Agricultural, fisheries, forestry exports down

The export turnover of agricultural, fisheries and forestry products has been posted at 1.3 billion USD for November, bringing the total for the first 11 months of the year to 14 billion USD, down by 6.94 percent year on year.

All three sectors have suffered the same fate this year with agricultural exports down by 7.9 percent year on year to 7.17 billion USD in revenue, fisheries by 6.28 percent to 3.94 billion USD and forestry products by 10.8 percent to 2.45 billion USD.

In regards to rice exports, overseas shipments increased by 32 percent year on year but revenues fell by over 7 percent due to a sharp drop in Vietnamese rice prices on the world market, reported the Ministry of Agriculture and Rural Development (MARD).

Prices in the first 11 months were just 447 USD per tonne, equivalent to 70 percent of the same period last year, MARD reported.

However it said it expected a rise in prices as India and the Philippines will soon need to import huge quantities of rice.

MARD gave the same explanation for the fall in coffee export revenues, saying that Vietnam remained the second biggest coffee exporter in the world with shipments up by more than 19 percent, but revenues were down by almost 15 percent.

On average over the past 11 months one tonne of coffee beans has fetched 1,478 USD, a fall of 30 percent year on year.

In regards to the seafood sector, most of its biggest currency earners dropped off such as tra and basa fish down by 8.6 percent, cuttlefish by 11.7 percent and tuna by 4.8 percent.

MARD said that exports of seafood to Vietnam’s major markets fell due to the global economic downturn, especially in Japan and the US, where exports fell by 10.7 percent and 4.52 percent, respectively.

Tea was the only agricultural export that enjoying a surge in both quantity and value.

The country has earned over 159 million USD after exporting 121,000 tonnes of tea over the past 11 months, representing a respective increase of 16.2 percent and 24.4 percent year on year.

MARD attributed the surge to increasing consumer demand around the world while supplies have dropped off slightly.

Thermo-electric power plant comes online

The expanded Uong Bi thermo-electric power plant was put into operation in the coal-rich province of Quang Ninh on November 27.

The Machinery Installation Corporation (Lilama), the project’s contractor, completed the trial operation of the plant and handed it over to the Electricity of Vietnam, the project’s investor, on November 26.

The expanded power plant, the first of its kind built by a local constructor, has a capacity of 300 MW.

RoK firm to continue partnership in S-Fone network

The Saigon Post and Telecommunication Company (Saigon Postel) and its Republic of Korea ’s partner, SK Telecom, have decided to shift to the joint venture mode of business in their joint mobile network S-Fone.

The information has driven away rumours that the RoK partner is going to completely stop investment in the mobile network, Lao Dong (Labour) newspaper said, citing a private source of information as saying.

S-Fone has been operating in the form of business cooperation contract (BCC) for the last six years. However, the BCC mode has become outdated and considered by the foreign partner as a problem given that the foreign partner’s capital is increasing, yet all legal decisions are still made by the local partner.

The new form of cooperation, however, still waits for the government’s permission.

The S-Fone network project has a total investment capital of 230 million USD.

The negotiation talks between the two partners to decide on a new cooperation model prolonged for several months, causing a lot of rumours about the future of S-Fone - the third mobile phone service provider in Vietnam after MobiFone and Vinaphone.

S-Fone will hold a press briefing in Ho Chi Minh City in the next few days to announce the result of the negotiation process.

Vietnam has seven mobile phone service providers, namely Vinaphone, MobiFone, Viettel, S-Fone, EVN Telecom, Vietnamobile and Beeline.

Credit policies trigger decline

Investors worries that they could not borrow more money from commercial banks for securities investments offloaded their shares on November 26, darkening market prospects and pushing the VN-Index under 500 points.

The investor panic followed the State Bank’s raising of the prime interest rate to 8 percent. The index closed on Nov. 26’s session at 482.6 points, falling 4.13 percent.

Trading volume on the HCM City Exchange dropped by nearly half from Npv.25’s volume to only 38.2 million shares, for a total value of 1.71 trillion VND (95.5 million USD).

