Vietnamese and Lao trade officials have discussed measures to promote trade in the two countries’ border areas, thus contributing to meeting their target of 1 billion USD in two-way trade turnover by 2010.
At the sixth meeting on trade management in the border areas between Vietnam and Laos on December 4-5 in the Savannakhet province of Laos, the two sides agreed to increase levels of cooperation between border area authorities, pairs of bordergates and markets along the border.
They also agreed that cross-border economic and commercial exchanges between the two countries not only boosts trade activities in the border provinces, but also maximises the potential and strengths of each locality and forms active economic zones in the Vietnam-Lao border areas, contributing to raising two-way trade turnover in recent years from 246.6 million USD in 2006 to 460 million USD in 2008.
The meeting proposed that each country’s authorities remove obstacles to policies, simplify commercial procedures at bordergates, improve infrastructure at border areas, and facilitate cross-border activities and the trade of goods.
The Vietnamese delegation attending the meeting was led by Deputy Minister of Trade and Industry Nguyen Cam Tu and the Lao delegation by Deputy Minister of Trade and Industry Khemmant Phonsena.
Saturday, December 6, 2008
Vietnam, Laos enhance cross-border trade
Luxury Korean real estate project planned for Hanoi
Hyundai RNC Ha Tay Company on Dec. 5 unveiled plans for a Starclass Hanoi luxury building project in Hanoi’s Ha Dong City.
According to the investor, Hyundai RNC Ha Tay Co, the project will be overseen by RoK’s international contractors Woongjin Kukdong, who also drew up the plans for the complex.
According to the project plans, the complex will be built on 4.6 hectares of land and will include five apartment buildings containing 885 high-class apartments, a 21-storey trade centre and 100 luxury villas, constructed in a classic Korean style. Construction of the apartment buildings and the trade centre is due to commence in early 2009 and is expected to be completed in 32 months, according to a Woongjin Kukdong spokesman.
Almost 600 billion VND to upgrade reservoirs
The Prime Minister has decided to provide 593 billion VND (35 million VND) for 28 provinces to make improvements to local reservoirs between 2003 and 2010, according to a dispatch issued on December 5.
The beneficiaries are mostly the northern mountainous, central and central highlands provinces.
The PM instructed the Ministry of Planning and Investment to issue guidance to the localities in order to ensure the effective use of the assistance and to mobilise local resources involved in the work.
One trillion VND for railway sector
The Vietnam Railway Corporation (VRC) is to invest more than 1 trillion VND (59 million USD) in implementing the second phase of a project to modernise the communication and signaling system for the Hanoi-Vinh railway route.
Of the total investment for the second phase, almost 848 billion VND will be sourced from the French Treasury and Economic Policy General Directorate (DGTPE)’s ODA loans.
On December 5, the VRC inked an EPC bidding contract worth 900 billion VND with HASITEC-ALSTOM Vietnam, a joint venture between France’s ALSTOM Transport SA and a local partner.
Under the terms of the 40-month contract, HASITEC-ALSTOM Vietnam will conduct field work and draw up technical and executive plans, make budget estimates and provide materials. It will be responsible for construction work and human resources training.
According to Tran Van Luc, Director of the Railway Project Management Unit, the project is scheduled to commence in January 2009 and is expected to be completed in May 2012.
HCMC tops Asia’s office property market
Ho Chi Minh City was ranked the best market for office properties among big Asian cities, followed by Tokyo, Mumbai, Shanghai and Bangalore, a survey showed Tuesday.
The southern Vietnamese hub was also rated on top for retail and apartment residential property, the survey conducted by US research institute Urban Land Institute and PricewaterhouseCoopers stated.
The survey, based on 180 respondents ranging from global investors, property developers and brokers, was conducted between the middle of August to October.
Tokyo takes the top spot for next year's real estate investment prospects, with many foreign investors seeking opportunities in Japan's beleaguered property market.
Tokyo moved up to the first place after being rated third in the past two years, while Shanghai dropped to fifth from last year's top slot.
Gold mining pollution poisoning Bong Mieu River
Company says fish dying of heavy rain and abnormal weather.
The waters of the Bong Mieu River look pristine as it meanders through lush scenery in central Quang Nam Province, but for many households living on its banks, it has become a carrier of health hazards and even death for aquatic life.
Local residents say that many marine creatures can no longer survive in the river and the water has become unsafe and unusable due to pollution caused by gold mining activities in the area.
The residents hold the Bong Mieu Gold Mining Company, established in 2006 at Tam Lanh Commune in Phu Ninh District, responsible for releasing wastewater and fumes containing toxic chemicals.
The company had reported recently to using around 9.5 tons of cyanide a month in gold mining activities, adding that they were also spending more than VND615 million (US$36,126) a month to treat matter contaminated with the toxic chemical.
However, a new report by the Phu Ninh District has listed several infringements of environmental laws by the company.
According to the report, Bong Mieu Gold Mining Company has failed to complete its waste treatment system as previously committed, and has not submitted documents for inspection of its facilities, which are required before a gold mining company can begin operations.
The company has also failed to list the waste generated during production, the treatment applied and steps taken to prevent environmental pollution.
It has not built an air monitoring and treatment system for the dust particles produced by its activities, the report says.
No measures have been taken by authorities against such contraventions of the law.
“Fish and other creatures in the river have died suddenly on a massive scale the past few years,” says Du Van Trai from Tra Sung Hamlet in Phu Ninh District’s Tam Lanh Commune. “We have complained to the authorities, but they didn’t have any effective solution.”
“The company has secretly let out untreated wastewater into the river on rainy days,” Trai asserts.
Local residents say they had found a large number of dead fish on several occasions, sometimes quite near the company’s location.
Trai says no one has been able to bathe in the river for the past two years for fear of skin diseases, and livestock have gotten sick from drinking the water.
Residents of nearby hamlet No. 10 say they have to inhale toxic chemicals, noting that the company often releases thick fumes into the atmosphere around midnight.
“Of late, our children have been falling ill easily after breathing the poisonous air,” says Ung Thi Tai. “We might have to abandon our homes soon.”
The residents have complained to local authorities several times, saying heavy rain could cause wastewater from the company to overflow into the river, as well as leak through the earthen dikes.
The deputy director of the Quang Nam Department of Natural Resources and Environment, Nguyen Ngoc Dung, says the department is only responsible for inspecting the water outside the dam being used to let wastewater out from the company.
“The company has environment staff who will check the wastewater and make regular reports,” he says. “If they find cyanide concentration exceeding allowed levels, we would request them to reconsider their wastewater treatment system.”
Dung also said environment authorities of Phu Ninh District were in charge of handling the cases when fish in the river died abnormally, adding that they had been slow in reporting them to the department.
The company’s environment engineer, Bui Thi Luan, admits cyanide could leak through the wastewater pools, but the chemical has to become dilute for it to leak into the river.
However, factory manager Gerry Calpo rejects any toxic impact that the company’s operations could have on the river. “The death of large numbers of fish has occurred at many places. It is supposed to have been caused by heavy rain and unpredictable weather changes.”
“Inspection results show the company’s wastewater meets the standard as it is let out into the river,” says company director Nguyen Ngoc Quynh. “It cannot be the cause of the river’s pollution.”
The test results that Quynh presents are of wastewater samples that the company itself has submitted to the Quality Assurance and Testing Center 2.
World Bank calls on Vietnam to continue reforms
World Bank Vice President James W. Adams Thursday called on the Vietnamese government to continue working on its reform agenda and assisting the nation’s poorest citizens.
At a biannual meeting of Vietnamese officials and representatives of the country’s major aid donors in Hanoi Thursday, Adams said the international community was ready to continue providing official development assistance (ODA) to Vietnam if it pressed ahead with planned reforms.
