015, the service, industrial and agricultural sectors would account for 57, 42 and 1 per cent of the city's GDP, respectively.

Other targets contained in the report include maintaining the city's birth rate at less than 1.1 per cent per annum.

By the end of 2015, per capital income in the city will reach US$4,800 compared with $2,800 in 2010.

The city will create 120,000 new jobs every year compared with nearly 118,000 per year in the 2006-10 period.

Hai also said that by the end of 2015, skilled workers would make up 70 per cent of the city's workforce.

The number of families under the poverty line of VND12 million/person/year would drop to below 2 per cent of the city's population, he said.

By the end of the next five-year plan, the city's doctor-patient ratio would be 15 for every 10,000 residents.

The number of households in urban areas accessing clean water would reach 98 per cent.

The city targets building 39 million square metres of new housing, raising the per capita housing area in the city to 17 sq.m in 2015 from 14.3sq. m in 2009.

Green development

Hai said 100 per cent of solid waste and wastewater generated by city enterprises would be collected and treated by the end of the next five-year plan period, and all industrial parks and export processing zones without exception would have central wastewater treatment systems.

He added that the city would pay a lot of attention to envionmental protection by promoting green production and improving development quality.

It would also give priority to developing its service sectors including financial, banking, commerce, transportation, post and telecommunications, warehousing and port services.

Due attention would be paid to the development of the ITC, real estate and tourism industries, as well as the health, and education and training sectors, Hai said.

The city would focus on developing public transportation, including urban railway projects, expressways and beltways to connect the city with the Mekong Delta and other localities in the country, he added.

Authorities would spare no effort to curb traffic jams and prevent flooding. A programme covering 100sq.km had been mapped out to stop flooding in inner districts and to prevent flooding elsewhere.

The city would continue its efforts to create a level playing field for companies from different economic sectors and to assist small- and medium-sized enterprises to access loans, technology and new markets, Hai said. — VNS

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Honda ranks highest in sales satisfaction in Vietnam

HCMC – Honda ranks highest in sales satisfaction in Vietnam for the second consecutive year, according to the J.D.Power Asia Pacific after a 2010 Vietnam Sales Satisfaction Index Study released on October 1.

The study examines seven sectors that contribute to overall customer satisfaction with the purchase experience. In order of importance, they are delivery process, delivery timing, sales initiation, paperwork, salesperson, dealer facility, and deal.

Sales Satisfaction Index performance is reported as an index score based on a 1,000-point scale, where a higher overall Sales Satisfaction Index score indicates greater satisfaction with the new-vehicle sales and deliver process. Overall sales satisfaction averages 841 in 2010, an improvement of 15 points from 2009.

Among the six brands included in the study, Honda ranks highest in customer satisfaction with new-vehicle sales for a second consecutive year, achieving a score of 871. Honda performs particularly well in the sales initiation, dealer facility, salesperson, paperwork, delivery timing, and delivery process factors.

Meanwhile, Toyota with a score of 858 ranks second, followed by Hyundai with 847, Ford with 832, Kia (827), and GM Daewoo (800).

“The ability of leadership personnel to provide comprehensive explanation at or after delivery, such as the recommended maintenance schedule, warranty coverage, safety features and how to operate each feature, has a considerable impact on customer satisfaction,” said Rajeev Nair, senior manager of J.D. Power Asia Pacific in Singapore.

“This is especially important for new vehicle owners. A sizable proportion of owners, 65%, indicate they are the first-time new-vehicle buyers,” he noted in a statement.

Also according to the study, “there was a surge in vehicle sales during the final months of 2009, as customers rushed to buy vehicles before registration fees increased on January 1, 2010.”

The 2010 Vietnam Sales Satisfaction Index Study is based on responses from 793 new-vehicle owners who purchased their vehicles between October 2009 and June 2010. The study was fielded between May and July 2010.

Despite higher ranking, Honda still trails Toyota Motor Vietnam in sales.

In August, Toyota Motor Vietnam sold more than 2,440 units, down from the more than 2,950 units a year ago, while Honda Vietnam sales slumped 37% to nearly 230 units, according to the Vietnam Automobile Manufacturers Association (VAMA).