The HNX-Index continued sliding 5.87 percent to close at 155.19 points. Trading volume fell to 18.3 million shares and a turnover of 639.5 billion VND (35.5 million USD).

“The central bank’s decision on administration of the monetary system seems like it will have the greatest impact on securities trade,” said Nguyen Van Dung, an independent securities analyst.

Dung said investors were following a herd mentality in their response to the central bank’s recent tightening of credit lending and increase of the prime interest rate.

General Director of An Binh Securities Nguyen Hong Quan was quoted in online newspaper cafef.vn as saying that the central bank’s decision to raise the prime interest rate by a percentage point to 8 percent theoretically meant commercial banks will raise their mobilising rates.

As a consequence, investors came to the conclusion that capital sources injected into securities will be impacted, said Quan.

Thai conglomerate goes ahead with petrochemical plan in VN

Siam Cement Group (SCG), Thailand's largest industrial conglomerate, has decided to proceed with its petrochemical project in Viet Nam, with oil firm Qatar Petroleum International as a new partner, local newspaper reported on November 26.

"Details of the project should be finalised by mid-2010," said SCG President Kan Trakulhoon. "At present, we are evaluating fund-raising sources, which will depend on the project's attractiveness and global financial conditions," he added.

SCG signed a partnership deal with Qatar Petroleum on November 25, according to the Nation daily. They will hold a 71 percent stake in the project which is worth 3.5-4 billion USD. Vietnam 's state oil PetroVietnam and Vietnam National Chemical Corp will together hold the remaining 29 percent.

The project was first unveiled in March 2008, but early this year SCG announced that it would delay its investment for at least two years following the global financial crisis that could affect the funding.

The project is part of SCG's drive to become one of Southeast Asia 's leading petrochemical producers. The investment will also cover infrastructure such as ports, a power plant and storage facilities, SCG said in a statement. It is hoped to cash in on Vietnam ’s growing economy, where plastic consumption per head is only 25 kg per year compared to 100 kg in Western countries.

Local handicrafts’ access to EU discussed

More than 50 businesses producing handicrafts discussed how to access the European Union market at a workshop held in the southern province of Binh Duong on Nov. 26.

The workshop, jointly organised by the Vietnam Handicraft Association (Vietcraft), the Binh Duong Industry-Trade Service and the Swiss Trade Promotion Organisation (Sippo), focused on a discussion of the obstacles in bringing handicrafts to the EU for sale.

At present, more than 90 percent of handicrafts are still exported via the intermediaries of other companies, the workshop participants agreed.

Vietnam ’s handicrafts are expected to earn an export revenue of 158 million USD in 2009.

The country’s major markets are Japan and the EU.

Vietnamese goods expand market share in Cambodia

A fair for high-quality Vietnamese goods and exports, the second of its kind in 2009, opened in Battambang province on Nov. 25.

The five-day fair, the ninth of its kind in Cambodia , is jointly held by the People’s Committee and the Investment and Trade Promotion Centre of Ho Chi Minh City.

On display at 152 stands are agricultural machines, household utensils, confections, cosmetics, civil electricity products, garment and apparel products, fertilizers and plant varieties of 95 Vietnamese businesses.

Addressing the opening ceremony of the fair, Advisor to Prime Minister Hun Sen and Battambang Provincial Governor Prach Chan welcomed this, the first fair of Vietnamese products in his province, saying that it is a vivid proof of the two countries’ growing trade relations.

He said that Vietnamese goods meet the needs of Cambodian consumers due to their high quality and diversity.

The provincial governor expressed the hope that such top-notch Vietnamese goods will soon stake their position in the Cambodian market, especially in the country’s western region.

Vice Chairwoman of the Ho Chi Minh Municipal People’s Committee Nguyen Thi Hong said she looked forward to Vietnamese businesses seeking additional partners and receiving more consumer opinions through fairs in Cambodia to win more support from consumers there.

Two-way trade between Vietnam and Cambodia reached 1.05 billion USD in the first ten months of the year with Cambodia ’s exports to Vietnam making up 147 million USD.

VietNamNet/VNA

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