Adams warned the global economic downturn would continue to affect Vietnam, with the poor the most at risk.
He told the Consultative Group Meeting for Vietnam that he believed the measures Vietnam had taken to stabilize the economy and contain inflation had proved effective so far.
Fiona Louis Lappin, head of the UK Department for International Development in Vietnam, hailed the poverty alleviation priority Vietnam had incorporated in its socio-economic policies.
Medium- and long-term economic prospects of Vietnam were bright, particularly when the government was committed to further reform, said International Monetary Fund (IMF) Assistant Director for the Asia and Pacific Department Shogo Ishii.
Shogo suggested the Vietnam government accelerate reforms in the banking and business sectors and keep a close watch on state-owned companies.
Representatives from the Asian Development Bank, the EU, the US, and the UN also promised to support Vietnam’s continued development efforts.
But Japan Thursday said it was suspending relevant procedures of transport and sewerage projects in Vietnam it planned to fund with aid loans. ODA loans to Vietnam will be suspended until both countries agree on how to deal with a major corruption scandal, the Japanese ambassador said.
Japan is “unable to pledge new yen loans until both countries work out effective and meaningful measures against corruption,” Mitsuo Sakaba, Japan’s Ambassador to Vietnam, said at the Consultative Group Meeting, which was also attended by Vietnamese Prime Minister Nguyen Tan Dung.
The suspension of Japanese ODA loans to Vietnam follows claims made in a Tokyo court that a Ho Chi Minh City transport official took bribes from a Japanese company.
Ho Chi Minh City authorities last month suspended Huynh Ngoc Si, deputy head of the HCMC Department of Transport and chief of the Japan-funded East-West Highway and HCMC Water Environment Project, pending further investigation of allegations he took more than US$820,000 in bribes from executives of Japanese Pacific Consultants International (PCI) in 2003 and 2006.
Si allegedly received the bribes in exchange for helping PCI win consulting contracts on the highway project.
The Vietnamese and Japanese governments set up a joint committee to investigate the allegations.
"Until effective and meaningful measures against corruption are worked out through this joint committee, it would be difficult to regain the support from the Japanese public for further assistance to Vietnam, and we are unable to pledge new yen loans," Sakaba said.
Earlier this year the Japanese government announced its intention to extend ODA loans to Vietnam up to JPY65.3 billion (over $700 million) for the first half of the fiscal year 2008 for infrastructure, transport and sewerage improvement projects.
“All the relevant procedure of those projects, however, have been suspended since the PCI corruption case was brought to light,” Sakaba said.
Sakaba later told journalists Japanese-funded technical assistance projects and grant aid to Vietnam would continue.
Japan, Vietnam's biggest bilateral donor, in 2007 pledged $1.1 billion in ODA loans to Vietnam out of the total $5.4 billion in ODA promised by foreign donors.
At a televised question-and-answer session of the National Assembly last month, Prime Minister Nguyen Tan Dung promised the Vietnamese government would deal with the case in accordance with Vietnamese laws.
Thursday, PM Dung vowed the Vietnamese government would use donors' financial assistance more efficiently.
“The Vietnamese government treasures all ODA capital from foreign donors and will make the utmost effort to further improve the efficient use of ODA,” he told the two-day meeting, themed “Stabilizing the economy and maintaining its growth potential.”
ODA has helped Vietnam upgrade its infrastructure and improve levels of healthcare, education, environmental protection, rural development and poverty alleviation, Dung said.
Vietnam had effectively used ODA, reaching many socioeconomic and poverty reduction achievements since 1993, Ayumi Konishi, Country Director of the Asian Development Bank (ADB) told journalists on the sideline of the meeting
ADB will offer more ODA to Vietnam in 2009, he said. In 2007, the bank pledged to offer $1.35 billion of ODA to the country.
However, Vietnam should reduce the bureaucracy surrounding ODA-funded projects to make them more effective, Konishi said. The Vietnamese government should also facilitate investors by ensuring macroeconomic stability, improving infrastructure and intensifying anticorruption measures, he said.
Acting Country Director of the World Bank in Vietnam Martin Rama said the global lender was also planning to sustain ODA of around $1 billion for Vietnam every year.
Early this year, Vietnam was put on the list of five low-income developing countries that will receive annual World Bank preferential loans of $1.5 billion over the next three years.
HCMC transport dept. not culpable for tunnel cracks: official
The Ho Chi Minh City Transport Department has disclaimed any responsibility for several cracks found in sections pre-constructed for the Thu Thiem Tunnel project.
In August this year, investigators found a number of cracks in four tunnel sections pre-constructed for the Thu Thiem Tunnel, which is part of the larger East-West Highway project linking HCMC’s District 1 with District 2. The cracks had developed in the sections, built in neighboring Dong Nai Province, even before they were completed in June, the investigators found.
At the regular session of the HCMC’s People’s Council Thursday, Deputy Pham Van Hai asked the Transport Department to spell out its responsibilities for the technical problems.
But department director Tran Quang Phuong said his department was not to blame. “We are just tasked with monitoring whether the contractors have carried out the relevant procedures properly,” he said.
“We cannot act instead of the investor [of the project],” he said.
The HCMC government is the project’s main investor in the East-West Highway via the HCMC East-West Highway and Water Environment Project Management Unit while the Obayashi Corporation and Pacific Consultants International (PCI) from Japan are the tunnel contractors.
But Deputy Hai was unhappy with Phuong’s response, saying the transport department must bear responsibility to some extent.
Phuong also passed the buck to the HCMC administration for the recent suspension of his subordinate Huynh Ngoc Si, who was the former head of the East-West Highway Project.
Last month, city authorities suspended Huynh Ngoc Si, deputy head of the Department of Transport and chief of the East-West Highway Project, while they investigated claims made in a Tokyo court that Si had taken around US$820,000 in bribes from PCI in 2003 and 2006 to help the firm win consulting contracts.
“Since the project is under the HCMC administration, the scandal involving Si was out of the control [of the transport department],” Phuong said.
Deputies also grilled Phuong over the street barriers that clog many roads in the city.
A city resident used the hotline to draw attention to the problem: “After the street barriers on Ton Duc Thang Street [in District 1] were removed, many pot-holes have appeared, exasperating residents. Perhaps the department director is not been aware of this problem because he uses a car everyday.”
Phuong said he knew about the problem that was vexing residents, and promised the drainage projects would be completed soon, without giving a specific timeframe.
He added, to the alarm of the deputies, it would take at least another four years for the city to tackle flooding.
“Over the past seven years, the department has failed to put at end to gridlocks and flooding, meaning it has had no feasible solutions to the problem,” they said.
They also warned HCMC could suffer another historic flooding like the one in Hanoi in late October that left at least 22 dead or missing.
Tough action promised
The suspension of the deputy director of the city’s Urban Environment Company on Wednesday was timely but not enough, Deputy Dang Van Khoa said.
Last Friday, HCMC police discovered that the Dong Thanh dump site in Hoc Mon District was accepting toxic waste, estimated at hundreds of tons, from a leather tanning company based in neighboring Ba Ria-Vung Tau Province.
On Wednesday, the Environment Department said it had suspended Tran Dai Dong, deputy director of the HCMC’s Urban Environment Company, who was held accountable for signing contracts with the Ba RiaVung Tau company to accept the toxic waste.
The license to handle such waste had expired and the company had not reported this to the department.
But Deputy Dang Van Khoa insisted company director, Huynh Minh Nhut, would have to bear responsibility for the illegal dumping that had happened for several months.
Department director Dao Anh Kiet promised no one would be above the law in this case.
Phan Anh Minh, deputy head of the city police department, also said tough action would be taken against all violators.
