VietNam Business

Sunday, January 9, 2011

HCMC: Small projects gain additional capital

In contrast to the decreasing trend in large-scale investment projects,
many small and medium sized projects in Ho Chi Minh City received
supplementary capital in September.

According to HCM City ’s Department of Planning and Investment
(HCDPI), an additional 169 million USD was injected into 65 FDI
projects, mainly in industrial production, services and retail, an
average extra investment of 15 million USD per project.

This positive sign confirmed the improved confidence of small and
medium investors in the Vietnamese market’s development potential and
stability.

The Yuki Vietnam Company, that
manufactures parts for industrial sewing machines, invested an
additional 5 million USD to expand its workshops and purchase new
machinery and equipment. This is the third increase in the company’s
capital since 1994, raising its total investment in Vietnam to 20
million USD.

According to their Managing Director
Tsunoda Shinji, the company’s annual revenue in Vietnam currently stands
at around 16 million USD and is expected to increase to 24-26 million
USD in the near future. Its products are exported to India ,
Bangladesh and Indonesia .

The company is
urgently applying for a permit to sell directly in Vietnam , he said,
adding that at present, around 50 percent of Vietnamese garments
businesses use Yuki sewing machines.

Besides Yuki,
the company Lotteria has also upped its investment by 7 million USD to
expand its network of fast food shops while the retailer Giant South
Asia has spent 15 million USD more on its warehouses and outlets.

However, this increase in production still faces several
difficulties, including a shortage of skilled workers. It requires
investors to have training plans 3-5 years before they decide to
increase their capital.

According to HCDPI’s
Deputy Director Lu Thanh Phong, in 2009, around 115 FDI projects in the
city, mostly small and medium sized, received extra investments of 317
million USD, up 1.8 percent against the previous year.

While holding the upper hand in attracting additional investments,
small and medium FDI projects have also recorded a rapid rate of
disbursement, said Nguyen Tan Phuoc, the Deputy Head of HCM City ’s
Export, Processing and Industrial Zone Authority./.

Cement makers hit by coal shortages

Vietnam Cement Industry Corpo (Vicem)'s member companies need more coal to produce cement, officials from the group have said.

Le Van Chung, chairman of the corporation's management board, said cement factories at the corporation's member companies needed 5,000 tons of coal a day for production, but the Vietnam Coal and Mineral Industry Group (Vinacomin) provided half of their demand at 2,500-3,000 tons per day.

"We had to halt operations temporarily, and if we don't receive an adequate supply of coal in the coming days, many Vicem factories will stop production," Chung said.

Factories in Hoang Thach, But Son, Bim Son, Tam Diep, Hoang Mai, Hai Phong and Ha Tien are experiencing coal shortages.

Hoang Thach Cement Company director Dao Ngoc Binh said his company had three kilns that consume 1,200 tons of coal, but the company had to stop using one kiln on September 27 due to a lack of coal.

The company has about 600 tons of coal in stock, which is not enough to keep the remaining two kilns operational, Binh said.

Cement producers But Son, Bim Son, Tam Diep and Hoang Mai have between 5,000-10,000 tons of coal for production for the next 5-15 days.

The factories acted on their initiative to get more coal for their production, but at the moment, the member companies within Vinacomin did not have enough coal to sell to cement factories, Chung said.

Vicem estimated that the cement industry needed 4 million tons of coal to supply the factories for the remainder of the year, he said.

Cement makers hit by coal shortages

Vietnam Cement Industry Corpo (Vicem)'s member companies need more coal to produce cement, officials from the group have said.

"We had to halt operations temporarily, and if we don't receive an adequate supply of coal in the coming days, many Vicem factories will stop production," Chung said.

Factories in Hoang Thach, But Son, Bim Son, Tam Diep, Hoang Mai, Hai Phong and Ha Tien are experiencing coal shortages.

Hoang Thach Cement Company director Dao Ngoc Binh said his company had three kilns that consume 1,200 tons of coal, but the company had to stop using one kiln on September 27 due to a lack of coal.

The company has about 600 tons of coal in stock, which is not enough to keep the remaining two kilns operational, Binh said.

Cement producers But Son, Bim Son, Tam Diep and Hoang Mai have between 5,000-10,000 tons of coal for production for the next 5-15 days.

Vicem estimated that the cement industry needed 4 million tons of coal to supply the factories for the remainder of the year, he said.

Samsung to launch smartphone, tablet PC in Japan

Samsung's latest tablet device the Galaxy Tab is on display at the 50th edition of the IFA in September in Berlin.

Photo: AFP

SEOUL - South Korea's Samsung Electronics said Tuesday it would release a smartphone and tablet PC in Japan before December, its latest move in an ongoing battle with US giant Apple.

The planned launch of the Galaxy S smartphone and its first tablet PC, the Galaxy Tab, in Japan comes amid growing rivalry with Apple at home and abroad.

Samsung launched its Galaxy S domestically in June, seven months after Apple's iPhone hit South Korea. Samsung has since launched its smartphone in China and other countries.

The company said NTT DoCoMo, Japan's largest mobile operator, would release the Galaxy S at the end of this month and the Galaxy Tab in late November.

More than 70 percent of Japan's mobile market is dominated by local brands, but Apple's iPhone has become the most popular smartphone since its debut in 2008.

Samsung said in a statement the Galaxy S has been "a phenomenal success" in the global smart market, recording worldwide sales of more than five million.

Global computer and handset makers have scurried to respond to the roaring success of Apple's iPhone and iPad.

Tablet PCs feature bigger screens than smartphones and have no keyboards, instead employing touchscreens or stylus pens as input devices.

The global table PC market is expected to expand to 30 million units next year, from 13 million this year, according to industry data.

Samsung to launch smartphone, tablet PC in Japan