Local firms urged to further tap Cambodia market

Nguyen Dang Vuong of Dang Khoa Trade Promotion Co. introduces the upcoming industry exhibition in Cambodia at the press conference in HCMC last week - Photo: Mong Binh

HCMC - The HCMC Mechanical Association and Dang Khoa Trade Promotion Co. are working with the Cambodian government over an industry exhibition in Phnom Penh from December 15 to 18, and call for Vietnamese enterprises to further explore business opportunities in Cambodia.

Speaking at a news briefing in HCMC last week, Dang Khoa’s director Nguyen Dang Vuong said the Vietnam-Cambodia International Industry Exhibition would have some 350 booths divided into separate areas for enterprises from Cambodia, Vietnam and other parts of Asia including Japan, Singapore, China and Thailand.

Vuong said 100 booths of the total number would be reserved for Vietnamese enterprises to showcase their products at the event at Diamond Island Convention and Exhibition Center. The organizers target manufacturers of mechanical tools and equipment for light industries.

The Vietnamese-made goods to be on show include machines and equipment for mining, rubber processing, food and foodstuff, apparel, printing, plastic and packaging, electricity and electronics, fishing, building material, construction and farming.

Vuong said Vietnamese enterprises had gained a strong foothold of the consumer goods segment in Cambodia but had not tapped the great potential of the industrial segment in the neighboring market of Vietnam.

“The demand for industrial machines and equipment in Cambodia is enormous,” Vuong told the Daily after the news briefing. He added companies from all over Cambodia would come to the exhibition to find suppliers of machinery and equipment.

Pham Ngoc Tuan of the event’s organizing committee said there would be product introduction sessions as part of the exhibition on December 16.

Nhan Hanh Nhon, managing director of OSC First Holidays, said this local travel firm had designed packages for enterprises to promote their products at and outside the four-day event with prices starting from US$188 per person.

Nhon said that OSC First Holidays would also arrange a caravan tour for business people to drive their cars promoting the image and products of their companies during the trip from Vietnam to the exhibition and other places of Cambodia.

According to Vietnam’s Ministry of Trade and Industry, trade with Cambodia has increased by 30% year-on-year over the past decade, and machines are among the products on high demand in the neighboring country.

The ministry expects Vietnamese exports to Cambodia this year to rise to US$1.6 billion from US$1.1 billion in 2009, based on the consignments worth US$728 million to the neighboring market in the first half of this year.

Vietnamese companies have pledged some US$900 million to invest in over 60 projects in the farming, mining, finance, energy and telecommunications sectors in Cambodia.

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Jetstar Pacific expands aircraft fleet to seven

HCMC - Jetstar Pacific increased its aircraft fleet to seven for domestic services on Sunday when the local low-cost carrier took delivery of one new Airbus A320 at Tan Son Nhat International Airport.

The new 180-seat plane is part of Jetstar Pacific’s plan to gradually replace its Boeing B737-400s and expand its all Airbus aircraft fleet to 15 by 2014. The carrier now has five Boeing B737-400s and two Airbus of the type.

Jetstar Pacific said the second Airbus A320 had registration number VNA198 and would be put into service on October 20. It will enable the second largest carrier in Vietnam after Vietnam Airlines to operate more than 40 daily domestic flights to HCMC, Hanoi, Danang, Hue, Vinh and Hai Phong.

Le Song Lai, chief executive officer of Jetstar Pacific, said the new Airbus aircraft would help the airline save a lot of operation and maintenance costs as well as increase domestic frequencies ahead of the upcoming Lunar New Year, or Tet, early next year.

Jetstar Pacific told the Daily on Sunday that air tickets had almost sold out for certain flights from HCMC to Vinh, Hue and Haiphong from the 26th to 30th of the twelfth lunar month and the 6th to 8th of the first lunar month on the opposite directions.