Intertainment - the new entertainment
All over the world people are getting their kicks by staying in rather than going out to bars, restaurants and theaters.
It’s Friday night and Giovanni Barbaro, a 33-year-old Milan coffee shop owner, is buying videos instead of going to the movies.
“I can watch them as many times as I like,” Barbaro says, emerging from a Blockbuster outlet with Keanu Reeves’s “The Matrix” and two other films. “The fact that life’s getting expensive makes me think more about what I spend on entertainment.”
British, French and Italian consumers are reducing spending at bars, restaurants and theaters faster than anyone else as recession, plunging stocks and rising unemployment grip Europe. That may be a boon for companies such as Internet dating site Meetic and video-game seller Digital Bros SpA.
Home entertainment is one of the last things Europeans will cut back on, along with cigarettes and alcohol, a Nielsen survey showed.
“Staying in has become the new going out,” says Tarlok Teji, a partner at Deloitte & Touche in Leeds, England, who oversees research on the UK retail industry.
“Heading to clubs, bars and restaurants for lavish events is over for many of us. It’s a mega-trend and it’s here to stay.”
This Christmas, Britons will spend an average of US$194 on socializing, 12 percent less than last year, according to Deloitte. Teji says the shift to “intertainment” will drive companies to offer more family-oriented services.
Playing together
Gameloft, Europe’s biggest maker of games for mobile phones, charges $9.04 for its “TV Show King,” a three-round trivia contest that can be downloaded and played by four people at a time. The Paris-based company predicts sales for this quarter will rise 50 percent as it adds games for multiple players, says Gonzague de Vallois, a senior vice president.
“An entire family can play together and many of the games can be played virtually indefinitely,” de Vallois says. “No fuss, no packaging, no shops: our distribution model is well adapted to the circumstances as people stay home more.”
Ubisoft Entertainment, Europe’s biggest maker of video games, said first-half earnings excluding non-recurring items increased more than fivefold.
“Video games are a form of entertainment that remained accessible to all,” says Emmanuel Soupre, a fund manager at Neuflize OBC Asset Management in Paris, which oversees the equivalent of $26 billion. “This is favorable in such an environment. These stocks now have an attractive valuation.”
Soupre said he holds Ubisoft shares and will consider buying Gameloft.
Internet dating
Meetic, the largest publicly traded dating website on the continent, charges $38 a month for full access to user profiles as young people look for cheaper ways to make connections. The company reported record daily sales for October 5, the day before the Dow Jones Stoxx 600 Index posted its steepest decline since 1987.
Digital Bros, the Milan-based distributor of video games such as “Cooking Mama” for Nintendo Co.’s game consoles, recorded a 30 percent increase in sales for the 12 months ended in June. Its shares have jumped 19 percent in the past month.
“There are more opportunities for us as more people stay home and tighten their belts,” says co-Chief Executive Officer Raffaele Galante.
“People prefer to buy a sandwich for one euro and a video game which can last for 100 hours.”
Seventy percent of Britons, 57 percent of French and 56 percent of Italians are slashing spending on out-of-home entertainment, compared with 54 percent of those in the US and Canada, according to Nielsen. The survey of 26,202 Internet users in 52 countries was conducted from September 22 to October 6.
“Return of nesting”
Restaurants, dance clubs and pubs are all being hurt by the financial crisis. Luminar Group Holdings, the UK’s biggest nightclub owner, said a decline in sales had accelerated since September as more people stayed home on Friday nights. Groupe Flo, owner of the art deco Paris brasserie La Coupole, is scaling back plans to open new restaurants.
Barbaro, the Milan cafe owner, says customers who used to visit his place three times a day now come only once. Many now prefer an 80 cent espresso to a $1.64 cappuccino, he says.
Meanwhile, Domino’s Pizza UK & Ireland Plc, Britain’s largest pizza-delivery chain, recorded an 8.8 percent increase in third-quarter sales as more people ordered its pizzas, which cost as little as $7.56.
“It’s the return of nesting,” said James Russo, vice president for marketing at Nielsen in New York. “It’s a tremendous opportunity for all those companies offering products tied to this at-home experience.”
Dallas-based Blockbuster, the world’s largest movie-rental chain, this month began a $316,000 ad campaign in Italy to promote its $6.25 two-night rentals. An evening movie ticket in Milan costs $9.50 on average.
“There is a feel-good factor in watching a movie when you are forced to tighten your belt on spending,” said Chris Reilly, CEO of Blockbuster’s Italian unit. “It becomes a treat.”
Friday, December 5, 2008
Shooting heard at New Delhi airport, no one injured
Three rounds of firing were heard at New Delhi's international airport early Friday morning, but no one was injured, the Indian NDTV channel reported.
Police official said security forces have swarmed through airport after the firing was heard, but no one was injured, said the report.
The channel said security forces were investigating the nature of the incident, which sparked security scare at the airport.
BBC website earlier cited airport officials as saying that at least six gunmen were shot by Indian security force at the airport, but a later report said police had denied any casualties.
NDTV cited the police as saying that the firing was found from a man in a car. The car which has been driven away is being traced by the police.
Airports in India went on high alert on Thursday after the Bureau of Civil Aviation issued a hijack warning.
The move followed an anonymous mail sent to a news organization in Indian western state Gujarat last week, warning of terror strikes at three airports of Delhi, Chennai and Bangalore on the 6th of December.
India's Central Industrial Security Force (CISF) and the National Security Guards (NSG) have been alerted after the warning was released.
Vietnam, UK seek ways to deepen economic ties
The Joint Economic and Trade Committee of Vietnam and the UK (JETCO) met in London on Dec. 3 to discuss measures to strengthen their bilateral economic and trade ties.
The granting of Vietnamese entry visas to UK trade representatives, financial transparency, taxation of the leasing and exploitation of mines, and import duties imposed on alcohol were high on the agenda of the meeting.
The Vietnamese delegation, led by Deputy Minister of Industry and Trade Le Danh Vinh, also updated the UK officials on the latest information regarding Vietnam ’s implementation of its WTO commitments.
Chief Executive of UK Trade and Investment (UKTI) Andrew Cahn expressed his hope that the two countries will work together closely to remove trade barriers.
According to a recent report by UKTI, Vietnam is considered the world’s most attractive emerging market by business leaders, and suffers the least from the effects of the current global financial crisis.
JETCO was established in September 2007 to promote trade and create a favourable business environment for both Vietnamese and UK enterprises.
JETCO’s most noticeable success so far has been its move to help HSBC and Standard Chartered Bank become the first totally foreign-owned banks to operate in Vietnam.
Viet Nam confident against Thais
Viet Nam’s football team are ready to take on Thailand in the Suzuki cup at the ASEAN Football Championship (AFF) at Sarakul Stadium in Phuket tomorrow.
The game was relocated by the ASEAN Football Federation (AFF) from the unstable capital to Phuket amid political tension there.
The team had their first training session on the hard turf at Spanhin pitch after a gruelling journey from HCM City to Phuket via Singapore on Wednesday.
Portuguese coach Henrique Calisto has not had a single win since taking over in April but is keeping positive about defeating the team’s archrivals.
"We are playing to win, but we shouldn’t fight a do-or-die game with Thailand. It’s only the first match of the tournament. Viet Nam have two more important games with Malaysia and Laos," said Calisto.
"Vietnamese players will up their training and keep upbeat. Thailand are a powerhouse and have the advantages of home game and a star squad,"
"We could lose the game [with Thailand], but we’re not anxious about it." he said.
The 53-year-old coach will meet with Thailand’s coach, Peter Reid, former England midfielder, ahead of tomorrow’s game.
