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Vietnam latest news - Thanh Nien Daily

Vietnam central bank sees inflation ‘problem' as economy grows


Vietnam is facing “problems'' keeping inflation in check as the economy expands and investment in the country increases, the newswire Bloomberg quoted a central bank official as saying.
Consumer prices rose 7.2 percent in April from a year earlier, the fastest pace in eight months, spurred by higher costs for housing and construction materials.

The State Bank of Vietnam (SBV) expects inflation to be below the rate of growth in the economy, which the government forecasts to be 8.5 percent, said Pham Bao Lam, a deputy director general at the central bank.

“High economic growth means high inflation,'' Lam told a seminar Saturday on the sidelines of the Asian Development Bank annual meeting in Kyoto. “We try to control the balance by pursuing very tight monetary policy in order to avoid inflation from going out of control.''

Vietnam's economic growth has accelerated in each of the past three years. Pledges of foreign investment, which increased 49 percent to $10.2 billion last year, are gaining after the Southeast Asian nation became a member of the World Trade Organization in January.

Intel Corp. of Santa Clara, California, the world's biggest maker of computer chips, plans to spend $1 billion to build a plant in Vietnam. Osaka-based Matsushita Electric Industrial Co., the world's biggest consumer electronics maker, opened two factories in the nation in April.

Vietnamese Prime Minister Nguyen Tan Dung this year loosened currency controls and announced plans to increase sales of state-owned assets.

The new currency market gives investors more opportunities to bet on an economy that expanded at a 7.7 percent annual rate in the first quarter and may grow 8.3 percent this year, according to the Asian Development Bank.

The dong climbed 0.7 percent between Nov. 22 and Feb. 21, and erased gains since as regulators curbed borrowing for stock market investment.

“The strengthening of the dong is a big challenge because of the inflow of foreign investment,'' Pham said in an interview at the sidelines of the meeting. `”That is similar to other countries in the region. We have to accommodate to the situation.''

Source: Bloomberg

Toshiba to establish software center in Vietnam - Yahoo! News

Toshiba to establish software center in Vietnam
Martyn Williams
Mon May 7, 3:41 PM ET



San Francisco (IDGNS) - Toshiba plans to open a development center next month in Vietnam that will work on embedded software for consumer electronics products.


Toshiba Software Development (Vietnam) will be based in Hanoi and initially employ around 20 people but is expected to expand to about 300 employees over the next three years, Toshiba said.

At the center, low-level software processes will be developed and combined with upper processes from developers in Japan to make up the embedded software that runs in many of the company's digital consumer electronics products and cell phones.

Toshiba said its choice of Vietnam as the location for the new center was partly due to the availability of skilled personnel and lower wages that can be paid in the country. Toshiba already has ties to the country and supports scholarships to Vietnam National University and Hanoi University.

The Tokyo company has software development centers in India and China, and the new Vietnamese center is part of its plan to increase software development work over the medium term while not concentrating resources in any one country

Not sure if this goes here...ms

CALGARY, ALBERTA -- (MARKET WIRE) -- 05/07/07 -- Talisman (Vietnam 15-2/01) Ltd., a wholly owned subsidiary of Talisman Energy Inc. (TSX: TLM) (NYSE: TLM), has drilled a successful sidetrack well into its Hai Su Trang (HST) discovery made earlier in the year offshore Vietnam, providing valuable appraisal and field delineation data on the HST oil accumulation. This follows an earlier successful sidetrack into the adjacent Te Giac Trang (TGT) industry discovery.

"The continuing success in Vietnam keeps us moving forward towards our first development in Block 15-2/01 and reinforces our belief in the significant commercial potential of the block" said Dr. Jim Buckee, President and Chief Executive Officer of Talisman. "The well results are very encouraging because, not only do we see continuity in the oil bearing sands encountered in the original discovery well, but we also encountered new sands structurally higher in the section. It is great to have three successes so early on in the exploration term and we are very excited about the three-well exploration program planned for the third quarter of this year. This program is expected to test three prospects which potentially are all larger than HST, including a very large basement structure."

