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Johnson Controls opens automotive interiors plant in Binh Duong

The Viet Nam-Singapore industrial zone in southern Binh Duong province. The US-based Johnson Controls group has recently inaugurated a plant producing automotive interiors in the Viet Nam-Singapore industrial zone in southern Binh Duong province. The US$8 million Jonhson Controls Viet Nam has a capacity of churning out 833,000 products per year and generates jobs for 530 workers. Its products are not only geared to foreign customers in Japan and Malaysia but also potential ones in Viet Nam. The corporation's board of managers highlighted Viet Nam's propitious investment environment, intensive labour force and promising market of over 80 million people as the main factors prodding them to increase investment in Viet Nam. A global leader in automotive devices and power solutions, Johnson Controls also plans to expand their business to other fields in Viet Nam, including production of power equipment like batteries and power solutions for the automobile sector in the future, said the managers. Jonhson Controls has an annual turnover amounting to more than US$32 billion.

Source: Vietnam Agency

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US$100 million FDI project in Thai Nguyen licensed

VNECONOMY updated: 10/01/2007

Thai Nguyen Province The Japanese group Intra on Jan. 9 received a licence to invest US$100 million in building a reservoir and a new urban area in the northern province of Thai Nguyen. Under the project, Intra will enlarge the Xuong Rong reservoir to 18.84 ha and build a complex of high-grade residence quarters, offices for lease and hotels. The investor plans to commit US$70 million to building the Xuong Rong urban area, US$18 million to clearing the ground, and US$12 million to enlarging the reservoir. In the first phase of the project (2007-2008), the investor will implement build-transfer contracts signed with Thai Nguyen province on development of the Xuong Rong reservoir and a number of periphery infrastructure facilities. The building of apartments and offices will start in the second phase from 2008-2009.

Source: Vietnam Agency

Saddam Hussen Finally Dead ! (clip)

Saddam Hussen Finally Dead ! (clip)

mô phật

Fisheries association aims to connect with fishermen

To establish a direct link between fishermen and associations of aquatic farmers and processors nationwide, is the main objective of the Vietnam Fisheries Association (VFA)'s development strategy for the 2006-2010 period.

VFA President Nguyen Huu Khanh said at the association's second conference in Hanoi on Jan. 6, that, to this end, the association will work to establish 35 chapters with 50,000 members nationwide by 2010. The VFA currently has 29 chapters with 27,000 members.

Deputy Fisheries Minister Nguyen Viet Thang said the association should strive to build a close cooperation among its chapters as well as with processing businesses in order to ensure materials supply for processing, thus boosting exports.

(CPV/VNA)

Pooling all resources to achieve economic growth rate of 8.5 percent

Prime Minister Nguyen Tan Dung emphasised the need to successfully implement the three major tasks of achieving an economic growth rate of 8.5 percent, reinforcing administrative reform and combating corruption and wastefulness in 2007.

A conference was held in Hanoi on January 8 to implement State budget plans for 2007 which drew the participation of Prime Minster Nguyen Tan Dung and deputy Prime Ministers Nguyen Sinh Hung and Truong Vinh Trong.

Opening the conference, PM Dung highlighted the remarkable achievements in socio-economic development recorded in 2006.

Delegates to conference heard a report from Minister of Planning and Investment Vo Hong Phuc on the implementation of the plan for socio-economic development and the State Budge for 2006 and implementation solutions for 2007. Trade Minister Truong Dinh Tuyen briefed them on a number of major guidelines and policies to help the national economy maintain its fast and sustainable development after Vietnam’s entry into the World Trade Organisation (WTO).

Minister of the Interior Do Quang Trung reviewed administrative reform programs and set tasks for 2007 while Chief Government Inspector Tran Van Truyen reported on the government’s action program on implementing the Anti-Corruption Law.

Minster of Planning and Investment Phuc said in 2007, the focus will be on seven key solutions for perfecting mechanisms of the market economy, improving the investment environment, raising the operation efficiency of the State apparatus, practicing thrift and combating wastefulness.

Minister of the Interior Do Quang Trung underscored the need to enhance administrative reform by effectively handling bureaucracy, ironing out snags in people and enterprises’ activities and removing unnecessary sub-licenses used by ministries and sectors at the central level.

