PM issues call to protect hydro-electric power plants

HA NOI — Prime Minister Nguyen Tan Dung has told authorities in charge of reservoirs in the same river basins to co-ordinate their operations in accordance with procedures developed by the Ministry of Natural Resources and Environment.

The procedures aim to ensure the absolute safety and effectiveness of hydro-electric plants along the rivers and reduce flood water.

In all, 61 reservoirs in 11 river basins across the country should co-ordinate their operations, including the Hong (Red) River basin in the northern delta, Quang Ngai Province's Tra Khuc River, Quang Nam Province's Vu Gia-Thu Bon River system, Thua Thien-Hue Province's Huong (Perfume) River, Thanh Hoa Province's Ma River, Phu Yen Province's Ba River and Dong Nai Province's namesake river, among others.

With 13, the Dong Nai River basin has the highest concentration of reservoirs in the country.

The Prime Minister also issued procedures for co-ordination between the A Vuong, Dac Mi 4 and Song Tranh 2 reservoirs in the Vu Gia-Thu Bon River system basin.

The river system supplies water to 58 hydro-electric projects which are either completed or under construction in the basin.

Last November, the A Vuong Reservoir was blamed for exacerbating downstream flooding by releasing more flow to avoid the break of its embankments.

As a result, Quang Nam Province People's Committee asked the Ministry of Industry and Trade to develop more suitable procedures for the operation of reservoirs in the basin with a view to increasing the volume of water stored in rainy seasons.

In another development, a spell of cold weather is forecast to arrive in the north today, causing torrential rain in central provinces from Nghe An to Ha Tinh, according to the National Hydro-meteorological Centre.

The National Committee for Flood Prevention and Control yesterday sent an urgent message to its branches and search and rescue groups in coastal provinces from Nghe An to Quang Ngai to carefully monitor changes in the weather.

The provinces were also instructed to watch over households in low lying areas and in areas prone to flash floods and landslides. They were told to prepare to evacuate if necessary and to have food, water and necessities ready to cope with heavy rains forecast to hit the provinces today.

They were also asked to check reservoir levels and any possible problems resulting from rising waters, and to prepare facilities to cope with bad situations.

The message was also sent to committees of provinces from Binh Dinh to Kien Giang, asking them to follow the development of the tropical front, and manage ships and vessels accordingly.

The Ministry of Industry and Trade was requested to ask Electricity of Viet Nam to ensure its reservoirs are fully operational in the event of flooding.

At 1pm yesterday, the tropical pressure was located at 10.5-12.5 degrees north latitude and 110-112 degrees east longtitude, on the waters north of Truong Sa (Spratly) Archipelago, causing strong winds at speed of 49-61 kmph. — VNS

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Prince Andrew returns to deepen UK-Vietnam ties

HCMC - Prince Andrew will come back to Vietnam tomorrow to represent the United Kingdom at the 1,000th grand celebrations of Thang Long-Hanoi and to further speed up bilateral trade and investment relations with Vietnam.

The UK Embassy in Hanoi said on Thursday that Prince Andrew would visit Vietnam from tomorrow to next Wednesday in his capacity as the UK Special Representative for International Trade and Investment.

The Duke of York’s upcoming visit aims to raise the UK’s profile as a major trading and investment partner of Vietnam, about one month after the UK and Vietnam inked a strategic partnership to spur multi-faceted cooperation.

As scheduled, Prince Andrew will attend a gala dinner tomorrow and the parade at Ba Dinh Square the day after in Hanoi. As a guest of the Vietnamese Government, he will call on the country’s President and Prime Minister and be at a lunch hosted by Deputy Prime Minister cum Foreign Minister Pham Gia Khiem.

The dignitary will attend the opening of the British University of Vietnam and the launch of the Duke of York Scholarship as well as the inauguration of the Oxford University Clinical Research Unit at the National Hospital for Tropical Diseases, of Standard Chartered Bank’s latest branch and Savills’ new premises.

Prince Andrew will deliver the closing remarks at a seminar on public private partnerships to help promote the concept and the expertise of the UK as a provider of PPP solutions before traveling to HCMC next week to meet with municipal authorities.

In HCMC, Prince Andrew will have meetings with British companies on urban development, financial services and the oil and gas industry. Also on the agenda is a meeting with Vietnamese entrepreneurs, which also highlights further investment opportunities for British companies in Vietnam, and encourage Vietnam to regard the UK as the main business gateway into Europe.

Prime Minister Nguyen Tan Dung’s first-ever visit to the UK in March 2008 laid a firm foundation for further UK-Vietnam cooperation. Last year saw UK's imports from Vietnam reach some US$1.8 billion and exports to this country stand at about US$348 million.

The UK is Vietnam’s third largest European Union investor after France and the Netherlands, with 126 projects worth over US$2.2 billion as of June 2010, according to the Ministry of Planning and Investment.

Prince Andrew was in Vietnam in October last year to meet with Prime Minister Dung and other high-ranking officials and to launch the third UK-Vietnam Joint Economic and Trade Committee (JETCO) meeting in Hanoi.

He also visited Vietnam in 1999, 2006 and then 2008 when he witnessed a ceremony awarding local incorporation licenses to Standard Chartered and HSBC banks.

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Japan stands firm on FX, China lets yuan rise

Photo: Reuters

TOKYO - Japan said it will continue to intervene to curb a strong yen if necessary, just hours before G7 and IMF officials meet to discuss escalating tension over currency policies, and Thailand is also poised to act.

China, which has rebuffed calls from the West to let its currency rise faster, allowed the yuan to firm on Friday to its highest against the dollar since a revaluation in July 2005.

Traders said Beijing may be making some concessions ahead of International Monetary Fund and World Bank meetings this weekend. But they said any further rise would be limited so as not to harm its exports.

