Ivanhoe Pictures has partnered with Pacific Horizon Pictures to devise a slate of local-language films in Vietnam.
Among their first planned movies is a remake of Indian survival drama “Trapped.” The pair are also close to a joint acquisition of remake rights to Colombian thriller “The Hidden Face.” The variety.com – a subsidiary of Penske Business Media, LLC reported.
The ambition is for the two companies to co-develop material, that Ivanhoe will co-finance and which Pacific Horizon would executive produce for audiences in Vietnam.
Pacific Horizon is a startup production company founded by Louie Nguyen investor and producer at HK Films (“Sweet Twenty,” “The Housemaid”,) and by veteran U.S. producer Rick Ambros. It has offices in Ho Chi Minh City and Los Angeles.
“(Pacific Horizon Pictures’) insight and understanding of the Vietnamese film industry is invaluable and we are eager to continue expanding Ivanhoe’s local language slate with this exciting partnership,” said John Penotti, president and CEO of Ivanhoe.
Ivanhoe’s upcoming projects include the Warner Bros. co-production “Crazy Rich Asians,” set for release in the U.S. on August 17, 2018; and the 3-part Netflix series “Ghoul,” a Hindi-language thriller produced by Ivanhoe, Blumhouse Productions, and Phantom Films set to premiere on Netflix India in 2018. Ivanhoe also has a four-year, multi-picture co-financing pact with Fox International Productions (FIP) to produce local-language films in India, South Korea, China, Japan, and Taiwan.
Vietnam manufacturing growth picks up in April with sharp increase in new orders and output, particularly strengthening firms in export markets, according to an industry gauge. A report by Nikkei mentioned.
The Nikkei Vietnam Manufacturing Purchasing Managers’ Index, or PMI, rose to 52.7 in April, up from 51.6 in March. A reading above 50 signals an improvement, while one below 50 points to a contraction in manufacturing activity.
With the rise of client demand, production rose at faster rate. Employments growth has been registered in 25 successive months. However sharp input cost inflation contrasts with weak pace of rise in output prices.
Andrew Harker, Associate Director at HIS Markit which compiles the survey, said “the ability of Vietnamese manufacturers to secure new business was at the forefront of the latest PMI survey, with new export business up particularly sharply in April.” Harker adds that their “competitive pricing” explains their “will to accept reduced margins in exchange for securing greater volumes of new work.”
Best Western Hotels & Resorts has plans to open a new BW Premier Collection beachfront resort in Vung Tau, Vietnam.
The Saint Simeon Resort, BW Premier Collection is currently under construction in Ba Ria-Vung Tau province on Vietnam’s south-central coast. The 135-room hotel is opening in the first quarter of 2019 and is near Ho Chi Minh City and Long Thanh International Airport.
“Best Western continues to expand across Asia at a rapid pace–introducing new brands and welcoming new hotels tailored to meet the needs of today’s travelers,” Ron Pohl, SVP and COO for Best Western Hotels & Resorts, said in a statement. “We’re excited to bring the BW Premier Collection brand to Vietnam, as its hotels are known for their local flare and upscale amenities-delivering a truly unique guest experience. We look forward to Saint Simeon Resort becoming a preferred hotel for travelers visiting the beautiful port city of Vung Tau.”
“Vietnam is an important market for Best Western and we are delighted to secure yet another fantastic property in such an exciting destination-Vung Tau,” Olivier Berrivin, Best Western’s MD of international operations, Asia, said in a statement. “With its prime beachfront location and close proximity to Ho Chi Minh City, we fully expect this elegant resort to become extremely popular with local and international guests alike.”
Saint Simeon Resort will be the company’s fourth BW Premier Collection property in Asia. The brand’s first property in the region—the Hotel Nagasaki, BW Premier Collection in Japan—opened in 2017. Amaranth Suvarnabhumi Airport recently joined the BW Premier Collection portfolio in Thailand. Construction is also underway on the brand’s second Thai hotel, BluPhere Pattaya, BW Premier Collection. The property is slated to open in 2019.
The Saint Simeon Resort will also be Best Western’s second property in Vietnam. The group also has plans to develop a Best Western Premier hotel and resort in the southern island of Phu Quoc. The 565-room Best Western Premier Sonasea Phu Quoc is expected to open in January 2019.
