FDI firms provide forthright advice

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As the business community has entered 2014 with new hopes and plans, VIR talks with executives of foreign firms about their expectations on FDI policy improvements. Crispin Bui IBM ASEAN executive and general business manager of IBM Vietnam Since its official return to Vietnam in 1996 as a 100 per cent foreign-invested IT company, IBM has grown fast in the market with serious long-term commitment and focused investments from the corporation. In the past few years, like other investors, we have been concerned about the post-crisis prospects, when many of our clients are uncertain about their sustainability. The increasingly interconnected economies, enterprises, societies and governments have made the new economic environment substantially more complex, more uncertain and more unpredictable. IBM views marketplace volatility as an indispensable part of doing business globally. Importantly, the Vietnamese government has been seeing FDI as a driving factor for the country's … [Read more...]

Foreign firms flocking to animal feed trough

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Foreign animal feed makers are rushing into Vietnam to invest in the growing business. Vietnam has become Southeast Asia's top producer of animal feed - Photo: Le Toan Do Xuan Duong, acting head of the Ministry of Agriculture and Rural Development's Livestock Production Department, said: "Vietnam has become Southeast Asia's leader and the world's 12th biggest maker in industrial animal feed outputs and technology." Vietnam's animal feed output rose from 10.6 million tonnes in 2010 to more than 11.5 million tonnes in 2011 and over 12.7 million tonnes in 2012. The projected figure for this year is 13.5 million tonnes, about 70 per cent of which is made by foreign firms with high technology and integrated production chains. "Vietnam's developing husbandry and farming sectors and its potential consumer market are a great magnet to foreign firms, despite economic woes," Duong said. A representative from Thailand's GreenFeed Vietnam said this year it would produce one million … [Read more...]

Foreign animal feed makers face tough punishment

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VietNamNet Bridge - Foreign animal feed-maker law breakers may be kicked out of the Vietnamese market. The Ministry of Agriculture and Rural Development has for the first time introduced a draft decree on fines for animal feed, breeder and veterinary medicine violations. The kicker is foreign feed animal violators could be expelled from Vietnam if they fail to obey the country's animal feed regulations. According to the draft, the maximum fine for the animal feed sector is VND100 million ($4,800) for individuals and VND200 million ($9,600) for organisations and enterprises. Violators will be subject to fines of VND50-100 million ($2,400-4,800) if they use banned substances for making feed products. If they repeat this violation, they will have their own business certificates revoked. Also, fines of VND50-100 million ($2,400-4,800) will be imposed on importing feeds containing banned substances. Fines of VND30-50 million ($1,442-2,400) will be inflicted on illegally importing … [Read more...]

Foreign investors yet to take root

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Although the Red River Delta is an attractive venue for drawing foreign investors in livestock sector, there appears to be an urgent need for better incentives to lure more overseas capital, as VIR's Thanh Thu reports. In early October 2012, US' Cargill Vietnam's ninth Vietnam-based animal feed mill in northern Ha Nam province officially came into operation, with and total investment capital of $18 million and the capability of producing 240,000 tonnes of feed per year. This is the company's second animal feed mill in the country's Red River Delta. The first one located in neighbouring Hung Yen province started operating in 2004 and it now has an annual capacity of 120,000 tonnes. It is expected that the combined capacity of these two mills will reach 400,000 tonnes by 2015. In mid-October 2012, Cargill Vietnam also put its $4 million aqua feed production line into operation at the Hung Yen mill, raising the number of the company's total aqua feed production lines in Vietnam to … [Read more...]

Livestock industry unattractive to investors

The local livestock industry is described as small scale, dispersed and risky, so it does not attract much investment especially that of foreign-invested enterprises (FIEs), officials said at a seminar in Ho Chi Minh City on October 9. Speaking at the seminar on promoting investment in the livestock industry, Hoang Kim Giao, Head of the Animal Husbandry Department under the Ministry of Agriculture and Rural Development, said there were 6.5 million livestock farming households nationwide in 2011. Poultry raised at households account for 70 percent of the nation's flock and 60 percent of the total meat output, while the figures for pigs are 65 percent and 57 percent. Foreign direct investment (FDI) in livestock farming amounted to US$269.7 million as of 2010 and is estimated at US$365.3 million as of 2012, very modest compared to the total investment in agriculture. Nguyen Xuan Duong, Deputy Head of the animal husbandry department, said animal feed production remained the most appealing … [Read more...]