With positions entrenched, expectations for any meaningful agreement in Washington are low although fears of a global currency war have jumped to the top of the agenda.

"We are approaching a G7 meeting, but regardless of this, Japan will take firm measures, including intervention, when needed," Japanese Finance Minister Yoshihiko Noda told reporters when asked about the yen's rise to another 15-year high on Thursday. "This is Japan's basic stance."

Japan, worried a strong yen would hit its vital export sector, intervened in the market for the first time in six years last month, drawing criticism from its peers.

Prime Minister Naoto Kan sounded a little more conciliatory, saying Tokyo wanted to cooperate with its Group of Seven peers on currencies, but in the same breath reiterated the message that the authorities would take "decisive steps" if needed.

G7 leaders hold a closed-doors dinner on Friday.

Emerging anger

Global policymakers have been clashing over the dollar's broad-based decline, with emerging economies stepping up efforts to cap their currencies, actions which developed nations argue could derail economic recovery.

Thailand's finance minister will propose measures to handle the baht's strength at a cabinet meeting next week, Prime Minister Abhisit Vejjajiva said on Friday.

The baht, which has risen about 11 percent against the dollar this year, the second-best performer in Asia after the yen, slipped after the comments.

Russian Deputy Finance Minister Dmitry Pankin said Brazil, China, India and Russia -- the so-called BRICs -- see the current moves in emerging markets currencies as a deeper problem that cannot be solved through a free float.

"Free float is not an exit prescription, it's not a prescription for all illnesses," he told reporters after a meeting of deputy finance ministers in Washington on Thursday.

Chinese premier Wen Jiabao, in Europe this week, politely rejected calls to let the yuan appreciate faster and Brazil on Monday doubled a tax on foreign investors buying local bonds, trying to curb a currency rally.

Yi Gang, a deputy governor of the People's Bank of China (PBOC), was quoted as saying on Friday that while China would continue to reform its exchange rate regime a sharp rise in the yuan would harm its economy.

Entrenched positions

Despite low expectations for the weekend talks in Washington, moves are afoot to create a more effective forum to tackle currency issues.

France will start talks on overhauling the global monetary system during its forthcoming G20 presidency to improve policy coordination and stem capital flows distorting exchange rates, Economy Minister Christine Lagarde said.

"If you look ... at the latest moves that are taking place, whether from Brazil or from Japan for instance, let alone from China, you really wonder what kind of coordination there is," she said.

German newspaper Frankfurter Allgemeine Zeitung reported that IMF chief Dominique Strauss-Kahn plans to present the lender's members with a "systemic stability initiative" which will bring together the world's leading economic powers in a regular forum aimed at resolving currency issues.

Participants would include the United States, large European countries, Japan, China and other emerging market countries that are important for the global financial system, the newspaper said without citing sources.

Officials from developing markets say ultra-low interest rates in rich countries are fueling massive fund flows into their markets, pushing up their currencies and inflating prices of stocks, property and other assets.

Japan cut interest rates to zero this week and the US Federal Reserve is also expected to ease policy further.

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Ministry mulls curbs on cement production

Photo: Reuters

The Ministry of Construction plans to propose to the Prime Minister a suspension in the licensing of new cement production projects to limit the sector's overheating development, and unnecessary waste of energy.

Vu Quang Diem, Deputy Director of the Ministry's Building Materials Department, said in terms of the building materials production sector, the cement sector was the most energy-inefficient.

For each million tons of cement produced, the power sector had to supply 90-95 million kWh, Diem said.

The rapid growth of the building materials production industry, including the cement sector, had put pressure on infrastructure, especially the power sector, Diem said.

The most worrying problem was the number of new cement projects, many of which were inefficient and used out-of-date technology, would continue to rapidly increase if management was not tightened, he said.

The boom would lead to a waste of energy and harm the environment, he added.

The Department was developing a plan for cement sector development until 2015, with an orientation to 2025 to submit to the Government.

The ministry proposed a suspension of investment in 13 projects which had been approved in Prime Minister's Decision 108/2005/QD-TTg issued in 2005, but had not been carried out or would be harmful to the environment if continued.

As an alternative, the authority petitioned the Prime Minister to agree to the construction of nine projects which had more favorable local conditions and would have a significantly beneficial affect on the development of the region where they were located.

The ministry also asked for stricter punishment on projects that failed to meet schedules.

The head of the ministry's Department of Science, Technology and Environment, Nguyen Trung Hoa, said that it was difficult to compel enterprises to spend hundreds of millions of US dollars to renew technology.

Therefore it was necessary to offer preferential lending policies, so that companies would find it easier to access loans to upgrade energy-saving technology, he said, adding that a raft of complicated administrative procedures was one of obstacles that made companies hesitate when considering upgrading their technology.

The Government should strictly implement the regulation that forced cement factories to re-use exhaust fume heat discharged to generate power, as the temperature of the exhaust fumes could reach up to 370 degrees Celsius, Hoa said.

If factories could take advantage of this energy source, they could save 30 per cent of the electricity they consumed, he added.

Although the policy had been outlined in Decision 108, many enterprises had not been interested in it, Hoa said.

Diem suggested that the Government only license new projects which included the construction of a power generator using exhaust fumes.

According to the ministry, by the end of 2009, total design capacity of all cement factories nationwide was 57.4 million tons per year, which could fully satisfy domestic consumption demand. However, this year, total capacity had added an additional 11.7 million tons to output.

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Ministry mulls curbs on cement production

The Dien Bien Cement Plant began operations in the northern province of Dien Bien this month. — VNA/VNS Photo Manh Thanh

HA NOI — The Ministry of Construction plans to propose to the Prime Minister a suspension in the licensing of new cement production projects to limit the sector's overheated development, and unnecessary waste of energy.

