Asian markets slip as Bernanke fails to lift sentiment

Photo: Reuters

HONG KONG - Asian stocks fell Monday as traders were underwhelmed by the US Federal Reserve's strongest indication yet that it will inject cash into the economy.

The dollar edged down towards last week's 15-year low on the expected US pump-priming measures, while dealers also looked ahead to a meeting of G20 finance ministers to be held in South Korea at the weekend.

Hong Kong lost 1.21 percent, or 288.25 points, to end at 23,469.38 and Sydney ended down 0.79 percent, or 37.1 points, at 4,651.9.

Tokyo closed 1.76 points lower at 9,498.49 and Seoul slipped 1.41 percent, or 26.87 points, to 1,875.42.

Shanghai gave up 0.54 percent, or 15.93 points, to finish at 2,955.23.

Markets got an anemic lead from Wall Street, where the Dow edged down 0.29 percent on Friday despite Fed chairman Ben Bernanke saying the central bank was ready to take steps to boost the economy.

Bernanke said the current inflation rate was too low and raised the specter of deflation, which would send prices and wages spiraling downwards and force firms to the wall. Unemployment is already sky-high in the United States, with one in 10 people out of work.

"The risk of deflation is higher than desirable," he said.

The Fed was "prepared to provide additional accommodation if needed to support the economic recovery and to return inflation over time to levels consistent with our mandate".

Bernanke's comments raised already elevated expectations that the Fed is ready to pump billions into the financial system, in what is known as quantitative easing, effectively printing money.

However, IG Markets strategist Ben Potter said: "US leads were fairly mixed in terms of economic data and Bernanke didn't shed too much light."

"He sounded a bit cautious, so the market's thinking perhaps he will do any quantitative easing in smaller chunks," he told Dow Jones Newswires.

The dollar edged down in Tokyo trade. It was quoted at 81.15 yen, slipping from 81.44 yen in New York late Friday and heading towards last week's 15-year-low of 80.88 yen.

The Australian dollar was sitting at 98.33 US cents in European trade after it reached parity for the first time last week.

Profit-taking saw the Aussie dip back Monday after it peaked at $1.003 late Friday, the first time it has reached US parity since it was floated in December 1983.

The euro bought $1.3883 in Tokyo afternoon trade, down from $1.3973 dollars in New York late Friday. The European single currency briefly shot up to $1.4159, its highest since January 26, in New York.

The yen's gains have been capped by Japanese authorities' threats to intervene in the currency markets for a second time in just over a month.

Tokyo stepped into the markets for the first time in six years on September 15, selling the yen in a bid to shore up the country's key export sector.

"The dollar is drawing buy-backs against the euro and Australian dollar," said Tsunemasa Tsukada, chief manager at the currency sales desk of Mitsubishi UFJ Trust and Banking.

"I believe the longer-term trend is a weak dollar but some adjustment moves (on the dollar's recent plunge) are going on," Tsukada said.

The possibility of intervention comes amid growing fears of a currency war in which nations weaken their units to bolster their exporters and in turn give a much-needed boost to their economies.

The International Monetary Fund was holding a meeting with central bank officials from around the world to discuss the issue and try to plot a course for sustainable global recovery.

The meeting, hosted by the People's Bank of China in Shanghai, comes ahead of this week's Group of 20 meeting in South Korea, where currency reform is expected to dominate talks.

On oil markets New York's main contract, light sweet crude for November delivery eased 51 cents to $80.74 a barrel and Brent North Sea crude for December was 60 cents lower at $81.85 a barrel.

Gold closed at $1,356.00-$1,357.00 an ounce in Hong Kong, down from Friday's close of $1,378.50-$1,379.50.

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Asian markets slip as Bernanke fails to lift sentiment

Photo: Reuters

HONG KONG - Asian stocks fell Monday as traders were underwhelmed by the US Federal Reserve's strongest indication yet that it will inject cash into the economy.

The dollar edged down towards last week's 15-year low on the expected US pump-priming measures, while dealers also looked ahead to a meeting of G20 finance ministers to be held in South Korea at the weekend.

Hong Kong lost 1.21 percent, or 288.25 points, to end at 23,469.38 and Sydney ended down 0.79 percent, or 37.1 points, at 4,651.9.

Tokyo closed 1.76 points lower at 9,498.49 and Seoul slipped 1.41 percent, or 26.87 points, to 1,875.42.

Shanghai gave up 0.54 percent, or 15.93 points, to finish at 2,955.23.

Markets got an anemic lead from Wall Street, where the Dow edged down 0.29 percent on Friday despite Fed chairman Ben Bernanke saying the central bank was ready to take steps to boost the economy.

