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Foreign financial experts and fund managers in Viet Nam anticipate a new wave of investor interest in shares of Vietnamese commercial banks next year.

The total percentage of shares in commercial banks that may be held by foreign institutional and individual investors would remain fixed next year at 30 percent, according to the State Bank of Viet Nam.

Nevertheless, next year's investment would likely be two or three times higher than this year, financial experts predicted, due to the application of international practices in the Vietnamese stock market in accordance with those of major world securities markets in the US, Japan, Singapore and Hong Kong.

The Viet Nam Association of Foreign Investors has meanwhile petitioned the Prime Minister to expand the range of eligible traders in bank shares and to increase the level of foreign ownership in commercial banks to 49 percent, with up to 30 percent for strategic shareholders.

Loosening controls on foreign ownership would help banks attract suitable strategic investors, the association argued, and would improve the liquidity of bank shares on the stock market.

With higher foreign ownership limits, banks could access capital, advanced technology and management experience of foreign strategic partners more quickly.

Currently, only four commercial banks have sold shares to foreign financial institutions: Asia Commercial Bank, Sai Gon Thuong Tin Commercial Bank (Sacombank), Viet Nam Commercial Bank for Private Enterprises (VPBank), and Technical and Commercial Bank (Techcombank).

According to the State Bank branch in HCM City, State-owned commercial banks in the city now account for 44 percent of deposits and outstanding loans, while joint stock commercial banks can claim 35 percent of the market and foreign banks 20 percent.

It’s hard to say exactly whether Hai Phong city itself or Chinfon Cement is the better known among Vietnam’s business community. Located in Hai Phong, the successful cement supplier has contributed to the city’s economic achievements and reputation over more than a decade of operations.

It was awarded the Asia Pacific Quality Award 2005 last year by the Asia Pacific Quality Organisation, in recognition of its “World Class Qualification” among foreign-invested companies with more than 200 employees in Vietnam. The company expects to record US$100 million in turnover this year.

When asked about the secret of Chinfon’s success, General Director Mr Tony Liu said its policy of seriously caring for what customers want is the most important step towards progress. His company has always offered the best product, service, and price, even when the local cement market was in crisis.

Three years ago there was a severe shortage in local cement supply and Chinfon bore losses in order to import clinker, at about US$5 per ton in Hanoi and US$10 in Ho Chi Minh City, for expanded production in order to satisfy the local market and maintain a stable price. Chinfon is the biggest clinker importer in Vietnam.

Deputy General Director Mr Nguyen Manh Cuong added that favourable natural advantages also support their success. Production is located near material sources and a river port that’s very convenient for distribution.

Technology and equipment always receive investment from Chinfon in order to maintain the company’s competitive base and develop its capacity. “Our production line is equipped with advanced machinery and equipment imported from well-known manufacturers in Europe, the US and Japan,” said Mr Manh Cuong. “It’s comparable to any production line in the region.”

Another secret of success is Chinfon’s internal personnel policies, which are always aimed at improving the life of staff. The cement producer has tried to raise the average salary for its employees to VND3.5 million; no small sum in Vietnam.

A recipient of the Golden Dragon Award for five years in succession since it began in 2001, Chinfon now considers the award an annual target among other production and business targets. “We are happy to be recognised by the business community and the broad circle of local customers who are readers of Vietnam Economic Times,” said Mr Liu. “The award has helped to encourage the working spirit of our staff and push both capacity and quality in production.” He added that the award has created positive pressure on the entire company, motivating it to improve even further.

Licensed for investment by the Ministry of Planning and Investment in 1992, Chinfon Hai Phong Cement is a joint venture between Chinfon Vietnam Holdings Co. Ltd. from Taiwan, who hold 70 per cent of total capital, the Minh Duc Construction, Stone and Additives Company (under the Hai Phong People’s Committee), holding 15.56 per cent, and the Vietnam National Cement Corporation, which hold the remaining 14.44 per cent.

Total investment in the first stage reached US$264 million. Ground was broken in 1993 but it took more than three years for construction, and the kiln burning ceremony for the first cement batch could only be made in late 1996.

