Government hails nation’s 1st oil refinery

Photo: Reuters

Though the country’s first oil refinery was completed nine years behind schedule, its cost was eventually lower than estimated and it remains a breakthrough for the oil industry, a government report to the National Assembly said.

The Dung Quat Refinery only cost VND40 trillion (US$2.05 billion at current value) when it was built this year, VND10 trillion less than estimated, said the report.

But according to a report released by the House Committee of Science, Technology and Environment, the refinery’s cost was estimated at $1.5 billion in 1997, raised more than once, and finally ended at $3.05 billion (VND51.7 trillion) in 2009.

The government attributed the difference of around $1 billion between the two reports to the fact that the committee report included revenue expenses like salaries and taxes.

Regarding the criticism that the plant’s capacity is too low at 6.5 million tons a year compared to 10-12 million tons for other refineries worldwide, the government said the project was executed at a time when there were no strategy or planning for oil refineries making it difficult to make a decision on the capacity.

The report admitted that PetroVietnam, which built the refinery, did not have a long-term vision for refining and therefore had to amend the design two times to add two more workshops. Meanwhile, official agencies had been slow in issuing legal documents on quality.

The government said PetroVietnam is considering importing crude oil of better quality to replace the oil from its offshore Bach Ho field, and expanding the refinery to increase its capacity to 8-10 million tons.

Many legislators questioned the competitiveness of the plant’s products and the economic benefits to the country.

Vietnam’s first refinery - an overview

It took 13 years for the Dung Quat Refinery to be built. Work began in 1997 and the plant was initially expected to go on stream in 2001, but it took until January 2010 for it to be actually completed.

Around 75 percent of the work was carried out by Vietnamese sub-contractors.

Related Articles

• Blue seas and unspoiled beaches
• IFC: Vietnam needs to increase PPP to support economy
• Good response to reforms of People's Councils
• PM receives RoK gender equality minister
• Rising dollar price raises concerns over supply sources

Economic competitive index now in public eye

Cement, steel, chemical fertilisers, feeds and milk were listed as having relatively healthy competitive behaviours.

The assessment was reported by the Competition Management Department
under the Ministry of Industry and Trade in Hanoi on October 14 for
the first time.

However, some products of the
above-mentioned five industries, including imported powder milk and
construction steel, were criticised for unhealthy competitiveness due to
their misleading advertisements.

The report,
which covered 10 economic sectors, slammed five other industries, namely
aviation, banking, insurance, petroleum distribution and
telecommunication, for unhealthy competitive behaviour, citing abuse of
advertisements and discounts to gain market share.

Deputy Director of the Competition Management Department Vu Ba Phu
emphasised that the report aimed to establish and maintain a fair and
healthy competitive environment for all economic sectors in Vietnam .

The report was expected to increase awareness of competition policies and law among enterprise circles, Phu said.

Dr Dinh Thi My Loan, General Secretary of the Vietnam Retailers
Association, said the ranking was based on the impact of price changes,
consumer responses and concerns about the surveyed industries or
products.

Loan, however, said the report wording remained “soft and yet fully reflecting customer worries”.

Her view was shared by another expert, Vo Tri Thanh, Deputy Rector of
the Central Economic Research and Management Institute, who said the
report should be subjected to objective evaluation by experts.

The report, prepared under the sponsorship of the Beyond WTO
programme, will be released in HCM City on October 20, following its
Hanoi release.

The Competition Management
Department unveiled a plan to conduct research and supervise the
competitive structure of several other economic sectors for inclusion in
the annual report./.

Related Articles

• PM lauds police for keeping public order
• Party Central Committee discuss development plan
• Party central committee wraps up 13th meeting
• Party reports come in from provinces
• UN offers global approach to social-protection system

Seminar seeks ways to better ODA

Vietnam needs to improve legal frameworks and institutions in its efforts to better the use of official development assistance (ODA), said an expert.

Head of an independent evaluation delegation Marcus Cox put forth the suggestion at a seminar which was held in Hanoi Friday to get feedback about a draft report on the performance of the Paris Declaration and Hanoi Core Statement on Aid Effectiveness.

Cox recommended Vietnam build the capacity of sector-level managers and utilise more objective assessment tools.