The sidetrack appraisal well was drilled to a total depth of 3,342 metres (measured depth) and successfully penetrated the HST structure on Block 15-2/01 approximately 1.1 kilometres to the northeast of the original discovery location. The sidetrack encountered 51 metres of net oil pay at a structural elevation very similar to the discovery well. Extensive down-hole well logging and sampling has confirmed the presence and quality of the same oil bearing zones that were discovered and tested in the original HST discovery well. With this new information, Talisman and co-venturer, PetroVietnam Exploration and Production Company ("PVEP"), expect to be able to move quickly to full field development
(cut..long article...but you get the idea...)

(cut..long article...but you get the idea...)

It is great to have three successes so early on in the exploration term and we are very excited about the three-well exploration program planned for the third quarter of this year. This program is expected to test three prospects which potentially are all larger than HST, including a very large basement structure."


Yea, we get the idea... Looks like we have about a 150' pay zone
And Mucho $$$$$$$$$ coming in.....

Prudential funds to target Vietnam, infrastructure
UK insurer Prudential aims to launch two new Vietnam funds and an Asian infrastructure fund before July, a senior executive with its asset management arm in Asia said Monday.

The Vietnam funds would include one focused on private equity, which the firm hopes will start with at least US$50 million in assets, said Guy Strapp, regional head of investment management in Asia for Prudential Asset Management.
"There's two [Vietnam] funds that we're looking to do. One would be private equity only. And one would be a mix, like the one we launched last year," he said.
The asset management arm of Britain's second-largest listed insurer raised US$282.6 million last year with the November launch of its Vietnam Segregated Portfolio fund. The fund includes a combination of public and private equity, as well as fixed income.
With one of the region's fastest-growing economies, Vietnam has become wildly popular with investors. The country's main stock index rose almost 145 percent last year and is up more than 30 percent since the end of 2006.
A Vietnam-focused fund launched in November by JF Asset Management for Hong Kong investors was fully subscribed on its first day, raising almost US$50 million.
Prudential is also looking to launch a fund investing in infrastructure-related stocks in Asian markets outside of Japan. The fund would use an open-ended structure which would allow it to be sold in a range of markets.
"We don't like doing really any of these funds with less than US$100 million. That doesn't mean you have to have US$100 million at launch. But you want to have expectations of growing to that," he said.
Strapp said that while Vietnam has been a particularly popular theme with retail investors in Japan and South Korea, the firm takes a longer-term view when launching its products.
"When we do these themes we try not to have them so topical that they're in favor today, and out of favor tomorrow," he said.
"When we do something like an infrastructure fund, we do it on that basis that there are very sound macro factors and its a sustainable investment opportunity."
Prudential, which started its funds business in Asia in 1998, now operates in 10 markets in the region.
The Asian fund operation's 29.2 billion in assets at the end of last year made it one of the region's largest fund managers. About 43 percent came from retail investors, with the remainder from institutions and Prudential's own insurance operations.
Strapp said the group is also looking to tap the region's pool of experienced emerging market fund managers by building a small team to run a portfolio of Latin American equities from Singapore. Prudential is also looking at expanding its private equity investment beyond Vietnam.
Source: Reuters

Gerber Technology opens headquarters in Vietnam
US-based Gerber Technology has established a wholly-foreign-owned enterprise in Vietnam’s Hanoi capital, strengthening its ability to deliver service and support to customers in the fast-growing Asian market.

The world’s leading provider of integrated computer hardware and software systems for the apparel industry said in a press release Wednesday it also plans to open a service location in Da Nang and a branch office in Ho Chi Minh City, two Vietnamese metro cities.
The branch office will include an Advanced Technology Center equipped with Gerber’s computer-aided design systems with plotters as well as its multi-ply cutting systems and automated spreading systems.
As the first of its kind in Southeast Asia, the center will serve as a facility for product demonstration, system testing and training for the center’s customers, engineers and students.
Gerber Technology also will offer service to apparel and related industrial companies in Cambodia, Laos and Thailand.
“There is a tremendous opportunity for companies in Vietnam to improve quality and expand their production capabilities by investing more in automation,” said James S. Arthurs, president, Asia-Pacific, Gerber Scientific Inc.
He said Gerber already had over 150 customers using more than 500 systems in Vietnam through the firm’s distributor, Schmidt Vietnam Co. Ltd., since 1994.
“And we are delighted that the management and staff responsible for our operations for the last 12 to 13 years have agreed to join Gerber. This will ensure the continuity of our customer relationships,” Arthurs also said
Source: TextileWorld.com

