Conference seeks to improve construction management

At the conference, participants focused their discussions on how to design contracts for construction projects in accordance with practical conditions in Vietnam and international norms, and how to boost the expertise of project managers. 

The construction sector is facing a number of major challenges as a result of rapid economic development and the quick pace of urbanisation in the country, said Deputy Minister of Construction Tran Van Son while pointing out weaknesses in the management of construction projects. 

According to him, a shortage of synchronous, legally binding regulations and qualified construction professionals has resulted in the poor management of such projects, which have mostly fallen behind schedule.

JETRO: Vietnam’s economy recovers rapidly

Hanoi (VNA) – An official from the Japan External Trade Organisation (JETRO) has hailed Vietnam’s stimulus policies and its rapid economic recovery. 

“Compared with the stagnant economies of developed nations, the tempo of economic recovery in Vietnam is extremely fast,” said Managing Director of the JETRO Office in Hanoi Yoshida Sakae in an interview granted to Thoi bao Kinh te Vietnam (Vietnam Economic Times) on Jan. 26. 

Powered by Vietnam’s economic restoration, Japanese companies operating in the country have recovered over 80 percent of their production output and many of them are recruiting more workers, he said. 

Since mid 2009, the JETRO Hanoi Office has received an increasing number of applications for consultancy for new projects, the official said, adding that Japanese enterprises have always considered Vietnam “a firm manufacturing base and consumption market in the long run,” the official added. 

Regarding the inflow of foreign investment, Sakae said the implementation of the action plan of the Vietnam-Japan Joint Initiative would improve the investment environment and increase the number of Japanese projects in Vietnam. 

The strict fulfilment of its commitments to the World Trade Organisation (WTO) will help Vietnam attract more foreign investment, he said. 

However, the JETRO official also recommended that Vietnam continue improving the quality of human resources and simplifying administrative reforms in the coming time

Japan helps Quang Nam with clean vegetables

Quang Nam (VNA) – The central province of Quang Nam has collaborated with Minamiboso city of Japan ’s Chi Ba prefecture in clean vegetable production and consumption across the province under the Japan techniques. 

The three-year cooperation programme is part of a project to promote exchanges between Vietnamese and Japanese local non-governmental organisations. 

Beginning in April 2010, the programme is intended to establish locally-produced clean vegetable establishments at the Binh An roadside station in Thang Binh district with the hope of raising local farmers’ incomes. 

On Jan. 27, a delegation of experts from Minamiboso city provided consultation to the province in devising plans for farmers to cooperate in farm production, sales and transport as well as retail selling skills. 

Under the programme, Japan will send its experts to Quang Nam province for technical assistance and receive Vietnamese trainees. The country will also provide refrigerators and cash registers to the province as well as the financial cost of building small farm shops.

Agro-forestry, seafood exports increase 16 percent

Hanoi (VNA) – Vietnam earned 1.16 billion USD from agro-forestry and seafood exports in January, a rise of 16 percent compared to the same period last year thanks to a rise of prices in the world market. 

According to the Agriculture and Rural Development Ministry, of the total value, farm produce constituted 636 million USD, fisheries, 235 million USD and forestry, 234 million USD.

Among agro products, rice exports brought in 161 million USD. 

The Vietnam Food Association predicts that the rice export price will continue to rise due to a rice “fever” on the world market. 

Added to this, the move by the Philippines to open continuous bidding on rice contracts will provide a good chance for Vietnamese exporters to increase export volume and value. 

Meanwhile, the export of coffee, cashew nuts and rubber saw positive results with export values of 193 million USD, 88 million USD and 75 million USD, respectively. 

For this year, the Ministry of Agriculture and Rural Development is targeting an agro-forestry and seafood export value of 16 billion USD, an increase of 15.4 percent over 2009.

Project to enhance transparency in business

Hanoi (VNA) - The Vietnam Chamber of Commerce and Industry (VCCI) on Jan. 27 launched a 600,000 USD project aimed at building consistency and transparency in business relations in the country. 

The three-year project will define prioritised activities, improve enterprises’ awareness of consistency and transparency in business operations and build tools and guidelines for the fight against corruption. 

Vice Director of the VCCI’s Office for Business Sustainable Development Nguyen Quang Vinh said the project targets both local and foreign-invested enterprises in the country. 

