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Posts Tagged ‘open’

Gadget sellers fear open market

In Uncategorized on September 30, 2008 at 6:24 pm







A client browses electronics at a shop on Hai Ba Trung Street. Domestic retailers of electrical appliances are concerned about the difficulties they will face after the market is opened to foreign retailers starting next year. — VNS Photo Truong Vi

HA NOI — Domestic retailers of electrical appliances are concerned about the difficulties they will face after the market is opened to foreign retailers in the next few months.


World Trade Organisation commitments allow foreign retailers to set up wholly foreign invested distribution channels and stores in Viet Nam as of January 1, 2009.


Foreign retail giants have expressed interest in the sector and mapped out plans to enter the market, according to insiders from the domestic retail sector.


Japan’s leading retailer, Best Denky, has joined with local retailer Ben Thanh Trading and Marketing Company to set up two electrical superstores in Ha Noi and Can Tho.


Other giants including South Korea’s GS Retail and Best Buy from the US are preparing to open superstore chains nationwide.


Growth in electronics consumption is expected to rise rapidly in the future, as more and more Vietnamese can afford high-end electronics. According to GS Retail, the sector reported turnover of US$3 billion last year and the growth rate in 2008-2010 will reach 30-40 per cent year-on-year.


Foreign retailers will face difficulties expanding in Viet Nam as they must get a business licence for each separate store, however, industry insiders warned that only roughly 20 per cent of domestic small-sized retailers would likely survive when the market is fully opened.


Major retailers such as Nguyen Kim, Pico and Cho Lon would also face strong competition and likely lose market share, they said.


Ngo Thanh Dat, marketing director of Pico Joint Stock Company, one of the country’s largest electronics retailers, said that foreign retailers strengths in financing and experience would be their greatest challenge.


Dat said foreign retailers could easily afford the best locations to open large stores, often with floor space of over 10,000sq.m. They also provide more competitive pricing as global retailers enjoy better discounts from producers.


He cited Pico as an example, saying that with turnover reaching roughly VND200 to 400 billion ($12 million – $24 million) yearly, Samsung Electronics provided a VND2 billion loan to Pico allowing them to quickly develop.


To be able to survive, Dat recommended domestic retailers work together to counter the larger foreign competitors. It is also necessary to speed up of human resources training, Dat said.


Sai Gon Nguyen Kim has plans to open stores in nine cities next year, and hopes to be present in all cities and provinces by 2015. The group has so far opened two retail centres in HCM City and Ha Noi.


Pico and Cho Lon also plan to open a chain of retail centres nationwide. —

Temasek Holdings licensed to open Hanoi rep. office

In Uncategorized on September 18, 2008 at 6:04 pm

Singapore’s Temasek Holdings (Private) Limited has been officially licensed to operate its representative office in Hanoi.

The new office will enable the corporation to foster closer working ties with Vietnamese businesses and reinforce its commitment to Vietnam as a key market in Southeast Asia.

Temasek first established its presence in Vietnam in 2005 through a representative office in Ho Chi Minh City.

The two rep. offices function as offices for communication and market research and promote cooperative projects on securities and stock market in Vietnam.

They also supervise the execution of signed agreements between Temasek and Vietnamese economic organisations and Temasek funding projects in Vietnam.

With the Hanoi new office and increased staff strength, the corporation can now further tap on the advantages of having a presence in Vietnam’s two important business centres, said its Chief Representative in Vietnam, Derek Lau.

He added that the corporation is in a strategic position to reach out to existing and potential partners to explore partnerships and investment opportunities in Vietnam.

Temasek Holdings has invested in some companies in Vietnam such as Minh Phu Seafood Joint Stock Company, Vinasun Taxi Company and Binh Chanh Construction and Investment Company.-

Standard Chartered to open 30 branches across VN

In Uncategorized on September 17, 2008 at 10:27 am

HA NOI — Standard Chartered Bank has signalled that it plans to open 30 branches in Viet Nam over the next four years, after gaining approval to be the first overseas bank to incorporate their local operations in the country.