The former Sunderland and Manchester City manager is hoping to lead Thailand to its fourth title in the biennial event.
The English coach has sporting stalwarts Teerathep Winothai, Teerasil Daengda, Suree Sukha, Suchao Nutnum on his side. Datsakorn Thonglao will line out for V-League’s Hoang Anh Gia Lai. Niweat Siriwong, the former midfielder of Vietnamese Tien Giang and Eastern Asia Bank has also made the team.
Reid has lost his assistant Steve Darby, who was rushed to hospital on Wednesday for thrombosis. Darby led the Viet Nam women’s team to victory in the Southeast Asian Games in Malaysia in 2001.
Thailand got straight into training after a flight from Suvarnabhumi Airport to Phuket on Wednesday.
Last month, Viet Nam drew with Thailand 2-2 and North Korea 0-0, ranking them second at the T&T Cup in Ha Noi.
The AFF Cup is the most coveted football competition in the ASEAN region.
Winners of the December 28 final will net US$100,000 in prize money.
Viet Nam haven’t won the AFF Cup since it began in Singapore in 1996 and have not beaten Thailand in 10 years - apart from a 3-0 win in the Tiger Cup semi-final in 1998.
Arch-rival Thailand have drawn with Viet Nam, Malaysia and Laos for the group B AFF Cup.
Singapore will play Cambodia, Indonesia and Myanmar.
The country has won the cup three times. In 1998 they beat Viet Nam 1-0, in 2005 they wiped out Indonesia 5-2 in a two-leg final, and in 2007 they defeated Thailand 3-2 on aggregate.
Change of venue
The AFF announced that the match will go ahead at the original venue in Phuket next Friday 12 after the settling of the polical unrest there. The Viet Nam squad will rush onto an 870km flight to Bangkok straight after the second game with Malaysia next Wednesday.
Tower blocks, wells threaten capital city
The over-use of underground water and the construction of high-rise buildings are likely to cause more structures in Hanoi to collapse, warns the Northern Water Resource Planning and Survey Federation.
On Dec. 1, more than 100 people living in Quoc Oai, west of the city, had to evacuate when the ground around a new household well sank.
Drilling was at 50m when the walls of three nearby houses cracked and the buildings tilted.
“Our research shows the rate of subsidence in Phap Van – about five kilometres south of the city centre – is up to 3cm per year,” said federation chairman Nguyen Van Dan.
The rate in Thanh Cong (Ba Dinh district), Ha Dinh (Thanh Xuan district), Tuong Mai (Hoang Mai district), and Van Dien (Thanh Tri district), was 2cm a year.
The Hanoi Municipal Construction Department estimates that the ground is sinking at 4cm each year in some places.
The Hanoi Science Technology and Construction Economics Institute reports that most of Hanoi ’s water is drawn from underground.
The volume now totals 700,000cu.m each day but the figure is forecast to double by 2020.
Apart from underground supplies exploited by water utilities, the city has about 100,000 private wells.
Index rises after talk of postponing securities levy
The possibility that the Government might delay imposition of the new income tax on securities trading helped the market stave off further losses on Dec. 4.
The VN-Index held its ground to close at 308.60, up a modest 0.78 percent. Eighty-six codes posted gains on the day, compared to only 46 on Dec.3.
Late Dec.3, Minister of Finance Vu Van Ninh told reporters that the ministry was considering whether to delay new taxes slated for implementation on January 1 to the end of 2009, to support investors through the difficult economic times.
The collection of the tax is likely to be ineffective anyway, at a time when the market is struggling with a prolonged global crisis,” commented Nguyen Huy Duong, an analyst at Hoa Binh Securities.
In response to the minister’s hints, market volumes on Dec. 4 picked up a bit over the previous day’s sluggish figures, seeing 10.29 million shares traded for a combined value of 283.82 billion VND (16.89 million USD).
Sacombank (STB) held its position as most-active share, with 1.51 million traded, followed by SSI with 717,360 shares traded, and PetroVietnam Finance (PVF) with 553,760.
In Hanoi, the HASTC-Index outperformed HCM City, adding 2.36 percent to close at 106.62, with gains by leading shares such as Asian Commercial Bank (ACB), Bao Viet Securities (BVS), and PetroVietnam Insurance (PVI) all helping boost the index.
ACB was also the most-active code on the northern bourse, with 1.8 million shares traded, and followed by Kim Long Securities (KLS) with 735,300 shares, Vinaconex (VCG), 642,500, and PVI, 421,500.
The Hanoi market saw a total volume of 6.29 million shares which generated a turnover of 146.65 billion VND (8.73 million USD.
Economic gloom slows down Tet travel
Airlines, trains, and buses are all facing lower-than-expected demand on what are usually peak traveling days during Tet (Lunar New Year) next January.
Carriers attributed it to the fact that many Vietnamese are tightening their belts because of the economic woes, as are foreigners.
Sai Gon Railway Station said tickets are still available on trains departing HCM City for Da Nang , Hue and Hanoi one week before Tet, which falls on January 26.
Vietnam Airlines and Jestar Pacific said they have almost sold out flights from HCM City to Ha Noi just before the festival.
EC programme boosts testing capacity for local labs
Three quality assurance and testing centres under the Vietnamese Directorate for Standards and Quality (STAMEQ) received laboratory testing equipment from the European Technical Assistance programme for Vietnam (ETV2) on Dec. 4.
The equipment, worth 544,000 EUR (696,000 USD), will help upgrade these laboratories.
It will be used to conduct tests on agricultural and fishery products for export in accordance with international standards and World Trade Organisation requirements.
“The laboratory equipment will supplement and enhance the testing capabilities of the Vietnam Metrollogy Centre and STAMEQ’s quality testing centres in Hanoi, Da Nang and Ho Chi Minh City,” said the deputy director general of STAMEQ, Tran Van Vinh.
“It will help us to timely and efficiently meet the growing demands of standard adjustment and testing from business enterprises and science research centres nationwide,” he said.
To improve Vietnam ’s standardisation, metrology, and testing capacity, the European Commission has supported the Ministry of Science and Technology to successfully implement the ETV2 Project and units belonging to STAMEQ, the Ministry of Agriculture and Rural Development’s Agro-Aqua-Sylvie Products Quality Management and the Vietnam Chamber of Commerce and Industry.
Vinh said ETV2 Project focuses on reviewing and drafting legislation; rationalising organisational mechanisms; improving staff and testing capacity; and procuring equipment to achieve compliance with international requirements and regulations.
Source: VNA
Stimulating economy? The most important thing is implementation method
The Government has drawn up five measures to stimulate the economy, with the focus being on reinforcing the inner strength. Experts talk about these measures. Besides the package measures to rescue the national economies, worth hundreds of billions of dollars, that many nations have announced, they are also concurrently applying three other ‘economic levers,’ namely tax reductions, interest rate lowering and exchange rate adjustment. In terms of cutting taxes to stimulate the demand and production, The measures of loosening the monetary policies have been bringing positive results. What the Government needs to do, is to speed up the implementation of selected investment projects. Cao Sy Kiem, former Governor of the State Bank of Vietnam, now Chairman of the Small and Medium The package measures drawn up by the Government will have a good impact on the national economy in general, and the stock market in particular. The loosened monetary policies will help the monetary market prosper. Specifically, the delay of the personal income tax for securities investors, if approved, will help lure investors back to the stock market. Dr Pham Thai Quoc, Head of the Transition Economies Analysis Division under the Economics and Politics Research Institute The measure drawn up by the Government proves to be very necessary in the current conditions of the national economy. However, I think that it is necessary to give more details of each measure, for example what echelons and sectors need to do, and how the sectors can cooperate with each other. Moreoever, it is very important to slash lending interest rates, so as to make small and medium businesses able to access bank loans. Vu Duy Thai, Chairman of the The basic interest rate cuts do not really have a big significance, as banks themselves had slashed lending interest rates before. The lower rates have not helped speed up the disbursement of loans. Businesses have been facing increased difficulties, the export markets have been narrowed, and export prices have been forced down, while the export turnover has increased inconsiderably. Businesses wish that the Government would apply measures to stimulate the consumption soon, and support the domestic market. Tarek S. El Awar, Regional Director, Zamil Steel Neighboring countries in the region, including Alain Cany, Chairman of Eurocham The most important thing now is to control trade deficit. Vietnamese businesses need to receive necessary support to maintain competitiveness while the demand in the world for consumer products has been decreasing. Exporters need to have the right to credit access with reasonable costs Huynh Anh Tuan, General Director of SJC Securities Company As some industries and sectors have been facing difficulties, the Government can raise import taxes in order to support the consumption. If the petrol price decreases further, this can lead to price decreases of many other products, thus helping stimulate the demand. Interest rates should be lowered more rapidly in order to help businesses start new business period.