Of the total funding, 300,000 USD will come from the Swedish Embassy and the UK Embassy in Vietnam. In addition, the project will also receive consultancy and technical assistance from the International Business Leaders Forum (IBLF) and Transparency International (TI). 

While regarding corruption a threat to Vietnam’s sustainable development, both Swedish and UK Ambassadors Rolf Bergman and Mark Kent pledged to share experiences and join efforts with the domestic business community in combating this negative phenomenon and increasing trade and investment activities in the country.

Products from Vietnam’s tra fish honoured in US

Hanoi (VNA) – Several products from Vietnam’s tra fish have won the gold medal at the American Masters of Taste, recently held to honour top cooks across the US, reported the Vietnam Association of Seafood Exports and Processing (VASEP). 

The products, including Basa Vina Pearl Fillets, Basa Vina Pearl Swai Loins, Basa Vina Pearl Swai and Vina Blue Barramundi Fillets, are proceed by Dong Thap QVD Food Co. Ltd. 

Currently, about 130 countries and territories are purchasing Vietnam’s tra fish products, of which over 30 markets in the world import products of QVD Food Co. Ltd. 

In 2009, Vietnam’s tra fish export fetched almost 1.34 billion USD, accounting for 31.5 percent of the total marine export turnover.

Share jump on prime rate decision

Hanoi (VNA) – The VN-Index gained 3.53 percent to close at 497.90 on Jan 26, as the value of trades on the HCM City Stock Exchange edged back up to 1.42 trillion VND (76.7 million USD), on a volume of 32.7 million shares. 

Sacombank (STB) was the day’s most-active share, with a volume in excess of 1.82 million. 

The State Banks announcement on Jan. 25 that it would leave the prime rate unchanged, as well as news of a successful sale of Government bonds overseas, was greeted enthusiastically by the market. 

“Demand began returning on Jan. 25 but was burdened by concerns over the economic situation,” said Nguyen Duy Tan a broker with a Hanoi-based securities firm, noting that the positive news later on the day help spur the market on Jan 26. 

Meanwhile, the successful bond issue helped confirm over-seas interest in the country’s investment environment and consoled local investors worried about the economic picture, Tan said. 

But he also noted the common trend of investors taking a breather in the run-up to Tet (lunar new year) and said he expected the market to continue to be sluggish. 

“When the excitement about today’s hot news is over, this behaviours will continue driving the market,” he said. “We will see some ups and downs before the lunar holiday comes.” 

The Hanoi-market rebounded even more strongly, with the HNX-Index jumping by 5.17 percent to end the day’s trading at 165.46. 

Value of trading on the Hanoi Stock Exchange rose to 632.9 billion VND (34.2 million USD), on a volume of 20.1 million shares. 

PetroVietnam Construction (PVX) led trading, with 3 million shares changing hands, thanks to its announced decision to increase its charter capital in the first quarter to 2.5 trillion VND (133 million USD). 

Foreign investors bucked the prevailing trend to become net sellers on both markets, but by a modest net of 250,000 shares.

Wire maker lists on HCM City bourse

HCM City (VNA)- Ngo Han Joint-Stock Company, whose main product is electromagnetic wires of different types, has become the 232 nd listed company on the HCM City bourse under the code NHW. 

The Dong Nai province-based company has a charter capital of 230 billion VND (13 million USD). The fund management firm Mekong Capital represents nearly 31 percent and foreign individual investors, 6.5 percent. 

The company is capable of producing more than 190,000 tonnes of uninsulated copper and enamelled aluminum wire annually. 

The NHW enjoys 47 percent of the enamelled aluminum market, 35 percent of flat copper wire and 20 percent of enamelled copper wire. Its major customers include Sunshin Vietnam and Dongjin of Korea, Solen Vietnam and Shihlin of Taiwan, Ovi Cable of Malaysia and the ABB of Switzerland. This year it expects to earn 61 billion VND in net profit and 79 billion VND next year. The figure was 41 billion VND in 2009. 

The company closed its first trading day at 26,400 VND, up 20 percent on its reference price of 22,000VND.

State Bank holds line on prime rate

Hanoi (VNA) – The prime rate is to remain at 8 percent for at least next month with the aim of defusing the growing threat of inflation. 

The refinance and discount rates were also kept at 8 percent and 6 percent, respectively, while the overnight interbank rate for electronic payments was reduced to 8 percent. 

