Capital industrial production soars
Hanoi’s index of industrial production (IIP) this month increased 7.8 percent over last month, and rose 12.1 percent compared with the corresponding period last year, the General Statistics Office have announced.
The figures released by the office show that most industrial sectors saw IIP increase on the previous month. The exceptions were the weaving sector, which dropped 12.6 percent, and the pharmaceutical chemistry industry, which saw its figure fall 0.2 percent.
The mineral industrial rose 21.5 percent, processing and manufacturing increased by 7.8 percent and electricity production recorded a 1.3 percent hike.
The IIP in the first four months of the year increased 4.9 percent over the same period last year. Key sectors are performing well, with weaving up 44.5 percent chemical production up 52.1 percent and metal production up 12.1 percent.
The office said that while the IIP is not the same as high growth rate, its rise indicates industry is remaining stable and sustainable throughout the economic difficulties.
Industrial businesses have striven to save costs by improving production technology and seeking new markets to retain their growth rate.-HCM City targets exports jump
The municipal Department of Industry and Trade says HMC City targets export revenues of 34 billion USD this year, a year-on-year increase of 13.5 percent.
Excluding crude oil, export revenues are expected to reach 24.2 billion USD, up by more than 12 percent over previous year.
A Thoi Bao Kinh Te Viet Nam (Vietnam Economic Times) report on April 23 also cited the department as saying that State owned companies would account for around 70 percent of the city’s export revenue, and foreign invested companies for most of the remaining 30 percent.
To reach the target, the city will develop key product with high potential including garments and textiles, wood products and hi-tech products.
It is encouraging domestic and foreign firms to invest in trading materials used in footwear and garment industries, the majority of which are imported now.
The HCM City Garment, Textile, Embroidery and Knitting Association has been asked to help companies develop their production and design capacities in order to create high quality products.
The city is facilitating faster work on several projects in its hi-tech park, especially those that can go operational this year, so as to boost the export of hi-tech products.
Toward this, the IT sector has been asked to organise fairs and exhibitions and undertake other activities that will help local firms widen their export markets.
Steady progress has been made in the export of electronic, mechanical and hi-tech products, and effort will be made to improve on this.
In the wood industry, the city is urging companies to cooperate with each other and create an efficient production chain. It is encouraging the production of interior decoration productions made of wood and wants to establish an exhibition centre to showcase them.
In recent years, many of the city’s agricultural exports including rice, coffee, rubber and seafood have developed well, the department said.
HCM City ’s products are exported to 228 nations and territories. The city’s exports to neighbouring countries including Cambodia and China have strongly increased in recent years, the department said.
As prices fall, offices attract tenants
With rental prices for office space falling, the commercial real estate market in Hanoi is showing signs of life.
According to CBRE, during the first quarter of 2013, Hanoi’s net absorption of office space increased to 16,000 square metres, a hefty 15 per cent higher compared to last year’s first quarter when net take-up reached 14,000sqm.
This number can be mainly attributed to the Grade B office market, which amounted to more than 10,000 sqm.
Landlords of Grade B buildings in the West Hanoi have decreased their rents by 12 per cent quarter-on-quarter and by a staggering 29 per cent year-on-year.
Decreases in rent clearly cut developers’ revenue margins, but this strategy seems to be paying off as over 80,000sqm net has been absorbed in the past 12 months and this trend seems to stay intact for at least 2013.
“The mindset that vacancy is costlier than leased space has evidently been adopted by the landlords in the West Hanoi,” said Greg Ohan, director of office services at CBRE Vietnam.
Overall, the Grade B asking rents steadily keep on going in the same downward direction. This trend started back in 2010 and there are currently no signs in the market that the rents are bottoming out as is currently the case in Ho Chi Minh City. The Grade B asking rents have dropped 7.3 per cent quarter-on-quarter and 18.8 per cent year-on-year. For Grade A this amounts to a plus of 1.25 per cent quarter-on-quarter but a 10.25 per cent decrease year-one-year.
