IFC to invest in Vietnam bank

The International Finance Corporation, a member of the World Bank Group, will invest in the Vietnam Joint Stock Bank for Industry and Commerce or Vietinbank, according to the corporation.

The investment is still subject to approval by both parties and the corporation’s Board of Executive Directors, according to the statement. However, on Sunday (Oct 10), both partners signed a memorandum of understanding on the investment.

Local newspapers said the corporation would spend US$190 million to acquire 10 percent of what used to be the second-largest state-owned financial institution in the country. The corporation plans to sink VND26,000 billion into the new venture by the end of the year.

An official from the corporation confirmed the acquisition agreement in the MOU and said both partners were negotiating the final details of the investment.

In return for the investment, the corporation will grant a long term loan to the bank which will improve access to finance for small and medium enterprises and support the equitization of the financial and banking sector in Vietnam.

The 10-year loan will amount to $110 million at LIBOR, plus 1.5 percent interest a year, according to the newspapers. LIBOR, or the interest rate at which banks can borrow funds within the English system, is fixed on a daily basis by the British Bankers' Association.

“By helping Vietinbank build up its capacity and strengthen its products and services, IFC will assist the bank in reaching more small and medium enterprises through its nationwide network,” said Simon Andrews, the corporation’s Regional Manager for Vietnam, Cambodia, Laos, and Thailand, in the statement.

The corporation will help the local bank, expand its SME loan portfolio, thus supporting job creation and private sector growth. Vietinbank plans to sell off another 15 percent of its shares later this year.

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IFC to invest in Vietnam bank

The International Finance Corporation, a member of the World Bank Group, will invest in the Vietnam Joint Stock Bank for Industry and Commerce or Vietinbank, according to the corporation.

The investment is still subject to approval by both parties and the corporation’s Board of Executive Directors, according to the statement. However, on Sunday (Oct 10), both partners signed a memorandum of understanding on the investment.

Local newspapers said the corporation would spend US$190 million to acquire 10 percent of what used to be the second-largest state-owned financial institution in the country. The corporation plans to sink VND26,000 billion into the new venture by the end of the year.

An official from the corporation confirmed the acquisition agreement in the MOU and said both partners were negotiating the final details of the investment.

In return for the investment, the corporation will grant a long term loan to the bank which will improve access to finance for small and medium enterprises and support the equitization of the financial and banking sector in Vietnam.

The 10-year loan will amount to $110 million at LIBOR, plus 1.5 percent interest a year, according to the newspapers. LIBOR, or the interest rate at which banks can borrow funds within the English system, is fixed on a daily basis by the British Bankers' Association.

“By helping Vietinbank build up its capacity and strengthen its products and services, IFC will assist the bank in reaching more small and medium enterprises through its nationwide network,” said Simon Andrews, the corporation’s Regional Manager for Vietnam, Cambodia, Laos, and Thailand, in the statement.

The corporation will help the local bank, expand its SME loan portfolio, thus supporting job creation and private sector growth. Vietinbank plans to sell off another 15 percent of its shares later this year.

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Breakthrough idea for BMW Vietnam

When Riverorchid was approached by BMW Euro Auto for a project to enhance the image of the BMW 3 series in Vietnam, the Riverorchid team was determined to go back with something very different.

“We knew if we took a conventional approach, it would be lost amongst the clutter. The budget was modest so the idea needed to be big. We came up with an innovative concept designed to get people more involved with the sales message,” said Ian Brown, Executive Creative Director of Riverorchid Vietnam.

The result was a standout piece of ambient advertising positioned in high traffic areas in Ho Chi Minh City and Hanoi targeting the business community. It uses a mirror where you would normally see the driver. Look into the mirror and you can see yourself in the driver’s seat.

The concept has been an instant hit, and was especially well received by Ms. Nguyen Vu Thanh Thao, Head of Marketing for BMW Euro Auto.

“It was really impressive and I agreed to go ahead with that concept the first time Riverorchid presented it to me. This ‘traveling billboard’ will be one of the ‘best practice’ examples that I will share with my BMW colleagues at the next conference for importer marketers.  I believe that everybody will be “wowed” by it.”

The concept will also be seen on a moving platform that will travel around Hanoi with a promotional team to give out relevant information.

It’s one of two innovative new media ideas from the Riverorchid team. The next is a performance BMW driver’s seat found in top cafes and coffee houses around town. So look out for it.

Riverorchid Vietnam is part of the Riverorchid Group, an independent, Indochinese communications network based in Vietnam, Cambodia, Laos, Myanmar and Thailand. In Vietnam, services include above-the-line advertising, graphic design and brand identity, brand activation and events, and public relations.

