VietNam Business: Viet

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Monday, February 21, 2011

Inflation undercuts growth gains

HA NOI — Viet Nam is quickly recovering from the financial crisis and can easily attain its targeted growth rate for this year, although inflation remains a huge challenge, said the World Bank in its East Asia and Pacific Economic Update yesterday.

Titled ‘Robust Recovery, Rising Risks', the half-yearly update gives assessments and outlooks on economies in the Asia-Pacific region.

"The target for real GDP growth in 2010 is an easily attainable 6.5 per cent," said the report on Viet Nam.

"The recovery has consolidated in recent months."

The country escaped from the global financial crisis "better than could have been anticipated" thanks to a sizeable stimulus package during the last two years.

However, World Bank economists also noted that it's time for the country to phase out its stimulus programme, given the much improved global economic environment.

On the other hand, it will be difficult to keep the inflation rate below 7 per cent in line with targets set by the National Assembly, notes the report.

"On a monthly basis, inflation started accelerating in the last quarter of 2009," reads the update.

The World Bank attributes the inflation risk to "higher commodity prices, devaluation of the dong, and adjustments in energy prices".

As for the budget deficit, the report predicts a substantial contraction compared with last year, given an overall deficit of slightly more than 6 per cent of GDP as translated from the national 2010 budget plan.

"Viet Nam's debt is likely to remain sustainable if the current economic recovery continues and authorities revert to a budget deficit in the order of 3 to 4 per cent."

The World Bank's economists also urged local regulators to increase interest rates to counter foreign currency and gold speculation.

"Gold speculation by local investors had led to worrying price spikes, affecting market sentiment," says the report.

The rising inflationary pressures and the return of large capital flows presents an emerging policy challenge and a risk to macro-economic stability, said the report in a warning to regional governments.

"The exchange rate in Viet Nam is not over-valued," said Deepak Mishra, a leading economist of the World Bank in Viet Nam, dispelling concerns over the dong's devaluation.

On the other hand, country director of World Bank Viet Nam Victoria Kwakwa recommended the country build more confidence in its macro-economic management . — VNS

Monday, February 14, 2011

Call to boost faith in dong

US dollar transaction at Quoc Trinh Gold Shop in Ha Noi. About 20 per cent of all currencies in circulation in Viet Nam are foreign. — VNS Photo Truong Vi

HA NOI — Viet Nam should expend more effort in raising people's confidence in the dong, while co-operating with neighbouring countries on resolving overuse of foreign currencies, the Asian Development Bank said in its latest study.

Regional co-operation on monetary and financial issues to exploit economies of scale, introduce good practices and facilitate the adoption of common regulatory standards will help the country tackle economic and developmental challenges posed in the transitional period, the book Dealing with Multiple Currencies in Transitional Economies: The Scope for Co-operation in Cambodia, the Lao People's Democratic Republic, and Viet Nam, stated.

"Dealing with dollarisation and multiple currencies is ultimately an issue of national economic policy, and in this regard, Viet Nam has made good progress in de-dollarisation," Ayumi Konishi, ADB Viet Nam country director said at the book's launch in Ha Noi last Friday.

"Yet, authorities, especially the State Bank of Viet Nam, are fully aware that administrative measures alone will not be effective."

In order to de-dollarise the Vietnamese economy, it is essential to enhance people's confidence in the Vietnamese dong through sustainable and high economic growth, stabilisation of the foreign exchange rate, reforms in monetary policies, and by strengthening the capacity of financial institutions, the ADB representative said.

The study shows other countries' currencies, particularly the US dollar, are in wide use in the three Indochinese countries – Laos, Cambodia and Viet Nam.

In Viet Nam, about 20 per cent of all currencies in circulation are foreign; in Laos the figure is 50 per cent; while in Cambodia it is 90 per cent.

The study highlighted the costs and benefits of dollarisation. On the plus side, dollarisation can impose discipline on governments since they cannot easily finance budget shortfalls by printing money. In addition, if dollarisation leads to a near fixed exchange rate, prices can be less volatile.

However, the use of multiple currencies reduces the control of economic authorities over monetary and exchange rate policies. It also restricts the power of central banks to act as "the lender of last resort" in the event of a banking crisis, the study said.

"Dollarisation blunts the tools for macroeconomic stabilisation, especially monetary and exchange rate policy, that a country like Viet Nam needs in order to tackle a variety of economic and developmental challenges, such as rising inflation," the book's co-editor Jayant Menon, principal economist at ADB's Office of Regional Economic Integration, said.

