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Foreign enterprises optimistic about future business in Vietnam


Many foreign enterprises have shown their optimism about the future of their business operations in Vietnam following the country's accession to the World Trade Organization (WTO).

Speaking at the Vietnam Business Forum held in Hanoi on Wednesday, the Chairman of the Australian Chamber of Commerce (AusCham)'s Hanoi Chapter, Mark Farqhar, confirmed that "AusCham members have, in overall terms, remained positive about the future of their business operations in Vietnam.

Many are optimistic that Vietnam 's entry into the WTO gradually promises a more transparent, predictable, stable and equitable business environment." "AusCham members look forward to the many benefits WTO membership will bring to Vietnam's overall economy, and are optimistic about increasing growth in their own businesses," he added.

Sharing with Australian businesses' optimism, R. David Knapp, Chairman of the American Chamber of Commerce (AmCham) in Vietnam, said: "The American business community is excited about the future of Vietnam.

Vietnam 's accession to the WTO will boost the level of American investment in the country mainly because, proper implementation of the agreement will help increase investors' confidence."

Meanwhile, Oliver Massman, member of the Executive Committee of the European Chamber of Commerce (EuroCham), said, "EuroCham applauds the Vietnamese Government's unswerving commitment to economic integration, and offers our fullest support in this area for the months and years ahead."

He also said that EuroCham would like to note the serious steps the Vietnamese Government has taken in its efforts to increase transparency in public affairs, and to combat the corruption which has marred certain areas in the past.

Also at the forum, foreign investors gave their personal recommendations in the aim of helping Vietnam take opportunities offered by its WTO accession and improve its business environment.

The AmCham official suggested that Vietnam should increase the speed of new infrastructure development and improve intellectual property rights protection and enforcement, as well as upgrade its education system.

Knapp also noted that Vietnam must also do better in weeding out corruption.

Sharing the same view, the Chairman of the AusCham's Hanoi Chapter said that AusCham's recent Business Sentiments Survey indicates that members feel the most important action the government should take to improve the business environment is to control and prevent corruption.

Meanwhile, Fred Burke, Managing Partner of the Baker and McKenzie LLP. Vietnam , proposed that Vietnam reduce the actual effective tax rate and simplify tax payment by reforming the tax regime, and by avoiding new taxes.

He also recommended that the state should invest more in training programs for its human labor force. It should also support transportation infrastructure, and encourage private sector participation in such projects, he said.

Source: Asia Pulse News

SK Telecom, Samsung in mobile handset tie-up


South Korean carrier SK Telecom and Samsung Electronics have established a strategic alliance promising mutual cooperation in the domestic and overseas markets, including Vietnam.

SK Telecom said it expected to deploy three million Samsung mobile phones next year for its operations in South Korea and abroad, especially in Vietnam through its CDMA-based mobile phone operator S-Fone.

“Through cooperation with Samsung Electronics, we will strengthen our foothold in the Vietnamese market, where demand for new mobile phones is growing,” it said in a statement.

Source: Chosun Ilbo

Online payment via mobile phone
13:04' 19/12/2006 (GMT+7)

VietnamNet Bridge – The VinaPhone Corporation in association with Asian Commercial Bank (ACB) is going to launch an online payment service via mobile phone, allowing customers to do their shopping without any cash in pocket.
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In order to bring this new kind of service, VinaPhone subscribers have to use a special simcard instead of the common one as well as register an account in ACB.

The subscribers are then provided with a confidential ID code. In order to conduct their online payment for their shopping items, customers will send a message and the bank will transfer money to the sellers also using ACB accounts.

The service will support VinaPhone subscribers to conduct goods exchange, purchases and money transfers in a very convenient way.

Customers are expected to enjoy this service by the first quarter in 2007 when the service suppliers successfully completed their products on the trial basis. The potential customers are dynamic youngsters and entrepreneurs.

Earlier, VinaPhone had collaborated with Incombank to sell scratching mobile cards via the ATM system. Currently, Incombank sells mobile cards with the face value of 100,000VND, 200,000VND, 300,000VND and 500,000VND on its system.

(Source: VNE)

Credit Suisse gets right to trade shares in Vietnam
17:43' 18/12/2006 (GMT+7)

VietNamNet Bridge – The second biggest bank in Switzerland, Credit Suisse, has been granted a business licence in Vietnam that will open an account for it at the Saigon Securities Incorporated (SSI).
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Credit Suisse follows a safe investment strategy which is not influenced by market tendencies. Power, high-tech, consumer products, exports, and mineral exploration are among the group’s top-priority fields of investment.

