Hai Phong’s FDI increases 5.54 times compared to the same period

Hai Phong’s FDI increases 5.54 times compared to the same period According to Hai Phong Department of Planning and Investment, only within 4 months of the beginning of 2016, FDI in Hai Phong reached to more than USD 1.69 billion, increasing 5.54 times compared to the same period of 2015 and is equal to 89.05% of the plan to attract FDI in 2016. Recently, on 15 April LG Displays Company (Republic of Korea) was given investment certificate for USD 1.5 billion project in Trang Due industrial zone, which enables Hai Phong to reach the target to attract FDI fund in 2016. On 6 May, the project has officially started the construction. This is the second largest project of LG Group launched in Hai Phong. Besides LG, other famous names like Bridgestone, Fuji Xerox, Haengsung Electronics Vietnam, JX Nippon Oil, General Electric ... are also selected Hai Phong as the destination for their projects in the plan to expand the scale of production and the market, to wait in front for the free … [Read more...]

Cat Bi International Airport opens after lengthy upgrades

Prime Minister Nguyen Xuan Phuc attends an inauguration ceremony yesterday for the Cat Bi International Airport in the northern Hai Phong port City. — VNA/VNS Photo Lam Khanh HA NOI (Biz Hub) — Cat Bi International Airport in the northern Hai Phong port city began operations yesterday after it underwent upgrades for more than two years. This was done under a plan approved by the then Prime Minister in 2012. Speaking at the inauguration ceremony, Prime Minister Nguyen Xuan Phuc said the airport was expected to help not only Hai Phong City, but also the northern coastal region to maximise their potential and strengths. The airport, together with Hai Phong International Port, Tan Vu-Lach Huyen Bridge and Ha Noi-Hai Phong and Quang Ninh-Hai Phong Expressways, will form a complete transport network, facilitating socio-economic development and ensuring national defence and security in the region, Phuc said. He urged the Ministry of Transport, the city and other localities … [Read more...]

Petrolimex holds out for refinery incentives

Vietnam National Petroleum Group has yet to make any progress on its South Van Phong oil refinery project eight years after receiving the investment certificate, because the company is still asking the government for incentives. Petrolimex is asking for the same benefits granted to other oil refineries in Vietnam Located in South Van Phong economic zone in the central province of Khanh Hoa, the South Van Phong refinery project was licensed in 2008 and has been at a standstill ever since. Vietnamese investor Vietnam National Petroleum Group (Petrolimex) said it was looking for a foreign investor to jointly carry out the project. However, the project has failed to move forward, despite the fact that Japanese company JX Nippon Oil & Energy has showed interest in becoming the refinery’s main shareholder. According to Bui Ngoc Bao, chairman of Petrolimex, the reason for the delay is that the government has not approved the incentives asked by the company. "Petrolimex is a … [Read more...]

Economists welcome plan to open oil retail market to foreign businesses

A gas station in Hanoi. Photo: Ngoc Thang/Thanh Nien With the government set to license foreign companies to distribute oil products for the first time, economists are hopeful it will herald the elimination of what is virtually a state monopoly. Vietnam's retail fuel market, more than 75 percent of which is controlled by state businesses Petrolimex, PV Oil and Saigon Petro, would become "more competitive" and "transparent" with the entry of Japan's Idemitsu Kosan and Kuwait Petroleum International, they told Thanh Nien. The companies' joint venture, Idemitsu Q8, is awaiting licenses to import, wholesale and retail oil products, possibly by next year. Pham Chi Lan, one of the economists, said foreign businesses' entry could only be a change for the better since the fuel retail market has been monopolized by a group of businesses for too long. The government has often made interventions in an effort to improve the market's transparency, but without much success, and so competition … [Read more...]

Foreign petroleum firms penetrate local markets

The participation of foreign investors in the distribution of petroleum products in Vietnam is breaking the monopoly previously held by domestic companies, and is increasing the overall competitiveness of the market. The entry of overseas companies into the local fuel industry will heighten competition Photo: Le Toan Japanese company Idemitsu Kosan Co., Ltd and Kuwait Petroleum International Ltd (KPI) have recently applied to register a joint-venture company to distribute petroleum products in Vietnam. The joint venture, named Idemitsu Q8 Petroleum Limited Liability Company, will operate in the import, wholesale, and retail of petroleum products, mainly through the construction and management of service stations across Vietnam. This will be the first foreign-invested partnership to participate in fuel distribution and retailing in Vietnam. Idemitsu stated that through the establishment of this petroleum product distribution company, the two companies will supply the growing … [Read more...]