PV Gas forecasts lower earnings for 2018
The PetroVietnam Gas Corporation (PV Gas), a subsidiary of the Vietnam Oil and Gas Group (PetroVietnam), is targeting 55.7 trillion VND (2.47 billion USD) in its total revenue and 6.43 trillion VND (283.2 million USD) in post-tax profit for 2018, heard the company’s annual shareholder meeting last week. — VietnamPlus
Vietnam’s Vingroup drives industrialization with diversification
Vietnamese property developer Vingroup is fast becoming one of the country’s most diverse conglomerates, even as it still relies on the real estate business for the bulk of its sales. — Nikkei Asian Review/ VI
EC delegation to inspect IUU fishing in Vietnam
The delegation will inspect the country’s implementation of the EC’s nine recommendations related to the fight against illegal, unreported and unregulated (IUU) fishing. — VietnamNet Bridge
NSRP releases first commercial petroleum product
Nghi Sơn Refinery and Petrochemical LLC (NSRP) in Nghi Sơn Economic Zone in Thanh Hóa Province launched its first shipment of refined product, GASOLINE RON 92 (MOGAS92), on May 1. — Viet Nam News
Recent Agribank thefts may have featured skimming devices
A set of skimming devices includes an ultra-small camera set up with a sighting on the ATM’s keypad, a card skimmer inserted into the card slot, and a keypad skimmer placed over the ATM’s keypad. — VietnamNet Bridge
Slovakia May Have Assisted in Vietnam’s Alleged Abduction of Oil Executive: Reports
Slovakia may have inadvertently assisted Vietnam’s secret police in spiriting away a former state oil executive who was allegedly kidnapped from Germany, according to media reports and sources, who say fallout from the incident has “cast a shadow” on a trade deal between Vietnam and the EU. — Radio Free Asia
Goods, services sales value in April up 9.5%
The total retail sales value of goods and services in April was estimated at more than VND 350.5 trillion (US$ 15.4 billion), 1.7% higher than last month and 9.5% higher than in the same period last year, according to a report by the General Statistics Office (GSO). — Nhan Dan Online
Vietnam’s largest casino to open gates next year
Macau’s biggest junket operator Suncity Group Holdings Ltd. is undaunted in its ambition to start operating Vietnam’s largest casino in the central province of Quang Nam. The project is expected to be launched next year. — VietnamNet Bridge
From Doi Moi reforms to Vietnamese billionaires
After more than 30 years of Doi Moi, the Vietnamese economy has begun to see its own local billionaires who while contributing to national development, are in need of a facilitating environment to continue prospering. — VietnamNet Bridge
Salinity intrusion is leading to freshwater troubles in coastal Vietnam
In recent years, increased salinity intrusion in the Mekong Delta, due to changing climate and fluctuations in river water levels especially during the dry season in coastal regions, has affected agriculture especially rice farming livelihoods. — Mekong commons
HCM City to get high-quality farm products from Long An
Agricultural businesses in the Mekong Delta province of Long An are looking at ways to increase supplies of their products to Ho Chi Minh City, the largest economic centre in the southern region. — VietnamPlus
ACA Investments pours extra $100 million in retail and logistics ops
ACA Investments, Japan’s leading fund management company and an affiliate of Sumitomo Corporation, will spend $100 million on conducting M&A deals in the retail and logistics sectors in order to increase its presence in Vietnam. — VietnamNet Bridge
Eximbank embattled after scandals
Eximbank is facing an uphill battle to regain the trust of its shareholders and depositors, following a series of embezzlement and fraud scandals. — VietnamNet Bridge
S Korea appoints ex-Samsung executive as Vietnam ambassador
South Korea has been criticised for naming Kim Do-hyun, a former Samsung executive, as the country’s new ambassador to Vietnam, home to one of the electronics group’s biggest operations. — Financial Times
Vietcombank breaks its earning record of all time Bank for Foreign Trade of Vietnam (Vietcombank, HSX: VCB) continued its impressive performance in the first quarter of 2018, posting pre-tax profit record high of more than 4.3 trillion VND (189.4 million USD). — Vietnam Insider
The number of foreign visitors arriving in Vietnam in April was estimated at 1.3 million, raising the total figure for the first four months of 2018 to 5.5 million, up 29.5% over the same period last year.
