Telehouse Vietnam comes on line in Hanoi

A joint data venture between FPT’s Information System Corp (FPT IS), KDDI Corp and ITX Corp of Japan, called Telehouse Vietnam, began operating in Hanoi on Tuesday.

According to Dao Vu Long, Telehouse Vietnam’s Managing Director, the increasing demand for data centers is directly proportional to Vietnam’s rapid development of its information and technology sector.

The joint venture between FPT IS and the two Japanese corporations aims to bring a new data center up to international standards to Vietnam, he said.

The center, which sits on a 1,900-square-meter site, is designed and equipped with global data center Telehouse standards to ensure round-the-clock security for customers’ datum and minimize any risks, even during power cuts.

Covering 39 locations in ten countries worldwide, the global Telehouse central data system, which facilitates telecommunications services, is now ready to provide its services to Vietnam.

FPT IS is a joint stock company under the FPT Group, with eight subsidiary companies and a joint venture with Japan. It has more than 2,200 specialists in software, IT services, general businesses and electrical services.

Related Articles

• VN comes out on top at UPU letter-writing contest
• Vietnam Air accepts web check-in for int’l flights
• Jetstar Pacific terminates Hanoi-Nha Trang flights
• Vietnam, China boost cooperation in inspection
• Ha Long Bay vies for honours in world wonders

Exports to Japan total $4 billion in seven months

HA NOI — Exports to Japan in the first seven months of the year totalled US$4.1 billion, up 25.44 per cent over the same period last year, according to the General Statistics Office.

Export turnover accounted for 10.78 per cent of the country's total export earnings in January-July.

With earnings of more than $580 million, equivalent to a 13.17 per cent year-on-year increase, garments and textiles topped the exports to Japan in the first seven months.

Electric lines and cables followed with $508 million, up 83.25 per cent over the same period last year.

Although earning only $30.8 million in January-July, exports of rubber saw the highest growth rate with a surge of 199.95 per cent.

However, there remained seven export commodities to Japan that saw a decrease in the first seven months.

Among the commodities, exports of crude oil reduced 55 and 69.8 per cent to 169,000 tonnes and $102 million in terms of volume and value, respectively.

Exports of coffee, pottery products, precious stones, petroleum, pepper and cassava also reported reductions.

Japan mainly imports garments and textiles, rubber, mineral, seafood, and electric wire and cables from Viet Nam.

In recent years, exports of garments and textiles to Japan have risen constantly and the country is one of the three leading export markets for Viet Nam's garments and textiles, after the US and the EU. Despite the impact of the global financial crisis, the garments and textiles sector last year earned $1 billion from exports to Japan, a year-on-year increase of 20 per cent, with the figure expected to reach $1.2 billion this year. However, deputy director of the Ministry of Industry and Trade's Multilateral Trade Policy Department Le Quang Lan said that poor quality goods, inadequate information about the market, and a lack of familiarity with the Japanese business culture were obstacles that domestic exporters needed to overcome if they expect to better conquer the Japanese market. — VNS

Related Articles

• High rice price cuts exports
• Firms urged to cut imports
• Timber-product exporters sign $3b deals
• Assoc insists on power price hike despite protests
• Vietnam's reserves dip to $13.85 bln in March - IMF

India urged to invest in drugs companies

Many parents give their children too large or frequent doses of non-prescription medicines for fever, coughs and colds, putting their health at risk

Photo: AFP

Deputy Minister of Health Cao Minh Quang has encouraged Indian-owned pharmaceutical enterprises to pour more investment in the local pharmaceutical industry.

During on Monday's seminar on prospects of the industry, Quang said he had told the Indian Business Chamber in Vietnam (INCHAM) that Indian companies had provided drugs of high quality, safety and efficacy at reasonable prices in Vietnam .

"The Ministry of Health recognises the efforts made by foreign investors in the development of the pharmaceutical sector and will try its best to create a favourable and equitable business environment for INCHAM members who invest in Vietnam ," Quang said.

The ministry is committed to continue increasing transparency and accountability, and will reform administrative procedures to smooth the way forward for enterprises, according to Quang.

The ministry's goal is to develop the pharmaceutical sector on many levels, including investment, integration with the world market, and creation of new policies and laws governing the industry.

According to the ministry, 128 Indian enterprises among 545 foreign similar enterprises have been licensed to work in the pharmaceutical industry, accounting for 23.5 percent, the highest ranking.

The number of valid registrations granted to Indian drugs is 4507, accounting for 37.8 percent, the highest level. Drugs from the Republic of Korea rank second, 19.23 percent.

