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Vietnam Prime Minister To Manage Fewer State-Owned Groups

Prime Minister Nguyen Tan Dung will be directly responsible for less than 10 state-owned groups, under a new draft decree. Government has not made final decision on Vinashin case The chairman of the Government Office, Vu Duc Dam, said at the Government’s regular meeting on October 28 that the country currently has 11 State-owned economic groups and 10 State-owed corporations. The Government recently discussed the draft decree on its powers and responsibility over State-owed enterprises and state investment in these companies. The result of the new draft decree would clarify the list of economic groups which would be directly managed...

Difficulties await Vietnam’s ‘little dragons’

Vinatex IPO plan unravels

Vietnam’s largest state textile-garment group faces a tough ask to go public on schedule in late 2012. Vinatex is in high gear to be able to finalize the group and some member firms’ equitization schemes in late 2012, according to a Vinatex source. The source also revealed that 80 per cent of Vinatex member units had taken the move which brought upbeat business figures in post-equitizing era for not a few of them. For instance, in 2011 Nha Be Garment reported dividend rate from 18-25 per cent and VND65 billion ($3.1 million) pre-tax profits. Four limited liability and several member units under...

A Window To More Foreign Property Deals

Despite short-term difficulties, foreign investors are weighing up investment opportunities in Vietnam’s property market. Recently, US-based Sands Sheldon Group conducted market surveys in Hanoi and Ho Chi Minh City in search of investment opportunities. The group’s billionaire chairman Sheldon Adelson said Sands Sheldon would pump around $5-6 billion into two mix-used resort developments in the […]

Giants still desire to invest in banks

The pressure of fierce competition and intense restructuring has not affected the attractiveness of investing in banks. Even in the time considered the most difficult, many people still continue to pour capital into banks. Three years ago, a "giant” (the word for rich person in Vietnam) who used to do banking business quite successfully in […]

Pharmaceutical options good medicine for firms

Vietnam’s pharmaceutical industry is increasingly appealing to excited investors. For example, in April local giant Hau Giang Pharmaceutical Joint Stock Company broke ground on a $24 million drug production plant in Tan Phu Thanh Industrial Zone in southern An Giang province. The plant, with an annual capacity of three billion tablets, is slated to come online in late 2012. Later South Korea’s leading group Korea United Pharma aired its long-term investment plan in Vietnam. The group will pump $5 million into expanding its drug production plant in southern Binh Duong Industrial Zone whose construction began in late 2009. The plant currently...

Using top technologies brings best rewards

Amid post-economic crisis rising demands for steel plant modernisation and optimisation, Siemens VAI chief executive officer Werner Auer said saving investments by adopting cheap technologies would be a 'big mistake' for firms with a long-term vision. He tells Thu Tra why. At the 5th Media Summit on Metals and Mining Technologies in Kolkata, India on […]

Hi-tech labor force in higher demand as companies expand business

Many hi-tech enterprises are planning to expand their business in 2011 and recruit a large number of workers. However, while the demand for hi-tech labor force is on the rise, the supply does not increase accordingly. According to Nguyen Thuong Hai, Intel Vietnam’s Education Director, the number of workers at Intel’s factory in Vietnam would reach 885 by the end of the year, an increase of 385 workers over 2010. Especially, the number would be 4000 workers when the factory operates at full capacity. Developing the staff of Vietnamese engineers to replace foreign experts is now the top priority of Intel’s training strategy. Meanwhile, FPT Soft, a software company, plans to recruit about 1000 workers, who are new graduates, this year. Phan Phuong Dat, Deputy General Director of FPT Soft, said that the labor demand of the company increases by 30-40 percent every year. However, the major problem for both Intel and FPT Soft is that the quality of new university graduates is not high enough to meet the requirements of enterprises. According to Hai, there is still a big gap between the requirements set by Intel and the actual qualification of new graduates. 100 percent of workers employed by Intel have to take training courses that last 3-6 months before officially taking their jobs. Hai said that it is even more difficult to recruit experienced engineers in Vietnam, because the engineers Intel needs are very scarce. He went on to say that Vietnam will not be able to develop high technologies if it does not have a healthy and perfect education system. He has urged schools to improve the quality of the students they train. New graduates need to have deep professional knowledge, have good English skills and have soft skills, such as being able to work in teams. Like Intel, FPT Soft also has to retrain new school graduates for three months before putting them into works at projects. Deputy Minister of Science and the Environment Nguyen Van Lang also complains that Vietnam is seriously lacking hi-tech labor force. The universities nationwide every year can provide 110,000 information technology engineers a year. The universities and junior colleges in HCM City alone produce 15,000 IT workers a year. However, only 10 percent of the graduated students can serve well in the industry. Dat from FPT Soft has suggested that schools should change the time when students to graduate. At present, all students finish their training courses in summer. This has led to a problem in which enterprises lack laborers at other times of the year. While hi-tech enterprises complain about the quality of new graduates, universities believe that enterprises also should take responsibility for the problem. Phi Dac Hai, President of the Korea-Vietnam Friendship Information Technology College, said that the main reason behind the problem is the lack of the cooperation between enterprises and schools. “The training curriculums are not reasonable because there is no cooperation between production and training,” he said. “Though enterprises get benefits from training, they do not give support to the training”. Hai said that in many other countries in the world, the government imposes the education tax on enterprises based on the number of workers the enterprises use. Sharing the same view, Nguyen Ngoc Binh, Rector of the University of Technology under the Hanoi National University, said that enterprises should cooperate with schools in training by offering an environment for students to practice and train skills for students. On March 22, the University of Technology under the Hanoi National University and IBM Vietnam signed a memorandum of understanding on the establishment of the first Centre of Excellent IBM-UET in Vietnam. The center will be setup to train laborers with high qualifications and skills in the IT sector, especially in the mainframe.

Talking up some big economic challenges

Vietnam steps into 2011 facing multiple challenges both domestically and internationally. The Vietnamese government recently took a range of tough decisions to stabilize the macroeconomy and bridle inflation to foster belief in the country’s sustained growth in the medium and the long term. VIR listens to executives of listed or would-be-listed firms about their firms’ […]

Labour exports in fine working order

Vietnam expects labour export numbers in 2011 to beat 2010’s figures with positive news in early 2011. International Cooperation Service Joint Stock Company (CICS) director Tran Ngoc Hien said businesses won many labour export contracts for 2011 from developed countries such as Australia, New Zealand, Canada, the US, Finland and Sweden. The foreign partners also […]