The draft report pointed out the fact that Vietnam ’s national development programme and its rapid growth have not relied on ODA aid capital, but the nation is still facing a lot of challenges in terms of institutions, making plans and decentralisation of power in ODA management.

A number of delegates said the report should give out specific figures and more detailed analyses of new aid methods, refundable and non-refundable aid.

Meanwhile, a representative from the National Assembly Office emphasised the necessity to enhance technical management rather than administrative measures, saying it is one of the most effective way to manage ODA.

The workshop was co-hosted by the Ministry of Planning and Investment and the Aid Effectiveness Forum (AEF).

Vietnam is one of 24 countries worldwide participating in the 2 nd phase of evaluation on the implementation of the Paris Declaration on Aid Effectiveness.

 

Related Articles

• Nations co-operate to foster tourism
• Giant embroidered picture on display
• Victims of food poisoning leave hospital
• Blue seas and unspoiled beaches
• IFC: Vietnam needs to increase PPP to support economy

Seminar seeks ways to better ODA management

Vietnam needs to improve legal frameworks and institutions in its
efforts to better the use of official development assistance (ODA), said
an expert.

Head of an independent evaluation
delegation Marcus Cox put forth the suggestion at a seminar which was
held in Hanoi on Oct. 8 to get feedback about a draft report on the
performance of the Paris Declaration and Hanoi Core Statement on Aid
Effectiveness.

Cox recommended Vietnam build the capacity of sector-level managers and utilise more objective assessment tools.

The draft report pointed out the fact that Vietnam ’s national
development programme and its rapid growth have not relied on ODA aid
capital, but the nation is still facing a lot of challenges in terms of
institutions, making plans and decentralisation of power in ODA
management.

A number of delegates said the report
should give out specific figures and more detailed analyses of new aid
methods, refundable and non-refundable aid.

Meanwhile, a representative from the National Assembly Office emphasised
the necessity to enhance technical management rather than
administrative measures, saying it is one of the most effective way to
manage ODA.

The workshop was co-hosted by the Ministry of Planning and Investment and the Aid Effectiveness Forum (AEF).

Vietnam is one of 24 countries worldwide participating in the 2
nd phase of evaluation on the implementation of the Paris Declaration
on Aid Effectiveness./.

Related Articles

• Seminar seeks ways to better ODA
• Vaccination campaign seeks to eliminate measles by 2012
• Victims of food poisoning leave hospital
• Nations co-operate to foster tourism
• IFC: Vietnam needs to increase PPP to support economy

Vietnam ranked prime global destination for third year running

Vietnam has once again been selected as the number one investment destination, outside of Brazil, Russia, India and China (BRIC), according to a report published by the UK Trade & Investment and Economist Intelligence Unit.

This is the third consecutive year that Vietnam has enjoyed the designation from the British agency.

The ‘Great Expectations: Doing business in emerging markets’ report offers new insights from international investors about which markets they see as being the global growth engines of the future.

The report is based on a survey of more than 520 global executives from every sector. All respondents are already doing business in emerging markets or plan to do so in the next two years.

The UK Business Secretary Vince Cable said: “The balance of global economic power is shifting toward emerging markets and this is recognized in UK Trade & Investment’s report. UK firms are using their expertise to help promote growth and prosperity in these markets.”

The report’s authors found that the top three markets for investment, in the next two years, are China, Vietnam, and India.

Emerging markets are viewed as sources of new consumer demand. Seventy-six percent of investors see emerging markets as a source of new business growth.

By 2030, 93 percent of the world’s middle class will live in what we now consider “emerging markets,” the report said.

Companies are now shifting their priorities toward a range of other developing countries outside their well-established operations in the BRIC countries.

For many firms, emerging markets are increasingly familiar places. Nearly half of the respondents reported having operations in one or more emerging markets over the course of the last decade and two thirds said they had been working in the areas for six or more years.

Institutional knowledge of these countries is far higher than it was at the turn of the century, the report found.

More executives than ever believe that the potential rewards far outstrip the risks within both the BRIC countries and other emerging markets. Fifty-two percent expect growth prospects in their once-risky emerging market businesses to be "significantly better" over the next two years.

Local companies in emerging markets are sought after for partnerships and alliances. Despite a greater ease with the risks of new places, the need to tap into local knowledge and contacts quickly remains strong, the report found.

