Aeon buys into Citimart, Fivimart

The Aeon Citimart brand is unveiled by Citimart at its 20th anniversary celebration in November last year - PHOTO: LE HOANG

Hung Le Sources close to the matter on January 28 told the Daily that Aeon Group is holding stakes in the two local supermarket chains, but declined to reveal the value of the transactions. Meanwhile, Aeon Vietnam said the company has not received any official information about the stake acquisition. Fivimart now operates 20 stores in Hanoi and other northern provinces while Citimart has 27 stores, mostly in HCMC. Aeon will provide its Top Value products for Citimart and Fivimart supermarkets for sale and cooperate with the two partners to promote those products as well as consolidate and expand their distribution systems. According to Japan Times, through the tie-ups, Aeon aims to better understand local business needs and acquire knowledge of merchandise procurement, while sharing its experiences in quality management and logistics with its partners. Aeon sees Vietnam as its second most important market in Southeast Asia after Malaysia. It targets 200 stores across … [Read more...]

Can Tho Prioritising FDI Attraction

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Not only one of five cities directly under the central authorities, Can Tho City is also the key economic region of the Mekong Delta. This advantage plus benefits from a privileged location, abundant resources, potential for tourism, industry and services development, have created favourable conditions for Can Tho to significantly improve its’ position in the FDI attraction ranking. To learn more about this success, Vietnam Business Forum interviewed Mr Nguyen Van Hong, Director of Can Tho Planning and Investment Department. Hoang Lam reports.Could you tell us more about Can Tho’s achievements in attracting FDI in recent years? In 2014, investment in Can Tho has seen positive changes. Specifically, for the first 11 months, the city attracted 7 FDI projects with total registered capital of US$35 million, up 4.5 times compared to 2013 (a total of 7 projects, total registered investment of US$7.7 million). Accumulated by Dec, 2014, Can Tho city had 62 FDI projects in … [Read more...]

Vietnam’s shrimp king courts foreign investors to expand

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Workers process shrimp at a factory of Minh Phu Seafood Corp. in Vietnam's Mekong Delta. Minh Phu Seafood Corp., which sells black tiger shrimp to Costco Wholesale Corp. and Wal-Mart Stores Inc., will seek to sell half of itself to foreign strategic investors to help fund overseas expansion. Vietnam’s largest seafood exporter by value aims to complete the stake sales this year after it gets approval to delist from the Ho Chi Minh City Stock Exchange this quarter, Chief Executive Officer Le Van Quang said in an interview. The company forecasts net income will jump 55 percent to 1.416 trillion dong ($66 million) this year, with sales reaching $1 billion, mainly from exports, he said. "We’re looking for strategic foreign investors to help maximize our advantages and potential as our goal is to become a global shrimp company by 2020," Quang, dubbed the "king of shrimp" by local media, said in an interview Jan. 24 in the Mekong delta province of Hau Giang. Vietnam is … [Read more...]

Hoabinhtourist & Convention – Quality Makes Reputation

Could you please tell me about the visions of Hoabinhtourist & Convention?

Hoabinhtourist & Convention(a member of Hoabinh Group) has determined to follow sustainable development strategy since its establishment. MICE industry is regarded as the core operation field; therefore, Hoabinhtourist & Convention has made a large investment on human resources and professional event equipments, contributing to develop the potential MICE industry in Vietnam. Here is an interview with Mr. Jackie Han, Deputy Director of Hoabinhtourist & Convention. For over 10 years of operations, Hoabinhtourist & Convention (under Hoabinhgroup) has been the leading company in MICE industry. The company has gained partnership with government bodies, domestic and international organizations and enterprises. Hoabinhtourist & Convention organizes hundreds of events, conventions and large-scale events, with the average annual growth rate of 30%. It’s so proud to reach such an impressive annual growth rate in global economical crisis, however, Hoabinhtourist & … [Read more...]

VNPT, MobiFone prepare for overseas investments

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VietNamNet Bridge - Along with Viettel, the Vietnam Post and Telecommunications Group (VNPT) and MobiFone plan to reach out to foreign markets. Related news New top officials appointed to telecom giants in 2014Foreign firms eye buying into MobiFoneHow many MobiFone shares can investors own? Viettel was the first telecom giant of Vietnam which invested abroad in 2006. To date, Viettel has been promoting investment in nine countries with a total of 175 million people. Viettel’s networks are operating in six countries, including Cambodia, Laos, Mozambique, Haiti, East Timor and Peru, bringing $1.2 billion in revenue for Viettel in 2014. In other markets as Cameroon, Burundi, and Tanzania, Viettel has received a license and is implementing investment. Viettel is also seeking investment licenses to invest in a number of African and Eastern European countries. Most recently, Viettel Global, Viettel’s subsidiary specializing in overseas projects, announced that it would … [Read more...]

