SCIC Divests from Downtown Hotel Operator
State Capital Investment Corporation (SCIC) on Dec. 22 sold out 3.6 million shares, or a 52.4% stake, of Kim Lien Tourism Joint Stock Company (KLC), the operator of Kim Lien hotel in downtown Hanoi
for a total outlay of one trillion dong ($44.3 million).
One domestic investor purchased all of the shares at a winning price of 247,200 dong ($12.17) each, some nine times higher than the offering price.
Domestic, Foreign Players Vie for Stake in Airport Developer
Domestic and foreign companies are vying to acquire a stake in state-run Airports Corporation of Vietnam (ACV), which runs 22 airports across the country.
Imex Pan Pacific Co., Ltd. (IPP) recently filed a document expressing its hope to buy a 5% stake of ACV. Meanwhile, state-controlled Bank for Investment and Development of Vietnam (BIDV) has recently asked the government to revise criteria for strategic shareholders of ACV so that the lender could acquire a strategic stake in the airport developer.
The foreign competitors of BIDV and IPP are French Aeroport de Paris (ADP) and two giant investors from Japan including Taisei and JATCO, according to baodautu.vn.
Stronger FDI Flow to Vietnam Hoped in 2016: Economists
Vietnam is expected to attract more foreign investment next year and in the future thanks to the opportunities and advantages resulting from free trade agreements (FTAs) to which the country is a party, experts have said.
Vo Tri Thanh, deputy head of the Central Institute of Economic Management (CIEM), the Trans Pacific Partnership (TPP) and the EU-Vietnam FTA would open great opportunities for Vietnam to attract additional foreign investment, especially foreign direct investment (FDI).
Seminar Held to Promote Vietnam-Thai Trade
A seminar promoting Vietnam-Thailand trade was held in the Cuu Long (Mekong) Delta city of Can Tho yesterday.
At the event, the Thailand Convention and Exhibition Bureau (TCEB) introduced the Thailand Extra Exhibition “Expand your business opportunities in ASEAN” and the Trade Promoter Reward Program to participants.
Vietnam Sees FMCG Growth in Q3
Fast-moving consumer goods (FMCG) in the six key cities in Vietnam grew 4.5% in Q3 2015, compared to a 0.9% expansion in the previous quarter, due to an increase of 3.6% in volume, according to a report by Nielsen.
C&W Appoints Vietnamese to Lead Valuation & Research
Cushman & Wakefield has appointed Vo Van Huu Phuoc as director of its Valuation & Research Department in Vietnam, replacing Mr. Jonathan Tizzard.
Hanoi Lending Grows 19.5% in 2015
Total outstanding loans of banks operating in Hanoi expanded 19.5% in 2015 from 2014 to 1,208 trillion dong ($53.7 billion).
Total mobilization, meanwhile, rose 21.8% year-on-year in 2015 to 1,451 trillion dong ($64.5 billion).
Inc. is interested in cooperating with Vietnamese startups as the country has huge potential, Google CEO Sundar Pichai
told local businesses in Hanoi on Tuesday.
“We would love to do more in Vietnam. We begin to engage with Android community. We are creating and training developers. It’s just a start. We want to get to understand the community better,” he said.
The consumer price index (CPI) in Ho Chi Minh City, Vietnam’s largest economic engine, are estimated to have slid 0.11% month-on-month in December, the government’s website cited the city’s statistics as saying.
The decline the index in December has been driven by decreases in prices of five of the 11 goods categories. Among them, the price of the transport category has dropped the most, by 1.83% month-on-month, due to two cuts in gasoline prices on November 18 and December 3.
ANZ-Roy Morgan Vietnam Consumer Confidence increased 2.5 points from November to a record high of 144.8 points in December, which is the highest score in Asia for the first time, according to ANZ Research.
The index is now well above its two-year average of 136.6, and is now a large 9.2 points above its figure in December 2014.
The rise in December was driven by improving confidence in the Vietnamese economy over the next 12 months and five years, said ANZ Research in a press release on Wednesday.
The CPI in Hanoi has edged up 0.89% year-on-year in 2015, according to data of the municipal statistics office.
The transport and post and telecommunications are the two goods categories that have seen their prices down in the year, while prices of the remaining nine categories have gone up. Among them, education services have posted the sharpest year-on-year increase of 4.37%.
Vietnam’s capital city has seen its gross regional domestic product (GRDP) up 9.24% in 2015, the municipal statistics office has said.
During the year, the industry sector has expanded 9.11% year-on-year, contributing 3.79 percentage points (ppts) to the city’s GRDP expansion, while the service sector has grown 9.91%, adding 5.34 ppts to the overall index.
Disbursed foreign direct investment in Hanoi have likely increased 8% year-on-year to $1.1 billion in 2015, the municipal statistics office has said.
Among notable disbursements of FDI have been $75 million by BNP Paribas – Hanoi branch, $46.6 million by Aeon Mall Himlam Co., and $30 million by Lotte Coralis, according to the office.
Rentals for Grade A and B office in Ho Chi Minh City are forecast to increase on the back of limited vacancies and stronger GDP growth and FDI flow, while the market in Hanoi is expected to be steady in the short term, a Savills Vietnam report has shown.
New Grade A and B supply in HCMC will be approximately 190,000 square meters (m2) by 2017. Approximately 77% will be located in the center business district (CBD). Whilst Grade A supply is limited, opportunities arise from new Grade B buildings, according to the report.