Vietnam Economy Forum

[Battle of Bach Dang River]

Vietnam branded mobile phones booming
| VIR/VNA | Sep 17, 2011 09:52 am

The debut of a series of mobile phones with Vietnamese brand names from late 2010 has led to fierce competition in the market.

After An Binh telecom company released Q-Mobile and FPT launched FPT-Mobile in 2008 and 2009, the market now has dozens of Vietnamese brand name mobile phones, including Avio by VNPT, Bluefone by CMC, Hanel Mobile by Hanel and Hi-Mobile by HiPT.

Made in Vietnam mobile phones feature low prices (400,000-VND500,000 or equal to 19-$24 ), and a host of extra functions like having between 2-4 sim cards, large capacity memory cards, a camera and guarantees and bonuses for users.

With these advantages, made in Vietnam mobile phones meet the demands of low-income earners, workers and students, which make a large proportion of the society.

According to statistics, Vietnamese brand name mobile phones make up 30 per cent of consumption volume and 15 per cent of the market’s value.

Q-Mobile mobile phones increased its sales by 175 per cent year-on-year in the first five months of this year. This product makes up nearly 30 per cent of the domestic market, after Nokia which has a 50 per cent market share.

General Director of An Binh telecom company Nguyen Quang Ninh said his company plans to develop Q-Mobile into a leading brand name of the domestic market by the end of this year and was preparing to export the product to countries at a similar stage of development to Vietnam , like Laos , Cambodia , Myanmar and African countries.

During this time, VNPT’s sales of its Avio increased by nearly 90 per cent over the same period last year.

Those above moves caused the world popular mobile phone producers operating in Vietnam , including Nokia, to change their focus from luxury products to lower priced deals such as five common two-sim card products with prices between 600,000-VND700,000 (28.5 - $35.7).

According to Director of Hi-Mobile Do Giang Vinh, Vietnamese producers now face big challenges. If they do not have products with the right designs and manage key production steps, they risk suffering losses.

 

[Viet]

Vietnam to help Pakistan access Asean markets
By: Our Staff Reporter | August 30, 2012 |

ISLAMABAD - Pakistan and Vietnam in the second session of the Joint Trade Commission (JTC) have showed great motivation to achieve $500 million target of bilateral trade by December 2013.

The second session of the JTC between Pakistan and Vietnam was held in Islamabad on 28-29 August. Tahir Raza Naqvi Chief Executive Trade Development Authority of Pakistan (TDAP) led the Pakistan's delegation while Le Duong Quang Deputy Minister of Ministry of Industry and Trade of Vietnam led the Vietnamese delegation.
The JTC deliberated on the measures to enhance and promote bilateral trade between the two countries including simplification of visa procedures for businessmen, exchange of trade and commercial information between the trade promotion agencies and institutionalising cooperation among the state trading corporations of both the countries.
The Vietnamese side assured that the Ministry of Industry and Trade of Vietnam would facilitate Pakistani businessmen in getting visa. Vietnam also assured Pakistan to consider waiving off the requirement of a Vietnamese sponsor. However, for the time being if Pakistani businessmen do not have a sponsor in Vietnam, the Commercial Section of Vietnam at Karachi will forward the case to Ministry of Industry and Trade, Vietnam. If the Ministry is satisfied, it will become the sponsor for Pakistani businessmen.

During the meeting, an MoU was signed wherein Pakistan recognised Vietnam as Full Market Economy. Vietnam assured Pakistan of its full support in its bid to become the Full Dialogue Partner of ASEAN.

The selected product sectors for special promotional measures include leather and leather products, Pharmaceuticals and Seafoods from Pakistan side, while the Vietnam authorities would launch promotional campaign to increase export of tea, cotton and synthetic fiber and fisheries to Pakistan. The agreed roadmap to work closely for enhanced trade in the specified sectors includes exchange of delegations, participation in fairs/exhibitions, sharing of information on quality standards and trade procedures between the two sides.

Later, the Vietnamese delegation led by Le Duong Quang Deputy Minister of Ministry of Industry and Trade of Vietnam met Senior Commerce Minister Makhdoom Amin Fahim in his office. Both sides discussed different aspects of trade relations between the two countries.

Meanwhile, addressing business community Le Duong Quang said that Vietnam wants to strengthen its friendship with Pakistan, especially in trade and investment. He expressed hope that second secession of Pak-Vietnam Business Council would help strengthen business cooperation between both countries as well as would gather Vietnamese counterparts that are interested in expanding businesses in Pakistan.

He said that Trade Promotion Agency of Vietnam and Trade Development Authority of Pakistan should collaborate and sign mutual agreements for promotion of trade and economic relations between both countries.
In his welcome address, Yassar Sakhi Butt, President ICCI said that it is encouraging that Pakistan and Vietnam are now moving forward to further strengthen their bilateral economic and trade relations as both countries have great potential to enhance mutual cooperation in various sectors of their economies.