Meanwhile, sharing information and experiences would help the monetary authorities of Viet Nam, Lao and Cambodia find a solution to the dollarisation issue, said co-editor Giovanni Capannelli, principal economist at the ADB. — VNS

Intel to launch $1b chip plant

Vietnamese use Samsung computers with Intel programmes. Intel plans to open an assembly and testing facility in Viet Nam by the end of this year. — VNA/VNS Photo MInh Tu

HA NOI — Intel Corporation, the world's leading chip maker, will open a US$1 billion assembly and testing facility in Viet Nam at the end of this month, Intel Asia-Pacific general manager Navin Shenoy told The Wall Street Journal last week.

Intel Corp began construction of the facility in 2007, and the plant is expected to provide jobs for 4,000 people when operational.

Intel's investment in Viet Nam was aimed at tapping growth opportunities in emerging Asian markets, said Shenoy, noting that Viet Nam's young population and low PC penetration rate made it a particularly attractive market.

Intel already operates assembly and test sites in Malaysia, the Philippines and China.

"We expect Asia's PC market to continue to grow by more than 20 per cent annually in the next few years," he said, noting that, while market sentiment was weak in US and European consumer markets, Asian consumers and enterprises continued to buy PCs.

Intel reported more than $11 billion in quarterly revenue in the third quarter, with $6.4 billion, or 58 per cent, coming from the Asia-Pacific region, compared to $5.3 billion a year earlier. — VNS

Saturday, February 12, 2011

Viet Kieu begin to invest in VN property market

HA NOI — A large number of Viet Kieu (overseas Vietnamese) have started to invest in the Vietnamese real estate market.

Investments had become more diversified and stronger than ever, said Megagroup's Director Nguyen Xuan Chau.

Chau added that the trend had started around 10 years ago and really picked up over the past two years.

In 2010, he said, a series of resorts and ecological tourism projects were announced with a growing number of North American management and consultancy firms co-ordinating the projects.

To capitalise on this, Minh Viet Investment Joint Stock Company recently bought into the franchise of a famous foreign company in order to use its trademark to invest in Viet Nam's real estate market.

According to the com-pany's director Chi Edward, his company will use the trademark to do business in training and brokerage as well as managing and developing the real estate market in Viet Nam.

The company had previously invested in projects in Ha Noi, HCM City and the northern province of Quang Ninh.

As further proof, at the end of 2009, the director of Binh Thien An Joint Stock Company, Viet kieu Trinh Thanh Huy, decided to return from Russia and announced that his company was looking to pour hundreds of millions of dollars into the real estate market in HCM City.

Binh Thien An is currently involved with the Thao Dien Metropolice project in District 2 of HCM City.

In the second and third quarters of this year, many other tourism developments were announced by overseas Vietnamese investors from eastern Europe.

The Vietnamese real estate market was still young. It had a huge potential to attract investment from overseas Vietnamese, Chau said.

Referring to a recent survey, experts said the new trend would create competitiveness in the market which would help develop it further.

The survey was carried out at an international real estate exhibition with the participation of 46 countries.

The results showed that investment interest in the Vietnamese real estate market had grown by 20-30 per cent since 2008.

Another survey conducted by a British company also found that in the next two years, Viet Nam would become one of the top three markets of interest in the world. — VNS

GE opens wind-turbine plant

Aerial view of GE manufacturing facility in Nomura Industrial Zone in Hai Phong. — VNS Photo

HAI PHONG — In response to growing global demand for clean energy, General Electric officially inaugurated its first manufacturing facility in the northern port city of Hai Phong yesterday.

The factory, which has a total investment of more than US$61 million, will manufacture wind turbine components. Parts will be shipped to GE wind turbine manufacturing factories worldwide.

The plant occupies a 8.4ha in Nomura-Hai Phong Industrial Zone and has a designed capacity of 1,500 products per year. It expected to generate 400 jobs.

Initially, the facility will produce generators for 1.5MW wind turbines.

John Krenicki, GE vice chairman and CEO of GE Energy, said: "Viet Nam is an ideal place for GE to invest and expand our manufacturing capability because it has a skilled work force and a bright future in its energy sector."

"With demand for electricity, fuel, and water continuing to rise around the world we believe that building in Viet Nam is a great investment," he added.

Over the past few years, GE has invested in a number of activities in Viet Nam, ranging from clean energy and health care to aviation.

Tran Tuan Anh, deputy minister of Industry and Trade, said he hoped GE would expand its production base in Hai Phong to include other wind turbine components.

"Wind power is a completely new sector in Viet Nam. Demand is increasing and fossil energy resources are exhausted. Thus, recycled energy development will play an important role in ensuring national energy security," he said.

