Friday, January 21, 2011

Vietnam’s exports to US continue to rise

The US Department of Commerce has announced that Vietnam’s exports to the US in the first seven months of the year earned US$7.9 billion, an increase of 14 percent over the same period last year.

Garments and textiles lead amongst Vietnam ’s major export items to the US , making $3.2 billion, a year-on-year increase of 12 percent and followed by wooden products and furniture with $985 million, up 27 percent and footwear, $910 million up 9.6 percent.

Farm produce is still one of Vietnam ’s top five leading export items, ranking in $455 million, up 30.7 percent and seafood, $366 million, up 5.9 percent.

Also under the reviewed period, Vietnam’s imports from the US were worth $2 billion, an increase of 19.8 percent, bringing the import-export turnover between the two countries to $9.9 billion, an increase of 15.1 percent over the same period last year.

The Vietnamese Embassy’s Office of Commercial Bureau estimates that Vietnam’s export turnover to the US will hit $14.2 billion by the end of this year, a year-on year increase of 15 percent.

 

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Energy-saving products grow in popularity

Energy-saving air-conditioners and compactflourescent lights have
become more and more popular in the HCM City market, experts have said.


At the beginning of the year, local and international producers,
including Panasonic, Sanyo, Samsung and Hitachi, launched
inverter-technology products that save up to 20-60 percent of
electricity consumption.


From January to August, 546,654
air conditioners with a capacity of up to 15,000BTU have been sold in
HCM City. Of those, 35-50 percent used inverter technology, according to
figures compiled from electronic-goods shops.


At the HCM
City-based Wonder Buy electronic-goods centre, 35 percent of all air
conditioners sold were of the inverter type, while at Best Carings 60
percent of air-conditioner sales had inverter technology.


Like energy-savings air conditioners, compact-fluorescent lights that can help save power are also popular in the market.


Compact-fluorescent light bulbs, which can cut energy use from 40W to 38W, are widely on sale.


Customers are now becoming familiar with the use of compact-flourescent lights instead of the more common incandescent bulbs.


Five years ago, Dutch-based Philips Vietnam introduced
compact-flourescent lights to the market. Most of them can save at least
10 percent of electricity consumption.


Recently, the Dien Quang Company has also focused on making compact lights that can help save power.


Nguyen Thanh Toan of HCM City Power Saving Centre said total energy
savings would depend on the customers' use and other factors.


Toan said that, for instance, an air conditioner works of 9,000BTU
capacity and power consumption of 750W per hour could save up to 30
percent of electricity consumption.


Toan also said that some air conditioners could save up to 60 percent of electricity consumption.


The owner of the Cong Danh air-conditioner shop in Go Vap District said
the price of an air conditioner with converter technology is about 2
million VND – 3 million VND (100 USD) higher than other
air-conditioners.


But savings over the long run would compensate for the higher initial price, he added.


The price of compact fluorescent lights is not expensive, but it has
high quality and is popular with customers, according to the owner of
Huynh Nga electronic shop in the city's Thu Duc district./.

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Central bank may allow gold imports

Gold trading enterprises may be allowed to import gold if domestic
prices continue to surge, says the head of the State Bank of Vietnam's
Foreign Exchange Department Nguyen Quang Huy.


The statement was made on Oct. 7 after domestic gold prices soared in
the afternoon. One tael of gold (equivalent to 1.2 troy ounces) costs
33.05 million VND (1,690 USD), a record high.


"The central
bank may consider allowing dealers to import a suitable quota to
stabilise market prices in line with global changes," Huy said.


He added that the sudden surge in gold prices was caused by the
increase in global prices, which are now at a record high of 1,349 USD
per ounce. Speculation and psychological worries also likely effected
the inflation.


As of Oct. 7 afternoon, the price of gold
in the domestic market was 1 million VND (51.28 USD) per tael higher
than the global price.


"The imbalance between supply and
demand is making gold prices ‘crazy'," said Huynh Trung Khanh,
International Gold Council's senior consultant official in Vietnam. "The
supply is drying up."


In July, the State Bank allowed
enterprises to import seven tonnes of gold. However, dealers said the
volume was unable to meet the market's growing demand.


In
August, the Vietnam Gold Trading Association asked the central bank to
allow them to import more gold bars to process, but the proposal was
rejected.


The increase in the price of gold caused the US
dollar's exchange rate to increase to 19,850 VND on Oct. 7 from 19,750
VND on Tuesday./.