Vu Khoan, former Prime Minister
Thursday, December 4, 2008
Total buys up Gas Saigon
Japanese ODA for Vietnam on hold
At the Consultative Group Meeting (CG), which opened this morning in Hanoi, Japanese Ambassador to Vietnam Mitsuo Sakaba said Japanese ODA projects for Vietnam had been suspended as a result of the PCI scandal. Difficulties of ODA negotiators The Japanese Ambassador said early this year, the Japanese government announced its intention to extend Vietnam ODA loans up to the total of JPY65.3 billion (over $700 million) for the first half of the fiscal year 2008 for infrastructure projects to improve transport and sewerage systems. “All the relevant procedures of those projects, however, have been suspended due to the PCI corruption case coming to light,” he stated. He said development of infrastructure remains a major priority for Vietnam. Japan has been working with Vietnam to help it to build up its infrastructure, including participating in the three major projects recommended to the Japanese government by Prime Minister Nguyen Tan Dung, namely the North-South speed railway, the North-South highway and Hoa Lac Hi-tech Park. “It was most regrettable that there was a bribery case by a Japanese firm in connection with a Japanese loan assistance project in Vietnam. Following the grave incident, the two governments set up a joint committee to discuss concrete measures to be taken to prevent corruption related to Japan’s ODA for Vietnam. Until effective and meaningful measures against corruption are worked out through this joint committee, it will be difficult to regain the support of the Japanese public for further assistance for Vietnam, and we are unable to pledge new yen loans,” the Japanese Ambassador said. Since resuming its aid for Vietnam in 1981, Japan has been taken the lead in granting ODA to Vietnam. Japan’s ODA accounts for 30% of international donors’ total committed ODA for Vietnam. Key construction works in Vietnam built with financial assistance from Japan include Bai Chay Bridge in Quang Ninh Province, the new terminal of HCM City-based Tan Son Nhat International Airport, the East-West expressway, the Hai Van Tunnel, the thermo-power plants of Pha Lai and Phu My.
Casual workers may return to countryside
Many casual workers might lose their jobs in cities next year, as enterprises felt the effects of the global financial crisis, warned director of the Institute of Labour and Society Nguyen Lan Huong from the Ministry of Labour, Invalids and Social Affairs. Huong delivered the warning to representatives at a conference held recently in Ha Noi to evaluate the impact of the global turmoil on Viet Nam’s agriculture and rural areas. Along with the warning, however, Huong also delivered a message of hope, saying the economic drag would be only temporary. She said that while labourers would temporarily return home because of the work shortage, they would likely come back to the cities because there was even less work in rural areas. Director of the Institute of Policy and Strategy for Agriculture and Rural Development Dang Kim Son said the country’s agriculture sector lacked the necessary policies to deal with the economic crisis. As demand drops, so would the number of jobs in rural areas. Unfortunately, even in rural areas farmers were also struggling, after one year of price hikes in input materials, and unstable outlets, said Son. On the conference’s sidelines, Deputy Minister of Labour, Invalids and Social Affairs Luong Le Phuong said the global crisis would have its impact on enterprises until end of next year, and that it would be more challenging to meet export quotas than initially thought. Phuong said that if there was no "medicine" strong enough, a number of enterprises would likely face bankruptcy. He also commented on the wave of labourers moving from urban to rural area. The official stressed that it was necessary to track unemployed labourers moving out of urban areas, so that they could be trained to work in rural regions. Homecoming The situation comes about after a mass of farmers migrated to urban areas because of low income from the unstable agricultural production. Costs of education and health care, production and other fees have been increasing, forcing farmers to leave their homelands to earn a living in urban areas. "Who can leave their paddy fields, which are their only means of support? But at the same time, who can stay at their paddy fields where their production is not enough to earn a living?" said Dang Nguyen Anh from the Viet Nam Institute of Social Sciences. A survey in Vinh Long Province’s Binh Ninh Commune by the Institute of Policy and Strategy for Agriculture and Rural Development showed that more than 34 per cent of people had left their homes to work in urban areas, and that just 47 per cent of them had stable jobs. The survey also found that casual labourers in cities returned home when the country’s economy was down. "If manual labourers stay in cities without homes, income or marketable skills, how can they maintain a living? It’s natural that they would return home," said the director of the Rural Development Centre Vu Trong Binh. "This move is necessary to help reduce inflation and the unemployment rate in urban areas." Binh noted that the crisis was an opportunity to re-structure the economy, improve the banking system, food safety and hygiene and quality of agricultural produce. This crisis would also help restructure labour forces in both rural and urban areas, according to Binh. Source: VietNamNews
Securities companies: only top 20 will survive
In 2007, the top five securities companies all attained big profit. SSI had the post tax profit of VND864bil, ACB Securities VND332bil, BVSC VND214bil, KLS VND126bil.
However, these companies were not so prosperous in the first nine months of this year. Of the five, SSI fulfilled 49.36% of its yearly plan with the post tax profit of VND230bil. Meanwhile, KLS got the modest profit of VND3.6bil, and BVSC reported the loss of VND300bil, and HPC the loss of VND85bil.
The main reason for the poor performances of securities companies is the continued sharp falls of the stock market, which have precipitated the departure of many investors, while the number of securities companies has been increasing.
Statistics released by the HCM City Stock Exchange (HOSE) and Hanoi Securities Trading Centre (HASTC) show that the total value of stock transactions of securities companies from the beginning of the year until the end of October was CND156,996bil (VND15,696bil/month).
As securities companies have been both purchasing and selling, the total monthly stock transaction value of the securities companies is VND15,696bil x 2 = VND31,393bil. This spells that on average, one securities company has the monthly transaction value of VND31,393bil/99 companies = VND317bil.
APEC’s analysts say that the turnover from the monthly securities brokerage service of every securities company is VND317bil x (0.2% - 0.03%) = VND539mil (0.2% is the fee companies collect from clients, and 0.03% is the fee companies have to pay to securities trading centres).
Meanwhile, the monthly expenses securities companies have to pay (workshop premises, salaries, asset depreciation and others) total around VND1.5-2bil.
If the current conditions are not improved, Vietnam will see many securities companies on the verge of bankruptcy, the report by APEC states, adding that only the top 20 securities companies will survive.
Government’s help called for
Two questions have been raised amid the dismal performances of securities companies: Will there be a massive merging of securities companies in the time to come? What measures should Vietnam employ to help securities companies overcome the troubles?
Nguyen Thanh Ky, Secretary General of the Vietnam Association of Securities Businesses, believes that wide-scale merging will not occur. Ky said that both big and small companies are facing difficulties nowadays. In the world, even big institutions like Citigroup need the government’s support. In this case, support from governments is a necessity.