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GBA calls for members to take on green program

HCMC - The German Business Association (GBA) in Vietnam said on Tuesday it is working with the World Wide Fund for Nature Vietnam (WWF Vietnam) to support and promote the WWF Green Office program to all of its member firms.

This announcement came less than two months after Tanner Vietnam Ltd. was given the WWF Green Office certificate for its successful implementation of an environmental management plan in the workplace. The German business is committed to environmental protection by developing a staff-rewards program for the best employees in green practices.

The company specializing in professional technical documentation has taken proactive actions to cut consumption of electricity by 16%, paper by up to 50% and water by 12%, as well as has more staff using green transportation means to work.

Tanner Vietnam is one of the members of the GBA in Vietnam, whose membership is more than 160. The GBA said it was the first business association in Vietnam to support the WWF Green Office program publicly.

Alexander Bischoff, chairman of the GBA in Vietnam, said support for the program would improve environmental awareness and energy savings amongst and beyond the association’s member corporations.

“Protecting the environment, especially in Vietnam, is no longer a private task but a responsibility for all the society, and therefore its corporations and businesses,” Bischoff said in a statement.

Bischoff quoted the World Bank’s calculations as saying that Vietnam may incur a loss of up to 5.5% of gross domestic product due to environmental pollution and wasted energy each year, and has to spend around US$780 million yearly on community health problems aggravated by pollution-induced diseases.

Bischoff noted some GBA member corporations had succeeded in operating as WWF Green Offices by reducing their consumption of electricity, paper and water remarkably and encouraging their staff to use sustainable transport to commute to work.

“This shows that the WWF Green Office program benefits the corporations, while at the same time creates environmental awareness amongst employees, who transfer their knowledge into their homes, and to family and friends,” Bischoff said.

WWF Vietnam Green Office Coordinator Tabitha Carvan said many GBA member corporations and other business community members would make a difference to the environment in Vietnam.

Initiated by WWF Finland in 1997, the WWF Green Office program helps businesses and other organizations make simple but practical changes to their office environment and to employees’ behaviors to contribute to mitigating the effects of climate change.

Current Green Office Vietnam members include the Finnish embassy, the British embassy and consulate general, and four companies – Tanner Vietnam, Conforama, OUT-2 Design and Toyota Motors Vietnam.

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GBA calls for members to take on green program

HCMC - The German Business Association (GBA) in Vietnam said on Tuesday it is working with the World Wide Fund for Nature Vietnam (WWF Vietnam) to support and promote the WWF Green Office program to all of its member firms.

This announcement came less than two months after Tanner Vietnam Ltd. was given the WWF Green Office certificate for its successful implementation of an environmental management plan in the workplace. The German business is committed to environmental protection by developing a staff-rewards program for the best employees in green practices.

The company specializing in professional technical documentation has taken proactive actions to cut consumption of electricity by 16%, paper by up to 50% and water by 12%, as well as has more staff using green transportation means to work.

Tanner Vietnam is one of the members of the GBA in Vietnam, whose membership is more than 160. The GBA said it was the first business association in Vietnam to support the WWF Green Office program publicly.

Alexander Bischoff, chairman of the GBA in Vietnam, said support for the program would improve environmental awareness and energy savings amongst and beyond the association’s member corporations.

“Protecting the environment, especially in Vietnam, is no longer a private task but a responsibility for all the society, and therefore its corporations and businesses,” Bischoff said in a statement.

Bischoff quoted the World Bank’s calculations as saying that Vietnam may incur a loss of up to 5.5% of gross domestic product due to environmental pollution and wasted energy each year, and has to spend around US$780 million yearly on community health problems aggravated by pollution-induced diseases.

Bischoff noted some GBA member corporations had succeeded in operating as WWF Green Offices by reducing their consumption of electricity, paper and water remarkably and encouraging their staff to use sustainable transport to commute to work.

“This shows that the WWF Green Office program benefits the corporations, while at the same time creates environmental awareness amongst employees, who transfer their knowledge into their homes, and to family and friends,” Bischoff said.

WWF Vietnam Green Office Coordinator Tabitha Carvan said many GBA member corporations and other business community members would make a difference to the environment in Vietnam.

Initiated by WWF Finland in 1997, the WWF Green Office program helps businesses and other organizations make simple but practical changes to their office environment and to employees’ behaviors to contribute to mitigating the effects of climate change.

Current Green Office Vietnam members include the Finnish embassy, the British embassy and consulate general, and four companies – Tanner Vietnam, Conforama, OUT-2 Design and Toyota Motors Vietnam.

