SSI’s officially launched its direct connection to Bloomberg & Reuters

Headquarter of SSI in Ho Chi Minh City.

▪ DUY CUONG
15:09 (GMT+7) - Monday, June 18, 2012

After a period of developing, testing and passing all the required examination procedure, Saigon Securities Inc

After a period of developing, testing and passing all the required examination procedure, Saigon Securities Inc.

(SSI) has become one of the first securities firm in Vietnam's market that successfully put into operation the system directly connected to both networks Bloomberg & Reuters.

From now on, with this new system, the international institutional clients, who are connected to those two networks, can place orders directly to SSI. In addition, clients can proactively self-destruction/repair command on the system independently from brokers as before. Client's orders will be automatically ensure compliance with management rules and trading post on the trading floor with minimal intervention of brokers, ensuring speed, efficiency and risk reduction. Matching results will be sent to the clients real time and fully automated, thereby supporting clients manage orders more efficiently.

That new system with many new features will provide clients with more ways to organize transactions fast, and automatically. With the new system, SSI has once again broadened its advantages and confirmed its leading position in the institutional securities brokerage sector.

vnEconomy

Steady going

Mr Bui Quang Vinh, Minister of Planning and Investment.

▪ DOAN TRAN
16:00 (GMT+7) - Wednesday, March 21, 2012

Minister of Planning and Investment Bui Quang Vinh spoke about Vietnam's economic performance in 2011

Minister of Planning and Investment Bui Quang Vinh spoke about Vietnam's economic performance in 2011.

Could you tell us about Vietnam's socio-economic performance in 2011?

In the context of the economic difficulties in Vietnam and around the world, there were encouraging results from implementing socio-economic tasks and the State budget in 2011, including tasks specified in the government's Decision No 02/NQ-CP and Resolution No 11/NQ-CP.

The pace of inflation by the end of the year had slowed down remarkably compared with the beginning of the year. Revenue collection was high and far exceeded the projected target. The budget deficit fell to below the target set by the National Assembly (NA).

Public investment was strictly managed and cut, to focus on selected projects with high levels of efficiency. Exports exceeded targets by as much as three-fold. GDP growth was estimated at 5.9 per cent, which can be regarded as high in the context of a greater focus on curbing inflation.

The agriculture sector recorded sound results and a record-high rice output, ensuring food security and social stability in rural areas and throughout the country and increasing exports, bringing in hard currency. Industrial production increased despite many difficulties.

Social welfare was ensured, many more jobs were created, and the poverty elimination scheme was relatively successful, helping to improve material lives.

Apart from these achievements there were also some weaknesses and shortcomings in the economy that need to be overcome, such as a number of social and economic targets for 2011 not being met. Macro-economic stability remained a problem, and inflation and interest rates remained rather high.

Industrial production and business activities faced a range of difficulties. Due to large inventories, especially at the end of the third quarter and the beginning of the fourth quarter, many businesses incurred major losses and some were dissolved or went bankrupt. Reform of the growth model and the restructure of the economy remained slow.

What should be done to overcome these weaknesses and shortcomings?

I think that these weaknesses and shortcomings stem from both subjective and objective factors, from unstable economic factors and public debt in a number countries around the world. But I think they mainly come from subjective factors: an inefficient growth model and a need for economic restructuring.

In order to improve the situation we should enhance the successes that we have achieved and overcome our weaknesses, especially with specific measures to curb inflation, ensure macro-economic stability and social welfare, so as to achieve sustainable economic development in 2012.

Some analysts have said that for quite a long time Vietnam has been too eager to attract foreign direct investment (FDI) without serious selection criteria. Do you think we should now review the status of FDI attraction in the past and that MPI should exercise stricter control?

I think that, like many things, FDI attraction has both a positive and a negative side. The Prime Minister has instructed the Ministry to conduct a comprehensive review of the status of the implementation of FDI over the last 20 years. The positive side will be improved and negative side overcome.

There was a particular phenomenon relating to FDI attraction in recent years, where quite a few foreign investors did not bring in capital but mobilised it in Vietnam instead. They failed to use this capital effectively, leading to project cancellation and even bankruptcy. There are cases in which foreign investors incurred major losses and accumulated huge debts then left the country, impacting on credit institutions and Vietnam's investment environment.

In the face of such a situation we have suggested to city and provincial people's committees that they instruct their planning and investment boards, industrial park management authorities, hi-tech and economic management authorities, and other relevant agencies to review and supervise FDI projects that have obtained loans from Vietnamese commercial banks.

At the same time, violations of the laws or failure to realise projects deserve heavy penalties. Commercial banks should be timely informed about the inability of foreign investors to repay debts, so that they can take measures to retrieve their money. Transfer pricing activities by foreign enterprises must be better controlled and supervised more strictly by relevant agencies.

What is MPI's orientation for FDI attraction in the coming years, in order to strictly supervise FDI inflows?

Looking at the FDI inflow into the country over the last ten years we can see that in 2000 it started to recover from the negative impact of the financial and currency crisis in Asia and increased in 2005 by 45.1 to 50.8 per cent over 2004.

Total registered capital during the 2001-2005 period was $20.8 billion. From 2006 to 2008 there was a sudden rise of FDI inflows into the country, with total registered capital of $12 billion in 2006, $21.3 billion in 2007 and $71.7 billion in 2008. FDI inflows in 2008 were more than three times higher than in 2007.

In 2009 and 2010, despite the impact of the global financial crisis and economic recession and the post-crisis outcome, registered FDI capital was estimated at $23.1 billion in 2009 and $18.6 billion in 2010.

As I mentioned earlier, besides the achievements in terms of increasing project numbers and registered capital in recent years, some side-effects have also been exposed. The period of "rolling out the red carpet" to attract FDI at any cost has finished.

Future FDI attraction will be focused on projects that bring about investment efficiency and help restructure the economy, improve growth quality and raise the competitive edge of the economy.

To be more specific, Vietnam will focus on attracting FDI projects relating to transport infrastructure, agriculture, education, public health, hi-tech and advanced technologies, and environmentally-friendly and green technologies. Vietnam will not welcome projects with low technology or high energy consumption, or projects that cause environmental and ecological pollution.

vnEconomy

Uncertainty remains

Photo: Viet Tuan.

▪ THU TRANG
11:23 (GMT+7) - Friday, March 23, 2012

Business confidence and outlook among foreign business in Vietnam has stabilised and concerns about the existing business situation appear to have eased slightly

Business confidence and outlook among foreign business in Vietnam has stabilised and concerns about the existing business situation appear to have eased slightly.

The business environment in Vietnam during 2011 was challenging in many sectors because of the macro-economic situation, primarily high inflation and high interest rates, which had an adverse impact on many business. It was not all doom and gloom, however, and many export sectors recorded significant growth both in volume and value that helped to reduce the country's trade deficit.

Positive outlook

According to a recent report from HSBC, Vietnam's growth momentum has been impressive given fourth quarter GDP growth of 6.1 per cent year-on-year due to robust exports and higher domestic demand. GDP growth was 5.9 per cent for 2011 as a whole and HSBC expects it to be 5.7 per cent in 2012 while the government's target is 6 to 6.5 per cent.

Early this year EuroCham released its Business Climate Index Vietnam, conducted in January, which increased four points to 56 with 40 per cent of 240 respondents being active in the services industry, about a quarter in each manufacturing and trading, and the remainder in other activities.

Compared to its previous survey, there was little change in respondents assessing their current business situation as "neutral", down slightly from the 45 per cent in the last survey. A "good" or "excellent" view of their current business situation was held by 36 per cent or respondents, up slightly from 32 per cent last quarter but still much lower than the 64 per cent who were content with their current business situation this time last year. The number of businesses holding a negative view on their current situation has remained nearly unchanged since last quarter, but at 26 per cent it is 14 per cent points higher than a year ago.

Over recent years Vietnam has been selected to be part of the focus of many MNCs because of some key factors.

First of all, it is one of the fastest growing economies in Southeast Asia, with an average of 8 per cent over the last several years.

Secondly, it is currently undergoing rising industrialisation, inspired by huge investment flows into building infrastructure and the modernisation process in its cities.

Thirdly, having rich natural resources, especially oil and gas, as well as a young workforce, there will be a pressing need for energy and energy efficiency technologies. Additionally, the policies of economic reform since 1986 have tremendously changed the business environment, creating more opportunities for private economic sectors as well as supporting foreign investment.

The commitment of the government to restructuring the banking sector and SOEs will definitely have a positive impact on the business environment from 2012 onwards because it will create a level playing field in many sectors.

The Year of the Dragon also brings slight optimism in business outlook, with 39 per cent believing "good" or "excellent". This is a 12 per cent increase over last quarter, but is put into perspective by the 72 per cent of respondents that had a positive business outlook this time last year. "EuroCham remains bullish for Vietnam and believes that the outlook for the medium and long term is excellent," said EuroCham Chairman Alain Cany. "We believe that if Vietnam successfully tackles the short-term issues and concentrates on the big topics, it will be successful in growing into an industrialised country by 2020."

Challenges remain

The business community believed it was a combination of slow progress on many of last year's issues coupled with some new issues that are eroding confidence in Vietnam's business environment. For example, high rates of inflation coupled with difficult access to credit, lack of adequate infrastructure and administrative burdens continue.