GE and the Ministry of Industry and Trade signed a strategic partnership agreement on Thursday in Ha Noi.

GE will continue investing in the hi-tech clean energy sector in the country, focusing on the manufacture of gas turbines and development of support industries, the deputy minister said.

GE launched in Viet Nam in 1993, one of the very first American companies to do so after the US lifted its trade embargo.

The company later set up a representative office in HCM City in 2001. In 2003, GE established the 100 per cent foreign-invested GE Viet Nam Co Ltd in Viet Nam.

GE is a global infrastructure, finance and media company, operating in the energy, water, transportation, health, oil and gas, finance and information sectors. It reaped a revenue of $40 billion last year. — VNS

Thursday, February 10, 2011

Commercial pilots to be trained in Vietnam

The Vietnam Airlines Corp. and the Bay Viet (Viet Flight) Flight
Training Joint Stock Company have made a deal to train 60 pilots in
Vietnam during the 2010-2012 period.

Under the contract, signed in Ho Chi Minh City on October 14, every
72-week training course will be held in Vietnam and France, each
with 20 trainees. The training courses will be completed by the end of
2012.

Vietnam Airlines estimates it will need at
least 636 pilots by 2010, 60 percent of them Vietnamese. To raise the
rate of Vietnamese pilots to 75 percent by 2015, the carrier plans to
recruit at least 100 extra pilots a year to raise the number of pilots
by 10 percent during 2011-2020.

The Chairman of
Vietnam Airlines Corp Nguyen Sy Hung said that the contract with Bay
Viet, the first pilot training centre in Vietnam to have an Air
Transport Pilots Licence (ATPL), will help the airline to take the
initiative and train its own pilots, cutting costs and raising
efficiency.

The deal also proves the airline’s
commitment to its domestic partners to implement its strategy on
personnel development to ensure sustainable growth and fulfill its plans
to develop the country’s aviation industry.

Bay
Viet’s General Director Nguyen Nam Lien, said the company will start
four other pilots courses for other airlines in Vietnam and around
the region in 2010 and 2011.

In the first phase,
Bay Viet will work with Vietnam ’s Aviation Academy and provide
flight training at Cam Ranh Airport in Nha Trang.

These are the first important steps in the setting up of a pilots
training centre to ensure the aviation industry’s development in the
future./.

Tuesday, February 8, 2011

City hosts ports, logistics confab

HCM CITY — The Viet Nam Container Ports and Logistics 2010 conference offers delegates the opportunity to exchange information on port and logistics management and operations amid the global economic recovery.

Speaking at the two-day conference which opened in HCM City yesterday, Vuong Dinh Lam, chairman of the Viet Nam Maritime Administration, set out the ambitious agenda: Foreign and local firms discuss a comprehensive plan to develop shipping and ports in Viet Nam.

In the last two years, despite the economic crisis, port and logistics operations in the country were encouraging due to the Government's effective economic management and the efforts of the maritime sector, he said.

From handling 197 million tonnes of freight in 2008, the sector's output increased to 251 million tonnes last year, he said.

From 1,199 vessels weighing 4.38 million DWT in 2007, the county's fleet increased to 1,598 ships and 6.3 million DWT last year, he said.

The target for the maritime industry by 2020 is to be the largest component of Viet Nam's sea-based economy which is expected to contribute 53 per cent to 55 per cent of GDP, he said.

The Government continues to promote maritime administrative reform and is drafting legal documents and strategies that comply with the country's laws and international conventions, he said.

Vietnamese companies provided an insight into infrastructure and port development around the country to support cargo transport.

Executives from major industry players like Antwerp Port Authority, Maersk Line Asia Pacific, and the International Association of Ports and Harbors, NYK Line Viet Nam, Maersk Viet Nam, Cai Mep International Port, Sai Gon New Port, Global Maritime and Port Services, APL-NOL Viet Nam, and YCH Group gave presentations and held panel discussions.

They were joined by officials from the Ministry of Transport and the Viet Nam Maritime Administration.

There was a pre-conference workshop on Practical Strategies to Optimise Port Operations, Planning and Logistics highlighting strategies for sustainable port development and addressing the demands of efficient container and general purpose terminals. — VNS

Tuesday, February 1, 2011

Chambers of commerce join hands for cutting red tape

Businesses register for tariff codes. The Viet Nam Chamber of Commerce and Industry and European Chamber of Commerce have agreed to join forces to promote administrative reforms to improve the business climate. — VNA/VNS Photo Hong Ky

HA NOI — The Viet Nam Chamber of Commerce and Industry (VCCI) and the European Chamber of Commerce in Viet Nam (Eurocham) agreed to foster co-operation in administrative procedures reform and boost business competitiveness, following an agreement inked between the two sides on Monday.

