Guatemala talks make progress
The third round of negotiations on the signing of a free trade agreement (FTA) between Taiwan and Guatemala has been concluded smoothly, and it is expected that both countries could sign the FTA in mid-August, officials of the Ministry of Economic Affairs said yesterday.
The officials said that both sides made progress in tariff concessions for agricultural and industrial products and regulations concerning the role of the origin of certain products in the just-concluded negotiations in Los Angeles.
The officials said that both countries are scheduled to hold the fourth round of negotiations in Taipei on July 11, and Guatemala will organize a high-level delegation to come to Taiwan.
Chinfon touts Vietnam venture
Taiwan's Chinfon Group (慶豐集團) will soon receive the green light from the Vietnamese government to assemble cars and trucks in Vietnam, a company official said yesterday.
Vietnamese Prime Minister Phan Van Khai has agreed in principle for VMEP, a subsidiary of Chinfon, to increase its capital by US$70 million from US$160 million to assemble cars and trucks, said the official, who declined to be named.
Vietnam Manufacturing and Export Processing Co Ltd (VMEP) currently assembles motorbikes in the communist country.
"The Ministry of Planning and Investment will soon finalize administrative procedures for our licence," the company official said, adding that around 10,000 units will be produced each year.
Vietnamese automakers complain the market there is limited and regularly protest against massive tax rises imposed by the government over the last two years.
Chi Mei raises US$75 million
Chi Mei Optoelectronics Corp (奇美電子), Taiwan's second-largest maker of flat-panel displays used in computers and televisions, raised an additional US$75 million selling new shares, bringing the total amount raised to US$751 million, according to a term sheet sent to investors.
The company sold an additional 5 million global depositary receipts on Friday, the term sheet said. Earlier, Chi Mei sold 45 million global depositary receipts at US$15.02, representing a 4.9 percent discount to its closing price on June 9, the term sheet said. One global depositary receipt represents 10 ordinary shares.
Morgan Stanley managed the sale.
The company is expanding production capacity to compete with rivals including Taiwan's AU Optronics Corp (友達光電) and South Korea-based LG Philips LCD Co.
Carriers agree on Seoul flights
China Airlines (華航), the nation's largest air carrier, and Korean Air are launching a new code-sharing service on flights between Taipei and Seoul, the local company said yesterday.
Currently, China Airlines and Korean Air each offer nine flights per week between the two cities.
Their new joint service will give passengers holding tickets of either airline a total of 18 choices each week on the route, it said.
China Airlines and Korean Air have also started cooperation on transfer services from Taipei, via Seoul, to seven destinations in China, namely Beijing, Shanghai, Qingdao, Tianjin, Shenyang, Wuhan and Jinan, it said.
China Airlines added that the two airlines are also discussing the introduction of a joint frequent-flyer program.
NT dollar weakens
The New Taiwan dollar declined against the US dollar on the Taipei Foreign Exchange yesterday, losing NT$0.071 to close at NT$31.379. A total of US$617 million changed hands during the day's trading.
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