In addition, Credit Suisse has signed a contract to hire Asia Commercial Bank’s (ACB) Securities Company to give consultancy services on making investment in Vietnamese securities. The foreign bank estimates that the total value of Vietnam’s stock market is some $10bil, and will double by 2010.

In Vietnam since 2001, Credit Suisse has been acting as a financial intermediary in many projects. It has arranged credit loans worth $500mil for commercial banks, and funded many trading transactions among domestic and international enterprises.

(Source: VNE)

Big players on the stock market
12:49' 16/12/2006 (GMT+7)

VietNamNet Bridge – It has been happening for the past couple of weeks: at 7.30 am exactly every day, a Vietnamese securities company receives an order for shares sent by fax by Deutsche Bank AG London.


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The total value of requested shares ranges between VND150bil and VND200bil a day. In the previous weeks, Deutsche Bank just ordered shares listed at the HCM City Securities Trading Centre. But now it has asked for the securities company’s advice on buying shares listed at the Hanoi Securities Trading Centre (HASRC) as well.

“No problem. We can help you in buying shares at HASTC as well,” the securities company replied.

And Deutsche Bank continues pumping its money into Vietnam’s stock market.

There are more and more big players like Deutsche Bank AG London approaching Vietnam’s stock market. Citigroup arrived at the market sooner than Deutsche Bank, though it has not made as many deals as Deutsche Bank.

Foreign investment funds have also jumped on the bandwagon. Vietnam Holding Ltd, for example, has bought 900,000 shares of Binh Minh Plastics Company. Dragon Capital also buys and sells these days for the investment funds it is managing, though it complains that the prices of shares are ‘too hot’.

Meanwhile, the Vietnam Opportunity Fund managed by VinaCapital has been injecting big sums of money in coal, rubber, seafood companies, and it is now hunting for bank shares.

Experts said that investment funds now do not compete with each other in raising funds any more, because it is now very simple to raise funds to invest in Vietnam. They are now just competing in management skills and on where to put money in.

The experts said that they can see a new tendency in making investments in securities. The Hong Kong and Shanghai Banking Corporation (HSBC) is now shifting its investment field from shares to bonds, and so is Dragon Capital. An official from Dragon Capital gave a ‘diplomatic explanation’ of the company’s decision: bonds are much safer to invest in.

However, everyone may understand that it is a good move. Vietnam now has good prestige on the international market, while its financial market has improved. It is clear that international credit rating firms, sooner or later, will give higher credit rankings to Vietnam. And once Vietnam’s credit ranking has improved, the interest rates for Vietnam’s bonds will be lower. Currently, the interest rates for the Government bonds are relatively high, at more than 10% in several kinds of bonds. Therefore, the investors will be able to get fat profit if they inject money in bonds. Moreover, investors do not have to pay as much in management fees for investments in bonds as they have if making investments in shares. They can buy several thousand billions worth of bonds at once, while they only can buy several thousand billions worth of shares over the course of many transactions.

(Source: TBKTSG)

Foreign investors seeking to purchase BVSC shares
16:51' 15/12/2006 (GMT+7)

VietNamNet Bridge – Many foreign investors have expressed their desire to make capital contributions to the Bao Viet Securities Company (BVSC) by purchasing shares, according to Nguyen Quang Vinh, BVSC Director General.

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Mr Vinh yesterday officially announced that BVSC would list at the Hanoi Securities Trading Centre (HASTC) starting December 18.

“These are big and prestigious international financial institutions in the world, which want to make capital contributions to BVSC as strategic shareholders,” said Mr Vinh.

However, BVSC will only consider proposals from investors when it kicks off the plan to increase its chartered capital in the second phase, slated for early 2007.

“The decision will be made after BVSC’s parent group, Bao Viet, the leading insurer in Vietnam, set up its development strategy,” Mr Vinh said.

“If we choose strategic shareholders in advance, our choice may conflict with Bao Viet’s decisions to be made later, when the group is equitised.”

Regarding the increased chartered capital, BVSC will present the detailed plan during the annual shareholder’s meeting to be held in early 2007. The company’s chartered capital will be raised to either VND250bil (15.62mil) or VND300bil ($18.75mil).

BVSC has increased its capital from VND50bil ($3.1mil) to VND150bil ($9.3mil). However, the capital level proves to be not high enough to meet the requirements to be legalised by the State Securities Commission, which say that securities companies must have the minimum capital of VND200bil ($12.5mil). BVSC, like many other securities companies, will have no other choice than increasing its chartered capital.

BVSC shares are scheduled to put into transaction at the Hanoi Securities Trading Centre on December 18. The company will be the third securities companies to list shares on the stock market.

