Vietnam - News and Regulations

VIETNAM/EUROPEAN UNION - Vietnam sees EU as important partner: deputy FM

Vietnamese deputy Foreign minister Bui Thanh Son said here Tuesday that Vietnam always considers the European Union (EU) as an important partner of Vietnam. Son made the comments at the conference of "Vietnam-EU Economic Prospects in the 2011-2015 period and its vision towards 2020". Son said prospects for Vietnam-EU cooperation in the next 10 years appear to be good and hopeful as Vietnam-EU cooperation have brought benefits to both sides. Moreover, the signing of Partnership and Cooperation Agreement between Vietnam and the EU earlier last month laid a foundation for the two sides to approach a free trade agreement (FTA), said Son. Negotiating and signing an FTA will provide a variety of economic and trade cooperation opportunities for Vietnam and the EU, said Son. Sean Doyle, head of the EU delegation to Vietnam said at the conference that Vietnam's economy is enjoying a robust growth. The EU maintains Vietnam as one of the most important parters of EU in all fields of cooperation, said Doyle. Vietnam-EU relations have seen fast but sustainable development in all fiels, especially in bilateral trade and investment. Vietnamese official statistics showed that in 2009, the two-way trade turnover between Vietnam and the EU reached 15.2 billion U.S dollars. In the first nine months this year, Vietnam's export value to the EU market hit 7.8 billion U.S dollars, up 13 percent year-on-year.VNNET

WORLD BANK ON VIETNAM - WB finances Vietnam $2.13b in fiscal year 2010

State Bank of Vietnam (SBV)'s deputy governor, Nguyen Van Binh, on November 17 in Hanoi met with Joachim Von Amsberg, World Bank (WB)'s vice president.

At the working session, the two partners exchanged views on issues relating to Vietnam's socio-economic development plans during 2011-2015, impacts of the global financial recession to Vietnam's economy, the use of loans provided by International Bank for Reconstruction and Development (IBRD) and loans from pubic investment policy programme (PIR) III and the efficiency of IDA 16 capital source for Vietnam.

Generally, WB's projects have huge investment capital mainly in fields such as public policy reform, energy, urban and environmental sanitation, agriculture, rural development, finance and banking and some other sectors like health development and education.

In coming times, with the government's orientation of giving priorities in investments for infrastructure, and urban development, WB's prioritised supports will switch to fields of transport development, highways, urban and budget support.

Reportedly, Vietnam has officially resumed relations with WB since October 1993. Till the end of August 2010, WB has provided Vietnam over $9.83 billion for 92 programmes and projects. Currently, 50 programmes and projects are being implemented (including projects financed by GEF Fund, CFC and the Trust Fund) with a total value of approximately $6.4 billion.

Particularly, in the fiscal year 2010 (from July 2009 till the end of June 2010), WB has financed Vietnam $1.429 billion of preferential loans from international development assistance (IDA) capital and $700 million of commercial loans (IBRD). SBV

RETAIL BANKING - Foreign banks boost retail services

Foreign banks are racing to expand retail services by launching more services and subsidiaries as Vietnam approaches the time for opening the door to all banking services.

In line with the country's WTO commitments, foreign banks operating in Vietnam will be allowed to provide banking services and products on par with local banks from January 1, 2011.

Hong Kong Shanghai Banking Corp (HSBC) inaugurated its fifth subsidiary in Vietnam in late September, while Citibank and Standard Chartered Bank launched their retail banking services in Hanoi in mid-October.

Foreign banks also launched new products and services, with the aim of narrowing market share gaps with local banks that currently account for 90 percent of retail market share.

US giant, Citibank introduced smart banking services aiming at young, high- tech customers and is aiming to provide internet and mobile phone retail banking services. Standard Chartered Bank, along with seven-day services, plans to link to the local Smartlink's ATM card alliance system from next January, becoming the first foreign bank in Vietnam to make this connection.

The Standard Chartered Bank Vietnam’s general director expressed his pleasure with establishing a "fair" market for both local and foreign banks. All products and services his bank wants to provide have received permission, he said.

Although possessing only a moderate retail market share, foreign banks treasure the most wealthy client group, including individuals with monthly income of 10 million VND (about 500 USD) or above.

According to Standard Chartered Bank, Vietnam 's per capita income is estimated to be 2,000 USD a year by 2015, resulting in an increase in the use of banking services.

But there is a concern among financial experts that in the near future, local bank services such as international payments, trade assistance and project investment could be taken over by foreign banks because of their superior capacity in technology and management as well as financial strength.

Therefore, apart from strengthening and improving management and business capacity, local banks have invested in improved technology, expanding services to the private business and foreign-invested business groups along with state-owned firms.VNNET

INFORMATION TECHNOLOGY - Government has big plans for ICT

Vietnam government has pledged strong investment into the information, communication and technologies (ICT) industry with an outlay of $8.5 billion over the next 10 years, Le Nam Thang, deputy minister of Information and Telecommunications said on Wednesday.