The first bag of cement came out at the beginning of 1997 with the beautiful name Hoa Dao (peach flower). And the brand has since gained more and more favour among local builders for its reliable quality regardless of the quantity ordered. The company’s production has reached 120 per cent of capacity but market demand for Chinfon cement is yet to be met.

Standards are strictly followed at Chinfon. All processes are tested in accordance with Vietnamese, ISO 14000 (recognised in 2003), British and American standards. Chinfon is famous for its efforts in protecting the environment. Understanding how important the surrounding nature is to the company itself and the society, Chinfon periodically invites surveyors to the production site to check on pollution levels.

Chinfon contributes annually about VND120 - VND130 million (US$750 - US$813 million) to the state budget. It was the first company to share profits of up to US$60 million with city authorities to build infrastructure and improve living facilities.

Chinfon has invested in another production line in the south of Vietnam. It believes its business, which is based on stable conditions, will continue to develop into the future.

Vietnam prepared for next talks on WTO entry
09:41' 04/10/2006 (GMT+7)
Soạn: HA 914077 gửi đến 996 để nhận ảnh này

VietNamNet Bridge - The Vietnamese negotiators are working hard on preparations for the 13th round of multilateral talks for the country's accession to the World Trade Organisation (WTO) that is scheduled to take place on Oct. 9.

Experts view this round of talks as extremely important for Vietnam as its results will lead to a decision on whether Vietnam gets WTO admission before the APEC Economic Leaders' Meeting in November.

If this round of multilateral negotiations goes smoothly, Vietnam and its partners will hold another round of talks on Oct. 25 to finalise procedures for Vietnam's accession to the WTO.

The WTO General Assembly will then hold a meeting in early November, during which it will screen documents submitted by the WTO Secretariat relating to the admission of Vietnam to the organisation.

Once these documents are approved, Vietnam basically completes all its negotiations prior to the APEC Economic Leaders' Meeting, and meets the requirements for becoming a WTO member.

Trade Minister Truong Dinh Tuyen said differences only exist in negotiations with the US, the European Union and Australia.

However, Vietnam will not accept unreasonable demands put forth by partners in negotiations and if necessary, it can reschedule the deadline for joining the WTO no later than early 2007, the Trade Minister said.

Vietnam praised for APEC Week preparations
09:53' 04/10/2006 (GMT+7)

VietNamNet Bridge - APEC delegates have expressed their satisfaction at Vietnam's thorough preparation as well as its well-designed and detailed plans for the APEC Economic Leaders' Meeting Week to be held in mid-November.

Around 280 delegates from 21 member economies and observers of the Asia-Pacific Economic Cooperation (APEC) arrived in Hanoi on Oct. 3 to make their second inspection and help the host country to finalise the preparations for the APEC Week.

During their four-day advance visit, sub-committees under Vietnam's National Committee on APEC 2006 will present all preparations for APEC 2006 Summit Week as well as detailed scripts for every related events.

Representatives from Vietnam's relevant agencies affirmed to exert their efforts for the success of the APEC Economic Leaders' Meeting Week.

Meanwhile, a representative from the APEC Media and Communication Sub-Committee asserted to create the most favourable conditions for around 1,500 foreign journalists who will come to Hanoi to cover the APEC Week.

Future trends in Vietnam’ subsidy policies in WTO defined
14:20' 05/10/2006 (GMT+7)

VietNamNet Bridge - An international seminar titled “Vietnam in WTO: Future Trends in Subsidy Policies” was organized in Hanoi on October 4.



The event, jointly organized by the Development Cooperation Office of the Embassy of Italy in Hanoi and the Ministry of Trade, marks the end of the two-year-project on “Technical Assistance to Facilitate Vietnam’s Accession to WTO”, financed by the Italian Ministry for Foreign Affairs for a total amount of about 752,000 euros.



Participants were introduced to the project activities and their results related to specialized training in international trade law, research on subsidies in the agricultural and industrial sectors, intermediate seminar on antidumping measures, and the debate over future subsidy policies in the agricultural and industrial sectors in the forthcoming accession to WTO.