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SHTP licenses two R&D projects

(From right) Le Thai Hy (2nd), head of SHTP management board, awards an investment certificate to TMA Solutions on Tuesday - Photo: Que Minh

HCMC – Saigon Hi-Tech Park (SHTP) Management Board on Tuesday awarded two investment certificates for building Research and Development (R&D) facilities to two local firms in the park in District 9.

TMA Solutions, a giant software outsourcing company, will open its ICT research and development center in the park. The center will be located in SHTP’s Science City, which is the functional zone exclusively reserved for high-tech research and development, training and incubation activities.

With the total investment of US$5 million, TMA’s project will be divided into three phases of development, with three research laboratories on Data Network and New Generation Network (NGN), Embedded System and other new technologies closely following the global development trend.

Besides in-house R&D projects, TMA plans to set up joint ventures with both local and foreign partners such as Novitell (Denmark), Exceed Global (Australia), Astonis (U.S.) and Viettel (Vietnam) to do the R&D of new products, according to the park in a statement.

Established in 1997, TMA is now the largest company in HCMC and the second in Vietnam in terms of software services and solutions, technical services and ICT training. The company has more than 900 engineers, six laboratories and five overseas offices, and has recorded an annual growth rate of 50% during the last 13 years.

The other R&D project licensed on Tuesday is invested by the Southern Construction Materials Institute under of the Ministry of Construction. The VND30 billion project will research and develop new materials for construction in HCMC and the southern area.

SHTP is now home to 44 local and foreign hi-tech companies, with a total investment commitment of more than US$1.84 billion, creating more than 10,000 skilled jobs, contributing nearly US$640 million in export revenue to the city.

SHTP expects foreign and domestic investment capital flow this year to hit US$150 million. The park is focusing on attracting high-technology projects in microelectronics, IT, telecoms, research and development, and the service sector.

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Best Carings electronics store chain changes hands

HCMC - Ben Thanh Trading and Marketing Co., owner of Best Carings electronics store chain in Vietnam under a franchise agreement with Japan’s Best Denki, has transferred its chain to another local firm named Mitsustar.

Under the transfer agreement, the chain including three Best Carings electronics goods stores in Hanoi, Can Tho and HCMC is handed over to Hanoi-based Vietnam Electronics & Refrigeration Technology Corporation, or Mitsustar. Ben Thanh will focus on electronics wholesaling.

Best Carings electronics goods store chain has been operational since 2004 as the strategic franchising cooperation between Ben Thanh and Japan’s Best Denki.

Ben Thanh affirmed that the chain’s business situation in the last years was very well. In 2009 and 2010, Retail Asia, a famous magazine in Singapore, selected Best Carings electronics goods stores as one of the ten leading retailers in Vietnam and one of the top 500 Asia-Pacific retail companies, according to the company.

In reality, Ben Thanh is also owner of Tara Joint Stock Co. specializing in electronics wholesale. After a long time running Best Carings, the management has realized that there exist some conflicts of interest when trading both brands, so they decided to transfer all stakes of Best Carings to the new owner to focus more on developing the Tara Joint Stock Co.

This means that Best Denki, one of the five leading electronic retail corporations in Japan, will no longer cooperate with Ben Thanh to open more Best Carings in Vietnam as per the two companies’ initial plan.

Previously, Ben Thanh and Best Denki had plans to cooperate to set up a joint venture to expand the store chain in Vietnam. However, during the process to establish the joint venture, the two partners has met difficulties.

For example, the foreign partner required Ben Thanh to step up the search for good locations in big cities to open more stores covering at least 2,500 square meters each, which is quite difficult in HCMC or Hanoi, the local company said.

Besides, under the WTO commitments, international retailers will face difficulties in expanding their operations after their first outlet. The ENT (Economic Needs Tests) principle will be considered by authorities when licensing the second retail point of foreign investors.

This means Vietnam will have the right to consider licensing based on three criteria: the number of retailers in a locality, the stability of the market and the scale of the residential neighborhood.

Experts said that to date, there is no legal document giving clear instructions on how to define ‘economic needs’ and interpret the three criteria. The term ‘retail point’ has also not been clearly defined.

The lack of legal documents and definitions of concepts is believed to create difficulties for enterprises when making business decisions, and for state management agencies themselves in management work.

Previously, Ben Thanh has plans to open ten shops around the country by 2012.

Ben Thanh has deployed Best Denki management technology, marketing skills and customer services in its new store chain. As a member of Best Denki, Best Carings was not only equipped with retailing skills and experiences, but also benefited from suppliers who are long-term partners of Best Denki.

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