Emirates Appoints New Country Manager for Vietnam
Emirates, which started operating daily and nonstop flights between HCM City and Dubai in 2012, has appointed Haitham Al Battawy as the new country manager for Viet Nam from June 2016.
Haitham Al Battawy, who joined Emirates in 2006, will be responsible for overseeing Emirates' operations, optimizing revenue and expanding the airline's footprint within the country.
Salvepar Exits Real Estate Investments in Vietnam
Euronext Paris-listed investment holding company Salvepar is exiting three real estate assets located in Vietnam. The French firm, which had co-invested with Crescent Point in October 2014, hopes to garner a total of $13.9 million, according to Deal Street Asia.
The firm paid EUR5.4 million to acquire two resorts and an office building with a retail podium in the Southeast Asian country with Crescent nearly two years ago. The exits mark a 2.2x multiple and a 52.4% internal rate of return for the French firm.
Vietnam-focused Investment Firm Dragon Capital to Float Flagship Fund on LSE
Dragon Capital, one of the top investment management companies in Vietnam, is looking to float its flagship fund, the Vietnam Enterprise Investments Limited (VEIL), on the Main Market of the London Stock Exchange next month, according to Deal Street Asia.
The Vietnam-focused fund will hold an extraordinary general meeting on June 21 for the approval of certain issues related to the listing, expected early July, Dragon Capital said in a company announcement.
Vietnam Mulls Creating Stock Exchange for Startups
Vietnam’s Deputy Prime Minister Vuong Dinh Hue has asked stock market authorities to set up a stock exchange particularly for startups in the coming two to three years to help them find funding.
Such a stock exchange will provide much help for the startup ecosystem in the country as the majority of startups fail in their first years of operation.
Over $2.56 Billion of ODA, Soft Loans Committed in 6 Months
Total official development assistance (ODA) and concessional loans committed for Vietnam amounted to over $2.56 billion in the first half of 2016, surging 61% from a year earlier, the Vietnam News Agency (VNA) reported, citing the Ministry of Planning and Investment.
The disbursed ODA and concessional loans during the reviewed period declined 4% year-on-year to about $1.85 billion, including $1.75 billion of ODA loans and $100 million of non-refundable ODA.
Measures Proposed to Manage Public Debt Level
Public investments that exceed the state budget’s payment capacity should not be implemented, Finance Minister Dinh Tien Dung said, referring to it as one of a string of measures to ensure public debt stays within safety limits.
The government’s investment should be narrowed to go into key economic sectors, while conditions for government bailouts must be tightened, he was quoted by VNA as saying.
Vietnam Transport Firms up for ODA after Restructuring
Enterprises in the transport sector have become more eligible for official development assistance (ODA) after being restructured, officials say.
Many international organizations, including the World Bank (WB), Asian Development Bank (ADB) and Japan International Cooperation Agency (JICA), alongside sponsors from France, South Korea and China, have been funding traffic infrastructure projects in Vietnam.
However, strict requirements by the sponsors, related to financial capacity and experience, left hardly any chance for the participation of state-run companies in ODA-funded projects in the past.
SBV Chief Hails Support by JICA
State Bank of Vietnam
(SBV) Governor Le Minh Hung has thanked for the Japan International Cooperation Agency (JICA) for the latter’s support in developing human resources, the policy-making process and the overhaul of the local banking system.
At a meeting on June 7 with Chief Representative of JICA Vietnam Office Yasuo Fujita, the governor expected to receive more help from JICA in the ongoing projects.
The European Union (EU) launched a project today (June 8) to help Vietnamese phytopharmaceutical enterprises enhance competitiveness by bringing their products up to international standards.
The EUR2-million project named “Scaling up Ethical BioTrade Initiatives within phytopharmaceutical sector”, operational between 2016 and 2020, is jointly implemented by HELVETAS Vietnam, National Institute of Medicinal Materials and Center for Rural Economy Development, the EU Delegation to Vietnam said in a press release.
Vietnamese Prime Minister Nguyen Xuan Phuc has approved a plan under which the government will borrow 452 trillion dong ($20.1 billion) this year to offset its budget deficit and roll over existing debts.
The amount represents an increase of 55.4% compared with the government’s borrowing plan for 2013.
The State Bank of Vietnam’s tightened regulations on asset-liability management and real estate loans (Circular 06), albeit they are not as strict as those proposed in February, still be credit positive for Vietnamese banks because they will support liquidity and limit the banks’ exposure to the high-risk real estate sector, Moody’s has said in a report.
The new rules will help moderate banks’ credit growth in the system, particularly in the real estate sector, the credit rating agency said.
The Vietnamese government raised 147.04 trillion dong ($6.56 billion) from selling sovereign bonds in the first five months of this year, out of the 220 trillion dong ($9.8 billion) planned for this year, according to the Ministry of Finance.
Singapore-listed real estate developer Frasers Centrepoint Limited (FCL) has entered a deal with Hochiminh Stock Exchange-listed boutique developer An Duong Thao Dien Real Estate Trading Investment JSC (ADTD) to develop a residential-cum-commercial project in Ho Chi Minh City.
The two firms, through their joint venture in G Homes House Development, will carry out the project on a one-hectare residential site in Vietnam’s southern metropolis at an estimated cost of $85 million, FCL said in a press release filed on its website.
Singapore-based Great Eastern Holdings Ltd has sold its Vietnam business to FWD Life Insurance Company (Bermuda) Ltd, a unit of Hong Kong’s Pacific Century Group, for S$48.2 million ($35.2 million) in cash after nine years of operation in the country.
The value of the deal is higher than the Vietnam unit’s net book value of S$47.5 million as of May 31, The Strait Times cited Great Eastern’s filing to the Singapore Exchange as saying on June 7.