The CBD witnessed significant changes in vacancy, with grade A jumping from 5 per cent to 24 per cent which can be fully contributed to the completion of the CornerStone Building, adding 26,500 sqm of net leasable area to Hanoi’s office stock. Based on its prime location and building quality CBRE expects strong demand for the CornerStone Building in the course of this year.
For the whole Hanoi Grade A office market, vacancy increased from 23 per cent to 30 per cent quarter on quarter. The Hanoi’s grade B office market saw a drop in availability from 22 per cent in the final quarter of last year to 19 per cent this quarter.
Ohan forecasted that 490,000sqm of new supply would be delivered in the remaining nine months of this year, of which 400,000sqm in the second quarter.
“An important note that has to be made is that only 40 per cent is currently under completion period and as such one can assume that ‘only’ 160,000sqm is likely to be completed within the second quarter’s timeframe,” he added.
According to CBRE, for any tenant with a lease expiry in 2013, the critical components of success are timing and speed. For occupiers considering the West, due to ongoing high take-up in the first quarter of 2013, many of the newer Grade A and Grade B buildings are beginning to experience rising occupancy levels. Therefore incentive packages will be gradually reduced, however, significant supply still remains.
For tenants who prefer the CBD, it is unlikely to secure significant cost savings as landlords in the CBD have not decreased their rents as much as their competitors in the West. However, with major occupiers still moving West, CBRE expects an opportunity for occupiers in the CBD to capitalize on short term availabilities in key buildings.
Lotte’s ‘ao dai’ tower rises higher in Hanoi
Lotte Coralis has revealed plans to top out the 65-storey Lotte Centre Hanoi building this July.
Lee Jong Kook, president of Lotte Coralis Vietnam, told VIR that this would be a big milestone for the second highest building in Hanoi and the third highest building nationwide, to mark the finishing of the framework of the “ao dai” (Vietnam’s traditional dress) shaped building.
As of last week, the construction was at the 62nd storey of the framework and was at the 52nd storey of glass covering.
Lotte started construction on the $400 million tower in October 2009. When finished, it will house more than 42,200 square metres of department store space. Inside, there will also be 300 hotel rooms, while 63,500sqm will be earmarked for office space.
Serviced apartments are to take up about 40,000sqm and there is provision for 1,130 parking spaces.
Different from other projects, all facilities of Lotte Centre Hanoi including hotel, serviced apartments and trading centre will be put into operation at the same time, in June 2014.
“Time is limited but we are trying to race and finish the whole project as scheduled,” Kook said.
“Although the real estate market is suffering downturn in Vietnam, our project has been implemented smoothly and on schedule,” Kook said.
He added that the company had contacted big international tenants to prepare for the leasing the property’s facilities.
When completed, the Lotte tower will be the third highest in Vietnam behind the 72-storey Keangnam Hanoi Landmark Tower in Hanoi and Ho Chi Minh City’s Bitexco tower which has 68 storeys.
Located at the corner of Lieu Giai and Dao Tan streets, the building’s unique architecture is inspired by Vietnam’s traditional dress.
Lotte Coralis is one member of Lotte Group which entered the Vietnamese market in 1996 and has since expanded its operations into the food, retail, cinema and construction sectors. It has eight subsidiaries and is committed to continue accelerating its investment here.
It has become a familiar name with Vietnam through eight sub-companies running four different types of businesses in Vietnam such as Bibica, Bien Hoa sugar, Lotteria Vietnam, Lotte Vietnam, Lotte Vietnam Shopping, Lotte Sea Logistric, Lotte Vina International and Lotte Cinema Vietnam.
Lotte Group is also known for its commitment to corporate social responsibility. Last week it gave scholarships for 46 students of six universities in Hanoi with the total amount of $13,800 for the first semester of 2012-2013. Since 2008, Lotte Group has offered scholarships for excellent students from prestigious universities in Vietnam, China, Indonesia and Malaysia.
Foreign eyes light up at new MA deals
The glum real estate market in Vietnam has offered great opportunities for foreign developers to increase merger and acquisition activities.
Le Minh Dung, director of CBRE Vietnam, said the merger and acquisition (MA) trend had been moved back to foreign hunters, after the domination of domestic buyers in 2012.