Foreign investors eye industrial parks in northern Vietnam
A foreign consortium of companies has submitted proposals to develop urban-industrial parks in the northern Bac Ninh province, viewed as a focal area for high-tech projects in Vietnam.

The interested group includes Taiwan’s Foxconn, South Korea’s IGS, Japan-based Orix and Singapore’s Sembcorp, the local government said, adding that their proposals would be submitted to the Prime Minister for final say.
Of those Taiwan’s Foxconn, who is preparing to start work on its first factory to manufacture electronics products in the province, has proposed an urban-industrial park on a 1,000 ha site in the Bac Ninh Hi-Tech Park in Que Vo district.
The park is designed to comprise 766 ha of industrial area and 234 ha of urban development.
The world’s leading maker of outsourced electronics products is also working on formalities to establish its subsidiary, Foxconn Vietnam.
It has been allotted 11,000 sq.m in the Que Vo Industrial Park to build its first facility on which construction will start soon.
Foxconn, which manufactures Nokia cell phones, iPod music players, PlayStation 2 game consoles, and Sony laptops, will invest US$5 billion in Bac Ninh and Bac Giang provinces, including some $1 billion this year alone.
Under a plan it discussed with the leaders of the two provinces, Foxconn is likely to build a 1,000 ha complex in Bac Ninh including a hi-tech park, township, golf course, hospital, and entertainment park and a similar 1,500 ha complex in Bac Giang.
Foxconn, the trade name for Hon Hai Precision Industry Co., Ltd., exports some $45 billion worth items each year, with 80 percent made in its facilities in China.
South Korea’s IGS has planned to develop urban-industrial complex at an estimated cost of $1.5 billion.
As designed, IGS will build factories and showrooms on 400 ha and an urban town on 200 ha, which is home to shopping center, school, clinic and recreation facilities, in the Nam Son- Hap Linh Industrial complex.
The investor has pledged to call for other investors from Korea to join the project.
Sembcorp Industries of Singapore has proposed an industrial park named Vietnam
Singapore Industrial Park (VSIP) Bac Ninh signed for Singapore investors.
VSIP IP, to be developed on 700 ha in the Tien Du and Tu Son districts, will include 500 ha for industrial facilities and 200 ha for commercial-residential-service area.
SembCorp Industries, the leading power and integrated utilities group in Singapore, has invested in two mega projects in Vietnam – the Vietnam-Singapore Industrial Park and Phu My 3 Power Plant.
Japan-based Orix is set to build a 1,200 ha-IP in Yen Phong district.
Orix is an integrated financial services group based in Tokyo, providing innovative value-added products and services to both corporate and retail customers.
The province has lured around 70 foreign-invested projects with total registered capital of $620 million in the first quarter.
It now has four IPs, which are home to 222 projects worth $560 million in pledged capital, with the province bent on developing 10 more in the near future.
Source: VietnamNet, Thanh Nien – Compiled by Dong Ha

Vietnam rolls out red carpet for foreign property investors
Vietnamese Prime Minister Nguyen Tan Dung signed Wednesday a directive guiding the implementation of the Real Estate Law, focusing on extending the rights of foreign investors in domestic markets.

