The World Bank Group has debarred six Vietnamese companies each for one year for submitting fraudulent documents, to qualify for grants to phase out ozone-depleting substances, under the Vietnam HCFC Phase-Out Project, Stage I.
Under the Negotiated Resolution Agreements with the World Bank, the companies will not be eligible for any World Bank-financed contracts for one year.
HCM City Hosts Vietnam’s 1st Motorcycle Show
The Vietnam Motorcycle show was opened in the Saigon Exhibition and Convention Center in Ho Chi Minh City today [April 7], the first of its kind in Vietnam.
Eight brands namely Benelli, Ducati, Honda, Kawasaki, Piaggio, Suzuki, SYM and Yamaha are showcasing 170 motorbikes, hoping to give a push to the local market which has been saturated.
Hong Kong Seminar Highlights Investment Opportunities in Vietnam
A seminar was held in China’s Hong Kong Special Administrative Region on April 6 to introduce business and investment opportunities in Vietnam, according to the Vietnam News Agency.
At the event, Vietnamese Ambassador to China Dang Minh Khoi spoke about the economy in Vietnam as well as its policies to attract investment.
He underlined the geographical proximity and cultural similarities as advantages for Chinese investors, including those from Hong Kong, to explore business chances in Vietnam.
Banks in Vietnam Remain Upbeat
Most credit institutions in Vietnam expect their business performance to grow sustainably this year thanks to good liquidity and decreasing risks and bad debts, a survey by the State Bank of Viet Nam (SBV) shows.
According to the survey, 92% of the surveyed institutions said their business performance this year would be better than in 2015. Among them, 37.6% expected “considerable improvement.”
Up to 91.2% of the respondents believed that their bad loan ratios would stay below 3% by the end of this year.
Success Dragon to Buy 5-Star Vietnam Hotel to Expand Gaming Business
Hong Kong-listed Success Dragon International Holdings Ltd. last week announced that it planned to acquire a 45% stake in a five-star hotel in the Vietnamese coastal city of Da Nang
Success Dragon said it would pay a total consideration of US$14.13 million (HKD109.65 million) for the entire issued share capital in Vabis Building Consultants and Engineering Ltd.
The hotel, identified as the One Opera Da Nang Hotel, is a 24-storey, five-star hotel and commercial complex with basement car park in Vietnam’s fourth-largest city.
Keppel Land’s Subsidiary Exits Vietnamese Joint Venture
Palmsville Investment Pte Ltd, Singaporean developer Keppel Land Ltd’s subsidiary, has sold the 70% stake it held in the joint venture Quang Ba Royal Park JV Company Ltd to BRG Group for 492 billion dong ($22 million), subject to post-closing adjustment.
“The divestment is in line with Keppel Land Ltd’s strategy to continually recycle assets for higher returns,” says a release posted on the website of Keppel Corp.
Military-run Corp to Offer 4.3 Million Shares at IPO
Corporation 36, run by the Ministry of National Defense, will offer 4.3 million of its shares at the initial public offering (IPO) on the Hanoi Stock Exchange (HNX) on April 14, at a starting price of 10,100 dong ($0.44) each.
Under its equitization plan, Corporation 36 will have a registered capital of 430 billion dong ($19.2 million), in which the government will hold a 40% stake. Strategic shareholders and employees will hold 42.21% and 7.79%, respectively.
Continental Pacific Pours $144 Million in Vinmec
Continental Pacific Investment Company has invested 3.23 trillion dong ($144.4 million) to buy shares of Vinmec International Hospital JSC (Vinmec), run by Hanoi Southern City Development JSC (NHN) – a subsidiary of private-run conglomerate Vingroup (VIC).
NHN’s holding in Vinmec was cut to 80.4% as of December 2015 from 99% a year earlier, according to financial website NDH.vn.
Hanoi-based Thang Long GTC Joint Stock Company has offered to purchase the 65% stake that Vindemia SAS Co., a subsidiary of French grocery store Casino Group, holds in Big C Thang Long Supermarket International Trade and Service Company, local media reported.
Big C Thang Long Supermarket International Trade and Service Company, which runs the biggest Big C outlet in Hanoi, is a joint venture with a registered capital of $30 million, in which Thang Long GTC holds a 35% stake and Casino Group takes the rest.
HSBC has downgraded its 2016 and 2017 GDP growth forecasts to 6.3% and 6.6%, respectively, from the previous 6.7% and 6.8% after the local economy expanded by lower-than-expected 5.46% in the first quarter of this year.
The downward revision comes in partly because the State Bank of Vietnam (SBV)’s newly proposed administrative tightening measures are likely to keep credit growth contained, resulting in a moderation in investment compared with 2015, the bank said in a flashnote on Thursday.
Vietnam is still in a position to outperform its regional peers despite missing gross domestic product (GDP) growth expectations in the first quarter (Q1) of this year, ANZ says in its latest note.
The large miss in Q1 GDP growth at 5.5% year-on-year (y/y) was mainly due to the contraction in agricultural output. “There are increasing indications that agricultural exports may be in for a tough year on the back of prolonged effects of El Niño,” says Eugenia Victorino, ASEAN Economist at ANZ.
Vietnam’s newly-elected Prime Minister Nguyen Xuan Phuc will have to strive to repair economic problems as part of the legacy left by his processor Nguyen Tan Dung, who stepped down on April 6 after nearly 10 years in charge of the cabinet.