Bernanke said the current inflation rate was too low and raised the specter of deflation, which would send prices and wages spiraling downwards and force firms to the wall. Unemployment is already sky-high in the United States, with one in 10 people out of work.

"The risk of deflation is higher than desirable," he said.

The Fed was "prepared to provide additional accommodation if needed to support the economic recovery and to return inflation over time to levels consistent with our mandate".

Bernanke's comments raised already elevated expectations that the Fed is ready to pump billions into the financial system, in what is known as quantitative easing, effectively printing money.

However, IG Markets strategist Ben Potter said: "US leads were fairly mixed in terms of economic data and Bernanke didn't shed too much light."

"He sounded a bit cautious, so the market's thinking perhaps he will do any quantitative easing in smaller chunks," he told Dow Jones Newswires.

The dollar edged down in Tokyo trade. It was quoted at 81.15 yen, slipping from 81.44 yen in New York late Friday and heading towards last week's 15-year-low of 80.88 yen.

The Australian dollar was sitting at 98.33 US cents in European trade after it reached parity for the first time last week.

Profit-taking saw the Aussie dip back Monday after it peaked at $1.003 late Friday, the first time it has reached US parity since it was floated in December 1983.

The euro bought $1.3883 in Tokyo afternoon trade, down from $1.3973 dollars in New York late Friday. The European single currency briefly shot up to $1.4159, its highest since January 26, in New York.

The yen's gains have been capped by Japanese authorities' threats to intervene in the currency markets for a second time in just over a month.

Tokyo stepped into the markets for the first time in six years on September 15, selling the yen in a bid to shore up the country's key export sector.

"The dollar is drawing buy-backs against the euro and Australian dollar," said Tsunemasa Tsukada, chief manager at the currency sales desk of Mitsubishi UFJ Trust and Banking.

"I believe the longer-term trend is a weak dollar but some adjustment moves (on the dollar's recent plunge) are going on," Tsukada said.

The possibility of intervention comes amid growing fears of a currency war in which nations weaken their units to bolster their exporters and in turn give a much-needed boost to their economies.

The International Monetary Fund was holding a meeting with central bank officials from around the world to discuss the issue and try to plot a course for sustainable global recovery.

The meeting, hosted by the People's Bank of China in Shanghai, comes ahead of this week's Group of 20 meeting in South Korea, where currency reform is expected to dominate talks.

On oil markets New York's main contract, light sweet crude for November delivery eased 51 cents to $80.74 a barrel and Brent North Sea crude for December was 60 cents lower at $81.85 a barrel.

Gold closed at $1,356.00-$1,357.00 an ounce in Hong Kong, down from Friday's close of $1,378.50-$1,379.50.

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South Korea unveils huge clean energy investment plan

Photo: Reuters

SEOUL - South Korea Wednesday unveiled a five-year plan to spend US$36 billion developing renewable energy as its next economic growth engine.

The plan, approved at a meeting chaired by President Lee Myung-Bak, aims to transform South Korea into one of the world's five top players in renewable energy.

South Korea will spend about 40 trillion won -- seven trillion won in state money and 33 trillion won from private businesses -- on new renewable energy projects by 2015, the Ministry of Knowledge Economy said.

It hopes to export renewable energy worth 36.2 billion dollars in 2015.

The ministry predicts the global market for renewable energy will grow rapidly from 162 billion dollars last year to an estimated 400 billion dollars in 2015.

Asia's fourth largest economy, which imports almost all its oil, has tried to cut dependence on fossil fuels and diversify energy sources.

In addition to the 40 trillion won, the ministry said the government will spend nine trillion won to build an offshore wind farm in the Yellow Sea by 2019, generating 2.5 gigawatts per hour of electricity.

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S.Korea unveils huge clean energy investment plan

Photo: Reuters

SEOUL - South Korea Wednesday unveiled a five-year plan to spend US$36 billion developing renewable energy as its next economic growth engine.

The plan, approved at a meeting chaired by President Lee Myung-Bak, aims to transform South Korea into one of the world's five top players in renewable energy.

South Korea will spend about 40 trillion won -- seven trillion won in state money and 33 trillion won from private businesses -- on new renewable energy projects by 2015, the Ministry of Knowledge Economy said.

It hopes to export renewable energy worth 36.2 billion dollars in 2015.

The ministry predicts the global market for renewable energy will grow rapidly from 162 billion dollars last year to an estimated 400 billion dollars in 2015.

Asia's fourth largest economy, which imports almost all its oil, has tried to cut dependence on fossil fuels and diversify energy sources.

In addition to the 40 trillion won, the ministry said the government will spend nine trillion won to build an offshore wind farm in the Yellow Sea by 2019, generating 2.5 gigawatts per hour of electricity.