The Nhan Dan Online, a local news channel reports. Foreign tourists visiting Vietnam in April rose 25.2%, attracted by a wide range of events such as the Festival of Vietnamese Ethnic Groups in Hanoi, and the Asian Food and Culture Festival in Hanoi and Quang Ninh province.
Of the total visitors in the first four months, 4.1 million came from Asia, with Chinese tourists topping the list at 1.7 million, followed by 1.1 million from the Republic of Korea.
Visitors from Europe were estimated at more than 843,000, of which Russian tourists accounted for the largest share at an estimated 262,000.
The numbers of tourists coming from the Americas and Oceania were 357,000 and 163,000 respectively.
During the period, nearly 15,000 Africans tourists also visited Vietnam, an annual increase of 22.5%.
Bank for Foreign Trade of Vietnam (Vietcombank, HSX: VCB) continued its impressive performance in the first quarter of 2018, posting pre-tax profit record high of more than 4.3 trillion VND (189.4 million USD).
Vietnam News Agency reported. According to the accumulated financial report of Vietcombank, which had posted a record pre-tax profit of more than 11 trillion VND (484.5 million USD) last year, its pre-tax profit in the first quarter of 2018 skyrocketed by 59.3 percent against the same period in 2017, the highest quarterly growth rate gained by the bank so far. With this surge, the bank met one third of its annual plan by the end of March.
In the first quarter of this year, the bank’s credit segment brought in more than 6.19 trillion VND (272.6 million USD) of net profit, up 17S.5 percent compared to the same period last year. Its net profit in the service segment posted a surge of 35.5 percent to 881 billion VND (38.8 million USD).
Net profits from other services accounted for 1.6 trillion VND (70.4 million USD) from January to March, 2.8 times higher than the first quarter of 2017, while capital contribution and share acquisition were estimated at 351 billion VND (15.4 million USD), 3.5 times higher than that of the first quarter.
Vietcombank set aside 66.71 trillion VND (2.93 billion USD) in the first quarter to buy bills issued by the State Treasury and the State Bank of Vietnam, raising its total value of the investment channel to 68.71 trillion VND (3 billion USD) by the end of March.
The bank’s equity was at 56 trillion VND (2.46 billion USD) as of March 31, 2018, up 6.7 percent compared to the start of the year. Its deposits were at 731 trillion VND (32.2 billion USD), up 3.2 percent, while lending rose by 6.29 percent to 577.6 trillion VND (25.44 billion USD).
The bank expects its total assets to grow by 14 percent and capital mobilisation and credit to grow by 15 percent, while keeping bad debt to less than 1.5 percent.
Advertising company WPP PLC (WPP.LN) said Tuesday that it has acquired full ownership of a number of agencies in the Asia-Pacific region for an undisclosed price in a share swap with Japan’s Dentsu Inc. (4324.TO). MarketWatch reports.
WPP said it has acquired full control of the Y&R and Wunderman joint-venture agency assets across Southeast Asia and in Taiwan, as well as Dentsu Sudler & Hennessey in Japan.
The deal includes Y&R in Vietnam, Malaysia, Singapore and Thailand; as well as Wunderman in Taiwan and Thailand, said WPP.
In exchange, Dentsu has acquired full control of the Dentsu Y&R and Wunderman Dentsu agencies in Japan, the Japanese company said in a statement.
WPP said the deal marks its commitment to expanding in key markets via a “strong pan-Asian network offering,” and that its Asia-Pacific companies generate revenue of almost $4.8 billion, including associates.
On Monday, WPP said a strategic review of its assets is underway in the wake of the surprise exit of former chief executive Martin Sorrell due to an internal probe into an allegation of personal misconduct.
Joint Chief Operating Officer Mark Read told analysts in a call on Monday that selling down some of WPP’s minority stakes is an option to reduce the company’s debt.
From medicine to cars, property developer muscles into ever more sectors
Vietnamese property developer Vingroup is fast becoming one of the country’s most diverse conglomerates, even as it still relies on the real estate business for the bulk of its sales. A report by Atsushi Tomiyama, Nikkei staff writer mentioned on May 01, 2018.
