Vietnam Economy Forum

[Viet]

German support for vocational training in Dong Nai
1/28/2013 12:05:17 PM Voice of Vietnam

(VOV) - The Government of Germany is committed to providing US$20 million for its technical and financial cooperation program with Vietnam.

This was announced by German ambassador to Vietnam, Jutta Frasch, after the program was signed in HCM City on January 27 by representatives of Bosch Vietnam and Lilama Technical and Technology Vocational College 2.

Vo Quang Hue, General Director of Bosch Vietnam, said the cooperation program between Bosch and Lilama 2 aims to train highly skilled workers for the company’s hi-tech factory in the southern province of Dong Nai.

Martin Hayes, President of Bosch in the South East Asia region said this is the first German-standard training program, aimed at transferring hi-tech skills to Vietnamese workers.

In the first two years, Bosch will provide US$2.3 million for training workers for Bosch’s automobile factory in Dong Nai. Bosch Vietnam will give priority to those finishing the three-year program with certificates granted by the German Industry and Commerce (GIC) and Lilama2.




BIDV funds national highway expansion
| SGT | Jan 25, 2013 09:04 am VIR

Deputy Minister of Transport Nguyen Hong Truong (L) and a representative of BIDV exchange the signed credit contract - Photo: Courtesy of BIDV


Bank for Investment and Development of Vietnam (BIDV) and the Ministry of Transport on Monday signed an agreement to fund the project expanding the National Highway 1A.

According to a statement released by BIDV, the lender has pledged to arrange VND30 trillion ($1.5 billion) for investors to expand sections between Hanoi and Can Tho City under the BOT (build-operate-transfer) format. BIDV will prioritize sections in the central region from Vinh City to Ninh Thuan Province.

BIDV will consider giving preferential lending rates to each part of this project and credits will be up to 85 per cent of the total investment capital.

National Highway 1A

Under calculation of the ministry, over VND120 trillion ($6 billion) is needed to expand the National Highway 1A from Hanoi to Can Tho on a total length of over 1,200 kilometers. Aside from credits from BIDV, some VND20.5 trillion ($1 billion) will be injected into this project through the State budget, government bonds and sale of toll collection right.

The ministry is seeking the remaining capital of around VND70 trillion ($3.5 billion) for the project.

 

[Viet]

X Nippon looks for the good oil
Nguyen Chung | vir.com.vn | Jan 28, 2013 15:05 pm

Japan-based JX Nippon Oil and Energy Corporation has started construction of its lubricant blending plant in Haiphong’s Dinh Vu Industrial Zone.

The four-hectare, $40 million JX Nippon Oil and Energy Vietnam Lubricant Blending project is planned to begin commercial operation in early 2014 with an annual productivity of about 40,000 tonnes.



Tourism pushed in $94-bln plan
Nguyen Chung | vir.com.vn | Jan 28, 2013 15:47 pm

Vietnam’s government-backed tourism industry is seeking $94.2 billion investment capital - 90 per cent from private entities - over the next 17 years.

This will help tourism become a “spearhead” economic sector by 2020 under a government’s tourism development strategy approved last week.

Under the tourism development masterplan until 2020 with a vision toward 2030, the tourism industry will need up to $94.2 billion in investment capital by 2030, of which 8-10 per cent capital would come from the state budget including official development assistance (ODA) and 90-92 per cent capital from private sources including foreign direct investment.



Japanese investors look on bright side
Bao Tram | vir.com.vn | Jan 28, 2013 15:13 pm

More than two-thirds of Japanese firms operating in Vietnam plan to expand investment in the country over the next two years. This despite challenges like wage hikes, according to a survey of Japan External Trade Organisation (Jetro).

The survey, released by Jetro Hanoi office last week, points out that 65.9 per cent of Japanese companies operating in Vietnam wanted to continue expanding business in this country in 2013 and 2014, while 32.1 per cent responded they would keep the same size. Only two per cent said they would downsize in Vietnam or relocate to other countries.

Japanese companies’ interest in Vietnam was lower than that of Indonesia, Myanmar and Cambodia, but higher than that of Thailand, China, Malaysia, Singapore and the Philippines.



JFE takes step for steel project
Ngoc Linh | vir.com.vn | Jan 28, 2013 15:42 pm

Japan’s JFE Steel Corporation has completed a pre-feasibility study for a $4.5 billion integrated steel mill in central Quang Ngai province to be submitted for governmental approval, moving a step closer to gaining an investment certificate for the project.