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Japan questions South Korea G20 leadership over FX

TOKYO - Japan called into question on Wednesday South Korea's leadership of the Group of 20 forum because of Seoul's interventions to stem the won's rise and insisted its own currency action was qualitatively different.

The remarks by Japan's finance minister underscored deep divisions over currency policies, an issue that will dominate G20 meetings in South Korea this month and next after a weekend International Monetary Fund meeting failed to make headway.

"As chair of the G20, South Korea's role will be seriously questioned," Yoshihiko Noda told a parliamentary panel when asked about South Korea's currency interventions.

Record low interest rates in rich countries have pushed global investors into emerging markets in search of higher yields, driving up their currencies.

In response, several governments have stepped into foreign exchange markets or tried to curb capital inflows, raising fears of a currency "race to the bottom" that may trigger protectionism and hobble global growth.

Japan itself intervened in the currency market last month for the first time in more than six years to try to stem a rise in the yen that threatens its fragile economic recovery.

Noda drew a distinction between that action and more frequent intervention by South Korea and China.

"In South Korea, intervention happens regularly, and in China, the pace of yuan reform has been slow," Noda said.

"Our message is that we have confirmed at the Group of Seven that emerging market countries with current account surpluses should allow their currencies to be more flexible."

South Korea did not immediately comment on the remarks.

No consensus

Pressure on China to allow its currency to rise faster is likely to intensify but hopes for a G20 consensus look slim.

German Economy Minister Rainer Bruederle was quoted as saying Beijing should make concessions to avoid foreign exchange tensions turning into a trade war.

"China bears a lot of the responsibility for avoiding an escalation," Bruederle told Handelsblatt newspaper.

China's insistence that the yuan's rise must be gradual is a huge obstacle to the appreciation in Asian exchange rates policymakers say is needed to reduce global imbalances.

It, and other countries, counter that the prospect of the Federal Reserve printing money again will flood the world economy with more liquidity, weaken the dollar and push emerging currencies yet higher.

"It'll be impossible for the G20 to reach a consensus on currencies. Many emerging economies feel that they are being forced to intervene because of a weak dollar," said Etsuko Yamashita, chief economist at Sumitomo Mitsui Banking Corp.

"China will not succumb to outside pressure."

Minutes of the Fed's last policy meeting showed its policymakers thought easier policy may be needed "before long" to bolster a struggling recovery.

China's chief G20 currency negotiator Cui Tiankai said Beijing was trying to avoid a currency stand-off but that no specific currency should be on the G20 agenda.

"We are doing our best to avoid that," Cui, a foreign vice-minister, said on the sidelines of a conference in Seoul. "But it requires efforts of all the G20 members, not China alone."

U.S. Treasury Secretary Timothy Geithner said he saw no risk of a global currency war but on the need for a stronger yuan, he added: "We just want to make sure it's happening at a gradual but still significant rate."

The major world currency not being talked down is the euro, which rose again on Wednesday, as the European Central Bank ponders a reversal of ultra-loose policy while the Fed is poised to ease further and Japan has already cut rates to zero.

"In the G4 space, the ECB is the only central bank that is talking of an exit policy and that is helping the euro," said Ankita Dudani, G-10 currency strategist at RBS.

Analysts said Tokyo's criticism of Seoul stemmed from its worries about competitiveness. The yen is up about 13 percent against the dollar this year, the won only about 4 percent.

"Japan feels it has been under pressure not to intervene because of G7 (Group of Seven) rules but people outside (of G7) seem to be playing by different rules," said Robert Feldman, chief economist at Morgan Stanley MUFG Securities in Tokyo.

Japanese Prime Minister Naoto Kan urged Seoul and Beijing to act responsibly but acknowledged Tokyo's delicate position.

"I want South Korea and China to take responsible actions within common rules, though how to say this is difficult because Japan has also intervened," he told lawmakers.

Japan sold 2.1 trillion yen ($26 billion) last month to curb the yen's strength versus the dollar. South Korea has intervened to the tune of about $13 billion since late September but analysts said it has acted more aggressively in relative terms.

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Heritage site aims to lure investment from South Korea

Thua Thien-Hue province, where the Hue Imperial City is located, has been given a promise from South Korea Ambassador to encourage investors to come.

The Korean diplomat, Park Suk Hwan, told the provincial People’s Committee Chairman, Nguyen Van Cao, during their meeting in the central region province on Wednesday, that he would promote the province’s strengths and potential among Korea business circles, to encourage them to invest.

Thua Thien-Hue is home to Hue Imperial City which has been recognized as a world cultural heritage site by the UN Educational, Social and Cultural Organization (UNESCO).

Cao reported that the province has granted 11 licenses for investment to businesses from the country, capitalized at some $560 million.