Vu Quang Diem, Deputy Director of the Ministry's Building Materials Department, said in terms of the building materials production sector, the cement sector was the most energy-inefficient.

For each million tonnes of cement produced, the power sector had to supply 90-95 million kWh, Diem said.

The rapid growth of the building materials production industry, including the cement sector, had put pressure on infrastructure, especially the power sector, Diem said.

The most worrying problem was the number of new cement projects, many of which were inefficient and used out-of-date technology, would continue to rapidly increase if management was not tightened, he said.

The boom would lead to a waste of energy and harm the environment, he added.

The Department was developing a plan for cement sector development until 2015, with an orientation to 2025 to submit to the Government.

The ministry proposed a suspension of investment in 13 projects which had been approved in Prime Minister's Decision 108/2005/QD-TTg issued in 2005, but had not been carried out or would be harmful to the environment if continued.

As an alternative, the authority petitioned the Prime Minister to agree to the construction of nine projects which had more favourable local conditions and would have a significantly beneficial affect on the development of the region where they were located.

The ministry also asked for stricter punishment on projects that failed to meet schedules.

The head of the ministry's Department of Science, Technology and Environment, Nguyen Trung Hoa, said that it was difficult to compel enterprises to spend hundreds of millions of US dollars to renew technology.

Therefore it was necessary to offer preferential lending policies, so that companies would find it easier to access loans to upgrade energy-saving technology, he said, adding that a raft of complicated administrative procedures was one of obstacles that made companies hesitate when considering upgrading their technology.

The Government should strictly implement the regulation that forced cement factories to re-use exhaust fume heat discharged to generate power, as the temperature of the exhaust fumes could reach up to 370 degrees Celsius, Hoa said.

If factories could take advantage of this energy source, they could save 30 per cent of the electricity they consumed, he added.

Although the policy had been outlined in Decision 108, many enterprises had not been interested in it, Hoa said.

Diem suggested that the Government only license new projects which included the construction of a power generator using exhaust fumes.

According to the ministry, by the end of 2009, total design capacity of all cement factories nationwide was 57.4 million tonnes per year, which could fully satisfy domestic consumption demand. However, this year, total capacity had added an additional 11.7 million tonnes to output. — VNS

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EU, Vietnam say to start talks on free-trade pact soon

European Commission President Jose Manuel Barroso (R) shakes hands with Vietnam's Prime Minister Nguyen Tan Dung before their meeting at the EU Commission headquarters in Brussels on Monday - Photo: Reuters

BRUSSELS - The European Union and Vietnam will start negotiations on a free trade pact soon, EU and Vietnamese leaders said on Monday, fuelling Vietnamese hopes of being recognized by the EU as a free market economy.

Vietnamese Prime Minister Nguyen Tan Dung said free trade talks should also lead to an end to contentious EU import duties on Vietnamese-made shoes and greater access for Vietnam to the EU’s consumer markets under the EU’s Generalized System of Preferences for developing states.

“With the result obtained on Tuesday, the recognition by the European Union of Vietnam as a market economy ... will be agreed soon,” the Prime Minister told journalists after a meeting with Jose Manuel Barroso, President of the EU’s executive Commission.

The EU and Vietnam will launch free trade talks “as soon as possible”, Barroso said.

The two leaders met on the first day of a two-day summit of EU and Asian heads of state, which will address global financial governance issues, IMF voting rights, security issues, climate change and international trade.

Since talks for a global trade accord stalled at the World Trade Organization in 2006, the European Union has pursued bilateral trade accords, notably with Asian trading powers.

The bloc will this week sign its first bilateral free trade pact -- with South Korea -- and hopes to seal a deal with India this year.

With efforts frustrated for a regional trade accord with the ten-state Association of Southeast Asian Nations, the EU is considering individual pacts with Vietnam, Singapore and Malaysia.

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Nation’s longest avenue opened to traffic in Hanoi

Prime Minister Nguyen Tan Dung joins government officials and Hanoi City leaders pose next to the Thang Long Avenue sign at the inauguration of the country’s longest avenue in Hanoi yesterday on the occasion of the 1,000th anniversary of the capital city - Photo: TTXVN

HCMC - Prime Minister Nguyen Tan Dung on Sunday opened to traffic Thang Long Avenue, the country’s longest and most modern, marking a strategically significant development toward Hanoi’s western part.

Speaking at the inauguration, the Government leader highlighted the role of this new modern thoroughfare, saying it would make important contributions to the capital city’s development, the Vietnam News Agency reports.

He praised the Ministry of Transport, the city authorities and constructors for having completed the road at a time when Hanoi is celebrating its 1,000th birth anniversary.

Thang Long is the first urban expressway that has been designed and built entirely by local experts and contractors. The road, measuring 30 km in length and 140 m in width, cost over VND7.5 trillion.

The avenue connects the heart of Hanoi with satellite urban areas such as Xuan Mai, Mieu Mon and Son Tay, and tourist attractions including Ba Vi, Suoi Hai, and the Vietnam Ethnic Cultural Village.

With one end at Ho Chi Minh National Highway, it also links Hanoi with other provinces.

In particular, Thang Long Avenue is expected to facilitate the development of the Lang-Hoa Lac Hi-Tech Park, one of the country’s largest scientific and technological centers.

According to the city government, the city had to clear more than 500 hectares of land and relocate over 8,000 families and some state agencies and organizations along the road.

Neighboring Hoa Binh Province has started work on a road connecting to Thang Long Avenue which has 51 overpasses.

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Target to hold prices and curb power cuts

HA NOI — The Government will instruct relevant agencies to carry out synchronous measures to control prices, while overcoming power shortages, Prime Minister Nguyen Tan Dung said at the Government's regular monthly meeting yesterday.