The co-operation between the two chambers was expected to improve the Vietnamese business environment in a move to better facilitate both domestic and foreign enterprises.

Under the two-year partnership agreement, Eurocham would supply VCCI with technical and financial assistance in administrative procedure reform.

The agreement would create more opportunities for experts and businesses to suggest how administrative procedures should be effectively improved, said VCCI vice chairman Pham Gia Tuc.

Through the Advisory Council of the Government's Administrative Procedures Reform Project or Project 30, Eurocham has made suggestions in a number of sectors in Viet Nam including tax, customs, pharmaceutical and retail. Project 30 is a plan to substantially reduce the costs and risks of administrative procedures via the simplification or abolition of unnecessary procedures.

Under Project 30, ministries and Government agencies reviewed 5,500 procedures, and proposed to eliminate 453, replace 288 and amend 3,749 to make things easier for citizens and businesses.

They estimated most ministries and agencies had met requests to cut the costs of administrative procedures by 30 per cent, equal to VND30 trillion (US$1.58 billion) per year. — VNS

Friday, January 28, 2011

Viet Nam, Russia, Kazakhstan and Belarus plan free trade agreement

HA NOI — The first meeting of a working group to prepare a free-trade agreement between Viet Nam and Russia, Belarus and Kazakhstan was held here yesterday.

The agreement is expected to bring benefits to an area covering 20 million square kilometres, with a population of 253 million people and a GDP of US$1,505 billion.

The head of the Vietnamese delegation, Dang Hoang Hai, Deputy Director General of the European Department of the Ministry of Industry and Trade, said the group would focus on the terms of references.

"These must cover the impacts of the agreement, including difficulties and challenges during negotiations as well as specific tasks for each member of the working group," said Hai.

"It will take time for members to conduct research and collect data before coming up with their impact assessment," continued Hai.

He expressed confidence that the agreement would bring benefits to Viet Nam and the Russian Federation, particularly in the fields of customs duties, investment services, business and trade.

It is forecast two-way trade will reach $10 billion in the years following the signing of the agreement.

Viet Nam's main exports to the Russian Federation are agricultural products. In turn, it imports fertilisers, oil, gas, energy, heavy industry products and a utomobiles.

The Alliance of Customs from Russia, Belarus and Kazarkhstan is led by Ms E E Mairova, Deputy Director of the Department for Trade Negotiation at the Russian Economics Ministry. — VNS

Tuesday, January 25, 2011

Coal imports to start in 2015

Australia and Indonesia, Viet Nam can also obtain coal from Russia by buying stakes in mines there or purchasing rights to mine or buy coal. — VNA/VNS Photo Duy Khuong

HCM CITY — Viet Nam is now likely to import coal only from 2015, not 2013 as earlier forecast since many thermal power plants have fallen behind schedule.

The steering committee managing coal imports said, however, that firms should start looking for foreign coal suppliers immediately to ensure there is no delay.

"Besides Australia and Indonesia, Viet Nam can also source coal from Russia by buying stakes in mines there or purchasing the right to mine or buy coal," Nguyen Manh Quan, a member of the committee and the head of the Heavy Industry Department, said.

But he was unsure if power-plant investors would begin looking for coal sources any time soon.

Tran Chien Thang, deputy general director of the Viet Nam National Coal and Mineral Industries Group (Vinacomin), said the Government had tasked his firm with importing coal for power plants but no investor had discussed the issue yet.

"Enterprises, especially State-owned ones, prefer local sources because costs are partly subsidised by the Government," Quan said.

A private firm recently signed an agreement with a foreign supplier to buy coal for 20 years and was willing to import more to supply other companies, Ta Van Huong, director of the Energy Department, said.

An Vien Group and VinCom Group informed the Ministry of Industry Trade that they could help local firms source coal from Russia, Minister of Industry and Trade Le Duong Quang said.

However, more companies can enter the coal import business as long as they follow Government rules, according to the ministry .

The steering committee will draft a legal framework to regulate coal imports.

It is not clear yet but Viet Nam may have to import between 3 million and 15 million tonnes of coal a year by 2015 – and 21 million to 40 million by 2020 – as more and more coal-fired power plants are built, Vinacomin has said. — VNS

Third private carrier flies Viet Nam's skies

KIEN GIANG — Air Mekong, Viet Nam's third private airline, received its Air Operator's Certificate from the Civil Aviation Administration of Viet Nam (CAAV) in southern Kien Giang Province on Friday.