The company in early April announced its entry into the pharmaceuticals market, with plans to start building a plant this summer. Earlier, in March, it announced the acquisition of a feed company and plans for setting up a university. Its automobile manufacturing venture is moving forward with engineer training and international tie-ups.
For the Vietnamese economy, the rise of giants like Vingroup is driving growth and industrialization. But it is also a case of the rich getting richer, while smaller businesses often struggle to find their place, raising questions about sustainable growth.
Vingroup’s real estate operations generated 70% of its total sales last year, but the company is reaching far beyond its roots. With its pharmaceuticals brand Vinfa, the company plans to sell traditional Vietnamese herbal medicines while also handling Western drugs through partnerships with European, American and Australian players. The planned factory and research facility, to be located in the northern province of Bac Ninh, will entail a $97.7 million investment. Construction of the first phase of the 10-hectare development is to start in July at the earliest.
Apart from pharmaceuticals, Vingroup is moving into production of health food and supplements, to be sold at its Vinmart supermarkets and Vinmart Plus convenience stores. The company sees a chance to capitalize on increased health consciousness among Vietnamese consumers.
Vingroup made its bet on animal feed through organic farming subsidiary VinEco, acquiring a 60% stake in local company Viet Thang Feed. Around the same time, the conglomerate announced it would join the higher education market by opening a school called VinUni University. On April 3, Vingroup signed a strategic cooperation agreement with U.S. based Cornell University and the University of Pennsylvania, paving the way to offer education up to global standards.
Vinschool, the company’s education business, has been offering elementary and secondary schooling since 2013. Establishing a university has been a prized goal. VinUni University is to have three departments — business, industrial technology and health sciences — and the group hopes for synergies with the Vinmec hospital arm it created in 2014.
The group’s entry into the auto industry, announced last September with the support of the government, was met with serious skepticism due to the still-nascent state of domestic supply chains. Yet the VinFast project looks to be proceeding well: In January, the company bought a license from BMW to use proprietary manufacturing technology.
The details of the arrangement remain unclear, including the sum paid, but Vingroup appears set to absorb knowledge from a global automaker. Some Japanese industry executives believe the license may relate, in part, to key components like suspensions and engines.
As part of its push into the car business, Vingroup established a technical training center in the special economic zone of Hai Phong in early February. It is to become operational in August. The two-and-a-half-year program will offer two streams for electronics and industrial machinery training, including coursework and internships.
The plan is to accept 200 trainees by the end of its first fiscal year. Upon completion of the course, students will have certified skills equivalent to those needed for a German factory, thanks to cooperation with the German Chamber of Commerce and Industry.
VinFast is to start out producing electric motorcycles, due for release in the July-September quarter of 2018. In that quarter of 2019, the company intends to roll out Vietnam’s first two “national car” models, a sedan and an SUV. If all goes according to plan, this would bring Vietnam closer to the government’s publicized goal of national industrialization by 2020.
Vingroup has come a long way from its beginnings as a small real estate company in 2001. Now a giant corporation, it is powering the economy alongside the likes of VietJet Air owner Sovico Holdings and real estate company FLC Group — and helping to offset the slow privatization of state-owned enterprises.
The families behind these conglomerates are reaping the rewards. The total assets of the top 10 wealthiest owners of publicly traded companies were worth about 270.8 trillion dong ($12 billion) at the end of 2017, according to local newspaper Vietnam News, up 2.8 times from 96 trillion dong a year earlier. Vingroup’s family topped the list, followed by those behind Sovico, FLC and steelmaker Hoa Phat Group.
Many rich-listers leverage political connections as they expand their businesses. This leads to powerful companies generating more and more wealth. On the flip side, however, newer ventures appear to be left in the cold, struggling to raise funds and find talent.
Indonesia may file a complaint at the World Trade Organization (WTO) over Vietnam’s recent decision to tighten regulations related to car imports. Through Decree No. 116/2017/ND-CP on Overseas Vehicle Type Approval (VTA) (which has been in effect since 1 January 2018), Vietnam requires car exporters to obtain VTA certification first (from authorities in the exporting nation) before being allowed to export cars into Vietnam. This VTA details incoming vehicles’ quality, safety and environmental protection.
