Gov’t Leader Requests Resolve, Aspiration for National Development
Prime Minister Nguyen Xuan Phuc
has asked central and local officials to have a political resolve and aspirations to develop the country in the new period although numerous difficulties remain, the Vietnam News Agency (VNA) reported.
Concluding a two-day teleconference between the government and localities on December 29, he said the achievements obtained in 2016 are respectable, but an array of difficulties are forecast for 2017 regarding natural disasters, public debt, low economic competitiveness, and unpredictable international situation.
Vietnam Infrastructure Completes Divestment of SEATH
Vietnam Infrastructure, run by VinaCapital
, announced on Thursday that it had closed the sale and purchase agreement to transfer 100% of VNI's holding in Southeast Asia Telecommunications Holdings (SEATH) to OCK Vietnam Towers.
The AIM-traded company said the cash consideration for the transaction is $50m, which will be received in full by VNI by the end of January 2017. It said the divestment is in line with the exit strategy for VNI's private equity portfolio.
Hanoi Aims to Lure over 23 Million Visitors in 2017
Hanoi is set to attract 23.39 million visitors, including 4.08 million foreign tourists, in 2017, with a revenue of over 66 trillion dong ($2.89 billion), according to the municipal Tourism Department.
To 2020, the city aims for a rise of 15-17% in yearly tourism revenue to reach 120 trillion dong in 2020, added the department.
VRG Plants 90,000 Hectares of Rubber in Cambodia so far
State-run Vietnam Rubber Group (VRG) has planted more than 90,000 hectares of rubber trees in Cambodia in the past 10 years, 1,900 hectares of which have been producing latex, VNA reported.
VRG projects have created jobs for 15,000 local laborers and built various infrastructure works for localities, according to a VRG conference in Phnom Penh on December 28 to review its 10-year operation in Cambodia.
Vietnam - a Magnet for Investment
Frederic Neumann, co-head of Asian economic research at HSBC
Holdings Plc in Hong Kong said Vietnam is in a sweet spot right now as strong growth will likely persist over the next several years and Vietnam was continuing to gain market shares in exports.
Foreign companies continue to invest in Vietnam to take advantage of its highly competitive labor and low costs. The outlook is bright and it is one of the standout economies in Asia, Neumann said.
Vietnam Airlines, Vinatex to Float Shares in January
National flag carrier Vietnam Airlines and Vietnam National Textile and Garment Group (Vinatex) will float their shares on the Unlisted Public Company Market (UPCoM) on January 3.
Vietnam Airlines will trade 1.22 billion shares with the code HVN at a starting price of 28,000 dong ($1.24) per share while Vinatex will debut 500 million shares on the same day.
Vietnamese Dong Devalues 1.1-1.2% in 2016
By the end of 2016, the Vietnamese dong has devalued 1.1-1.2% and foreign currency liquidity is stable, said Governor Le Minh Hung of the State Bank of Vietnam.
He said the central bank has reduced its intervention in the forex market this year and the demand for foreign currency had increased towards the year-end, but the forex market remained steadfast.
China Phone Maker Xiaomi Readies to Enter Vietnam
China’s privately-owned electronics company Xiaomi Inc. has announced recruitment of personnel, preparing for its official entry in Vietnam where large phone manufacturers such as Samsung and Oppo have already been present.
Xiaomi is recruiting people who will be able to plan and organize events in Vietnam and deploy plans mandated from the headquarters in China, Zing News reported, citing MIUI forum, which disseminates on Xiaomi products to Vietnamese users.
Vietnam to Issue $11 Billion G-Bonds in 2017
The Vietnamese government plans to sell 250 trillion dong ($11 billion) worth of sovereign dong-denominated bonds next year, compared to 280 trillion dong in 2016, said Deputy Prime Minister Vuong Dinh Hue.
Vietsovpetro, a joint venture established in 1981 between Vietnam’s state-run PetroVietnam and Russia’s Zarubezhneft, saw its revenue from oil sales down 22.4% year-on-year to $1.7 billion this year, the firm said on its website.
PetroVietnam, which holds a 51% stake in the joint venture, earned a profit of $126 million while the Russian party took $121 million, compared to $216.6 million and $208.1 million in 2015, respectively.
Although prospects remain bright, the Vietnamese government should keep a close watch on major economic risks that an uptick of inflation, capital impairment at banks and sluggish public finance reforms, HSBC has said in its latest report.
According to HSBC researchers, the re-emergence of inflationary pressures could be one key concern in the months to come.
Vietnamese customs authorities have fined LG Electronics Vietnam Hai Phong Ltd. Co. 1.3 billion dong ($57,270) for not fully having declared information for a number of import items, the Thanh Nien (Young People) newspaper reported.
According to the General Department of Vietnam Customs, LG Electronics Vietnam Hai Phong did not declare special relations, insurance premiums, container imbalance charge (CIC) when importing goods from offshore partners that are affiliated to LG Group.
Vietnam’s foreign exchange reserves have hit an all-time high of $41 billion as the central bank earlier this year strongly bought in hard currencies thanks to abundant supply, according to data announced at a government conference.