"This is a great motivation for the industry to take off," Thang said at the opening ceremony of the 13th Vietnam Telecom/Electronics – Internet & IT 2010 exhibition at the Sai Gon Exhibition and Convention Centre.

At least 200 local and international enterprises from 13 nations and territories – Australia, Britain, China, France, Germany, Hong Kong, India, Japan, Malaysia, Singapore, Taiwan, the US and the host nation are participating in the expo. The 4-day event covers an area of 9,000sq.m, double that of last year, and focuses mainly on digital convergence. In 2010, Vietnam has improved its world IT connectivity index by 16 positions in comparison with 2009, it was said at the World Economic Forum (WEF). The ICT industry turnover is expected to reach $10 billion this year and rise further to $15 billion by 2015. "This [the exhibition] is a good chance for local enterprises and government offices to learn of new technologies and ideas for the future brought in by the top ICT companies in the world," said Pham Long Tran, Chair of the Vietnam Post and Telecommunication Corporation, which organised the event.

Participating firms will introduce new technologies and ideas for the sector, focusing on mobile solutions, corporate management services, online content, 3G services, Wimax, broadband, electronic entertainment, multimedia, next generation networks (NGN) and communication satellites. A seminar on ICT development trends in Vietnam for the next decade, ICT applications in governance, ways to bring 3G applications into daily life, cloud computing, long term evolution (LTE) will be held during the fair. Top Vietnamese ICT companies like MobiFone, VinaPhone, Vien Thong A have joined the event with a series of displays and big promotions for visitors. Prominent among the participating enterprises are Taiwanese electronic manufacturers looking for a stronghold in the Vietnamese market. They are implementing a Taiwanese Excellence campaign, introducing top products like Acer, Asus, D-Link and Zyxel. UK-based Metaswitch Networks, carrier system and software solutions provider to AT&T, British Telecom, Cable & Wireless, O2 and Vodafone, is also eyeing the potential that Vietnam presents by introducing their latest telephony solutions like voicemail and unified messaging.VNNET

ECONOMIC GROWTH - Vietnam economy likely to grow 7.24pct in Q4, Govt says

Vietnam's economy is expected to grow 7.24 percent in the fourth quarter of this year, resulting in a full-year expansion of 6.7 percent versus a 5.32 percent growth last year, the government said on its website Tuesday. The government also revised the economic growth for Q3 to 7.18 percent from previous 7.16 percent and for Q2 to 6.64 percent from 6.4 percent and confirmed Q1 growth at 5.83 percent. The recovery came from a 13.7 percent growth in the industrial sector, a 7.1 percent increase in the disbursement of foreign direct investment at $11 billion, a 15 percent rise at $78 billion in the total retail sales and services revenue, and a 23 percent surge at $70 billion in export values. In 2010, the country's tourism sector is expected to bring about $4.6 billion revenue, rising 50 percent from 2009 as it received five million international visitors. The government is also aware of difficulties and challenges ahead such as high inflation, trade deficit. However, it believes that the local economy is on growth track with a strong momentum for a GDP growth target of between 7 percent and 7.5 percent next year. VNNET

Hanoi estimates average GDP growth at 10.72pct in 2006-10

The GDP growth of the capital city of Hanoi is estimated to have reached an average of 10.72 percent per annum in the 2006-2010 period. This news was released by standing vice chair of Hanoi People's Committee Phi Thai Binh at a meeting with the departments and branches of the city to review plans for socio-economic development in 2011-2015. However, this growth has not reached the planned goals that Hanoi People's Committee set for this period at 12-13 percent previously. Average growth of the fields are as follows: Services up 10.35 percent, industry -building up 12.77 percent and agriculture up 2.43 percent. In the 2011-2015 period, Hanoi set a specific target to reach an average GDP growth of 12-13 percent, in which the growth of services is 12.2 -13.5 percent, industry— construction 13 to 13.7 percent, and agriculture 1.5-2 percent Speaking at the meeting, Binh said that setting the target of Hanoi's GDP growth in 2011-2015 at 12-13 percent in the context of world and domestic markets which still is in passing through upheavals is an extremely difficult challenge, and if no determination is made then the capital city will find it difficult to accomplish the target.intellasia