On the same day, the carrier also launched its first two routes, Ha Noi – Phu Quoc and HCM City – Phu Quoc.

"The Vietnamese aviation market is dramatically developing. The aviation demand, especially for domestic flights, will increase considerably in the next few years," said CAAV deputy director Dinh Viet Thang.

"The introduction of Air Mekong is essential to meeting market demand, diversifying aviation services and increasing competitiveness," Th¨¨ang said.

"The CAAV's certificate will open up a new page for our development", said Air Mekong chairman Doan Quoc Viet.

Air Mekong would start commercial operations since Saturday with eight flights from Ha Noi and HCM City to Phu Quoc, Con Dao, Buon Me Thuot, Pleiku, Viet said, adding that they would expand operations to 10 flights from November including destinations of Da Lat in the Central Highlands and Da Nang City.

The airline has launched a promotional offer until November 9 with 1,000 tickets at prices ranging from VND400,000 to VND1.2 million (US$20.50-$61.50) for flights on all its domestic routes. Tickets are on sale at travel agents and via Air Mekong's website and customer care centres.

Air Mekong was establish in 2009 by Ha Long Investment and Development Company and is based at Phu Quoc Airport. The existing two private carriers operating in Viet Nam are Indochina Airlines and VietJet AirAsia.

The CAAV said there were also a number of other organisations and individuals planning to launch airlines. To qualify, private operators must have a charter capital of at least VND500 billion ($26.3 million) to fly internationally and VND200 billion ($10.5 million) to launch domestic flights. They must also meet strict aviation and security standards. — VNS

Monday, January 24, 2011

Nations co-operate to foster tourism

Tuan Chau Resort in the northern coastal province of Quang Ninh. The three Indochinese countries have made efforts to boost co-operation on promoting tourism in the region. — VNA/VNS Photo Thanh Ha

HCM CITY — As part of the HCM City International Travel Expo 2010, a seminar was held recently, themed "Three Countries-One Destination".

This year marks the strong recovery of Viet Nam's tourism, with a 30 per cent growth of international tourist arrivals year-on-year, according to La Quoc Khanh, deputy director of the HCM City Department of Culture, Sports and Tourism.

Tourism in Laos and Cambodia has also seen encouraging growth, Khanh added.

"This achievement comes from efforts of each country, and from successful co-operation, co-promotion and formation of tourist products among the three countries," he said.

"There is a trend of overland tours through Viet Nam, Laos and Cambodia," Cao Tri Dung, director of Vietnamtourism – Vitours, said. "Tourists want to experience new ways of travel."

However, this kind of travelling has met difficulties because of the high charge for the vehicle border pass, few services on the way, and no cooperation between local authorities.

"There is no rest stop from Viet Nam to Laos," Dung said.

He proposed that authorities lower border check fees, and invest in rest-stop shops along the routes as well as infrastructure.

At the seminar, Edouard George, chairman of Phoenix Voyages Company, presented information about vessels that would be used for cruises on the Mekong River from Viet Nam to Cambodia.

They include the three-deck L'Amant offering 12 wide cabins; three-deck Tonle Pandaw accommodating 66 guests; three wood cabin The Bassac; three-deck RV Indochine; three-deck Mekong Eyes; three-deck Mekong Feeling; and 46-room French colonial-style vessel RV La Marguerite.

In order to support tourism, Viet Nam Airlines has introduced an air network and new policy for flights from Viet Nam to Cambodia and Laos, as well as a new route to Myanmar.

The national carrier is expected to fly to 44 international destinations and 23 domestic destinations in 2020, said Hoang Viet Thang, deputy general manager of the passenger sales and marketing department of the Southern Regional Office of Vietnam Airlines.

The airline currently has flights to 26 international and 20 domestic destinations.

According to Thang, Europe is an important market for tourism in Indochina. The airline expects to open new routes and improve direct flights from HCM City and Ha Noi to the region.

"Indochina is the target tourism destination for Northeast Asia tourism, so new routes will be opened by 2015," Thang said.

The carrier intends to open direct flights to the US next year and wants to open new routes to the Southwest Pacific as well as increase the frequency of flights within Southeast Asia to attract tourists to new destinations in Indochina.

The carrier will also develop direct flights from Viet Nam's central Da Nang City to Indochinese countries, to increase tourism from the midlands of Viet Nam to the region, Thang added.

In addition, it will create a dense network throughout the country of 44 routes and 2,100 flights a week by 2015, making connecting times convenient for flights from Indochina.