August sales of locally assembled automobiles in the country fell 18% year-on-year to about 8,670 and were down 700 units compared with a month earlier,

In the January-August period, VAMA members sold nearly 68,390 units, down 1% year-on-year. Toyota alone sold more than 18,980 units in the first eight months.

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Expo 2010 kicks off in city on Wednesday

Staff members of a local handicraft business arrange products for display at Expo 2010 in HCMC - Photo: Le Toan

HCMC – The International Furniture & Handicraft Fair and Exhibition 2010, or Expo 2010, starts on Wednesday at the HCMC Exhibition and Convention Center in Tan Binh District, helping local exporters build business links with foreign customers.

Expo 2010 features the latest goods at 700 booths of 300 domestic and foreign companies in the wood processing and handicraft sectors, the same numbers as last year’s event.

Tran Vinh Nhung, deputy director of the HCMC Department of Industry and Trade, an organizer of the 10th annual furniture and handicraft trade promotion event, said the exhibition would provide local exporters with the opportunity to reach out to more international clients.

Small and medium enterprises in the country that have little chance to attend international trade fairs can find it affordable to join a local trade show of international magnitude, Nhung said.

For the furniture and handicraft sectors, the Expo has since 2003 built a reputation among Vietnamese and international enterprises as a destination for local exporters and foreign importers.

The event helped to spur furniture and handicraft export revenue from US$590 million in 2001 to US$3.04 billion last year. The figure is expected to rise to US$4.5 billion this year.

Do Thang Hai, head of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, said the agency had promoted the event in renowned magazines such as Cens Furniture-China, Southeast Asia Furniture Manufacturers and Exporters Directory 2010, Furniture Singapore, Furniture On Wednesday and Heritage, as well as at exhibitions in the U.S., Germany and Japan.

The organizers of Expo 2010, just as last year, will introduce additional services for enterprises joining the program. Businesses, including those without a booth at the exhibition, can join the online fair Online Expo at www.hcmcexpo.com.vn.

The Online Expo 2010 has attracted over 800 woodwork and handicraft enterprises nationwide showcasing around 7,000 products, up 21% and 40% from last year respectively.

Minister of Industry and Trade Vu Huy Hoang has decided to reward 13 local organizations, including Saigon Times Group as the only media outlet in the country, for their outstanding contributions to promoting furniture and handicraft export over the past decade.

The award ceremony will take place at the inauguration of Expo 2010 on Wednesday.

The even is held annually by the Ministry of Industry and Trade, the HCMC government, the Vietnam Trade Promotion Agency and the city’s Department of Industry and Trade.

The Expo became a fair specializing in furniture and handicraft promotion in 2004.

Saigon Times Group has been actively cooperating with the city’s Department of Industry and Trade to promote the woodworking and handicraft industries at home and abroad over the years.

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Apparel sector enjoys robust export growth, good prices

Workers at a garment factory in HCMC. Increasing prices of garment and textile products have helped local producers boost exports - Photo: Le Toan

HCMC – The apparel industry has gained robust export growth of over 20% in the January-September period to earn US$8 billion due to good prices and ample orders, and is poised to fulfill its 2010 target of US$10.5 billion, sources said.

The Ministry of Industry and Trade said in a report on Monday that prices of garment and textile exports have increased by 15-20%, making life easier for garment exporters who have faced a surge in input costs including higher materials prices.

Furthermore, shipments to most markets except the slow-moving European market have recovered strongly, according to the report. In particular, the nine-month export revenue of the country’s garment and textile products to Korea had surged a staggering 80%, while that to Japan also increased by 15%.

Recognizing that apparel exports in the January-September period increased 20.6% year-on-year to US$8 billion, experts in the industry predicted that the target of US$10.5 billion in export revenue for this year will be highly obtainable.

The ministry said that although the labor cost in Vietnam is higher than in other nearby countries such as Bangladesh, Cambodia and Myanmar, many foreign buyers still prefer Vietnam’s products because the country’s garment producers can meet their choosy demands.

But many challenges are still ahead, according to the ministry.

These include the lack of laborers hindering garment enterprises from expanding production, the rising prices of imported materials and accessories for the industry, and especially the illegal import of garment and textile products from China stonewalling local enterprises from boosting their local market shares.