A source familiar with the case said the pre-feasibility study had been sent to Quang Ngai Provincial People’s Committee. “JFE will submit the study to the Ministry of Planning and Investment after Tet holidays [late February] and then other relevant authorities for further discussion,” said the source.

 

[Viet]

Aussie wool producers eye market
Updated January, 28 2013 10:51:31 Vietnam News

SYDNEY (VNS)— Australia is looking to develop a sustainable supply chain for its wool industry in Viet Nam.

Towards this, Australian Wool Innovation (AWI), the research, development and marketing organisation for the Australian wool industry, has been implementing the Out of Viet Nam project since last June.

The project not only aims to develop a sustainable supply chain in Viet Nam, but also to expand its manufacturing sector.

With Australia currently sending about 80 per cent of its wool to China and becoming increasingly reliant on this country, AWI sees the need to develop a new processing and manufacturing market for Australian wool, its General Manager for Product Development and Commercialisation, Jimmy Jackson, told Viet Nam News.

"Viet Nam comes out on top in comparison with other countries," Jackson said.

"Viet Nam meets a host of essential criteria, including its low sovereign risk, its well-established textile manufacturing industry and infrastructure, a large, skilled workforce, its large and growing exports of textile products, its large trade access including a Free Trade Agreement with the US and an abundant supply of water,' he said.



Hanoi among cities with high quality hotel service
Updated : 1/26/2013 5:04:21 PM Voice of Vietnam

(VOV) -Hotel service quality in Hanoi has ranked second only behind the German city of Dresden in a recent survey conducted by the prestigious website Trivago.

In its survey examining 140 hotels in 100 cities around the world, London in the UK was labeled the worst, receiving many complaints about its expensive bars, slow services, and mediocre breakfasts.

 

[Viet]

US businesses eye long-term investment in Vietnam
Updated : 1/29/2013 11:22:28 AM Voice of Vietnam

Vietnamese workers at US-invested Jabil plant in Ho Chi Minh City (Photo:internet)

(VOV) - US companies have voiced support for the Vietnamese government’s efforts to stabilize the macro-economy and pledged to do long-term business in the country.

At a dialogue with Ambassador Nguyen Quoc Cuong in Washington DC on January 28, representatives of the US Chamber of Commerce (USCC), the US-ASEAN Business Council (USABC) and major US companies valued Vietnam’s willingness to hold dialogues to ease difficulties for a healthy and transparent business environment.

They said the expected conclusion of Trans-Pacific Partnership agreement (TPP) negotiations in 2013 is of paramount importance to their investment and business expansion strategies in Vietnam and Southeast Asia in general.

The dialogue attracted the participation of USABC President Alex Feldman, USCC Director for Asia Catherine Mellor, and representatives of more than 30 US companies, such as Boeing, IBM, Microsoft, Google, DHL, Fedex, UPS, BakerMcKenzie, KPMG, Lockheed Martin, Westinghouse, John Deere and Caterpillar.

 

[Viet]

Vietnam Airlines opens Moscow-Nha Trang route
Updated : 1/29/2013 12:06:25 PM Voice of Vietnam

(VOV) -A ceremony was held in Moscow on January 28 to announce the official opening of a direct flight route between Moscow and Nha Trang.

Present were Minister Councilor of the Vietnamese Embassy in Russia Pham Thi Ngoc Bich, representatives from the Ministry of Transport of the Russian Federation, and other partners of Vietnam Airlines.

Vietnam’s national flag carrier announced that its first direct flight from Moscow to Nha Trang will start on April 5. It will have serviced one Boeing 777-200 flight per week in summer and two in winter.

 

[Viet]

Boeing funding for school construction in Vietnam
Updated : 1/29/2013 10:53:00 AM VOV

(VOV) - The Boeing Company inaugurated the Tan Minh A primary school with six classrooms in Hoa Binh province's Da Bac district on January 28.

The new school was built at a cost of US$115,000 sourced from the Boeing Company and the local budget.

This is the 25th school funded by the Boeing Company in Vietnam and it was built under a project co-managed by the Da Bac District People’s Committee and the Vietnam Veterans of America Foundation (VVAF).

 

[Viet]

S. Korea to build arboretum in southern Vietnamese city
Last Updated: Wednesday, January 23, 2013 01:40:00 | thanhniennews

Dr. Kim Hak Min (standing) presents plans for the arboretum project on January 22 in Can Tho City.

An advanced botanical garden designed by Korean scientists will break ground by month’s end in the Mekong Delta City of Can Tho, said a city official on January 22.

