by VNA
Argentina increases export to Viet Nam
Argentina earned more than 230 million USD from export of more than 995,000 tonnes of animal- and plant-related products to Viet Nam in the first 11 months of 2007.
The figures showed year-on-year increases of 56 percent in terms of revenue and 22 percent in terms of volume.
According to Argentina’s official statistics, export items obtaining high increases were sunflower oil with 572,000 million USD; tobacco, 477,000 million USD; and mandarin orange, 424,000 million USD.
Meanwhile, soybean powder was Viet Nam’s largest import item from Argentina in the review period with over 650,000 tonnes worth 135.7 million USD as compared to 555,000 tonnes in 2006.
Viet Nam, Laos, Cambodia sign energy deal
Cambodia, Laos and Viet Nam have signed an energy cooperation agreement, aiming to facilitate the construction of two World Bank-funded power transmission lines from Viet Nam and Laos to Cambodia.
The construction of the two projects, estimated at 18 million USD, will start in 2008 and is expected to be completed in 2010.
One power line will stretch from Tay Ninh province in southern Viet Nam to Kampong Cham province of Cambodia and the other from Champasak province in Laos will reach Cambodia’s Stung Treng province.
Mohinder Gulati, a World Bank energy expert, said that the lines are expected to greatly reduce the electricity production cost in those areas.
Thanks to the projects, Cambodia will directly use electricity from Laos in addition to the supply from Viet Nam.
Both bourses fall in New Year’s first session
The first securities trading session in 2008 felt short of expectations of many investors as both Ha Noi and Ho Chi Minh City bourses experienced decline.
The VN-Index fell by 5.95 points to 921.07 points on January 2 at the Ho Chi Minh City Stock Exchange, where 4.7 million shares valued at more than 444 billion VND were traded.
Blue-chippers which registered the sharpest fall of all included DHG of Hau Giang Pharmaceuticals (7,000 VND per share), ITA of Tan Tao Investment and Industry (4,000 VND per share) and FPT of Corporation for Financing and Promoting Technology (4,000 VND per share).
At the Ha Noi Securities Trading Centre, the HaSTC-Index decreased by 1.21 points to 322.34 points. More than 1.8 million shares, worth 192 billion VND, changed hands.
State President Nguyen Minh Triet visited the Ha Noi Securities Trading Centre on the morning of January 2 and beat the gong to open 2008’s first trading session.
The President asked the Ministry of Finance and the State Securities Commission to map out strategy to ensure that stock exchanges develop in a sustainable manner.
He also asserted that the state always creates favourable conditions for the financial market in general and the securities market in particular to develop safely, healthily, sustainably and in accordance with law.
Statistics released by the SSC showed that around 210 companies are listed on the stock exchanges, which mobilized nearly 90 trillion VND last year.
IPO bidders need to make bigger deposits
The Ha Noi Securities Trading Centre has proposed that higher deposits be required of investors seeking to participate in any initial public offers in order to reduce the number of winning bidders who change their minds about acquiring shares and abandon their deposits following the IPO.
The centre has recommended that the State Securities Commission increase the required deposit on shares to be bid from 10 percent to 20-30 percent.
According to centre director Tran Dung, many investors have abandoned deposits after submitting winning bids during share auctions, changing their
minds about acquiring the shares and leaving enterprises unable to meet their goals of mobilising capital through the share offer.
“There are many reasons for the abandonment, but the most common is that investors lacked sufficient information about the enterprise prior to the auction,” said Dung. “They register to buy shares at a higher price than the average bid in the auction and, rather than accept a loss, give up the deposit.”
He argued that “with a higher rate of deposit, the investors would have an incentive to obtain information about the enterprise and be more careful in bidding. And then the abandoning of deposits would be reduced remarkably.”
The centre has also proposed shortening the time limit in which winning bidders have to pay up from 15 to 10 days.
On the other hand, the time for the centre or the HCM City stock exchange to verify auction results could be increased to three days from two, said deputy director of Ha Noi centre Nguyen Vu Quang Trung, helping to increase accuracy and reduce mistakes in reporting auction results and collecting payment for shares.
“A shorter period in which to pay for shares won at auction would require investors to think more carefully before joining the auction, further reducing the number of abandoned deposits,” Trung said.
Trung urged the State Securities Commission to make the change as soon as possible.
“We expect a wave of IPOs in the first and second quarters of 2008, so the sooner, the better,” he said.
Trung also noted that the centre was changing software systems for handling auctions in order to ensure more accurate results. Through December 17, 2007, the Ha Noi Securities Trading Centre had conducted 47 auctions, with 324.7 million shares offered. Turnover from these auctions was 14.6 trillion VND (912.5 million USD).