(Source: TBKTVN)

Originally Posted by chouchou

Vietnam exports touch record $39.5 bln


Vietnam’s exports have topped a record US$39.5 billion this year, a 22 percent increase, the Ministry of Trade said.

Foreign-invested businesses accounted for $22.9 billion for a 42.5 percent year-on-year increase.

Textiles and garments, footwear, seafood and electronic products were the major items exported.

Crude oil remained in top spot with $8.45 billion, followed by garments and textiles with US$5.9 billion, a 22 percent rise.

The US remained the largest textile market accounting for $2.7 billion, followed by the EU and Japan.

Footwear exports fetched $3.5 billion, a 15 percent increase over last year, and seafood $3.4 billion, a 24 percent increase.

Rubber joined the $1 billion club with exports of more than US$1.3 billion. Thanks to the sharp increase in latex prices, rubber exports jumped 64 percent over last year.

The US$1 billion club now has eight members –seafood, rubber, rice, crude oil, garments and textiles, footwear, electronic products and PC parts, and wooden products.

Source: VNA

Great Info...What caught my eye the most was the crude oil exports of $8.45 BIL.
Along with a great balance of other products !!!!! The country seems to be firing on all cylinders!!!!! I wish i could back up the truck and load it with the Dong!!!

Vietnam raises FDI target


Vietnam has sharply revised upward its foreign direct investment (FDI) target, buoyed by an optimistic economic forecast and other factors.

The Ministry of Planning and Investment said the new target would be US$9.2 billion, 34 percent more than originally hoped for, around $7 billion into new projects and the rest into ongoing ones.

Also influencing the revision were plans for some giant projects like the $3 billion Nghi Son Oil Refinery in the central Thanh Hoa Province.

Jonathan Pincus, a UN economist, said Vietnam’s WTO entry would offer more investment opportunities to foreign enterprises.

Minister of Planning and Investment Vo Hong Phuc said the government’s central task in 2007 would be to effectively enforce laws to make the business environment more friendly.

The government was focusing on administrative reform, fighting corruption, and other measures to bolster the country’s competitiveness as an FDI destination.

It would encourage investment in information technology, electronics, biotechnology, and agro-forestry and seafood processing.

Source: Thoi bao Kinh te Vietnam – Compiled by Ha Dong

Japanese investors explore opportunities in central Vietnam


Nineteen managers and chief representatives of Japanese businesses in Vietnam visited the central province of Thua Thien-Hue last week to seek investment opportunities.

The entrepreneurs, who included Canon Vietnam general director Kageyama Sachio, focused their inquiries on the province's investment promotion strategy, the one-stop licensing service, possible issues in business operations and land lease prices at a working session with local authorities on Dec. 21.

Chairman of the Thua Thien-Hue provincial People's Committee Nguyen Xuan Ly assured his guests that the province would offer open and favorable conditions to all investors.

The chairman also informed them of the potential and preferential investment policies for former imperial Hue city, the Chan May-Lang Co economic zone and the Phu Bai industrial zone.

Ichikawa Kyoshiro, a senior Japanese investment advisor in Vietnam, said that the number of Japanese-invested projects in Vietnam rose from 107 in 2004 to 121 by the end of November 2006.

The figure is expected to increase to between 130 and 140.

As much as 80 percent of the capital was poured into the manufacturing industry, he added.

However, he noted, there are only four projects in Thua Thien-Hue province.

Source: Asia Pulse News

Time ripe for investors in Vietnam: Siemens chief


Vietnam is one of the world's last emerging markets worthwhile for foreign investors but much remained to be done to further improve its investment environment, Hans Beil, Siemens Vietnam CEO, said.

"Vietnam is an interesting business market endowed with many advantages over other countries."

He pointed to its political stability, improving infrastructure, and favorable geographical location providing access to other markets in the region like Laos and Cambodia.

Its WTO accession was “a big success" and would bring about a lot of business opportunities.

"That is the reason why we want to expand our business in Vietnam.”

Bell believed Vietnam would attract greater foreign investment and its economy would continue to grow at around 8 percent after it joined the world largest trade body.

It was unlikely its economy would see a growth bubble, which would be an indication of crisis.

"The economy will grow more but I think the government will try to cool it down so that the growth will be stable and reliable," he elaborated.

Germany-based Siemens first began exploring the Vietnam market in 1979, but its business activities took off 10 years later with the construction of the 140Mbit/s transmission link between Hanoi, Da Nang, and the Mekong Delta.

Beil said the company planned more campaigns to promote its image to show the Vietnamese market that Siemens was not just a mobile phone maker as people thought.

Its future plans included expanding its range of investment in power, communications, automation, education, healthcare, and water and waste treatment.

Source: VNS