World Bank lifts 2015 GDP growth forecast for Vietnam to 6.2% from 6%
The World Bank has raised its gross domestic product growth forecast for Vietnam to 6.2% in 2015 and 6.3% in 2016 from the respective 6.0% and 6.2% projected in April, driven by strengthening domestic demand.
“The medium-term outlook for Vietnam is positive on balance but subject to significant downside risks. Growth is expected to be over 6% in 2015, underpinned by further recovery in domestic demand, in turn reflecting more robust private consumption and investment growth”, the World Bank said in an East Asia and Pacific update.
Compal to pour 500M USD in Vietnam plant
Compal Electronics Co, a Taiwanese contract laptop computer maker, has confirmed that it is about to invest a total of 500 million USD in its manufacturing plant in Vietnam’s northern province of Vinh Phuc to meet growing demand, Compal spokesman Gary Lu said.
Compal has started to manufacture a small number of smartphones in the province, and is to gradually expand the production capacity of the plant. The firm plans to inject 500 million USD into the plant in several installments and is to increase its labor force from 200 people to 2,000 people.
Compal in March 2013 suspended operations at the Vinh Phuc plant, citing incomplete supply chains for notebook products, infrastructure deficiencies and low operation efficiency.
Sapporo buys out JV in Vietnam, eyeing wider reach in local beer market
Japan-based Sapporo Holdings has acquired a 29% stake in Sapporo Vietnam Company from state-owned cigarette company Vinataba
for 8.28 million USD, making the company a wholly owned subsidiary, in a move to reach out to a wider share in the local beer market which is forecast to grow 40% in the next five years.
Sapporo Vietnam, a joint venture between Vinataba and Sapporo Holdings, was set up in 2010 with a brewer in Long An province, with an annual design capacity set to reach 150 million liters in 2019.
Japan’s ANA Holdings is looking to acquire a strategic stake in national flag carrier Vietnam Airlines, which went public last year, in a move to spur consolidation in Asia’s rapidly growing aviation market.
ANA could be pushing at an open door in Vietnam, where the government has been seeking a strategic partner to take a stake to help the airline expand, after selling 5% to investors last year in an initial public offering. Vietnam Airlines plans to sell up to a 20% stake to a partner.
Vietnam licenses 203 foreign institutions to trade securities in Jan-Sept
The Vietnam Securities Depository granted a license to 35 foreign institutions to trade local securities in September, bringing the total figure to 203 in the first nine months of this year, after the government decided to lift the cap on overseas holdings in public companies. The agency also licensed 62 foreign individuals to join the local stock market last month.
Offshore investors have increased interest in Vietnamese equities after the country posted faster economic growth rates and is reportedly to be among the biggest beneficiaries of the U.S.-led Trans-Pacific Partnership pact.
Vietnam hikes gasoline price on Oct 3
Vietnam’s Ministries of Industry and Trade and Finance on October 3 lifted the cap on retail price of RON 92 gasoline, the most popular grade in Vietnam, by 189 VND per liter or 1.05% to 18,139 per liter as prices of petroleum products crept up in the global market.
Regulators, meanwhile, reduced the prices of fuel oil and kerosene by 163 VND a liter and 74 VND a liter, respectively.
Since the start of this year, the two ministries have made six increases to gasoline prices with a combined 5,840 VND a liter while slashing the prices of the product seven times with a total of 5,590 a liter.