Participants at the meeting were told that the Prime Minister would soon issue an instruction on price controls in an attempt to stabilise the market up to early 2011.

Dung said a nationwide conference would be held on implementing the instruction in a bid to fulfil this year's socio-economic targets, such as controlling inflation.

He stressed the need to maintain a stable prime rate, to manage the monetary system in an active but flexible way and to keep the price of essential commodities and medicines stable.

The Prime Minister asked ministries, cities and provinces to reserve enough goods to serve public demand during the lunar new year celebrations.

In an attempt to overcome power shortages, Dung urged electricity suppliers – particularly the Electricity of Viet Nam – to take drastic measures to speed up the construction of power plants, while buying electricity from neighbouring countries and cutting down on waste.

Participants at the meeting heard that the socio-economic situation had developed positively in the first nine months of this year. The economy had recovered fairly quickly after the global downturn and performed better than the same period in 2008 and 2009.

Specifically, the gross domestic product growth averaged 6.52 per cent in the first nine months, while industrial production was higher than the whole year's plan.

Export turnover was about US$51.5 billion in the first nine months, an increase of 23 per cent compared with the same period last year and four times higher than the National Assembly's approved target of over 6 per cent.

Total import turnover was $60 billion, an increase of 22 per cent compared with the same period last year. The trade deficit continued to narrow down and stood at $8.5 billion – equal to 16.7 per cent of the total export turnover.

The consumer price index rose 8.64 per cent compared with the same period last year.

Despite much progress, the economy was still facing many difficulties, the conference heard.

The price of consumer goods had increased, as had the price of gold. The sluggish performance of some major world economies continued to affect the country's export growth.

Production and trading enterprises were still finding it difficult to borrow money because of high interest rates, the Prime Minister said. Making matters worse, the country also has to cope with natural disasters such as typhoons, flooding and epidemics.

To overcome these difficulties, the Government has asked ministries, industries, cities and provinces to ensure there are enough supplies of commodities and that prices are stable, while disbursing investment capital for projects using Government bonds and the State budget.

The meeting reviewed socio-economic development in the first nine months and discussed strategies for the remainder of 2010. — VNS

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Work begins on city's first metro

HA NOI — Construction has kicked off on Ha Noi's first light metro line.

The US$1billion line will run from Nhon in Tu Liem District to Ha Noi's Railway Station in Hoan Kiem District. The metro line is the largest public transportation project that the city has ever undertaken.

Prime Minister Nguyen Tan Dung highlighted the project's importance during a speech at the groundbreaking ceremony on Saturday. He said the new metro line would aid the capital city's construction and development, while increasing the city's public transportation capacity and easing traffic congestion in the inner city.

He also urged the municipal authorities to join with relevant agencies to expedite other public transport projects.

The 12.5km Nhon-Ha Noi Railway Station section is part of metro route No3, which will be 20km in length. The pilot is one of five metro lines approved by the Prime Minister as part of the city transportation development plan that will be completed by 2020. Ha Noi would develop three more light metro routes in the future, said Ha Noi People's Committee Chairman Nguyen The Thao.

Thao said upon its completion, the metro line, which is expected to carry 300,000 passengers a day, would improve the city's public transport capacity and ease the heavy traffic congestion in the city's western area.

Unlocking the gridlock

The rapid increase in the number of two-wheeled and four-wheeled vehicles have seriously hampered the city's transportation infrastructure.

Traffic jams are common in the city's inner district, especially in the East-West corridor linking Nhon to the city centre, reports Ha Noi Moi (new Ha Noi) newspaper.

A tunnel boring machine (TBM) will be used to build the line's tunnel, which will mitigate the impacts of the project's construction.

There will be 12 stations along the line. Each four-carriage metro is capable of serving more than 900 passengers and will be able to travel at a maximum speed of 80 km per hour. Total travel time is expected to take about 20 minutes.

The metro line is slated to be operational by late 2015 and will be built with consultancy services from France's Systra - International Consulting Engineers for Rail and Urban Transport. — VNS

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PM approves renewed VN-U.S. air transport pact

HCMC - The Prime Minister has endorsed an air transport agreement that officials of Vietnam and the United States renewed in May this year with an aim to further open the passenger and cargo transport markets for carriers of the countries to capitalize on emerging opportunities.

In Decision 1687/QD-TTg dated September 15, Prime Minister Nguyen Tan Dung told the Ministry of Transport to oversee implementing the agreement signed by Minister Ho Nghia Dung and U.S. Ambassador to Vietnam Michael W. Michalak in Hanoi.

Lai Xuan Thanh, deputy director general of the Civil Aviation Administration of Vietnam (CAAV), told the Daily last week that the renewed U.S.-Vietnam Air Transport Agreement would be effective until December 31, 2012 and subject to future renewals.

According to CAAV, the agreement is mainly based on an Open Skies accord for all-cargo services that Vietnam and the U.S. initialed around two years ago to liberalize their bilateral civil aviation relations. So, liberalization of cargo services is the most significant change scope of the new pact.

U.S. cargo carrier FedEx is cashing in on the increasing cargo services between the U.S. and Vietnam. Vietnam’s Trai Thien Air Cargo is finalizing procedures to take off, but targets Vietnam and other Asian markets in the initial time.

CAAV said passenger services terms of the new pact almost remained unchanged because Vietnam still held its right to consider awarding the fifth freedom for American airlines to disembark passengers traveling from Vietnam or board their flights at some stopovers in the northeast of Asia.

American carrier Delta Air Lines had to suspend its Tokyo-HCMC service in late March this year, nine months after running this air route, as a result of network restructuring and lacking the fifth right.

Delta Air Lines now joins a code-share service with Vietnam Airlines because both are members of the world’s airline alliance SkyTeam.

