Vietnam-Australia Trade Falls 19% y/y to $4.93 Billion in 2015
Trade value between Vietnam and Australia declined 19% year-on-year to $4.93 billion in 2015, with the former posting a trade surplus of $900 million, according to data of the General Department of Vietnam Customs.
Vietnam’s exports to Australia dropped 27.2% year-on-year to $2.91 billion because crude oil exports to that market plunged 69.4%.
Vietnam Firms Reap Big Profits from Outbound Investments
A number of Vietnamese enterprises have earned big from investing in foreign markets after years of attempts, according to the VnExpress.net newswire.
Military-run telecom Viettel Telecommunications Group booked revenue of $1.5 billion from overseas operations. The group last year expanded its operations to Tanzania and Burundi, bringing its overseas markets to 10 in total.
Other firms such as FPT Corp, PetroVietnam, Vinamilk (VNM) and BIDV (BID) have also posted positive performance in overseas markets last year.
Foreign Investors Look to Jump into Vietnam
Several foreign businesses are attentive to recent developments and want to shift their investments into Vietnam as they see big opportunities of Trans-Pacific Partnership (TPP) and other Free Trade Agreements (FTAs) in the country, according to the Vietnam News Agency.
Foreign-invested enterprises have taken advantage of cheap labor costs to promote their exports to big markets. The factor would become more favorable after the signing of the TPP and FTAs, said Do Thang Hai, deputy minister of industry and trade.
The deputy minister said this could be an opportunity for Vietnam to develop supporting industries which required big investment and high technology while reducing imports as well as increasing added value for domestically produced products.
Vietnam Banks Seek to Boost Capital to Meet Basel II Norms
Ten major Vietnamese banks including BIDV (BID), VietinBank (CTG), Vietcombank (VCB), Techcombank and ACB are trying to increase capital to meet the Basel II standards in compliance with the State Bank of Vietnam (SBV
Under the SBV’s plan, ten commercial banks will officially apply international bank management standards in accordance with Basel II governance standards from this month.
The banks, which will pilot capital and risk management methods according to Basel II standards, will complete the pilot by 2018 and the Basel II application will be then deployed at other commercial banks in the country.
No-frills airline Vietjet Air has signed contracts worth over $3 billion at the Singapore Airshow 2016, Asia’s largest aerospace exhibition.
Pratt & Whitney, a company under the US United Technologies Corp., will supply the newest line of PurePower Geared Turbofan engines for powering Vietjet Air’s A320 neo and A321neo aircraft.
The carrier also signed a deal worth $60 million with SR Technics group from Switzerland for component and maintenance services for its A320 and A321 fleet.
Vietnam Gasoline Price Touches Six-year Low
Vietnam’s Ministries of Industry and Trade and Finance on Thursday decided to cut the price of the most popular gasoline grade 92-RON by 960 dong (4 U.S cents) per liter to 13,750 dong ($0.61) per liter.
This is the lowest level since early 2009. This is the fourth reduction since the start of this year and the ninth consecutive cut since October 2015.
Now is a ripe timing for Japanese enterprises to boost investments in Vietnam, which is deepening its global integration and has a long relationship with the East Asian country, said Vietnamese Deputy Minister of Planning and Investment Nguyen Van Trung.
Mr. Trung made the statement at the signing ceremony of an agreement between his ministry and Japan’s Gunma Prefecture.
Japan’s budget carrier Vanilla Air, a unit of ANA Holdings, is considering Singapore, Thailand and Vietnam as possible new destinations, using Taipei as its second home base, the Nikkei Asian Review reported.
This will be the first time a Japanese low-cost carrier will expand operations using the so-called “beyond rights,” which allow an air carrier to offer flights between a second country and a third by using a plane that carried passengers to the second country from its home.
Ho Chi Minh City would need around $11.22 billion to purchase urban buses and develop related infrastructure, aiming to encourage the use of bus service and tackle traffic congestion, according to a proposal by Nguyen Bach Phuc, chair of the HCM City Association of Consultants in Science Technology and Management (HASCON).
Airbus has signed on the sidelines of the Singapore Airshow an agreement to provide flight and maintenance training services to Vietjet Aviation JSC (Vietjet Air) in Ho Chi Minh City, the European aircraft manufacturer said.
This is the first training agreement by Airbus to take place in Vietnam.
Vietnam Car Sales Drop 21% m/m in January
Car sales in Vietnam reached 23,165 units in January, increasing 16% from a year earlier, but declining 21% from December 2015, according to a report of the Vietnam Automobile Manufacturers’ Association (VAMA).
The sales included 14,090 passenger cars, 8,200 commercial vehicles and 875 special-purpose vehicles.