What is worrying is Vietnam's struggle with maintaining price stability this year. The government has taken much-needed steps to tighten fiscal and monetary policy. While potential electricity hikes and regional food supply shocks will likely stoke inflationary pressures, experts at HSBC expect inflation to reach single digits by the end of 2012 due to a high base effect. "As such, the State Bank of Vietnam is likely to decrease the interest rate in the first quarter 2012 from 14 per cent to 13 per cent and thereafter to 9 per cent by end of 2012," the HSBC report said.

Meanwhile, 53 per cent of European companies in Vietnam expect inflation to have a significant impact on their business and 36 per cent expect to be impacted in some way. Eight per cent stated that inflation was actually threatening their business in the country.

According to Mr Ken Atkinson, Managing Partner at Grant Thornton Vietnam, the most important factors that will help improve the business environment are a continued fall in inflation followed by a fall in domestic interest rates and exchange rate stability. "In addition, there needs to be an improvement in transparency, a reduction in administrative bureaucracy and continued investment in infrastructure with private sector participation through PPP," he added.

Furthermore, corruption is still affecting many investors in Vietnam. When asked whether corruption had ultimately reduced or delayed their investment in Vietnam, opinions were split roughly in thirds. About 39 per cent stated a slight impact, and 25 per cent said corruption had not affected them at all, while 34 per cent said that corruption had "significantly" reduced or delayed their investment in Vietnam. This is an increase from 28 per cent last quarter and indicates that corruption is still a serious problem and features prominently in investors' considerations about the country.

Mr Cany said that the slight increase in the EuroCham Business Climate Index to 56 points shows a halt in the downward trend in business confidence he saw in 2011. But business confidence is still far below 2010's level. "This shows that uncertainty among investors remains," he said. "Key structural issues have not been resolved, such as the equitisation of State-owned enterprises and stabilising the macroeconomic environment, to give two examples."

vnEconomy

Green innovation

Mr Shinichi Wakita, General Director of Panasonic Vietnam.

▪ VET
15:17 (GMT+7) - Tuesday, November 15, 2011

Mr Shinichi Wakita, General Director of Panasonic Vietnam, tells why it continues with its expansion plans in Vietnam at this time

Mr Shinichi Wakita, General Director of Panasonic Vietnam, tells why it continues with its expansion plans in Vietnam at this time.
What are Panasonic's plans in Vietnam for the years to come?
As part of our global policy and strategy, in Quarter III, 2011, Panasonic has made several strategic steps into Vietnam to expand its investment in this market with rich potential. First of all, Panasonic plans to build a new electronic components plant at the Thang Long Industrial Park in Hanoi to introduce new ALIVH multi-layer resin boards to meet the rapidly growing smart phone demand. The plant will begin production in August 2012 and have a capacity of 3.5 million units per month.

We have also decided to expand our refrigerator assembly line at the Thang Long Industrial Park, which was built in 2003. As scheduled, by 2015 production is expected to be twice the volume of 2011 (400,000 products per year, reaching 800,000 products per year), with an emphasis on creating local components and assembling high quality Panasonic refrigerators to meet local demand and for export.
Next year Panasonic will open its new washing machine factory at the Thang Long Industrial Park 2 in Hung Yen province. With large-scale production, the target is 700,000 units per year by 2015.
After that, a home appliances research and development centre will be opened in the same location to develop suitable products for Vietnamese consumers. After coming into operation, the factory and R&D centre are expected to provide over 1,000 jobs to local people.
This new phase of expansion reaffirms the long-term commitment of the Global Panasonic Group to Vietnam, aiming to become the leading brand name in the two abovementioned sections and the leading brand name in electronics and home appliances in Vietnam, with annual double-digit growth from 2011-2015. Initially, the target for sales in 2011 is $1 billion.
How much investment capital will be poured into the expansion?
We will invest an additional $84 million over a couple of years in Vietnam, bringing our total investment capital in the emerging market to $224 million.
Many Japanese firms have focused on production in Vietnam but the new trend is to open retail outlets to sell products made elsewhere. So why does Panasonic continue to expand its investment in Vietnam at this time?
The expansion of the retail market in Vietnam provides opportunities for manufacturers as well. We believe it is not enough to satisfy the needs of the market by simply selling imported products. It is necessary to research market needs and meet demand, as well as to enhance our brand value in Vietnam.
With the new expansion phase, Panasonic aims to become the leading brand name in electronics and home appliances.
What challenges face Panasonic on the way to reaching this target?
The challenges facing Panasonic include becoming a "green innovation" company. We not only produce and sell electronics and home appliances; we also focus on eco-products to protect the environment and bring a green lifestyle to each house and building. We believe that this will help Panasonic become the leading brand name.
What are the important factors that Japanese investors like Panasonic consider when deciding to invest in Vietnam?
It is for the Vietnamese Government to focus on more industrial-oriented policies to be competitive globally. In order to develop the country, the foundation for competitive industrial infrastructure could lead to further investment in the manufacturing industry, and strengthen the competitiveness of human resources and industrialisation.
However, it has been very disappointing for us that recent policies for the manufacturing industry have removed almost of incentives. As a result, many enterprises of all sizes are becoming reluctant to invest in Vietnam. We believe that not only are incentives important but also effective custom procedures, infrastructure such as electricity supply and improvements in logistics within the industrial infrastructure environment.
What concerns do you have for Panasonic's investment in Vietnam?
What concerns us is that old-fashioned and complicated regulations in foreign exchange and licensing have seen few improvements, and there are few incentives for manufacturing investment in high-tech products, although we do try to invest further to contribute to the development of the country and the industry.

vnEconomy

A new highway, shorten the travel time from Hanoi – Hai Phong - to Quang Ninh

This highway will be from Hai Phong, cut through hai long bay city and ends at the Northern gate to China - Hoa Nam.

▪ THU HUYEN
16:12 (GMT+7) - Friday, June 22, 2012

A new highway is currently being constructed by 2 local goverment to shorten the travelling distance from Hanoi to Hai Long Bay to only 125km

A new highway is currently being constructed by 2 local goverment to shorten the travelling distance from Hanoi to Hai Long Bay to only 125km. This will mean that in 2 to 3 years time, it will only take 1.5hrs to travel between 2 cities.

The highway is being considered by the government as one of the most important infrastructure work in the next few years. With the strong support of the government and funding for the highway already obtained, the highway is expected to complete and open as planned. With the completion of this highway, Ha Long Bay will not only be a popular tourism location but also an attractive weekend getaway for the Hanoi people.

The most interesting stretch of highway will be from Hai Phong to Ha Long bay, its length of only 25km will demographically linked the population in these cities into 1 as it will only take 25 mins to go from Hai Phong to Ha Long. The airport at Hai Phong will also serve as a big boost to the tourism numbers in Hai Long as tourist can now fly direct to Hai Phong and take a 25 mins drive to the Hai Long Bay Tourism area.

This 25 km highway not only will serve to increase dramatically the tourism number to Ha Long, it is also consider an important trade route between Southern China and Vietnam. This highway will be from Hai Phong, cut through hai long bay city and ends at the Northern gate to China - Hoa Nam.

vnEconomy

RMIT Vietnam revamps its MBA for “busy executives”

A four-day "intensive format", supported then by online learning and out-of-session consultations with academics.

▪ LE PHUONG
11:19 (GMT+7) - Tuesday, March 13, 2012

RMIT International University Vietnam has started teaching an innovative new-style MBA program for business executives at its Saigon South campus

RMIT International University Vietnam has started teaching an innovative new-style MBA program for business executives at its Saigon South campus.

Starting this month, subjects are being presented in two parts: a four-day "intensive format", supported then by online learning and out-of-session consultations with academics.

The new approach is designed to offer executives more flexibility in scheduling their participation, making it easier for them to pursue MBA Executive studies and remain in high level jobs.

According to Melbourne-based Professor Amalia Di Iorio, Director of RMIT's MBA programs, the new intensive delivery method not only benefits Vietnamese students but also accommodates managers from neighbouring countries such as Thailand and Singapore because they can conveniently fly to Vietnam for weekend classes. Professor Di Iorio herself was in Ho Chi Minh City last weekend for classes.

"The fact that I'm at Saigon South campus lecturing this weekend validates the unique flexibility of the program and signals upcoming visits of many other leading academics from overseas who will provide our students with the most up-to-date knowledge and insights on real-world business issues."

Professor Di Iorio said RMIT Vietnam's revamped MBA Executive program will encourage learners to engage more in sharing their knowledge and experience as well as expanding their professional networks amongst high performing international business executives.

The new approach by RMIT aims to "enrich and unify" its MBA Executive offers including the programs it provides in Melbourne, Australia, and online through the Open Universities Australia (OUA) website. In Melbourne, a 12-week semester format is followed, whilst Vietnam is moving to the new 'intensive learning' format and Open Universities Australia is offering content online.

One of the students who is already benefiting from the new approach, Ahmed Hassan, a sales manager based in Dubai, praises the concept.

"I decided to fly to Vietnam for the introductory course, and it has been a positive experience as I had the chance to meet a lot of talented and experienced executives who I will definitely be in touch with in the future. I'm planning to complete my MBA remotely, but for challenging courses, I might fly to Vietnam again to receive face-to-face lectures and guidance from my professors. This is the flexibility that busy managers like me are looking for."

Further media information:

Ms Tran Huynh Nha Tran, Communications Manager, RMIT International University Vietnam
Phone: (84.8) 3776 1345 Email: tran.tran@rmit.edu.vn

vnEconomy

SSI’s officially launched its direct connection to Bloomberg & Reuters

Headquarter of SSI in Ho Chi Minh City.