United Airlines is now the sole American operator of direct flights between Vietnam and the U.S. This carrier has flown to Tan Son Nhat International Airport via Hong Kong International Airport since 2004.

United Airlines sells discount airtickets from US$125 in September for a two-way trip between HCMC and Hong Kong. The carrier will open a new office in the Sunwah building on Nguyen Hue Boulevard in downtown HCMC later this month.

Vietnam Airlines is expected to launch its long-awaited direct passenger services to the U.S. in the second half of next year as the airline’s chief executive officer Pham Ngoc Minh told reporters at the 19th World Economic Forum on East Asia 2010 in HCMC in mid-2010.

Minh said the flagship carrier would commence the commercial passenger flights to the U.S. when the aviation authorities of the two countries had reached agreement on technical barrier and air control standards, hopefully in 2011.

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Japan ready to weaken yen again despite criticism

Foreign exchange broker stand in front of a television screen showing Japan's Finance Minister Yoshihiko Noda speaking to the media in Tokyo September 15, 2010.

Photo: Reuters

TOKYO - Japan's finance minister on Friday repeated his threat to intervene in currency markets if necessary to weaken the yen, illustrating government resolve in the face of overseas criticism.

"As we have been saying, our basic stance is that we will take decisive steps, including intervention, if necessary, and I'd like to maintain this stance," Yoshihiko Noda said at a news conference after a cabinet meeting.

Noda was retained in Prime Minister Naoto Kan's cabinet reshuffle Friday, following the premier's victory in a bruising leadership challenge this week from Ichiro Ozawa, his pro-intervention rival.

Kan likewise suggested Japan would take further action if necessary, saying at a press conference: "We cannot take our guard down when it comes to the economy."

"So far, the interventions have worked to a certain degree," he added.

Japan on Wednesday carried out its first global currency market intervention since 2004 in an estimated two trillion yen (US$23 billion) move to help safeguard an export-driven recovery.

The decision surprised markets as Kan sought to silence those accusing him of inaction and win over supporters of Ozawa.

A strong yen puts Japanese exporters at a disadvantage because it erodes their repatriated earnings and competitiveness, in turn threatening the nation's fragile growth.

However, any repeat foray into the markets if the yen resumes upward moves may provoke ire from Japan's Group of Seven partners, after its intervention Wednesday was rounded on in Washington and Brussels.

Luxembourg Prime Minister Jean-Claude Juncker on Thursday hit out at such action on currency markets, saying his eurozone partners "don't like unilateral intervention".

Juncker, who heads the Eurogroup of finance ministers who manage the shared currency, spoke out as US Treasury Secretary Timothy Geithner bluntly warned China it had to let the yuan rise against the dollar to end trade distortions.

Earlier, US Democratic Representative Sander Levin, who chairs the House Ways and Means Committee which has power over taxes and trade policy, called Japan's policy "predatory" and "deeply disturbing".

With a large trade and current account surplus, Japan has a relatively weak case to lower its currency to boost exports, some analysts argue.

And while the yen recently hit 15-year highs on nominal terms, it is still below its 1995 peak when adjusted for price changes and compared with a basket of currencies used by Japan's largest trading partners, say analysts.

Noda said he is "checking" the overseas response to the intervention, adding, "I understand there are various opinions."

The yen was at 85.72 Friday, nearly three yen off a 15-year high of 82.86 reached before the intervention.

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UK, Vietnam clinch strategic partnership

UK Secretary of State for Foreign and Commonwealth Affairs William Hague and Pham Gia Khiem, Vietnam’s Deputy Prime Minister and Foreign Minister, sign the Strategic Partnership Declaration in London on Wednesday - Photo: Courtesy of the British Foreign and Commonwealth Office

HCMC - The United Kingdom and Vietnam have entered a new era of strategic partnership following the signing of a joint declaration by Vietnam’s Foreign Minister Pham Gia Khiem and his UK counterpart.

Khiem and UK Secretary of State for Foreign and Commonwealth Affairs William Hague signed the Strategic Partnership Declaration on Wednesday in London during the UK visit by Khiem, who is also deputy prime minister, the British embassy in Hanoi said in a statement released on Thursday.

The strategic partnership elevates cooperation in both global and regional issues, as well as in bilateral relationships in areas of trade and investment, sustainable socio-economic development, education and training, science and technology, security and defense, and people-to-people links.

“Friday’s agreement with Vietnam is yet another example of the UK’s commitment to pursuing an active foreign policy with emerging powers around the world,” Hague was quoted as saying upon the signing. He stressed the agreement was a real boost for British businesses looking to invest in Vietnam.

The UK Trade and Investment (UKTI) said the UK was Vietnam’s third largest EU investor with investments worth around US$2.2 billion and a top investor in the financial service sector in this market. The opening up of other sectors will attract more UK investors to Vietnam, notably in the retail and telecom areas.

The UK now looks to the signing of an EU-Vietnam Free Trade Agreement as a landmark for companies from the region to gain greater access to Vietnam, according to the UKTI.

The UK has categorized trade and investment as one of its main focuses on Vietnam and is committed to promoting a strong trade relationship with this emerging country as it is one of the UK’s priority markets.

The evidence is that the UK has only five UK-Vietnam Joint Economic and Trade Committees (JETCO) around the world and one of which is with Vietnam. The JETCO plays an important role in enhancing investment and trade links between the two countries.

The UKTI said two-way trade between the UK and Vietnam was expanding fast, and exceeded 1.2 billion British pounds last year, or over US$1.8 billion, with exports to Vietnam experiencing a 25% year-on-year increase.

British ambassador to Vietnam Mark Kent, who accompanied the delegation, said in the statement that the UK-Vietnam relationship had expanded rapidly since Prime Minister Nguyen Tan Dung’s visit to the UK in March 2008.