Under the directive, PM Dung instructed the Ministry of Construction to lay the legal framework so that more foreign property investors would be able to do business in Vietnam.
He also asked the ministry to be in touch with agencies concerned to make a careful check of all legal relevant documents to modify them on par with the new law.
The modification must be completed in the second quarter at the latest.
The Ministry of Natural Resources and Environment was directed to work with the Ministry of Construction to review regulations governing the land-use rights to make appropriate amendments.
PM Dung told the Ministry of Finance to chalk out and put forth to the government policies on land-use duties, land-use fees and other financial responsibilities concerning real estate transactions.
Besides, the ministry was also tasked with offering soft loans for housing projects to house poor people, workers, and students.
The Vietnamese parliament – the National Assembly- ratified the Real Estate Law last January.
Reported by Manh Quan – Translated by An Dien

Japanese investors flock to Vietnam

Reuters

Hanoi, Tokyo: Tada-yoshi Okimoto, an auto company executive from southern Japan, rubs shoulders with dozens of Vietnamese at a brokerage in Ho Chi Minh City, excited to get a piece of Vietnam's fledgling stock market.
Okimoto is on a tour to Vietnam's budding financial centre organised by a Japanese travel agency that brings Japanese retail investors to Vietnam to open share trading accounts. The tour is so popular with Japanese wanting to take advantage of a burgeoning stock market that it runs almost every working day.
"In many countries, the stock market is mature and goes up and down a lot. But in Vietnam, the stock is very new so the chart is going up all the time. In two or three years' time, we will receive a lot of money from our investment," Okimoto said.
Driven by low interest rates at home, Japanese investors are eyeing Vietnam, a communist-ruled country experiencing fast economic growth after starting gradual economic reforms in 1986, as an alternative to China and India.
The crowd at BIDV Securities Company (BSC) is mixed: there are men and women, the well-dressed and the shabby. The place is so full people are sitting on the floor, all eyes on the three massive screens displaying stock information.
Helping hand
To help people like Okimoto, forms are printed in Japanese and clerks speak fluent Japanese, explaining the rules of the stock market. It even operates a Jap-anese website for investors from Japan, with a $180 annual fee.
In two months' time, when officials in Hanoi have processed the application, he will receive security passcodes allowing him to start investing.
"Vietnam's economic situation is similar to China, where a communist country opens up its financial markets and tries to beef up the capital markets by joining the WTO," said Kazuo Murakami, a spokesman for Japan's Aizawa Securities Co Ltd, which sells a Vietnam fund. "It's natural for Japanese investors to apply sharp rises in Chinese stocks to Vietnamese shares."
Japanese investors are estimated to represent about five per cent of the Vietnam's 2.5-trillion yen stock markets. Foreign investors account for 20 to 30 per cent.
The flood of foreign money has helped Vietnam's main share index jump nearly 145 per cent last year and 23 per cent this year so far.
But not everything is rosy for investors.
The market is still small and the market infrastructure is in its infancy, especially the unregulated over-the-counter market, where investors may find the best bargains.
Things may change, however, as the Vietnam government has tried to rein in the unregulated market, asking companies that have sold shares on the grey market to register with regulators.
"(OTC shares) will be accessible for foreigners" after these steps, said Paul Nguyen, a director of Ho Chi Minh City-based Vinchi Capital Management which is trying to set up a Vietnam fund there.
Capital Partners Securities Co Ltd, the first Japanese broker to sell a Vietnam fund, said its clients are looking for emerging-market companies for long-term investments for retirement. "We are thinking of Kazakhstan next as we have received a lot of inquires," said Katsuyuki Ueoka, deputy vice-president, Capital Partners' product division.

Gov’t approves overseas investment promotion offices
Vietnamese Prime Minister Nguyen Tan Dung has agreed to dispatch local officials abroad to main offices for trade and investment promotion as petitioned by the Ministry of Planning and Investment.

In the near future, such offices will be opened in important markets including France, Germany, Japan, Qatar, Republic of Korea, Singapore, Saudi Arabia, Taiwan, and the United States.
Under the scheme, investment promotion offices will devise working plans for regions, countries and territories, study investment partners, the move of foreign investment flow to give out suitable measures, and assist foreign investors in Vietnam and Vietnamese investors abroad.

Such offices will be key points to support investment promotion activities abroad, mobilize official development assistance (ODA) and assist bilateral and multilateral economic cooperation programs and other programs under the guidance of the Ministry of Planning and Investment.
Source: VNA