India is an emerging pharmaceutical market in the Asia-Pacific region with an impressive growth rate of 13 percent per year.

At US$193 million in export turnover to Vietnam , India , the world's third-largest producer of pharmaceuticals, was the largest pharmaceutical exporter to Vietnam in 2009.

Abhay Thakur, consul general of India in HCMC said India 's industry had average annual exports of $8.5 billion.

The $21 billion Indian pharma industry was small in comparison to the global market, he added.

"Vietnam can increasingly look towards India as a source for affordable medicines and to solve concerns about increasing healthcare costs," he said.

 

Related Articles

• Seminar aims to better public investment management
• Firms urged to cut imports
• IFC: Vietnam needs to increase PPP to support economy
• RoK businesses focus on Vietnam
• PM sets agenda for insolvent shipbuilder

ECB's Weber hopeful of Basel III deal at weekend

Photo: Reuters

FRANKFURT - Negotiations on the way banks around the world gird themselves for shocks can be wrapped up at the weekend, European Central Bank Governing Council member and Bundesbank head Axel Weber said on Wednesday.

Bankers and investors are eagerly awaiting details of the new rules which will determine how much of a capital cushion banks will have to set aside as a safety net.

"Hopefully we will bring the negotiations to a conclusion at the weekend in Basel," Weber said at the first day of the annual Banks in Transition conference that will attract top executives from the financial world.

Central bank and regulatory officials agreed a proposal for tougher new global bank capital rules on Tuesday but kept the details confidential until Sunday.

The recommendations by the so-called Basel Committee go to the Group of Governors and Heads of Supervision (GHOS), chaired by European Central Bank President Jean-Claude Trichet, which meets in the Swiss city on Sunday.

The recommendations govern how much extra capital banks will have to hold in future to avoid governments having to bail out the sector in the next crisis.

They also cover arrangements for phasing in higher standards on the quality of capital banks must hold in future.

Weber, seen as one of the ECB's heavyweight policymakers, also delivered a cautious message on the euro zone economy, but rebuffed the idea of the bloc falling back into recession.

"I do not share fears of a double recession or deflation," he said.

He warned, however, that it was too early to declare the financial crisis over, saying markets remained characterized by uncertainty and that setbacks could not be ruled out.

He backed German government plans for dealing with insolvent banks and urged regulation to be globally applicable.

Related Articles

• Timber-product exporters sign $3b deals
• Ford rewards employee’s technician skills in contest
• Painters show works inspired by nature, nostalgia
• Greenback firmer on signs of rising demand
• Hanoi T&T win first V-League after scoreless draw

Dairy firms push up prices while they can

Dairy consumers have been angered as some producers jump to increase their prices before a new pricing law takes effect next month.

Under Circular No 122 that applies from October 1, dairy firms must register the price of milk for infants under six with the Ministry of Finance's Price Management Department or the provincial departments of finance. The agreed price would be calculated from the cost of materials and production.

Since the end of last month, some milk brands have increased prices by as much as 10 percent to get in before the new law that aims to stabilise the price of dehydrated children's milk and prevent unreasonable price hikes, Lao Dong (Labour) reports.

For instance, Abbot has adjusted prices on three of its products by 7 percent.

Anmum brand put its price up by 10 percent a few days ago. The price of Abbot's Ensure Gold for adults has jumped by 8 percent to VND470,000 (US$24.7) each 900g tin.

Milk shops on Nguyen Thong Street , district 3, said within a week Abbot's Pediasure brand would also have a price adjustment.

Nguyen Thi Hanh, general director of Sai Gon Co.op, said among the dozens of imported powered milk brands, only Mead Johnson had made a commitment not to boost prices.

For domestic dairy firms, only Hancofood has confirmed not to alter its price tag.

The dairy firms blamed the price increases on high production costs brought on by higher material costs and the changed USD/VND exchange rate.

Experts said, however, that dairy firms spent too much on advertising and sales commissions and passed the added cost to the consumers.

A woman shopping for milk, Thuy Oanh, on Nguyen Du street, Go Vap District was concerned that the circular only applied to powdered milk for six-year-olds so she expected price increases for milk for pregnant women and the elderly.

Apart from the regulations, the Consumer Right Protection Association needs to coordinate with retailers and boycott milk brands that always increase their prices

 

Related Articles

• High rice price cuts exports
• Market moves up sharply
• Energy group asks for 50% price hike
• Hanoi T&T win first V-League after scoreless draw
• Greenback firmer on signs of rising demand

Market rallies for sixth straight session

Investors watch stock prices at Kim Eng Securities Co. The VN-Index gained 7.25 points, or 1.58%, from the previous session to close at 466 on Monday- Photo: Le Toan

HCMC – The local market on Monday continued to climb sharply, having seen five rising sessions in a row before the long National Day holiday, as the VN-Index jumped 7.25 points, or 1.58%, from the previous session to close at 466.

