BUSINESS IN BRIEF 17/6
10:35' 17/06/2007 (GMT+7)
http://english.vietnamnet.vn/dataima...339577_ck5.jpgVN-Index increases 5.4 points as foreign investors open more accounts
The VN-Index on the Ho Chi Minh City trading floor rebounded for the second consecutive day, closing 5.4 points, or 0.52 percent, higher to finish at 1,048.19 by the end of trading, on June 15. Analysts said that stronger buying by foreign investors was fueling the recovery.
Vietnam’s oldest bourse saw close to 5.68 million shares traded at a recorded value of VND 601.48 billion. Hanoi’s HASTC-Index lost 2.40 points to close at 313.47.
A number of blue-chip stocks such as IT giant FPT were among the 39 shares that gained on the day. 45 shares depreciated and 25 saw no change.
Hanoi floor suffered a minor dip of 2.4 points to end up on 313.47 points. Trade volume was also lower than usual as 1.16 million shares were traded, valued at VND 109.67 billion.
The Asia Commercial Bank, ABC, and the Saigon Securities Inc. (SSI) enjoyed slight rises in trading volume.
Experts attributed the rally of the Ho Chi Minh City bourse to increasing interest from foreign investors in the market.
Foreign investors were net buyers investing VND 209 billion, or 36% of the total turnover, in stocks like PPC, VNM, VSH, KDC and FPT. A number of foreign investors recently opened new accounts with major securities companies such as Bao Viet and SSI.
MPI finds way for higher growth rate
Every resource would be mobilised an every effort will be made to improve the competitive edge and the performance of the economy in 2008, said Minister of Planning and Investment Nguyen Hong Phuc.
Minister Phuc made the remark at a national conference of the planning and investment sector in Thanh Hoa province on June 14 to map out a socio-economic development plan for 2008.
Under the development plan, the country targets a GDP growth of 8.6-9% over 2007; a total export revenue of US $55.2 billion or a 18% year-on-year increase; and about 1.65 million new jobs.
According to the Ministry of Planning and Investment, to achieve these targets, ministries, sectors, localities and economic groups have to take all necessary measures to speed up economic growth, while improving the effectiveness, sustainability and competitiveness of the economy in the international integration process.
On the implementation of the 2007 tasks, Minister Phuc said that in the first half of this year, the socio-economic development saw a rather high growth rate, but it was still below the set target. To attain this year’s target of 8.5%, the country has to strive for a 9% growth rate in the 2nd half of the year.
Vietnam and Spain step up fisheries co-operation
Vietnam and Spain have agreed to step up co-operation in fisheries following the signing of a memorandum of understanding in Ho Chi Minh City on June 13.
The MoU was inked by Deputy Fishery Minister Luong Le Phuong and Secretary General of Fisheries Juan Carlos Martin Fragueiro of the Ministry of Agriculture, Fisheries and Food of Spain.
The two sides will work towards promoting sustainable development of the fisheries, aquaculture and seafood trade of each country through co-operation in related techniques, technologies, and surveillance activities.
A joint committee for co-operation will be set up to monitor the execution of the MoU and broaden bilateral co-operation.
New IZ to take shape in Bac Ninh province
The Bac Ninh provincial People’s Committee and the Republic of Korea (RoK)’s IGS group will establish Nam Son-Hap Linh industrial zone (IZ) in Tien Du district, Bac Ninh province, 35 km north of Hanoi.
The complex will include a 800 ha IZ and a 200 ha urban area.
As agreed, the RoK group will invest in infrastructure to form a modern IZ-urban area complex which will comprise a trade-service area, ho****als, schools, and entertainment areas.
Meanwhile, in another IZ of the province, the Shihen Vietnam ltd company has broken ground for its US $5.5 million plant for electronic component part production and assemblage. The plant, based in Tien Son IZ, is expected to turn out 6 million products per year.
Hanoi tightens management of foreign offices
So far this year, 50 Hanoi-based foreign representative offices have closed down, while 120 other foreign representative offices have received licenses for operation.
The municipal Trade Service said it has conducted regular visits to foreign representative offices to make sure that they operate in line with granted their licences as well as to give timely assistance to them in resolving difficulties.
Most recently, a Chinese representative office was fined VND 30 million and a tourist agency from Thailand was punished for violating rules on their licences.
The Hanoi Trade Service on June 1 aired an online-licence granting and managing programme in relation to foreign representative offices.
Chu Lai EZ offers special incentives to investors
Investors will enjoy special preferential policies if they choose the Chu Lai Open Economic Zone (EZ) in central Quang Nam province for their investment.