Ky mentioned the proposed collection of personal income tax from securities investors, saying that taxation at this sensitive moment would make the market worse, as investors would sell stocks in order to avoid the onset of the tax, slated for January 1, 2009.
Securities companies have been trying to rescue themselves by restructuring their organisations, cutting superfluous jobs and closing branches. However, Ky still believes that the companies need the support of the government.
There are many things the government can do to help, he says. It can lower transaction fees, remove the requirement on installing cameras for transaction supervision and magnetic doors. Especially, it can ease the regulation on the compulsory trading floor space (the minimum area of a trading floor is now 200 sq m).
Ministry proposes solutions to rally financial markets
Improving the liquidity of the financial market and mobilising investment while at the same time controlling the impacts of the global financial crisis were the major goals of a meeting that took place in Hanoi on Dec. 3.
Regarding the bonds market, the Finance Ministry reported that it has prioritised efforts to revise and complete the procedures for issuing Government and enterprise bonds. The ministry called for more diversification of bonds and pledged to create favourable conditions for enterprises to mobilise capital through the issuance of bonds.
Deputy Minister of Finance Nguyen Cong Nghiep unveiled a Government plan to issue 36 trillion VND worth of bonds during 2009, equivalent to 2008 estimates. The funds that are raised through the issuance will be invested in major community-based projects such as transport, irrigation, schools and medical facilities.
The Vietnam Shipbuilding Industrial Group (Vinashin) and the Vietnam Electricity Group have been given mandates to issue bonds of their own.
The Finance Ministry acknowledged that Government bonds issuance over the past ten months has met just 52 percent of the annual target due to the high rate of inflation.
Another capital channel, the stock market, is also attracting lots of attention after a series of complex developments throughout this year.
The nation’s largest bourse in Ho Chi Minh City saw its VN-Index drop 70 percent in November compared to its value in early 2007, despite a host of measures taken by the Ministry of Finance to arrest its decline. The Ministry said that the market is unlikely to rally in the short-term due to national macro-economic problems and the global financial crisis.
To date, almost 330 stocks and fund certificates have been listed on the stock market, with their total values making up some 19 percent of the gross domestic product (GDP).
The Finance Ministry has also proposed numerous measures relating to accounting, auditing and insurance services in an effort to maintain the insurance market’s annual growth rate of between 12-13 percent over the next two years.
Source: VNA
Mekong Capital announces investment of 5 mln USD in Digiworld
Mekong Capital has announced that the Mekong Enterprise Fund II, Ltd. (MEF II) has completed an investment of 5 million USD in Digiworld Corporation.
This is the eighth investment of the Fund, which was launched in June 2006.
According to Chris Freund, Managing Partner of Mekong Capital, Vietnam’s IT products market has experienced impressive growth over recent years, and has strong long-term development potential. Digiworld is a leading distributor with an extensive distribution network and 10 years experience in the industry.
“We are excited about the Fund’s investment in the Company and we believe Digiworld, with its professional and systematic operations, and strategic vision, will not only maintain its well-established position but also continue to capture market share in Vietnam’s IT distribution market,” Freund said in a statement issued on December 3.
Earlier, MEF II invested a combined capital of up to 33.75 million USD in seven other companies in Vietnam.
Launched in June 2006, the 50 million USD Mekong Enterprise Fund II focuses on well-managed and fast-growing private companies to help them prepare for successful listing on the stock market.
Source: VNA
Bourse welcomes 90 foreigners
The local stock market in November welcomed 90 foreigners (17 institutions and 73 individuals) to participate in trading, according to the recent data of the Vietnam Securities Depository Centre.
As of December 1, the exchange has a total of 12,624 foreigners attending to the trading, including 874 institutions and 11,750 individuals. This proves the extent to which the global crisis causes fluctuations in local exchanges worldwide, including Vietnam.
Sheraton builds third hotel in Vietnam
Sheraton Hotels Group is building an international hotel & spa in the coastal city of Nha Trang, central Khanh Hoa province, which will be put into operation in mid-2009.
This is Sheraton’s third luxury hotel in Vietnam , after two facilities in Hanoi and Ho Chi Minh City .
According to Scott Hodgetts, Sheraton Hotel & Spa Nha Trang General Director, the booming business at the Hanoi and Ho Chi Minh City hotels is the reason for Sheraton to build one more hotel in Nha Trang city, helping expand its operation and reaffirm its brand name in Vietnam .
The 30-storey hotel comprises a chain of modern facilities, including 280 rooms and meeting halls, a spa area, restaurants and sports centres, he said, adding that tourists will also enjoy convenient IT services.
Sheraton Hotels, which is managed by Starwood Hotels & Resorts Worldwide Inc., one of the world’s largest tourism service providers, plans to build 54 more hotels throughout the world in 2009.
Vietnam pushing free trade area with US
“We are trying to promote negotiations on a free trade area (FTA) agreement with the US. This would be a long-term task,” said Vietnamese Ambassador to the US Le Cong Phung on the sideline of the 16th diplomatic sector conference, which opened in Hanoi on December 2. What do you think about the Obama administration’s interest in Asia in general and Vietnam in particular? Based on the US’s benefits in its relationship with Vietnam and the geopolitical position, role and development capability of Vietnam, the US wants to boost its relations with Vietnam. Bush, McCain, Obama – any US president has to base his policies on the US’ interests. It is said that Asia, including Southeast Asia, will be the centre of political, security and economic strategic evolution in the coming time, so the Obama administration would have to pay more attention to Asia-Pacific, including Vietnam. It may be true that Obama would be more interested in Africa because he is African-American, but Africa is not the US’ strategic target, but Asia. It is said that the US worries about the expansion of China’s influence in Asia and Southeast Asia, so based on the US’s interests, they would necessarily attach more importance to our region. I talked with some advisers and those who are close to Obama. Obama was born in a place which is near Southeast Asia and he lived in Indonesia, so he is close to us in one way. Obama chose Hillary Clinton for Foreign Minister. How will this decision influence ties between Vietnam and the US? Bill Clinton was the one who resumed relations with Vietnam. The Republican Administration pursued Clinton’s policy to promote relations with Vietnam. The upcoming Democratic Administration will do the same. Hillary has visited Vietnam already so she may have a certain sympathy for Vietnam. More and more Vietnamese-Americans have joined the US administration at all levels. Do you think that this is an opportunity for us to promote national harmony and enhance the connections between the two countries? It is a good thing for our country when Vietnamese-Americans, especially young ones, quickly integrate into local communities and join governmental institutions and sci-tech centres. They participate in US governmental institutions while the US administration wants to boost relations with Vietnam, so it is a favourable factor. Will there be a breakthrough in the trade relations between Vietnam and the US in the era of Obama? We don’t expect great breakthroughs. The current trade ties are favourable. In 2001 the two countries signed the Bilateral Trade Agreement (BTA). At that time the two-way trade revenue was $1 billion. This year the figure is nearly $13 billion, or nearly a 600% increase. That’s a great advance. The US is the largest export market of Vietnam. The new administration tends to favour a protective policy like the tradition of the Democratic Party, so this will more or less affect trade with Vietnam the same way. In addition, the economic and financial situation next year will be complicated so we will try to maintain trade revenue with the US at the same level as in 2008. The US currently ranks fifth among foreign investors in Vietnam. We want that in the next 2-3 years, the US will be the largest foreign investor in Vietnam. The two sides are negotiating on the Trade and Investment Framework Agreement (TIFA) and the negotiation process is favourable. We are also trying to start negotiating a bilateral trade agreement this year. We are trying to promote negotiations about a free trade area agreement with the US. This will be a long-term task. Noted by Phuong Loan Source: VNN
Wednesday, December 3, 2008
Động lực mới cho Khu vực Tam giác Phát triển
Lễ ký biên bản ghi nhớ về hình thành các chính sách ưu đãi cho khu vực Tam giác phát triển Hội nghị Cấp cao CLV ra Tuyên bố Vientiane phát triển sâu rộng hợp tác giữa ba nước Campuchia – Lào - Việt Nam đã mở ra nhiều cơ hội đầu tư vào khu vực này.