▪ DUY CUONG
15:09 (GMT+7) - Monday, June 18, 2012

After a period of developing, testing and passing all the required examination procedure, Saigon Securities Inc

After a period of developing, testing and passing all the required examination procedure, Saigon Securities Inc.

(SSI) has become one of the first securities firm in Vietnam's market that successfully put into operation the system directly connected to both networks Bloomberg & Reuters.

From now on, with this new system, the international institutional clients, who are connected to those two networks, can place orders directly to SSI. In addition, clients can proactively self-destruction/repair command on the system independently from brokers as before. Client's orders will be automatically ensure compliance with management rules and trading post on the trading floor with minimal intervention of brokers, ensuring speed, efficiency and risk reduction. Matching results will be sent to the clients real time and fully automated, thereby supporting clients manage orders more efficiently.

That new system with many new features will provide clients with more ways to organize transactions fast, and automatically. With the new system, SSI has once again broadened its advantages and confirmed its leading position in the institutional securities brokerage sector.

vnEconomy

Steady going

Mr Bui Quang Vinh, Minister of Planning and Investment.

▪ DOAN TRAN
16:00 (GMT+7) - Wednesday, March 21, 2012

Minister of Planning and Investment Bui Quang Vinh spoke about Vietnam's economic performance in 2011

Minister of Planning and Investment Bui Quang Vinh spoke about Vietnam's economic performance in 2011.

Could you tell us about Vietnam's socio-economic performance in 2011?

In the context of the economic difficulties in Vietnam and around the world, there were encouraging results from implementing socio-economic tasks and the State budget in 2011, including tasks specified in the government's Decision No 02/NQ-CP and Resolution No 11/NQ-CP.

The pace of inflation by the end of the year had slowed down remarkably compared with the beginning of the year. Revenue collection was high and far exceeded the projected target. The budget deficit fell to below the target set by the National Assembly (NA).

Public investment was strictly managed and cut, to focus on selected projects with high levels of efficiency. Exports exceeded targets by as much as three-fold. GDP growth was estimated at 5.9 per cent, which can be regarded as high in the context of a greater focus on curbing inflation.

The agriculture sector recorded sound results and a record-high rice output, ensuring food security and social stability in rural areas and throughout the country and increasing exports, bringing in hard currency. Industrial production increased despite many difficulties.

Social welfare was ensured, many more jobs were created, and the poverty elimination scheme was relatively successful, helping to improve material lives.

Apart from these achievements there were also some weaknesses and shortcomings in the economy that need to be overcome, such as a number of social and economic targets for 2011 not being met. Macro-economic stability remained a problem, and inflation and interest rates remained rather high.

Industrial production and business activities faced a range of difficulties. Due to large inventories, especially at the end of the third quarter and the beginning of the fourth quarter, many businesses incurred major losses and some were dissolved or went bankrupt. Reform of the growth model and the restructure of the economy remained slow.

What should be done to overcome these weaknesses and shortcomings?

I think that these weaknesses and shortcomings stem from both subjective and objective factors, from unstable economic factors and public debt in a number countries around the world. But I think they mainly come from subjective factors: an inefficient growth model and a need for economic restructuring.

In order to improve the situation we should enhance the successes that we have achieved and overcome our weaknesses, especially with specific measures to curb inflation, ensure macro-economic stability and social welfare, so as to achieve sustainable economic development in 2012.

Some analysts have said that for quite a long time Vietnam has been too eager to attract foreign direct investment (FDI) without serious selection criteria. Do you think we should now review the status of FDI attraction in the past and that MPI should exercise stricter control?

I think that, like many things, FDI attraction has both a positive and a negative side. The Prime Minister has instructed the Ministry to conduct a comprehensive review of the status of the implementation of FDI over the last 20 years. The positive side will be improved and negative side overcome.

There was a particular phenomenon relating to FDI attraction in recent years, where quite a few foreign investors did not bring in capital but mobilised it in Vietnam instead. They failed to use this capital effectively, leading to project cancellation and even bankruptcy. There are cases in which foreign investors incurred major losses and accumulated huge debts then left the country, impacting on credit institutions and Vietnam's investment environment.

In the face of such a situation we have suggested to city and provincial people's committees that they instruct their planning and investment boards, industrial park management authorities, hi-tech and economic management authorities, and other relevant agencies to review and supervise FDI projects that have obtained loans from Vietnamese commercial banks.

At the same time, violations of the laws or failure to realise projects deserve heavy penalties. Commercial banks should be timely informed about the inability of foreign investors to repay debts, so that they can take measures to retrieve their money. Transfer pricing activities by foreign enterprises must be better controlled and supervised more strictly by relevant agencies.

What is MPI's orientation for FDI attraction in the coming years, in order to strictly supervise FDI inflows?

Looking at the FDI inflow into the country over the last ten years we can see that in 2000 it started to recover from the negative impact of the financial and currency crisis in Asia and increased in 2005 by 45.1 to 50.8 per cent over 2004.

Total registered capital during the 2001-2005 period was $20.8 billion. From 2006 to 2008 there was a sudden rise of FDI inflows into the country, with total registered capital of $12 billion in 2006, $21.3 billion in 2007 and $71.7 billion in 2008. FDI inflows in 2008 were more than three times higher than in 2007.

In 2009 and 2010, despite the impact of the global financial crisis and economic recession and the post-crisis outcome, registered FDI capital was estimated at $23.1 billion in 2009 and $18.6 billion in 2010.

As I mentioned earlier, besides the achievements in terms of increasing project numbers and registered capital in recent years, some side-effects have also been exposed. The period of "rolling out the red carpet" to attract FDI at any cost has finished.

Future FDI attraction will be focused on projects that bring about investment efficiency and help restructure the economy, improve growth quality and raise the competitive edge of the economy.

To be more specific, Vietnam will focus on attracting FDI projects relating to transport infrastructure, agriculture, education, public health, hi-tech and advanced technologies, and environmentally-friendly and green technologies. Vietnam will not welcome projects with low technology or high energy consumption, or projects that cause environmental and ecological pollution.

vnEconomy

Uncertainty remains

Photo: Viet Tuan.

▪ THU TRANG
11:23 (GMT+7) - Friday, March 23, 2012

Business confidence and outlook among foreign business in Vietnam has stabilised and concerns about the existing business situation appear to have eased slightly

Business confidence and outlook among foreign business in Vietnam has stabilised and concerns about the existing business situation appear to have eased slightly.

The business environment in Vietnam during 2011 was challenging in many sectors because of the macro-economic situation, primarily high inflation and high interest rates, which had an adverse impact on many business. It was not all doom and gloom, however, and many export sectors recorded significant growth both in volume and value that helped to reduce the country's trade deficit.

Positive outlook

According to a recent report from HSBC, Vietnam's growth momentum has been impressive given fourth quarter GDP growth of 6.1 per cent year-on-year due to robust exports and higher domestic demand. GDP growth was 5.9 per cent for 2011 as a whole and HSBC expects it to be 5.7 per cent in 2012 while the government's target is 6 to 6.5 per cent.

Early this year EuroCham released its Business Climate Index Vietnam, conducted in January, which increased four points to 56 with 40 per cent of 240 respondents being active in the services industry, about a quarter in each manufacturing and trading, and the remainder in other activities.

Compared to its previous survey, there was little change in respondents assessing their current business situation as "neutral", down slightly from the 45 per cent in the last survey. A "good" or "excellent" view of their current business situation was held by 36 per cent or respondents, up slightly from 32 per cent last quarter but still much lower than the 64 per cent who were content with their current business situation this time last year. The number of businesses holding a negative view on their current situation has remained nearly unchanged since last quarter, but at 26 per cent it is 14 per cent points higher than a year ago.

Over recent years Vietnam has been selected to be part of the focus of many MNCs because of some key factors.

First of all, it is one of the fastest growing economies in Southeast Asia, with an average of 8 per cent over the last several years.

Secondly, it is currently undergoing rising industrialisation, inspired by huge investment flows into building infrastructure and the modernisation process in its cities.

Thirdly, having rich natural resources, especially oil and gas, as well as a young workforce, there will be a pressing need for energy and energy efficiency technologies. Additionally, the policies of economic reform since 1986 have tremendously changed the business environment, creating more opportunities for private economic sectors as well as supporting foreign investment.

The commitment of the government to restructuring the banking sector and SOEs will definitely have a positive impact on the business environment from 2012 onwards because it will create a level playing field in many sectors.

The Year of the Dragon also brings slight optimism in business outlook, with 39 per cent believing "good" or "excellent". This is a 12 per cent increase over last quarter, but is put into perspective by the 72 per cent of respondents that had a positive business outlook this time last year. "EuroCham remains bullish for Vietnam and believes that the outlook for the medium and long term is excellent," said EuroCham Chairman Alain Cany. "We believe that if Vietnam successfully tackles the short-term issues and concentrates on the big topics, it will be successful in growing into an industrialised country by 2020."

Challenges remain

The business community believed it was a combination of slow progress on many of last year's issues coupled with some new issues that are eroding confidence in Vietnam's business environment. For example, high rates of inflation coupled with difficult access to credit, lack of adequate infrastructure and administrative burdens continue.