Many delegates said it is essential to build a central anti-corruption agency and issue documents on implementing the Anti-Corruption Law and dealing with leaders of agencies involved in corruption. They also proposed some measures to coordinate with the Government in boosting production and business activities, reinforce administrative reform and combat corruption in the most effective way.

The conference will close on January 9.

(CPV/VOV)

US closer to building first nuclear warhead in 20 years

The US has been carrying out its plan to build its first nuclear warheads in nearly 20 years.

The New York Times reported that a hybrid design for the new weapon will be unveiled by the interagency Nuclear Weapons Council.

It will not add to but replace the nation’s existing arsenal of aging warheads.

If this plan is approved by US President George W. Bush and financed by the Congress, it will cost over 100 billion USD.

Exploratory research for the weapon was authorized three years ago, and has been financed since. Now the costs will begin to increase.

With a generation of more reliable arms, the military could abandon holding onto huge inventories of old weapons, and reduce the American arsenal from some 6,000 warheads to 2,000 or less.

However, the new weapon called the Reliable Replacement Warhead (RRW) will combine elements of designs from two weapons laboratories in an approach that some experts argue is untested and risky, reported Xinhuanet.

Last week, a spokesman for the National Nuclear Security Administration said the government will not proceed with the RRW if it is determined that testing is needed.

Edited by T.H

A big New Year thanks from Thanh Nien

On the occasion of New Year, Thanh Nien would like to express heartfelt gratitude to its readers for contributing to its programs to help the poor and talented for the last 21 years.
Thanks to them Thanh Nien raised over VND17 billion (US$1.07 million) last year to help thousands of victims of destructive typhoons which devastated the country’s central and southern areas.

Part of the amount was also used effectively for the newspaper’s Nguyen Thai Binh Scholarship for poor students as well as the Thanh Nien-sponsored Funds for Vietnamese Talents.

Since the newspaper was founded 21 years ago, its readers have contributed over VND50 billion ($3.1 million) to help the needy.

Recently, thousands of people disregarded heavy rains to attend Thanh Nien’s Duyen Dang Viet Nam (Charming Vietnam) music show, which is held every year to raise money for the Nguyen Thai Binh scholarship.

Earlier, thousands others in Da Nang flocked soon after a typhoon devastated the city to see Thanh Nien’s under-21 football championship, a national event that has helped boost many talented footballers.

Thanh Nien pledges never to betray its readers’ trust.

We hope all Vietnamese, no matter where or who they are or what ideology they adopt, give utmost priority to national interest and join hands to help develop our country.

We would also like the government to have a transparent mechanism in exchanging information with the media and a balanced view on the role of the media in society.

In the past, the media has raised questions about many controversial issues like major construction projects and corruption scandals. And in many cases, there have been no answers from the authorities.

There were even instances in which media reports blowing the lid on corruption were condemned as attempting to “befoul” society.

Only the government’s balanced attitude and frank exchange of information with the media can ensure a strong media that can play an effective role in building and protecting our country.

Written by Editor-in-Chief Nguyen Cong Khe

Fitch affirms ratings of Sacombank

Fitch Ratings has affirmed Vietnam-based Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank)’s Individual and Support ratings of 'D' and '5', respectively.
The ratings reflect Sacombank's adequate balance sheet strength and good profitability.

The bank has grown rapidly over recent years, registering a 237% growth in its balance sheet over the three years to end-2005.

Its loan book is split 40:60 between consumers and private businesses, reflecting its niche focus in the retail business segments which has been considerably neglected by Vietnam's larger state-owned banks.

Despite its rapid growth, Sacombank has maintained good asset quality, with a very low reported NPL ratio of 0.6%, down from 0.9% a year prior thanks to loans growth and very few new NPLs.

Additionally, almost all loans are tangibly secured on a low/conservative loan-to-value basis, although this provides only limited comfort in a country where foreclosure is a time-consuming and uncertain process due to a relatively inefficient legal system.

Meanwhile, profitability has been good with the bank achieving a RoAA of 1.8%, thanks to strong margins from its retail deposit-taking/lending focus, good fee income and limited credit costs.

Sacombank's capital strength is also sufficiently adequate, with an end-2005 equity/asset ratio of 13.0%, up from 9.3% at end-2004 due to capital injections and to a lesser extent retained earnings.

Such substantial capitalization, however, is unlikely to remain over the longer term if the bank continues to grow so fast. In this regard, the bank advises that it plans to retain all of 2006's earnings and further boost its equity base by 5% to 10% through a public share issuance over 2007.

