Viet Nam Finance: Viet Nam

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Tuesday, January 15, 2008

Vietnam needs ‘markets to stay stable’ for overseas bond sale


Dung Quat Oil Refinery under construction in central Vietnam will use part of the proceeds from this quarter’s bond issues by the government

The government will sell a US$1 billion foreign currency-denominated bond as soon as the global markets improve, according to the finance minister.

“We are closely watching the movement of international financial markets and need the markets to just be stable for a couple of weeks to sell the bond,’’ Finance Minister Vu Van Ninh said in an interview at a conference in Hanoi recently.

Concerns over the worst housing slump in 27 years reining in the US economy is deterring investors from high-risk, high-yield debt.

The Southeast Asian nation delayed the bond sale, which was initially scheduled for September and will be its second overseas security, due to turbulence in the markets.

The global markets are still not in a favorable condition for Vietnam to sell the bond, Ninh said.

The risk of companies and governments in Asia excluding Japan defaulting on their debt has increased on concern about the US slowdown.

The region’s index of 20 high-risk, high-yield borrowers rose by 47 basis points to 3.79 percentage point Sunday from January 2.

A basis point is 0.01 percentage point.

“All the necessary preparations have been completed, we are just waiting for the market to get better,’’ Nguyen Thanh Do, director of the finance ministry’s external financing department, said in a telephone interview from Hanoi.

The government plans to market the bond to investors in Singapore, where it will be listed, one week ahead of the auction, Do said.

The sale is being managed by Barclays Capital, Citigroup Inc. and Deutsche Bank AG.

The Ministry of Finance late December had postponed the plan to sell $1 billion of dollar-denominated sovereign bonds until the first quarter of this year due to strong dollar liquidity at home.

The issue, originally scheduled for October, has been delayed twice.

The reason for the delay was that the government worried about the influx of dollars into the economy but we figured the impact would be minimal as most of the dollars raised from the bond sale would be spent overseas for equipment import, according to the ministry.

The government is to lend part of proceeds from the debt to state oil group PetroVietnam to import equipment for the $2.5 billion Dung Quat refinery, the Southeast Asian country’s first.

Other recipients of the proceeds include state-owned shipping firm Vinalines, Song Da Corp. and engineering firm Lilama, to buy cargo tankers and build power plants in Laos.

In October 2005, Vietnam sold its debut Eurobond worth $750 million, having received orders for more than $4.5 billion.

The issue helped set a benchmark for the country’s creditworthiness and similar issues by domestic firms.

Source: Bloomberg/Reuters

Monday, January 14, 2008

French firm puts tanning factory into operation

French firm puts tanning factory into operation

14/01/2008 -- 9:07 PM

Dong Nai (VNA0 – France’s Rostaing Viet Nam has put a 2 million USD tanning factory into operation in the Long Thanh industrial park in the southern province of Dong Nai.

The factory has a designed output of between 30,000-40,000 sq.m. a month.

Rostaing Viet Nam has been in the country for 13 years, involving in manufacture of rubber, plastic and leather products to exports to European markets.

It already has plants in Bien Hoa II and Ho Nai industrial parks in Dong Nai.-Enditem

(VNAgency)

Vietravel to welcome 2,200 foreigners in January

13/01/2008 -- 9:02 PM

Ha Noi (VNA) – Vietravel, on of the country’s biggest travel company, is preparing to welcome at least 22,000 foreign visitors, who will arrive later this month, before Viet Nam’s traditional New Year holiday.

More than 1,500 tourists from Japanese and 700 from Thailand , Malaysia , France , German and the Netherlands have registered for tours through the company.

Over 2,000 domestic visitors have booked tours in January through Vietravel, a 15 percent year-on-year increase.

More than 2,000 other people have registered for tours during Tet, which falls on February 7, and the figure is expected to increase to 3,000, a company representative said.

According to Vietravel, most attractive destinations are Nha Trang, Da Lat, Phan Thiet, Ha Noi and Ha Long. Meanwhile, favourate outbound markets for Vietnamese tourists include China , Hong Kong , Thailand and Singapore as well as the US and Australia.-Enditem

(VNAgency)

Sunday, January 13, 2008

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)

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

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)

Thursday, January 10, 2008

Viet Nam’s economy to grow at 8.2 percent in 2008, says WB

10/01/2008 -- 11:32 AM

Ha Noi (VNA) – The World Bank (WB) has launched the Global Economic Prospects 2008 (GEP 2008), saying that Viet Nam’s economy will grow at 8.2 percent in 2008 and 8.3 percent in 2009.

The WB report, released on January 9, said that resilience in developing economies is cushioning the current slowdown in the United States, with real GDP growth for developing countries expected to ease to 7.1 percent in 2008, while high-income countries are predicted to grow by a modest 2.2 percent.

GDP in East Asia and the Pacific is expected to grow at 9.7 % in 2008 and 9.6 % by 2009, the WB said, adding that the effects from the turmoil in the world’s financial centres may be small in most economies in the region.