What is worrying is Vietnam's struggle with maintaining price stability this year. The government has taken much-needed steps to tighten fiscal and monetary policy. While potential electricity hikes and regional food supply shocks will likely stoke inflationary pressures, experts at HSBC expect inflation to reach single digits by the end of 2012 due to a high base effect. "As such, the State Bank of Vietnam is likely to decrease the interest rate in the first quarter 2012 from 14 per cent to 13 per cent and thereafter to 9 per cent by end of 2012," the HSBC report said.

Meanwhile, 53 per cent of European companies in Vietnam expect inflation to have a significant impact on their business and 36 per cent expect to be impacted in some way. Eight per cent stated that inflation was actually threatening their business in the country.

According to Mr Ken Atkinson, Managing Partner at Grant Thornton Vietnam, the most important factors that will help improve the business environment are a continued fall in inflation followed by a fall in domestic interest rates and exchange rate stability. "In addition, there needs to be an improvement in transparency, a reduction in administrative bureaucracy and continued investment in infrastructure with private sector participation through PPP," he added.

Furthermore, corruption is still affecting many investors in Vietnam. When asked whether corruption had ultimately reduced or delayed their investment in Vietnam, opinions were split roughly in thirds. About 39 per cent stated a slight impact, and 25 per cent said corruption had not affected them at all, while 34 per cent said that corruption had "significantly" reduced or delayed their investment in Vietnam. This is an increase from 28 per cent last quarter and indicates that corruption is still a serious problem and features prominently in investors' considerations about the country.

Mr Cany said that the slight increase in the EuroCham Business Climate Index to 56 points shows a halt in the downward trend in business confidence he saw in 2011. But business confidence is still far below 2010's level. "This shows that uncertainty among investors remains," he said. "Key structural issues have not been resolved, such as the equitisation of State-owned enterprises and stabilising the macroeconomic environment, to give two examples."

vnEconomy

Green innovation

Mr Shinichi Wakita, General Director of Panasonic Vietnam.

▪ VET
15:17 (GMT+7) - Tuesday, November 15, 2011

Mr Shinichi Wakita, General Director of Panasonic Vietnam, tells why it continues with its expansion plans in Vietnam at this time

Mr Shinichi Wakita, General Director of Panasonic Vietnam, tells why it continues with its expansion plans in Vietnam at this time.
What are Panasonic's plans in Vietnam for the years to come?
As part of our global policy and strategy, in Quarter III, 2011, Panasonic has made several strategic steps into Vietnam to expand its investment in this market with rich potential. First of all, Panasonic plans to build a new electronic components plant at the Thang Long Industrial Park in Hanoi to introduce new ALIVH multi-layer resin boards to meet the rapidly growing smart phone demand. The plant will begin production in August 2012 and have a capacity of 3.5 million units per month.

We have also decided to expand our refrigerator assembly line at the Thang Long Industrial Park, which was built in 2003. As scheduled, by 2015 production is expected to be twice the volume of 2011 (400,000 products per year, reaching 800,000 products per year), with an emphasis on creating local components and assembling high quality Panasonic refrigerators to meet local demand and for export.
Next year Panasonic will open its new washing machine factory at the Thang Long Industrial Park 2 in Hung Yen province. With large-scale production, the target is 700,000 units per year by 2015.
After that, a home appliances research and development centre will be opened in the same location to develop suitable products for Vietnamese consumers. After coming into operation, the factory and R&D centre are expected to provide over 1,000 jobs to local people.
This new phase of expansion reaffirms the long-term commitment of the Global Panasonic Group to Vietnam, aiming to become the leading brand name in the two abovementioned sections and the leading brand name in electronics and home appliances in Vietnam, with annual double-digit growth from 2011-2015. Initially, the target for sales in 2011 is $1 billion.
How much investment capital will be poured into the expansion?
We will invest an additional $84 million over a couple of years in Vietnam, bringing our total investment capital in the emerging market to $224 million.
Many Japanese firms have focused on production in Vietnam but the new trend is to open retail outlets to sell products made elsewhere. So why does Panasonic continue to expand its investment in Vietnam at this time?
The expansion of the retail market in Vietnam provides opportunities for manufacturers as well. We believe it is not enough to satisfy the needs of the market by simply selling imported products. It is necessary to research market needs and meet demand, as well as to enhance our brand value in Vietnam.
With the new expansion phase, Panasonic aims to become the leading brand name in electronics and home appliances.
What challenges face Panasonic on the way to reaching this target?
The challenges facing Panasonic include becoming a "green innovation" company. We not only produce and sell electronics and home appliances; we also focus on eco-products to protect the environment and bring a green lifestyle to each house and building. We believe that this will help Panasonic become the leading brand name.
What are the important factors that Japanese investors like Panasonic consider when deciding to invest in Vietnam?
It is for the Vietnamese Government to focus on more industrial-oriented policies to be competitive globally. In order to develop the country, the foundation for competitive industrial infrastructure could lead to further investment in the manufacturing industry, and strengthen the competitiveness of human resources and industrialisation.
However, it has been very disappointing for us that recent policies for the manufacturing industry have removed almost of incentives. As a result, many enterprises of all sizes are becoming reluctant to invest in Vietnam. We believe that not only are incentives important but also effective custom procedures, infrastructure such as electricity supply and improvements in logistics within the industrial infrastructure environment.
What concerns do you have for Panasonic's investment in Vietnam?
What concerns us is that old-fashioned and complicated regulations in foreign exchange and licensing have seen few improvements, and there are few incentives for manufacturing investment in high-tech products, although we do try to invest further to contribute to the development of the country and the industry.

vnEconomy

A new highway, shorten the travel time from Hanoi – Hai Phong - to Quang Ninh

This highway will be from Hai Phong, cut through hai long bay city and ends at the Northern gate to China - Hoa Nam.

▪ THU HUYEN
16:12 (GMT+7) - Friday, June 22, 2012

A new highway is currently being constructed by 2 local goverment to shorten the travelling distance from Hanoi to Hai Long Bay to only 125km

A new highway is currently being constructed by 2 local goverment to shorten the travelling distance from Hanoi to Hai Long Bay to only 125km. This will mean that in 2 to 3 years time, it will only take 1.5hrs to travel between 2 cities.

The highway is being considered by the government as one of the most important infrastructure work in the next few years. With the strong support of the government and funding for the highway already obtained, the highway is expected to complete and open as planned. With the completion of this highway, Ha Long Bay will not only be a popular tourism location but also an attractive weekend getaway for the Hanoi people.

The most interesting stretch of highway will be from Hai Phong to Ha Long bay, its length of only 25km will demographically linked the population in these cities into 1 as it will only take 25 mins to go from Hai Phong to Ha Long. The airport at Hai Phong will also serve as a big boost to the tourism numbers in Hai Long as tourist can now fly direct to Hai Phong and take a 25 mins drive to the Hai Long Bay Tourism area.

This 25 km highway not only will serve to increase dramatically the tourism number to Ha Long, it is also consider an important trade route between Southern China and Vietnam. This highway will be from Hai Phong, cut through hai long bay city and ends at the Northern gate to China - Hoa Nam.

vnEconomy

RMIT Vietnam revamps its MBA for “busy executives”

A four-day "intensive format", supported then by online learning and out-of-session consultations with academics.

▪ LE PHUONG
11:19 (GMT+7) - Tuesday, March 13, 2012

RMIT International University Vietnam has started teaching an innovative new-style MBA program for business executives at its Saigon South campus

RMIT International University Vietnam has started teaching an innovative new-style MBA program for business executives at its Saigon South campus.

Starting this month, subjects are being presented in two parts: a four-day "intensive format", supported then by online learning and out-of-session consultations with academics.

The new approach is designed to offer executives more flexibility in scheduling their participation, making it easier for them to pursue MBA Executive studies and remain in high level jobs.

According to Melbourne-based Professor Amalia Di Iorio, Director of RMIT's MBA programs, the new intensive delivery method not only benefits Vietnamese students but also accommodates managers from neighbouring countries such as Thailand and Singapore because they can conveniently fly to Vietnam for weekend classes. Professor Di Iorio herself was in Ho Chi Minh City last weekend for classes.

"The fact that I'm at Saigon South campus lecturing this weekend validates the unique flexibility of the program and signals upcoming visits of many other leading academics from overseas who will provide our students with the most up-to-date knowledge and insights on real-world business issues."

Professor Di Iorio said RMIT Vietnam's revamped MBA Executive program will encourage learners to engage more in sharing their knowledge and experience as well as expanding their professional networks amongst high performing international business executives.

The new approach by RMIT aims to "enrich and unify" its MBA Executive offers including the programs it provides in Melbourne, Australia, and online through the Open Universities Australia (OUA) website. In Melbourne, a 12-week semester format is followed, whilst Vietnam is moving to the new 'intensive learning' format and Open Universities Australia is offering content online.

One of the students who is already benefiting from the new approach, Ahmed Hassan, a sales manager based in Dubai, praises the concept.

"I decided to fly to Vietnam for the introductory course, and it has been a positive experience as I had the chance to meet a lot of talented and experienced executives who I will definitely be in touch with in the future. I'm planning to complete my MBA remotely, but for challenging courses, I might fly to Vietnam again to receive face-to-face lectures and guidance from my professors. This is the flexibility that busy managers like me are looking for."

Further media information:

Ms Tran Huynh Nha Tran, Communications Manager, RMIT International University Vietnam
Phone: (84.8) 3776 1345 Email: tran.tran@rmit.edu.vn

vnEconomy

SSI’s officially launched its direct connection to Bloomberg & Reuters

Headquarter of SSI in Ho Chi Minh City.