Foreign feed firms in stampede

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While Vietnamese animal feed production companies struggle to stay afloat amid financial and output woes, their foreign rivals have grabbed this opportunity to control the nation's lucrative husbandry industry. One such example is the Australian-Vietnamese joint venture animal feed maker Ausfeed, which in September said it was implementing its "From feed to food" plan in Vietnam by assorted investments. Ausfeed is now installing a second production line, with an annual capacity of 150,000 tonnes, following its feed plant constructed in late 2010 in central Binh Dinh province. Ausfeed has also planned to establish in 2013 its own research and development centre to develop products for its own commercial production. After opening of this centre, Ausfeed would set up a commercial-scale meat processing plant. The two facilities will be located in northern Hung Yen province, where in late last month, Ausfeed also began construction of a nucleus pig farm to develop genetics exclusively … [Read more...]

BUSINESS IN BRIEF 18/9

US stimulus buoys local shares Stocks on the HCM City Stock Exchange posted modest gains over the course of last week but declined in Ha Noi despite a strong performance on Friday driven in part by the positive response of world markets to the announcement of a new round of US stimulus measures. The US Federal Reserve said last week that it would pump US$40 billion into the economy each month through a bond-buying progamme already being referred to as QE3 (the bank's third round of quantitative easing). … [Read more...]

Tongwei’s appetite to succeed

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China-backed Tongwei Company has inaugurated Tongwei animal feed factory in the northern Hai Duong province's Lai Cach industrial zone. The $10 million factory, covering 30,000 square metres, is equipped with the latest technology to process food for domestic animals. The new facility has a designed capacity of 200,000 tonnes per year. … [Read more...]

BUSINESS IN BRIEF 12/7

Strawberry, artichoke cultivated area decreased in Da Lat Recently, the cultivated area under strawberry and artichoke, both famous specialties of Da Lat City, has been decreased due to unstable price factors and spread of plant disease. Ho Ngoc Dinh, chairman of the Farmer's Association of Ward 12 in Thai Phien village in Da Lat City said that the village now has only 40 hectares under artichoke cultivation, a decrease by 10 hectares since last year. From 1997 to 1999, artichoke cultivation was spread across more than 100 hectares and sold at a high price of VND120,000 per kilogram. Even though it remains a favorite food item, price of artichoke has continued to fall since 2007, with the fresh flower selling at VND10,000-VND15,000 a kilogram and the dried for about VND70,000 per kilo. Farmers have turned to flower cultivation to supply to the local and export markets to reap higher profits, using greenhouse technology. Strawberries too are not being seen much in Ha Dong … [Read more...]

Feed producers’ big appetites

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Many foreign animal feed producers are increasing investment in Vietnam to meet the industry’s rich potential.Japfa Comfeed Vietnam, an affiliate of Japfa - one of Indonesia’s leading groups in producing and trading animal feed and breeding animals, started work on its fifth animal feed factory in Vietnam, with the 7.6 hectare plant in northern Hoa Binh province coming with a VND600 billion ($28.8 million) price tag. “With huge development potential of the animal feed industry and a favourable investment environment, we decided to build the Hoa Binh animal feed plant with an aim to meeting the market’s increasing demand,” said the company’s general director Sanjeev Kumar. Japfa Comfeed Vietnam targeted to reach its animal feed output of one million tonnes by 2015 and two million tonnes by 2020, he added. In March Cargill Vietnam, an affiliate of the US-based Cargill Group, inaugurated its ninth animal feed plant in the country. The new $18 million … [Read more...]

Ministry, business on collision course over meat prices

The Ministry of Agriculture and Rural Development has called on animal feed producers to hold off their price increases to help put meat prices under control while businesses have asked the Government to make changes to the current price management policy. Speaking at a meeting in HCMC on Tuesday on how to cope with volatile meat prices, a representative from CP Vietnam Livestock Co. attributed the rise of pork prices to diseases that had sent pig herds down and to recently stronger demands. Higher production costs like exorbitant interest rates and material costs are also seen as a reason behind pork price increases. Chairwoman Nguyen Thi Le Hong of Proconco Vietnam conceded animal feed prices marked up seven times in the first half of the year due to rising material costs. But she noted the increase in animal feed prices was not necessarily the only cause of the pork price surge. … [Read more...]

Global Grains Trade Summit 2010 to Take Place in HCM City late June

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Asia is clearly redefining the balance of power in grains trade. The Asian region is leading the charge with unprecedented imports across major grains to manage food security. Be it inter regional and ASEAN trade agreements, or imports from major producers outside of Asia, the combined buying power of Asia is here to stay. In addition, the current El Nino phenomenon has brought massive crop damage and shortfalls across the world. Stockpile security has become paramount to manage food security, and prices remain uncertain. With the changing weather patterns resulting in massive changes in supply and demand, there is a need to determine how to overcome the volatility in the market. The Global Grains Trade Summit 2010 which will take place in Ho Chi Minh City, Vietnam on the 28 - 29 June 2010, shall focus on 5 major grains: rice, wheat, corn, soybean and barley with the aim of providing a platform for buyers, importers, exporters and traders to get the latest market updates, assess … [Read more...]