The benchmark prime rate was last raised by one percentage point in late November, only the second adjustment in 2009. Back in January last year, the prime rate was lowered from 8 percent to 7 percent to spur lending and stimulate the economy during the global recession. 

In the latest report by the central bank, investment rates for deposits in Vietnamese dong remained stable at 10-10.49 percent at private bank and 8-9 percent at State-owned banks. Most private banks were offering promotion interest rates and gifts to absorb available capital. 

Dong loans were charged at 12 percent for both short and long terms. 

Interest rates for US dollar deposits increased by 0.1-0.3 percent against the previous week at private banks, ranging from 3.3-4.5 percent. Lending rates for dollar loans were about 6.5-8 percent. 

After the capital sterilisation of the central bank, interbank rates were cooled by 1-1.42 percent to about 10.52 percent from a rumoured rate of 16-18 percent in previous weeks. The central bank aimed to bring the interbank rate down to about 9 percent. 

Total transaction values on interbank rates last week were 78.69 trillion VND (4.25 billion USD) and 1.51 billion USD, up 16.31 percent and 6.1 percent against the previous week. 

Jan.26 ’s decision by the central bank to hold the prime rate confirmed that commercial banks would not be able to raise interest rates before the biggest festival of Lunar New Year. 

Some market watchers predicted that banks might get into trouble through a lack of liquidity because they could not raise interest to attract depositors. 

“The central bank is aware of the market trend and we are actively preparing measures to ensure systematic liquidity and reasonable credit growth,” said State Bank deputy governor Nguyen Dong Tien. 

Tien also confirmed that the capital injection through open market operation, refinancing and overnight lending would not put much pressure on inflation.

Exports predicted to reach 66 billion USD

HCM City (VNA)- The National Centre for Socio-economic Information and Forecasting expects export earnings to top 66 billion USD this year, or 5.88 percent more than last year.

The centre has also forecast two different scenarios for the overall economy. The first has it growing at 6-6.5 percent along with 3-3.2 percent growth for the agro-forestry and fisheries sectors, 6.4-6.8 percent for construction, and 7.1-7.9 percent for services. 

Inflation will be below 10 percent and imports would be worth 77.5 billion USD, 7.58 percent higher than last year. 

The second plan envisages a higher growth rate of 7 percent. Exports will be worth 67.8 billion USD and imports, 80 billion USD. 

The centre said this year the global and Vietnamese economies just entered the first stage of recovery and trade and foreign direct investment would not increase in the short term. Thus, achieving high growth would require the Government to increase investment and spending. 

But with growth becoming contingent on spending, there would be the risk of inflation returning, the centre warned.

China’s bank opens capital city branch

Hanoi (VNA) – The Hanoi branch of the Industrial and Commercial Bank of China (ICBC) was officially inaugurated in the capital on Jan. 26 and became the first mainland Chinese bank to operate in Vietnam since 1995.

Chinese Ambassador to Vietnam Sun Gouxiang said that the bank officially debuted on the occasion of the two nations celebrating 60 years of diplomatic ties. Jan. 26’s event marked a significant milestone for the good relationship between the two nations.

“Bilateral trade turnover skyrocketed from 32.2 million USD in 1991 to about 21 billion USD last year. China had become Vietnam ’s biggest trader over the past six years,” he noted.

“Cooperation of the two countries in construction and contracting, direct investment and human resource training has made positive progress. Vietnam has become China ’s second largest engineering contracting market in Southeast Asia .”

About 700 Chinese enterprises have pumped a total investment capital of 3 billion USD into Vietnam . More than 2,000 companies are now doing business.

Dang Thanh Binh, deputy governor of the State Bank of Vietnam , said that he hoped the ICBC would become an effective bridge to promote trade and investment between the two countries.

ICBC chairman Jiang Jianqing said: “ Vietnam is one of the most important countries in ASEAN. The formal establishment of the China-ASEAN Free Trade Area on January 1, 2010, will generate a historic opportunity for the economic and trade relationship between China and other ASEAN countries, including Vietnam .”

The ICBC is China ’s largest commercial banks and one of the biggest commercial banks in the world. It has a strong client base, an advanced level of information technology and the advantages of diverse products. The bank was listed simultaneously in Shanghai and Hong Kong in 2006 with the highest capitalisation in China .

It now has 162 branches in 20 countries and established relationship with 1,393 other banks in 125 countries to expand its operation and services.