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South Korean Firm Wins Vietnamese US$150 Million Highway Deal
Mar. 27 - The POSCO Engineering and Construction Co. has won the bid for a VND2.55 trillion (US$150 million) contract with the Vietnam Expressway to build a 27-km section on the highway connecting Hanoi and the northern province of Lao Cai, in Northern Vietnam.
The project spanning 40 months will build bridges, a water drainage system and traffic safety facilities. It will be funded by money borrowed from the Asian Development Bank Fund amounting to US$200 million, US$896 million from the Ordinary Capital Resource loans and domestic bonds worth US$153 million. -
Vietnam’s Economy Grows by 3.1 Percent
Mar. 27 - The Southeast Asian country's economy grew by 3.1 percent during the first quarter of the year compared the same period last year as companies delay or cut investment plans and manufacturing.
The figure is the weakest on record since 1999 for which quarterly figures are available, reports Bui Ba Cuong, director of the office’s department of national accounts.
During the first quarted last year, the economy grew by 7.5 percent.“In this situation, 3 percent growth is a positive figure,” Nguyen Thi Mai Thanh, general director of Refrigeration Electrical Engineering Joint-Stock Co. told Bloomberg. “My business is not as bad as we had expected. We can live with this level of growth.”
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March Inflation to Rise by 11.25 Percent
Mar. 25 - The Vietnamese government said that consumer prices in March increased by an estimated 11.25 percent compared to last year's figures, making it the lowest annual rise since November 2007.
Compared to last February, prices in March eased by 0.17 percent after an increase of 1.2 percent in January. Moreover, this month, food prices rose by almost 24 percent compared to last year.
It was in November 2007 that the country began reporting double-digit inflation and prices rose by 10.01 percent from November 2006.
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Dong to Depreciate against the U.S. Dollar
Mar. 24 - Vietnam's central bank announced that it would widen its trading band to plus or minus 5 percent beginning today; depreciating its currency, the dong, against the U.S. dollar.
The move was made to support the economy and enhance flexibility. The central bank said: "The decision will help banks and companies be proactive in preparing production plans in 2009."
Yesterday, it was 16,980 dong to the dollar compared to last Friday's 16,981 to the dollar. "The move will facilitate the trade of dollars among commercial banks," said Ho Huu Hanh, director of the State Bank of Vietnam's branch in Ho Chi Minh City was quoted by the WSJ.
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HSBC to Increase Shares in Vietnamese Insurance Company
Mar. 23 - Leading bank, HSBC, is looking into increasing its stake in Vietnam’s Bao Viet Insurance from 10 percent to 18 percent despite the slowing economy.
HSBC became the first foreign bank in the country to become a fully-owned operation and is the largest bank in Europe.
“We are looking to do more with the strategic partners,” Paul Leech, Hong Kong-based head of international operations for HSBC, told Thanh Nien News.
The bank also has a maximum 20 percent stake in Techcombank. “When we made the strategy to open, the world was a little different,” Leech added. “The interesting thing is, actually, our strategy really has not changed.”
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Vietnamese Exports to the United States Grow at Fastest Rate
Mar. 20 - Vietnamese exports to the United States grew at the fastest rate among the leading 50 American sources of foreign goods in January, along with Bangladesh, Denmark, Ireland and New Zealand.
This suggests that Vietnam's focus on lower-end manufactured goods and basic agricultural commodities is still profitable despite the slowing world demand.
The U.S. International Trade Commission figures show that Vietnam exports to the United States grew by 14 percent to US$1.15 billion, making it the 22nd top exporters to the the country from its previous ranking of 30th last year.
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Implemented FDI in HCMC Reaches More than US$10 Billion
Mar. 19 - Implemented foreign investment capital in Ho Chi Minh City now amounts to more than US$10 billion, or almost 40 percent of total registered foreign direct investment in the city, reports the Ho Chi Minh City Authority for Planning and Investment.
Ho Chi Minh has so far attracted 3,128 FDI projects with a reported total registered capital of US$25.6 billion. It wants to focus on drawing FDI in the fields of engineering, chemical, electric and information technology, finance, banking and real estate. -
Companies Protest against Peak Hour Power Pricing
Mar. 18 - Vietnamese businesses are protesting against a new pricing system that doubles the price of electricity during the peak hours between 9:30 a.m. and 11:30 a.m. and between 5 p.m. and 8 p.m.
The pricing is meant to discourage the use of electricity at those hours and force companies to change production schedules although it has invariably led to manufacturers reining in on production.
According to Thanh Nien News, companies say the new policy is unreasonable because it labels the time between 9:30 a.m. and 11:30 a.m. as peak hours when it is the usual hours that all businesses run. -
Vietnamese Trade with Cambodia Reaches US$1.1Billion in 2008
Mar. 17 - Border trade between Cambodia and Vietnam amounted to US$1.1 billion last year, a sharp increase caused by a bilateral memorandum of understanding on border trade facilitation.
Vietnam's Vice Minister of Industry and Trade, Nguyen Cam Tu, told The Phnom Phen Post: "Presently border trade is getting better ... offering a good business climate to people and it will help alleviate poverty during the global economic upheavals."He added, "Moreover, as border trade increases, infrastructure will also improve and facilitate further business." Despite a bilateral agreement between the two, a lot of paperwork is still necessary at border checkpoints.
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Japanese Companies to Form US$300 Million Iron Venture in Vietnam
Mar. 16 - Japanese firms, Kobe Steel and Sojitz are planning to build a US$300 million venture that will produce iron nuggets.
The study of the iron mines will require an initial investment of US$1 million, the report said.According to Thanh Nien News, there is a possibility that Japan’s Daido Steel Co. may also join the project as a distributor. Kobe Steel is the fourth largest maker of the metal in Japan.