“Vietnam’s accession to WTO will be a turning point for the country's economy, defining its integration in international markets and important political relevance, since the whole international community has been recognizing Vietnam as a mature country, ready to compete on equal terms within the global market, ” confirmed H.E. Mr. Alfredo Matacotta Cordella, Ambassador of Italy during a press conference.



According to Professor Claudio Dordi, Director of the Technical Assistance Project, the only solution to avoid the possible side effects of the confrontation with a world-scale economy is to enhance the enterprises’ competitiveness and efficiency.



“The research results clearly showed that current subsidies are totally irrelevant if they are not supported by a steady increase in efficiency. It is necessary to implement new subsidy policies, which could favor specific sectors, such as technological modernization, vocational training, infrastructures, at the same time promoting the “sustainable development of the country economy”, he added.



This point was further stressed by Mr. Luong Hoang Thai, Deputy Director of the Multilateral Trade Policy Department of the Ministry of Trade and Ms. Nguyen Thi Quynh Nga, Research Director, saying that “the World Trade Organization only regulates subsidies on products for export, thus having no influence at all on domestic production”.



In the afternoon, two round table sessions were specifically structured to promote the discussion on the role and content of subsidies in the post-accession phase among relevant organizations, institutional representatives, representatives from enterprises and associations.



Final conclusions of the event will be an integral part of the guidelines on subsidies that the project team will submit to the Ministry of Trade.



Vietnam’s economic growth and integration is one of the main focuses of the Italian Development Cooperation in Vietnam. In recent years, the Italian Government has implemented several projects favoring the development of small and medium-sized enterprises.

Korean group plans to invest in Vietnamese oil refinery
15:36' 04/10/2006 (GMT+7)

VietNamNet Bridge – Hanwha, a leading group in multi-sectoral investment in the Republic of Korea (RoK), plans to invest in a large oil refinery in the central province of Thanh Hoa.



The information was confirmed by Vice Director of Foreign Investment under the Ministry of Planning and Investment, Nguyen Thi Binh Van, who has just returned from a trip to the RoK to call for investment in Vietnam.



The details of this project have not been revealed but Hanwha’s representatives will come to Vietnam in

Trade Minister heads to Geneva for WTO negotiation
15:06' 04/10/2006 (GMT+7)
Soạn: HA 914631 gửi đến 996 để nhận ảnh này

VietNamNet Bridge – The Vietnamese government’s mission, led by Trade Minister Truong Dinh Tuyen, will leave Hanoi tomorrow night, October 5, for Geneva, Switzerland, for the 13th multilateral round of negotiations on Vietnam’s WTO membership.



No rush to join WTO before APEC



On October 7, Vietnamese negotiators will meet with US partners to finalise the contents of the multilateral negotiation before attending the official session with the WTO Working Group on October 9.



Vietnam’s latest draft report on WTO accession has been sent to members of the WTO Working Group.



After the official session, some Vietnamese experts will stay in Geneva till October 14 to complete the accession report.



If everything goes smoothly, Vietnam will submit the report to the WTO Working Group on October 25 for approval.



An extraordinary general assembly session of the WTO could be held in November to admit Vietnam as a new member.



In late September, Mr Tuyen stated that it was not necessary for Vietnam to join the WTO prior to the 2006 APEC summit this November at any cost because of irregular demands by some partners.



However, his attendance in the mission shows that Vietnam still hopes to become a member of the WTO this year, perhaps in November or on December 14-15, during the WTO’s regular general assembly session.

Mitsui plans big investment in Vietnam's shipping
11:40' 04/10/2006 (GMT+7)

VietNamNet Bridge – Japan's Mitsui O.S.K.. Lines will pour big bucks into Vietnam's port and shipping-related industries as the country's forth-coming entry into World Trade Organization (WTO) will open up new opportunities, a top executive said.

President Akimitsu Ashida told reporters in Hanoi on Monday that his company would focus on eight services in Vietnam, comprising port logistics, forwarding, seamen's training, ship repair, marine piloting, transshipment and tourist services.

