Vietnam to Seek for Parliamentary Approval for TPP in July
The Vietnamese government plans to subject the Trans-Pacific Partnership (TPP) accord to the National Assembly’s approval in the coming July.
The approval of the agreement will affirm Vietnam’s high political will, help boost reforms of market institutions, and support local businesses and citizens in preparing for its effect, said the government.
Nomura to Advise FPT on Selling Retail Operations
A consortium of Japan’s Nomura Securities and HCM City-based Viet Capital Securities will provide consultancy for FPT Corp (FPT) on selling the latter’s retail and distribution operations - FPT Shop.
The sale is expected to be completed this year, Nguyen The Phuong, deputy general director of FPT Corp, told the Dau Tu (Investment) newspaper.
FPT will reduce holdings in the retail arm to focus on its core businesses, which are information technology and telecommunications, Mr. Phuong added.
Giffarine Sets up Vietnam Joint Venture
Direct sales company Giffarine Skyline Unity Co plans to enter the Vietnamese market in the last quarter of this year.
It will establish Giffarine Vietnam with a group of Thai businessmen with experience in the country. Giffarine Skyline Unity will hold a 20% stake in the joint venture, which will have 10 million baht ($286,132) in registered capital, with the remaining 80% going to its partners.
"We see huge market opportunities in direct sales in Vietnam because of the big population and the country’s high economic growth compared with other ASEAN countries. Moreover, Thai products are popular among Vietnamese people,” said Nalinee Paiboon, president of Giffarine Skyline Unity.
Singapore’s GIC Buys in Masan Shares
Government Investment Corp. (GIC) of Singapore spent some 1.91 trillion dong ($85.36 million) on buying 27.63 million shares of Vietnamese private conglomerate Masan Group (MSN) on March 14.
GIC, which has invested in at least three other Vietnamese firms such as FPT Corp (FPT), Pan Group (PAN) and Vinasun (VNS), increased its holding in MSN to 37.9 million shares, or 5.08% stake.
StanChart PE Arm to Sell 25.21% Stake in Vietnam Agrobusiness
Standard Chartered Private Equity Pte (SCPE) plans to unload 16.93 million shares, or a 25.21% stake, of Loc Troi Group, which produces and distributes seeds and plant protection chemicals, to Marina Viet Pte. Ltd.
SCPE bought a 36% stake in Loc Troi Group, formerly known as An Giang Plant Protection Joint Stock Company, from VinaCapital and DWS Vietnam in 2014 for some $90 million.
VinaCapital Invests in Thai Hoa Hospital
VinaCapital Vietnam Opportunity Fund Ltd (VOF) said Monday it had invested 9.0 million in Thai Hoa International Hospital, to acquire a controlling stake in the healthcare provider.
The fund, which invests Vietnam-based companies, said Thai Hoa hospital currently has 200 beds, with the ability to scale up to 300 beds in Dong Thap province, south of Ho Chi Minh City.
Foreign Retailers Drive Rent Up
More foreign retailers such as France-based Auchan and U.S.-based 7-Eleven convenience stores will lead to competition for rental spaces, particularly in downtown HCM City, the Vietnam News Agency cited a report as saying.
“Good positions downtown will play a very important role in attracting customers, and we see the price for rent increasing after Lunar New Year,” Vo Thi Phuong Mai, Cushman & Wakefield’s retail service manager, was quoted by the Dau Tu (Investment) newspaper as saying.
Well-known fast-food and coffee brand names like McDonald’s, KFC, Starbucks, Trung Nguyen, Phuc Long, Kichi Kichi, Seoul Garden and Mon Ngon are expanding their businesses and have created pressure in the rental space, the report said.
WB Approves Vietnam Sanitation Project
The World Bank (WB) has confirmed a package of $239 million from the bank’s International Development Association and $46 million from International Bank for Reconstruction and Development to implement the second phase of the Coastal Cities Environmental Sanitation Project, a WB specialist has said.
The second phase will be implemented between 2016 and 2020 in four localities in central Vietnam.
Vietnam to Remain Regional Growth Outperformer: Moody’s
Vietnam will remain a regional growth outperformer on the back of robust manufacturing activity and strong foreign direct investment flows as the growth outlook of ASEAN economies is likely to diverge in 2016 and 2017, against the backdrop of subdued global demand, said Moody’s.
“The growth prospects of ASEAN's major export-orientated economies -- Singapore, Malaysia and Thailand -- will remain weaker than those of more domestic demand-driven economies, Indonesia and the Philippines, in 2016 and 2017,” says Rahul Ghosh, a Moody's Vice President and Senior Research Analyst.
Su Ngoc Khuong, associate director of investment at Savills Vietnam, told BizLIVE that Japanese investors are striving for a larger share in providing home products in Vietnam.
Besides the $1.2 billion Tokyo project in Binh Duong province, the middle-end segment has been the major target of M&A deals that have involved Japanese investors over the past two years.
This approach to the Vietnamese real estate market shows that they do not only aim at Japanese clients, but also Vietnamese ones.
Russian automakers Gaz, Kamaz and Sollers will establish a plant to assemble and produce cars in Vietnam, under a deal recently signed between Hanoi and Moscow, Russian government-run RT reported.
The Vietnamese plant will churn out buses, trucks, specialized vehicles, light commercial vehicles and passenger cars.
Vietnam’s gross domestic product reached $193.4 billion in 2015, translating into income per capita of $2,109, calculated in current prices, according to a government report.
The Economic Commission under the National Assembly (NA), Vietnam’s highest legislative body, has proposed capital be earmarked for a mega airport project adjacent to Ho Chi Minh City before its feasibility study (F/S) is finished.
The proposal was put forward by Nguyen Van Giau, head of the commission, at the opening of the last session of the NA’s 13th tenure in Hanoi on Monday.