Most of their projects are in the hospitality industry, services, and construction and investment in technical infrastructure for industrial zones.

In addition to Foreign Direct Investment, the province has received the Korea’s aid in Official Development Assistance (ODA) for the construction of a 500-bed hospital, capitalized at $20 million.

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Danang to welcome more chartered flights

HCMC – The central city of Danang in the next four months will welcome several chartered flights bringing in travelers from Asian destinations namely Hong Kong, Taiwan and South Korea, a local tour operator said.

Cao Tri Dung, director of Vitours in Danang as a key local partner catering to such flights told the Daily that the first chartered flight from Hong Kong to Danang would start on November 11. During three months, visitors from this market will come in on every Wednesday and Saturday.

Similarly, frequent chartered flights will also come from Taiwan and South Korea. Dung said tourists from Taipei would fly to Danang every five days from December 26 for a period of three months, while travelers from Korea’s Seoul would come from January 1.

“In the high season, the city will receive around 1,000 passengers per week from the end of December to January. Our company will cater to half of the total,” Dung said.

Along with the inbound tours, the company is preparing for outbound tours to take local tourists to travel to Hong Kong, Taiwan and South Korea on these flights.

“We expect the outbound tour prices will be lower than normal because partners are focusing on inbound travelers and have booked all of planes’ inbound seats,” Dung said, hinting that outbound seats would be vacant.

Danang is receiving Chinese tourists two times per week on chartered flights.

The tour operator said more visitors are coming to the city because Danang is a new destination offering affordable prices to tourists. However, Danang is able to attract visitors from short-haul destinations in Asia only, he said.

“The city needs to get more connected via more international air routes to woo travelers especially people from long-haul markets like Europe. The chartered flight is the good start for the development,” Dung noted.

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Dragon fruit gains access to Chile, Korea markets

Chile and South Korea have officially opened up their markets to Vietnamese dragon fruit.

President of the Binh Thuan Dragon Fruit Association Bui Dang Hung on Thursday said only radiated or heat-treated dragon fruit was acceptable for export to the two markets.

Also, dragon fruit farms had to be checked and granted licenses by the two countries’ plant protection departments under the ministries of agriculture if they wanted to export their products, he said.

Currently, businesses in the southern province of Binh Thuan are engaging in the process of receiving licenses from Chile and the South Korea, Hung added.

Early this month, out-of-season dragon fruits in Binh Thuan Province have been shipped to China at a high price of VND8,000 per kilogram.

A seminar is scheduled to take place in the northern province of Lang Son to help Chinese and Vietnamese businesses deal with difficulties when exporting dragon fruits to China in small volumes.

Binh Thuan has 12,300 hectares of dragon fruit trees, of which 2,100 hectares have been grown under VietGAP standards. The province’s main export market is Asian nations, especially China, with 70 percent of market share, followed by the US and European countries.

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Samsung to launch smartphone, tablet PC in Japan

Samsung's latest tablet device the Galaxy Tab is on display at the 50th edition of the IFA in September in Berlin.

Photo: AFP

SEOUL - South Korea's Samsung Electronics said Tuesday it would release a smartphone and tablet PC in Japan before December, its latest move in an ongoing battle with US giant Apple.

The planned launch of the Galaxy S smartphone and its first tablet PC, the Galaxy Tab, in Japan comes amid growing rivalry with Apple at home and abroad.

Samsung launched its Galaxy S domestically in June, seven months after Apple's iPhone hit South Korea. Samsung has since launched its smartphone in China and other countries.

The company said NTT DoCoMo, Japan's largest mobile operator, would release the Galaxy S at the end of this month and the Galaxy Tab in late November.

More than 70 percent of Japan's mobile market is dominated by local brands, but Apple's iPhone has become the most popular smartphone since its debut in 2008.

Samsung said in a statement the Galaxy S has been "a phenomenal success" in the global smart market, recording worldwide sales of more than five million.

Global computer and handset makers have scurried to respond to the roaring success of Apple's iPhone and iPad.

Tablet PCs feature bigger screens than smartphones and have no keyboards, instead employing touchscreens or stylus pens as input devices.

The global table PC market is expected to expand to 30 million units next year, from 13 million this year, according to industry data.

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Samsung to launch smartphone, tablet PC in Japan

Samsung's latest tablet device the Galaxy Tab is on display at the 50th edition of the IFA in September in Berlin.

Photo: AFP

SEOUL - South Korea's Samsung Electronics said Tuesday it would release a smartphone and tablet PC in Japan before December, its latest move in an ongoing battle with US giant Apple.

The planned launch of the Galaxy S smartphone and its first tablet PC, the Galaxy Tab, in Japan comes amid growing rivalry with Apple at home and abroad.