The carrier also will improve cooperation with Cambodia Angkor Air, Lao Aviation, Myanmar carriers, Tourism Authorities in Viet Nam, Laos, Cambodia and Myanmar to promote destinations in Indochina.

Ministers' conference

"We encourage national travel agencies to hold information exchanges, share experience in tourism master plans, promotions and product development," said Tran Chien Thang, deputy minister of Culture, Sports and Tourism.

Thang spoke at the conference of four Tourism Ministers on the opening day of HCM City's International Travel Expo from September 30 to October 2.

Among the attendees were Thong Khon, tourism minister of the Kingdom of Cambodia; Somphong Mongkhonvilay, chairman of Lao National Tourism Administration; and Aye Myint Kyu, deputy minister of Myanmar Hotels and Tourism.

The four countries should support each other in holding forums on tourism investment, Thang said, adding that the countries should create favourable conditions for others to join in international tourism events to increase the number of the tourists among the four countries.

At the meeting, countries unanimously approved the plan to strengthen cooperation in educating human resources for tourism by standardising jobs and teaching programmes, and by offering scholarships and information exchange, Thang said.

In addition, the four ministers agreed to create improved conditions for transportation among the countries, and called for more foreign investment in tourism.

Also, they decided to hold the Conference of Four Tourism Ministers every two years. — VNS

Malaysian firms eye investments in VN

HA NOI — Viet Nam is a new strategic market for Malaysian businesses to invest in franchises, the Malaysian Franchise Association (MFA) has announced.

At a seminar held in Kuala Lumpur on Wednesday, MFA Managing Director Sofia Leong Abdullah praised Viet Nam's potential, a country with a population of 87.9 million and ranked third in economic growth across the world.

Viet Nam's purchasing power had also rapidly increased, partly thanks to US$20 billion in foreign remittance, he said, noting that the country's franchise market was strongly developing with average turnover increasing by 50 per cent each year.

This trend was expected to last till 2012.

The two Malaysian brands that already operate in Viet Nam were Setia and Berjaya, he added.

During talks with reporters after the seminar, Abdullah said the MFA would work with Perbadanan Nasional, a leading agency employed by the government to develop the country's franchise industry, and the Malaysia External Trade Development Corporation (Matrade) to promote Viet Nam's potential market to Malaysian businesses.

The MFA intended to bring seven or eight local franchises to Viet Nam by the end of this year, he said, adding that the number would increase in 2011.

According to Abdullah, demand for franchises in Viet Nam can be seen in the retail sector, beverages, restaurant services, fashion and education. — VNS

Thursday, January 20, 2011

Infrastructure projects seek investors

Construction work on Ngoc Thap Bridge which is being built with State fund in the northern province of Phu Tho. The Government is looking for investment under Public-Private Partnership into infrastructure projects. — VNA/VNS Photo Anh Ton

HA NOI — Viet Nam is calling for infrastructure investment under the Public-Private-Partnership (PPP) model as funds from the State budget, Government bonds and ODA (Official Development Assistance) capital are insufficient to meet demand.

Dang Huy Dong, deputy minister of Planning and Investment, said Viet Nam hoped to cooperate with Italian businesses to attract capital and exchange work experiences in infrastructure improvement.

Dong spoke at a conference on Viet Nam's infrastructure development held on Monday in Ha Noi by the Ministry of Planning and Investment, in collaboration with the Italian Trade Commission and the Transport Ministry.

The Italian ambassador to Viet Nam, Andrea Peregini, said his country had used the PPP model for several projects that were expected to be profitable in the future.

"Italian businesses are interested in highway projects in Viet Nam because similar projects under the PPP model in Italy had been successful," he added.

Marco Saladini, Italian trade commissioner in Viet Nam, said more than 5,000 kilometres of highway in Italy were built mainly under the PPP model by large European companies.

Apart from highway projects, Italy has used the PPP model for underground parks as well as electricity and transport-management projects.

Saladini said the Vietnamese Government had implemented an online auction for projects that was more transparent than in the past, creating a more favourable climate for investors.

He added that Italian businesses were committed to creating jobs for local workers at their projects in Viet Nam.

In the 2006-10 period, investment capital for infrastructure development was about VND140 billion (US$28 billion) per year.

However, the need for transport, energy and environmental projects has not yet been met.

Dong said infrastructure improvement was the top priority for Viet Nam because of increased development.

Viet Nam needs to have 3,000-5,000km of highway, 300-400km of metro, and dozens of seaports in the next 10 years.

To meet the demand, Viet Nam needs to attract billions of US dollars to develop infrastructure in the next five to 10 years.