Ashok Sud, chief executive of Standard Chartered Bank in Viet Nam, yesterday told reporters in Ha Noi that local incorporation would enable it to be better positioned to help Vietnamese companies raise capital in international markets.


The UK bank expressed confidence in the long-term development of Viet Nam’s economy, saying that, “Given the turmoil in the global and local markets, all investments of the bank in Viet Nam have been thoroughly considered.”


It is expected that Viet Nam’s economy will need an injection of about US$50 billion. Foreign banks will need to supply some of that capital.


The liberalisation of the banking sector comes amid a worsening economic backdrop in Viet Nam, with annual growth revised down to 7 per cent and credit growth limited to control double-digit inflation.


But Viet Nam remains attractive, because it is one of the least penetrated markets in Asia, with just 1 in 10 of its 87 million population holding a bank account.


Sud added that the effective controls the Government put in place to curb inflation and stabilise the economy demonstrated a sure touch.


In terms of market share in Viet Nam, some 40 foreign banks account for less than 10 per cent of total lending in the country. Over the next 5-10 years, local banks are still expected to hold an 85 per cent market share.


However, the participation of foreign banks like Standard Chartered will help domestic enterprises access high quality banking services.


Standard Chartered Bank owns a 15 per cent stake in Asia Commercial Bank (ACB). The UK bank said it had no plans to increase its investment in ACB at this time. In contrast, HSBC has increased its stake in Techcombank from 15 per cent to 20 per cent.


Standard Chartered Bank opened its first branch in Viet Nam in 1904. The bank has two branches in the country, the maximum permissible. They focus on serving the wholesale banking needs of Asia-based companies in the country.


Standard Chartered Bank plans to sign a contract today to loan the Vinacomin group $58 million. —

Japan, VN firms open research and development centre

In Uncategorized on September 17, 2008 at 10:26 am

HCM CITY — Vietnamese and Japanese software companies FPT Software Co and Hitachi Joho Ltd launched a joint research and development centre in the city last Saturday.


The Hitachi Joho-FPT R&D Centre will have five Japanese experts and 60 Vietnamese developers working together to come up with attractive products for foreign investors.


FPT Software and Hitachi Joho expect to expand the centre in scale by at least four times by 2010, and become the largest Japanese player in the country’s software industry, officials say.


The Japanese company also plans to support FPT’s training work by hosting Vietnamese coders and enabling potential Vietnamese IT workers to improve their skills and management expertise.


“One of the current most urgent issues of the Japan’s IT industry is the necessity to provide IT services at low cost, while lacking IT technicians. Therefore, shifting production work to foreign countries is obvious.


“Previously, Hitachi Joho placed China at the focus of our global map, and now we expand our focus to Viet Nam, starting with the cooperation with FPT Company in software development,” said Hara Iwao, general director of Hitachi Joho.


Currently, revenues earned from co-operative projects between Hitachi Corp and FPT have accounted for more than 17 per cent of the latter’s earnings, and the new venture is expected to boost this further.


Besides the R&D centre, the Japanese partner plans to set up a centre to collect data on the ties between Viet Nam and Japan and also get involved in providing training services at Vietnamese universities and colleges, including the FPT College. —

Standard Chartered to open 30 branches across Vietnam

In Uncategorized on September 16, 2008 at 9:38 am

Hanoi (VNA) – Standard Chartered Bank has signalled that it plans to open 30 branches in Vietnam over the next four years, after gaining approval to be the first overseas bank to incorporate their local operations in the country.

Ashok Sud, chief executive of Standard Chartered Bank in Vietnam, on September 15 told reporters in Hanoi that local incorporation would enable it to be better positioned to help Vietnamese companies raise capital in international markets.

The UK bank expressed confidence in the long-term development of Vietnam ’s economy, saying that, “Given the turmoil in the global and local markets, all investments of the bank in Vietnam have been thoroughly considered.”

