Steel trade decreases on global market

Industry insiders have reported the local steel sales dropped 41 percent in September thanks to the world market.

"September's decline was not expected. We forecast that the price of steel ingots would go through the US$600 per tonne mark but instead it dropped to US$580," said the Vietnam Steel Association's Deputy Chairman Nguyen Tien Nghi.

Steel sales in September surprised experts by dropping 41 percent over August to 283,000 tonnes.

Nghi added that due to the low price of pig iron on the world market, Vietnamese consumers are still waiting for further reductions.

Because of this, the decline has continued into the first few days of this month.

Meanwhile, he added, traders have been selling off their steel stocks.

Due to the situation, many companies and agencies have cut prices by roughly VND300,000 ($15) per tonne to stimulate the market.

According to a report by the association, the price, excluding value-added tax, is now standing at about VND13.6 million (US$697 ) per tonne.

The association said the situation would steady itself in the second half of October, as the rainy season ends and demand for construction steel picks up.

"In addition, when steel stocks are sold out, traders will be forced to renew their supplies and consumption will increase," Nghi said.

He added that demand on the world market is also increasing which would help push the price back up.

Talking about sales for the whole year, Nghi optimistically said that they would increase by 15 percent over last year.

"Because of high consumption in previous months, the dip in September will not affect sales for the whole year," he explained.

Last year, the country consumed nearly 4.2 million tonnes of steel.

Worldwide steel production may plateau over the next five years as a result of environmental pressures and smaller demand increases.

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Southern metro set to welcome 3.3 million visitors

In the first nine months of 2010, the number of international arrivals to Ho Chi Minh City reached 2.2 million, representing a year-on-year increase of 13 percent.

The city expects to receive at least 3.3 million foreign visitors in 2011, earning VND48 trillion (US$2.4 billion), according to the municipal Department of Culture, Sports and Tourism.

At this growth rate, the southern economic hub hopes to welcome the 3 millionth visitor in mid-December this year.

HCMC targets 2.8 million foreign tourists this year but the real figure may exceed 3 million.

The city’s tourism sector accounts for 60 percent of international arrivals to Vietnam , 45 percent of the country’s tourism revenues and 5.5 percent of its GDP.

Vietnam has organised tourism promotion programmes and cultural exchanges in China, Japan, the RoK and Cambodia in addition to roadshows in Australia , Norway and West European countries, they added.

The nation has targeted 4.5-4.6 million foreign tourists this year, a year-on-year increase of more than 17 percent.

Travel agencies will continue with tourism promotion and sales discount programmes in August and September in a number of key tourism cities and provinces.

Hanoi plans to organise tours to a number of ancient Vietnamese capitals, museums and homestays to attract more tourists to the city.

The Vietnamese tourism authority said it expected about 1 million Chinese holidaymakers to visit the country this year, double last year's number.

VNAT attributed the rise to a series of promotional campaigns run in major Chinese cities over the last two years.

the number of Chinese holidaymakers visiting the south of the country was rising by 25 percent annually.

Travel firms have also reported significant growth in visitor numbers from China. Lien Bang Travelink said the number of tourists using the company's services had increased by 30 percent since the beginning of the year compared to the same period in 2009.

However Vietnam could not compete with regional countries such as Bangkok or Singapore in terms of shopping malls or medical facilities.

 

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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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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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