Samsung launched its Galaxy S domestically in June, seven months after Apple's iPhone hit South Korea. Samsung has since launched its smartphone in China and other countries.

The company said NTT DoCoMo, Japan's largest mobile operator, would release the Galaxy S at the end of this month and the Galaxy Tab in late November.

More than 70 percent of Japan's mobile market is dominated by local brands, but Apple's iPhone has become the most popular smartphone since its debut in 2008.

Samsung said in a statement the Galaxy S has been "a phenomenal success" in the global smart market, recording worldwide sales of more than five million.

Global computer and handset makers have scurried to respond to the roaring success of Apple's iPhone and iPad.

Tablet PCs feature bigger screens than smartphones and have no keyboards, instead employing touchscreens or stylus pens as input devices.

The global table PC market is expected to expand to 30 million units next year, from 13 million this year, according to industry data.

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S Korea hosts dialogue on Viet Nam tax, customs rules

SEOUL — A dialogue with 118 local businesses on Viet Nam's new tax and customs policies was held in Seoul on Friday .

The event was part of a working visit to South Korea by a Finance Ministry delegation led by Deputy Minister Do Hoang Anh Tuan.

The delegation answered questions on the country's tax incentives, corporate taxes, value added tax and new regulations on customs procedures. Tuan said more than 70 per cent of Korean businesses investing in Viet Nam were up to medium size so they faced difficulties in accessing policies and dealing with issues on procedures and tax incentives.

He said Viet Nam's Finance Ministry and General Department of Taxation had planned to co-ordinate with South Korean authorised agencies in facilitating Korean businesses' operations in Viet Nam.

Tuan said the dialogue was the first between the two sides since their tariff co-operation agreement was signed since March 1995.

Before the dialogue, the Vietnamese delegation worked with the South Korean departments of taxation and customs to exchange experiences in building automatic information systems.

South Korea is a world leader in the application of e-technology in tax and customs procedures. — VNS

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Vietnam gains most from S.Korea free trade pact: officials

Vietnam has benefited more than other Southeast Asian countries who have signed free trade agreements with South Korea, say Korean trade officials.

Dug Gyou Bok, deputy director of Korea Trade-Investment Promotion Agency (Kotra)’s Asia and Oceania Team, said Vietnam has used the agreement to boost exports and lure more foreign direct investment from Korea.

Bok said Vietnam’s exports increased 32.5 percent in the first seven months of 2010 while average export growth in ASEAN members was about 24 percent during the same period. The country’s exports to South Korea grew 16.3 percent in 2009, he added.

The agreement between Korea and ASEAN members took effect for goods in 2007 and services and investment last year. ASEAN, as the Association of Southeast Asian Nations is often known, comprises ten countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

Korea eliminated 70 percent tariffs in 2007 and completed its committed tariff reductions early this year for the ten members, while Vietnam aims to complete its commitments by reducing tariffs from the current 7 to 20 percent to between 5 and zero percent by 2018. This reduction will be effected on half of tariff lines by 2015.

Bok said the multilateral agreement has brought opportunities for Vietnam to export more telephone set parts and wood chips, products that have also brought in investments from Korea.

Kotra said Vietnam’s export to Korea in the sectors grew respectively by 98.6 and 600 percent from January to July this year while that of traditional goods like seafood, shoes and agricultural products increased stably.

Korean electronic giant Samsung has exported US$1 billion worth of products so far from its $670 million mobile phone factory that it opened last September in the northern province of Bac Ninh.

However, the two-way trade was in favor of Korea, according to Kotra. South Korean exports to Vietnam increased 35.2 percent to $5.12 billion in the first seven months of this year, more than three times higher than its imports from the country during the same period.

Yon-Jip Jung, deputy general director for Free Trade Agreement Policy under the South Korean Ministry of Foreign Affairs and Trade, said Vietnam was one of the Korea’s best partners in the Southeast Asian bloc, and it wanted to further boost bilateral trade and investment ties.

Jung said the ministry planned to promote the agreement to boost trade and investment in both countries and would explore respective advantages as the countries completed negotiations on a bilateral free trade agreement.

Both sides will focus on goods that bring more benefits in bilateral than multilateral pact of which many members have different interests and goals.

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Vietnam gains most from S.Korea free trade pact: officials

Vietnam has benefited more than other Southeast Asian countries who have signed free trade agreements with South Korea, say Korean trade officials.

Dug Gyou Bok, deputy director of Korea Trade-Investment Promotion Agency (Kotra)’s Asia and Oceania Team, said Vietnam has used the agreement to boost exports and lure more foreign direct investment from Korea.