Ashida said the shipping line operator would decide the time and the scale for each investment plan depending on conditions available in the country.

He noted Vietnam's transport market had reached high growth owing to the fast increase in the number of foreign investors. Besides, Ashida forecasted there would be an influx of big Japanese investors to Vietnam in the future.

Therefore, the company plans big investments to tap business opportunities here, he said.

"Mitsui O.S.K.Lines (MOL) is carrying out a research for building a depot in Cai Mep port complex in the southern province of Ba Ria-Vung Tau.

Besides, we plan to join forces with local partners in training sailors there," Ashida said.

The top leader of MOL also said his company had selected Vietnam as the destination for building a ship repairing center.

The center should be able to meet 10% of demand on maintenance and repair for the national fleet of 750 vessels now and 900 vessels in 2009, he said, adding MOL experts were looking for a location in Ba Ria-Vung Tau.

"MOL wants to establish a closed-cycle service network in the transport sector to help saving cost and enhancing investment efficiency, particularly in Vietnam where infrastructure is poor and cost is high," Ashida said.

He added many investors were facing logistic and infrastructure problems. Therefore, the Vietnamese Government should take full advantage of ODA loans financed by Japan for improving infrastructure.

After 10 years opening its representative office in Vietnam, MOL has seen business grow 64 times in forwarding. The volume in goods transport is expected to amount to 6,400 containers this year, generating an estimated revenue of JPY4bil.

MOL owns a fleet with total capacity of 41.5mil DWT. The company's turnover is targeted at US$14bil this year, with profit expected at US$1bil.

UK prepares industry-swap forum
15:21' 03/10/2006 (GMT+7)

VietNamNet Bridge – The Viet Nam Day in the UK event, which will take place in London from October 4-7, is expected to bring about more business opportunities for both countries' investors, said Pham Gia Tuc, Secretary General of the Viet Nam Chamber of Commerce and Industry.

The event, which is mainly sponsored by Standard Chartered Bank, a large British investor in Vietnam, will be comprised of seminars and forums on trade, investment, finance services, energy development, infrastructure and manufacturing industries, and tourism promotion between the two countries.

A gala dinner with performances presenting the two countries' traditions and identities will also be scheduled in the event.

Successful British companies in Vietnam such as BP, Shell, Tate&Lyle, and Standard Chartered Bank will present, in the event as the typical highlights in Vietnam - UK trade relations, Moreover, in sharing their experiences and knowledge of the Vietnamese market, they will become reliable experts for the Vietnamese investment promotion.

The voices from these companies will be the most effective way to draw the attention of other British corporations to the market that many of their counterparts have succeeded, said Tuc.

Among the 80 enterprises of the Vietnamese delegation, led by Minister of Planning and Investment Vo Hong Phuc, are many reputed Vietnamese companies and corporations such as Viet Nam National Shipping Lines (Vinalines), Viet Nam National Oil and Gas Corporation (Petro Vietnam), Ha Noi Tourism, and the Bank for Foreign Trade of Viet Nam (Vietcombank).

Following the positive reforms in the legal system and investment environment, the presence of Vietnamese enterprises as well as some localities in the "Viet Nam Day in the UK" is seen as the active investment attraction in front.

Vietnamese enterprises will target the UK's finance potential, high technology, market net and management experience in the trade and investment promotion programmes, Tuc remarked.

Vietnam calls for investment from British companies and corporations, especially in the fields in which the UK ha comparative advantages an Vietnam are weak in, such as high-tech industries, project on new material production and mineral exploitation.

Vietnam and the UK have signed important agreements which were seen as the fundamental conditions pushing investment between the two countries.

Currently, there are 68 British projects in Vietnam, with the total capital of US$2.2bil. The UK ranked 12th out of 74 countries and territories investing in Vietnam, and 3rd of those of the EU (following France and Holland).

The two-side trade turnover in 2005 was $1.4bil, with the main Vietnamese export products being footwear, garments, and wood products.

Vietnam also imported pharmaceutical products, machinery and communication equipment from the UK.