▪ DUY CUONG
15:09 (GMT+7) - Monday, June 18, 2012

After a period of developing, testing and passing all the required examination procedure, Saigon Securities Inc

After a period of developing, testing and passing all the required examination procedure, Saigon Securities Inc.

(SSI) has become one of the first securities firm in Vietnam's market that successfully put into operation the system directly connected to both networks Bloomberg & Reuters.

From now on, with this new system, the international institutional clients, who are connected to those two networks, can place orders directly to SSI. In addition, clients can proactively self-destruction/repair command on the system independently from brokers as before. Client's orders will be automatically ensure compliance with management rules and trading post on the trading floor with minimal intervention of brokers, ensuring speed, efficiency and risk reduction. Matching results will be sent to the clients real time and fully automated, thereby supporting clients manage orders more efficiently.

That new system with many new features will provide clients with more ways to organize transactions fast, and automatically. With the new system, SSI has once again broadened its advantages and confirmed its leading position in the institutional securities brokerage sector.

vnEconomy

Steady going

Mr Bui Quang Vinh, Minister of Planning and Investment.

▪ DOAN TRAN
16:00 (GMT+7) - Wednesday, March 21, 2012

Minister of Planning and Investment Bui Quang Vinh spoke about Vietnam's economic performance in 2011

Minister of Planning and Investment Bui Quang Vinh spoke about Vietnam's economic performance in 2011.

Could you tell us about Vietnam's socio-economic performance in 2011?

In the context of the economic difficulties in Vietnam and around the world, there were encouraging results from implementing socio-economic tasks and the State budget in 2011, including tasks specified in the government's Decision No 02/NQ-CP and Resolution No 11/NQ-CP.

The pace of inflation by the end of the year had slowed down remarkably compared with the beginning of the year. Revenue collection was high and far exceeded the projected target. The budget deficit fell to below the target set by the National Assembly (NA).

Public investment was strictly managed and cut, to focus on selected projects with high levels of efficiency. Exports exceeded targets by as much as three-fold. GDP growth was estimated at 5.9 per cent, which can be regarded as high in the context of a greater focus on curbing inflation.

The agriculture sector recorded sound results and a record-high rice output, ensuring food security and social stability in rural areas and throughout the country and increasing exports, bringing in hard currency. Industrial production increased despite many difficulties.

Social welfare was ensured, many more jobs were created, and the poverty elimination scheme was relatively successful, helping to improve material lives.

Apart from these achievements there were also some weaknesses and shortcomings in the economy that need to be overcome, such as a number of social and economic targets for 2011 not being met. Macro-economic stability remained a problem, and inflation and interest rates remained rather high.

Industrial production and business activities faced a range of difficulties. Due to large inventories, especially at the end of the third quarter and the beginning of the fourth quarter, many businesses incurred major losses and some were dissolved or went bankrupt. Reform of the growth model and the restructure of the economy remained slow.

What should be done to overcome these weaknesses and shortcomings?

I think that these weaknesses and shortcomings stem from both subjective and objective factors, from unstable economic factors and public debt in a number countries around the world. But I think they mainly come from subjective factors: an inefficient growth model and a need for economic restructuring.

In order to improve the situation we should enhance the successes that we have achieved and overcome our weaknesses, especially with specific measures to curb inflation, ensure macro-economic stability and social welfare, so as to achieve sustainable economic development in 2012.

Some analysts have said that for quite a long time Vietnam has been too eager to attract foreign direct investment (FDI) without serious selection criteria. Do you think we should now review the status of FDI attraction in the past and that MPI should exercise stricter control?

I think that, like many things, FDI attraction has both a positive and a negative side. The Prime Minister has instructed the Ministry to conduct a comprehensive review of the status of the implementation of FDI over the last 20 years. The positive side will be improved and negative side overcome.

There was a particular phenomenon relating to FDI attraction in recent years, where quite a few foreign investors did not bring in capital but mobilised it in Vietnam instead. They failed to use this capital effectively, leading to project cancellation and even bankruptcy. There are cases in which foreign investors incurred major losses and accumulated huge debts then left the country, impacting on credit institutions and Vietnam's investment environment.

In the face of such a situation we have suggested to city and provincial people's committees that they instruct their planning and investment boards, industrial park management authorities, hi-tech and economic management authorities, and other relevant agencies to review and supervise FDI projects that have obtained loans from Vietnamese commercial banks.

At the same time, violations of the laws or failure to realise projects deserve heavy penalties. Commercial banks should be timely informed about the inability of foreign investors to repay debts, so that they can take measures to retrieve their money. Transfer pricing activities by foreign enterprises must be better controlled and supervised more strictly by relevant agencies.

What is MPI's orientation for FDI attraction in the coming years, in order to strictly supervise FDI inflows?

Looking at the FDI inflow into the country over the last ten years we can see that in 2000 it started to recover from the negative impact of the financial and currency crisis in Asia and increased in 2005 by 45.1 to 50.8 per cent over 2004.

Total registered capital during the 2001-2005 period was $20.8 billion. From 2006 to 2008 there was a sudden rise of FDI inflows into the country, with total registered capital of $12 billion in 2006, $21.3 billion in 2007 and $71.7 billion in 2008. FDI inflows in 2008 were more than three times higher than in 2007.

In 2009 and 2010, despite the impact of the global financial crisis and economic recession and the post-crisis outcome, registered FDI capital was estimated at $23.1 billion in 2009 and $18.6 billion in 2010.

As I mentioned earlier, besides the achievements in terms of increasing project numbers and registered capital in recent years, some side-effects have also been exposed. The period of "rolling out the red carpet" to attract FDI at any cost has finished.

Future FDI attraction will be focused on projects that bring about investment efficiency and help restructure the economy, improve growth quality and raise the competitive edge of the economy.

To be more specific, Vietnam will focus on attracting FDI projects relating to transport infrastructure, agriculture, education, public health, hi-tech and advanced technologies, and environmentally-friendly and green technologies. Vietnam will not welcome projects with low technology or high energy consumption, or projects that cause environmental and ecological pollution.

vnEconomy

Uncertainty remains

Photo: Viet Tuan.

▪ THU TRANG
11:23 (GMT+7) - Friday, March 23, 2012

Business confidence and outlook among foreign business in Vietnam has stabilised and concerns about the existing business situation appear to have eased slightly

Business confidence and outlook among foreign business in Vietnam has stabilised and concerns about the existing business situation appear to have eased slightly.

The business environment in Vietnam during 2011 was challenging in many sectors because of the macro-economic situation, primarily high inflation and high interest rates, which had an adverse impact on many business. It was not all doom and gloom, however, and many export sectors recorded significant growth both in volume and value that helped to reduce the country's trade deficit.

Positive outlook

According to a recent report from HSBC, Vietnam's growth momentum has been impressive given fourth quarter GDP growth of 6.1 per cent year-on-year due to robust exports and higher domestic demand. GDP growth was 5.9 per cent for 2011 as a whole and HSBC expects it to be 5.7 per cent in 2012 while the government's target is 6 to 6.5 per cent.

Early this year EuroCham released its Business Climate Index Vietnam, conducted in January, which increased four points to 56 with 40 per cent of 240 respondents being active in the services industry, about a quarter in each manufacturing and trading, and the remainder in other activities.

Compared to its previous survey, there was little change in respondents assessing their current business situation as "neutral", down slightly from the 45 per cent in the last survey. A "good" or "excellent" view of their current business situation was held by 36 per cent or respondents, up slightly from 32 per cent last quarter but still much lower than the 64 per cent who were content with their current business situation this time last year. The number of businesses holding a negative view on their current situation has remained nearly unchanged since last quarter, but at 26 per cent it is 14 per cent points higher than a year ago.

Over recent years Vietnam has been selected to be part of the focus of many MNCs because of some key factors.

First of all, it is one of the fastest growing economies in Southeast Asia, with an average of 8 per cent over the last several years.

Secondly, it is currently undergoing rising industrialisation, inspired by huge investment flows into building infrastructure and the modernisation process in its cities.

Thirdly, having rich natural resources, especially oil and gas, as well as a young workforce, there will be a pressing need for energy and energy efficiency technologies. Additionally, the policies of economic reform since 1986 have tremendously changed the business environment, creating more opportunities for private economic sectors as well as supporting foreign investment.

The commitment of the government to restructuring the banking sector and SOEs will definitely have a positive impact on the business environment from 2012 onwards because it will create a level playing field in many sectors.

The Year of the Dragon also brings slight optimism in business outlook, with 39 per cent believing "good" or "excellent". This is a 12 per cent increase over last quarter, but is put into perspective by the 72 per cent of respondents that had a positive business outlook this time last year. "EuroCham remains bullish for Vietnam and believes that the outlook for the medium and long term is excellent," said EuroCham Chairman Alain Cany. "We believe that if Vietnam successfully tackles the short-term issues and concentrates on the big topics, it will be successful in growing into an industrialised country by 2020."

Challenges remain

The business community believed it was a combination of slow progress on many of last year's issues coupled with some new issues that are eroding confidence in Vietnam's business environment. For example, high rates of inflation coupled with difficult access to credit, lack of adequate infrastructure and administrative burdens continue.