Bok said Vietnam’s exports increased 32.5 percent in the first seven months of 2010 while average export growth in ASEAN members was about 24 percent during the same period. The country’s exports to South Korea grew 16.3 percent in 2009, he added.

The agreement between Korea and ASEAN members took effect for goods in 2007 and services and investment last year. ASEAN, as the Association of Southeast Asian Nations is often known, comprises ten countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

Korea eliminated 70 percent tariffs in 2007 and completed its committed tariff reductions early this year for the ten members, while Vietnam aims to complete its commitments by reducing tariffs from the current 7 to 20 percent to between 5 and zero percent by 2018. This reduction will be effected on half of tariff lines by 2015.

Bok said the multilateral agreement has brought opportunities for Vietnam to export more telephone set parts and wood chips, products that have also brought in investments from Korea.

Kotra said Vietnam’s export to Korea in the sectors grew respectively by 98.6 and 600 percent from January to July this year while that of traditional goods like seafood, shoes and agricultural products increased stably.

Korean electronic giant Samsung has exported US$1 billion worth of products so far from its $670 million mobile phone factory that it opened last September in the northern province of Bac Ninh.

However, the two-way trade was in favor of Korea, according to Kotra. South Korean exports to Vietnam increased 35.2 percent to $5.12 billion in the first seven months of this year, more than three times higher than its imports from the country during the same period.

Yon-Jip Jung, deputy general director for Free Trade Agreement Policy under the South Korean Ministry of Foreign Affairs and Trade, said Vietnam was one of the Korea’s best partners in the Southeast Asian bloc, and it wanted to further boost bilateral trade and investment ties.

Jung said the ministry planned to promote the agreement to boost trade and investment in both countries and would explore respective advantages as the countries completed negotiations on a bilateral free trade agreement.

Both sides will focus on goods that bring more benefits in bilateral than multilateral pact of which many members have different interests and goals.

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Sustainable tourism development discussed

Photo: Tuoi Tre

Delegates from Indonesia, Malaysia, South Korea, the Philippines, Mongolia and Vietnam discussed sustainable tourism development at a workshop in Ha Long City of the northern coastal Quang Ninh Province on Tuesday.

At the workshop held within the framework East Asia Inter-Regional Tourism Forum (EATOF), Asso. Prof. Tran Thi Minh Hoa from the University of Social Sciences and Humanities Tourism Faculty spoke of advantages for the development of sea, sports, cultural and ecological tourism models in Quang Ninh province.

Quang Ninh is one of the country’s four tourism centers and the home of world-famous Ha Long Bay, twice recognized by the UNESCO for its landscapes and geological values, said Hoa.

The delegates suggested Quang Ninh could zone off deluxe tourism areas, invest in clean energy, develop tourism products and engage in human resources training.

Meanwhile, Dr Milagros C. Espina from the San Jose University of the Philippines introduced a waste management and natural resources program called Winning over Waste (WOW).

The success of WOW will encourage similar activities in EATOF and reduce the threat of climate change, he said, emphasizing the necessity for the exchange of information among cultures on WOW and other initiatives.

EATOF must have a comprehensive policy on environmental protection from climate change and develop a program for its members to assist one another, he said.

The workshop also heard speeches on rural tourism development in Indonesia’s Yogyakarta province, tourism education in Mongolia, tourism under the ocean and a new change in adventurous tourism development in Sarawak in Malaysia.

An EATOF travel fair opened in Ha Long city on teh same day as one of the forum’s first activities.

The two-day fair saw the participation of travel agencies from eight provinces, namely Cebu (the Philippines), Gangwon (South Korea), Luang Prabang (Laos), Sarawak (Malaysia), Siem Reap (Cambodia), Tottori (Japan), Tuv (Mongolia) and Yogyakarta (Indonesia).

Vietnamese travel agencies from Hanoi, Quang Ninh and the northern port city of Hai Phong also introduced their tourism products at the event.

The second sea tourism and flight route committee was reestablished at a conference held by the EATOF organizing board on the same day.

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South Korean businesses focus on Vietnam

Photo: Reuters

Businesses from the South Korea see Vietnam as a promising market for their investments and intend to maintain their position as Vietnam’s number one foreign investor.

The Director of the ASEAN- Korea Center (AKC) for Planning and Development, Jae Hyun Cho stated this at a workshop on trade and investment between Vietnam-South Korea in Hanoi Wednesday.

Jae Hyun Cho is leading a delegation of 23 RoK leading enterprises that operate in agricultural machinery, forestry, seafood and foodstuffs, on a fact-finding tour of Vietnam from September 7-10 to seek out business and investment opportunities.

