With over 110 million mobile phone subscribers and a mobile penetration rate of close to 80 percent, Vietnam’s mobile market is becoming more and more attractive to investors.
This publication is partly cited from FineIntel’s Industry Update. Our monthly industry update is a publication designed to provide meaningful insight into today’s industries in Vietnam. We encourage our readers to submit suggestions for topics that they would like see covered in future issues. While FineIntel can not cover each and every topic, we will do our best to provide the fullest coverage possible.
For further information in relation to the publication, please contact FineIntel.
July 1 was the deadline for all State-owned enterprises (SOEs) to be transformed into new entities in the form of either joint stock or one-member limited liability companies. But only around 100 SOEs have not been successfully transformed. What changes have been made to their operation since transformation?
A series of meetings between the State Bank of Vietnam (SBV), the Vietnam Banking Association (VNBA) and commercial banks have been arranged in recent weeks with a view to lowering VND interest rates, as instructed by the Government. And it seems the banks have responded in a positive manner.
The concept of a “world city” is becoming more and more popular in developed property markets. We can see the world is undergoing a major transition, as for the first time in history the majority of people now live in urban areas. According to Mr. Lee Chiang Toh, General Director of Cisco in Vietnam, over the next five years the world’s cities will have some 500 million more people. By 2050, at least 100 more cities will have in excess of 1 million residents.
In excitement leading up to the 2010 World Cup in South Africa, you can feel the tension throughout Vietnam. Football culture dominates Vietnamese life, as can be seen by visiting any coffee shop, beer garden, or restaurant, during a game. Foot- ball-lovers often gather to discuss their favorite teams, the dominating players, and upcoming games, with many reading football news first thing in the morning.
Loans of US$456.5 million have been given to Vietnam by the International Development Association (IDA), the arm of the World Bank that helps the world’s poorest countries. The loan is aimed at improving Vietnam’s education system to enhance the country’s economic growth and development.
“Human development is recognized as one of Vietnam’s three key areas of focus in its coming ten-year strategy,” said Ms. Victoria Kwakwa, World Bank Country Director for Vietnam.
It also targets to set up and pilot a new policy framework for the governance, financing and quality assurance of a new model university.
The loans, approved by the World Bank Board, also include the ninth Poverty Reduction Support Credit ($150 million), which is the fourth in a five-year cycle aimed at supporting the implementation of the Socio-economic Development Plan. This loan aims to continue the reforms needed to transform Vietnam from a transitional economy to a middle-income country.
A US$2 billion contract has been signed for the construction of the first phase of the Kien Luong thermoelectric- ity plant in the Mekong Delta’s Kien Giang province. The Tan Tao Group announced the closure of the deal between its affiliate Tan Tao Energy Co and China Huadian Engineering Co.
China Huadian Engineering, a subsidiary of the State-owned China Huadian Group, is principally engaged in the design, manufacture, service and con- struction of projects in various industries Approved in January 2008, the power generation plant will be one of the largest in Vietnam, with total capacity of up to 5200MW. It will be divided into three phases, with first phase capacity of 1,200MW and second and third phase capacity of 2,000MW each.
“This is the first thermal power project assigned by the Government of Vietnam to the private sector,” the company said. The first phase, which comprises two turbines, will have the first put into operation by the end of 2013. The second will generate electricity in early 2014.
On July 2 Minister of Planning and Investment Vo Hong Phuc told the monthly cabinet meeting that “GDP could grow 6.6 to 7 percent in the third quarter and 7.2 to 7.5 percent in the fourth quarter.” It therefore seems very likely that Vietnam will meet the target of 6.5 percent growth, set by the National Assembly. Export turnover for the entire year is expected to reach approximately US$66 billion, up 15.6 percent year-on-year, while the trade deficit is estimated to be about US$15 billion, or 22.7 percent of export revenue.
The meeting, held in the last year of Vietnam’s five-year plan 2006-10 and its ten-year plan 2001-10, was especially important in reviewing the implementation of national socio-economic targets. “It is essential to control inflation, especially for crucial goods for production and the daily lives of people,” Prime Minister Nguyen Tan Dung told the meeting. “We must be pro-active against natural disasters, including storms, floods and drought, as well as disease in humans, animals and plants.” He also called on businesses to make a greater investment in rural areas and implement the Communist Party Central Committee’s Resolution to create a new standard of living in rural areas.
This publication is partly cited from FineIntel’s Industry Update. Our monthly industry update is a publication designed to provide meaningful insight into today’s industries in Vietnam. We encourage our readers to submit suggestions for topics that they would like see covered in future issues. While FineIntel can not cover each and every topic, we will do our best to provide the fullest coverage possible.
July 1 was the deadline for all State-owned enterprises (SOEs) to be transformed into new entities in the form of either joint stock or one-member limited liability companies. But only around 100 SOEs have not been successfully transformed. What changes have been made to their operation since transformation? 
A series of meetings between the State Bank of Vietnam (SBV), the Vietnam Banking Association (VNBA) and commercial banks have been arranged in recent weeks with a view to lowering VND interest rates, as instructed by the Government. And it seems the banks have responded in a positive manner.
The concept of a “world city” is becoming more and more popular in developed property markets. We can see the world is undergoing a major transition, as for the first time in history the majority of people now live in urban areas. According to Mr. Lee Chiang Toh, General Director of Cisco in Vietnam, over the next five years the world’s cities will have some 500 million more people. By 2050, at least 100 more cities will have in excess of 1 million residents. 