Investors on the southern bourse increased their bids by 18.4% against the day earlier to around 111 million shares, while the amount on offer contracted by 6.12% to 71 million shares. Liquidity, however, improved strongly with 57.2 million shares worth VND1.6 trillion changing hands, both increasing by around 30% from the previous session.

The market started the day well into positive territory and hit a daily high of 469.25 towards the end of the second matching phase. It fell back somewhat during the last matching phase and finally closed below the high.

The number of gainers was nearly 10 times that of losers at 215 to 23, of which 112 stocks closed the day at the ceiling prices and three others plunged to the floor prices.

The most traded stock in terms of liquidity was Saigon Securities Inc. (SSI) that ended the day up 4.9% to VND29,900 with 3.17 million shares traded. Refrigeration Electrical Engineering Corp. (REE) was the second biggest traded issue, advancing 4% from the previous day to VND17,400 on the volume of 2.4 million shares.

Foreign participation turned strong again as the investors acquired 5.7 million shares worth VND195 billion and sold 3.5 million shares worth VND125 billion, accounting for 12.8% and 8.2% of the market’s buying and selling value respectively.

The Hanoi market rose further on Monday as well, but in lower turnover of VND880 billion. The HNX-Index added 5.14 points, or 3.9%, against the day earlier and closed at 136.8.

Up to 293 stocks advanced while 23 stocks declined, of which 115 stocks went to the ceiling prices while one stock dropped to the floor price.

Fiachra Mac Cana, managing director of HCMC Securities Corp., said the markets started this week well even after the long holiday and investor sentiment remained quite positive while good volumes had returned.

On Monday’s move was partly the result of decent performances on overseas markets over the last few days and partly some keen anticipation of good news on the domestic front over the next few days. However, stocks did drop off somewhat in the last phase on the southern bourse although sentiment on the Hanoi market stayed true until the end, he said.

“Our feeling is that any news should be good enough to take us some way higher than here over the next few weeks but then we note that both the 480 points and above that the 500-point levels on the VN-Index are formidable barriers. And then after this month is over, revisions or no revisions of the Decree 13 we still have a lot of potential supply still coming our way,” Mac Cana added.

Related Articles

• More counterfeit products flood Vietnamese market
• More counterfeit products flood Vietnamese market
• Market moves up sharply
• Chau Doc’s curried fish vermicelli: Bun nuoc ken
• Government vows to bail out insolvent shipbuilder Vinashin

Climate change seen eating into Vietnam GDP

HCMC – Negative impacts of climate change will likely take away 25% of Vietnam’s gross domestic product (GDP) in the coming years if the country fails to take prompt coping measures, said a Ministry of Natural Resources and Environment official.

Tran Hong Ha, deputy minister of Natural Resources and Environment, told the Daily on Monday that if the worst happened with sea levels rising by a maximum of three meters, 25% of the nation’s population would be directly affected.

At the same time, he added, climate change will lead to a 25% loss of the country’s GDP. In a more optimistic scenario where sea levels swell by only one meter, the country will also lose around 10% of GDP while 40,000 square kilometers of coastal land will become flood-prone, he said as he is attending a two-day Asia-Europe Meeting (ASEM) forum on climate change that opened in the northern province of Quang Ninh on Monday.

“Based on the latest studies, climate change will mostly affect the livelihood of the poor and the farmer in coastal areas in the central provinces and the Mekong Delta if we don’t take measures right now,” he said.

He said his ministry had just envisaged a scenario for the country to adapt to negative impacts of climate change by 2015 in combination with other master social and economic development plans. The ministry is also doing more research on how to adapt to climate change by 2100.

Delegates to the forum are discussing ways for international cooperation to cope with the issue.

According to the environment ministry, Asian and European nations should take rapid action or they lose at least 40% of cereal output by 2040 as climate change bites.

In December 2008, the Government of Vietnam, which is trying to become a low-carbon country, approved a national program for mitigating the consequences of climate change. International organizations have promised to support Vietnam to get more financial sources to carry out the program in the coming years.

In recent years, several European countries have been sharing experience with and providing support for Vietnam in the climate change coping effort.

Related Articles

• Forests vital to fighting climate change
• Victims of food poisoning leave hospital
• Cashew traders yet to embrace trading center system
• China cassava processors seek partners
• Markets snap six-day win streak