Emerging markets are not just for big business. One in three small- and medium-sized enterprises polled by the authors planned to expand into a new emerging market in the next two years through joint ventures or partnerships with local companies.

Related Articles

• Vietnam ranked prime global destination for third year running
• Naval forces boost global co-operation
• FDI disbursement tops $8b first nine months
• Assoc insists on power price hike despite protests
• Timber-product exporters sign $3b deals

Vietnam ranked prime global destination for third year running

Vietnam has once again been selected as the number one investment destination, outside of Brazil, Russia, India and China (BRIC), according to a report published by the UK Trade & Investment and Economist Intelligence Unit.

This is the third consecutive year that Vietnam has enjoyed the designation from the British agency.

The ‘Great Expectations: Doing business in emerging markets’ report offers new insights from international investors about which markets they see as being the global growth engines of the future.

The report is based on a survey of more than 520 global executives from every sector. All respondents are already doing business in emerging markets or plan to do so in the next two years.

The UK Business Secretary Vince Cable said: “The balance of global economic power is shifting toward emerging markets and this is recognized in UK Trade & Investment’s report. UK firms are using their expertise to help promote growth and prosperity in these markets.”

The report’s authors found that the top three markets for investment, in the next two years, are China, Vietnam, and India.

Emerging markets are viewed as sources of new consumer demand. Seventy-six percent of investors see emerging markets as a source of new business growth.

By 2030, 93 percent of the world’s middle class will live in what we now consider “emerging markets,” the report said.

Companies are now shifting their priorities toward a range of other developing countries outside their well-established operations in the BRIC countries.

For many firms, emerging markets are increasingly familiar places. Nearly half of the respondents reported having operations in one or more emerging markets over the course of the last decade and two thirds said they had been working in the areas for six or more years.

Institutional knowledge of these countries is far higher than it was at the turn of the century, the report found.

More executives than ever believe that the potential rewards far outstrip the risks within both the BRIC countries and other emerging markets. Fifty-two percent expect growth prospects in their once-risky emerging market businesses to be "significantly better" over the next two years.

Local companies in emerging markets are sought after for partnerships and alliances. Despite a greater ease with the risks of new places, the need to tap into local knowledge and contacts quickly remains strong, the report found.

Emerging markets are not just for big business. One in three small- and medium-sized enterprises polled by the authors planned to expand into a new emerging market in the next two years through joint ventures or partnerships with local companies.

Related Articles

• Vietnam ranked prime global destination for third year running
• Naval forces boost global co-operation
• FDI disbursement tops $8b first nine months
• Assoc insists on power price hike despite protests
• Timber-product exporters sign $3b deals

Counterfeit enforcement ineffectual, report says

Enforcement bodies hamstrung by fuzzy laws and thin resources

A market watchdog official seizes fake HP ink cartridges in Ho Chi Minh City. A recent report says Vietnamese officials are incapable of staunching the rapid growth of the counterfeit trade.

Customs officials and anti-counterfeit units are understaffed and lack regulatory backbone, according to a report issued by the Central Counterfeit Production and Distribution Fighting Board last week.

The board was joined by the ministries of Industry and Trade, Finance, and Science and Technology, all of whom claimed that despite their efforts, Vietnamese officials are incapable of staunching the rapid growth of the counterfeit trade.

The report’s authors described Vietnam’s regulatory force as small and strained – about 5,000 market monitoring officials have been scattered across 63 provinces and cities to fight an untold force of fake goods producers.

They also claimed that legislators have, so far, failed to establish specific penalties for intellectual property violations. Instead, a vague net of rules has been cast wide over a range of unrelated industries.

The Ministry of Industry and Trade has announced that it is preparing a proposal that will establish specific penalties for fake goods and is in the process of submitting the recommendations for approval. The proposal will carry a maximum financial penalty of VND50 million (US$2,566) per violation.

In the meantime, the authors said, Vietnamese enforcement agents face a growing opponent.

More people in local and neighboring markets are joining the trade that traffics fake goods in and out of Vietnam through the country’s porous, rugged border.

Tran Viet Hung, head of the National Office of Intellectual Property of Vietnam, said 60 percent of fake and counterfeit products were imported into the country through these weak spots.

