[Round-up] Vietnam’s February Car Sales Rise 50% y/y, Foreign Firms Post $2.51 Billion Trade Surplus in Jan-Feb

Tuan Minh

07:14 10/03/2017

BizLIVE - As many as 17,621 automobiles were sold in Vietnam in February, soaring 50% from a year earlier. Foreign companies in reported a trade surplus of $2.51 billion in the first two month of this year.

[Round-up] Vietnam’s February Car Sales Rise 50% y/y, Foreign Firms Post $2.51 Billion Trade Surplus in Jan-Feb

Foreign companies in reported a trade surplus of $2.51 billion in the first two month of this year.

Vietnam’s Car Sales Rise 50% y/y in February
As many as 17,621 automobiles were sold in Vietnam in February, declining 13% from January but soaring 50% from a year earlier, the Vietnam Automobile Manufacturers’ Association (VAMA) has said in a report.
Vietnamese manufacturer Truong Hai Auto Corp (Thaco), which assembles trucks, buses and sedans, led the sales tally last month, followed by Toyota Motor Corp.
New Programs Support Tourism Startups in Mekong Region
The Mekong Innovative Startup Tourism (MIST) on March 9 announced two incubation programs to support innovative firms in tourism in Vietnam, Cambodia, Laos and Myanmar, the Vietnam News Agency (VNA) reported.
The tourism startup incubator program will accept business ideas in tourism technology forms as well as traditional models of startup businesses in the first stage.
Jetstar Pacific to Source A320 Components from AFI KLM E&M
Low-cost airline Jetstar Pacific has struck a long-term deal with Air France Industries KLM Engineering & Maintenance (AFI KLM E&M) under which the latter will provide component support for Jetstar Pacific’s Airbus A320 aircraft.
Under the contract, AFI KLM E&M will also provide Jetstar Pacific with repair services and a spares pool to ensure spare parts and necessary materials are ready for maintenance and repair work, according to VNA.
Vietnam to Accelerate Development of Logistics Services
Vietnam will accelerate the development of logistics services to facilitate trade and improve the economy’s competitiveness, according to an action plan which was approved recently by Prime Minister Nguyen Xuan Phuc.
According to the plan, the logistics sector is expected to contribute from 8-10% of the country’s GDP by 2025 with a growth rate of 15-20%, an outsourcing ratio of 50-60%, and logistics costs reduced to 16-20% of the GDP. Vietnam hopes to enter the top 50 countries in the logistics performance index (LPI) ranking.
South Korean Contractor Accepts Responsibility for Vinh Tan 4 Plant Incident
South Korea’s Doosan Heavy Industries & Construction Co., Ltd will take full responsibility for the recent fire incident at the construction site of Vinh Tan 4 thermal power plant, in the central province of Binh Thuan, VNA reported, citing the company.
Doosan pledged to replace all broken equipment, closely work with relevant authorities to care for victims of the incident and ask sub-contractors to obey proper safety procedure in the following works.
Foreign Firms Post $2.51 Billion Trade Surplus in Jan-Feb
Foreign-invested enterprises in Vietnam reported a trade surplus of $2.51 billion in the first two month of this year, versus a trade gap of $3.32 billion of domestic peers.
Overseas companies raked in $19.25 billion from export, up 16.1% year-on-year, while their import turnover increased 21.4% to $16.73 billion, customs data showed.
Despite capital outflows from emerging markets, overseas players have been buying in securities in Vietnam since the start of this year, bringing the value of their portfolios to an all-time high of $18.4 billion at the end of January, said Vu Bang, chairman of the State Securities Commission (SSC).
The amount would reach $20 billion if cash in their stock accounts is included, Bang said at a press meeting on Thursday.
After a surplus of $1.15 billion in January, Vietnam ran a trade deficit of $2.04 billion in February, resulting in a trade gap of $803 million in the first two months of 2017, according to customs data.
VinaCapital, the largest cash manager in Vietnam, will pour more money into companies of the consumer sector which has enjoyed robust growth in the country, the firm’s Chief Executive Officer Don Lam told the Vietnam Economic Times.
It will target companies operating in the food, beverage, building material, real estate, education and health industries as Vietnamese consumers’ living standard is on the rise, Lam said.
Vietnam ranks second behind Costa Rica in the Pioneering Locations Index within Cushman & Wakefield’s latest global Manufacturing Risk Index report, indicating the Southeast Asian country holds high potential for global manufacturers.
The Asian Development Bank (ADB) and the China-led Asian Infrastructure Investment Bank (AIIB) are ready to co-financing infrastructure projects in Vietnam in the near future, said Bambang Susantono, ADB’s vice president for knowledge management and sustainable development, at a press meeting on March 8.
Echoing Susantono, ADB Country Director for Vietnam Eric Sidgwick said representatives of the China-led multilateral institution met with ADB in Vietnam to discuss possible co-funding for projects in the time to come.

TUAN MINH