Economic highlights – April 18-24

VGP - The PM's upcoming meeting with businesses; the 4th negotiation round on trade deal among Viet Nam, Laos, and Cambodia; the Foreign Ministry's conference promoting Asia-Europe partnership; and the attainment of a trade surplus of US$1.36 billion in Q1 are economic highlights from April 18-24. PM to chair meeting with businesses PM Nguyen Xuan Phuc will host a meeting with businesses in 2016 on April 29, 2016 that focuses on the theme "Viet Nam’s businesses – the nation’s economic development force". The meeting will aim to deliver the PM’s message that is: businesses are a driver behind economic development. The Government will create the most favorable conditions for establishing start-up and enhancing the development of businesses in terms of quantity and quality. Measures are proposed to set up a mechanism to facilitate enterprises' operation and address difficulties and obstacles for businesses. VN, Laos, Cambodia open 4th negotiation round on … [Read more...]

Foreign firms allowed to retail petrol in Vietnam

Several foreign enterprises will be allowed to participate in petrol distribution in Vietnam as they are investing in oil refinery projects in Vietnam, according to the Ministry of Industry and Trade (MOIT). Accordingly, Japan's Idemitsu Kosan in partnership with the PetroVietnam are investing in the Nghi Son Oil Refinery in Thanh Hoa province and will be eligible to take part in the distribution of oil and petrol in Vietnam when the Nghi Son Oil Refinery begins operation in 2017. The Vietnam National Petroleum Group (Petrolimex) also signed a memorandum of understanding on strategic co-operation with Japan's JX Nippon Oil and Energy to implement the Nam Van Phong oil refinery complex. However, no foreign firms have been licensed to establish filling stations at specific locations. On the other hand, to set up a distribution system, they have to meet the standards set in Decree 83 on warehouses and number of agents, among others. The MOIT said that foreign firms who wish to … [Read more...]

Press digest – April 20

National conference on 12th Party Congress Resolution concludes A national conference to popularise the resolution adopted by the 12th National Party Congress concluded in Ha Noi on April 20 after two days of sitting. During the course of the conference, Politburo member and permanent member of the Party Central Committee’s Secretariat Dinh The Huynh presented the basic contents of the Political Report adopted by the 12th National Party Congress. PM: VN welcomes Kumho Asiana’s investment PM Nguyen Xuan Phuc appreciated Kumho Asiana’s contribution to the development of trade, investment, culture and education in Viet Nam during a reception on April 20 for the group’s Chairman Park Sam Koo. The PM affirmed that Viet Nam always treasures and creates favourable conditions for all foreign enterprises and investors, including Kumho Asiana, to do business in the country. He expressed hope that Kumho Asiana will continue expanding its investment while increasing … [Read more...]

Vietnam to open fuel market to foreign firms, 10 years after WTO entry

While Vietnam decided not to open up its fuel market to foreign investors when it joined the World Trade Organization nearly ten years ago, that door is set to be opened for international stakeholders in oil refinery projects across the country. Foreign businesses will be allowed to distribute fuel products in Vietnam if they invest in the country’s oil refinery projects, the Ministry of Industry and Trade said, citing the government’s decision. This will result in exceptions to Vietnam’s WTO commitments, which prevent foreign players from selling, distributing, exporting and importing fuel in the country. A would-be joint venture between Japan’s Idemitsu and Kuwait Petroleum International Ltd. is likely to be the very first beneficiary of the new regulation. The two companies, which are involved in constructing Nghi Son, Vietnam's second oil refinery, have applied for registration of the Idemitsu Q8 Petroleum LLC, with the purpose of distributing … [Read more...]

Foreign enterprises to join petroleum retail market

VGP – Some foreign enterprises will be permitted to distribute petrol in Viet Nam when they invest in oil refinery projects in the Southeast Asian nation. Illustration photo Accordingly, Japanese oil producer Idemitsu Kosan which invested in the Nghi Son refinery project in the northern province of Thanh Hoa with Petrol Viet Nam will be able to distribute petro from 2017. In addition, the Viet Nam National Petroleum Group (Petrolimex) inked a strategic deal with JX Nippon Oil and Energy on the US$8 billion Nam Van Phong oil refinery project. Foreign petrol distributors have to meet criteria as stipulated at Decree 83/2014/ND-CP, dated September 3, 2014 on petrol and oil trading. So far, the domestic petrol market has 23 traders and 69 distributors, of which Petrolimex holds the largest market share. Under Viet Nam’s commitments to internationally-signed trade packs, the domestic petrol retail market will be opened for foreign players from … [Read more...]