Investment and trade ties have developed steadily between Vietnam-RoK since Vietnam introduced the Law on Foreign Investment in 1988. The RoK has invested in nearly 2,600 projects, with a total registered capital of over US$23 billion in Vietnam.

The Deputy Trade and Industry Minister Le Duong Quang, said that businesses from the RoK, who are often amongst the top three foreign investors in Vietnam, have made their presence felt in property and infrastructure, ship building, electricity and electronics.

Despite the negative impacts of last year’s global economic crisis, bilateral trade between Vietnam and the RoK reached $9 billion in 2009 and is expected to climb to $20 billion in 2015.

At the workshop, the Director of the Foreign Investment Agency under the Planning and Investment Ministry, Do Nhat Hoang, pledged to continue supporting RoK investors to do business in Vietnam, to boost trade and investment between the two countries.

Hoang also called on RoK businesses to continue investing in Vietnam, especially in agriculture, agricultural machinery and forestry, in order to retain its position as one of Vietnam ’s leading investors.

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Free trade deals receive mixed reviews

by Phuoc Buu

Clothes are produced at Binh Dinh Garment Company in Binh Dinh Province. Experts say regional Free Trade Agreements have had mixed results on economic growth. — VNA/VNS Photo Tran Viet

HCM CITY — Free trade agreements (FTAs) in general have led to higher economic growth, but regional FTAs have had mixed results, experts have said.

"Import and export growth has been at a maximum of around 7 per cent under partial compliance with all FTAs signed by Viet Nam," said David Vanzetti of Australian National University.

"Most of the export-import growth came from the ASEAN Free Trade Agreement (AFTA) and the FTAs signed with South Korea," he said. "Growth is expected to rise as much as 16 per cent when Viet Nam fully complies with all FTAs."

Speaking at a conference held in HCM City yesterday, Vanzetti said that production activity of most sectors was also expected to increase, largely because of labour and investment requirements of FTAs.

However, the growth of several sectors is expected to decline because of various factors, including anti-dumping laws, and technical barriers and duty-free barriers to trade.

Several sectors have registered high growth while others have encountered challenges from imported goods, according to Vanzetti.

Viet Nam has signed numerous trade agreements, including AFTA, ASEAN – Australia-New Zealand, ASEAN-India, ASEAN-South Korea, ASEAN-China and ASEAN-Japan, and is prepared to sign FTAs with the EU, Turkey and Chile.

In a research study on the impact of FTAs on Viet Nam's economy, Vanzetti and his Australian National University colleague, Ray Trewin, interviewed businesspeople and local experts.

Pittsburgh University's James Cassing of the US, former Vietnamese Trade Minister Truong Dinh Tuyen, and representatives from the Central Institute for Economic Management Research and the Ministry of Industry and Trade also worked with Vanzetti and Trewin on the research study.

Vanzetti said many sectors, including footwear, leather, seafood, textiles, fruit, rubber and coffee, were optimistic about the effect of FTAs, while other sectors, like the automobile, paper and paper mill industries, were pessimistic.

The research was conducted for MUTRAP, a multilateral trade assistance project carried out by the European Commission and the Vietnamese Ministry of Industry and Trade.

MUTRAP, which is now in its third phase, helped Viet Nam prepare for membership in the World Trade Organisation (WTO), and continues to assist the country in following WTO trade regulations.

The peripheral impact of all FTAs on the country's economy by 2015 is expected to be US$945 million a year and edge up to $2.4 billion a year after all trade commitments become final during the 2015-21 period, according to Vanzetti.

The biggest trade benefits would come from FTAs with South Korea, Japan and AFTA, while FTAs with China would have a more long-term effectiveness, he said.

Viet Nam is not expected to benefit much from FTAs with India, Australia and New Zealand because of the current low trade level with those countries.

Vanzelli and his colleagues said that, in the future, Vietnamese trade negotiators should more carefully analyse the possible negative and positive impact of any FTA before signing the final agreement.

He said an impact assessment prior to negotiations should analyse the effect of the FTA on the worst-affected sectors as well as the impact on exports, imports, national income (GNP), taxes, jobs and salaries.

Truong Dinh Tuyen, former minister of trade, noted that the trade roadmaps of all the many FTAs had led to a mishmash of regulations and different regulatory time frames.

Because of this, Viet Nam may not be able to take full advantage of its trade agreements.

"An impact assessment is necessary to develop strategic solutions during FTA negotiations," he said, adding that future agreements must thoroughly analyse the benefits and risks associated with the FTA.

MUTRAP III held a conference in Ha Noi on Monday and HCM City yesterday to discuss the findings of the research with the EU delegation to Viet Nam, the Ministry of Industry and Trade and the MUTRAP team and researchers. — VNS

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Korean firms eye Da Nang

DA NANG — A seminar themed "Promoting trade investment from South Korea in Da Nang" was held yesterday by the Da Nang People's Committee and the Korea Chamber of Commerce and Industry (KCCI).