Khu vực Tam giác phát triển lại có thêm động lực mới khi Bản ghi nhớ về xây dựng Cơ chế chính sách ưu đãi đặc biệt cho Khu vực Tam giác phát triển vừa được các bên ký kết tại Hội nghị Cấp cao Campuchia - Lào - Việt Nam (CLV) lần thứ V diễn ra tại Thủ đô Vientinane (CHDCND Lào) ngày 26/11/2008 dưới sự chứng kiến của Thủ tướng Chính phủ ba nước.
Phát biểu khai mạc Hội nghị, ông Bouasone Bouphavanh, Thủ tướng CHDCND Lào nhấn mạnh rằng, việc thành lập Khu vực Tam giác phát triển không chỉ cải thiện tình hình kinh tế - xã hội, nâng cao mức sống của người dân trong Khu vực, mà còn góp phần thúc đẩy quan hệ kinh tế, thương mại và đầu tư giữa ba nước.
Trong bài phát biểu trước 300 đại biểu đến từ ba nước tham dự Hội nghị, Thủ tướng Chính phủ Nguyễn Tấn Dũng cho rằng, Hội nghị là dịp tốt để trao đổi hợp tác giữa ba nước và với sự nỗ lực của các bên, Khu vực Tam giác phát triển sẽ trở thành khu vực kinh tế năng động, phát triển ổn định.
Theo mục tiêu đề ra, Việt Nam và Campuchia phấn đấu nâng kim ngạch thương mại song phương lên 2 tỷ USD vào năm 2010. Việt Nam và Lào cũng quyết tâm phấn đấu đưa kim ngạch thương mại song phương lên 1 tỷ USD vào năm 2010; 2 tỷ USD vào năm 2015 và trên 5 tỷ USD vào năm 2020.
Khu vực Tam giác phát triển hiện có tiềm năng lớn về thương mại, đầu tư, nông nghiệp, năng lượng, giao thông, du lịch. Số liệu thống kê sơ bộ cho thấy, tại Khu vực Tam giác phát triển, nhiều dự án lớn đầu tư vào thủy điện, khai thác và chế biến khoáng sản, phát triển và chế biến sản phẩm cây công nghiệp có giá trị cao… đã và đang được triển khai. Hầu hết các dự án của doanh nghiệp Việt Nam tập trung tại các tỉnh thuộc Khu vực Tam giác phát triển. Tổng vốn mà các doanh nghiệp Việt Nam đầu tư vào khu vực này chiếm 60-80% tổng vốn đầu tư vào Campuchia và Lào. Riêng tại Lào, con số này là 85,24%, tương đương hơn 490 triệu USD.
Hiện tại, các doanh nghiệp Việt Nam có thể tìm thấy ở Lào, Campuchia cơ hội đầu tư vào du lịch, khoáng sản, xây dựng, viễn thông, chế biến gỗ. Các doanh nghiệp Lào, Campuchia có thể cung ứng cho Việt Nam những sản phẩm thủ công mỹ nghệ, sản phẩm du lịch khá hấp dẫn.
Tới nay, nhiều doanh nghiệp Việt Nam như Tổng công ty Sông Đà, Ngân hàng Sài Gòn Thương Tín, Tổng công ty Bưu chính - Viễn thông quân đội… đã tham gia thực hiện dự án thủy điện, bưu chính - viễn thông, trồng cây công nghiệp… tại Lào và Campuchia. Các doanh nghiệp Lào và Campuchia cũng hợp tác với doanh nghiệp Việt Nam tập trung trong một số lĩnh vực như dịch vụ giao thương, buôn bán hàng tiêu dùng…
Mặc dù có những bước tiến đáng khích lệ, nhưng trong quá trình đi lên, Khu vực Tam giác phát triển còn gặp không ít trở ngại. Chính vì vậy, theo Thủ tướng Nguyễn Tấn Dũng, Thủ tướng CHDCND Lào Bouasone Bouphavanh và Thủ tướng Campuchia Samdec HunSen, để tiếp tục thúc đẩy phát triển kinh tế 3 nước nói chung và tại Khu vực Tam giác phát triển nói riêng, cần khuyến khích đẩy mạnh đầu tư trực tiếp của các doanh nghiệp; tiếp tục đầu tư vào các lĩnh vực năng lượng điện, hợp tác thăm dò khai thác khoáng sản, trồng và chế biến cây công nghiệp có giá trị cao; tăng cường các giải pháp và cơ chế chính sách thúc đẩy hợp tác phát triển và tập trung vốn ngân sách đầu tư kết cấu hạ tầng nhằm tạo môi trường đầu tư thuận tiện cho các nhà đầu tư. Ngoài ra, cùng kêu gọi vốn hỗ trợ phát triển chính thức (ODA) vào một số lĩnh vực để sớm hình thành cơ sở vật chất cần thiết cho mục tiêu phát triển trong Khu vực tam giác.
Tuy còn gặp một số khó khăn, song theo đánh giá chung của Hội nghị Cấp cao CLV lần thứ V, tình hình kinh tế - xã hội tại Khu vực Tam giác phát triển đang từng ngày thay đổi và chuyển biến theo chiều hướng tích cực. Đây là thực tế được Hội nghị Ủy ban Điều phối chung ba nước Campuchia - Lào - Việt Nam (CLV) lần thứ ba diễn ra trước đó ghi nhận. Với sự phối hợp chặt chẽ của các bên, cùng với việc kêu gọi các nhà tài trợ, chắc chắn những tiềm năng của Khu vực Tam giác phát triển sẽ sớm được khai thác và kinh tế khu vực này sẽ đạt được những bước tiến vượt bậc.
Vietnamese passport holders to be exempted from immigration declaration
Deputy Prime Minister Nguyen Sinh Hung has given the nod to the abolition of entrance and exit declaration formalities at international airports for Vietnamese passport holders.
Hung has assigned the Ministry of Public Security to research and improve declaration procedures at road, railway, sea and river entrance and exit points.
This ministry has also been instructed to provide and exchange information about passengers, crew members, transport staffs, etc. who enter and exit the country with related bodies at border gates.
The Ministry of Health will assist people who enter or exit Vietnam in the filling in of health declarations under the regulations of the World Health Organization (WHO).
Vietnam: $1 billion to encourage investment and consumption
The monthly cabinet meeting on December 1-2 concentrated on ways to prevent economic recession in the face of the global financial crisis and economic slowdown.
Chairman of the Government Office Nguyen Xuan Phuc said at a press conference after the cabinet meeting that the government had set forth five groups of measures to realise three missions: prevent economic recession, maintain growth and ensure social security.
First of all, to promote production and business, the government will support industries that yield high export revenue and have high growth potentials like the processing industry, textiles and garments, footwear. At the same time it will reduce taxes for and extend debts of businesses facing difficulties, particularly small- and medium-sized enterprises.
Secondly, the government will more strongly encourage investment and consumption. State budget money allocated for capital construction, government bonds and ODA capital will be disbursed early.
Regarding investment, the government encourages the participation of all economic sectors and will create favourable conditions for non-state enterprises to invest in building infrastructure.
The government will issue more government bonds, encourage enterprises to build housing for the poor and workers to consume the excess of inventory goods and construction materials.
