Vietnam News Network

Vietnam News: Local, National, Business, Sport, Entertainment and Technology

Trade LTCUSD, Bitcoin and Cryptocurrencies

BUY & SELL LTCUSD | View LTCUSD News & Updates

Buy Sell LTCUSD, Bitcoin and Cryptocurrencies

BUSINESS IN BRIEF 27/1   2010-01-27 - VietNamNet/VNA, ND

Nation lures 3.18 billion USD in FDI in Jan

The nation attracted 3.18 billion USD in foreign direct investment in January, a year-on-year rise of 71.9 percent, according to the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment.

Of the sum, more than 2.85 billion USD was in registered capital for 40 newly-licensed projects and 32.9 million USD was in additional capital for 3 existing projects.

The newly-licensed projects include a 95 million USD trade centre building project by Thailand’s Promenada Canany Ltd. Co., a 66 million USD project of the Hoya Lens Vietnam Ltd. Co., and a 37 million USD animal feed project in the northern province of Hai Duong.

FDI businesses posted export revenues of 2.67 billion USD in Jan., a year-on-year increase of 35.5 percent. They recorded an import value of 2.35 billion USD, a year-on-year rise of 87.8 percent.

They ranked second after non-State businesses in industrial production value with a year-on-year increase of 29.1 percent.

Experts hope that the country’s FDI disbursement rate would be better than that of 2009.

Wire maker lists on HCM City bourse

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

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

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

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.

Golden Dragon Prize 2009 awarded

80 foreign direct investment (FDI) enterprises were awarded with the Golden Dragon Prize 2009 at the Hanoi Opera House on January 24.

This is an annual prize organised by the Vietnam Economic Times in co-ordination with the Foreign Investment Agency under the Ministry of Planning and Investment with the aim of honouring the FDI enterprises’ contributions to the Vietnamese economy.

This year, the real estate and service sector saw the highest number of award-winning enterprises, as much as 25% of the total award-wining enterprises, followed by the agricultural, forestry, fishery and foodstuffs, beer and soft drink sector with 14% and the construction and construction materials with 14%.

On this occasion, the Ministry of Planning and Investment presented certificates of merit to 10 FDI enterprises with the biggest registered capital in Vietnam in 2009.

Gia Loc Industrial Park added to industrial parks development planning

The Prime Minister has agreed to add the Gia Loc Industrial Park on an area of 198 hectares in Hai Duong province to the list of industrial parks the establishment of which is expected to be prioritized through 2015 with an orientation for 2020.

The Prime Minister has assigned the Chairperson of the provincial People’s Committee to give guidance to the province’s relevant agencies and the investor to get opinions from relevant ministries and branches in order to set up and implement the Gia Loc Industrial Park investment project.

The Hai Duong province is permitted by the Government to set up 17 concentrated industrial parks on a total area of 3,607 hectares by 2020, in which the detailed plans of 10 industrial parks have been approved on a total area of 2,087 hectares.

Other news

Ministry says 4.9 percent electricity price increase is the best option   2010-01-27

Overseas bond issue raises $1bil at 6.95% yield   2010-01-27

Asia remains key export market in 2009   2010-01-27

Import taxes to help control petrol prices   2010-01-27

Inflation hits 7.6% year-on-year   2010-01-27

Ministry says 4.9 percent electricity price increase is the best option   2010-01-27

Flower, ornamental tree prices scale new heights   2010-01-27

Aviation market grows 8.4% in difficult year   2010-01-27

Tax on real estate transfers   2010-01-27

Commercial banks request interest rate ceiling removal   2010-01-27

Steel competition seen harsher as market faces glut   2010-01-27

Commercial banks try to attract overseas remittance   2010-01-27

Six problems that may make costs higher for businesses in 2010   2010-01-27

Dong Nai Stirs Up Real Estate Market Down South   2010-01-27