ICCI President said that bilateral trade between Pakistan and Vietnam has improved from $60 million in 2005-06 to $262.5 million in 2010-11, however, it is far below the true potential of both countries. He said that both countries have good potential to complement each other in different areas including science & technology, IT & telecommunication, industry, banking & finance.

Vietnam to help Pakistan access Asean markets | The Nation

 

[Battle of Bach Dang River]

Vietnam Still Hot for American Investors
August 31, 2012, 12:29 PM SGT
By Shibani Mahtani

Though Vietnam has struggled to recapture the supercharged growth rates it once enjoyed – and countries like Indonesia and the Philippines are increasingly seen as more attractive for investors – it is still a prime market that American companies are seeking to expand in.

That’s another of the more surprising conclusions from a recent survey conducted by the American Chamber of Commerce in Singapore (AmCham Singapore) and the U.S. Chamber of Commerce, which was reported earlier by The Wall Street Journal.

The survey, which polled more than 350 leaders of U.S. companies operating in the region, not only found that more American employees are asking to relocate to Southeast Asia – a surprise to analysts who have long assumed China and India were the hot spots – but also found that 57% of the companies polled intended to expand their operations in Vietnam, compared to a mere 6% in Indonesia and 11% in Thailand.

For American companies already operating in Vietnam, 82% expect an increase of profits next near and more than half are planning an expansion of their workforce. Such results are a sign that sentiment around the country among some companies remains positive, despite a significant slowdown in gross domestic product growth in Vietnam over the past few years, as well as other signs of macroeconomic instability, including a series of currency devaluations and a sharp rise in non-performing loans in the Vietnamese banking system.

Analysts have widely argued that Vietnam needs to pursue more aggressive economic overhauls, including steps to privatize state companies, if it wants to start attracting new rounds of big foreign investment.

The survey did indicate that many American businesses in Vietnam remain skeptical about efforts to stamp out corruption there, with 77% of those polled perceiving bribes and kickbacks as a concern. This figure was only higher in Cambodia, where 81% of companies expressed such concerns, and Indonesia, where 87% are still worried about corruption in the country.

The survey didn’t explain the apparent disconnect between Americans’ desire to expand their operations in Vietnam even as they worry about corruption and other issues. But the country continues to offer some appeal for Western investors, despite the recent economic problems there.

Its sizable consumer market of 91 million and relatively low-cost labor pool are still attractive for many companies, and some may be betting that the country will grow out of its economic problems eventually. Some economists have argued that steps to tighten credit and rein in inflation have positioned Vietnam to rebound once the global economy recovers from its recent slump, though that remains to be seen in the coming years.

Political relations between Vietnam and the U.S. have also continued to improve, especially as Hanoi locks horns with the region’s other economic power, China, over territorial rights in the South China Sea – all of which could make American companies feel even more welcome in Vietnam than before.

Meanwhile, the survey also polled U.S. companies on their perceptions around the much-hyped market of Myanmar. Many American businesses have spent the year searching for opportunities in the country – once virtually inaccessible thanks to years of long-standing sanctions on the country – but many are still hesitant to place big bets until they know more about the nascent market.

Still, more than 53% of companies polled are planning to start exporting to Myanmar, with another 52% aiming to invest in the country. Overwhelmingly, American companies in Southeast Asia – almost three-quarters of them – were in favor of the U.S. government’s recent decision to suspend some sanctions on Myanmar, even if they are not yet planning to leap into the market.

Finally, the survey yielded yet another sign that Southeast Asia is climbing higher on the priority list for investors and companies: 21% of them are planning to divest from China and reinvest in countries in the Southeast Asian, compared to just 15% last year.

Vietnam Still Hot for American Investors - Southeast Asia Real Time - WSJ

 

[ViXuyen]

Nui Phao mine is almost ready to go after years of delay, this mine is potentially worth at least $1 TRILLION USD

Highlights

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Viet Nam has huge deposits of tungsten, bauxite/aluminum, titanium, rare earth metals; I see a bright future for our civilian and military industries. Do I need to say that we also have uranium deposits as well?

 

[Viet]

Mammoth Phu Quoc project to roll ahead
Ninh Kieu | vir.com.vn | Sep 04, 2012 09:55 am

Switzerland’s Trustee Suisse Group is to continue rolling the dice with its mega tourism project on Phu Quoc Island, despite having its wings clipped by the authorities.

Van Ha Phong, head of the island’s Investment Management Authority, said the developer would continue pursuing the $2.6 billion Asia Pearl project even though it did not have permission to build casino and golf course segments. “The project remains slow, but the developer has been actively mapping out the investment plan and complete administrative procedures. We appreciate that,” said Phong.

