S.Korea’s Lotte eyes Vietnam’s highest skyscraper project

HCMC chairman Le Hoang Quan (R) listens to Lotte Group vice chairman Dong Bin Shin introducing the company’s observatory tower project on Thu Thiem Peninsula during the meeting on Saturday - Photo: Kinh Luan

HCMC – South Korea’s Lotte Group has reaffirmed its interest in a US$2-billion project to develop what will become the country’s highest skyscraper on Thu Thiem Peninsula in HCMC’s District 2.

Speaking at a meeting on Saturday with city chairman Le Hoang Quan, Dong Bin Shin, vice chairman of Lotte, said the company wanted to get involved in the observatory tower project.

However, the city leader said many other investors had shown keen interest in the forthcoming new urban area, so Lotte would have to join competitive tenders for the development of this area.

“Although we’ve signed with Lotte a memorandum of understanding (MOU) for the project’s study, you have priority for three months only. According to the rule, after this period we can invite others to study the project and formulate an investment plan,” explained Quan.

Quan told Dong that the city government would consider choosing the best plan and then submit it to the central Government.

As one of Thu Thiem New Urban Area’s main projects, the observatory tower will be built on a 20 hectare site in the 737- hectare new urban area.

Lotte was ahead of almost 20 other investors to submit a master plan for Thu Thiem to the city government. On June 18 last year, Lotte Asset Development Company signed with the HCMC Department of Planning and Investment the MOU in which the Korean firm promised to build the 100-storey observatory tower as well as a five-star hotel, an indoor theme park, an outdoor amusement park, shopping malls, international school, and office and residential buildings.

Starting business in Vietnam since 1996, Lotte is active in five areas in Vietnam, namely food processing and retailing, construction, real estate, logistics and trade.

Lotte is involved in a US$400-million, 65-storey Hanoi City Complex project in Hanoi. Lotte’s total investment capital pledges in Vietnam have amounted to more than US$100 million.

Related Articles

• Province lures investors
• Confab examines new housing policies
• Civil servants to enjoy State housing
• Assoc insists on power price hike despite protests
• Japan to construct plant for industrial waste in capital

$1 bln. Intel chip factory to open this month

Intel Corporation has announced its factory to test and assemble semi-conductors will open in Ho Chi Minh City by the end of this month.

The first large corporation making a high-tech investment in Vietnam has spent US$1 billion in building the new factory, construction of which begain in 2007.

The 500,000-square feet plant is expected to employ around 4,000 workers. This will be the seventh factory of its kind invested by Intel outside the US, with the others located in Malaysia, the Philippines, China and Costa Rica.

Navin Shenoy, Intel general director for the Asia-Pacific region, said the investment would help the corporation tap growth opportunities in the emerging Asian market.

“We expect Asia’s PC market to continue to grow by more than 20 percent annually in the next few years. We definitely will continue to invest in Asia where we see growth,” Shenoy told the Dow Jones Newswire in a recent interview.

He said the US and European consumer markets have showed weak sentiments while  “Asia has a young population and a low PC penetration rate. China, India, and Southeast Asian countries like Indonesia and Vietnam are important markets.”

Intel reported more than $11 billion in quarterly revenues in the third quarter, and 58 percent or $6.40 billion of this came from the Asia-Pacific region, a 20 percent increase from $5.32 billion the same period last year.

Related Articles

• $1 bln. Intel chip factory to open this month
• Testing center for vehicle emissions opens in Hanoi
• HCMC to relay grand sale program to November
• HCMC: hi-tech industry popular with investors
• High rice price cuts exports

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.

Related Articles

• Foreign sea leases deprive locals of living
• Tuyen Quang province urged to develop faster
• HCMC office building market sees partial recovery
• Market moves up sharply
• Chau Doc’s curried fish vermicelli: Bun nuoc ken

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.

Related Articles

• Naval forces boost global co-operation
• Victims of food poisoning leave hospital
• Vietnam joins China-ASEAN summit
• Hanoi T&T win first V-League after scoreless draw
• Future doctors look for clues in crazy race

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.

Related Articles

• Foreign sea leases deprive locals of living
• Thirty one die as floods wreak havoc
• Banks scramble for mid-level managers
• Missing fishermen call home after China release
• High rice price cuts exports

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.

Related Articles

• Vietnam Air accepts web check-in for int’l flights
• Cashew traders yet to embrace trading center system
• Victims of food poisoning leave hospital
• Regulations require toys to display safety stamps
• Good response to reforms of People's Councils

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.

Related Articles

• Market moves up sharply
• Greenback firmer on signs of rising demand
• Assoc insists on power price hike despite protests
• Vietnam Airlines to change terminal in Paris
• HCMC to relay grand sale program to November