What is worrying is Vietnam's struggle with maintaining price stability this year. The government has taken much-needed steps to tighten fiscal and monetary policy. While potential electricity hikes and regional food supply shocks will likely stoke inflationary pressures, experts at HSBC expect inflation to reach single digits by the end of 2012 due to a high base effect. "As such, the State Bank of Vietnam is likely to decrease the interest rate in the first quarter 2012 from 14 per cent to 13 per cent and thereafter to 9 per cent by end of 2012," the HSBC report said.

Meanwhile, 53 per cent of European companies in Vietnam expect inflation to have a significant impact on their business and 36 per cent expect to be impacted in some way. Eight per cent stated that inflation was actually threatening their business in the country.

According to Mr Ken Atkinson, Managing Partner at Grant Thornton Vietnam, the most important factors that will help improve the business environment are a continued fall in inflation followed by a fall in domestic interest rates and exchange rate stability. "In addition, there needs to be an improvement in transparency, a reduction in administrative bureaucracy and continued investment in infrastructure with private sector participation through PPP," he added.

Furthermore, corruption is still affecting many investors in Vietnam. When asked whether corruption had ultimately reduced or delayed their investment in Vietnam, opinions were split roughly in thirds. About 39 per cent stated a slight impact, and 25 per cent said corruption had not affected them at all, while 34 per cent said that corruption had "significantly" reduced or delayed their investment in Vietnam. This is an increase from 28 per cent last quarter and indicates that corruption is still a serious problem and features prominently in investors' considerations about the country.

Mr Cany said that the slight increase in the EuroCham Business Climate Index to 56 points shows a halt in the downward trend in business confidence he saw in 2011. But business confidence is still far below 2010's level. "This shows that uncertainty among investors remains," he said. "Key structural issues have not been resolved, such as the equitisation of State-owned enterprises and stabilising the macroeconomic environment, to give two examples."

vnEconomy

Green innovation

Mr Shinichi Wakita, General Director of Panasonic Vietnam.

▪ VET
15:17 (GMT+7) - Tuesday, November 15, 2011

Mr Shinichi Wakita, General Director of Panasonic Vietnam, tells why it continues with its expansion plans in Vietnam at this time

Mr Shinichi Wakita, General Director of Panasonic Vietnam, tells why it continues with its expansion plans in Vietnam at this time.
What are Panasonic's plans in Vietnam for the years to come?
As part of our global policy and strategy, in Quarter III, 2011, Panasonic has made several strategic steps into Vietnam to expand its investment in this market with rich potential. First of all, Panasonic plans to build a new electronic components plant at the Thang Long Industrial Park in Hanoi to introduce new ALIVH multi-layer resin boards to meet the rapidly growing smart phone demand. The plant will begin production in August 2012 and have a capacity of 3.5 million units per month.

We have also decided to expand our refrigerator assembly line at the Thang Long Industrial Park, which was built in 2003. As scheduled, by 2015 production is expected to be twice the volume of 2011 (400,000 products per year, reaching 800,000 products per year), with an emphasis on creating local components and assembling high quality Panasonic refrigerators to meet local demand and for export.
Next year Panasonic will open its new washing machine factory at the Thang Long Industrial Park 2 in Hung Yen province. With large-scale production, the target is 700,000 units per year by 2015.
After that, a home appliances research and development centre will be opened in the same location to develop suitable products for Vietnamese consumers. After coming into operation, the factory and R&D centre are expected to provide over 1,000 jobs to local people.
This new phase of expansion reaffirms the long-term commitment of the Global Panasonic Group to Vietnam, aiming to become the leading brand name in the two abovementioned sections and the leading brand name in electronics and home appliances in Vietnam, with annual double-digit growth from 2011-2015. Initially, the target for sales in 2011 is $1 billion.
How much investment capital will be poured into the expansion?
We will invest an additional $84 million over a couple of years in Vietnam, bringing our total investment capital in the emerging market to $224 million.
Many Japanese firms have focused on production in Vietnam but the new trend is to open retail outlets to sell products made elsewhere. So why does Panasonic continue to expand its investment in Vietnam at this time?
The expansion of the retail market in Vietnam provides opportunities for manufacturers as well. We believe it is not enough to satisfy the needs of the market by simply selling imported products. It is necessary to research market needs and meet demand, as well as to enhance our brand value in Vietnam.
With the new expansion phase, Panasonic aims to become the leading brand name in electronics and home appliances.
What challenges face Panasonic on the way to reaching this target?
The challenges facing Panasonic include becoming a "green innovation" company. We not only produce and sell electronics and home appliances; we also focus on eco-products to protect the environment and bring a green lifestyle to each house and building. We believe that this will help Panasonic become the leading brand name.
What are the important factors that Japanese investors like Panasonic consider when deciding to invest in Vietnam?
It is for the Vietnamese Government to focus on more industrial-oriented policies to be competitive globally. In order to develop the country, the foundation for competitive industrial infrastructure could lead to further investment in the manufacturing industry, and strengthen the competitiveness of human resources and industrialisation.
However, it has been very disappointing for us that recent policies for the manufacturing industry have removed almost of incentives. As a result, many enterprises of all sizes are becoming reluctant to invest in Vietnam. We believe that not only are incentives important but also effective custom procedures, infrastructure such as electricity supply and improvements in logistics within the industrial infrastructure environment.
What concerns do you have for Panasonic's investment in Vietnam?
What concerns us is that old-fashioned and complicated regulations in foreign exchange and licensing have seen few improvements, and there are few incentives for manufacturing investment in high-tech products, although we do try to invest further to contribute to the development of the country and the industry.

vnEconomy

A new highway, shorten the travel time from Hanoi – Hai Phong - to Quang Ninh

This highway will be from Hai Phong, cut through hai long bay city and ends at the Northern gate to China - Hoa Nam.

▪ THU HUYEN
16:12 (GMT+7) - Friday, June 22, 2012

A new highway is currently being constructed by 2 local goverment to shorten the travelling distance from Hanoi to Hai Long Bay to only 125km

A new highway is currently being constructed by 2 local goverment to shorten the travelling distance from Hanoi to Hai Long Bay to only 125km. This will mean that in 2 to 3 years time, it will only take 1.5hrs to travel between 2 cities.

The highway is being considered by the government as one of the most important infrastructure work in the next few years. With the strong support of the government and funding for the highway already obtained, the highway is expected to complete and open as planned. With the completion of this highway, Ha Long Bay will not only be a popular tourism location but also an attractive weekend getaway for the Hanoi people.

The most interesting stretch of highway will be from Hai Phong to Ha Long bay, its length of only 25km will demographically linked the population in these cities into 1 as it will only take 25 mins to go from Hai Phong to Ha Long. The airport at Hai Phong will also serve as a big boost to the tourism numbers in Hai Long as tourist can now fly direct to Hai Phong and take a 25 mins drive to the Hai Long Bay Tourism area.

This 25 km highway not only will serve to increase dramatically the tourism number to Ha Long, it is also consider an important trade route between Southern China and Vietnam. This highway will be from Hai Phong, cut through hai long bay city and ends at the Northern gate to China - Hoa Nam.

vnEconomy

RMIT Vietnam revamps its MBA for “busy executives”

A four-day "intensive format", supported then by online learning and out-of-session consultations with academics.

▪ LE PHUONG
11:19 (GMT+7) - Tuesday, March 13, 2012

RMIT International University Vietnam has started teaching an innovative new-style MBA program for business executives at its Saigon South campus

RMIT International University Vietnam has started teaching an innovative new-style MBA program for business executives at its Saigon South campus.

Starting this month, subjects are being presented in two parts: a four-day "intensive format", supported then by online learning and out-of-session consultations with academics.

The new approach is designed to offer executives more flexibility in scheduling their participation, making it easier for them to pursue MBA Executive studies and remain in high level jobs.

According to Melbourne-based Professor Amalia Di Iorio, Director of RMIT's MBA programs, the new intensive delivery method not only benefits Vietnamese students but also accommodates managers from neighbouring countries such as Thailand and Singapore because they can conveniently fly to Vietnam for weekend classes. Professor Di Iorio herself was in Ho Chi Minh City last weekend for classes.

"The fact that I'm at Saigon South campus lecturing this weekend validates the unique flexibility of the program and signals upcoming visits of many other leading academics from overseas who will provide our students with the most up-to-date knowledge and insights on real-world business issues."

Professor Di Iorio said RMIT Vietnam's revamped MBA Executive program will encourage learners to engage more in sharing their knowledge and experience as well as expanding their professional networks amongst high performing international business executives.

The new approach by RMIT aims to "enrich and unify" its MBA Executive offers including the programs it provides in Melbourne, Australia, and online through the Open Universities Australia (OUA) website. In Melbourne, a 12-week semester format is followed, whilst Vietnam is moving to the new 'intensive learning' format and Open Universities Australia is offering content online.

One of the students who is already benefiting from the new approach, Ahmed Hassan, a sales manager based in Dubai, praises the concept.

"I decided to fly to Vietnam for the introductory course, and it has been a positive experience as I had the chance to meet a lot of talented and experienced executives who I will definitely be in touch with in the future. I'm planning to complete my MBA remotely, but for challenging courses, I might fly to Vietnam again to receive face-to-face lectures and guidance from my professors. This is the flexibility that busy managers like me are looking for."

Further media information:

Ms Tran Huynh Nha Tran, Communications Manager, RMIT International University Vietnam
Phone: (84.8) 3776 1345 Email: tran.tran@rmit.edu.vn

vnEconomy

SSI’s officially launched its direct connection to Bloomberg & Reuters

Headquarter of SSI in Ho Chi Minh City.