Jetstar Pacific has plans to operate more domestic flights before and during the Lunar New Year, which falls on the first day of the lunar year, or in February 2011.

Vietnam Airlines is mapping out plans for more flights during the Lunar New Year as fares for the flagship carrier’s flights on certain routes during this special occasion are becoming scarce.

Last Tet, Vietnam Airlines operated nearly 1,000 more domestic flights from HCMC to Hanoi and central Vietnam due to stronger demand for air travel.

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Citibank looks to local incorporation

HCMC – Citibank, or Citi, intends to apply for a local incorporation license to set up a foreign-owned unit in Vietnam, said Brett Krause, Citibank country officer for Vietnam.

The recent launch of products and services for individual customers in Vietnam is one of the American bank’s moves toward this target. The bank last Friday expanded its retail banking operations in the country by launching Citigold, a wealth management service for high-income customers in Hanoi and neighboring provinces after one year of deploying the service in HCMC.

Citigold aims at individual customers maintaining assets at least US$50,000 at the bank. Shirish Apte, chief executive officer of Citibank Asia Pacific, said in a statement, “Vietnam represents a promising market in what is an exceptionally important region for Citi, and we are committed to growing our franchise here.”

Krause also said in the statement, “This launch is just the start of Citi’s expansion plans in Vietnam. Over the next few months, Citi will progressively add more best-in-class products and services, increase the number of touch points for our customers, and with regulatory approval, cement its commitment to Vietnam by locally incorporating a banking subsidiary.”

Citibank now has two branches in Vietnam, with one in Hanoi and one in HCMC, offering a wide range of services in Vietnam including retail banking, corporate banking, investment banking, and global transaction services.

At this time, there are five 100% foreign-owned banks operational in Vietnam: HSBC, Standard Chartered, ANZ, Hong Leong, and Shinhan.

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Vietnam Airlines to change terminal in Paris

HCMC - Vietnam Airlines as a SkyTeam will land and take off at Terminal 2E at Charles de Gaulle Airport in Paris from October 31 to harmonize with the operations of other SkyTeam member carriers.

Vietnam Airlines’ forthcoming move to the new terminal from Terminal 2C of the airport is also aimed at providing passengers with the opportunity to use a better waiting hall and kiosks for completing check-in procedures.

Pham Viet Thanh, deputy general director of Vietnam Airlines, clarified the spacious and well-furbished Terminal 2E would offer passengers new levels of comfort and convenience when traveling to and from Charles de Gaulle or transiting at this European airport before heading to other destinations.

Vietnam Airlines’ holders of business-class tickets and members of its Golden Lotus program will be allowed to enjoy services at the business lounge of Air France at Terminal 2E from that day.

In addition to Air France and Vietnam Airlines, other members of SkyTeam having their flights at Terminal 2E are Royal Dutch Airlines, Delta Airlines, Aeroflot, Korean Air, China Southern Airlines and Aero Mexico.

Vietnam Airlines spent heavily improving its services and opening more domestic and international flights before it became a full member of the world’s second largest global airline network after Star Alliance on June 10 this year. The airline is expanding its aircraft fleet to 70 by the end of this year to 115 by 2015 and 165 by 2020.

Vietnam Airlines operates more than 290 daily flights to 20 domestic and 26 international destinations. At present, the national flag carrier uses wide-body Boeing 777 aircraft for eight flights weekly from Vietnam to Paris.

Air France will begin its three non-stop services between Paris and HCMC every week from November 2 instead of flying via Bangkok at the moment to meet rising demand for travel to and from Vietnam.

Air France’s 747-400 aircraft will leave Tan Son Nhat Airport for Charles de Gaulle Airport in the evening of Wednesdays, Fridays and Sundays. The opposite services will depart from the European airport on Tuesdays, Thursdays and Saturdays and land on Tan Son Nhat at 4:55 p.m. the next days.

From November, Air France will also have two weekly code-share services from HCMC and five frequencies from Hanoi, and these non-stop flights will be operated by Vietnam Airlines under an agreement between the two carriers.