“The Strategic Partnership Declaration shows the breadth and the depth of our cooperation. The UK is looking to engage more with countries in South East Asia. We see many opportunities to build links between the peoples and enterprises of both countries.”

At their meeting in London, Khiem and Hague discussed ways to heighten cooperation in existing areas and to expand into new ones.

On Friday, Khiem is scheduled to deliver his speech at the opening of the “Opportunities and policy for investment in infrastructure in Vietnam” seminar, which is aimed to promote the expertise of the UK as a provider of public-private partnership (PPP) solutions.

Also on the agenda of the Deputy Prime Minister are discussions on commercial interests in his meetings with ministers and airport authorities.

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OECD praises drive to cut red tape

HA NOI — One of the world's leading economic advisory groups, the Organisation for Economic Co-operation and Development (OECD), has praised the success of a two-year-old project to simplify State bureaucratic procedures in Viet Nam.

Known as Project 30, the three-year project was establied by Prime Minister Nguyen Tan Dung in 2007.

Under it, Viet Nam has already slashed about 30 per cent of all existing red tape.

The head of an OECD delegation that recently visited Ha Noi, Josef W.Konvitz, acknowledged that the project was playing a criti cal role in reforming public servic procedures.

Accordingto the PM's special Task Force for Administrative Procedures Reform, Konvitz said that Project 30 had already reviewed and simplified 10,000 sets of communal adminis trative procedures and 700 sets of district-level documents, slashing them down to a bare 63 sets of documents each.

This amounted to about 30 per cent of the red tape in all bureaucratic procedures.

Konvitz warned that the challenge now was to complete the reforms otherwise the situation could revert back to the complicated ways of the past.

During a working session with Vietnamese officials to assess progress, Konvitz acknowledged the commitment of the Government to achieving the reforms.

"Everybody has been working hard for the success of the project," Konvitz said.

"A few people doing business in Viet Nam have told me they are glad the project is underway and are grateful for being consulted on their experiences with administrative procedures."

Ngo Hai Phan, deputy head of a working group set up to initiate the reforms throughout the nation, said that all ministries, industries and localities nation-wide had managed to review administrative procedures as required by the Prime Minister.

The OECD and the Government Office are now assessing the progress of the reforms from 2007 to 2010. The results will be a reference for completing the programme from 2011 to 2020.

An OECD report is scheduled to be presented in November. — VNS

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US$900 million committed to Mekong Delta

Prime Minister Nguyen Tan Dung (2nd, L), Minister of Planning and Investment Vo Hong Phuc (2nd, R) and Victoria Kwakwa (R), country director of the World Bank (WB) for Vietnam, at the conference on Mekong Delta investment and development in Can Tho City on Monday - Photo: TTXVN

CAN THO – Foreign investors committed to pouring over US$900 million into the Mekong Delta while they were attending a conference on Mekong Delta investment and development in Can Tho City on Monday.

There were 10 memorandums of understanding and a letter of intent signed for 11 projects in a range of sectors such as infrastructure, energy, tourism, seafood processing, education, housing, industrial park, trade and services.  

Speaking at the conference, Prime Minister Nguyen Tan Dung said the conference provided an opportunity for investors and local authorities to learn about investment policies and find ways to cope with difficulties and improve connectivity in the region.

The conference was aimed at calling for domestic and international investors to get involved in projects in the Mekong Delta which is responsible for around 18% of Vietnam’s gross domestic product (GDP). The region also contributes 50% of the nation’s rice output, 52% of the seafood output, 70% of the fruit production, 90% of the rice export volume and 60% of the seafood export value.

However, foreign investment activity there remains lackluster in the 13-province region around 450 projects worth over US$7.7 billion licensed there so far.

Minister of Planning and Investment Vo Hong Phuc said insufficient infrastructure and manpower were major bottlenecks for investment in the delta. Although the region has Can Tho and My Thuan bridges connected to National Highway 1A, its national, interprovincial and regional road networks still have limited or no connectivity, Phuc said.

The Mekong Delta has a population of 18 million but over 85% of the work force remains untrained. Among the skilled workers, only 0.65% of them have obtained certificates, 1% vocational training diplomas and 2.57% college, university or post-graduate degrees.

Victoria Kwakwa, country director of the World Bank (WB) for Vietnam, said the WB would help the Mekong Delta attract human resources given its development potential. With WB support, the region will be able to attract more investment, she said.

In the 2006-2010 period, the delta has reached a GDP growth rate of between 10% and 12% a year. However, there remain many shortcomings in socioeconomic development in the region given slow economic restructuring, and inadequate scientific and technological applications.

The competitiveness of local businesses and products are poor and investment attraction is lower than in other parts of the country.

Ashok Sud, vice chairman of the Europe Chamber of Commerce in Vietnam, said the Mekong Delta provinces should establish specific plans for investment in key industries. He pinned high hopes on the region’s ability to make it more attractive to investors. 

The conference was co-held by the Ministry of Industry and Trade and the provincial authorities in the region, and attended by over 500 local and international delegates. This was part of the national investment promotion program.

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PM urges industrialisation of agriculture in Vinh Long

Prime Minister Nguyen Tan Dung has called on the Mekong Delta province
of Vinh Long to speed up economic restructuring by focusing on
industrial development, while tapping agricultural strengths.

The Government leader gave the advice during his working session with
the provincial administration on September 6. He said Vinh Long should
cash in on its temperate climate and fertile land which is ideal for
fruit specialties such as grapefruit and freshwater products like Tra
and Basa fish.

He asked provincial authorities to work
out policies in favour of agricultural production on an industrial
scale in harmony with rural development and improvement of farmers’
living conditions.

Dung called on the province to
increase GDP growth to over 13 percent annually in the next five years
from 11.19 percent in the 2006-10 period and per-capita incomes to 1,850
USD by 2015 from 1,000 USD at present.