Prime Minister approves upgrade of Cat Bi airport
The Prime Minister has approved a master plan to upgrade the Cat Bi International Airport in the northern port city of Hai Phong by 2015 and 2025.
The project is estimated to cost an investment of 1.7 trillion VND (106.5 million USD).
By 2015, the airport will be upgraded to receive A321 and B767 planes, 800 passengers per peak hour and 17,000 tones of cargoes a year.
By 2025, the airport will be capable to receive B747-400 and B777 planes, 1,440 passengers per peak hour and 82,000 tonnes of cargoes a year.
Real estate grabs big chunk of foreign cash
Around 85 percent of foreign direct investment in Ho Chi Minh City last year has flowed into the property sector, worrying experts and authorities.
HCM City had attracted 2.5 billion USD in the first 11 months, the highest in the country along with Ha Noi and Dong Nai province, Thai Van Re, head of the city’s Department of Planning and Investment, said.
Over 2.1 billion USD had been invested in real estate, mainly apartment and office blocks, he added.
Do Thi Loan, general secretary of the HCM City Real Estate Association, said her association had been contacted by many companies from the US , Australia , Canada , Italy , Singapore , China , and Japan about investing in the city’s property market as well as elsewhere in Viet Nam.
They said other Asian markets were nearly saturated while Viet Nam was in the first stage of urbanization, she said.
They said further that in the country’s major cities, the demand for housing, office space, and shopping was rising together with the population, and offered great investment opportunities, she added.
The deputy head of the Economics Institute, Nguyen Thieng Duc, warned, however, that haphazard construction of buildings would affect both the city’s visual appeal and environment.
He added that the administration should improve infrastructure to prevent traffic jams and floods, and make it appealing for foreigners to invest in other sectors.
Ba Ria-Vung Tau fails to hit FDI target
The southernmost province of Ba Ria-Vung Tau granted licences to 57 foreign-invested projects worth 1.21 billion USD last year, 21 of which were in industrial zones at the cost 781 million USD, said the provincial Department of Planning and Investment.
Surprisingly, registered capital in the province accounted for nearly 50 percent of last year’s target, even though the number of projects doubled that of 2006, the department said.
Department director Le Kim Huong blamed the shortfall on the fact that a Thailand invested petrochemical complex in Phu My 2 Industrial Zone, estimated to be worth 1.53 billion USD is way behind schedule and yet to receive a licence.
The province revoked the licences of 10 projects, value at 23 million USD citing their slowness, Huong said.
During the year, the province welcomed investors from 17 countries and territories. The Republic of Korea funded 15 projects, representing 26 percent of the province’s newly-licensed projects. Meanwhile, investment capital in Vung Tau from Singapore reached the highest level of any country with 547 million USD.
Last year’s projects were mostly in heavy industry, construction, transport infrastructure and environmentally friendly sectors.
In the time ahead, the department pledges to continue co-operation with industrial zones’ management to combat any difficulties faced by foreign-investors in the implementation of their projects, said Huong.
Despite missing its target, Ba Ria-Vung Tau remained one of the country’s most attractive locations for foreign investors. The province is home to 196 foreign-invested projects, capitalized above 7.59 billion USD. Of the total, 120 are currently operational.
Among the leading projects are a 1.13 billion USD steel complex owned by RoK’s Posco group, a 1 billion USD Nam Con Son Gas Project and a Taiwanese-invested stainless steel project worth 700 million USD.
Ba Ria-Vung Tau hopes to license 22 new foreign-invested projects with capital totaling 2.8 billion USD in 2008.
In order to reach its target for next year, the province will look at upgrading infrastructure in and around industrial zones such as Cai Mep, expanded Phu My 2 and My Xuan B1 – Dai Duong as well as Chi Linh – Cua Lap tourism complex.
HCM City: Retail purchase booms in new year
Retail purchase at Ho Chi Minh City-located supermarkets on the first day of 2008 increased 15-40 percent year-on-year.
The Co.opMart chain saw a 30-40 percent boom in revenues while Vissan’s 23 retail shops enjoy 10 percent increase over ordinary days.
However, the surge in the first day of the new year was foreseen with the commodity quantity prepared 2-3 times higher than usual. As a result, the prices of essential goods such as pork, beef, aquatic products, vegetables, and drinks were kept stable.
By 2025, the airport will be capable to receive B747-400 and B777 planes, 1,440 passengers per peak hour and 82,000 tonnes of cargoes a year.
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