Vietnam Airlines’ non-stop services will depart from HCMC on Tuesday and Saturday nights and from Noi Bai Airport in Hanoi at 11:55 p.m. on Tuesdays, Wednesdays, Fridays, Saturdays and Sundays for Charles de Gaulle.

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Brokers see slight rebound this week

HCMC – Although the local market suffered a losing week due to low liquidity last week, securities companies predicted the VN-Index would bounce back slightly as company earnings reports are out this week.

With three rising and two falling sessions, the VN-Index lost 0.87 point, or 0.19%, from the previous week to 458.39. Liquidity plunged deeply as the daily trading volume averaged at 25.2 million shares worth VND664 billion, down 33.6% and 31.8% from a week earlier respectively.

APEC Securities Co. said listed enterprises are expected to report good earnings results this week and this will help improve investor sentiment after a couple of weeks of dull trading. This is seen as an opportunity for long-term investors to buy stocks with positive financial outlooks as share prices have fallen to attractive levels.

“The market, however, will not recover strongly this week as most investors are still cautious. The VN-Index may move within the range of 445 and 465 points given flat trading in the coming time before entering into a sustainable rally,” APEC said.

Fiachra Mac Cana, managing director of HCMC Securities Corp., said last week the market saw a couple of trends being confirmed such as the appetite of foreign investors for a number of large cap stocks and the inactivity of the domestic investment community that seemed to be paralyzed by the overhang of a number of factors. The gold price rally certainly drew some attention away from equity markets, while the renewed weakening of the dong against the U.S. dollar on the unofficial market forced people to rush to the greenback as a safe haven.

“All these factors seem to have created an environment that resembles a bear market, but if we look over a longer period we have to conclude that we are just still in the correction phase that started in October last year,” Mac Cana said.

“The short-term strategy of the domestic investment community makes it look like we are in a correction on the way down, while from a non-emotional perspective it seems more likely that we are in a correction or consolidation on the way up.

“The difficulty here is, of course, the timing of the end of the consolidation. It could easily take a number of months for the market to digest supply issues, higher average monthly inflation and the upcoming political event early next year.”

Vietnam International Securities Co. (VIS) said investors were pessimistic due to lack of positive changes of the international and domestic economy last week. Foreign participation turned lukewarm as the investors were net buyers to the tune of 4.7 million shares worth VND282 billion, falling 3.8 times and 2.5 times from the previous week respectively.

“Liquidity will be the biggest challenge for the market this week. However, business results of listed firms will help support the market rebound as positive reports will draw the attention of investors,” VIS said.

Meanwhile, the Hanoi market shed two points, or 1.64%, from the previous week, to close at 119.69. The market’s daily trading volume averaged at 18.8 million shares worth VND421 billion, both down around 18% from a week earlier. The market is predicted to recover slightly this week.

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Seminar discusses business strategies held in Hanoi

Recruiting firm Navigos Group and the Associations of Chartered Certified Accountants (ACCA) Tuesday held a seminar discussing strategies for business growth in Melia Hotel, Hanoi.

The event, joined by 200 CEOs, CFOs, human resource managers from domestic and multinational companies and guest speakers from ANZ, Aon, Ford Vietnam and the hosts, focuses on the importance of qualified accounting/finance professionals to an organization’s financial management, and the greater strategic role being assumed by accounting/finance professionals.

According to recent research carried out by Navigos Group, accounting/finance ranked third amongst the top five functions with the highest demand for executive positions during the first three quarters of 2010.

Of the total demand for accounting/finance manpower, 25 percent was for finance managers and directors, 4 percent for finance controllers and demand for chief accountants and accountants was a substantial 38 percent and 33 percent respectively.

When segmented by industry requirements, the research revealed that demand for accounting/finance manpower was highest in the banking/finance sector at 46 percent, followed by 32 percent in trading/services and 22 percent in manufacturing/engineering/construction.