The poverty
rate should drop by two percent in each of the next five years while all
industrial and medical facilities should have their waste collected and
properly treated.

All this should be done in an
effort to join the national industrialisation and modernisation cause,
the Government leader emphasised.

In this regard,
Prime Minister Dung and provincial leaders shared a view on intensifying
investment in traffic infrastructure, irrigation projects, healthcare,
education, rural vocational training and employment promotion./.

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Hai Phong needs to become modern industrial city

The northern port city of Hai Phong should make full use of its advantages, including its marine economy, agriculture, industry and human resources, to become a modern industrial and port service city by 2015.

Prime Minister Nguyen Tan Dung made the request at the Political Bureau’s working session with Hai Phong City’s Party Committee (HPC) in Hanoi on Wednesday to examine the city’s preparations for its Party congress.

The city should focus on developing seaport systems together with infrastructure, mechanics and supporting industries, port services and tourism, he said.

PM Dung asked the municipal leaders to drastically implement administrative reforms, creating favorable conditions for businesses to invest in these areas, in order to fulfill the city’s targets of reaching a GDP growth rate of 13-13.5 percent, per-capita income of over US$3,000 per year and reducing the poverty rate to 1 percent by 2015.

Hai Phong City should pay attention to environmental protection, especially solid waste treatment, speed up the shifting of labor structure by reducing the proportion of laborers in agriculture and raise the rate of households gaining access to clean water.

Regarding the building of the Party and political system, the Government leader suggested the HPC continue strongly implementing political and ideological work in the Party and among people as well as stepping up the implementation of the “Studying and following President Ho Chi Minh’s moral example” campaign.

The city needs to strengthen its apparatus in the political system and better anti-corruption work and personnel training, especially for female and young cadres, he noted.

On behalf of the Politburo, Prime Minister Nguyen Tan Dung praised the HPC’s efforts to build documents and orientations for personnel work in line with the Politburo’s Decree 37 and the Party Central Committee’s guidance.

He also spoke highly of the municipal Party Committee’s attempts during the 2006-2010 term to overcome difficulties and attain achievements in all aspects, especially a GDP growth rate of 11.15 percent and a reduction in the poverty rate to 3.8 percent.

However, he pointed out the city’s shortcomings that should be addressed in the next tenure, including unsustainable economic development, weak competitiveness and urban management and development.

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Vietnam suspends Vinashin board members amid probe

Vietnamese Deputy Prime Minister Nguyen Sinh Hung suspended two board members of Vietnam Shipbuilding Industry Group, a state-owned company that came close to bankruptcy this year, as part of an investigation.

Tran Quang Vu and Tran Van Liem were removed from the board, Nguyen Xuan Phuc, chairman of the Government Office, which oversees implementation of state plans, said in a statement posted on the government’s website late Monday.

The board is also considering the dismissal of Tran Quang Vu, chief executive officer, Tran Tuan Anh, Hanoi-based vice head of personnel at the shipbuilder, said by telephone today. The government statement said the prime minister had asked for Vu to stand down.

In July, Chairman Pham Thanh Binh was suspended from his post at Vinashin, as the company is known, as the government began an investigation into financial difficulties at the state-controlled company, which almost collapsed under VND86 trillion ($4.4 billion) of debts.

Prime Minister Nguyen Tan Dung decided on the probe to review Binh’s “responsibilities and to investigate and clarify faults,” according to a statement on the government’s website on July 14. Deputy Minister of Transport Nguyen Hong Truong was appointed as the replacement chairman.

Vinashin doesn’t have enough funds for some projects after its customers and lenders were hit by the global recession that started in 2008, the Ministry of Transportation said July 1.

The company also over-diversified its businesses and didn’t manage its cash flow and debt properly, according to the transport ministry statement.

Nguyen Quoc Anh will be appointed acting chief executive officer of Vietnam Shipbuilding Industry Group Wednesday, he told Bloomberg News by telephone Tuesday. Anh is currently the state- owned company’s business manager.

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Depuy PM praises contributions of financial sector

A NOI — Permanent Deputy Prime Minister Nguyen Sinh Hung urged the financial sector to continue its long-established traditions and push to maintain an efficient financial system as the nation was entering a new stage of development.

"The financial sector will play an important role in transforming Viet Nam into a modern industrialised nation by 2020," he said.

The remarks were made at the ceremony to mark the 65th anniversary of the establishment of Viet Nam's financial sector, held in Ha Noi last Saturday. Former President Tran Duc Luong and former vice chairman of the National Assembly Truong Quang Duoc were also present at the ceremony.

Hung called on officials in the financial sector to continue to demonstrate their public spiritedness and selfless attitude, following the teachings of President Ho Chi Minh.

While praising the remarkable contributions of the sector to the country's development over the past 65 years, he asked the sector to enhance its capacity to be able to respond to new demands in the context of deeper economic integration, reflected through the increasing export-import turnover in the GDP ratio.

Finance Minister Vu Van Ninh said the sector had shown its great responsibilities to the country by efficiently utilising and managing the national budget. In order to achieve this, the sector had completed building a relatively comprehensive legal framework on management of State budget, taxation, financial markets, prices and more.

He said the State's financial strength had been consolidated over time. The annual State budget collection was generally higher than initial targets and on an upward trend. The State budget in 2010 increased its size about six-fold compared to 2000.

"Financial security has been maintained with overspending well managed and public debt remains within the realm of safety," he said.