Indonesia Investment reported. Through the new regulation Vietnam requires international standards related to vehicle safety and emissions for incoming cars. And while Vietnam acknowledges that cars manufactured in Indonesia comply with the local Indonesian National Standard (SNI), it believes that the SNI is not fully in accordance with the desired international criteria. Indonesia, however, emphasizes that the local standard complies with international standards because both standards use the same process and test equipment.
Therefore, Indonesia regards the new Vietnamese regulation as an example of a non-tariff barrier that undermines the goals of the ASEAN free trade area (AFTA). The new regulation is also part of an effort by Vietnamese authorities to boost the development of Vietnam’s domestic automotive industry (where the Vingroup is eager to develop the country’s first national car).
In late February an Indonesian delegation – consisting of officials from the Ministry of Trade, Ministry of Transportation, Ministry of Industry, Ministry of Foreign Affairs, and the Indonesian Automotive Industry Association (Gaikindo) – visited Vietnam in an attempt to persuade Vietnam authorities to discontinue the new regulation. However, Vietnam said it would not withdraw the regulation.
Since the implementation of the regulation on 1 January 2018 shipments of Indonesian completely built up (CBU) units to Vietnam have ceased completely. Part of the problem is that Indonesian authorities only issue a VTA for the domestic market (based on domestic road conditions), not for export markets. A bigger problem is that the new regulation orders all car units that are shipped to Vietnam to undergo a safety and emissions check (prior to the implementation of the new regulation only the first shipment was required to undergo such tests).
In full-year 2017 Indonesia exported a total of 15,101 CBU units to Vietnam (the majority being Toyota and Daihatsu units). This made Indonesia the third-largest car exporter to Vietnam (with a market share of around 13 percent). Oke Nurwan, Foreign Trade Director at Indonesia’s Trade Ministry, stated earlier that the new regulation would lead to missed income for Indonesia of around USD $85 million in the December 2017 – March 2018 period.
Last week, however, it was reported that Toyota Motor Manufacturing Indonesia obtained a VTA and can therefore resume shipments of car units to Vietnam (after months of zero exports). The company plans to export its Fortuner model, a sport utility vehicle, to Vietnam soon. This example shows that it is not impossible for Indonesian authorities to issue a VTA for a local exporter.
Vietnam’s steel industry has high potential to reach a production growth rate of 22 percent and expand export markets this year. Vietnam Plus reported.
However, this will be possible only if it overcomes difficulties such as trade defence lawsuits and high imports, according to the Vietnam Steel Association (VSA). The sector faced 30 trade defence lawsuits from other countries in 2017, many of which have continued into 2018.
These include anti-dumping cases for cold-rolled stainless steel, steel plates and H-shaped steel as well as trade defence cases related to pig iron, long steel and colour coated steel sheet.
By March 2018, Vietnam had exported 446,000 tonnes of steel products for 321 million USD, up 38 percent in volume and 63% in value compared to the same period last year.
The quality of Vietnamese steel has met the demand of choosy markets, such as the United States, Australia and Europe, rising to top position in regional and world markets.
However, in the first few months of 2018, Vietnam imported 1.2 million tonnes of steel worth 808 million USD, a drop of 5% in volume and an increase of 22% in value.
VSA Vice President Nguyen Van Sua said despite a fall in imports and rise in exports, the volume of imported steel remained high.
According to him, the domestic steel industry was still dependent on imports as the domestic production process was yet to be synchronised, along with low capacity in producing steel for the mechanical manufacturing sector. Meanwhile, domestic firms are unable to produce many input material products, such as hot-rolled steel and pig iron, thus making production slow and expensive.
With the recent market recovery and extensive economic integration, especially the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and the upcoming signing of the free trade agreement between Vietnam and the European Union, the Vietnamese steel sector has the opportunity to expand markets, making the growth target of more than 20 percent feasible.
But the fact is when Vietnam increases steel exports, the import market will strengthen trade defence measures.
Mr Tran Tuan Duong, General Director of Hoa Phat Group, said Vietnamese firms should maintain the domestic market, while for export activities, they should adhere to the regulations of free trade agreements and actively cooperate with other countries when faced with anti-dumping lawsuits to avoid losing markets or paying high taxes.
