Wednesday, October 13, 2010

PetroVietnam Gas to raise $301 mln in share sale

PetroVietnam Gas to raise $301 mln in share salePetroVietnam Gas Corp., a unit of Vietnam Oil & Gas Group, plans to raise at least VND5.87 trillion (US$301 million) in an initial share sale that may take place next month, General Director Do Khang Ninh said in an interview.

The company will sell 189.5 million shares, or a 10 percent stake, with a minimum bid of VND31,000 a share, Ninh said in a telephone interview Monday. Ho Chi Minh City-based PetroVietnam Gas will also sell a stake of about 15 percent to strategic investors, Ninh said. The company is still in the process of finding these partners, Ninh said.

“After the share sale we will gauge how the stock market is doing and choose a timing for the listing that is beneficial to shareholders,” Ninh said. PetroVietnam Gas will probably be listed on the Ho Chi Minh City Stock Exchange, the country’s main bourse, a year after the share sale, according to a statement filed on the company’s website.

The benchmark VN Index gained 1.6 percent to 466 at the 11 a.m. close, the highest since Aug. 9. The gauge dropped as much as 23 percent from its May 6 peak through Aug. 25, exceeding the 20 percent drop which analysts define as a bear market, as the third devaluation of the dong since November spurred concern the government would add to measures to plug the nation’s deficit.

PetroVietnam Gas, which supplies fuel to produce 40 percent of Vietnam’s electrical output and 30 percent of the nation’s fertilizer, expects revenue to reach VND31 trillion this year from VND28.3 trillion in 2009, according to the statement on its website. Net income will be about VND3 trillion, down from last year’s profit of VND3.2 trillion.

Related Articles

Binh Trieu 1 Bridge reopened to traffic

Binh Trieu 1 Bridge is reopened to traffic with Binh Trieu 2 Bridge seen in the background - Photo: Anh Quan
HCMC – HCMC Infrastructure Investment Co. (CII) last week reopened Binh Trieu 1 Bridge to all traffic, doing away with the serious traffic congestion often seen during the upgrade of the bridge.

The bridge had been widened to three lanes from the previous two and its capacity had been increased to allow trucks of 30 tons rather than 16 tons to cross.

Duong Quang Chau, deputy director for investment of CII, said that after the upgrade, which lasted one year, the bridge was open to all kinds of traffic.

The upgrade cost just VND83.6 billion, he said, adding if a new bridge was built, the cost would amount to around VND300 billion.

Contractor Freyssinet Vietnam provides a 30-year warranty for Binh Trieu 1 Bridge.

CII on Sunday began toll collection on Binh Trieu 2 Bridge, which runs in parallel with Binh Trieu 1. The company suspended toll collection for fear that it would worsen traffic jams during the upgrade of Binh Trieu 1.

It is Freyssinet which will be responsible for repairing the Saigon Bridge in October. The HCMC government has chosen Freyssinet Vietnam for the repair project which costs an estimated VND44 billion.

The bridge, which is the main link between the city center and Hanoi Highway and northern provinces, is in bad need of repair as about 40,000 container trucks use it everyday.

Last October, the local government repaired a hole that suddenly appeared in the bridge surface.

Related Articles

UNWTO: Vietnam a top growth tourist destination

International tourists visit a perfume store at a commercial center in HCMC - Photo: Dao Loan
HCMC - The United Nations World Tourism Organization (UNWTO) has put Vietnam in the list of the top Asian countries with strong tourism performance in the first half of this year.

UNWTO said in a statement about global tourism that international tourist arrivals are estimated to have grown by 7% in the first six months. Asia Pacific with the growth of 14% and the Middle East with 20% led growth in the global tourism industry in the period.

The organization said Vietnam and Myanmar had the same growth of 35%, ranking the two countries as particular countries which had strong results in the period, behind Sri Lanka and Japan.

“Asia in particular is experiencing a very dynamic rebound, with strong results from Sri Lanka (49%), Japan (36%), Vietnam (35%), Myanmar (35%), Hong Kong (China) (23%), Macao (China) (23%) and Singapore (23%),” says the report.

UNWTO said Asia had once again shown a strong capacity for recovery. International tourism has been a driving force in the region, currently the second most visited region in the world with 181 million international tourist arrivals, or 21% of the world total.

However, the organization still maintained its forecast that the global tourism sees continued growth but risks remain. “Although we are witnessing a clear recovery in international tourism, we must remain cautious,” UNWTO Secretary-General Taleb Rifai said in the statement.

Nguyen Van Tuan, head of the Vietnam National Administration of Tourism, earlier told the Daily that local travel remained a key pillar for the country’s tourism, with up to 17 million Vietnamese people traveling in the first half, representing over two-thirds of the figure for all of 2009.

Growth in international visitor arrivals was 32.6% in the first half, with more than 2.51 million foreign visitors coming to the country. The number reached nearly 3.35 million in the first eight months, up 35.2% year-on-year.

Related Articles

Tuesday, October 12, 2010

Business urged to join FTA talks

HCMC - Business associations and companies can contribute to Vietnam’s negotiations over free trade agreements (FTA) with partners, said economic experts last week.

“Enterprises will be those impacted by free trade agreements, so business associations will be given a part to play in the process of FTA negotiations in the near future,” said Vo Tri Thanh, vice president of the Central Institute for Economic Management, at a workshop on EU-Vietnam Multilateral Trade Assistance Project III’s research.

The research has been done to assess how free trade agreements will impact on Vietnam’s economy via trade statistics. It is aimed at informing in advance Vietnam’s trade negotiators and policymakers of probable consequences of FTAs.

