[Round-up] Foreign Firms Dominate Vietnam’s Cosmetics, Kimin Eyes $224 Million Solar Power Plant

Tuan Minh

23:57 22/08/2016

BizLIVE - Foreign companies are dominating the Vietnamese cosmetics market, leaving a mere 10% market share to local peers. Kimin Power Company is seeking to develop a $224-million solar power plant in Quang Ngai province.

[Round-up] Foreign Firms Dominate Vietnam’s Cosmetics, Kimin Eyes $224 Million Solar Power Plant

Foreign companies are dominating the Vietnamese cosmetics market, leaving a mere 10% market share to local peers.

Vietnamese Cosmetics Firms Lose Ground to Foreign Peers
Vietnamese cosmetic products have only a 10% market share though they can easily compete with foreign ones in terms of quality, Nguyen Van Minh, deputy chairman of the Vietnam Essential Oils, Aromatherapy and Cosmetics Association, told the Vietnam News Agency.
Vietnamese consumers, especially affluent ones, prefer high-quality products but also ones with beautiful packaging. However, the companies have focused on quality but not invested in developing their brands.
Kimin Power Eyes $224 Million Solar Power Plant in Central Vietnam
The UK’s Kimin Power Company is seeking permission from Quang Ngai province’s authorities to build a solar power plant in the province’s Duc Pho district at a cost of five trillion dong ($224 million).
The plant will have a capacity of 150 megawatts and span an area of 250 hectares, local media reported.
Vietnam’s public debt is projected to mount to 2,993.33 trillion ($134 billion) by the end of this year, or 64.4% of its gross domestic product (GDP), Bao Viet Securities Company (BVSC) has said in a report.
BVSC calculated that the debt would increase by a net 385.37 trillion dong ($17.26 billion) this year, which may stem from the fiscal deficit, government bond issuances and government guarantees.  
Samsung SDS, an IT solutions and logistics unit of South Korean conglomerate Samsung Group, will partner with Hanoi-based Aviation Logistics Service JSC to set up a joint venture to enter the Vietnamese aviation logistics market, according to The Korea Herald.
Through the joint venture, Samsung SDS will provide its integrated logistics service, including global and inland transportation, warehousing service, and customs brokerage. For its part, ALS adds value to the deal through its local customer network and external sales force.
Around 1.088 million people, including 286,000 well-educated ones, in Vietnam could not find a job in the second quarter of this year, representing an unemployment rate of 2.29%, rising from 2.25% in the previous quarter, according to the Ministry of Labor, War Invalids and Social Affairs.
Japanese Risk-taking Firms Aim at Vietnam’s Realty Market
A large number of Japanese businesses are taking risks to conduct mergers and acquisitions (M&As) in Vietnam’s real estate market, said Masataka Sam Yoshida, senior managing director of Recof, at a conference on M&A held in Ho Chi Minh City last week.
Vietnamese real estate is catching strong attention from Japanese investors who were not interested in this sector some two decades ago, Yoshida noted, adding that Nippon enterprises are taking risks to invest in it, not only in Hanoi, Ho Chi Minh City, but also in central Vietnam.
Vietnam Credit Growth Reaches 8.54% in Jan-July
Outstanding loans in Vietnam expanded 8.54% in the first seven months of this year, compared to an 8.16% growth between January and June, according to the central bank.
Thailand Leads in Exporting Automobiles to Vietnam
Thailand ranked first among automobile exporters to Vietnam over the last seven months, with a volume of 18,837 units worth $343 million, representing increases of 55% in volume and 73% in value compared to the same period last year.
Since April this year, the volume of automobiles imported from China to Vietnam saw a strong tumble, not quite reaching 1,000 units in July, VNA reported, citing customs data.
Vietnam’s Core Inflation to Rise to Roughly 2% in 2016
Core inflation this year could increase slightly to roughly 2% from 1.7% last year, the National Financial Supervisory Commission (NFSC) forecast.
NFSC statistics showed that core inflation (excluding food, energy and commodities managed by the State but including health and education services) remained stable at less than 2% in the first seven months of the year.
Ministry Eyes Promoting Stable Realty Market
The construction ministry is drafting a project on management of the property market through six measures to support transparency and stability, Minister of Construction Pham Hong Ha was quoted by VNA as saying.
Ha said the imbalanced developments in supply and demand of luxury projects and housing projects for low-income earners are a problem, adding that oversupply of the former and shortage of the latter is forecast for next year.