BUSINESS IN BRIEF 1/10

Thai businesses keen on investing in Vietnam

Many Thai businesses have shown a keen interest in Vietnam’s preferential investment policies, taxation, land leasing and ownership as well as schools for learning Vietnamese.

At a seminar on business and investment opportunities and challenges in Vietnam inThailand ’s north-eastern province of Khon Kaen on September 29, Deputy Minister of Industry and Trade Nguyen Thanh Bien said that this is a practical way of implementing commitments to the ASEAN Economic Community and expanding cooperation along the East-West Economic Corridor to increase two-way trade.

Deputy Minister Bien said that despite the impacts of the global financial crisis, two-way trade recorded an average increase of 10.6 percent in the 2007-09 period and a year-on-year rise of 25.1 percent to 4.25 billion USD in the first eight months of this year.

In August 2010, Thailand was ranked 10th out of the foreign investors in Vietnam with 237 projects, totalling 5.7 billion USD, he said.

Vietnam boasts political stability and an improved legal system and infrastructure, he said, adding that the nation will soon become an important gateway to other big markets in Southeast Asia.

He said that Vietnam’s market is developing stably and safely and the country is cutting tariffs under the ASEAN Trade in Goods Agreement (ATIGA) while further integrating into the global economy.

For his part, the acting Mayor of Khon Kaen province Payat Chanparsert said that by being ASEAN members, Thailand and Vietnam have made considerable progress, especially the relationship between his province and regions of Vietnam.

The participation of large numbers of Thai representatives reflects their wishes to promote bilateral trade and investment ties, he stressed.

Vietnamese company expands business in Laos

Hanoi Liquor Joint Stock Company (HALICO) opened its representative office in the Lao capital city of Vientiane on September 30.

Lao Minister of Industry and Trade Nam Viyaketh, Deputy Minister of Planning and Investment Thongmy Phomvisay, senior officials and Vietnamese Ambassador Ta Minh Chau along with 200 guests were present at the opening ceremony.

Addressing the event, HALICO Director Ho Van Hai underlined the company’s prestigious trade mark which has developed both at home and abroad over the past 100 years.

He said the company desires to introduce high-quality products to Lao customers and build a factory in the country in order to boost two-way trade between the two nations, generate more jobs for local people and contribute to the two countries’ state budgets.

Lao Minister Nam Viyaketh hailed the establishment of the office and pledged to create favourable conditions for the company to effectively run business and invest in his country.

He extended his wish that HALICO would soon open a factory in Laos to provide good-quality products for the country and other labouring markets, contributing to bolstering bilateral comprehensive cooperation.

On behalf of the Lao government, Deputy Minister of Planning and Investment Thongmy Phomvisay granted investment licence to the company’s director.

City company signs Japan partner deal

The Japan Pile Corporation has entered a strategic partnership with local firm Phan Vu Investment Corporation, concluding its contract on Sept. 30 in HCM City.

Under the contract, the Japanese company, which is listed on the Tokyo Stock Exchange, will become a shareholder in Phan Vu. (PVI) with a 5-per- cent stake. It will be the first foreign institutional investor of PVI.

The deal value, however, was not disclosed.

According to PVI’s deputy general director Vo Thi Hien, her company has a charter capital of 150 billion VND (75.5 million USD).

Last year it earned a net profit of almost 60 billion VND from a turnover of 690 billion VND.

As PVI’s operations also include the pile foundation business, the Japanese partner will cooperate to create new pile products for the Vietnam market, including those with an anti-earthquake feature.

It will also assist in the management of the holding company model.

In the fourth quarter, Japan Pile Corp will organise training courses for PVI staff in Vietnam and receive trainees in Japan as well.

The Phan Vu Investman Corp is expected to list in the HCM City bourse in the fourth quarter this year.

Expo promotes regional tourism

A three-day annual International Travel Expo aimed at boosting 3CODE (Three Countries One Destination) tourism programme covering Vietnam , Laos and Cambodia opened in HCM City on Sept. 30.

Held at the Saigon Exhibition and Convention Centre in District 7, the event attracted 155 "buyers" from 35 countries and 173 sellers (enterprises and departments offering products and services).

Besides buyers from traditional markets, organisers aimed to explore new markets in North Europe, Spain , Italy and the US .

"This year’s expo welcomes Myanmar , preparing to form the new 4CODE," said La Quoc Khanh, deputy director of the HCM City Department of Culture, Sports and Tourism.

"We hope to see all the six countries of the Greater Mekong Subregion in the coming expo, to join hands and make the region more interesting in the eyes of international tourists," Khanh said.

Vietnam ’s national flag carrier as well as the official carrier of the event, Vietnam Airlines, offered up to 85 percent discounts on selected international routes.

The carrier also introduced its "Welcome Christmas in Europe " tour packages at attractive prices.

Thailand organised a conference introducing its Amazing Thailand campaign. The Tourism Authority of Thailand (TAT) targets 14 million arrivals by the end of this year, and 15.5 million international tourist arrivals next year.

TAT and the Vietnam National Administration of Tourism will hold a working section on Sept. 10.

Oolong tea processing plant opens in Lam Dong

The foreign-invested Haiyih Ltd company on September 30 inaugurated Vietnam’s leading Oolong tea processing plant in Da Lat city in the Central Highlands province of Lam Dong.

Ha Thuy Linh, director of the Haiyih company said that at a total investment of over 35 billion VND, the plant covers 12,000 sq.m and produces over 4,300 tonnes of fresh bud tea per year.

According to the company, once put into operation, the plant will achieve an annual turnover of about 7 million USD, generate jobs for 500 local workers and ensure material-supply contracts for 260 farmer households in the area.

Oolong is a high-value tea with price ranging from 500,000 VND to 4.5 million VND per kilogram.

Trade relations with Germany flourish

Vietnamese and German officials said they were optimistic at bilateral trade ties in the years to come, following a gathering to mark the 35 th anniversary of the establishment of diplomatic relations in Ho Chi Minh City on September 30.

Nguyen Huu Thien, President of the HCM City Vietnam-Germany Friendship Association, said he believed that the multi-faceted relationship between Vietnam and Germany , including HCM City , would continue to grow and reach a new height.

Germany ’s Consul-General in HCM City , Conrad Cappell, said Germany was Vietnam ’s biggest trading partner in the EU, as two way trade turnover reached 4.6 billion USD in 2009 and is expected to hit 5 billion USD in 2010.

Germany is always interested in the Vietnamese market and is currently carrying out a number of economic and trade projects in Vietnam , he said.

The German diplomat however, acknowledged his country’s low position of the 22 nd in the list of the 90 countries and territories having invested in Vietnam , which he said would change in the years to come.

“More and more German businesses will invest in Vietnam , especially in new energy, bio-technology and information technology, which are Germany ’s strengths,” Cappell emphasised.

He announced that a 120-strong trade mission would conduct market research in Vietnam in November.

The two officials shared the view that the Vietnamese community in Germany , with a population of nearly 100,000, tens of thousands of academics and former workers and specialists will serve as a bridge to connect both peoples together and help boost bilateral relations.

VietNamNet/VNA