Promoting Central Highlands as Macadamia Capital of Southeast Asia

Macadamia, called "Queen of dry nuts" because of high nutrient content, is used as functional food and in cosmetics. According to statistics, the world demand for Macadamia has shot up by four times and predictably, it takes at least ten years to help the current supply to catch up with the increasing demand for Macadamia. The price of Macadamia on the world market keeps increasing, making it one of the most expensive agricultural products today. This nut is evaluated as a potential economic plan for the Central Highlands.Why macadamia? According to the Central Highlands Institute of Agro-forestry Science and Technology, among more than 450,000 hectares of coffee of the region now, there have been about 20 percent of old coffee trees and many kinds of outputs that are not stable, recoverable and transplanted. It is estimated that by 2020, more than 70 percent of the coffee in this area will have fallen into a similar situation. Macadamia has been planted in Vietnam since the early … [Read more...]

City IPs told to welcome major apparel projects

Machines and equipment of the textile and garment sector are on display at a recent exhibition in HCMC. The forthcoming Trans-Pacific Partnership (TPP) agreement leads foreign firms to increase investment in apparel projects in Vietnam - PHOTO: LE HOANG

Le Hoang Tran Viet Ha, head of the Investment Management Department of the HCMC Export Processing and Industrial Zones Authority (Hepza), explained the world’s apparel industry is forecast to grow strongly. The Trans-Pacific Partnership (TPP) agreement could be concluded this year, offering great opportunities for companies in the industry to benefit from zero tariffs on apparel exports to TPP member countries. Projects in the textile and garment sector need a lot of labor but experts said as apparel is a major export earner of Vietnam, it is one of the countries to benefit most from the opportunities to be brought by the multilateral trade pact. Therefore, Ha said some IPs such as Hiep Phuoc and Dong Nam have opened their doors to apparel projects, Ha told the Daily on the sidelines of a recent meeting of Hepza in the city. Ha said projects in the textile and garment sector licensed by Hepza produce luxury items and use modern technology. Among the apparel projects … [Read more...]

The unknown facts in the purchase of Nguyen Kim

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VietNamNet Bridge – How much does the Central Group have to pay to acquire Nguyen Kim? Why has the Thai investor accepted to buy only 49 percent of Nguyen Kim’s shares? Both questions remain unanswered. Related news Thai billionaire pays $200 million to acquire Nguyen Kim Nguyen Thi Hong, media director of Central Group Vietnam, confirmed that Power Buy, one of Central Group’s subsidiaries, has finished negotiations to acquire NKT New Technology and Solution Investment Development JSC, the owner of Nguyen Kim, one of the two largest home-appliance distribution chains in Vietnam. Regarding the value of the deal, a source quoted by a local newspaper said Nguyen Kim is valued at $200 million. This means that the Thai investor would have to pay roughly $100 million to acquire the Vietnamese chain. Tran Vinh Du, general director of TNK Capital, said the price is neither too high nor too low, considering Nguyen Kim’s P/E (price on earnings) ratio. With revenue … [Read more...]

Social News 26/1

Hospital treats puffer fish patients Nghe An Province's general hospital yesterday said doctors were able to save three people suffering from food poisoning after eating puffer fish. The victims, from Cua Lo Town, were rushed to the hospital on Saturday night. According to family members, they ate puffer fish on their vessel while fishing, and developed nausea and headaches, before slowly losing consciousness. Doctors have warned residents in coastal areas not to eat puffer fish, due to a high risk of food poisoning. Man arrested for drug, weapons smuggling Border police in Moc Chau District and relevant law enforcement agencies detained a person on Saturday carrying weapons and 1.75kg of heroin. The person was identified as Trang A Cho, born in 1984, a resident of Dong Sang Commune in Moc Chau District. Police seized a grenade, seven bullets and a shotgun. The case is still under investigation. Petrol stations cheat customers in Dac Lac An investigation by the Dac Lac … [Read more...]

PetroVietnam barred from investing in properties and banks

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Prime Minister Nguyen Tan Dung last week officially signed a decree forbidding the parent company Vietnam Oil and Gas Group (Petrovietnam) in using its capital to invest and acquire shares in real estate project, banks and insurance companies, according to Vneconomy newswire. In particular, PetroVietnam may not invest nor contribute capital in real estate projects and acquire shares in banks, insurance companies, securities companies, risk investment funds, securities investment funds and securities investment companies, except in special circumstances as directed by the prime minister. PetroVietnam’s capital includes the state capital invested in the organisation, capital raised by PetroVietnam itself and other sources of fund raised in accordance with legislation. PetroVietnam is responsible for accounting and following each source of funds under current regulations. According to the new decree, PetroVietnam will not be able to reduce its chartered capital. However, during … [Read more...]

