[Round-up] Panasonic to Invest More in Vietnam, Samsung Attracts Suppliers

Tuan Minh

21:45 08/01/2016

BizLIVE - Panasonic Vietnam will consider investing more in the country in the future. Two firms have won licenses for projects to provide components for the $1.4 billion Samsung HCMC CE Complex.

[Round-up] Panasonic to Invest More in Vietnam, Samsung Attracts Suppliers

Vietnam's GDP is expected to expand at an average of 6.3% in the 2016-2018 period, according to the World Bank.

Panasonic Mulls Investing More in Vietnam
Panasonic Vietnam will consider investing more in the country in the future, General Director Eiji Fukumori said in Ho Chi Minh City on January 7.  
Vietnam’s household electronics market is very promising thanks to a young population, socio-political stability, massive influxes of foreign direct investment and an estimated economic growth of 6.6% for this year, the executive added.
Thailand Investors Keen on Vietnam Shares
A large number of Thai retail investors visited the Hochiminh Stock Exchange (HOSE) in 2015 to explore opportunities to invest in Vietnamese stocks, said Le Hai Tra, deputy director of the HOSE.
The government’s removal of the foreign ownership cap in September provided a catalyst to net foreign buying in the year, which amounted to 2.04 trillion dong ($90.7 million), bucking the capital flight trend in the region, he added.
Banks in HCM City Pledge to Pump $9.4 Billion in Soft Loans in 2016
Up to 17 banks operating in Ho Chi Minh City have committed to provided 211.5 trillion dong ($9.4 billion) and $15 million worth of loans with preferential interest rates to businesses in the city in 2016, said a central banker.
In 2015, banks in the city provided 173.2 trillion dong ($7.7 billion) worth of soft loans.
Samsung Complex in HCMC Has First Vietnam Provider
Minh Nguyen Supporting Industry JSC has won a license to develop a high-tech research, application and production plant worth 1.6 trillion dong ($71.11 million) in Saigon High-tech Park to provide components for a Samsung complex in HCM City.
Its four-hectare facility is scheduled to be in operation in the second quarter of this year with an annual minimum capacity of 20 million products, mainly high-tech and high-quality plastics and metal fabrication.
With the project, the firm will become the first domestic supplier for the $1.4 billion Samsung HCMC CE Complex.
United More Sdn Bhd also won a license for its $20-million Aureumaex Precision Plastics Vietnam project, which that will produce plastic parts for LCD and LED TV panels for Samsung.
High-end Condo Sales in Hanoi Surge in 2015: CBRE
An estimated total 21,100 apartments were sold across the segments in Hanoi in 2015, according to a report of CBRE Vietnam.
High-end and luxury segments saw improvement in their shares of total sales over the quarters and ended the year at approximately 32% of total sales, which rate was historically below 20% in the past years.  
A total of 28,300 apartment units were launched during the year, up 70% as compared to 2014.  Notably, high-end apartments marked a come-back with an increase in the share of both new launch supply and sales volume. High-end apartments accounted for 28% in the total new launch units, compared to the 21% in the peak year of 2011 for new launches.
Vietnamese Turn Back to Chinese Mobile Devices on Security Woes
Vietnamese users are buying fewer Chinese phones after a series of recent discoveries about the security problems of Chinese-made products, local media reported.
Many problems with Chinese phones have been discovered recently. Lenovo computers were found with Lenovo Service Engine (LSE) which can steal users’ personal information. Meanwhile, in two cases discovered in Vietnam, users’ information and money was stolen from their accounts.
Vietnam Central Province Puts up Incentives for Air Carriers
The People’s Committee of central Thua Thien-Hue province has announced a series of preferential policies and investment incentives to investors who open new flights to Phu Bai international airport.
The applicable time is one year since investors open the first flight to the international airport.
The policies cover aviation transportation agencies with flight schedules in at least six months and two flights per month.
HCM City to Conduct More Studies on Plasma-Tech Facility
Ho Chi Minh City’s Department of Planning and Investment has proposed allowing Australia-owned Trisun Green Energy Co. to carry out a more comprehensive study for their waste-to-power manufacturing plant, the Vietnam Investment Review reported.
The project would be located at Northwest Solid Waste Treatment Complex in Ho Chi Minh City’s Cu Chi district and is designed to use cutting-edge plasma technology.
The Ho Chi Minh City-based company plans to spend around $520 million to equip the facility with plasma torches to achieve temperatures of 3,000-7,000 degrees Celsius to incinerate 2,000 tons of waste a day.
Airbus has chosen Aerospace Engineering Services JSC (AESC) as its partner to manufacture plane parts for the regional market, according the VCCI-run Dien Dan Doanh Nghiep (Business Forum) newspaper.
AESC will partner with Airbus to produce electric harness for A320/A321 jets which are widely present at Vietnamese airlines’ fleets.
A number of foreign sizable retailers have entered Vietnam and deepened their penetration with fast expansion to tap the rising middle-income class and consumerism in the country, heating up competition with large existing players such as Metro and Big C.
Seven years after entering Vietnam, South Korean conglomerate Lotte Mart has expanded its footprint in the Southeast Asian country by opening the first outlet in Hanoi at Mipec Mall, formerly Pico Mall, in early 2014.
Vietnam is among the countries having the strongest growth prospects, with its GDP expected to expand at an average of 6.3% in the 2016-2018 period, the World Bank has said in its “Global Economic Prospect” report.
“Contributing to the gains are rapid investment growth buoyed by robust confidence and FDI, consumption growth fueled by solid labor markets, and export growth as Chinese FDI projects in export industries come onstream,” says the report.