Thread: Latest news on the Dong!

Ngày 29/5/2007

1 USD=16.105,00 VNĐ

Tỷ giá giao dịch của NHTM
Ngày 29/5/2007

USD

Mua

16.075,00

Bán

16.080,00

THIS NEEDS TO CHANGE. LOOKING FORWARD TO IT!

Foreign investment funds queuing up to enter Vietnam

VNECONOMY updated: 29/05/2007


Mekong Capital

Vietnam’s stock market can bring super profit, and that explains why foreign investment funds are pouring their money into Vietnam’s stocks.

70 foreign funds entering Vietnam, following one another

Investors whisper in each other’s ears that investment funds earned super profit in Vietnam last year. Two funds gave investors the profit of 140%, which meant they received 1.4bil for 1bil they invested. Another fund, which injected money in real estate, did not gain such a fat profit, but the profit proved to be also very encouraging, at 60%, which meant investors received $0.6 for every $1 of investment.

The fat profit Vietnam can bring to investors has encouraged them to come to Vietnam. The figure released at a workshop late last week may shock everyone: 70 foreign investment funds are waiting to join the market.

There is no exact figure about portfolio investment in Vietnam, as the OTC market is out of the State’s control. However, it is clear that the three biggest investment funds on the market now hold nearly $4bil. Dragon Capital is managing some $1.5bil, VinaCapital $1.3bil and Indochina Capital $1bil. VinaCapital has wrapped up a visit to the world’s financial centres to raise $250-300mil.

A series of domestic based funds have also been set up recently. The Phu Lan Fund Management Company has set up a new fund, called Lion Capital. Louis Nguyen, Phu Lan director, said that the company was planning to raise $200mil of funds from domestic and foreign investors in America, Asia and Europe, which will be injected in 10 projects.

The beyond-expectation growth of the three funds has promoted other investment funds to join Vietnam’s market. Mekong Capital has wrapped up the raising of $100mil for its third fund, called Azalea Fund. Mekong’s first fund had only $18.5mil in capital, while the second had $50mil, and the third is two times bigger than the second one.

In the last few years, an investment deal of Mekong Capital was just valued at several hundred thousands dollars, but now the fund has to inject 5-6mil in every deal. The fast developing stock market has made the value of private enterprises skyrocket, and Mekong Capital has to pay high to be eligible to become a strategic shareholder in local companies.

After Azalea Fund, a series of funds are waiting for operation licences from the State Securities Commission. These include one Japanese owned fund, estimated to have $200mil in capital. Chinese and Hong Kong financial institutions have landed in Vietnam, setting up financial consultation firms.

Investment funds are all getting ready for the auctions of big companies’ shares to be held with their equitisation in the coming time. It is expected that some $2bil more will be injected in Vietnam in 2007.

Listing shares No 1, real estate No 2

Director of a fund management company said that most investment funds were making investment in shares of listing companies and OTC shares. Meanwhile, injecting money in the real estate sector proves to be the second choice of investment funds, though this is a long-term investment.

BankInvest, which only injects money in private enterprises, has announced investment in two initial projects, AAA insurance and Duc Thanh Wood Processing Company.

Having been present in Vietnam for a long time, Mekong Capital has invested in 12 companies, including big names like Tan Dai Hung plastics, Ngo Han electromagnetic wire, Minh Hoang garment, Saigon Gas, Lac Viet IT. Especially, Ngo Han two times has received investment, once in April 2005 ($1.85mil), and once in January 2007 ($1.91mil).

Vietnam’s largest economic zone on the move
VNECONOMY updated: 28/05/2007


Van Phong Bay

Van Phong, with a total area of 150,000ha, 80,000ha of water surface and 70,000ha of land, is the largest economic zone in Vietnam at this moment.

One year ago, the Prime Minister signed decisions to establish and issue the operation regulations of the Van Phong Economic Zone and set up the management board of the zone by merging the management board of the Van Phong Economic Zone and the management board of industrial zones in Khanh Hoa province.