According to Mr Duong, market protection solutions are not enough and businesses themselves should enhance their competitiveness and make use of all opportunities for development.
A representative of the Vietnam Steel Corporation said obstacles to exports mostly came from trade barriers and defence measures of importing countries. Therefore, the corporation would continue to improve efficiency in production and business by enhancing market forecasts and having flexible production and business activities according to market development.
Despite the lack of capacity and experience, Vietnamese firms could still fight trade defence in the context of integration, the representative said.
VSA highlighted the need for cooperation with countries in the face of trade defence problems, along with the development of professional teams to deal with investigation and data gathering to protect steel firms in domestic and foreign markets.
The state-owned Qatar Petroleum (QP) has signed an agreement to supply Vietnam with up to two million tonnes of LPG and Naphtha per year for a period of 15 years, the company’s management announced in statement today. middleeastmonitor.com reports today, April 30, 2018.
The agreement was signed between the Qatar Petroleum for the Sale of Petroleum Products Company Limited (QPSPP) and Long Son Petrochemicals Company Limited (LSP), a subsidiary of Vietnam’s Siam Cement Public Company Limited
The long-term agreement will commence with the start of Vietnam’s first green-field petrochemical complex, which is being constructed on Long Son Island, 100 km southeast of the country’s Ho Chi Minh City. The facility is expected to begin production in 2022, according to QP’s statement.
“This agreement has a significant importance for us, as it is the first time that Qatar is selling LPG and Naphtha on long-term basis, and for the first time, directly to Vietnam,” QP’s CEO, Saad Bin Sheridan Al-Kaabi, said.
Kaabi added that the deal “reflects the trust of the markets and customers in QP,” stressing that it “will expand Qatar’s footprint into the growing markets of Southeast Asia.”
On 5 June 2017, Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Doha, accusing it of “supporting and financing terrorism.” Qatar denies the allegations.
Economists say that Gulf state’s economy has notably recovered from the boycott and is becoming one of the region’s fastest-growing.
Although the blockade has disrupted the Gulf state’s imports and triggered withdrawals of billions of dollars of deposits from Qatari banks, it developed new trade routes, deposited state money in its banks and helped local firms to develop output of some key goods instead of importing them.
Crew members have reportedly been suspended after a Vietnam Airlines A321 landed on a runway that was closed and under construction at Nha Trang Cam Ranh International Airport.
Airlive reported that the incident occurred on flight VN7344, from Ho Chi Minh City to Cam Ranh in Vietnam.
Passengers were held up after the plane landed on a runway that was not yet connected to the airport. The aircraft also suffered minor damages.
A total of 203 people were on board, including seven crew members and the captain, who was US citizen working for Vietnam Airlines since January 2018.
According to Airlive, both pilots have been suspended while an investigation into the incident is underway.
Passengers and luggage were transported to the airport, but it was unclear how the plane was recovered.
Vietcombank to offload 10% stake to maximum ten foreign investors
Vietcombank, Vietnam’s largest lender by market value, will offload a 10 per cent stake to a maximum of ten foreign investors in the first half of this year after it received government approval for the sale, it announced at its recent annual shareholders’ meeting. — DealStreetAsia
Techcombank to start trading on HoSE from June 4
Vietnam Technological and Commercial Joint Stock Bank (Techcombank) is poised to commence trading on the Ho Chi Minh City Stock Exchange (HoSE) on June 4 following its nearly $1-billion IPO, the bank announced on April 27. — DealStreetAsia
What’s Behind Vietnam’s More Vocal Stance Against China?