Vo Thanh Thong, deputy chairman of Can Tho’s People Committee, said the 4.5 hectare space at the city’s Tra Noc 2 Industrial Zone will be handed to the South Korean Institute of Industrial Technology (KITECH) late this month to plant an arboretum, news website thoibaokinhtesaigon.vn reported Tuesday.

Korean garden (photo internet)

The garden is part of the VND400 billion project ($20 millions), 70 percent of the funding for which will come from South Korea. Building the arboretum was included in several agreements signed between the Vietnam’s Ministry of Industry and Trade and South Korea’s Ministry of Knowledge Economy last March, and between the KITECH and the Can Tho’s People Committee last December, said Thong.

Expected to open in 2015, the project aims at increasing the value of agricultural products and seafood, the main exports of the Mekong Delta region, to South Korea.

 

[Viet]

UNDP helps VN enhance disaster risk management capacity
VNA | Updated : Mon, January 28, 2013,7:04 PM (GMT+0700)

A serious flooding in Hanoi in October 2008 - Photo: Reuters

The Ministry of Agriculture and Rural Development (MARD) and the United Nations Development Programme (UNDP) are in coordination to carry out a project aimed at enhancing disaster risk management capacity in a large part of Vietnam.

A budget of 4.95 million USD, mainly funded by the UNDP, has been approved by the MARD for phase II of project“ Institutional Capacity Building for Disaster Risk Management in Vietnam, particularly climate change - related risks”.

According to the Ministry, the project has a target of building a strategy and mechanism to support the implementation of multilateral agreements as well as working out effective measures to reduce natural disaster risks and adapt to climate change.

The project is implemented in Hanoi and 20 other provinces and cities until 2016.

 

[Viet]

Vietnamese rice resumes exports to Japan
Tuoitrenews | Updated : Tue, January 29, 2013,11:12 AM (GMT+0700)

Rice exports are seen loaded on a ship at Tan Thuan Port in Ho Chi Minh City

Two Vietnamese rice exporters have recently managed to ship their product to Japan again after the East Asian country ceased imports five years ago.

The Mekong Delta-based An Giang Import Export Co (Angimex) last year won a bid to supply 30,000 tons of white rice to Japan, and the deal has since been settled, CEO Nguyen Van Tien said.

With Japanese importers demanding that a number of tough standards be met, Angimex has linked with local farmers to create an area using advanced cultivation technology and strict quality supervision.

“We also had the rice tested for quality by Thai and Japanese companies, and finally the grain passed the standards set by the Japanese side,” the CEO said.

Paying close attention to the growing area and the use of high-tech, quality monitoring also enabled the An Giang Plant Protection Service (AGPPS) to enter the hard-to-please Japanese market. “The Japanese importers sent their supervisors to watch over us during almost every phase, from growing the rice to packaging,” company CEO Huynh Van Thon said.

 

[Viet]

State firms increase investment for development
Posted on January 29, 2013 Written by hanoitimes

The Hanoitimes – State groups and corporations plan to pour around 507,000 billion VND (more than $25 billions) in development plans in 2013, up 32.4% against 2012.

Businesses under the Ministry of Industry and Trade rank first in terms of development investment with 46.6%, followed by businesses under the Ministry of Transport (34.5%).

Eight State economic groups expect to spend more than 274,000 billion VND in the year, up 18.4% from 2012, which account for 50.7% of combined investment of State groups and corporations in 2013.

Vietnam Electricity, Petro Vietnam and Viettel Group have set big plans for development in 2013.

 

[Viet]

Japan’s Terumo to build factory in Dong Nai
Posted on January 29, 2013 Written by vietnamplus

Terumo Vietnam

The Japanese Terumo Medical Corporation has been granted an investment license for its building of a medical equipment manufacturing factory in Long Duc Industrial Park in southern Dong Nai province.

Covering an area of 10 ha, the 98.9 million USD factory is expected to open its doors in the second quarter of 2015.

The factory will mainly produce products for blood preservation, with the aim of developing its market in Southeast Asia, Europe and America .

This is the second Terumo-invested project in Vietnam, after the 19.5 million USD medical equipment factory in Hanoi, which has been put into operation.-VNA

 

[Viet]

PM approves plan to buy 1 milion tonnes of rice in reserve
1/30/2013 1:01:21 PM Voice of Vietnam

(VOV) - The Prime Minister has approved a plan to buy 1 million tonnes of rice in reserve from the 2012-2013 winter-spring crop, according to the Vietnam Food Association (VFA).