Trustee Suisse initially proposed Asia Pearl in 2007. The project, to cover 102 hectares, will be the island’s largest tourism project.

One year ago, Kien Giang People’s Committee set deadlines for Trustee Suisse and its local partner – Vinaconex R&D Corporation – to finish a detailed master plan for the project and also a plan for land compensation and resettlement. The plans must be delivered before August 30, 2012.

“We have not received a detailed investment plan nor land compensation and resettlement plans,” said Phong.

“We really want to support Trustee Suisse. But our opinion is that we cannot wait the developer forever. If the developer delays this project too long, we must revoke its investment proposal,” said Phong.

Phu Quoc, 120 kilometers off the coast of Kien Giang, is among the most attractive destinations for developers to develop tourism projects in Vietnam, with 75 licensed projects. The projects are capitalised at around $2.2 billion, covering nearly 4,000 hectares. Furthermore, the provincial authority also agreed in principle for 180 other projects.

Besides the Trustee Suisse project, Hong Kong’s Millennium Group, via its subsidiary Starbay Holdings, is building a $1.6 billion resort. In addition, under the government’s plan, there will be a big tourism project comprising a casino facility in Phu Quoc, expected to open in 2017.

Vietnam Investment Review - Coverage - Mammoth Phu Quoc project to roll ahead

 

[Battle of Bach Dang River]

HSBC optimistic about Vietnam’s economy
Updated : 11:15 AM, 06/09/2012

The Hong Kong and Shanghai Banking Corporation (HSBC) has expressed its optimism about the country’s economic prospects.

“With patience and strong reform momentum, when the dust settles, Vietnam should find itself in a trimmer shape and more ready compete when the global economy recovers,” it said in a report on September 5.

According to the report, even with higher domestic oil prices, inflation dropped to 5 percent year on year in August from 5.5 percent in July.

Exports, though lower than in previous years, have remained resilient in double digits. Foreign reserves have increased and the Vietnamese dong has stabilised, strengthening the State Bank of Vietnam’s credibility.

These positive developments could not have happened without the political will to control the overheated economic growth, the report emphasised.

Business conditions are still weak but not free-falling, it commented, adding that demand for Vietnamese goods is rising despite the impact of the global crisis.

HSBC Vietnam economists said they expect domestic consumption to recover slightly towards year-end, especially with credit arrangements expanding.

On a year on year basis, export growth in August climbed to 13 percent from 1.6 percent in July.

While domestic demand remains weak, external demand for Vietnamese goods seems to be picking up.

The report also noted that Vietnam continues to attract tourists, boosting sales in the service and tourism sector.

Policy makers have proven in the years that they are able to address challenges as a patient approach to reform, will solve bad debts and create a healthy economic system, the report concluded.

HSBC optimistic about Vietnam

 

[james5]

Vietnam, the thickly-populated creating nation which had been having difficulties for previous times 30 years due to war, decrease in economical assistance, and the centrally-planned economic system, is now gradually backing and is showing to be one of the few fast-growing nations on the globe.

 

[Viet]

Viet Nam's export to Egypt reaches US$201 million
Thứ tư, 05 Tháng 9 2012 02:50

Viet Nam's export turnover to Egypt reached US$201 million in the first seven months of the year, said Viet Nam Ambassador to Egypt Dao Thanh Chung. Chung said the country's exports to Egypt in 2010 amounted to $200 million while last year's were $280 million, adding that Vietnamese enterprises have brought considerable goods into the market.

Viet Nam's main export items to Egypt have been rice, wooden furniture, consumption goods and seafood.

The latest report from the Ministry of Industry and Trade showed that Egypt has been the fourth largest country which imported Vietnamese goods among 67 countries having trade relations with Viet Nam.

Viet Nam has imported materials serving for production with a yearly average turnover of $20 million.

However, the ministry said that trade has not been up to the two countries' potentials despite increasing export turnover over the past few years. Chung urged Vietnamese businesses to penetrate further into the market.

He said the embassy would support and create favourable conditions for businesses to promote their trade in Egypt as well as expanding the range of export items available.

Egypt has been in need of agricultural products, cloth, electronics, mobile phones, machines and equipment.

He added that the two countries should establish a Viet Nam-Egypt Business Council to promote trade, investment and co-operation. The two countries aimed to bring their bilateral trade to $500 million.


Viet Nam's export to Egypt reaches US$201 million

 

[Viet]

VN’s exports to Mexico growing steadily
Thứ năm, 30 Tháng 8 2012 07:39

Vietnamese exports to Mexico have maintained a strong growth, earning 564 million USD in the first half of this year, a year-on-year rise of over 24 percent.