Sacombank was formed in 1991 through the consolidation of four credit institutions in Ho Chi Minh City.

The bank has three foreign strategic shareholders, ANZ, the IFC and Dragon Financial Holdings (a Vietnam-based, UK-owned asset management company). It was listed mid-2006 with management holding a 34% share and the public 29%.

Source: The Asian Banker

Vietnam oil joint venture reports profitable year

Vietsovpetro, a Vietnamese-Russian oil and gas joint venture, announced revenues topped US$5 billion last year, a 16 percent jump, despite lower output.
Net profit was $836 million, a year-on-year jump of 18 percent and 21 percent higher than earlier projections.

Its output was around 9.8 million tons of crude oil, some 850,000 tons less than the previous year, due to a production cut in some wells.

However, its bottom line benefited from consistently high global oil prices last year.

Vietsovpetro was set up by the state-owned Vietnam Oil and Gas Corporation and Russia’s Zarubezheft over two decades ago when it became the first international JV to explore for oil off the Vietnamese coast.

The JV has generated $33 billion in revenues, turning it into one of the country’s most successful joint investments, and also contributed $20 billion to the state coffers over the past 25 years.

Last year it contributed around $3.55 billion to the state budget a rise of $530 million over a year earlier.

The company has produced nearly 161 million tons of crude oil to date from Bach Ho (White Tiger), Rong (Dragon) and Dai Hung (Big Bear) fields, and has acquired 16.8 billion cu.m of liquid petroleum and other gases.

It makes up 80 percent of the oil and gas output of Vietnam which is the third largest producer and exporter in Southeast Asia.

The JV plans to expand operations in Vietnam and to other countries.

By Dong Ha

Vietnam stocks hit new high

Vietnam’s stock market index soared 3.51 percent to close at a new lifetime high on Friday as blue chips made all-around gains.
The VN-Index rose 28.57 points to 817.39, beating the record of 809 set on December 20, with 67 gainers and 20 losers.

Trading volume jumped by 2 million shares to 7.9 million shares. Total value rose to VND898 billion (US$55.5 million) from VND668 billion.

Hanoi-based infrastructure developer SJS became the first stock to cross the VND600,000 mark, hitting the 5 percent ceiling to close at VND604,000.

IT developer FPT also rose 5 percent to close at VND495,000.

Other heavyweights to gain 5 percent were REE which closed at VND326,290, GMD which closed at VND396,720, and VNM which closed at VND632,890.

Analysts attributed the sharp rise to positive news about the future of the market.

Nguyen Van Dung, director of the Hanoi Securities Trading Center, added that foreign portfolio inflows into the market had jumped because of optimistic forecasts on the country’s economy and stock exchange by international financers like Merrill Lynch and Credit Suisse.

But he warned that a steady market needed experienced investors who were not driven by the “herd instinct”.

Compiled by Dong Ha

Vietnam’s largest container port targets top 50 status globally

Ho Chi Minh City’s Cat Lai port, run by the Saigon New Port Company, has set a target to become one of the world’s 50 leading container ports by 2010.
To achieve the goal, the Saigon New Port Company and the Saigon Customs Bureau Region No1 have agreed on stronger collaboration to better serve importers and exporters.

After Vietnam entered the World Trade Organization (WTO), experts forecast that there would be a fresh wave of imports and exports at the nation’s ports.

Leaders of Cat Lai port, whose construction was started three years ago in District 2, are striving to satisfy the imminent boom in goods.

The company is investing in more advanced equipment so that by 2008 it can handle some two million TEU (twenty-foot-equivalent units) of cargo, roughly 28 million tons of commodities.

Cat Lai port currently transports some 60 percent of import/export containers in Ho Chi Minh City and over 40 percent in Vietnam.

Reported by Tran Hung – Translated by Tuong Nhi

BBC: Listing and trading additionally issued stocks

Name of Listed Company: BIEN HOA CONFECTIONERY CORPORATION (BIBICA)

Add: Bien Hoa 1 Industrial Zone, Dong Nai Province.

Tel: 84.61. 836576; Fax: 84.61.836950

BIBICA will list and trade the additionally issued stocks according to Decision No. 523/QD-UBCK dated October 25^th, 2006 issued by the Chairman of the State Securities Commission in HOSTC.