The event which was attended by 15 South Korean enterprises was aimed at enhancing co-operation and promoting investment and trade between South Korea and the central city of Da Nang.

Da Nang's Investment Promotion Centre presented the city's potential, sectors of the city that were calling for investment and the preferential policies and favourable investment environment of Da Nang to the companies.

Phung Tan Viet, deputy chairman of the Da Nang People's Committee confirmed the city would continue to create good conditions for enterprises to invest in the city and guide the relevant agencies to rapidly solve any difficulties in the investment process.

Representatives of the enterprises said the city's authorities actively supported enterprises in the granting of investment licences, land clearance, building, logistics and import and export. — VNS

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South Korea firms eye Danang

Photo: Tuoi Tre

A seminar themed "Promoting trade investment from South Korea in Danang was held on Monday by the city People's Committee and the Korea Chamber of Commerce and Industry (KCCI).

The event which was attended by 15 South Korea enterprises was aimed at enhancing co-operation and promoting investment and trade between South Korea and the central city of Danang.

Danang's Investment Promotion Centre presented the city's potential, sectors of the city that are calling for investment and the preferential policies and favorable investment environment of Danang to the companies.

Phung Tan Viet, deputy chairman of the Danang People's Committee confirmed the city will continue to create good conditions for enterprises to invest in the city and guide the relevant agencies to rapidly solve any difficulties in the investment process.

Representatives of the enterprises said the city's authorities actively support enterprises in the granting of investment licenses, land clearance, building, logistics and import and export.

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South Korea firms eye Danang

Photo: Tuoi Tre

A seminar themed "Promoting trade investment from South Korea in Danang was held on Monday by the city People's Committee and the Korea Chamber of Commerce and Industry (KCCI).

The event which was attended by 15 South Korea enterprises was aimed at enhancing co-operation and promoting investment and trade between South Korea and the central city of Danang.

Danang's Investment Promotion Centre presented the city's potential, sectors of the city that are calling for investment and the preferential policies and favorable investment environment of Danang to the companies.

Phung Tan Viet, deputy chairman of the Danang People's Committee confirmed the city will continue to create good conditions for enterprises to invest in the city and guide the relevant agencies to rapidly solve any difficulties in the investment process.

Representatives of the enterprises said the city's authorities actively support enterprises in the granting of investment licenses, land clearance, building, logistics and import and export.

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FTAs have positive impact on ASEAN trade: official

Minister of Industry and Trade Vu Huy Hoang confirmed the positive impact the Free Trade Agreements (FTAs) have had on trade within the group at the 42nd ASEAN Economic Ministers’ Meeting Monday.

Hoang also said in an interview with the Vietnam News Agency (VNA) that ASEAN has signed FTAs with six of its major partners, including China, South Korea, Japan, India and Australia and New Zealand.

The minister said the FTAs with these partners have helped boost ASEAN’s exports, especially to China, South Korea and Japan, which benefits Vietnam immensely.

As a result, 27.8 percent of Vietnam’s export revenues to Japan receive preferential tariff rates under the ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP). The rates under the free trade agreements between ASEAN and its partners are 21 percent to China and 79 percent to South Korea.

The head of trade called on the 10-member bloc to work out a long-term and consistent strategy to harmonize regulations of the different FTA’s.

“ASEAN needs to tap its central position in the region better and take full advantage of the preferential tariffs offered by the FTAs,” said Hoang.

He rejected the argument that some Vietnamese exports face difficulties due to the similarity in exports between Vietnam, ASEAN and China. Hoang emphasized that it’s the economic structure which will decide the level of cooperation.

“Up to 80 percent of Vietnam’s imports from China and between 65 and 75 percent of its imports from ASEAN are from a third country as well as the raw materials and equipment for production,” he explained.

“That’s why stepping up cooperation with China and ASEAN has facilitated Vietnam’s capacity to produce more and export more,” he emphasized.

The minister described China as Vietnam’s leading trade and investment partner, with the potential for enormous amounts of bilateral trade still lying ahead.

The 2008 bilateral trade revenue of 20.2 billion USD has made China Vietnam’s second biggest trading partner, after ASEAN.

The ASEAN-China Free Trade Agreement (ACFTA) has given Vietnamese industries more chance of accessing materials and equipment for production and export activities, said the minister.

The ACFTA, which asks China to cut 90 percent of all import tariffs on Vietnamese products from 2010, would create ideal conditions for Vietnamese imports to take a foothold in the world’s third largest economy, especially products that Vietnam is strong in such as agricultural produce, seafood and minerals.

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