The WB also said that developing countries, including Viet Nam, should enhance their ability to absorb technologies to ensure further economic growth in the future. –Enditem
(VNAgency)

Wednesday, January 9, 2008

Dong hits one and half year high on strong dollar inflows

The Vietnamese dong rose to a 1-1/2-year high against the dollar Monday as foreign investment and remittances continued to flow into the country, bankers said.

The dollar was traded on the interbank market at VND15,980, its lowest since June 19, 2006.

Commercial banks in Hanoi were also buying dollars from retail consumers at about VND15,980 to VND15,985, down 1.7 percent from a peak of VND16,251 on August 17 last year, bankers said.

“Demand for the dong at year-end and the very strong dollar sup-ply from foreign investors are the main factors behind the dollar’s fall,” a banker in Hanoi said.

She said clients had started with-drawing dollar deposits to change into dong to avoid foreign exchange losses as they expected the dollar to continue losing value against the dong this year.

“It makes sense now to save your money in dong because of the higher interest rates and the falling dollar,” another banker in Hanoi said.

Twelve-month dong deposits offer nine percent to 10 percent, twice the interest on dollar deposits of about 4-5 percent, he said.

Foreign direct investment, including pledges for new projects, reached around US$20 billion last year while remittances from Vietnamese living overseas were expected at a record $10 billion, state media reported this week.

In the interbank market, rates on overnight dong loans from state-run Agribank, Vietcombank and Vietindebank stood at 7.0 percent to 8.0 percent, almost unchanged from last week’s range of 7.0 percent to 8.2 percent.

Source: Reuters

Three foreign banks to open branches in Vietnam

Taiwan's Taipei Fubon Bank, Industrial Bank of Korea and Commonwealth Bank of Australia would open branches in Vietnam, one of Asia's fastest growing economies.

The State Bank of Vietnam said in a statement seen on Wednesday it would soon license the three banks to open branches, joining around 30 foreign banks already operating nearly 40 branches in the country.

The statement on the central bank's Web site (www.sbv.gov.vn) did not say when and where the three banks would open branches.

The Industrial Bank of Korea has a representative office in Ho Chi Minh City, Vietnam's commercial and financial centre.

The central bank also said it had given initial approval for the establishment of five more domestic joint stock banks, which taking to nine the number of such Vietnamese banks awaiting a licence.

It said the five were Energy Bank, Asia Foreign Trade Bank, Vietnam Star Bank, Dong Duong Thuong Tin Bank and Bao Tin Bank. Late last year, the Oil and Gas, Lien Viet, Bao Viet and FPT banks also secured initial approval.

Apart from six state-run banks and 35 domestic partly private banks, 35 foreign banks which have a combined 14 percent share of the loan market, six venture banks, four financial leasing ventures, two wholly foreign owned financial leasing firms and 50 representative offices of foreign banks also operate in Vietnam.

The country has about 4,000 bank branches, half of them run by state-run Agribank, Vietnam's largest enterprise.

A Planning and Investment Ministry official has said Vietnam wanted to limit credit growth to 22-25 percent this year after inflation hit 12.63 percent in December, the highest since December 1995, when the CPI spiked 12.7 percent.

The central bank said loans jumped 37 percent last year in an economy that grew 8.48 percent. The government aims for 9 percent growth this year.

Source: Reuters

Viet Nam to facilitate foreign investment, says PM

08/01/2008 -- 6:55 PM

Ha Noi (VNA) – Prime Minister Nguyen Tan Dung has affirmed that the Vietnamese Government would create all favourable conditions for foreign investors to be successful in Viet Nam .

The government leader made the statement at a business roundtable which opened in Ha Noi on January 8. The two-day event under the theme “ Viet Nam : Asia’s Rising Star” was held by the UK ’s magazine “The Economist” in collaboration with the Vietnamese Ministry of Foreign Affairs.

Viet Nam is a dynamic market economy which sees many development prospects and has become an increasingly attractive destination for investors, PM Dung said.

The Southeast Asian country recorded an average annual economic growth of more than 8 percent over the last three years. It has set a target of 8.5-9 percent GDP growth in 2008.

In 2007, the country attracted a record foreign direct investment (FDI) of more than 20.3 billion USD, a year-on-year increase of about 70 percent. Official development assistance (ODA) from foreign donors hit 5.4 billion USD, 20 percent higher than the previous year.

PM Dung said despite remarkable achievements in 2007, Viet Nam remains a developing country where people have low income and the economy sees low efficiency and competitiveness. He also cited high inflation, poor infrastructure and slow administrative reform, as well as corruption as other difficulties facing the country.

To overcome the above-mentioned obstacles, the government leader said, Viet Nam is required to link economic growth with targets on poverty reduction, environmental protection and improvement of living conditions.

Also at the conference, Deputy PM-cum-Foreign Minister Pham Gia Khiem reiterated the Government’s determination to carry out administrative reform, perfect the legal system, make business environment healthier and drive back corruption.