▪ DUY CUONG
15:09 (GMT+7) - Monday, June 18, 2012

After a period of developing, testing and passing all the required examination procedure, Saigon Securities Inc

After a period of developing, testing and passing all the required examination procedure, Saigon Securities Inc.

(SSI) has become one of the first securities firm in Vietnam's market that successfully put into operation the system directly connected to both networks Bloomberg & Reuters.

From now on, with this new system, the international institutional clients, who are connected to those two networks, can place orders directly to SSI. In addition, clients can proactively self-destruction/repair command on the system independently from brokers as before. Client's orders will be automatically ensure compliance with management rules and trading post on the trading floor with minimal intervention of brokers, ensuring speed, efficiency and risk reduction. Matching results will be sent to the clients real time and fully automated, thereby supporting clients manage orders more efficiently.

That new system with many new features will provide clients with more ways to organize transactions fast, and automatically. With the new system, SSI has once again broadened its advantages and confirmed its leading position in the institutional securities brokerage sector.

vnEconomy

Steady going

Mr Bui Quang Vinh, Minister of Planning and Investment.

▪ DOAN TRAN
16:00 (GMT+7) - Wednesday, March 21, 2012

Minister of Planning and Investment Bui Quang Vinh spoke about Vietnam's economic performance in 2011

Minister of Planning and Investment Bui Quang Vinh spoke about Vietnam's economic performance in 2011.

Could you tell us about Vietnam's socio-economic performance in 2011?

In the context of the economic difficulties in Vietnam and around the world, there were encouraging results from implementing socio-economic tasks and the State budget in 2011, including tasks specified in the government's Decision No 02/NQ-CP and Resolution No 11/NQ-CP.

The pace of inflation by the end of the year had slowed down remarkably compared with the beginning of the year. Revenue collection was high and far exceeded the projected target. The budget deficit fell to below the target set by the National Assembly (NA).

Public investment was strictly managed and cut, to focus on selected projects with high levels of efficiency. Exports exceeded targets by as much as three-fold. GDP growth was estimated at 5.9 per cent, which can be regarded as high in the context of a greater focus on curbing inflation.

The agriculture sector recorded sound results and a record-high rice output, ensuring food security and social stability in rural areas and throughout the country and increasing exports, bringing in hard currency. Industrial production increased despite many difficulties.

Social welfare was ensured, many more jobs were created, and the poverty elimination scheme was relatively successful, helping to improve material lives.

Apart from these achievements there were also some weaknesses and shortcomings in the economy that need to be overcome, such as a number of social and economic targets for 2011 not being met. Macro-economic stability remained a problem, and inflation and interest rates remained rather high.

Industrial production and business activities faced a range of difficulties. Due to large inventories, especially at the end of the third quarter and the beginning of the fourth quarter, many businesses incurred major losses and some were dissolved or went bankrupt. Reform of the growth model and the restructure of the economy remained slow.

What should be done to overcome these weaknesses and shortcomings?

I think that these weaknesses and shortcomings stem from both subjective and objective factors, from unstable economic factors and public debt in a number countries around the world. But I think they mainly come from subjective factors: an inefficient growth model and a need for economic restructuring.

In order to improve the situation we should enhance the successes that we have achieved and overcome our weaknesses, especially with specific measures to curb inflation, ensure macro-economic stability and social welfare, so as to achieve sustainable economic development in 2012.

Some analysts have said that for quite a long time Vietnam has been too eager to attract foreign direct investment (FDI) without serious selection criteria. Do you think we should now review the status of FDI attraction in the past and that MPI should exercise stricter control?

I think that, like many things, FDI attraction has both a positive and a negative side. The Prime Minister has instructed the Ministry to conduct a comprehensive review of the status of the implementation of FDI over the last 20 years. The positive side will be improved and negative side overcome.

There was a particular phenomenon relating to FDI attraction in recent years, where quite a few foreign investors did not bring in capital but mobilised it in Vietnam instead. They failed to use this capital effectively, leading to project cancellation and even bankruptcy. There are cases in which foreign investors incurred major losses and accumulated huge debts then left the country, impacting on credit institutions and Vietnam's investment environment.

In the face of such a situation we have suggested to city and provincial people's committees that they instruct their planning and investment boards, industrial park management authorities, hi-tech and economic management authorities, and other relevant agencies to review and supervise FDI projects that have obtained loans from Vietnamese commercial banks.

At the same time, violations of the laws or failure to realise projects deserve heavy penalties. Commercial banks should be timely informed about the inability of foreign investors to repay debts, so that they can take measures to retrieve their money. Transfer pricing activities by foreign enterprises must be better controlled and supervised more strictly by relevant agencies.

What is MPI's orientation for FDI attraction in the coming years, in order to strictly supervise FDI inflows?

Looking at the FDI inflow into the country over the last ten years we can see that in 2000 it started to recover from the negative impact of the financial and currency crisis in Asia and increased in 2005 by 45.1 to 50.8 per cent over 2004.

Total registered capital during the 2001-2005 period was $20.8 billion. From 2006 to 2008 there was a sudden rise of FDI inflows into the country, with total registered capital of $12 billion in 2006, $21.3 billion in 2007 and $71.7 billion in 2008. FDI inflows in 2008 were more than three times higher than in 2007.

In 2009 and 2010, despite the impact of the global financial crisis and economic recession and the post-crisis outcome, registered FDI capital was estimated at $23.1 billion in 2009 and $18.6 billion in 2010.

As I mentioned earlier, besides the achievements in terms of increasing project numbers and registered capital in recent years, some side-effects have also been exposed. The period of "rolling out the red carpet" to attract FDI at any cost has finished.

Future FDI attraction will be focused on projects that bring about investment efficiency and help restructure the economy, improve growth quality and raise the competitive edge of the economy.

To be more specific, Vietnam will focus on attracting FDI projects relating to transport infrastructure, agriculture, education, public health, hi-tech and advanced technologies, and environmentally-friendly and green technologies. Vietnam will not welcome projects with low technology or high energy consumption, or projects that cause environmental and ecological pollution.

vnEconomy

Uncertainty remains

Photo: Viet Tuan.

▪ THU TRANG
11:23 (GMT+7) - Friday, March 23, 2012

Business confidence and outlook among foreign business in Vietnam has stabilised and concerns about the existing business situation appear to have eased slightly

Business confidence and outlook among foreign business in Vietnam has stabilised and concerns about the existing business situation appear to have eased slightly.

The business environment in Vietnam during 2011 was challenging in many sectors because of the macro-economic situation, primarily high inflation and high interest rates, which had an adverse impact on many business. It was not all doom and gloom, however, and many export sectors recorded significant growth both in volume and value that helped to reduce the country's trade deficit.

Positive outlook

According to a recent report from HSBC, Vietnam's growth momentum has been impressive given fourth quarter GDP growth of 6.1 per cent year-on-year due to robust exports and higher domestic demand. GDP growth was 5.9 per cent for 2011 as a whole and HSBC expects it to be 5.7 per cent in 2012 while the government's target is 6 to 6.5 per cent.

Early this year EuroCham released its Business Climate Index Vietnam, conducted in January, which increased four points to 56 with 40 per cent of 240 respondents being active in the services industry, about a quarter in each manufacturing and trading, and the remainder in other activities.

Compared to its previous survey, there was little change in respondents assessing their current business situation as "neutral", down slightly from the 45 per cent in the last survey. A "good" or "excellent" view of their current business situation was held by 36 per cent or respondents, up slightly from 32 per cent last quarter but still much lower than the 64 per cent who were content with their current business situation this time last year. The number of businesses holding a negative view on their current situation has remained nearly unchanged since last quarter, but at 26 per cent it is 14 per cent points higher than a year ago.

Over recent years Vietnam has been selected to be part of the focus of many MNCs because of some key factors.

First of all, it is one of the fastest growing economies in Southeast Asia, with an average of 8 per cent over the last several years.

Secondly, it is currently undergoing rising industrialisation, inspired by huge investment flows into building infrastructure and the modernisation process in its cities.

Thirdly, having rich natural resources, especially oil and gas, as well as a young workforce, there will be a pressing need for energy and energy efficiency technologies. Additionally, the policies of economic reform since 1986 have tremendously changed the business environment, creating more opportunities for private economic sectors as well as supporting foreign investment.

The commitment of the government to restructuring the banking sector and SOEs will definitely have a positive impact on the business environment from 2012 onwards because it will create a level playing field in many sectors.

The Year of the Dragon also brings slight optimism in business outlook, with 39 per cent believing "good" or "excellent". This is a 12 per cent increase over last quarter, but is put into perspective by the 72 per cent of respondents that had a positive business outlook this time last year. "EuroCham remains bullish for Vietnam and believes that the outlook for the medium and long term is excellent," said EuroCham Chairman Alain Cany. "We believe that if Vietnam successfully tackles the short-term issues and concentrates on the big topics, it will be successful in growing into an industrialised country by 2020."

Challenges remain

The business community believed it was a combination of slow progress on many of last year's issues coupled with some new issues that are eroding confidence in Vietnam's business environment. For example, high rates of inflation coupled with difficult access to credit, lack of adequate infrastructure and administrative burdens continue.

