20 million USD project gets investment licence in Hai Phong

20 million USD project gets investment licence in Hai Phong

12/01/2008 -- 7:31 PM

Hai Phong (VNA) – Sin Chi Viet Nam Co., Ltd on January 11 received an investment certificate for its 20 million USD project to produce kitchen utensils, automobile and electronic components from aluminum alloy in the northern city of Hai Phong .

Work on the construction of the 13,000sq. m plant is scheduled to be start in February 2008 and when operational next year, the plant is expected to generate jobs for about 300 workers.

Sin Chi Viet Nam Co., Ltd was established by China ’s Sin Chi International Limited with a chartered capital of 72 billion VND (4.5 million USD)-Enditem

(VN Agency)

Bao Minh, Vietnam Airlines strike 4 billion USD deal

Bao Minh, Vietnam Airlines strike 4 billion USD deal

12/01/2008 -- 8:58 PM

Ha Noi (VNA) – The Bao Minh Insurance Corporation, the second largest insurer in Viet Nam, and the national flag carrier Viet Nam Airlines on Jan. 11 came to terms on a new 4 billion USD contract for 2008.

Under the contract, Bao Minh will insure the airlines’ liability, aircraft and some 9 million passengers expected in 2008 in line with international regulations and standards.

Last year, Vietnam Airlines also signed a 4 billion USD insurance contract with Bao Minh and the Viet Nam Insurance Corporation (Bao Viet).-Enditem

(VNAgency)

New regulations govern petroleum imports, re-exports

New regulations govern petroleum imports, re-exports

12/01/2008 -- 9:43 PM

Ha Noi (VNA) – The Ministry of Industry and Trade has issued new regulations on refined petroleum imports and re-exports. Under Decision No.01/2008QD-BCT, only businesses with licences granted by the ministry may import or export petroleum products. The ministry will grant licences based on domestic supply and market prices in order to avoid negative impacts on the domestic market. Payments for exported petrol must be made in convertible currencies in accordance with regulations provided by the State Bank of Viet Nam , the decision states. Payment must be in Vietnamese dong for petrol sold to enterprises in export processing zones, industrial parks or high-tech zones. Payments for sales to Vietnamese airlines and vessels which operate international routes must also be made in dong. Petroleum exporters are also required to take responsibility for sale prices as the State will not compensate for petroleum exported at a loss. Temporarily imported petroleum products intended for re-export, the decision stipulates, may be imported in large lots and then either re-exported en masse or stored in domestic warehouses in smaller lots. Petroleum products temporarily imported but subsequently not re-exported or not re-exported in their entirety may be retailed for domestic use upon completion of all taxes and other financial obligations. Viet Nam exports crude oil but has to import all refined products. Despite fetching more from crude oil exports last year due to high global prices, the additional earnings were not enough to offset losses for imported petroleum products and subsidised retail prices, said the ministry.-Enditem (VNAgency)

EVN reports high revenues, drooping profits

EVN reports high revenues, drooping profits

12/01/2008 -- 9:06 PM

Ha Noi (VNA) – Electricity of Viet Nam (EVN) on January 11 said it sold 58 billion kWh of electricity last year, an increase of 1.2 percent over the yearly target and 13.4 percent over 2006.

The country’s largest electricity producer said strong electricity sales helped bring in total revenue of 56 trillion VND (3.5 billion USD) last year, up 22 percent. Of this, net profits totalled 1.4 trillion VND (87.5 million USD), down 27 percent.

EVN attributed the decrease in profits to a number of difficulties in 2007, including unstable gas supplied for gas-fuelled plants and the sudden breakdowns of several power plants and transmission lines.

According to EVN, close to 66.6 billion kWh of electricity were produced in the country last year.

EVN general director Pham Le Thanh said that the State-owned electricity producer last year invested 36 trillion VND (2.25 billion USD) in business expansion. Of this, 15.4 trillion VND (962 million USD) went to electrical production and 11.4 trillion VND (712 million USD) to distribution.

Last year the corporation also began construction on 23 new power plants, which combined would produce 6,810MW of electricity by 2010.

However, a number of new power plants are already operational as of this past year, including Uong Bi MR1 thermal power plant and Quang Tri, Dai Ninh and Tuyen Quang hydro electric plants.

EVN last year also finished constructing and began operation of a number of electrical lines like the 220kV transmission line connecting China to Viet Nam and a 220kV transmission line connecting Tuyen Quang and Ha Noi’s Soc Son district.

Thanh said the company plans to sell 67.4 billion kWh this year, up 15 percent over 2007, and targeted a revenue of 58 trillion VND (3.6 billion USD), up 3 percent year on year.

The company has stated that demand for electricity grew by 15 percent yearly between 1995 to 2005, and the growth rate was expected to reach 16 percent between 2007 and 2010.

This soaring demand is attributed to both increasing industrial and residential use. Many power shortages are expected in the upcoming period if measures are not taken to increase the power supply.

Over the 2006 to 2010 period, an investment of over 16 billion USD is needed for the development of new transmission and distribution systems in EVN and IPP (Independent Power Plant) projects.

Around 44 new power generation projects are also necessary.

Financing for this development is expected to come from EVN’s own funds, Official Development Assistance loans, Viet Nam’s Development Assistance Fund, commercial loans and foreign export credit, as well as from IPP developers.-Enditem

(VNAgency)

Int’l trade exposition on big names opens

Int’l trade exposition on big names opens

12/01/2008 -- 9:47 PM

Ha Noi (VNA)- The Viet Nam-WTO Trade Exposition-2008 was opened in Ha Noi on January 12 to give the public an overview of Viet Nam’s economy in the first year of its World Trade Organisation membership.

In his opening speech, Deputy Minister of Industry and Trade Nguyen Thanh Bien highlighted the event as a venue of famous trademarks from countries with huge investments in Viet Nam .

It is also the exhibition of achievements recorded by ministries, industries and localities as well as promotion of the country’s tourism, services and fine art articles.

Head of the organising board Luong Van Tu described the event as a big opportunity for businesses to sign trade and investment deals, on both bilateral and multilateral basis.

During the exposition, there will be workshops on the Vietnamese stock market and foreign investment.

The event will last till January 17.--Enditem

(VNAgency)

Another investor conference on the way

Another investor conference on the way

12/01/2008 -- 9:43 PM

Ha Noi (VNA) – The Ministry of Finance and EuroEvents will hold the Viet Nam Finance and Capital Markets 2008 conference in Ha Noi on January 23-34.

Topics covered during the conference will be investment opportunities for foreign and domestic investors; the equities and securities market; corporate and government bonds; IPO and equitisation; key government initiatives; market surveillance, compliance and the latest regulatory issues; bond trading; investment funds; the reforming banking sector; and the development of professional services.

Following the success of last year’s version, this year’s conference will look at the development of the capital market and opportunities for both domestic and foreign investors.

The event is expected to draw over 500 people to hear a broad range of speakers discuss the latest issues affecting Viet Nam ’s finance and capital market, as well as the outlook for the future.

Viet Nam has been touted as the newest ‘economic dragon’ after its economy underwent rapid transformation to become the most promising in Southeast Asia .

In 2006, Viet Nam attracted FDI capital of 12.2 billion USD, a two-fold increase against 2005. Last year, Viet Nam reached 20.3 billion USD in FDI, almost double that of 2006.

Banks around the world are predicting another astonishing year for Viet Nam in 2008 with economic growth of around 9 percent.-Enditem

(VNAgency)