Vietnam sounded off twice last week against China over a long-festering maritime sovereignty dispute, after months of silence. But analysts expect to see angry phases like this one alternate more often with silent ones. — VOA
Fuel price as main driver to the CPI hike in April
Vietnam’s consumer price index (CPI) in April moved 0.08% against last month, pushing up the four-month figure by 2.8 percent year-on-year, reported the General Statistics Office (GSO) on April 29. — The Hanoi Times
Vietnam loses as CBN supports cashew exporters
Vietnam processing firms are closing shops as cashew exporters in Nigeria are exploiting new markets to boost their income. — New Telegraph Online
Vinhomes seeks up to $1.4b in Vietnam’s biggest equity issue
Vinhomes JSC, the residential property developer of conglomerate Vingroup JSC, launched an equity issue of up to $1.4 billion on Monday, making it the country’s biggest-ever IPO in a market, drawing strong interest from global and local funds. — DealStreetAsia
High inflation risk looms ahead
Authorities should closely watch on inflation to timely take appropriate measures as it is under pressure to rise significantly next time, experts suggested. — The Hanoi Times
Vietnam Airlines mulls cargo business
Vietnam Airlines Corp., which has been transforming its fleet with new wide-body planes and expanding services, is looking to further boost growth by starting a dedicated cargo unit. — Manila Bulletin
Over 14,500 new enterprises established in Vietnam in April
The number of newly established Vietnamese enterprises in April was 14,510, with the total registered capital at VND133.5 trillion (US$5.87 billion), according to the General Statistics Office (GSO). — Nhan Dan Online
15 billion USD projects proposed for Van Don
Businesses proposed to develop three large-scale projects, expected to cost about 10-15 billion USD, in Van Don special economic zone during a recent meeting with Quang Ninh’s leaders. — VietnamPlus
Another Record Stock Listing Underway In Vietnam
The residential property division of Vietnamese conglomerate Vingroup, Vinhomes, launched an equity issue of up to $1.4 billion on April 30, making it the country’s biggest-ever IPO, with a lot of interest from global and local funds, Reuters reported. — Investvine
Cai Mep – Thi Vai port complex expected to become the economic centre of the south
The party secretary of the southern province of Ba Ria-Vung Tau, Nguyen Hong Linh, has proposed that the Ministry of Transport and the Government consider developing Cai Mep-Thi Vai Port complex and Long Thanh international airport into the economic centre of the south. — Bizhub
Mitsubishi Motors to resume exports to Vietnam
Mitsubishi Motors expects to resume shipments to Vietnam as early as June, complying with stricter inspection requirements on imported cars that went into effect at the beginning of the year. — Nikkei Asian Review
Sunseap Receives Approval for $150 million Solar Project in Vietnam
Sunseap International, a unit of Singapore’s Sunseap Group, has received the green light for a $150 million solar farm in Vietnam. The company stated it is the largest in the country to-date. — Renewable Energy Magazine
Việt Nam Red Cross launches Humanitarian Month
The Việt Nam Red Cross (VNRC) in collaboration with the Hà Nội Red Cross Society launched the Humanitarian Month (from May 1 to 31) at a ceremony on April 28 in Hà Nội. — Viet Nam News
Vietnamese fashion products displayed at Hong Kong Fair
More than 30 leading Vietnamese manufacturers of garments, textiles and fashion accessories as well as garment-related industries have displayed their products at Hong Kong’s largest one-stop sourcing fashion show. — VietnamPlus
Vietnam’s leading laboratory technology event celebrates its 10th year
Analytica Vietnam, a spin-off of the analytica in Munich, celebrates its tenth anniversary: From April 03 to 05, 2019, the sixth episode of Vietnam’s leading trade fair for analysis, laboratory technology and biotechnology will be held at the Saigon Exhibition and Convention Center (SECC) in Ho Chi Minh City. — Environmental Technology
Vietnam Airlines Corp., which has been transforming its fleet with new widebody planes and expanding services, is looking to further boost growth by starting a dedicated cargo unit. Nguyen Dieu Tu Uyen reports on Bloomberg, Monday, April 30.
The Southeast Asian nation has become a major manufacturing hub, with companies such as Samsung Electronics Co. annually producing billions of dollars in devices, providing an air freight opportunity for the national carrier, Vietnam Airlines Chief Executive Officer Duong Tri Thanh told Juliette Saly in a Bloomberg Television interview.
Investments by companies such as Samsung, LG Electronics Inc. and Nestle SA have made the country a manufacturing powerhouse, fueling economic growth that’s been among the fastest in the region. Gross domestic product rose 7.4 percent in the first quarter and the government forecasts growth of as much as 7.5 percent this year. The government is also looking to attract more visitors and develop tourism as a key industry.
