News August 2003

Insurance posts high growth (STW – 30.8.2003)

The insurance market in Vietnam has great potential and has the fastest and most stable growth in ASEAN. According to the 6th ASEAN Insurance Regulators Meeting in Hanoi last week, insurance sales in Vietnam has increased 30% annually over the past 10 years, and it’s share of the GDP increased from 0.37% in 1993 to 1.3% in 2002.

IPs continue to be investment magnets (STW – 30.8.2003)

Industrial parks (IPs) and export processing zones (EPZs) have continued to attract foreign direct investment. During the first sevent month IPs and EPZs attracted 121 foreign invested projects with total capital of over USD 300 million. The biggest project is blank CD and DVD production by a Hong Kong company with an investment of USD 40 million.

Vietnam leads in pepper production (STW – 23.9.2003)

Vietnam has become the worlds top pepper exporter, accounting for 51% of the pepper output of the six pepper producing countries (Brazil, India, Indonesia, Malaysia, Sri Lanka and Vietnam). In 2003 Vietnam will produce 70,000 tons of pepper.

Vietnams power demand on rise (STW – 16.8.2003)

Vietnams power demand by 2005 will be 53 billion kWh and by 2010 93 billion kWh. According to Electricity Vietnam, to meet the demand, the power sector will build 18 hydropower plants with a combined capacity of 4,000 MW, and 10 thermo-power plants with 5,600 MW.

Vietnam Airlines plans to open direct air service between Vietnam and Germany (STW – 16.8.2003)

Vietnam Airlines plans to open direct air service between Vietnam and Germany from December. Frankfurt will become the second European city to which the airline will operate direct services after Paris.

Metro Cash & Carry opens first supermarket in Hanoi (STW – 9.8.2003)

Metro Cash & Carry opened its first wholesale center in Hanoi city on July 30. This is the German group's third wholesale center in Vietnam, after the two other opened in Ho Chi Minh City previously. According to general director James Scott, the USD 17 million project is part of the companies plan to invest EUR 150 million in building 8 wholesale centers in Vietnam until 2008. The 4.6 hectare supermarket, 15 km from central Hanoi, sells 14,000 items, 80% of which are local processed food.

USD 800 million of FDI in January – July period (STW – 9.8.2003)

Vietnam attracted 332 foreign direct investment projects capitalized at USD 794 million during the first seven month. Industry and construction are the strongest magnets, claiming 260 projects and USD 543 million. Fifteen projects with USD 30 million went to the agricultural, forestry and aqua product sectors. The service, tourism, transport, health, education sectors lured 57 projects capitalized at USD 221 million.

More than USD 2 billion imports for textile, garment and footwear industry (STW – 9.8.2003)

More than USD 2 billion were spent importing fabric and accessories for textile, garment and leather production in January-June period. Fabric alone accounted for USD 821 million. Imported accessories cost USD 1.2 billion. The textile and garment, and footwear industry posted 61% and 24% growth rates during the first seven months.

USD 100 million for better petrol quality (STW – 9.8.2003)

PetroVietnam will spend USD 100 million building two refining facilities at Oil Refinery Nr. 1 Dung Quat to produce better petrol products. The facilities will refine 2.5 million tons petrol into Mogas92 annually.

Titanium production line opens (VNN – 9.8.2003)

A new titanium production line started operation in Ha Tinh province. The monthly capacity is about 2,400 tons. So far this year, Ha Tinh province exported 27,000 tons of titanium.

Vietcombank named most esteemed bank (VNN – 9.8.2003)

The European financial magazine Euromoney has selected the Vietnam Bank for Foreign Trade, or Vietcombank, as the most esteemed commercial bank of Vietnam. The bank has won the title for three consecutive years. Vietcombank is noted for being the first bank to apply ATM tehnology and use international credit cards.

Cell phone sales to soar strongly (STW – 2.8.2003)

Cell phone sales in Vietnam will reach 972,000 units this year and 1.5 million over the next 2 years. Major players in market are Nokia, Samsung, Motorola, Siemens and SonyEricsson.