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Parkson to manage Saigon Paragon shopping mall

GS transfers property project in HCMC

The Paragon building in HCMC’s District 7. Parkson is in deal with Kim Cuong Corporation to manage the Saigon Paragon shopping mall at this building - Photo: Dinh Dung

HCMC – Parkson, widely known for the high-end shopping centers of the same name in the country, has struck a deal with a local firm to manage the Saigon Paragon shopping mall that is claimed to be poorly performing in HCMC’s District 7.

Le Hoai Anh, general director of Kim Cuong Corporation, told the Daily on the phone on Tuesday that the corporation had reached agreement with Parkson to manage the shopping section in the Paragon building in Phu My Hung town.

The local firm had decided to temporarily close the shopping mall on Nguyen Luong Bang Street in Phu My Hung after it had been operational for a year.

The 10-story building includes some 7,500 square meters for the shopping mall, some 9,000 square meters for office space, 4,000 square meters for an entertainment section and 3,000 square meters for a conference center.

Anh explained the temporary closure was due to the poor business performance in the shopping section due partly to ineffective management.

“We’ve decided to partner with the professional management firm Parkson to improve the building’s business performance,” Anh said, pinning hopes that Parkson’s good management will give a boost to the shopping mall.

However, tens of tenants in the shopping mall have voiced their anger as the building owner suddenly sent a notice of closing the shopping mall from early this month without informing them in due course, Tuoi Tre reported on Tuesday.

Some of them accused the building owner of violating agreements, unilaterally terminating contracts signed between the two sides. Others said that they received no information about the closure. The fact is that many tenants spent money for their store decoration and the closure will damage their turnover.

Anh told the Daily that the corporation had sent a notice of closure on August 14, advising tenants to temporarily stop their business for around two months so that the new management company could upgrade the building.

Anh said the corporation was negotiating with tenants to solve the problem, and expected to see the existing and new tenants to continue and start their business when the shopping mall section is up and running by December 15 this year.

In a related development, the HCMC government has issued a decision allowing property developer GS Saigon Development Company to transfer its property underway on Ly Thuong Kiet Street in HCMC’s District 10.

The project, one of the five property projects awarded to the company in return for the development of Tan Son Nhat-Binh Loi road, will be transferred to Phu Son Thuan Investment Construction Co., the city’s Department of Zoning and Architecture stated in its website.

The Xi Grand Court project is being developed on an area of around 18,000 square meters, with three blocks of condo buildings from 28 to 30 stories and a mix-use 25-story building.

According to the department, the project transfer is made because the property developer has faced difficulties as a result of the global economic downturn, and the transfer is to collect money for developing the road that it has pledged to pursue.

The department cites the city’s decision, saying all money from the deal will be used for the road development. The project’s site clearance has been done, and it is scheduled for completion by 2014.

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Danang to welcome more chartered flights

HCMC – The central city of Danang in the next four months will welcome several chartered flights bringing in travelers from Asian destinations namely Hong Kong, Taiwan and South Korea, a local tour operator said.

Cao Tri Dung, director of Vitours in Danang as a key local partner catering to such flights told the Daily that the first chartered flight from Hong Kong to Danang would start on November 11. During three months, visitors from this market will come in on every Wednesday and Saturday.

Similarly, frequent chartered flights will also come from Taiwan and South Korea. Dung said tourists from Taipei would fly to Danang every five days from December 26 for a period of three months, while travelers from Korea’s Seoul would come from January 1.

“In the high season, the city will receive around 1,000 passengers per week from the end of December to January. Our company will cater to half of the total,” Dung said.

Along with the inbound tours, the company is preparing for outbound tours to take local tourists to travel to Hong Kong, Taiwan and South Korea on these flights.

“We expect the outbound tour prices will be lower than normal because partners are focusing on inbound travelers and have booked all of planes’ inbound seats,” Dung said, hinting that outbound seats would be vacant.

Danang is receiving Chinese tourists two times per week on chartered flights.

The tour operator said more visitors are coming to the city because Danang is a new destination offering affordable prices to tourists. However, Danang is able to attract visitors from short-haul destinations in Asia only, he said.

“The city needs to get more connected via more international air routes to woo travelers especially people from long-haul markets like Europe. The chartered flight is the good start for the development,” Dung noted.

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