As for financial and monetary issues, Phuc said the government has assigned the Vietnam Development Bank to grant credit guarantees to small- and medium-sized enterprises and reserve more food in the event of natural disasters.
The government will keep interest rates and tax rates at appropriate levels and continue exempting and reducing taxes to help businesses expand.
Phuc also said that the government would assist 61 poor districts and implement unemployment insurance. The Prime Minister has asked related bodies to provide enough food for people and told the Finance Ministry to buy more than 150,000 tonnes of rice and necessities for reserve.
He emphasised the responsibility of state-owned groups and corporations in ensuring the achievement of the above targets.
“The government will protect enterprises and farmers at the permitted level. However, protection doesn’t mean subsidies. On one hand, the government will speed up measures to encourage investment, consumption, social security, and on the other hand, it will still implement plans to increase salaries, power and coal prices under the market mechanism,” Phuc said.
The government plans to spend $1 billion to encourage investment and consumption.
AFF-Suzuki Cup to move to Phuket
Thai sports authorities have moved this week's Asian Football Federation (AFF) Suzuki Cup, from Bangkok to the southern island of Phuket to avoid the political crisis in the capital.
Emergency rule is now in place at Bangkok's two airports, which were occupied last Saturday by thousands of anti-government protesters braced for a prolonged siege with riot police.
"There's too much trouble in Bangkok, so we've decided to switch the venue," Thai football chief Worawi Makudi said last Saturday.
"All parties have agreed, this is the best solution to the problem and Phuket is a very suitable alternative."
He added that Phuket - not affected by the crisis - is easily accessible. Worawi also said he would guarantee the safety of players and officials during their time in Phuket. The decision to move the event was made late last Saturday after a two-day meeting of regional sports authorities.
Representatives of the AFF inspected the Phuket stadium and were satisfied with preparations to move the championships. Thailand are co-hosting the fiercely-contested biennial tournament, beginning on Friday, with Indonesia.
Phuket will now host Group B, comprising Thailand, Laos, Viet Nam and Malaysia, while Indonesia, Cambodia, Myanmar and last year's winners Singapore will contest Group A in Jakarta.
The provincial 15,000-seat Sarakul Stadium is recognised by FIFA to meet international standards.
The AFF decision to move to Phuket ended Viet Nam's hopes of hosting group B matches.
"As a member of the AFF, the Viet Nam Football Federation (VFF) respects the decision to move the event to Phuket, and will do everything in our power to make the event a success," said VFF chairman Nguyen Trong Hy.
Sumitomo kicks off work on new plant
Sumitomo Nacco Materials Handling Vietnam Co Ltd has started work on a new plant to produce transmissions and axle components for forklift trucks for export.
Total investment will be about 18 million USD.
The plant is scheduled to be operational in seven months and hopes to earn 2 million USD in revenue each year.
Covering an area of about 2.7 ha in Thang Long Industrial Park , Dong Anh District, the project will be divided into three phases with the total investment capital of 60 million USD.
The second phase will involve making forklift parts and the third phase will concentrate on making the machines.
Sumitomo decided to invest in Vietnam because of the country’s labour quality, political stability, tax incentives and geographical advantages, said the company’s director, Takashi Yoneda.
The Vietnam plant follows others in the Philippines and China .
The operation is a joint venture between the Japanese Sumitomo Heavy Industries (Japanese company) and Nacco Materials Handling Group Inc of the United States.
Vietsovpetro fulfills yearly plan ahead of schedule
The Vietnam-Russia Petroleum Joint Venture (Vietsovpetro) said it has fulfilled its 2008 exploitation plan one month ahead of schedule, with a total output of 7.1 million tonnes of crude oil.
Vietsovpetro General Director Tran Le Dong said on December 2 that the JV plans to tap 600,000 more tonnes of oil in the remaining days of the year.
By November 30, Vietsovpetro had raked in over 6 billion USD from crude oil export, an 82.6 percent increase over its plan.
It also fulfilled its yearly turnover target in early July and finished an annual plan of bringing ashore gas from the Bach Ho oilfield in November.
Compliance with int’l standards key to success
Vietnamese businesses have strictly observed international standards governing the quality of their products, according to Hans Farnhammer, deputy head of the Cooperation and Development Section of the European Commission’s Delegation to Vietnam .
Speaking at a seminar organised in Hanoi on Dec 12, Farnhammer stressed the importance of the adherence to internationally-recognised standards as an effective tool for increased competitiveness.
He also suggested that, in addition to standards governing quality, Vietnamese businesses should focus their attention on the safety and security of goods throughout the export process.
Sharing this view, Doan Duy Khuong, vice chairman of the Vietnam Chamber of Commerce and Industry (VCCI), said that compliance with international standards is crucial to the existence and development of local businesses.
Participants at the seminar discussed a number of issues relating to quality control in international trade, the requirements of importing nations, the challenges posed by different nations’ legal systems and infrastructure and the ability of businesses to meet them.
The seminar on quality management in a competitive environment is part of the EC’s technical assistance programme supporting Vietnam ’s transition to a market economy that is being implemented between 2005 and April 2009.
More commercial service agencies to be opened in Africa
Nguyen Cong Hien, Deputy Director of the Department of Trade Policies for Africa and West-South Asia under the Ministry of Industry and Trade (MOIT) said that Vietnam is considering open more commercial affairs agencies in Africa to boost exports to the market.
Hien, in the recent interview given to Thoi bao Kinh te Vietnam, said that Vietnam has opened five commercial affairs agencies in the Middle East, including in Kuwait, Iran, Turkey, UAE and Iraq, while the network of trade representatives in Africa remains too thin with just five agencies in 54 countries.
“Five trade representatives prove to be too few if compared to the bigger potential of the market. Therefore, the Ministry of Industry and Trade is considering opening some more commercial affairs agencies in the region,” Hien said.
He added that the Government has recently decided to assign the MOIT to draw up the plan to open commercial affairs agencies in Ghana and Tanzania.
When talking about the opportunities to do business in the Middle East and Africa, Hien said that businesses should be brave with doing business in the markets where there are a lot of challenges.
“We have set up the plan to promote exports to Africa. In 2008, the Government chose the Middle East as the new key market for trade promotion activities. In 2009, the MOIT has decided that Africa will be the new market worth of much attention, no matter if the Government chooses Africa as the key market or not,” Hien said.
He went on to say that his department has joined forces with the Vietnam Trade Promotion Agency (Vietrade) to build up the national promotion programs, under which delegations of businesses will be sent to Africa to establish and develop trade ties with some countries. The main markets in Africa are South Africa, the leading economy in the region, West Africa and East Africa.
In fact, Vietnam’s exports to Africa prove to be lower than to other markets like America, Europe, Asia and the Middle East. Two reasons have been cited to explain this, being the long distance between Vietnam and Africa, and the lack of information about partners.
The payment capability also remains a problem in the trade between Vietnam and Africa. However, Hien believes that Vietnamese businesses are creative enough to find out the solutions to the problem.
Vietnamese enterprises have been exporting to Africa under different channels, including direct export, export via the Food and Agriculture Organisation (FAO), or production and export on the spot.
A Vietnamese tobacco factory has been reportedly trying to make procedures to produce and sell tobacco in the country. This method allows taking full advantage of the cheap labour in the country, and materials, while allowing the selling of products in the market. Besides, Vietnamese companies can take full advantage of the GSP Generalized System of Preferences to export the products to Europe and America.
In 2008, the Middle East is chosen as the key market for trade promotion activities. It is expected that in 2008, Vietnam’s exports to the market will increase by 30% over 2007. Vietnam has become the country which has trade surplus in the trade with the region.