“The MA trend has been clearly different in the first three months of this year, compared to last year, when domestic buyers dominated the market,” Dung said.
The market downturn has revealed many developers facing a shortage of investment capital and can not finish their projects, while the deadline to handover houses to customers had passed.
Stephen Wyatt, general manager of Knight Frank, said the company was experiencing high volumes of enquiries from international investors looking to enter Vietnam.
“We are certain 2013 will see an increased number of MA activities compared to 2012. Many foreign investors are looking at Vietnam, as they believe the property market is reaching the bottom, so professional investors can sense an opportunity to buy distressed assets,” Wyatt said.
“Despite market difficulties in recent times, many foreign investors still believe there is a huge upside when investing in Vietnam, whilst we still believe there is some further pain to come in the property market. The clever investors are sensing now is the time to look for good opportunities and we expect 2013 will be a year when foreign investment and MA activities reverses the trend of the previous years and starts to show an improvement,” he added.
Lotte Hotels Resort has just finished a deal to buy a controlling stake in the Legend Hotel in Ho Chi Minh City.
Gemadept Tower, an asset from Gemadept, was said to be sold at the price of more than $45 million to a Korean company. There has also been rumours that a big hotel and shopping complex of a local company in the downtown Ho Chi Minh City was sold to a foreign investor for around $400 million.
Phan Xuan Can, chairman of the Sohovietnam, said many transactions would soon be publicised because all investors were listed companies that needed to declare information.
Sohovietnam has recently helped Gemadept sell its office building at 108 Lo Duc street of Hanoi for more than VND50 billion ($2.3 million).
Sohovietnam is currently selling an office building worth $80 million in Hanoi and another 22-storey office and trading centre worth VND700 billion ($33 million) in Ho Chi Minh City.
Can said many investors were pressured with bank loans and forced to cut prices to offload properties.
Blue chip investors are also looking to offload sites. The Song Da Industrial Parks and Urban Development Joint Stock Company (Sudico) has sold its stake in the Cactus Cam Ranh Resort Spa.
Vinaconex-Hoang Thanh sold its stake in the Park City project in Hanoi to Malaysiam partner Perdana City, bringing this project into a 100 per cent, foreign-owned project.
In the An Khanh Joint Venture, Vinaconex was also negotiating to sell its stakes to Sovico, another domestic conglomerate. According to Dung, operating projects were most hunted, while golden land plots were less preferred.
SBV stalls asset regulations as companies feel the pinch
Governor of the State Bank of Viet Nam Nguyen Van Binh temporarily delayed the application of a circular on asset classification in a move to help enterprises access credit in the context of continued economic hardships.
Currently 5-6 per cent of loans are non-performing loans (NPLs). If the circular went into effect as planned, another 10 per cent (roughly VND272 trillion worth of loans) would become NPLs, according to Binh.
“This would cause difficulties for both enterprises and credit institutions,” he said.
During meetings with representatives from thousands of businesses and credit institutions in nearly 40 cities and provinces during the past month, the central bank governor was frequently asked to delay applying the regulation.
Nguyen Thi Dung, director of the Bank for Investment and Development of Viet Nam’s Binh Duong branch, said that if the circular took effect, all the extended loans of enterprises would become NPLs and the Government’s goal of helping enterprises access credit would fail.
The increase in NPLs would also force banks to increase their risk provisioning, eating up their profits.
General director of the Dong Tam Co Vo Quoc Thang said that the circular should go into effect when the economy and consumption rebounded in order to make the banking system gradually comply with international standards.
However, he said, enterprises would continue facing difficulties until at least the end of this year, so the ruling should be postponed.
“If the central bank insisted in applying the regulation, it would cause enterprises’ production to stagnate,” Thang said.
Binh said that the central bank still required credit institutions to report accurate NPL statistics to the central bank in order to help banks and enterprises become aware of their NPLs and take appropriate measures to deal with the problem.
The central bank will announce when the regulation will be applied.