Social News 24/1

Bus fare reductions for holiday travellers Following decreases in fuel prices, Ho Chi Minh City’s bus fares during the upcoming Tet (Lunar New Year festival) are expected to drop by 7 to 20 from last year, unveiled the municipal Ministry of Transport on January 22. According to agency statistics, 110 of 130 operators in the Mien Tay bus station and 115 of 214 operators in the Mien Dong station have reduced transport fares thus far. Only five operators have announced their intent to increase their ticket costs for some routes. Currently, the industry is experiencing increased demand on the people’s travel as the holiday season quickly approaches. On January 4, petrol prices were cut by 1,900 VND per litre, the second reduction this month. The price of RON 95 was down to 16,270 VND while the prices of RON 92 and bio-fuel E5 were reduced to 15,670 VND. Diesel prices were cut by 1,460 VND, resulting in a cost between 15,120 and 15,170 VND per litre. Earlier, on January … [Read more...]

Indian apparel firms come knocking

Representatives of Indian and Vietnamese firms and business associations exchange talks on the sidelines of the Vietnam-India trade forum in HCMC on Wednesday - PHOTO: THU NGUYET

Tran Thu Milind Hardikar, managing director of Welspun Group, one of the world’s leading producers of household apparel products, said the group is considering investing in apparel projects in Vietnam to turn out products for export to the United States. Welspun has seen new opportunities in Vietnam as the country is determined to join the Trans-Pacific Partnership (TPP) agreement, he told the Daily on the sidelines of the Vietnam-India trade forum in HCMC on Wednesday. The delegation, led by Indian Deputy Minister of Commerce and Industry Rajeev Kher, also included companies operating in the fields of leather-shoe, pharmaceutical, agriculture, food processing, banking and engineering. As scheduled, they wrapped up their Vietnam trip on January 22. Kher said India is a big producer of cotton and fiber while Vietnam is strong in textile and garment. Therefore, Indian producers can provide materials for Vietnam and guarantee stable supply for enterprises in this market. … [Read more...]

SOEs told to withdraw VND14.5 trillion this year

Lan Nhi The State capital divestment is part of a task for SOE restructuring this year, according to a statement released by the Government Office to convey key remarks of the Deputy PM at a recent meeting with the Steering Committee for SOE Reform and Development. State-owned groups and corporations should pull State capital out of securities, finance and banking, insurance, real estate and investment funds in line with a SOE restructuring plan for 2014-2015 approved by Prime Minister Nguyen Tan Dung and ministries. In January-October last year, SOEs divested over VND2.4 trillion, nearly 2.5 times higher than that in all of 2013. As of December 25 last year, they sold State holdings worth VND8 trillion at 233 companies, much higher than book value. But the divestment from securities was just 98% of book value. Under the Government’s Decision No. 929 issued in 2012 on SOE restructuring, State-owned groups and corporations must complete divestments from non-core businesses … [Read more...]

New IZ master plan to boost efficiency

VietNamNet Bridge – The Vietnamese government last year made changes to the development plans for industrial zones in 47 cities and provinces nationwide to facilitate more effective land usage and investment climate. Tran Duy Dong, director of the Ministry of Planning and Investment’s Economic Zones Management Department, talked with VIR’s Nhu Ngoc on how the adjustment would affect inward investments and opportunities for industrial zone developers.Why did the government decide to change the development plans for industrial zones (IZs) in the country? Since Vietnam developed its first IZ in 1991, IZs have played an important role in promoting foreign direct investment (FDI) into the country. Until now, 60 per cent of foreign-invested projects are located in IZs, creating more than two million jobs for locals. However, there are some shortcomings that need to be addressed, and the nation’s previous development master plan was also outdated. Many IZs still … [Read more...]

Garment sector targets USD3 billion export value to RoK

Source: VNA

Vietnamese garment and textile companies are targeting a total export turnover of an estimated USD3 billion to the Republic of Korea this year, Vietnam Investment Review reported. The total export turnover of Vietnam's textile and garment sector to the RoK reached USD2.4 billion last year, an increase of 27 percent compared to 2013. The highest growth was seen in jackets, overcoats, suits and male and female trousers. The Republic of Korea is Vietnam's fourth-largest textile and garment export market. The Ministry of Industry and Trade said last year the market share of Vietnam textile and garment export to the RoK reached 16.4 percent, an increase of 2.1 percent compared to 2013. This year, the RoK's textile and garment import turnover is expected to reach USD16.3 billion, an increase of 11.6 percent over last year. Tran Viet, head of the Vietnam Textile and Garment Group's market department, said the RoK is still a major market for Vietnamese textiles and garments, along with … [Read more...]