It is expected that Vietnam’s economy will need an injection of about 50 billion USD. Foreign banks will need to supply some of that capital.

The liberalisation of the banking sector comes amid a worsening economic backdrop in Vietnam, with annual growth revised down to 7 percent and credit growth limited to control double-digit inflation.

But Vietnam remains attractive, because it is one of the least penetrated markets in Asia , with just 1 in 10 of its 87 million population holding a bank account.

Sud added that the effective controls the Government put in place to curb inflation and stabilise the economy demonstrated a sure touch.

In terms of market share in Vietnam , some 40 foreign banks account for less than 10 percent of total lending in the country. Over the next 5-10 years, local banks are still expected to hold an 85 percent market share.

However, the participation of foreign banks like Standard Chartered will help domestic enterprises access high quality banking services.

Standard Chartered Bank owns a 15 percent stake in Asia Commercial Bank (ACB). The UK bank said it had no plans to increase its investment in ACB at this time. In contrasts, HSBC has increased its stake in Techcombank from 15 percent to 20 percent.

Standard Chartered Bank opened its first branch in Vietnam in 1904. The bank has two branches in the country, the maximum permissible. They focus on serving the wholesale banking needs of Asia-based companies in the country.

Standard Chartered Bank plans to sign a contract to loan the Vinacomin group 58 million USD on September 16.-

More housing options open for Overseas Vietnamese

In Uncategorized on September 15, 2008 at 10:54 am

HCM CITY — Some 100,000 overseas Vietnamese (Viet Kieu) could buy homes in Viet Nam, according to the National Committee of Overseas Vietnamese.


The committee, which operates under the Ministry of Foreign Affairs, announced the figures following Construction Minister Do Hong Quan’s report on a proposed amendment to the Housing Law sent to the Prime Minister on Wednesday.


Under the amendment, more overseas Vietnamese will be allowed to buy houses in Viet Nam, according to Deputy Minister of Construction Nguyen Tran Nam.


Under the amendment, individuals of Vietnamese origin living abroad but still holding Vietnamese nationality would be allowed to purchase homes.


Others permitted to buy homes include those who no longer have nationality but invest in the country in accordance with the Foreign Investment Law, and those who have married local residents who live in Viet Nam.


Overseas Vietnamese who have made significant contributions to Viet Nam and others who hold university or higher degrees and currently work in social and economic areas in Viet Nam are also included.


Under the amended law, they will be allowed to own an unlimited number of houses like the locals.


Nam said the amendment showed that the Government recognised the overseas Vietnamese community as an inseparable part of the country.


Under a decree issued by the Government in November 2001, overseas Vietnamese who make a long-term investment in Viet Nam, or those who make considerable contributions to their native country, conduct cultural and scientific activities in Viet Nam and want to have permanent residence in Viet Nam, are entitled to buy only a house, an apartment or a villa in permitted residential areas.


According to figures from the Ministry of Construction, eight years after the issue of the decree, only 130 overseas Vietnamese have purchased houses in Viet Nam, mainly in HCM City and Ha Noi. —

Techmart Hanoi 2008 to open in September

In Uncategorized on September 5, 2008 at 7:27 am

Hanoi (VNA) – The Hanoi Technology and Equipment Fair 2008, scheduled for opening on Sept. 18, hopes to strengthen the cooperation among management agencies, scientists and manufacturers, said one of its organisers.

Techmart Hanoi 2008, the third of its kind, will be jointly held by the Hanoi Department of Science and Technology, the National Assembly’s Committee of Science, Technology and Environment and the Ministry of Science and Technology.

The four-day event will have 307 booths of 271 exhibitors, including the departments of science and technology of six other provinces and seven foreign businesses.

Apart from information technology, automation and bio-technology, Techmart Hanoi will also feature urban architectural planning, public transport, energy saving and environment solutions and traditional crafts.-

Ophthalmology centre to open in Hue

In Uncategorized on August 15, 2008 at 3:16 pm

The Health Ministry and the provincial authority of Thua Thien-Hue on August 14 broke ground for the Hue Ophthalmology and Training Centre, a 4 million USD addition to Hue Central Hospital.