Bank hits foreign investor limit
An Binh Commercial Bank (ABBank) announced yesterday it has used up its quota of shares that can be issued to foreign investors.
In 2010, the International Finance Corporation (IFC) and Malaysian banking group Maybank agreed to convert ABBank’s bonds into shares.
The move made IFC a major shareholder of the bank, with a 10 per cent stake, while Maybank owns 20 per cent. Under the latest legal regulations, the proportion of foreign ownership in a commercial bank can be up to 30 per cent.
Other large shareholders include Viet Nam Electricity (EVN) and Ha Noi Export-Import Co.
The conversion brought ABBank’s charter capital from VND4.2 trillion (US$200 million) to nearly VND4.8 trillion ($228.5 million).
IFC will establish a presence on the Vietnamese bank’s board of directors. Maybank already has seats on the board, risk management committee and HR department.
IFC has worked with many other banks to provide commercial aid to enterprises. ABBank said the foreign financial firm would improve its management capacity to meet international standards and handle bad debts.
ABBank chairman Vu Van Tien said yesterday that attracting these two foreign investors demonstrated the bank’s stable financial status.
The search for foreign partners has not gone so well for other banks. Sacombank and Dong A Bank intended to increase their capital by selling shares to foreign investors last year, but the plans have since stalled.
Local firms urged to brush up on arbitration law
Domestic enterprises seemed to be vague about arbitration despite the benefits this form of settlement could offer, a conference heard yesterday in Ha Noi.
During the event, organised by the Viet Nam International Arbitration Centre (VIAC), participants emphasised the importance of raising awareness, particularly among domestic enterprises, on the advantages of arbitration.
Arbitration was a suitable form of dispute resolution, especially in the context of Viet Nam’s global economic integration, experts said, adding that hiring arbitrators helped businesses save time and money while further easing the burden on the nation’s court system.
Established in 1993, VIAC is one of the top arbitration centres in Viet Nam. As of last year, it had settled over 630 disputes.
Companies merge to offer online payment platform
MOL AccessPortal Sdn Bhd (MOL) will join pioneering Vietnamese e-commerce group PeaceSoft Solutions Corporation to acquire a 50 per cent stake in NganLuong JSC of Peacesoft’s on-line payments unit.
To this effect, a joint venture agreement was signed yesterday.
MOL and Peacesoft will jointly operate one of the country’s first online payment and escrow platforms together with other related e-payment services in Viet Nam.
“This is an excellent combination as MOL can bring their global networks of merchants into Viet Nam, while giving the opportunity for Vietnamese merchants and publishers to sell their products and content directly to over 12 markets through MOL’s growing payment network” said Nguyen Hoa Binh, CEO of Peacesoft group and also chairman of NganLuong
Viet Nam is not only one of the fastest growing but also one of the largest internet markets in Southeast Asia with more than 31 million internet users. The opportunities for e-commerce and e-payment growth in Viet Nam were great, said MOL CEO, Ganesh Kumar Bangah.
PVFC ensures fertiliser supply for forthcoming rice crop
The Phu My fertiliser plant will run at full capacity and produce around 360,000 tonnes of fertilisers in the second and third quarters in preparation for the summer-autumn rice crop.
According to the PetroVietnam Fertiliser and Chemicals Corporation (PVFC), together with a fertiliser inventory of 70,000-75,000 tonnes, the volume of PVFC Co supplies will be over 430,000 tonnes, meeting 40 per cent of the crop’s fertiliser demand.
FDI businesses invest US$8.2 bln in 4 months
Vietnam has attracted more than US$8.2 billion worth of foreign direct investment (FDI) capital in the first four months of this year, up 17 percent on the same period last year.
Of the total, US$4.9 billion came from 341 newly-registered projects, and the remainder was from 121 operational projects that registered to increase their capital, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.
FDI projects disbursed US$3.75 billion during the reviewed period, a year-on-year increase of 3.9 percent.
Foreign businesses focused most of their investment in 18 fields. The processing and manufacturing industries took the lead, attracting a total of US$7.4 billion. They were followed by real estate, retail and wholesale, and maintenance.