This economic zone is much larger than other economic zones of Vietnam, such as the Dung Quat Economic Zone (10,300ha), Chan May-Lang Co Economic Zone (27,108ha) and Nhon Hoi Economic Zone (12,000ha).

Notably, the zone has Van Phong Bay, which has a special location on the international marine and trade map. This is at the most eastern point of the Indochina peninsula and close to international marine routes from Europe to Asia, Northeast Asia, South Asia, Oceania and Latin America and vice versa. This is a fundamental advantage that few other places in the world have.

Van Phong Bay is one of only a few bays in Vietnam (Van Phong, Cam Ranh and Vung Ro) which is out of the wind, free from alluvial deposits and which has maintained its original depth over the years. These are pre-conditions for building an international entrepot on this site.

For that natural condition, the Van Phong Economic Zone is established with the goal of becoming a general economic zone to develop industry, tourism, service, aquaculture and residential areas.

“The Van Phong Economic Zone is a key in the strategy to develop core economic regions of the coastal area of the southern part of the central region and it enjoys the highest preferential conditions of Vietnam at the moment,” said Chairman of the Khanh Hoa Provincial People’s Committee Vo Lam Phi.

Last year the Ministry of Transport approved the detailed plan of the Van Phong Economic Zone and submitted to the government for approval a project to build the Van Phong International Container Transit Port. This project will be kicked off at this year’s end with investment of US$198 million. This ship can welcome container ships of 6,000 to 9,000 TEUs.

The Ministry of Agriculture and Rural Development (MARD) is building the Hoa Son reservoir in Van Long commune, Van Ninh district to provide water to the Van Phong Economic Zone.

The Ministry of Industry has also instructed the Electricity of Vietnam (EVN) group to build a power grid to serve the zone.

The Van Phong Economic Zone has two parts: the non-tariff zone and tariff zone. The non-tariff zone includes the international container entrepot, the logistical area of the port, and a trade-finance centre. The tariff zone comprises the oil entrepot, the spe******ed port, the general port, industrial zones and residential areas.

Realising decisions of the Prime Minister and guidance of the local authorities, the management board of the Van Phong Economic Zone has designed a detailed plan of the international container entrepot (400ha), Hon Gom service centre (non-tariff – 900ha), Bac Van Phong resettlement area (90ha), infrastructure facilities for major areas (720ha), Tuan Le-Hon Ngang central zone (120ha), combined zones and Bac Tuan Le tourist zone (780ha), Tu Bong residential area (1,400ha).

Khanh Hoa province’s chairman Nguyen Trong Hoa said that some Japanese and Korean groups had come to survey the investment environment of the Van Phong Economic Zone, particularly the international container entrepot, the thermo-power plant, shipyard, and steel projects.

Some local investors are negotiating for land leasing and waiting for investment certificates for projects to build industrial zones and tourist sites at Doc Let, Dai Lanh, Tuan Le-Hon Ngang, Hon Gom, and Ho Na.

Many projects are underway, including the US$60 million petrol bonded warehouse of the Van Phong Petrol Bonded Warehouse Joint Venture Co, Ltd., US$20 million cement distribution station project of the Nghi Son Cement Company, US$75 million Van Thang Industrial Zone and residential area project of Korea’s Shinsojae Energy, US$125 million Bai Tham ecological tourist project, etc...

Thanks, all, for not forgetting our ding dang dong.

Industrial output maintains growth

VNECONOMY updated: 29/05/2007


Viet Nam’s industrial output in the first five months of this year has maintained its high growth rate of 16.8 per cent, with a total value of VND225.7 trillion (US$14.1 billion), according to the estimates of the General Statistics Office (GSO).

Foreign firms make up 40 per cent of the total output, while the non-State-owned sector accounts for 36 per cent and State-owned enterprises account for 24 per cent.