What is worrying is Vietnam's struggle with maintaining price stability this year. The government has taken much-needed steps to tighten fiscal and monetary policy. While potential electricity hikes and regional food supply shocks will likely stoke inflationary pressures, experts at HSBC expect inflation to reach single digits by the end of 2012 due to a high base effect. "As such, the State Bank of Vietnam is likely to decrease the interest rate in the first quarter 2012 from 14 per cent to 13 per cent and thereafter to 9 per cent by end of 2012," the HSBC report said.

Meanwhile, 53 per cent of European companies in Vietnam expect inflation to have a significant impact on their business and 36 per cent expect to be impacted in some way. Eight per cent stated that inflation was actually threatening their business in the country.

According to Mr Ken Atkinson, Managing Partner at Grant Thornton Vietnam, the most important factors that will help improve the business environment are a continued fall in inflation followed by a fall in domestic interest rates and exchange rate stability. "In addition, there needs to be an improvement in transparency, a reduction in administrative bureaucracy and continued investment in infrastructure with private sector participation through PPP," he added.

Furthermore, corruption is still affecting many investors in Vietnam. When asked whether corruption had ultimately reduced or delayed their investment in Vietnam, opinions were split roughly in thirds. About 39 per cent stated a slight impact, and 25 per cent said corruption had not affected them at all, while 34 per cent said that corruption had "significantly" reduced or delayed their investment in Vietnam. This is an increase from 28 per cent last quarter and indicates that corruption is still a serious problem and features prominently in investors' considerations about the country.

Mr Cany said that the slight increase in the EuroCham Business Climate Index to 56 points shows a halt in the downward trend in business confidence he saw in 2011. But business confidence is still far below 2010's level. "This shows that uncertainty among investors remains," he said. "Key structural issues have not been resolved, such as the equitisation of State-owned enterprises and stabilising the macroeconomic environment, to give two examples."

vnEconomy

Green innovation

Mr Shinichi Wakita, General Director of Panasonic Vietnam.

▪ VET
15:17 (GMT+7) - Tuesday, November 15, 2011

Mr Shinichi Wakita, General Director of Panasonic Vietnam, tells why it continues with its expansion plans in Vietnam at this time

Mr Shinichi Wakita, General Director of Panasonic Vietnam, tells why it continues with its expansion plans in Vietnam at this time.
What are Panasonic's plans in Vietnam for the years to come?
As part of our global policy and strategy, in Quarter III, 2011, Panasonic has made several strategic steps into Vietnam to expand its investment in this market with rich potential. First of all, Panasonic plans to build a new electronic components plant at the Thang Long Industrial Park in Hanoi to introduce new ALIVH multi-layer resin boards to meet the rapidly growing smart phone demand. The plant will begin production in August 2012 and have a capacity of 3.5 million units per month.

We have also decided to expand our refrigerator assembly line at the Thang Long Industrial Park, which was built in 2003. As scheduled, by 2015 production is expected to be twice the volume of 2011 (400,000 products per year, reaching 800,000 products per year), with an emphasis on creating local components and assembling high quality Panasonic refrigerators to meet local demand and for export.
Next year Panasonic will open its new washing machine factory at the Thang Long Industrial Park 2 in Hung Yen province. With large-scale production, the target is 700,000 units per year by 2015.
After that, a home appliances research and development centre will be opened in the same location to develop suitable products for Vietnamese consumers. After coming into operation, the factory and R&D centre are expected to provide over 1,000 jobs to local people.
This new phase of expansion reaffirms the long-term commitment of the Global Panasonic Group to Vietnam, aiming to become the leading brand name in the two abovementioned sections and the leading brand name in electronics and home appliances in Vietnam, with annual double-digit growth from 2011-2015. Initially, the target for sales in 2011 is $1 billion.
How much investment capital will be poured into the expansion?
We will invest an additional $84 million over a couple of years in Vietnam, bringing our total investment capital in the emerging market to $224 million.
Many Japanese firms have focused on production in Vietnam but the new trend is to open retail outlets to sell products made elsewhere. So why does Panasonic continue to expand its investment in Vietnam at this time?
The expansion of the retail market in Vietnam provides opportunities for manufacturers as well. We believe it is not enough to satisfy the needs of the market by simply selling imported products. It is necessary to research market needs and meet demand, as well as to enhance our brand value in Vietnam.
With the new expansion phase, Panasonic aims to become the leading brand name in electronics and home appliances.
What challenges face Panasonic on the way to reaching this target?
The challenges facing Panasonic include becoming a "green innovation" company. We not only produce and sell electronics and home appliances; we also focus on eco-products to protect the environment and bring a green lifestyle to each house and building. We believe that this will help Panasonic become the leading brand name.
What are the important factors that Japanese investors like Panasonic consider when deciding to invest in Vietnam?
It is for the Vietnamese Government to focus on more industrial-oriented policies to be competitive globally. In order to develop the country, the foundation for competitive industrial infrastructure could lead to further investment in the manufacturing industry, and strengthen the competitiveness of human resources and industrialisation.
However, it has been very disappointing for us that recent policies for the manufacturing industry have removed almost of incentives. As a result, many enterprises of all sizes are becoming reluctant to invest in Vietnam. We believe that not only are incentives important but also effective custom procedures, infrastructure such as electricity supply and improvements in logistics within the industrial infrastructure environment.
What concerns do you have for Panasonic's investment in Vietnam?
What concerns us is that old-fashioned and complicated regulations in foreign exchange and licensing have seen few improvements, and there are few incentives for manufacturing investment in high-tech products, although we do try to invest further to contribute to the development of the country and the industry.

vnEconomy

A new highway, shorten the travel time from Hanoi – Hai Phong - to Quang Ninh

This highway will be from Hai Phong, cut through hai long bay city and ends at the Northern gate to China - Hoa Nam.

▪ THU HUYEN
16:12 (GMT+7) - Friday, June 22, 2012

A new highway is currently being constructed by 2 local goverment to shorten the travelling distance from Hanoi to Hai Long Bay to only 125km

A new highway is currently being constructed by 2 local goverment to shorten the travelling distance from Hanoi to Hai Long Bay to only 125km. This will mean that in 2 to 3 years time, it will only take 1.5hrs to travel between 2 cities.

The highway is being considered by the government as one of the most important infrastructure work in the next few years. With the strong support of the government and funding for the highway already obtained, the highway is expected to complete and open as planned. With the completion of this highway, Ha Long Bay will not only be a popular tourism location but also an attractive weekend getaway for the Hanoi people.

The most interesting stretch of highway will be from Hai Phong to Ha Long bay, its length of only 25km will demographically linked the population in these cities into 1 as it will only take 25 mins to go from Hai Phong to Ha Long. The airport at Hai Phong will also serve as a big boost to the tourism numbers in Hai Long as tourist can now fly direct to Hai Phong and take a 25 mins drive to the Hai Long Bay Tourism area.

This 25 km highway not only will serve to increase dramatically the tourism number to Ha Long, it is also consider an important trade route between Southern China and Vietnam. This highway will be from Hai Phong, cut through hai long bay city and ends at the Northern gate to China - Hoa Nam.

vnEconomy

RMIT Vietnam revamps its MBA for “busy executives”

A four-day "intensive format", supported then by online learning and out-of-session consultations with academics.

▪ LE PHUONG
11:19 (GMT+7) - Tuesday, March 13, 2012

RMIT International University Vietnam has started teaching an innovative new-style MBA program for business executives at its Saigon South campus

RMIT International University Vietnam has started teaching an innovative new-style MBA program for business executives at its Saigon South campus.

Starting this month, subjects are being presented in two parts: a four-day "intensive format", supported then by online learning and out-of-session consultations with academics.

The new approach is designed to offer executives more flexibility in scheduling their participation, making it easier for them to pursue MBA Executive studies and remain in high level jobs.

According to Melbourne-based Professor Amalia Di Iorio, Director of RMIT's MBA programs, the new intensive delivery method not only benefits Vietnamese students but also accommodates managers from neighbouring countries such as Thailand and Singapore because they can conveniently fly to Vietnam for weekend classes. Professor Di Iorio herself was in Ho Chi Minh City last weekend for classes.

"The fact that I'm at Saigon South campus lecturing this weekend validates the unique flexibility of the program and signals upcoming visits of many other leading academics from overseas who will provide our students with the most up-to-date knowledge and insights on real-world business issues."

Professor Di Iorio said RMIT Vietnam's revamped MBA Executive program will encourage learners to engage more in sharing their knowledge and experience as well as expanding their professional networks amongst high performing international business executives.

The new approach by RMIT aims to "enrich and unify" its MBA Executive offers including the programs it provides in Melbourne, Australia, and online through the Open Universities Australia (OUA) website. In Melbourne, a 12-week semester format is followed, whilst Vietnam is moving to the new 'intensive learning' format and Open Universities Australia is offering content online.

One of the students who is already benefiting from the new approach, Ahmed Hassan, a sales manager based in Dubai, praises the concept.

"I decided to fly to Vietnam for the introductory course, and it has been a positive experience as I had the chance to meet a lot of talented and experienced executives who I will definitely be in touch with in the future. I'm planning to complete my MBA remotely, but for challenging courses, I might fly to Vietnam again to receive face-to-face lectures and guidance from my professors. This is the flexibility that busy managers like me are looking for."

Further media information:

Ms Tran Huynh Nha Tran, Communications Manager, RMIT International University Vietnam
Phone: (84.8) 3776 1345 Email: tran.tran@rmit.edu.vn

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