The centre is expected to significantly upgrade services to patients with severe eye illnesses.

Funded by the Bermuda-headquartered NGO Atlantic Philanthropies (AP) and carried out by the East Meets West Foundation (EMW), the project is a humanitarian gift to the people of Hue and is expected to be completed by the end of 2009.

The eye hospital addresses a critical need as blindness is widespread in Vietnam , and several hundred thousand cases require surgery.

Speaking at the ground-breaking ceremony, the director of Hue Central Hospital , Bui Duc Phu, said the four-storey building would include facilities equipped with state-of-the-art ophthalmology equipment for exams, diagnosis and operations as well as conference rooms and laboratories for training purposes.

Phu said EMW and AP had funded new facilities for the Hue Hospital ’s Pediatrics Department and the 8.3 million USD Hue Cardiovascular Centre became operational at Hue Central Hospital , with 200 in-patient beds, four operating theaters and an intensive care unit.

This year, 1,000 surgeries are expected to be performed at the centre.

”East Meets West is working towards the goal of improving overall health care in Vietnam while targeting specific sectors, and vision is clearly one of the most essential components to a person’s life,” said Mark Conroy, EMW country director.

EMW also built the Hue University Learning Resource Centre, a modern library that has multimedia, seminar and study areas.

The partnership between Atlantic Philanthropies and EMW has provided health and higher education infrastructure in several Vietnamese localities including Hanoi and Thai Nguyen and Quang Tri provinces since 1998.-

Vietnam Auto Show 2008 to open in Hanoi

In Uncategorized on August 15, 2008 at 3:11 pm

Vietnam Auto Show 2008, the biggest of its kind so far, will be held in Hanoi from August 21-25 with the participation of 12 members of the Vietnam Automobile Manufactures’ Association (VAMA).

The show, jointly organised by VAMA and the Asia Trade Fair and Business Promotion Joint Stock Company , is a biennial event from 2002 and an annual event from 2008 .

On display at the fourth show, entitled “A true dream”, will be four-seat and seven-seat cars, minibuses, city buses, passenger cars and vehicles of special purposes.

Services and products of the supporting industry, including car interior products, car accessories and components, bank services and insurance, will also be exhibited during the five-day show.

Economical and environmentally friendly cars made by Honda, Toyota , Ford and Mercedes-Benz will be highlighted at the show.

A seminar on automobile assembly and production in VN will also be held during the event.

VAMA President Udo F. Loersch told the press on August 15 that the show not only reflects domestic automobile manufacturers’ active growth and technology development but also is an opportunity for foreign businesses to explore Vietnam ’s supporting industry.

He pledged continued investment in Vietnam ’s automobile sector and hoped that the Vietnamese Government will apply long-term stable tax policies in facilitating automobile manufacturers’ further investment in production.

VAMA, a non-profit organisation, has 17 members, including 11 joint venture and foreign-invested firms. Making its debut in 2000, the association has made considerable contributions to Vietnam ’s automobile industry and created more than 65,000 jobs for local workers.-

India to open trade under FTA with ASEAN

In Uncategorized on August 12, 2008 at 1:39 pm

- India will eliminate or substantially reduce duties on almost 96 percent of the items it trades with ASEAN but protect the sensitive agriculture sector by keeping over 300 items out of the free trade agreement with the 10-nation group.

The other sensitive areas which New Delhi will protect from the FTA include textiles and chemicals, the two areas of strength for the ASEAN, an Indian high-level official was quoted by Press Trust of India (PTI) as saying.

While India protected its sensitive industries like textiles and chemicals, the ASEAN shielded its turf on automobiles and steel, the PTI said.

The two sides have resolved their differences on the level of protection and the demand for market access for products mainly palm oil, the PTI said, adding that the agreement will be signed at the India-ASEAN summit in December in Bangkok.-

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