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Thursday, January 20, 2011

Foreign investors boost City shares

Shares made only modest gains on the HCM Stock Exchange Oct. 7, on
sluggish trading totalling just 36.5 million shares, worth only 977
billion VND (50 million USD).


The VN-Index closed up just 0.29 percent to 462.05 points after reaching as high as 467 points earlier in the session.


Heavy purchases by foreign investors in many blue chips helped lift
some shares, such as software giant FPT, developers Hoang Anh Gia Lai
(HAG), Masan Group (MSN) and Vincom (VIC), insurer Bao Viet Holdings
(BVH) and Phu My Fertilisers (DPM), but decliners outnumbered advancers
overall by 163-58.


Foreign investors accounted for over
half of overall market value on Oct. 7, responsible for transactions
totalling nearly 11.5 million shares and worth about 473.5 billion VND
(24.3 million USD). They were net buyers by a volume of nearly 6.7
million shares and a value of 301.2 billion VND (15.4 million USD).


Beta Securities Co analysts commented that Oct. 7's market gains were
entirely due to heavy foreign buys in blue chips and were not
sustainable.


Strong fluctuations on the foreign currency
market drove several institutional investors to increase securities
investments to disperse risk, added analysts from Saigon Securities Inc.


On the Hanoi Stock Exchange, which saw less impact from
foreign investors, the HNX-Index declined 1.78 percent on the day to
close at 122.62.


The volume of trades dropped by 20
percent from Oct. 6's session to about 23 million shares, with a value
of nearly 539 billion VND (27.6 million USD).


Losers
outnumbered gainers by 208-76, with PetroVietnam Construction (PVX)
again being the most-active share on a volume of 2.7 million. PVX closed
down 0.44 percent to 22,700 VND (1.15 USD).


Of the 10
leading shares by capitalisation on the northern bourse, Bao Viet
Securities (BVS), Tien Phong Plastics (NTP), PetroVietnam Insurance
(PVI) and PetroVietnam Technical Services (PVS) rallied.


Dramatic hikes in gold prices and the rising value of the US dollar on
the black market has spooked many domestic investors over the stability
of the economy, said Bao Viet Securities Co analyst Nguyen Duc Thi.


"There is no positive news currently supporting investor psychology,
and the market has not given any signs of a stable uptrend," Thi said./.

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HCMC targets 12 percent growth in 2011-2015

Le Thanh Hai, secretary of the Ho Chi Minh Ctiy Party Committee, has said the city will try its best to attain an annual GDP growth rate of 12 percent during the 2011-15 period.

In a political report delivered at the 9th Party Congress of HCMC, Hai said the city targeted an annual value-added growth of 13 percent for its service sector; 11 percent for the manufacturing sector and 5 percent for agriculture.

Hai said in 2015, the service, industrial and agricultural sectors would account for 57, 42 and 1 percent of the city's GDP, respectively.

Other targets contained in the report include maintaining the city's birth rate at less than 1.1 percent per annum.

By the end of 2015, per capital income in the city will reach US$4,800 compared with $2,800 in 2010.

The city will create 120,000 new jobs every year compared with nearly 118,000 per year in the 2006-10 period.

Hai also said that by the end of 2015, skilled workers would make up 70 percent of the city's workforce.

The number of families under the poverty line of VND12 million/person/year would drop to below 2 percent of the city's population, he said.

By the end of the next five-year plan, the city's doctor-patient ratio would be 15 for every 10,000 residents.

The number of households in urban areas accessing clean water would reach 98 percent.

The city targets building 39 million square metres of new housing, raising the per capita housing area in the city to 17 sq.m in 2015 from 14.3sq. m in 2009.

Hai said 100 percent of solid waste and wastewater generated by city enterprises would be collected and treated by the end of the next five-year plan period, and all industrial parks and export processing zones without exception would have central wastewater treatment systems.

He added that the city would pay a lot of attention to envionmental protection by promoting green production and improving development quality.

It would also give priority to developing its service sectors including financial, banking, commerce, transportation, post and telecommunications, warehousing and port services.

Due attention would be paid to the development of the ITC, real estate and tourism industries, as well as the health, and education and training sectors, Hai said.

The city would focus on developing public transportation, including urban railway projects, expressways and beltways to connect the city with the Mekong Delta and other localities in the country, he added.