Stock symbol: BBC

Stock type: Common Stock

Par value: VND10,000

Registered volume to issue: 1,447,426 shares

Total of the mobilized capital: VND14,474,260,000

Additional listing date: October 25^th, 2006

Trading date: October30^th, 2006

Bonds worth $15 million sold in closed bidding

The Government and HCM City yesterday sold nearly US$15 million worth of bonds through a closed bidding process.

Of VND300 billion ($18.8 million) worth of State Treasury bonds offered for tender, only 63 per cent, worth VND190 billion ($11.88 million), were sold.

This Government bond issue marked the 26th issue of State Treasury bonds this year.

The HCM City Urban Development Fund sold out all of VND50 billion ($3.1 million) worth of bonds it offered for bid.

Both types of bonds have a face value of VND100,000 ($6.25) each, carry terms of five years, and pay interest annually of 8.2 per cent per year for the State Treasury bonds and 8.8 per cent per year for the municipal bonds. Both types of bonds will be listed for subsequent trading on both the Ha Noi and HCM City markets.

Government bonds sold earlier this year successfully mobilised trillions of dong to meet economic development and budgetary needs, a trend the State Treasury expected would continue, the Ministry of Finance announced.

The Ministry of Finance hoped to develop a deeper and more liquid bond market over the next few years.

Source: Vietnam News

Nation's stock market cools after record highs

The VN Index suffered decreases on the two final trading days this week, 31 points on Dec. 21 and another 34.73 points on Dec. 22, closing the week at 744.15, after reaching a six-year record high of 809.66.

"The index jumped from 633.05 at the end of November to the record high of over 809 on Dec. 20, which shows a hot market," said the centre's director Tran Dac Sinh.

"I'm afraid that a set-back like the one in April will occur again. The average P/E (price/earnings ratio) of listed companies is around 38 compared to 10 to 17 of other markets," said Sinh.

"That ratio means share prices are now too high over their fundamental value so the market may adjust at any time."

He said the positive performance of listed companies, the country's WTO membership and the approved PNTR by the US Congress and increased financial investment, were among the factors that pushed up the price.

The first IT blue-chip FPT made its debut on December 13 at 400,000 VND and rose every trading day to 510,000 VND on Dec. 20 and then declined to 461,000 VND on Dec. 22.

Sixty five companies suffered losses, three remained unchanged and seven enjoyed increases on Dec. 22.

Overview of informal stock market

The World Bank report on the realisation of rules and principles of corporate management in Vietnam was uploaded on the website of the State Securities Commission (SSC), providing an interesting picture about Vietnam’s informal stock market.

The WB specialists drew a rather comprehensive picture of the informal stock market, which is now beyond the management of Vietnam’s securities managers. They held that the non-regulated informal market has not been affected by the establishment of the Ho Chi Minh City Securities Transaction Centre (STC) in 2000.

More active than formal market

Primarily, transacted shares on the market are of equitised SOEs and stock companies of private businesses and investment organisations. They have not been regulated by any securities management bodies, namely the State Securities Commission and Ho Chi Minh City STC.

By December 22, 131 out of nearly 6,700 stock companies were listed on STCs in Ho Chi Minh City and Hanoi. But shares of not-yet-listed companies have been traded on the informal market, which is estimated to be three to six times higher than that on STCs. The daily transacted value is three times higher than that of the official market.

Non-licenced brokers

The unofficial market is an informal network of licenced and non-licenced intermediaries dealing with securities transactions which have not been listed at the Ho Chi Minh City STC. There are two groups of intermediaries on the informal market. One group includes independent and non-licenced go-betweens, about 60 to 80 in Ho Chi Minh City. The majority of the group is financial institutions consisting of licenced securities companies. The other group comprises licenced securities companies which work illegally with non-listed securities and are allowed to trade only listed securities on the official market.

The transactions are conducted with some kinds of documents. The payments in cash are done within a few days of transactions.

High risk

Informal transactions are not protected by law or any legal organisations but depend largely on the prestige of non-licenced intermediaries.

The informal market is unable to protect investors due to its ineffective, unfair, and obscure market mechanism, not like that of STCs. Regulations of stock markets are not applied to non-organised STCs. So the SSC is powerless in informal market management.

The prices of shares are doubtful due to the shortage of report systems and transparent transaction information. The financial and professional capabilities of brokers are not under control and the information on published shares is not identified. Hence, informal transactions are rather ineffective and small scale; however, they still make up the larger part of all transactions throughout the country.