To meet the demand, Viet Nam needs to attract billions of dollars to develop infrastructure in the next five to 10 years.

Viet Nam has used the PPP model to attract more private and foreign-direct invested capital for its projects, including the Ninh Binh-Thanh Hoa Highway and Dau Giay-Phan Thiet Highway. The two highways are expected to be completed by 2014.

Other projects using the PPP model include Highway No.1 Upgrade Project, Ha Noi-Lao Cai Railway, and Phnom Penh-HCM City Highway, according to the Ministry of Transport.

In the near future, Viet Nam will call for more PPP and FDI capital for transport projects, such as Da Nang-Quang Ngai, My Thuan-Can Tho, Noi Bai-Ha Long, Dau Giay-Da Lat, Ben Luc-Long Thanh, the international port in Hai Phong and HCM City-Can Tho Highway. — VNS

Wednesday, January 12, 2011

UK port operators seek opportunities

HA NOI — Situated at the crossroads of maritime trade lanes with a coastline stretching 3,260 kilometres, Viet Nam has undeniably favourable conditions for developing its maritime industry.

British Ambassador Mark Kent emphasised this opportunity during the UK – Viet Nam Partnership in Ports seminar held yesterday in Ha Noi. The event was part of a three-day trip made by representatives from 10 UK's leading companies in port operation and development.

"British companies such as those involved in this mission are keen to forge partnerships that will help to identify and implement solutions aimed at improving the operating capacity of Vietnamese ports in the process of national industrialisation and modernisation," the ambassador said. Marine transport has played an important role in the country's economic growth and in its efforts to become an industrialised country by 2010, said Deputy Minister of Transport Do Hong Truong.

The Government has crafted policies to encourage domestic and foreign individuals and organisations to invest in Viet Nam's seaport infrastructure, he said.

During the event, the UK seaport operators shared experiences in port operation as well as exchanged knowledge and potential co-operation opportunities with around 60 Vietnamese and foreign companies operating in the port field.

Prime Minister Nguyen Tan Dung has approved the Viet Nam Seaport Development Master Plan, which calls for a total investment of between VND360 trillion (US$18.5 billion) and VND440 trillion ($22.5 billion) by 2020. Under the plan, the estimated volume of goods transported annually via the seaport system will be 500-600 million tonnes by 2015, 900-1,000 million tonnes by 2020 and 2,100 million tonnes by 2030.

To achieve that number, the plan will focus on developing several international-standard deep-water ports that can receive large ships, especially the international Van Phong transit port in central Khanh Hoa Province designed to receive container ships ranging between 9,000 and 15,000 TEU (twenty-foot equivalent unit). — VNS

Tuesday, January 4, 2011

US reduces dumping duties on shrimp

Farmers harvesting shrimp in southern Bac Lieu province's Vinh Trang Dong Commune_VNA/VNS photo Huynh Su

HA NOI — The US Department of Commerce has decided to cut anti-dumping tariffs it had imposed on 31 Vietnamese shrimp exporters by 0.01-0.69 percentage points.

The move followed feedback to the department's fourth administrative review conducted between February 2008 and January 2009 of shrimp imported into the US by Nha Trang Seafood Joint Stock Co, Minh Phu Seafood Co, and Minh Hai Seafood Co.

Under the revised tariffs, the duty on shrimps imported by Nha Trang will be reduced from a maximum on 5.58 per cent to 4.89 per cent. Minh Phu will see a reduction of 0.01 per cent to 2.95 per cent, while the others will be subject to a duty of 3.92 per cent, reduced from the previous 4.27 per cent.

Viet Nam urges US lower trade barriers

GENEVA — The US needs to minimise trade barriers and participate more actively in the multilateral trade system, said Ambassador Vu Dung, head of Viet Nam's delegation to the World Trade Organisation (WTO) and other international agencies in Geneva, at a session at WTO headquarters last week to review US trade policies.

Dung, leading a delegation of officials from the Vietnamese ministries of Foreign Affairs and Industry and Trade, voiced concerns over US trade barriers that have resulted in anti-dumping duties against frozen shrimp, tra (pangasius) fish, and plastic bags imported from Viet Nam.

Viet Nam expected the US to re-examine its imposition of anti-subsidy and anti-dumping tariffs before making decisions affecting other WTO members, Dung said.

The US became Viet Nam's leading export market in recent years, importing US$11.5 billion worth of goods in 2009 – a fifth of Viet Nam's total exports. — VNS

The Viet Nam Association of Seafood Exporters and Producers (VASEP) continued to complain, however, that Vietnamese companies were subject to higher duties than Indian exporters, which paid duties no higher than 4.44 per cent.