The research also identifies the impact and efficiency of several FTAs, including ASEAN-Korea, ASEAN-India, ASEAN-Australia-New Zealand, AFTA (ASEAN Free Trade Area), ASEAN-China and ASEAN-Japan. Although the business community will be affected much by FTAs, it seems to be not consulted in the negotiation process. Many enterprises do not have in-depth knowledge about FTAs and commitments in them, Thanh added. Therefore, the workshop was believed to help businesses.

Bui Truong Giang of the Vietnam Institute of Economics said the role of trade associations was very important since they represented enterprises in many industries but so far their voice had been little heard.

Experts said domestic enterprises should also gain access to information to know how FTAs would affect so as to choose key markets for their exports and potentially advantageous industries for investment.

According to MUTRAP III project’s research, the full impacts would be felt in 2015-2021 when all FTAs with Vietnam’s involvement are fully implemented. According to quantitative findings in the research, for both partial and full implementation, estimated gains are largest for FTAs with Korea and Japan, and AFTA.

Related Articles

Businesses urged to promote exports

Businesses urged to promote exports

Businesses should work out measures to reduce input prices, solve the
shortages of skilled labour and production materials as well as boost
exports in the remaining months of the year.


Minister of Industry and Trade Vu Huy Hoang made the request at an
online meeting on the country’s production in Hanoi on September 6.


According to the ministry’s report, the country’s export turnover in
the first eight months of the year reached 44.5 billion USD, up 20
percent over the same period of last year while the import value was
still high, with trade deficit standing at 8.16 billion USD, a
year-on-year increase of 3 billion USD - and expected to increase to
13.6 billion USD by the end of the year.


At the
meeting, the representatives pointed out that dependence on import
materials affects the price of export products, and products can also
become subject to trade barriers from other countries.


The ministry also urged businesses to use domestic equipment, step up
the construction of electrical works, stabilise prices of domestic
products and carry out promotion programmes in domestic markets./.

Related Articles

PM urges industrialisation of agriculture in Vinh Long

Prime Minister Nguyen Tan Dung has called on the Mekong Delta province
of Vinh Long to speed up economic restructuring by focusing on
industrial development, while tapping agricultural strengths.


The Government leader gave the advice during his working session with
the provincial administration on September 6. He said Vinh Long should
cash in on its temperate climate and fertile land which is ideal for
fruit specialties such as grapefruit and freshwater products like Tra
and Basa fish.


He asked provincial authorities to work
out policies in favour of agricultural production on an industrial
scale in harmony with rural development and improvement of farmers’
living conditions.


Dung called on the province to
increase GDP growth to over 13 percent annually in the next five years
from 11.19 percent in the 2006-10 period and per-capita incomes to 1,850
USD by 2015 from 1,000 USD at present.


The poverty
rate should drop by two percent in each of the next five years while all
industrial and medical facilities should have their waste collected and
properly treated.


All this should be done in an
effort to join the national industrialisation and modernisation cause,
the Government leader emphasised.


In this regard,
Prime Minister Dung and provincial leaders shared a view on intensifying
investment in traffic infrastructure, irrigation projects, healthcare,
education, rural vocational training and employment promotion./.

Related Articles

Gov’t leader calls on investors to Mekong Delta

Gov’t leader calls on investors to Mekong Delta

The Government of Vietnam always encourages, protects and creates
favourable conditions for organisations and individuals both in and
outside the country to invest in Vietnam and the Mekong Delta
region in particular.


Prime Minister Nguyen Tan
Dung delivered this message at a conference on investment and
development in the Mekong Delta, which opened in Can Tho city on Sept. 6
with the attendance of more than 700 domestic and foreign delegates.


The leader said he hoped that the conference would
serve as an opportunity for concerned agencies and the business
community to update Vietnam ’s investment policies, projects calling
for investment, as well as obstacles hindering business and investment
activities.


PM Dung urged the regional cities and
provinces to work closely together on mechanisms and policies to attract
more investment, fully tap local potential and strengths and mobilise
all internal and external resources so as to further foster the region’s
socio-economic development and improve local people’s living
conditions.


The government has always paid special
attention to the Mekong Delta’s development through support and
facilitation policies such as a socio-economic development scheme until
2015 with a vision through 2025 and a construction plan for the region
until 2020 with a vision through 2050, he said.


The
government also approved a plan to turn the Mekong Delta into a key
economic region, under which the region is defined as a centre for rice
growing, aquaculture and aquatic product processing of the whole country
and a major hub of energy, the PM added.


The Mekong
Delta encompasses 13 cities and provinces which cover an area of 4
million hectares and boast a population of approximately 18 million,
accounting for 21 percent of the country’s total population.


The region shares a 330-km border with Cambodia and has a 700-km
coastline and territory waters of 360,000 sq.km. It contributes around
18 percent to the nation’s gross domestic product (GDP) each year.


The Mekong Delta is the largest rice granary and aquaculture region in
Vietnam , making up 50 percent of the country’s rice output and 52
percent of the aquatic product volume. It accounts for up to 90 percent
of the nation’s rice export volume and 60 percent of the aquatic product
export turnover each year.


During the 2006-2010
period, the region has recorded an annual average GDP growth rate of
between 10-12 percent, of which industry and service have contributed an
increasing proportion.


It has also reaped a broad
range of achievements in terms of infrastructure, health care, education
and poverty reduction, while maintaining national defence, security and
social order.


However, the region is still facing
shortcomings and challenges, including the tardy application of
scientific and technological advances in production, the poor
competitiveness of products and businesses, the shortage of high-quality
human resources and the ineffective attraction of foreign investment./.

Related Articles