“We expect a higher number of international passengers, especially from Japan and Korea, and more middle-class passengers domestically, thanks to Vietnam’s fast economic growth,” Thanh said.
The carrier is seeking dominance in the country the International Air Transport Association says will be among the world’s top five fastest growing air travel markets in the next 20 years. Competing with the nation’s largest private carrier, VietJet Aviation Joint Stock Co., the state-owned
The national carrier — which sold an 8.8 percent stake to ANA Holdings Inc. in 2016 — forecasts serving 23.4 million passengers this year, up from 22 million in 2017.
In 2016, Vietnam Airlines signed a deal with Airbus SE to buy 10 A350 wide-bodied aircraft with a list price of $3.1 billion. It also earlier ordered 19 Boeing Co. 787-9 Dreamliners. It plans to have 110 planes by 2020 and 150 by 2030, versus 92 planes now.
The airline is planing a route to Los Angeles by late 2019 or early 2020. Last year, it formed a venture with Air France to add 17 more destinations in Europe to the original three.
The state-owned airline, currently listed on Hanoi’s Unlisted Public Company Market — the so-called over-the-counter regulated market — plans to list shares on the country’s benchmark stock exchange in Ho Chi Minh City no later than the third quarter, Thanh said. The government has pledged to reduce its stake to 51 percent around 2019 to 2020, from about 86 percent now.
The carrier forecasts a pretax profit of 2 trillion dong ($87.8 million) this year, rising from about 1.85 trillion dong in 2017, Thanh said. Vietnam Airlines’ unconsolidated pretax profit jumped 30 percent in the first quarter to 875 billion dong, with a 25 percent growth in its number of international passengers, according to Thanh.
Shares of Vietnam Airlines rose 9 percent to 37,600 dong at the close in Hanoi trading Friday.
Vietnam Airlines and ST Aerospace Supplies last week signed an agreement in Singapore to form a joint venture to provide aircraft component maintenance, repair and overhaul services in Vietnam. The agreement will help the airline have a quicker maintenance turnaround on its aircraft as well as create an opportunity to service other airlines in the region, Thanh said.
Vinhomes JSC, the residential property developer of conglomerate Vingroup JSC VIC.HM, launched an equity issue of up to $1.4 billion on Monday, making it the country’s biggest-ever IPO in a market, drawing strong interest from global and local funds. Reuters reports.
The issue eclipsed an equity offering from Vietnam Technological and Commercial Joint Stock Bank, which was priced at the top-end of an indicative range and raised roughly $922 million last week.
Shares of Vinhomes are being marketed in a range of 110,500 Vietnamese dong to 114,700 Vietnamese dong per share ($4.85-$5), implying a market value of $13 billion to $13.5 billion for the company, which is betting on an increase in home sales in one of Southeast Asia’s fastest growing economies, the term sheet showed.
There was no response from Vinhomes to a Reuters query sent on a market holiday.
The IPO comes at a time when Vietnam’s markets have dropped as much as 15 percent from record highs hit earlier this month, but analysts view the correction to be short-lived.
Vinhomes says it is the dominant player in the high-end property segment in Hanoi and Ho Chi Minh City, with a 48 percent market share and an overall market share of 15 percent across all residential segments.
Local and global investors have agreed to take in about three-quarters of the initial equity offering, underscoring huge support for the issue, the term sheet showed.
Earlier this month, Singapore wealth fund GIC [GIC.UL] came in as a pre-IPO investor and took a roughly 7 percent stake for about $853 million by buying shares from Vingroup and other shareholders.
Vinhomes’ IPO, which will be listed on the Ho Chi Minh Stock Exchange, will rank the company among the biggest listed local firms. The issue consists of secondary shares.
Vinhomes is majority-owned by Vingroup, the country’s biggest conglomerate, which operates in real estate, education, healthcare, entertainment, retailing and automobile manufacturing sectors.
Roadshows for the issue kicked off in Hong Kong on Monday, followed by London, New York, Singapore and Boston, the term sheet showed. The shares are set to be priced on May 7 and expected to be listed on May 17.
Reporting by Anshuman Daga; Editing by Sherry Jacob-Phillips.
This article originally appeared on Reuters