JX Nippon Oil invests in Nam Van Phong

Japan’s JX Nippon Oil and Energy Corporation last week officially agreed to purchase an 8 per cent stake in state-run Petrolimex, which holds 55 per cent of the local petroleum retail market share. JX Nippon is a step closer to take part in Vietnam’s petrol retail market- Photo: Le Toan The Japanese oil and gas giant signed a share subscription agreement to buy into Vietnam’s largest distributor of petroleum products. This move will help JX Nippon secure business opportunities in Vietnam where the current demand for petroleum products is approximately 350,000 barrel/day and rising steadily. The acquisition shifts JX Nippon one step closer to building its first overseas oil refinery in Vietnam, and may even position it in the petrol distribution business across the country. "As part of our co-operation strategy, JX Nippon and Petrolimex have signed a memorandum of understanding to start a joint study for the construction of a refinery in Van Phong Economic Zone," … [Read more...]

Japanese shift investments to service sector

VietNamNet Bridge - Analysts said that Japanese FDI (foreign direct investment) had decreased in industrial sector but was showing growth in the service sector. A recent report of the Japan External Trade Organization (JETRO) showed that the Japanese FDI in manufacturing projects decreased by 15 percent, while capital poured into the distribution and retail sector increased from 14 percent in 2014 to 17 percent. The number of projects registered in the hotel and food sector has increased thanks to regulations on foreign investors’ operation in the field which took effect in 2015. Eleven projects were registered in the year, which accounted for 4 percent of total number of projects. Aeon, the Japanese largest retail chain, after opening three supermarkets in Hanoi, HCM City and Binh Duong, has begun building a new shopping mall in HCM City. Sources said Aeon’s representative had working sessions with Hanoi’s authorities on the establishment of its second … [Read more...]

Petrolimex to increase charter capital

Deputy Prime Minister Vu Van Ninh has agreed with the Ministry of Industry and Trade’s plan to issue more stakes and increase the charter capital of the Vietnam National Petroleum Group (Petrolimex). As of December 31, Petrolimex’s total assets reached VND51 trillion. The company earned VND146 trillion of revenue and VND3.76 trillion of pre-tax profit. The measure is part of the group’s restructuring process. The group’s charter capital is planned to raise to VND13.5 trillion ($604.7 million) from its current capital of VND10.7 trillion. The Ministry of Industry and Trade (MOIT) said that in order to increase Petrolimex’s charter capital and reduce the State’s ownership proportion at the group to fewer than 75 per cent of charter capital, the ministry has approved a plan to issue more ownership to Petrolimex’s foreign strategic shareholders. The deputy prime minister reminded the ministry to revise regulations, which are unsuitable with … [Read more...]

Why do Japanese want a stake in Petrolimex?

VietNamNet Bridge - By the end of 2014, Petrolimex, the Vietnam Petroleum Import/Export Corporation (Petrolimex), held 48 percent of the domestic petroleum distribution market. Amid the continuous oil price decreases (the price has dropped to a 10-year deepest low), Japanese decided to ‘take actions’: JX Nippon Oil & Energy Corporation said it would buy up to 10 percent of stake of Vietnam’s Petrolimex. The State, when proceeding with the plan to restructure state-owned enterprises in 2016-2020, considered selling part of stakes in the Vietnamese largest petroleum distributor to reduce its ownership ratio to 65-75 percent. The State, when proceeding with the plan to restructure state-owned enterprises in 2016-2020, considered selling part of stakes in the Vietnamese largest petroleum distributor to reduce its ownership ratio to 65-75 percent. The value of the deal, according to Asia Nikkei Review, is about $177 million. As such, Petrolimex's valuation … [Read more...]

Petrolimex to issue more shares, increase charter capital

Deputy Prime Minister Vũ Văn Ninh has agreed with the Ministry of Industry and Trade's plan to issue more stakes and increase the charter capital of the Vietnam National Petroleum Group (Petrolimex). Customers at a Petrolimex gas station. The company's chartered is expected to raise from VND10.7 trillion currently to VND13.5 trillion. - Photo VNA The measure is part of the group's restructuring process. The group's charter capital is planned to raise to VND13.5 trillion ($604.7 million) from its current capital of VND10.7 trillion. The Ministry of Industry and Trade (MOIT) said that in order to increase Petrolimex's charter capital and reduce the State's ownership proportion at the group to fewer than 75 per cent of charter capital, the ministry has approved a plan to issue more ownership to Petrolimex's foreign strategic shareholders. The Deputy Prime Minister reminded the ministry to revise regulations, which are unsuitable with the current situation, to ensure that foreign … [Read more...]