RESOURCES - OIL/GAS - NK-BP Gets PVN backing to buy BP's Vietnam assets

TNK-BP has announced a cooperation agreement in which the Vietnam Oil and Gas Group (PVN) will support Russia's third biggest oil firm to buy BP's Vietnam assets. The company said in a statement issued early this week that the agreement outlines "the further steps and activities to be undertaken as part of the (two) companies' long-term cooperation." PVN will assist TNK-BP to enter to the Vietnamese oil and gas market through the acquisition of BP's stake in upstream gas producer Block 06.1 and to further expand its downstream and upstream business operations in Vietnam. In return, TNK-BP will throw support behind PVN's plans to develop its upstream business in Russia, and to materialise this, the two firms will hold talks over the establishment of a joint venture in Russia. The Daily's attempt to reach Phung Dinh Thuc, general director of PVN, for confirmation of the news failed on Wednesday. Thuc is in charge of the issue. Earlier, on October 18 this year, BP announced it had reached agreement to sell its upstream businesses and associated interests in Venezuela and Vietnam to TNK-BP for a total of $1.8 billion. TNK-BP, which is equally owned by BP and the AAR Consortium comprising Alfa Group, Access Industries and Renova, would buy BP's 35 percent operating interest in the Lan Tay and Lan Do gas fields and associated pipeline and power generation interests in Vietnam. Phung Dinh Thuc then said PVN was also considering buying BP's interests in Vietnam. TNK-BP said in the statement that it would supply ESPO crude for Vietnam on a long-term basis. PetroVietnam Oil Corp. (PV Oil), a member of PVN, signed a contract in September to buy ESPO crude from TNK-BP over one year, PV Oil said on its website. TNK-BP will provide PV Oil with the first 100,000 tonnes of crude this month.VNS

OIL REFINERY - Thai PTT in talks with PetroVietnam on new refinery

Thailand's largest energy company, PTT Pcl, said on Thursday it was in talks with state-owned PetroVietnam to build an oil refinery in Vietnam as part of PTT's overseas expansion.

PTT, Asia-Pacific's third largest oil and gas firm by market value, is also studying upstream, downstream and power businesses in Vietnam, Chief Financial Officer Tevin Vongvanich told reporters.

"We are interested in all of them. If we have a chance, we will go for it," Tevin said. "We are negotiating with PetroVietnam to build an oil refinery there because Vietnam has a policy to construct a few of them." "If it does not succeed, PTT may negotiate with them to import oil products from Thailand because we have some excess in output," he said. PTT subsidiary PTT Exploration and Production Pcl has joined with US oil major Chevron to negotiate with Vietnam government on developping gas fields in Vietnam, Tevin said. PTT was also keen on building a gas pipeline, he said without giving details about the fields. Chevron operates Block 52/97 and B, 48/95, in which PTTEP has an 8.5 percent stake in the first and 7 percent in the latter. PTTEP also has interest in two other blocks, 9-2 and 16-1, in Vietnam.VNNS

Petrovietnam Gas - Initial public offering - PV Gas sells 61m shares

Hochiminh Stock Exchange (STC) announced to hold the auction successfully for PetroVietnam Gas Corp on November 17, 2010. In the initial public offering, the company has sold about 61 million shares to public, equalling to 64 percent of the total shares, bringing in 1.89 trillion dong.

There were 1,057 registered investors participating in the auction session, including 12 domestic and international institutions. The highest price was 55,000 dong per share and the lowest one of 31,000 dong per share. The foreign investors have successfully purchased over 4.24 million shares.

PVGas planned to hold the first shareholders meeting in December 2010 and planned to apply for listing shares on southern bourse in Q1 of 2011.vns

AVIATION - Vietnam Airlines expands cooperation with Moscow's airport

Vietnam Airlines (VA) and the Domodedovo international airport in Moscow on November 17 held a press briefing in Moscow to announce an increase in VA's flights to the airport and the results of their cooperation.

Vietnam Airlines now conducts three flights a week from Moscow to HCM City route on Monday, Thursday and Sunday and two flights a week from Moscow to Hanoi on Wednesday and Saturday.

The airline plans to increase the number of weekly flights from Moscow to Vietnam to seven in 2011.

Speaking at the press briefing, Vietnamese Ambassador to Russia Bui Dinh Dinh stressed that the fine traditional friendship between Vietnam and Russia will be a foundation for Vietnam Airlines and Domodedovo airport to boost cooperation and contribute to the development of economic cooperation between the two countries. Domodedovo consortium director Viacheslav Nekrasov pledged to create best conditions for passengers to promote the image of Domodedovo airport. In 2009, Vietnamese Airlines carried 9,387,000 passengers, including 151,646 people from Vietnam to Russia. In 2010, the airline expects to carry 12,372,000 passengers, including over 200,000 ones from Vietnam to Russia.VNNET

SHIPBUILDING - Gov't approves Vinashin's restructuring scheme

HA NOI - The Government has approved Vinashin Business Group's restructuring plan to stabilise the corporation's operations while helping them pay off debts.

Under decision 2108/QD-TTg issued on Thursday, the Government will allow Vinashin to focus on three main areas of building and repairing ships, developing a shipbuilding support industry, and training workers.

The group has been asked to take a leading role in Vietnam's shipbuilding industry which is key to developing Vietnam's maritime industry and sea strategy towards 2020.

After restructuring, Vinashin will operate under the shareholding company model, with a parent company, subsidiaries, and stakes in other enterprises.

The parent company will work as a one member limited company with 100 per cent of its charter capital held by the State.

Vinashin's subsidiaries include Nam Trieu Shipbuilding, the Bach Dang and Pha Rung corporations and two joint-ventures. It is also a shareholder in Hyundai Vinashin Shipyard Co.. - VNS

Oliver Massmann

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