Long An Province’s Business Environment in the Eyes of Investors

We are calling investment for the second phase Mr Nguyen Ngoc Minh, Deputy General Director of the Exploitation and Construction Joint Stock Company for Duc Hoa 1 Hanh Phuc IZ

The first phase of the Duc Hoa Industrial Zone 1 covers 70ha, which has been fully occupied by 42 investment projects. This is the result of our efforts from the construction of infrastructure, water supply and drainage system, power network and full supporting services. The industrial park applies a "three-No" policy in attracting investment, namely No fee for investment instruction and construction design, No fee for land use right transfer and No tax for equipment import.At present, we are carrying out the second investment phase, which consists of 204 ha of land. So far, many companies have registered for land leasing in the expanded area. We used to face difficulties in land compensation and site clearance; however, things now get better. We are making the best preparations for investors in Duc Hoa Industrial Zone 1. Soaring prices of petroleum products affect our production Mr Hsieh Tung Tsai, Director of Vietnam Chung Shing Co. Ltd Since we invested in Long An Province, we … [Read more...]

HCMC to import mass quantities of bird flu vaccines

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Ho Chi Minh City is to import and test 600,000 doses of bird flu vaccine from a US company on its poultry farms, said a source from the Ministry of Agriculture and Rural Development April 28. The livestock vaccine called Trovax AI - manufactured by US animal health giant Merial - has been accepted for limited use within HCMC by authorized veterinary or health departments, according to MARD. At the same time, MARD has recently authorized Vietnam Breeding Company and Japfa Comfeed Company to import 2 million more doses of another vaccine for testing on other farms, again under strict limitations, the ministry said. … [Read more...]

What’s driving Vietnam’s stock rally?

PXP Vietnam Asset Management CEO and Co-Founder Kevin Snowball discusses Vietnam's current market rally, what could be the driving forces behind it and where he sees opportunities with Bloomberg's Rishaad Salamat on "On The Move." … [Read more...]

Vietnam rally fails to alarm bulls as stocks hit ’08 high

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Vietnam's economy is showing signs of improving health. Inflation slowed to 6.36 percent in May, the least since August 2012, and exports climbed 15 percent in the first five months from last year. … [Read more...]

Foreign investors put trust in Vietnam’s market

Hanoi , May 20 (VNA) - The 18-day flow of money into Vietnam 's stock market suggests overseas money managers are unfazed amid concern that anti- China riots in the country will deter foreign investment and curb economic growth, read a story published by Bloomberg on May 19. It said foreign investors were net buyers on the Ho Chi Minh City stock exchange every day since April 18, the longest stretch of purchases since January. They added about 93 million USD to their holdings even as the benchmark VN Index slumped 8.8 percent through May 16. … [Read more...]

Bloomberg: Foreign investors put trust in Vietnam’s market

The 18-day flow of money into Vietnam 's stock market suggests overseas money managers are unfazed amid concern that anti- China riots in the country will deter foreign investment and curb economic growth, read a story published by Bloomberg on May 19. It said foreign investors were net buyers on the Ho Chi Minh City stock exchange every day since April 18, the longest stretch of purchases since January. They added about 93 million USD to their holdings even as the benchmark VN Index slumped 8.8 percent through May 16. … [Read more...]

Vietnam bulls unfazed as foreigners see bargains

A man in Binh Duong Province carry a banner calling for peaceful demonstrations against China's move in Vietnam's East Sea, urging protesters not to vandalize companies and factories.

For all the concern that a couple of riots last week in Vietnam will deter foreign investment and curb economic growth, the 18-day flow of money into the country's stock market suggests overseas money managers are unfazed. … [Read more...]

Vietnam stocks lure foreigners as locals spur decade-worst rout

Foreign investors took advantage of Vietnam's biggest stock-market retreat since 2001 to boost their holdings in a bet that losses spurred by escalating tensions with China will prove short-lived.

Overseas money managers purchased a net $11.5 million of securities on the Ho Chi Minh City Stock Exchange yesterday, the most in five weeks, as the benchmark VN Index sank 5.9 percent to a four-month low. Alan Richardson, whose Samsung Asean Equity Fund beat 96 percent of peers tracked by Bloomberg in the past five years, said in an interview yesterday he's been buying. … [Read more...]