Bank shares, low petrol prices buoy markets

Stocks maintained rises in the afternoon of January 22, sustained by bank shares, as prices fell to an attractive level after a four-day slump. On the Hochiminh Stock Exchange, the VN-Index closed yesterday's session at 574.54 points as advancers outnumbered decliners by 120-94. The other 94 stocks closed flat. The market was upbeat due to the reduction in petrol prices announced late on January 21. The performance of businesses is expected to improve as input costs fall substantially. Bank shares led the upturn on January 22 as Vietinbank (CTG) and Bank for Investment and Development of Vietnam (BID) hit their ceiling prices, capped at 7 percent a day. Other blue chips like Eximbank (EIB), Sacombank (STB), Military Bank (MBB) and Vietcombank (VCB) also gained 1.6-3.6 percent. These shares were also among the most active stocks with 2-6 million shares exchanged on each code. The VN30, which tracks the top 30 shares by market value and liquidity, edged up 0.62 percent to end at … [Read more...]

Agriculture Likely to Attract More Investors?

As a researcher in agricultural and rural development strategies and policies, Dr Do Anh Tuan thinks that it is time enterprises rushed into agriculture.Domestic investors get prepared Dr Nguyen Do Anh Tuan, Deputy Director of the Institute of Policy and Strategy for Agriculture and Rural Development (IPSARD) under the Ministry of Agriculture and Rural Development, said that Vietnam’s agricultural sector has gathered enough factors that investors look for: Benefit and opportunity. The benefit is the advantage of agriculture, which includes favourable climate, soil, and abundant human resources or labour force. Regarding policy, the Government of Vietnam always focuses on attracting investment capital, particularly FDI, for agriculture, forestry, fishery and rural development. The opportunity is the deepening and broadening integration process, driven by free trade agreements (FTAs) with regions, nations and territories in the world. However, investors will spend their money on … [Read more...]

Vietnam-Russia: Close Cooperation in Various Fields

Vietnam - Russia relations have been upgraded to a comprehensive strategic partnership since 2012. The signing of the Joint Declaration to conclude negotiations for a Free Trade Agreement between Vietnam and the Customs Union of Russia-Belarus-Kazakhstan (VCUFTA) in early 2015 is expected to create a breakthrough in the fields of trade, investment and tourism, as well as creating a wave of big investment from Russian investors to Vietnam in the coming time.Increased trade and investment According to statistics, the two-way trade of the two countries has developed rapidly, from US$350-400 million in the mid-90s to nearly US$2 billion in 2011, an average increase of 17 percent a year, of which Vietnam's exports to Russia increases 25 percent a year. In 2013, the two-way turnover reached nearly US$4 billion and in the first 10 months of 2014, the bilateral trade reached US$2.2 billion. Vietnam exports to Russia major items such as telephones and accessories, computers, electronic … [Read more...]

Cheap Vietnam stocks are set to rise to 7-year high

Vietnam’s stock strategists say the benchmark index will jump to a seven-year high this year as accelerating economic growth boosts earnings and the cheapest valuations in Southeast Asia lure investors. The VN Index will advance to about 655 by the end of 2015, or 15 percent from its closing level yesterday, according to the average of 11 analyst forecasts. The measure is valued at 12.5 times estimated earnings, versus 14.3 for the MSCI Southeast Asia Index, data compiled by Bloomberg show. Vietnamese analysts project earnings will climb 10 percent in the next 12 months, compared with a 2 percent drop for the Southeast Asia gauge. The country’s economy is forecast to grow at more than 6 percent for first time since 2011 this year as foreign investment boosts exporters, banks increase lending and slowing inflation encourages consumers to spend. "Valuations and fundamentals in the macroeconomy continue to support a move higher in the index," said Patrick Mitchell, the Ho … [Read more...]

1 more accident at troubled Hanoi railway construction site

Workers at a Hanoi elevated railway site Monday caused a small fire when they were welding a scaffolding that had twice collapsed in the past, slightly injuring several motorists on the street below. The Ha Dong-Cat Linh project, notorious for the two deadly collapses recently, just became scarier after sparks from a welding torch set the net covering the frames on fire, news website VietNamNet reported. Traffic was heavy at the time and several people on motorbikes below were singed by the fire. One motorist, who had a finger burnt, said: "It’s very dangerous, but we have no other road; so we just have to take the risk and travel below the work site every day." Le Minh Son, chairman of PetroVietnam Infrastructure and Urban Investment JSC, has apologized for the "regretful incident" in the media on behalf of China Railway Sixth Group Co. Ltd., the Chinese state-owned contractor. Minister of Transport Dinh La Thang earlier this month suspended the project after calling it … [Read more...]