According to Vietnam 's Embassy in Mexico , this figure is mainly attributable to key export items including footwear, garments, aquatic products, electronic goods and spare parts, coffee and rubber.

Vietnamese Commercial Counsellor in Mexico Hoang Anh Dung said that during the reviewed period, Vietnamese businesses imported Mexican goods worth over 46 million USD, an annual rise of 64.72 percent, including iron and steel, computers, animal feed, electronic products, spare parts and accessories.

In June alone, Vietnam 's exports to the country hit over 97 million USD, up by nearly 21 percent year-on-year. However, imports from the Latin American country also rose by 19 percent from the same period last year.

Vietnam 's two-way trade with Mexico is now the second largest in the Latin American, after Brazil , the largest economy in the region./.

VN

 

[Battle of Bach Dang River]

Vietnam down again in global competitiveness rankings [Sadly]
Updated : 5:07 PM, 06/09/2012

(VOV) - Vietnam has fallen ten places to 75th in the Global Competitiveness Report 2012-2013.

This is the third consecutive year the Southeast Asian economy has suffered a decline in the global competitiveness index, from 59th in 2010-2011 to 75th in 2012-2013, according to the World Economic Forum report, released on September 5.

The report said in terms of macroeconomic environment, the country plunged 41 places to 106th this year, due to its high rate of inflation in 2011, the worse sovereign debt rating, and difficult access to credit.

Infrastructure (95th) also remained a major challenge for the country despite some improvements in recent years, with particular concerns about the quality of roads (120th) and ports (113th), the report said.

The report considered the nation’s public health and primary education (64th) efficient labor market (51st), its large market size (32nd), as its most competitive strengths.

The WEF also estimated Vietnam’s per capita GDP at US$1,374 and its GDP based on Purchasing Power Parity (PPP) share of world total at 0.38 percent.

Vietnam down again in global competitiveness rankings - Vietnam down again in global competitiveness rankings - VOVNEWS.VN


Refer to http://www.defence.pk/forums/world-affairs/206044-global-competitiveness-report-2012-2013-a.html

 

[Battle of Bach Dang River]

Now, relax with a Vietnamese brand: Funiki

 

[Battle of Bach Dang River]

 

[Battle of Bach Dang River]

A Vietnamese brand: Funiki

 

[Viet]

Malaysian businesses pour $5.8 billion in HCM City
| VIR/VNA | Sep 09, 2012 13:19 pm

Malaysian businesses had invested $5.8 billion in 169 projects in Ho Chi Minh City by June, becoming the largest foreign investor in Vietnam’s southern economic hub.

The figures were released by Vice Chairman of the HCM City People’s Committee Hua Ngoc Thuan at a ceremony on September 7 to mark Malaysia’s 55th National Day.

Thuan said that Malaysia has always been an important economic partner of HCM City, adding that the city has welcomed many business delegations from Malaysia who came to study investment opportunities.

According to the official, the direct air route between HCM City and Malaysia has also facilitated exchange and cooperation activities between the two sides.

HCM City will be happy to welcome more foreign investors, including those from Malaysia, to do business in Vietnam, Thuan said, adding that education and tourism are potential areas for bilateral cooperation in the coming time.

Malaysian Ambassador to Vietnam Dato Azmil Mohd Zabidi said he is pleased with the stable growth of trade relations between the two countries.

Two-way trade between Vietnam and Malaysia exceeded $6.5 billion in 2011.

http://www.vir.com.vn/news/business/malaysian-businesses-pour-$58-billion-in-hcm-city.html

 

[Viet]

Prices for Hanoi’s facing-street houses on the cloud
Sunday, 05 August 2012 14:56 | www.info.vn

Despite economic crisis and the fall of the estate market, prices for houses facing the street in Hanoi are towering, averaging VND300-550 million ($15,000-25,000) per one square meter.

The real estate market has been depressed for a long time, causing a drop of estate prices in Hanoi. However, street-facing houses in Hanoi’s centers are still at very high prices.

These houses are advertised on small ads websites at towering prices. The highest prices belong to houses in Hoan Kiem district, with VND300-550 million per one square meter. A 50sq.m house on Ngo Tat To street is offered for sale at VND17.5 billion ($870,000). Another 50sq.m house on Ham Long street is advertised at VND29 billion ($1.4 million).

The prices in Ba Dinh District are lower, averaging VND250-350 million ($12,000-17,000)/sq.m. A 40sq.m house on Van Bao Street is offered for sale at VND16.2 billion ($800,000).

An estate transaction office on Ma May Street, Hanoi, said that this office had performed several transactions of street-facing houses in Hanoi though many houses of this kind were offered for sale. It is very difficult to sell this category of houses because of their “virtual prices.”

“Owners of facing-street houses in the center offer prices that are much higher than the market prices, so it is very difficult to bargain with them,” an estate broker said.