According to the report, another factor preventing companies from listing on STCs are requests to provide transparent listing information. Maintaining vague capital to avoid tax is a desire of numerous companies. It is difficult to motivate them to join the official market unless corporate standards are clear. Moreover, higher listing criteria are necessary to attract investors.

Management, how?

A currently being deliberated measure is raising and applying corporate transparency criteria to all companies, rather than to only listed companies at the moment. This is to create a fair playground for both non-listed and listed companies. This will also help to improve attraction to listing on STCs which will not be seen as a large burden on enterprises. The 2006 Securities Law also regulates all public companies.
Another practical tool in the management of off-STCs transactions is the setting up systems of concentrated registration and private securities brokerage registration.

Ten new companies list shares on Ha Noi bourse

More than 109.3 million shares from 10 companies were newly listed on the Ha Noi stock exchange on Dec. 27, increasing the exchange's overall value up to 10.8 trillion VND (677 million USD).

Seventy-seven companies and one commercial bank are now listed on the exchange.

The newest additions are Petrolimex Petrochemical (PLC), HCM City Book and School Equipment (STC), Song Da Investment and Development (SIC), Phu Thinh-Nha Be Garment (NPS), Song Da 5 (SD5), Song Da 7 (SD7), H.A.I. Agricultural Pharmaceutical (HAI), Nui Beo Coal (NBC), Minh Phu Seafood (MPC) and Ha Noi Milk (HNM).

Four additional companies also got on board the HCM City Securities Trading Centre on Dec. 27, bringing the total number of listed firms to 94.

The four companies are Hoa Binh Construction and Real Estate (HBC), Khanh Hoa Power (KHP), Lu gia Mechanical and Engineering (LGC) and Viettronic Tan Binh (VTB).

The HCM City centre will receive on Dec. 28 six new arrivals, the Saigon Fishing Net (SFN), My Chau Packaging (MCP), the food company Safoco (SAF), Petrolimex Transport (PJT), Binh Dinh Mining (BMC) and the investment and trading DIC companies.

World Bank wants careful equitisation of power plants

Although the equitisation of power plants has helped develop the national grid and meet soaring demand, the process would likely encounter roadblocks, the World Bank warned recently.

Shares of equitised power companies listed on the bourse in HCM City and Ha Noi, including Vinh Son-Song Hinh, Thac Ba, Na Loi and Nam Mu, have generated interest from foreign and domestic investors.

However, according to the World Bank’s report on Viet Nam’s electricity industry in 2006, the eq

uitisation process of power plants should be carefully considered. This is especially true in remote areas where companies are less profitable because they are forced to offer power at below-market rates, the bank said.

At present, the State holds a majority stake in several large electricity firms in a bid to stabilise supply nation-wide. Yet industry plans to shrink the State’s stake to less than 51 per cent. World Bank experts warned authorities in rural and remote areas should examine that policy closely.

For instance, the equitised Khanh Hoa power company has had difficulty developing an electricity network in remote areas and luring investors. The State should subsidise enterprises in these areas, said industry experts.

The nation’s developing power industry faces other challenges, according to the report. In other countries, firms usually target strategic and powerful shareholders to finance upgrades and implement state-of-art management methods.

Vietnamese electricity companies saw a shortage of strategic shareholders, however, the report stated. Most shareholders are small investors, looking for immediate profits rather than long-term returns.

Source: Vietnam News

Six More Businesses List Shares on Ho Chi Minh City Bourse

(SGGP-Daily) Six businesses yesterday made their first public offering on the Ho Chi Minh City Securities Trading Centre (HSTC), increasing the exchange's overall value up to VND 14.5 trillion (over US$900 million).



The businesses included the Binh Dinh Minerals Joint-Stock Company (with the share code BMC), the DIC Investment & Trading Joint-Stock Company (DIC), the Petrolimex Joint Stock Tanker Company (PJT), the Safoco Food and Foodstuff Joint Stock Company (SAF) and the SaiGon Fishing Net Joint Stock Company (SFN).

As many as 100 companies and two funds are now listed on the Ho Chi Minh City Securities Trading Centre.

The VN Index yesterday lost 0.82 point to close at 753.81 points with the total trading value reaching VND511.7 billion, a slightly decrease of 20% over the previous session.