The Government will be streamlined to reduce the overlapped management and poor performance, Khiem said.

According to the deputy PM, Viet Nam appreciates the role of foreign partners, particularly international institutions and foreign businesses and the country would create a fair and equal playing ground for businesses of all sectors.-Enditem

(VNAgency)

CSR improves Viet Nam enterprises’ competitiveness

08/01/2008 -- 6:59 PM

Ha Noi (VNA) – Viet Nam enterprises are tightly holding the best opportunity as they strategically work with CSR matters and thus can creates considerably competitive advantage for Viet Nam’s export markets.

Peter Lysholt Hansen, the Viet Nam-based Danish Ambassador, made the remark in his opening address at the Danish-Vietnamese conference entitled “Improving Viet Nam’s Competitiveness through Corporate Social Responsibility” in Ha Noi on January 8.

“ Denmark is one of Viet Nam ’s development partners and we believe that CSR can contribute to further positive development in Viet Nam , to a sustainable development combining economic and social concerns”, said the Ambassador.

Viet Nam has gained considerable economic growth in recent years as a result of the Government’s open economic policy and the country’s efforts in the economic development. The export growth also helps enterprises to better integrate into the global market.

Ole Blondal, Director General of the Danish Commerce and Companies Agency, believed that CSR is a growing demand worldwide and a competitive prerequisite for any enterprises and Viet Nam is a typical example for effective CSR implementation.

“Viet Nam’s government and enterprises know how to share their responsibility in an effort to better working conditions as well as environment for employees”, said Blondal.

Most of the reports delivered at the conference highly appreciated CSR’s role in strengthening competitiveness capacity.

“Now and in the future, CSR can provide competitive edge, making the distinction between weak and strong companies”, said the Ambassador.-Enditem
(VNAgency)

Eighty FDI businesses awarded for good performance

08/01/2008 -- 6:55 PM

Ha Noi (VNA) – Eighty foreign direct investment (FDI) enterprises operating in Viet Nam have been granted the Golden Dragon Award for their good business performance in 2007.

The award winners, who have been selected from nearly 500 entries, are operating in the areas of automobile and motorbike manufacturing, agriculture, forestry, aquaculture, food processing, beverage, construction, financing, banking, insurance, electronics, information technology, telecommunications and oil and gas.

The organising board, the Vietnam Economic Times and the Ministry of Planning and Investment’s Foreign Investment Department, told a press briefing in Ha Noi on January 8 that the criteria for selecting the winners were based on their business results in 2007 and recommendations from Planning and Investment Departments at localities as well as distributors, clients and employees.

The success of the operating FDI businesses will encourage other foreign companies to enter the country, the organising board further said.

Viet Nam attracted a record foreign direct investment of more than 20.3 billion USD, a year-on-year increase of about 70 percent.-Enditem

(VNagency)

Plastics rake in 700 million USD in revenues

08/01/2008 -- 7:26 PM

Ha Noi (VNA) – Viet Nam’s plastics export turnover struck 700 million USD, a year-on-year increase of 46 percent, according to the Ministry of Industry and Trade.

In the first 11 months of the year, the country’s plastics export earned 641 million USD, surpassing this year’s target of 600 million USD.

To reach the target, the sector focused on investment in developing plastic materials, high quality production and waste plastic processing, said Le Duong Quang, deputy minister of Industry and Trade.

Nguyen Hoang Ngan, Binh Minh Co director said: “Right now, domestic producers like us are building modern factories and using alternative channels to source raw materials for plastic goods production.”

According to the ministry, 90 percent of plastic materials for production are imported, particularly from Asian countries such as Thailand , China and Singapore .

To reduce dependency on imported materials, the industry plans to produce 800,000 tonnes, or 30 percent of the total material needed for plastic production by 2010.

By 2010, the industry hopes to earn 1 billion USD through the export of 4 million tonnes of plastics.

However, it’s difficult to reach the target due to the nation’s lack of petrochemical industry – the main supplier of material for plastic production. While, the sector is yet to fully exploit waste plastic materials, said Quang.

The Viet Nam Plastics Association said the US , Japan , Switzerland , Norway , the UK , Germany and Cambodia were the biggest importers of the country’s plastic products including packaging, canvas and gloves.-Enditem
(VnAgency)

Viet Nam, Laos ink deal on oil exploration

08/01/2008 -- 8:07 PM

Vientiane (VNA) – Viet Nam and Laos have signed a contract on oil exploration in Lao southern provinces of Champasak and Salavan.

Vietnamese Permanent Deputy Prime Minister Nguyen Sinh Hung and his Lao counterpart Somsavad Lengsavat witnessed the signing ceremony held in Vientiane on January 8.

The PetroVietnam Oil Exploration and Production Corporation (PVEP) will be responsible for the exploration work, which covers 14,140sq.km of the two provinces.

PetroVietnam’s Chairman of Management Board Dinh La Thang pledged to cooperate closely with Lao relevant agencies and authorities to successfully implement the contract.-Enditem
(Agency)

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