At a seminar on June 13, the EZ’s Management Board said investors cam lease land for up to 70 years in the zone and they will be exempted from paying rent for the first ten years.
The EZ’s Management Board will be responsible for relocating people to clear the ground and providing electricity and water for investment projects.
In addition, investors will enjoy a business income tax rate of 10% in the first 15 years.
The EZ is calling for investment in projects to build the Chu Lai airport, the Ky Ha port system, infrastructure, and urban areas and housing for workers.
Quang Nam authorities pledged to create favourable conditions for investors through the simplification of administrative procedures.
Investors attending the seminar paid special attention to projects to build new urban and residential areas, tourism and service centres in the zone.
Chu Lai has so far attracted 58 projects with a total registered capital of US $531 million. Of them 21 projects are operational and 21 others are under construction.
RoK textile makers turning to Vietnam
Vietnam has become an attractive investment destination for textile businesses from the Republic of Korea (RoK) after the country joined the World Trade Organisation (WTO), the Korea Trade-Investment Promotion Agency (KOTRA) said in a recent report.
KOTRA called more RoK businesses to move their “plants to Southeast Asian countries such as Vietnam.”
The report focused on the change in the business environment for the textile industry in Vietnam following the country’s entry into the WTO, and how Korean businesses can capitalise on it.
In 2006, RoK textile companies boosted investment in Vietnam by 53.7% over the previous year. This makes Vietnam the second-largest investment destination for the RoK textile industry, after China.
Among the top 20 textile exporters in Vietnam six are from the RoK, the KOTRA report said.
KOTRA attributed the surge in investment in Vietnam’s textile industry to low-cost labour, Vietnam’s skilled workforce, various incentives for foreign investment and the Vietnamese government’s strong will to attract foreign investors.
Vinashin brings lawyers’ association on as consultants
The Vietnam Shipbuilding Industry Group (Vinashin) and the Vietnam Lawyers’ Association inked a strategic cooperation accord on June 16.
Under the accord, the Lawyers’ Association will assist the group in providing legal consultancy to its subsidiaries in order to help them become more familiar with international rules and norms.
Attending the signing ceremony, Deputy Prime Minister Truong Vinh Trong applauded the cooperation and suggested the Lawyers’ Association should extend its consultancy work to include other large economic groups inside the country.
Hearing aid factory opens in Binh Duong
The Swiss invested Phonak Operation Center Vietnam. Co. Ltd. spe******ing in designing and manufacturing hearing aids and other digital equipment opened on June 15 in the southern province of Binh Duong.
The 1.23 million USD facility is located at the Vietnam-Singapore Industrial Park and Phonak’s third center worldwide, besides two others in Swizerland and China, according to the group’s chief executive officer Valentin Chapero Rueda.
“The Vietnam-based facility will also be involved in manufacturing headphones, microphones, radio-transmitters and hitech wireless communication equipment for export to Western Europe and Northern America,” he added.
The CEO cited low labour costs as well as good infrastructure and skilled labourers as among the reasons behind Phonak’s decision to invest in the park.
Licensed in May last year, Phonak Operation Center Vietnam Co.Ltd. has become the 135th firm to become operational in the park.
Headquartered in Stafa, Swizerland, the Phonak group is a world leader in the design, development, production and distribution of technologically advanced wireless and hearing system.
Vietnam, Laos move to boost trade
A fair opened in Savannakhet province of Laos on June 16 to promote investment and trade with Vietnam.
The fair is part of activities to celebrate the 45th anniversary of Vietnam-Laos diplomatic ties and the 30th anniversary of signing an agreement on friendship and cooperation.
It also marks the start of the Vietnam-Laos Investment Promotion Conference, which will take place at the Lao Bao Special Trade Economic Zone in Quang Tri province of Vietnam.
The trade fair, which will accommodate 195 booths, including 20 pavilions for Vietnamese companies, will display mainly garments and textiles, electronics, fi ne art articles and home electric appliances.
It is also aimed at promoting investment in the Densavan Trade Economic Zone of Laos and the Lao Bao Special Trade Economic Zone.
The five-day event is co-hosted by Savannakhet province and central Quang Tri province.
Vietnam-Hungary business association set up
The Vietnam-Hungary business association made debut in Ha Noi on June 15, becoming the country’s first foreign-related business association.
Vice Chairman of VPBank Management Board Nguyen Quang A was elected the association’s President.
The association will facilitate Vietnamese businessmen to conduct market study in Hungary and help expand operation of Vietnamese and Hungarian businesses in the EU as well as other markets.
It will also call on the Vietnamese businesses community in Hungary to invest in Vietnam.
(Source: VNA)