The reviewed period’s major projects include the Nghi Son oil refinery project with US$2.8 billion in additional capital, Singapore’s Samsung Electronics Vietnam assembly and manufacturing project in Thai Nguyen province (US$2 billion), and Russia’s Bus Industrial Centre manufacturing and assembly project in Binh Dinh province (US$1 billion).
The FIA said Japan ranked first among 37 foreign investors in Vietnam, pouring US$3.6 billion into the country. Singapore came in second with US$2.3 billion, and Russia was placed third with US$1.1 billion.
Vietnam keen on international aviation cooperation
Up to 300 world leading aviation strategists gathered in HCM City on April 25 to map out action plans for developing Vietnam’s aviation logistics sector amid the global economic recession.
Industry insiders and experts discussed issues relating to aviation transport logistics such as opportunities and challenges for newly-emerging markets, aviation logistics connectivity, aviation logistics amid an economic recession, training and security.
The event created a venue for domestic operators to develop service supply chains with international partners, penetrating deeper into the global supply chain. It was also a chance for foreign companies to seek partnerships with their Vietnamese counterparts.
Experts predicted that the aviation sector will continue to face huge challenges in 2013 due to the global economic hardship, increasing cost of fuel and aviation security. Therefore, the conference is expected to come up with suitable ways to create close ties among businesses in the sector and find new development opportunities.
According to the Vietnam Civil Aviation Administration, Vietnam’s aviation industry transported 17.5 million passengers and 201,000 tonnes of cargo in 2012, a year-on-year increase of 5.2 percent and 1.98 percent, respectively.
Ninh Thuan seeks Japanese investment
The south-central province of Ninh Thuan has pledged to prioritise, offer assistance to, and consider the requests of any Japanese businesses investing in the locality.
Ninh Thuan Provincial People’s Committee Chairman Nguyen Duc Thanh confirmed the commitment at a conference in Hanoi on April 25.
Ninh Thuan is currently home to 22 projects sponsored by the Japanese Government with capital investment totalling more than VND552 billion, Thanh said.
He announced the Vietnamese Government’s plan to invest in several national key projects that will improve Ninh Thuan’s connections with south-central provinces and the southern key economic zone.
He also raised Ninh Thuan’s hope to receive additional Official Development Assistance from the Japanese Government.
Thanh expressed his belief that the two sides will be able to transform Ninh Thuan into a launching pad for Vietnam-Japan cooperation and a model for future collaboration.
Japanese Ambassador to Vietnam Yasuaki Tanizaki said his country will help Japanese businesses contribute more to Ninh Thuan province’s development.
According to Ninh Thuan’s master plan on socio-economic development to 2020—a plan approved by the Prime Minister—the province is aiming to achieve rapid and sustainable economic growth and a per capita GDP income of US$2,800.
Binh Phuoc province attracts Japanese investors
The southern province Binh Phuoc is set to create a favourable environment for Japanese investors.
At an investment promotion seminar in Ho Chi Minh City on April 24, Deputy Chairman of the provincial People’s Committee Pham Van Tong said Binh Phuoc has over 5,200 hectares of available land in eight industrial zones for industrial development.
They include 28,300 hectares for Hoa Lu border economic zone and other industrial clusters.
He added that BinhPhuoc is a key economic area that links the southern region to the Central Highlands and the neighbouring countries of Cambodia, Laos and Thailand.
The local economy is on the right track and the quality of human resources training has improved, Tong said.
Japanese Ambassador to Vietnam YasuakiTanizaki said Japan will pour more capital into some cities and provinces, including Binh Phuoc, which have huge for potential for economic growth and tourism development.
Vietnam, Israel enhance sci-tech links
A protocol on the establishment of the Vietnam-Israel Inter-Governmental Committee on Economic, Scientific and Technological Cooperation was signed in Hanoi on April 25.
Addressing the signing ceremony, Minister of Science and Technology Nguyen Quan affirmed that Vietnam always attaches importance to the development of science and technology and considers it the key to stimulating the country’s socio-economic development.