In growth rates, the non-State-owned sector ranks the highest, with a rate of 20.4 per cent and a total value of VND82.2 trillion ($5.1 billion). Meanwhile, State-owned enterprises only exhibited growth rates of 7.9 per cent, for a value of VND54.1 trillion ($3.38 billion).

The foreign-invested sector in the first five months of the year produced a total value of VND89.4 trillion ($5.58 billion), a year-on-year increase of 19.3 per cent.

Automobile, electrical motor and motorbike production increased by 40.8, 40.2 and 36.5 per cent, respectively, and are part of the processing industry, which has achieved a more impressive growth rate than the average for all the sectors in the industry.

The pesticide industry produced 24,495 tonnes over the past five months, an increase of 23.9 per cent, while the steel industry produced a total volume of 1.8 million tonnes, reaching a growth rate of 20.9 per cent.

Despite the impressive results from the processing industry, the GSO also noted other sectors that exhibited low growth rates during the first five months of the year.

The power industry produced 25.9 billion kWh, a rise of only 12 per cent from the corresponding period last year. Meanwhile, the garment sector reached a growth rate of 15.4 per cent.

Some sectors saw falls in output during the period, including crude oil and liquefied natural gas, down 7.6 and 15.9 per cent, respectively.

Bicycle production continued slipping 71.3 per cent over the same period in 2006. The industry produced only 236,722 units in the past five months, according to GSO statistics.

The southern province of Binh Duong tops the list of the places developing industry the fastest with a rate of 23 per cent, followed by the southern province of Dong Nai (22.6 per cent), Ha Noi (20 per cent) and Hai Phong (18.5 per cent).

HCM City’s growth rate is 12.1 per cent.

Vietnam-EU relations to go strategic: PM Dung




Prime Minister Nguyen Tan Dung has called for negotiations between Vietnam and the European Union (EU) on a new strategic partnership agreement to begin sooner.

During a reception given to the outgoing head of the European Commission (EC) delegation in Vietnam, Markus Cornaro, in Hanoi, on May 28, PM Dung singled out the EC Ambassador’s contributions to the development of Vietnam-EU relations.

Of particular importance, the PM noted was the Ambassador's efforts in aiding Vietnam’s admission to the World Trade Organisation and the implementation of the Vietnam-EU master plan, while serving his term between 2003-2007.

Speaking at the reception, the outgoing statesman said the bilateral EU-Vietnam relationship has moved from strength to strength and the EC is eager to enter into negotiations for the agreement that would benefit not only the EU and Vietnam but also the EU-ASEAN free trade market.

The EU has already pledged a 30% increase in its official development assistance (ODA) to Vietnam in health care and poverty reduction among other fields from now until 2013, as a sign of the importance the EU places on the relationship, he said. In 2006, the EC granted US$936 million in ODA to Vietnam.

On May 25, Cornaro was awarded the insignia “For Public Health”, for his contributions to the development of the country’s health sector. (VNA)

Dung Quat economic zone has big year

The Dung Quat Economic Zone in central Quang Nam province, has licensed 27 project with a combined registered capital of VND 3.3 trillion (US $206 million) over the past fourth months, according to the Dung Quat Economic Zone Authority (DEZA).

Le Van Dung, Director of the Centre for Investment and Trade Promotion at the DEZA, said on May 28, that major investors from Taiwan, the Republic of Korea, Japan, and the US had visited the zone and were eager to invest in the areas of paper, coal fuelled power plants, electronics, mechanical engineering, heavy industry and storage services.

The EZ has so far attracted 113 investment projects with a total registered capital of US $5 billion, including 15 foreign investment projects, he said, adding that 33 of them are operational and 15 are currently under construction.

Quang Ngai now ranks 11th among localities nationwide in terms of total invested capital. In 2006 alone, the province was the country’s fifth biggest investment attracting locality. (VNA)

Viet Nam becomes new outsourcing hub for investors

VNECONOMY updated: 31/05/2007


Photo: Viet Tuan

Viet Nam is becoming a new outsourcing hub for foreign investors, attracting more giant software development corporations.

