Saturday, December 6, 2008

Vietnam, Laos enhance cross-border trade

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.


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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.

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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.


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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.


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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.


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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.


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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.


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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.


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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.”


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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.


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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.


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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.


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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.


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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.


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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.


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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.

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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, Thailand proves to have the sharpest tax cut of up to 70%.


Vietnam has officially done two of the three measures; it has adjusted the exchange rate and interest rates. The specific characteristics of Vietnam are that it has limited resources, while it has to fight against inflation and consider stimulating the demand at the same time. Therefore, before stimulating the demand, it is necessary to stimulate the supply, helping enterprises operate well, so that laborers have stable incomes, and farmers can sell their products. Export companies need to provide favorable conditions to consume their products in the context of the import countries’ crisis.

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 Enterprise Association


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 Hanoi Industrial and Commercial Association


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 Vietnam


Neighboring countries in the region, including Thailand and Cambodia, have cut taxes to help businesses overcome the difficulties caused by the crisis. Vietnam should also consider adjusting tax policies.


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.

Source: DTCK

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Thursday, December 4, 2008

Total buys up Gas Saigon

Elf Gas, a joint venture between the French oil and gas group Total and the Saigon Construction Corporation, on Tuesday stated it had bought 100% of Gas Saigon Company’s shares. The value of this deal was not revealed.

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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.


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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

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Securities companies: only top 20 will survive

Only the 20 securities companies with the biggest operation scales and greatest efficiency will be able to survive the current gloomy market, according to the Investment Analysis Division under APEC Securities Company.

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).


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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.

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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.

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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.

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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.

Source: VNA

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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


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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.


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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.


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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.


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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.


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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.


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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.


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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 .


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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.

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