Last April, Viet Nam asked the World Trade Organisation (WTO) Dispute Settlement Body to set up a panel to review US anti-dumping measures imposed on frozen warm-water shrimp from Viet Nam. WTO general director Pascal Lamy recently appointed three members to the panel.

After six months, the panel was expected to make a final report, clearing the way for further legal action between the parties. If it proceeds, this would constitute Viet Nam's first trade lawsuit against a WTO member . — VNS

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

Sunday, January 2, 2011

Trade promo push in Mexico, Canada

Ha Noi — The Ministry of Industry and Trade will speed up trade promotion activities in Mexico and Canada in the fourh quarter.

The ministry has issued instruction No8/CT-BCT about pushing exports and enlarging markets to meet the country's annual export target of US$60 billion.

Sectors involved are mainly garments and textiles, footwear, seafood, wood products, arts and handicrafts and processed food.

Promotion activities were scheduled to take place mainly in Toronto and Mexico City.

The North American Free Trade Area, with a population of 520 million, is considered as a key export market of Viet Nam. Canada and Mexico are big markets for Vietnamese goods behind the US, which accounts for 82.5 per cent of Viet Nam's export turnover to the area.

Vietnamese Ambassador to Mexico Pham Van Que said two-way trade between Mexico and Viet Nam surged from $60 million in 2001 to nearly $720 million last year, $600 million of which were exports to Mexico.

The main exports were garments, footwear, seafood, printing-machines, sports equipment and wooden products.

Que expected that following the first session of the Mexico-Viet Nam Joint Business Committee in Mexico recently, trade between the two countries would increase significantly.

He said the session was the start of a partnership for sustainable development between the two countries.

Last year's trade turnover between Viet Nam and Canada reached $1.3 billion, $1 billion of which were Viet Nam's exports to Canada.

The ministry predicted that the country's export volume to Mexico and Canada would rise dramatically in the next three months, especially of vegetables and fruits.

Viet Nam shipped fruit worth $2.8 million to Mexico and Canada in July this year alone, up 21.7 per cent on the same period last year. — VNS

Tuesday, December 28, 2010

Expo promotes regional tourism

HCM CITY — A three-day annual International Travel Expo aimed at boosting 3CODE (Three Countries One Destination) tourism programme covering Viet Nam, Laos and Cambodia opened in HCM City yesterday.

Held at the Saigon Exhibition and Convention Centre in District 7, the event attracted 155 "buyers" from 35 countries and 173 sellers (enterprises and departments offering products and services).

Besides buyers from traditional markets, organisers aimed to explore new markets in North Europe, Spain, Italy and the US.

"This year's expo welcomes Myanmar, preparing to form the new 4CODE," said La Quoc Khanh, deputy director of the HCM City Department of Culture, Sports and Tourism.

"We hope to see all the six countries of the Greater Mekong Subregion in the coming expo, to join hands and make the region more interesting in the eyes of international tourists," Khanh said.

Viet Nam's national flag carrier as well as the official carrier of the event, Vietnam Airlines, offered up to 85 per cent discounts on selected international routes.

The carrier also introduced its "Welcome Christmas in Europe" tour packages at attractive prices.

Thailand organised a conference introducing its Amazing Thailand campaign. The Tourism Authority of Thailand (TAT) targets 14 million arrivals by the end of this year, and 15.5 million international tourist arrivals next year.

TAT and the Viet Nam National Administration of Tourism will hold a working section on Sunday. — VNS

Thailand-VN ties grow significantly

THAILAND — Co-operation between Viet Nam and Thailand had significantly developed in the past years, particularly in trade and investment, said Nguyen Thanh Bien, deputy minister of Industry and Trade.

Bien was speaking at a conference on business and investment opportunities in Viet Nam held in Khon Kaen Province, Thailand, on Wednesday.

The stable political situation was a decisive factor in the growth of investment, as was the attractiveness of the country, Bien added.

He said Viet Nam was in the process of perfecting its legal system in accordance with international standards, while streamlining administrative procedures by as much as 30 per cent and improving the country's infrastructure to make it more attractive to foreign investors.

From 2007-09, bilateral trade grew annually by 10.6 per cent. Last year, despite the global economic downturn, two-way trade topped US$6.1 billion and is expected to hit $10 billion over the next few years.

In the first half of this year, Viet Nam's exports to Thailand rose 4 per cent, while its imports increased by 43 per cent.

As of August, Thai businesses had invested $34 million in 12 projects in Viet Nam, making it the 18th biggest investor in the country. — VNS

Monday, February 21, 2011

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