VFA President Truong Thanh Phong says businesses will buy rice at market prices, but not below VND5,000 per kilo as of February 20 after the Lunar New Year festival.

 

[Viet]

Vietnam Airlines plans IPO, to start restructuring this year
Last Updated: Monday, January 21, 2013 06:25:00 | thanh nien news

The state-owned Vietnam Airlines Corporation will make an initial public offering this year and offload its stakes in 10 businesses from now through 2015, Saigon Tiep Thi reported.

Under a recently approved restructuring program, the government will own 65-75 percent of the airline after the IPO.

The corporation will pull out of several businesses it has stakes in, including Techcombank, Bao Minh Insurance, and France Telecom. But it will continue to fully own the Vietnam Airlines Engineering Company,and hold more than 50 percent in 14 companies, including budget carrier Jetstar Pacific.

Cambodia Angkor Air will be among 11 other companies in which it will own less than 50 percent. Vietnam Airlines hopes to become Southeast Asia's third largest airline, providing four-star services, by 2015.

The magazine quoted a recent report from the airline as saying that for the first time in its history domestic passenger numbers declined last year though turnover was up 6.3 percent at VND50.89 trillion ($2.4 billion).

 

[Viet]

Vietnam to send 85,000 workers abroad this year
1/30/2013 12:46:51 PM Voice of Vietnam

Qatar wants overseas Vietnamese workers (picture: Doha - capital city of Qatar)

(VOV) - The Ministry of Labour, Invalids, and Social Affairs (MoLISA) expects Vietnam will send 85,000 workers abroad in 2013.

Le Van Thanh, Deputy Head of the MoLISA’s Department of Overseas Labour granted the VOV an exclusive interview in this connection.

Reporter: Could you first brief us on labour exports in 2012?

Mr Thanh: Last year, Vietnam exported 80,000 labourers or 88.9 percent of the set target. Although the total figure was not as high as expected, it was considered positive when the global economy’s recovery remained slow due to high unemployment in the labour market.

Since the beginning of the year, the MoLISA has tried its best to focus on some traditional markets which are in need of Vietnamese guest workers—Taiwan (30,533), Japan (8,755), the Republic of Korea (9,228), Malaysia (9,298), Macau (2,304), Saudi Arabia (2,360), UAE (1,731), and Cyprus (1,669).

In fact, labour exporters are cooperating with vocational training centres to improve the quality of guest workers.

Reporter: What about the department’s main targets this year?

Mr Thanh: As the department plans to send 85,000 workers abroad, its main focus will be on exploiting both old and new markets provided by the Organisation for Economic Cooperation and Development (OECD). Workers will be offered refresher courses on the languages, customs, and laws of their would-be countries of residence.

The Department has released full information on labour contract conditions for workers to consider and decide where they wish to be employed. It has also coordinated with relevant agencies to identify and prevent negative developments in labour export as soon as possible.

Reporter: What are major markets for Vietnamese guest workers?

Mr Thanh: The MoLISA has mapped out a long-term strategy for labour export. Annually, it hopes to send more than 100,000 workers abroad as some nations have already altered their policies towards guest workers. For example, Malaysia’s minimum salary has increased as of January 1, 2013.The only question is how to make a good choice of potential labour markets.

In the Middle East, Libya has agreed to take back more guest workers from Vietnam. Around 700 are already employed there. The Qatar Ministry of Labour has coordinated with the MoLISA on a project to build a worker training centre catering to the Middle East market.

We are also developing a training programme for those workers wishing to go to Macau, Taiwan, and Malaysia.

Reporter: What are the prerequisites and criteria for guest workers in high-income countries?

Mr Thanh: As they all need high skilled workers, the MoLISA have a plan to train medical workers under a pilot project with Japan, Germany and Saudi Arabia.

The department is preparing to sign labour cooperation agreements with Russia, Laos, and Thailand in the near future.

 

[Viet]

Japan helps Vietnam upgrade primary schools
1/30/2013 12:26:23 PM VOV

(VOV) - The Japanese government has agreed to provide more than US$243,000 in non-refundable aid for a project on upgrading two primary schools in the northern provinces of Bac Giang and Thai Nguyen.

Two non-refundable aid packages were signed at the Japanese Embassy in Hanoi on January 30.

Accordingly, US$120,000 will be granted to the Ngoc Son primary school in Bac Giang, and US$123,000 to the Duong Thanh primary school in Thai Nguyen.