Vietnam’s Petrolimex to sell more shares to increase capital: gov’t

A Petrolimex gas station in Hanoi. Photo: Ngoc Thang Petrolimex, a state-controlled company that sells more than half of Vietnam's oil products, plans to sell more shares to increase its registered capital by over 26 percent to VND13.5 trillion (US$596.84 million). The share issue has been approved by the Ministry of Industry and Trade and Deputy Prime Minister Vu Van Ninh, the government website reported Thursday. It will reduce state ownership of the company to less than 75 percent from around 95 percent now. In a statement it released this week, the company said it would sell shares to a Japanese investor in the second quarter without divulging further details. At the end of last month Petrolimex reportedly struck a deal to sell 10 percent to Japan's JX Nippon Oil and Energy for 20 billion yen ($117 million). Petrolimex, which has 70 subsidiaries, mainly in the energy sector, posted a post-tax profit of over VND3.1 trillion ($7.05 million) last year after making a loss of … [Read more...]

Petrolimex earns $138m profit after tough 2014

HA NOI (VNS) — The Viet Nam National Petroleum Group posted a consolidated after-tax profit of more than VND3.1 trillion ($137.8 million) last year, versus a loss of nearly VND9.1 billion in 2014. The company, better known as Petrolimex, said in its financial report dated February 24 that before tax, its profit reached about VND3.8 trillion in 2015. This was more than 10 times that of the 2014 figures. In a statement sent to the State Securities Commission (SSC) last Friday, Petrolimex Deputy General Director Tran Ngoc Nam said that Viet Nam's economic growth of about 6.68 per cent helped the company's production and business results improve. The results were particularly improved at Petrolimex's affiliates and associated firms, which dealt in such areas as petro-chemistry, jet fuel, insurance and transportation. Nam said the volume of petroleum sold by Petrolimex in the domestic market grew by eight per cent year-on-year in 2015, and the country's stable monetary and … [Read more...]

Petrolimex obtains big profit last year

Minh Tam Petrolimex’s consolidated financial report in quarter four last year showed that the group earned profit of VND1 trillion (US$45 million) in the period, a big improvement from a loss of VND1.16 trillion (US$52 million) in the fourth quarter of 2014. Overall, Petrolimex posted net profit of over VND3.14 trillion (US$140.7 million) for all of last year compared to a loss of over VND9 billion (US$404,000) in 2014. The parent firm of Petrolimex obtained net profit of VND1.8 trillion (US$81 million) in quarter four of 2015 and VND2.14 trillion (US$96 million) for the whole year. Tran Ngoc Nam, deputy general director of Petrolimex, credited the corporation’s big profit last year to the better performance of its subsidiaries and associate companies in petrochemical, insurance, jet fuel, transport and service sectors. The group’s fuel sales on the domestic market grew 8% year-on-year. Petrolimex said the group’s poor business results in 2014 in … [Read more...]

Petrolimex out of loss, gaining $138 million profit

People fill up at a Petrolimex gas station in HCM City. Petrolimex posted a profit last year, after suffering a loss in 2014. — Photo petrolimexsg HA NOI (Biz Hub) — The Viet Nam National Petroleum Group posted a consolidated after-tax profit of more than VND3.1 trillion (US$137.8 million) last year, versus a loss of nearly VND9.1 billion ($404,000) in 2014. The company, better known as Petrolimex, said in its financial report dated February 24 that before tax, its profit reached about VND3.8 trillion ($168.9 million) in 2015. This was more than 10 times that of the 2014 figures. In a statement sent to the State Securities Commission last Friday, Petrolimex Deputy General Director Tran Ngoc Nam said that Viet Nam's economic growth of about 6.68 per cent helped the company's production and business results improve. The results were particularly improved at Petrolimex's affiliates and associated firms, which dealt in such areas as petro-chemistry, jet fuel, insurance and … [Read more...]

Japan’s JX Nippon Oil eyes 10 per cent stake in PLX

HA NOI (VNS) — Japanese JX Nippon Oil & Energy will spend around 20 billion yen (US$177 million) to take a 10 per cent of stake in Vietnam National Petroleum Group or Petrolimex (PLX). Tran Ngoc Nam, deputy director of Petrolimex, the country's largest petrol company, told financial newspaper Nikkei.com that it was submitting a plan to sell 8 per cent of stake to the Japanese partner in the first batch, and added that he would be more specific about the plan once he received approval. Currently, Petrolimex controls more than 50 per cent of the petrol in the local market where motorcycles are still the main vehicles of the nation with a population of 90 million. The use of automobiles kept increasing recently. In 2015, Viet Nam consumed between 17 million metric tonnes and 17.5 million metric tonnes of petroleum products, an increase of 12 per cent to 15 per cent over 2014. Under the co-operation, the Japanese company would help Viet Nam with expertise in business matters, … [Read more...]