He expressed his belief that the protocol will create opportunities for Vietnamese scientists to exchange research experiences, and form projects of the two sides’ interests, contributing to their economic development.
Israeli Ambassador Extraordinary and Plenipotentiary Meirav Eilon Shahar stressed the protocol will help both sides achieve their common goals and seek cooperation opportunities, particularly in science and technology, economics and trade.
In recent years, Israel has been moving towards developing a high-tech economy. With its great science and technology potential, the country has become an exporter of computers, chemicals and farm products.
Many tourists heading for Da Nang
Sixteen culture, sport and tourism events will be held during the sixth Danang International Fireworks Competition (DFIC 2013) on April 29-30.
Apart from releasing lanterns, organizing music performances in the streets and displaying souvenirs, there will be an exhibition in Vietnam’s Hoang Sa (Paracel) islands, a sea festival program, an international culinary art festival, and fact-finding tours to Son Tra Peninsula and beautiful beaches as part of the Hue-Da Nang-Hoi An Central Heritage Road.
There will be a special program for those who like to visit Da Nang and Cu Lao Cham by helicopter. Two bridges named Rong and Tran Thi Ly have been open to traffic and the new Ba Na cable car system has been put into operation on schedule.
Airlines promote tourism in Cambodia
A seminar was held in Phnom Penh on April 24 by the Cambodia Angkor Air (CAA), a joint venture between Vietnam Airlines (VNA) and the Cambodian Royal Government.
Cambodian Secretary of State and CAA Chairman Tekreth Samrach said Cambodia is famous for its thousands of large temples, including the Angkor complex in Siem Reap province, beautiful beaches in Koh Kong and Kampot provinces and waterfalls in Ratankiri, Mondonkiri, Strung Treng and Kratie provinces.
However, the country’s tourism potential is not yet fully tapped due to lack of information and inadequate infrastructure.
The Cambodian Ministry of Tourism claimed that about 3.5 million foreign tourists, visited the country in 2002, mostly from Vietnam, China, Thailand, the Republic of Korea and Japan.
In the meantime, the numbers of tourists to Thailand and Singapore were much higher (around 20-25 million).
According to plan, the CAA will create the best conditions for tourists to explore the three most attractive destinations on a single air route from Phnom Penh to the ancient cultural sites in Siem Reap and beautiful beaches in Sihanouville city, while increasing the number of international air flights form Phnom Penh and Siem Reap to Hanoi and Ho Chi Minh City.
In the near future, the CAA will launch new flights from Danang (Vietnam) to Savanakhet, Paske and Vietiane (Laos), as well asfrom Phnom Penh to Bangkok (Thailand), Guangzhou, Shanghai and Hong Kong (China) and Seoul (the Republic of Korea).
Phuong Trang expands bus service to northern region
Phuong Trang Tourist and Transportation Company will expand its passenger transport service to the northern region with the Danang-Hanoi run to be launched next month.
At a briefing held on Monday, Nguyen Cong Dinh, general director of Phuong Trang Co., said that the firm would use 16 buses for the new service.
It will take around 13 hours to go from Danang to Hanoi by bus. Final procedures are being completed, and thus the official day for launching the service has not been set, according to Dinh.
Together with the opening of the service, Phuong Trang has also developed a rest stop worth VND22 billion and bought 12 new buses.
In addition to expanding operation to northern Vietnam, Phuong Trang is boosting the goods express service as the company operates over 1,000 coaches in several provinces. The firm targets to increase revenues earned from goods transport and express service to VND300 billion this year.
Besides, the firm targets to expand its bus service coverage throughout 63 provinces and cities nationwide by 2015.
“As per our business strategy, we do not open new routes hastily but focus on key ones first before branching out further. Therefore, our next step is to open the Danang-Hanoi service,” he said.
To better serve customers, Phuong Trang will finish the payment system this year so that customers can book tickets and make payment online.
During the holidays of Reunification Day and May Day, the firm will not increase the transport fees but offer discounts on some certain routes.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR: VNS
BUSINESS IN BRIEF 28/4
Không có nhận xét nào:
Đăng nhận xét