Authorities would spare no effort to curb traffic jams and prevent flooding. A programme covering 100sq.km had been mapped out to stop flooding in inner districts and to prevent flooding elsewhere.

The city would continue its efforts to create a level playing field for companies from different economic sectors and to assist small- and medium-sized enterprises to access loans, technology and new markets, Hai said.

 

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Malaysia keen on Vietnam’s franchise market

Vietnam is a new strategic market for Malaysian businesses to invest in franchises, announced the Malaysian Franchise Association (MFA).

At a seminar held in the Malaysian capital city of Kuala Lumpur Wednesday, MFA Managing Director Sofia Leong Abdullah praised Vietnam’s potential, a country with a population of 87.9 million and ranked third in economic growth across the world.

Vietnam ’s purchasing power has also rapidly increased, partly thanks to US$20 billion in foreign remittance, he said, noting that the country’s franchise market is strongly developing with the average turnover increasing by 50 percent each year and this trend is expected to last till 2012.

The two Malaysian brands that already operate in Vietnam are Setia and Berjaya, he added.

During talks with reporters after the seminar, Abdullah said that the MFA will work with Perbadanan Nasional, a leading agency employed by the government to develop the country’s franchise industry, and the Malaysia External Trade Development Corporation (Matrade) to promote Vietnam’s potential market to Malaysian businesses.

The MFA intends to bring seven or eight local franchises to Vietnam by the end of this year, he said, adding that the number will increase in 2011.

According to Abdullah, demand for franchises in Vietnam can be seen in the retail sector with 25 percent, beverages 20 percent, restaurant services 16 percent, fashion 9 percent and education 5 percent.

He underlined that education is the sector where the MFA sees the biggest potential, including English language programmes, that Malaysian brands can tap into.

Hanoi, Ho Chi Minh City and other cities such as Da Nang, Can Tho and Hai Phong will be strategic destinations for Malaysian companies to invest in, he said.

 

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Oil refinery slips up on poor market forecast

Failure to precisely forecast demand and supply has left Vietnam’s sole oil refinery with huge volumes of unsold stocks, the state-owned Vietnam National Oil and Gas Group, its operator, said.

The Dung Quat refinery has 750,000 tons of gasoline/oil and 2 million cubic meters of liquefied petroleum gas in stock since domestic demand is 10 percent lower than forecast and the plant’s output is 25 percent higher, Phung Dinh Thuc, general director of PetroVietnam – as the firm is known -- told the media Thursday.

But he did not provide the actual demand and supply figures.

The most practical solution now is to boost demand rather than reduce capacity since the country faces a trade deficit, he said.

At a meeting between PetroVietnam and the Ministry of Industry and Trade earlier this week, the company warned that if measures are not taken to boost exports and domestic consumption, the plant has to cut production due to lack of storage space.

Last month it had asked Quang Ngai Province, where the refinery is located, for permission to expand the plant by 134 hectares to increase its annual capacity from 6.54 million tons to 10 million tons.

But the problem with excess supply dates back to the construction of the plant last year.

It was much delayed and the exact date of its handover by French contractor Technip was not decided until early this year, forcing local oil distributors to sign import contracts.

Thus, while the plant supplies nine out of the 11 petroleum firms in the country but they only buy 30 percent of its output.

In the January-September period, imports of oil products were worth US$4.87 billion, an increase of 4 percent year on year.

The state-run Vietnam Petroleum Corp (Petrolimex), which has a 60 percent retail market share, also has contracts with foreign suppliers and buys only 19 percent of the plant’s output.

It recently became the third distributor to buy directly from the pant after PetroVietnam subsidiaries PV Oil and Petec.

This followed recent complaints by the company that it is illogical for PetroVietnam to require all oil firms to buy Dung Quat’s products through PV Oil instead of directly.

PV Oil charged a high intermediary fee, it also complained.

The Dung Quat refinery has a monthly capacity of 150,000 tons of gasoline, 240,000 tons of diesel oil, 23,000 tons of LPG and others, enough to meet 33 percent of current domestic demand.

It had produced around 5 million tons of products as of last month after reaching full capacity in May.

It has been unable to sell large quantities of jet fuel to local airlines due to red tape.

Last month it shipped 4,500 tons of jet fuel to BP Singapore.

The plant produces six items -- gasoline, diesel, LPG, polypropylene, jet fuel, and fuel oil.

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