Vietnam Overseas

Vietnamese designers are confident the local fashion industry will not be wiped out by the foreign invasion which began a few months ago. 

Following Vietnam’s WTO entry last January a slew of leading international fashion brands like Gucci, CK, Mo&Co, Levi’s, Burberry, and Lacoste have come to the country.

But several designers told Thanh Nien there was no need to worry: It was inevitable and would only offer opportunities for local designers to learn about fashion trends and management from them.

The competition would also spur Vietnamese designers into improving their work to meet the demands of customers, they added.

In the luxury garment sector Vietnamese firms only have a small market share, with companies from China, South Korea, Hong Kong, and Thailand dominating.

However, major Vietnamese garment companies have made ambitious new plans to grab a larger slice of the market pie.
 

Phan Van Kiet, deputy CEO of Viet Tien company, said his firm had beefed up its design department and distribution network, and entered into tie-ups with foreign counterparts for HR training and branding.

It has five major brands – Viet Tien, Vee Sendy, T-up, San Sciaro, and Manhattan – and attain to get a 30 percent market share by 2010.

But domestic firms have an uphill task because they have failed to differentiate themselves from their foreign rivals.

Reported by Do Tuan – Translated by An Dien

Vietnam Airlines Corporation of Hanoi, Vietnam has received preliminary approval from the Export-Import Bank of the United States (”Ex-Im Bank”) for financing support in excess of US$400 million to support the acquisition of four Boeing 787-8 aircraft and engines, which will be operated by Vietnam Airlines.

The decision was made by Ex-Im Bank’s Board of Directors and announced in Hanoi by U.S. Ambassador to Vietnam, Michael W. Marine.   

“I am extremely pleased to announce Ex-Im Bank’s approval of this preliminary commitment to finance Vietnam Airlines’ acquisition of four state-of-the-art, U.S.-manufactured Boeing aircraft,” Ambassador Marine said. “This transaction will facilitate increased business and leisure travel to and from Vietnam, thereby contributing to the further economic growth of Vietnam. It’s a win for both countries.”

Vietnam Airlines, the national flag carrier of Vietnam, is a state-owned enterprise, which was formed in 1989. Vietnam Airlines flies both domestic and international routes. 

In 2003 and 2004, Ex-Im Bank financed four Boeing 777-200ER aircraft for Vietnam Airlines.

“Our experience with Vietnam Airlines has been very positive,” said James H. Lambright, Ex-Im Bank president and chairman. “We are looking forward to receiving Vietnam Airlines’ final application and hope, in the future, to finance additional U.S.-manufactured aircraft for Vietnam Airlines and to finance the sale of other U.S. goods and services to other companies in Vietnam.”

Ex-Im Bank believes that the Boeing 787 aircraft is a good choice for Vietnam Airlines and is worthy of Ex-Im Bank financing because the aircraft has been well-received by both airlines and the aircraft financing industry and will set a new industry standard for twin-aisle long range aircraft, with its lightweight composite structure, fuel efficient engines, larger windows, and enhanced passenger comfort. Since its launch in April 2004, the Boeing 787 aircraft has accumulated 455 orders and commitments from 36 airline and leasing customers around the world, making the Boeing 787 aircraft the most successful commercial airplane launch in history. Vietnam Airlines and Boeing finalized the order for the four Boeing 787-8 aircraft covered by the preliminary commitment in November 2005.

Although U.S.-value added goods and services represent the majority of the aircraft and engines in this transaction, there is expected to be a material amount of Japanese manufactured components in the Boeing 787 aircraft and, therefore, the Japanese export credit agency, Nippon Export and Investment Insurance (”NEXI”), has also issued its preliminary commitment to co-finance the Japanese content on these Boeing 787 aircraft.

The preliminary commitment issued by Ex-Im Bank is made in response to a preliminary application for financing and, although non-binding, provides an indication that Ex-Im Bank is interested in financing the type of transaction described in the application. Final approval must follow receipt of a final commitment application, review by staff, and final action by Ex-Im Bank’s Board of Directors.

June 21, 2005 — The Boeing Company [NYSE:BA] and Vietnam Airlines today signed the firm agreement for the purchase of four Boeing 787-8 Dreamliners by the national airline of Socialist Republic of Vietnam. The signing ceremony, held at the Department of Commerce, included Vietnam Airlines President and CEO Nguyen Xuan Hien and Alan Mulally, president and CEO, Boeing Commercial Airplanes. 

The event was witnessed by Vietnam Prime Minister Phan Van Khai and U.S. Department of Commerce Secretary Carlos M. Gutierrez. 

Vietnam Airlines plans for the 787 to be its future mid-sized, twin-aisle jetliner. The new airplanes, which are valued at $500 million at list prices, are scheduled for delivery in 2009 and 2010. The agreement also includes purchase rights for 11 additional airplanes in the 2010-2013 time frame. 

Vietnam Airlines became the eighth announced customer and a member of the launch team for the 787 in December 2004. Customer announced orders and commitments for the 787 now total 252 airplanes, including 128 under firm contract. 

“This is another great step as Boeing and Vietnam Airlines continue to build our strong, long-term working together relationship,” said Mulally. “The competitive advantages of the 787 Dreamliner will help Vietnam Airlines continue its incredible growth and the development of its global route structure.” 

Vietnam Airlines plans to use the 787-8 to expand its route system and to replace some existing airplanes. The airline has not made an engine selection. 

“We are looking forward to operating the 787 Dreamliner,” said Nguyen. “The superior efficiency of the 787 will allow Vietnam Airlines to further develop our route structure to include city pairs that would otherwise not be financially viable, while providing the best comfort to our passengers.” 

Boeing jetliners comprise Vietnam Airlines’ entire long-range fleet. The carrier operates seven 777-200ERs and three 767-300ERs. Four of the 777s have been purchased directly from Boeing; the remaining 777s and the 767s are leased.