Early this month, the Prime Minister approved to title the day of the establishment, August 29—to be the sector's traditional day. — VNS

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Bright economic outlook prompts ASEAN to boost trade, investment

Prime Minister Nguyen Tan Dung (7th right) and heads of delegations of ASEAN countries at the 42nd ASEAN Economic Meeting in central Da Nang City. — VNA/VNS Photo Duc Tam

DucNG — ASEAN economic ministers agreed on a variety of measures to boost trade and investment within the bloc and with outside partners, as they expressed confidence on regional economic prospects and headed to the establishment of an ASEAN Economic Community (AEC) by 2015.

They reached agreements at the 42nd ASEAN Economic Ministers' Meeting and the fourth ASEAN Economic Community Council Meeting, that both started in Da Nang yesterday.

Prime Minister Nguyen Tan Dung opened the meeting, re-affirming the importance of a comprehensive, balanced and systematic approach in policy co-ordination at national and regional levels.

"This year is a pivotal year for the association in establishing the ASEAN Community, resting on the three pillars of political-security, economic and socio-cultural communities on which the economic community is making remarkable progress," Dung said.

"A single market and production base has taken shape on the basis of highly harmonised domestic trade-related regulations and macro policy co-ordination among ASEAN member states," he said.

He noted that member countries should pursue balanced and sustainable development policies and strike a balance between economic development targets, macro-economic stability and social development.

At the meeting, ministers forecast ASEAN's real GDP growth to reach over 5 per cent this year, compared with only 1.5 per cent last year. The region was significantly helping drive global economic recovery, besides key economies such as China and India, they said.

Ministers noted that ASEAN's total merchandise trade value remained resilient at about US$1.54 trillion last year, while trade surplus with the rest of the world reached $61.2 billion in 2009, doubling that of 2008.

They also affirmed that trade with its dialogue partners remained strong despite the global financial and economic crisis, especially with China, the European Union and Japan.

ASEAN's share of total global foreign direct investment (FDI) inflow increased from 2.8 per cent in 2008 to 3.6 per cent in 2009, and ministers anticipated higher FDI into ASEAN from this year.

The EU tops the FDI into the region with a share of 18.3 per cent, followed by Japan with 13.4 per cent, and the US with 8.5 per cent. Intra-ASEAN investments are also significant, accounting for 11.2 per cent.

Ministers reaffirmed their resolve to ensure the timely and substantive implementation of measures in the AEC Blueprint to ensure the credibility and integrity of ASEAN economic integration, with the realisation of a single market and production base in 2015.

Ministers acknowledged important progress in such processes as tariff reduction and elimination, trade facilitation, the implementation of the ASEAN Trade in Goods Agreement and the ASEAN Single Window.

They committed to eliminate all forms of non-tariff barriers to maximise benefits from tariff reduction and further promote trade facilitation measures for a free flow of goods in the region.

They also agreed to boost investments through joint investment promotions and the engagement of the private sector in further consultations on improving ASEAN investment climate.

The Strategic Plan of Action for ASEAN SME Development over the next five years was endorsed at the meeting, as ministers underscored the importance of bringing small- and medium-size enterprises (SMEs) into the mainstream of the bloc's economic integration.

Ministers agreed to continue to hold regular talks with industry associations and private sector representatives from ASEAN and dialogue partners; appreciated the implementation of trade and investment agreements with China, South Korea, India, Australia and New Zealand; and expected progress in economic co-operation with the East Asia region.

An important issue was that, they said, development gaps among ASEAN member nations should be narrowed.

"Development gaps remain a fundamental issue that we need to correct," ASEAN Secretary General Surin Pitsuwan told reporters on the sideline of the meeting. "A house divided by such gaps is not stable."

"That's a concern for all of us (ASEAN nations) and it has come up quite often at the highest levels how to bridge these gaps," he said, adding that ASEAN's dialogue partners would play significant roles in helping to solve the problem.

Japanese co-op

On the same day, PM Dung received Japanese Minister of Economy, Trade and Industry Masayuki Naoshima in Ha Noi on his working visit to Viet Nam.

The Prime Minister welcomed Naoshima and his delegation to the ASEAN Economic Ministers' Meeting in Viet Nam, expressing his pleasure at the positive development of co-operative ties in economy, trade and investment between the two countries, despite the global economic downturn.

Naoshima said that as a strategic partner with technical experience in the construction of nuclear power plants, Japan wished to co-operate with Viet Nam in this field in the future.

Dung spoke highly of the safety of Japanese technology in this field and said he wished the two countries would soon discuss the signing of an agreement to develop nuclear energy for peaceful purposes.

Naoshima said Japan would consider putting forward the second session of the Viet Nam-Japan Dialogue Forum on market economy, supporting Viet Nam in the area of animal quarantine, providing official development assistance for the building of infrastructure and helping Viet Nam to maximise energy efficiently.

On the same day, the Japanese minister was received by Politburo member Truong Tan Sang who is also the permanent member of the Secretariat of the Party Central Committee.

Sang confirmed Viet Nam's consistent policy of developing co-operative ties with Japan, adding the country would consider co-operation with Japan in nuclear energy. — VNS

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Foreign partners sought for Hue airport upgrade

Vietnam is looking for partnerships with foreign investors to develop Phu Bai Airport in the central province of Thua Thien-Hue into an international one that can serve five million passengers in 2020.

Deputy Prime Minister Hoang Trung Hai has asked the Ministry of Transport to work with concerned agencies and create plans for such a partnership.

Prime Minister Nguyen Tan Dung had in July last year approved a plan to upgrade the airport so that it can meet international standards and receive large aircraft. It can only serve 500,000 passengers a year at present. 

Last month the provincial administration requested the government’s consent for attracting foreign investment to upgrade the airport.

State-run Middle Airports Corporation, which manages Phu Bai and six other airports in the central coastal and highlands region, said it had signed a Memorandum of Understanding with Singapore's Changi Airport International in 2008 to form a joint venture for the upgrade project.

Both sides, however, have failed to agree on many key issues, including partnership benefits and management.

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