“The most recent monetary downturn was witness to the growing influence and control that CFOs and finance leaders have in guiding businesses through troubled times,” Nguyen Thi Van Anh, Managing Director of Navigos Group, said.

“No longer just bookkeepers for their firms, accounting and finance professionals are regarded as business partners, skilled in areas of divesting and restructuring businesses, developing financial models and analyzing financial forecasts, as well as developing back office transaction processes that support cash flow and drive efficiencies in so many areas,” she added.

“Changes in the roles of professional accountants and the finance function itself are partly a consequence of the downturn, and partly an outcome of a growing recognition of the value that the finance function and professional accountants can add to an organization,” Le Thi Hong Len, Country Manager of ACCA Vietnam, said.

ACCA found in its March survey in 105 countries that nearly 70 percent of respondents considered it very important for organizations to have a formal program to develop the best financial talent and 75 percent suggested that talent management was an important component in addressing financial skills shortages prevalent in many organizations.

The ACCA survey also indicated that 76 percent of respondents believed the primary objective of a talent management program is to retain key staff, while 60 percent felt another important objective is to attract and recruit candidates with promising potential.

“Since late 2008, the recession has provided the finance function with an unparalleled opportunity to shape and influence business. However, this opportunity can only be grasped if organizations and finance leaders invest in the skills and capabilities required to develop, manage and protect the integrity of these vital functions,” Reza Ali, Head of Business Development, Emerging Markets, Asia, said.

“Talent management practices for finance professionals need further development and must include elements for talent identification, development, deployment and retention,” he added.

In a related survey conducted by Navigos Group in September 2010, 41 percent of the more than 3,000 polled said that a poor work environment is the number one reason why employees leave a company. Unprofessional line-managers and inadequate remuneration packages were the following reasons with 37 percent and 22 percent, respectively.

Conversely, another Navigos Group survey revealed that 48 percent of respondents ranked development opportunities as the most important criteria for accepting a job offer and employer brand was regarded as the second most determining factor with 30 percent of the vote.

The combined results of these surveys point towards a strong confidence in the ability of a talent management program to contribute significantly to long term organizational growth and development.

Consensus amongst many in attendance is that the seminar provided an excellent opportunity for panelists and members of the audience to exchange information, ideas, and experiences across a broad spectrum of industries.

So, each must determine the role accounting/finance talent will play in their organization and how best to implement a talent management program that will enable them to find the right fit, as well as develop and retain the talent that will consistently contribute to organizational objectives.

A second seminar on the same topic, “Accounting/Finance Talent in 2010 – the Foundation for Growth”, will be held Thursday at the New World Hotel in Ho Chi Minh City with the participation of more than 200 client guests.

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BP sells Vietnam energy assets to Russian group

Russia’s third largest oil and gas company TNK-BP announced on
October 18 that the company had reached an agreement to buy assets worth
about 1.8 billion USD from British oil company BP in Vietnam and
Venezuela.

The deal is part of a series of sales BP is making to help pay for oil
spill damages in the Gulf of Mexico. It will be financed entirely by
TNK-BP, which is owned 50-50 by BP and a group of Russian tycoons.

Under the deal, in Venezuela, TNK-BP will buy BP’s 16.7 percent stake
of PetroMonagas SA and 26.7 percent stake of Boqueron SA.

In Vietnam, the company will acquire BP’s 35 percent of stake in a
upstream offshore gas project including Lan Tay and Lan Do gas fields, a
32.7 percent stake in Nam Con Son Pipeline and Terminal, and a 33.3
percent stake in Phu My 3 power plant.

“The
acquisitions in Venezuela and Vietnam mark a milestone in TNK-BP's
strategic expansion in the global energy market,” TNK-BP CEO Mikhail
Fridman said. He also expressed his company’s interest in buying BP
assets in Algeria./.

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