News July 2003

Vietnam posts highest economic growth in Southeast Asia (YNP – 30.7.2003)

The Asian Development Bank (ADB) estimates that East Asian economies will achieve an average growth rate of 5.6% in 2003, lower than the rate of 6.1% projected earlier in the year. Nevertheless, in 2004, growth will rebound to around 6.4%. In Southeast Asia, the forecasted figure for this year is 3.6%, lower than the estimation of 4.1% early in the year, but the 2004 growth rate is forecasted to be 4.8%.

Seven-month economic overview (VIR – 28.7.2003)

In the first seven months, all key economic indexes, particularly for oil and gas industry, were higher than as set in the year’s plan and than the same period last year. Industrial production posted the highest increase in the 1997-2002 period (15.9%). Of which, the state-run sector attained an increase of 12.1%; foreign-invested industrial production increased by 18.1%.

Industrial production in July was valued at 174.632 trillion dong, an increase of 15.9% over July 2002, and higher than the targeted 14-14.5%. Oil and gas production output reached a value of 2.544 trillion dong, increasing by 3.5% from last month and up by 16.3% over July 2002.

45% of IPs and EPZs occupied (PL - 29.7.2003)

Eighty- two industrial parks (IPs) and export processing zones (EPZs) have been established in the country with a total land area of over 15,800 ha (excluding Dung Quat industrial zone: 14,000 ha). Of the total land, the area for lease is 11,000 ha, according to the Ministry of Planning and Investment.

However, the occupancy rate has only reached 4,831 hectares. More than 80% of the total projects come from Asian investors among 40 countries and territories.

New bank director sees Vietnam as first choice of EU investors (SET- 24.7.2003)

It is Vietnam instead of China that is the first choice of European investors when they enter the Asian market, said Alain Candy, General Director of the Hong Kong & Shanghai Banking Corporation (HSBC) branch in Vietnam.

Candy, a French national, was appointed general director of the HSBC branch in Vietnam three months ago.

First half export up 32%, import up 38.5% (STW – 5.7.2003)

Vietnam’s export in the half of this year reached USD 9.78 billion, up 32% on a year ago. The top export item were garment and textiles (USD 1.75 bill.), crude oil (USD 2 bill.), footwear (USD 1.1 bill.) and seafood (USD 989 mill.).

The import rose 38.5% year on year to USD 12.5 billion leaving a trade deficit of USD 2.4 bill.

Plans for first Vietnamese satellite released (STW – 5.7.2003)

Vietnam Post and Telecommunications Corporation is inviting foreign companies to join a tender for Vietnam’s first satellite expected to be launched in 2005. The project is estimated at USD 200 mill und includes a communication and weather satellite and several ground stations. The contract may be awarded early next year.

Lufthansa opens HCM-Bangkok Route (STW - 28.6.2003)

Lufthansa has operated a new route between HCM City and Bangkok. The HCM-BKK flight starts at 8.30 pm and the BKK-HCM flight at 2.40 pm. On every Tuesday, Friday and Sunday. Lufthansa has now 3 flights weekly from Frankfurt to HCMC via Bangkok.

Vietnam Post and Telecommunication signed contract with Nortel (STW - 28.6.2003)

Vietnam Post and Telecommunication has signed USD 9 mil. contract with Nortel Network to upgrade the North-South optical backbone transmission system. The Upgrade will increase the networks capacity from currently 2.5 GBPS to 20 GBPS. Nortel laid the current network in 1995.