[Round-up] Vietnam President to Visit Russia, Belarus, FDI Firms Dominate Phone Market

Tuan Minh

09:07 21/06/2017

BizLIVE - President Tran Dai Quang and his spouse will pay official visits to Russia and Belarus from June 26 to July 1. Vietnam produced $34.3 billion worth of cellphones and components for export in 2016, 99.8% of which were made by foreign enterprises.

[Round-up] Vietnam President to Visit Russia, Belarus, FDI Firms Dominate Phone Market

President Tran Dai Quang and his spouse will pay official visits to Russia and Belarus from June 26 to July 1. Photo: AFP

President Tran Dai Quang to Visit Russia, Belarus
President Tran Dai Quang and his spouse will pay official visits to Russia and Belarus from June 26 to July 1, the Foreign Ministry announced on June 20.
The visits will be made at the invitation of Russian President Vladimir Putin and Belarusian President Alexander Lukashenko.
FDI Firms Make almost 100% of Cellphones, Components in Vietnam
Vietnam produced $34.3 billion worth of cellphones and components for export in 2016, 99.8% of which, or $34.2 billion, were made by foreign-invested enterprises, according to the Vietnam Electronic Industries Association.
Foreign companies accounted for one third of the country’s electronic firms but they make up 90% of the total export revenue in electronics and 80% of the nation’s market share.
Vietnam Airlines to Hike Capital for Aircraft Purchase
Vietnam Airlines’ shareholders on June 20 approved a plan to issue an additional more than 191 million shares at 10,000 dong ($0.47) each for existing shareholders in a move to raise its capital base.
This offering is expected to bring about over 1.91 trillion dong ($84 million) for Vietnam Airlines to cover the purchase of Boeing 787-9 and Airbus A350-900 XWB airplanes and other business activities.
EVN to Wholly Control 6 Corporations
State-run Electricity of Vietnam (EVN) will hold 100% of registered capital at National Power Transmission Corporation, Northern Power Corporation, Central Power Corporation, Southern Power Corporation, Hanoi Power Corporation, Ho Chi Minh City Power Corporation, and National Load Dispatch Centre.
It will also hold more than half of charter capital at the power engineering consulting joint stock companies 1 and 2, the power generation corporations 1, 2, 3 and the Vinh Tan 3 Energy JSC, according to a prime minister-approved restructuring plan.
EVN will divest entirely from affiliates such as EVN Finance JSC, Thu Duc Electro Mechanical JSC, Dong Anh Electrical Equipment Corporation, Thuan Binh Wind-Power JSC, Power Engineering Consulting JSC 3 and 4.
Foreign Brands Find Vietnam Cosmetics Market Alluring
With double-digit growth annually, Vietnam has a promising cosmetics industry for foreign firms seeking to expand overseas as around 90 percent of cosmetics firms are distribution agents for foreign cosmetic brands, experts have said.
Vietnam’s cosmetics industry, where imports make up 90% of sales, posted estimated revenues at $1.2 billion last year, said Nguyen Van Minh, vice chairman of the Vietnam Essential Oils, Aromatherapy and Cosmetics Association.
Vinacomin Requested to Reduce Coal Stockpile, Cut Prices
Vietnam National Coal Mineral Industries Group (Vinacomin) must cut costs to become competitive and find buyers for its stockpile of 9.3 million tons of coal, Prime Minister Nguyen Xuan Phuc’s working group said.
At the meeting, Mai Tien Dung, head of the working group, minister and chairman of the Government Office, said that the PM wants Vinacomin to pay attention to five issues closely related to the group’s operations and the overall economic growth target of the country.
RON92 Petrol Price Hit YTD Low
The price of RON 92 declined by 862 dong per liter to 16,504 dong ($0.72) from 3:00pm on June 20 as decided by the Ministry of Industry and Trade and the Ministry of Finance, dropping to a new low year to date.
The price of E5 bio-petrol was also cut by 805 dong per liter, diesel 0.05S by 650 dong per liter, and kerosene by 738 dong per liter.
Among many candidate regions for the establishment of an overseas engine parts manufacturing factory, Hanwha Techwin selected Vietnam as a production base with a nice logistics environment and high cost competitiveness.
Hanwha Techwin is requesting the approval of its investment from the Vietnamese government. If approved, the tech company will start the construction of the plant in August and operate the plant beginning in the second half of 2018.
The controversial Tan Rai bauxite-alumina complex in Lam Dong province posted a profit of 50 billion dong ($2.2 million) in the first half of this year, after reporting a combined loss of whopping $163 million in the first three years of operation, according to state-run mining giant Vinacomin.
The ongoing diplomatic crisis between Qatar and other Gulf states has hampered the recovery of global crude oil prices, thus indirectly affecting the Vietnamese government's plan to exploit an additional one million tons of oil to meet its growth target, a think tank has said.
One of the short-term solutions of the government to support economic growth is to tap an extra one million tons of crude oil. “This plan will be feasible if crude prices rebound,” MarketIntello has said in its latest report.

TUAN MINH