FPT Eyes to Increase Foothold in U.S. via M&As
FPT Corp (FPT), Vietnam’s largest software producer, plans to strike some mergers and acquisitions (M&As) in the U.S. on the scale of around $50 million to $100 million, part of its plan to beef up global revenue, said FPT Chairman Truong Gia Binh in an interview with the Nikkei Asian Review.
“The target for FPT is to reach $1 billion in [overseas] annual revenue by 2020. Our current revenue is about $200 million. In the next 15 years, we want to join the world’s top players,” Mr. Binh said.
Canada to Finance $9.6 Million for Vietnam’s Agriculture Development Project
Canada will provide CAD12.9 million ($9.61 million) for the Vietnamese Cooperative Enterprise Development (VCED) project in five years starting 2015, Canadian Prime Minister Justin Trudeau said last week.
The project aims to increase the competiveness of Vietnamese agricultural cooperatives, helping create economic opportunities for small-holder farmers, particularly female farmers, according to a statement filed on the prime minister’s website.
MobiFone Telecommunications Corporation (MobiFone), Vietnam’s second-biggest mobile network operator, has struck a deal to take over the pay TV arm of AVG Group.
Pham Nhat Vu, chairman of AVG Group, confirmed the pay TV brand has been sold but declined to elaborate on the value of the deal, the Saigon Times newspaper reported.
Three Vietnam Destinations Named among SEA Best Places
Three Vietnamese attraction spots namely Hanoi, Ha Long Bay and Hoi An have been chosen by the U.S.-based travel website www.touropia.com among the 29 best places to visit in Southeast Asia.
Vietnam SMEs Indifferent to ASEAN Economic Community
Small and medium-sized enterprises (SMEs) in Vietnam have paid little attention to the imminent formation of the ASEAN Economic Community (AEC), while larger companies with a “national brand name” are actively preparing for the regional integration process.
Le Thanh Hai, the deputy manager of the Vietnam Chamber of Commerce and Industry (VCCI)’s Enterprise Development Foundation, said in mid-November that many businesses were still little interested in the AEC, which will come into existence at the year-end.
Hanoi Youth Entrepreneur Association Chairman Le Vinh Son stated that roughly 80% of domestic SMEs were indifferent to AEC integration.
Over 500 executives of overseas Japanese companies based in leading markets such as the U.S., Russia, South Korea, China, Singapore and the EU gathered in Ho Chi Minh City last weekend to explore business opportunities with Vietnamese partners.
These companies are interested in finding Vietnamese partners in the sectors of real estate, services, tourism, trade, and opportunities for mergers and acquisitions, said Japanese real estate firm Shiny Real, a co-organizer of the event.
Pou Chen Corp, the world’s largest contract shoemaker, is moving a large portion of its operations from China to Vietnam to take advantage of lower labor costs and tariff cuts under TPP commitments.
Lending in HCM City May Grow 13% This Year: Central Banker
Credit growth at banks operating in Ho Chi Minh City may reach 13% this year as lending interest rates have dropped 1.5-2.5 percentage points across tenors, said Nguyen Hoang Minh, deputy director of the State Bank of Vietnam’ municipal branch.
Medium- and long-term loans, which account for 55% of total lending, presently have grown 20% from the end of 2014.
Total outstanding loans of banks operating in Hanoi at the end of November are estimated to have reached 1,193 trillion dong ($53 billion), growing 1% from October and 18% from December 2014.
Despite reductions in deposit interest rates, total mobilization at banks is likely to have risen 1.2% month-on-month and 16.2% from the end of 2014 to 1,383 trillion dong ($61.5 billion), the office said.
Vietnam’s capital city of Hanoi is likely to have incurred a trade deficit of $12.99 billion in the first 11 months of this year, widening from a gap of $11.84 billion between January and October.
Foreign-invested enterprises in the city have seen their exports up 3.8% year-on-year to $5.05 billion and their imports up 4.5% to $4.86 billion in the period, resulting in a trade surplus of $193 million.