Foreign investors and the Vietnamese government are trying to push up the economy, turning it into higher-tech and higher-margin businesses, and winning commerce away from better-establishing countries, a local newspaper reported on May 29.

According to the Wall Street Journal, six years ago, when British recruitment agency Harvey Nash PLC began scouting for an offshore hub for its news software-development business, Viet Nam was not an obvious choice. The country still was in the business of trying to make shoes, bicycles and clothes cheaper than any body else, while countries such as India, the Philippines and South Africa already were latching onto the outsourcing phenomenon.

But, Viet Nam became the top contender with mix of low wages, improving English-language skills and technical proficiency, when Harvey Nash's inspection team returned from Ha Noi to assess the options, the paper added.
Today, Harvey Nash employs 1,500 people across Viet Nam through its own business and its partnership with FPT Software Corp., a unit of Viet Nam technology company FPT Corp., Wall Street Journal said.

The paper cited Microsoft Corp. founder Bill Gates during his visit to Viet Nam last year as saying there was no reason Viet Nam couldn't follow India into software development and other forms of outsourcing.

Besides, last year's decision by Intel Corp. to build a 1 billion USD semiconductor factory near Ho Chi Minh City was a turning point of sorts for such efforts.

According to the paper, California consultancy NeoIT ranked Viet Nam 's Ho Chi Minh City as the top non-Indian city in its 2006 review of the most competitive cities for outsourcing, based on the available labour pool and infrastructure. The only other non-Indian cities in the top 10 are Manila and Shanghai.

However, the paper said, Viet Nam still is some way from becoming one of reigning outsourcing giants in Asia.

Moreover, the global outsourcing industry relies as much on the quality of telecommunications as on the talent pool, and in this respect Viet Nam still is lacking.

But building up telecommunications is a quicker fix than building up a competent work force, and an increasing number of companies, the paper said.

HCM City hosts investment expo

VNECONOMY updated: 29/05/2007


Viet Nam’s first-ever investment exhibition was held at the weekend in HCM City.

The two-day event ATIC@HCM City attracted banks, securities firms, funds and fund management companies, and investors.

It featured around 20 seminars in addition to the exhibition booths, and more than 20 international and local experts took part in the discussions.

The topics at the seminars included investment pitfalls and opportunities in Viet Nam, trading strategies that work, how to incorporate money management and trading plans, keys to profitable investment, and what foreign investors are looking for.

Speaking at the opening session, Tran Dac Sinh, director of the HCM City Securities Trading Centre, noted that the event offered investors an opportunity to exchange opinions and experiences and improve their knowledge.

Stephan Stadelmann, managing partner of financial consultancy Finetik, said many institutional investors from countries like South Korea and Japan wanted to invest large amounts in Viet Nam’s stock market. But he expressed concern about its technical infrastructure.

"It is not easy for foreign investors to have their orders for large volumes matched since the HCM City exchange only has three order-matching sessions a day."

Investment in new technologies and the use of continuous order-matching would ease foreign investors’ way into the market.

The exhibition was organised by Singapore’s NEXTView group and the HCM City Securities Trading Centre.

700 billion VND of Gov’t bonds auctioned

VNECONOMY updated: 29/05/2007


Photo by Viet Tuan


The Government auctioned off 700 billion VND (approximately 43.7 million USD) in Government bonds amid frantic bidding at the Ha Noi Securities Trading Centre, on May 28.

The five-year bonds all bear a face value of 100,000 VND and will be issued by the State Treasury on May 30.

The auction drew 13 bidders that registered 4.38 trillion VND (273.7 million USD), more than six fold the volume called for in the bidding.

Three of the bidders won at an interest rate of 7.05 percent, equal to the ceiling interest rate and 0.05 percent higher than that of the last auction on April 23.

After nine issuances, the State Treasury has so far generated 4.96 trillion VND (310 million USD) through auctions at the Ha Noi Securities Trading Centre.