Hung said his team was responsible for keeping an eye on a large range of products like cosmetics, medicines, clothes, bags and documents for tax purposes.

He said the majority of the products originated in China, which the European Union recently dubbed the world’s “factory” for fast and easy knockoffs.

Hung claimed that the bootleggers are plaguing domestic and international manufacturers alike.

The report said that 100,000 cases of fake goods or intellectual property violations had been discovered in the last ten years. The report excluded an estimated 200 cases handled by investigators working for the nation’s customs officials.

Nguyen Phi Hung, deputy head of the Smuggling Investigations Department under the General Department of Vietnam Customs, said the figure did not begin to describe the reality of the situation.

The customs official further claimed that his department is only empowered to investigate or refuse clearance for shipments of products that businesses suspect of violating intellectual properties.

In this way, he alleged, the customs enforcers were somewhat hamstrung by regulations.

According to Hung, customs officials are not allowed to undertake any long-term seizures or initiate investigations unless they receive requests to do so from businesses or individuals.

He says the rule creates a “loophole” for imported fake goods and that the law has turned Vietnam into a “transit” hub for fake goods destined for other markets.

Related Articles

• Counterfeit enforcement ineffectual, report says
• Party reports come in from provinces
• Assoc insists on power price hike despite protests
• Rivers threatened by sand exploiters
• Preparations for congress reviewed

Vietnam more competitive in global market: report

Vietnam has risen 16 places to the 59th spot in global economic competitiveness rankings, the World Economic Forum said in an annual report.

The country has improved in ten of the 12 “pillars” used to measure the competitiveness index, according to the Global Competitiveness Report released Thursday.

“Among the country’s competitive strengths are its efficient labor market (30th) and its impressive innovation potential given its stage of development (49th), including its relatively large market size (35th) with a particularly large export market,” the report said.

However, the report pointed out that trade in Vietnam is still hindered by high import tariffs and customs procedures. Besides, the government's budget deficit remains high, “contributing to rising public debt and pointing to a need to continue efforts toward macroeconomic stability,” it said.

Another major challenge for Vietnam is it infrastructure, which is strained by rapid economic growth, according to the report.

Switzerland topped the overall rankings for the second year in a row while the US fell two spots to number four, overtaken by Sweden (2nd) and Singapore (3rd).

Related Articles

• Vietnam more competitive in global market: report
• Vietnam gains big from free trade, report says
• Party reports come in from provinces
• Industrial sector bigger but still uncompetitive
• Naval forces boost global co-operation

Vietnam more competitive in global market: report

Vietnam has risen 16 places to the 59th spot in global economic competitiveness rankings, the World Economic Forum said in an annual report.

The country has improved in ten of the 12 “pillars” used to measure the competitiveness index, according to the Global Competitiveness Report released Thursday.

“Among the country’s competitive strengths are its efficient labor market (30th) and its impressive innovation potential given its stage of development (49th), including its relatively large market size (35th) with a particularly large export market,” the report said.

However, the report pointed out that trade in Vietnam is still hindered by high import tariffs and customs procedures. Besides, the government's budget deficit remains high, “contributing to rising public debt and pointing to a need to continue efforts toward macroeconomic stability,” it said.

Another major challenge for Vietnam is it infrastructure, which is strained by rapid economic growth, according to the report.

Switzerland topped the overall rankings for the second year in a row while the US fell two spots to number four, overtaken by Sweden (2nd) and Singapore (3rd).

Related Articles

• Vietnam more competitive in global market: report
• Vietnam gains big from free trade, report says
• Party reports come in from provinces
• Industrial sector bigger but still uncompetitive
• Naval forces boost global co-operation

Vinashin told to report on debt solutions

The Government on Sept. 8 directed the State owned shipbuilding giant
Vinashin to report its existing bank credit debt and propose debt
solutions.

Vinashin must deliver the report by Sept. 13.

Deputy Prime Minister Hoang Trung Hai instructed relevant ministries
and agencies to stabilise production and operations, pay its employees
and restructure personnel.

The group's managers and
member companies conduct online meetings every week to review tasks and
to solve emerging problems. The group was instructed to provide social
insurance to its employees.

More than 5,000 Vinashin
workers, or almost 10 percent of its workforce, lost their jobs when
the company failed to pay 234 billion VND (12 million USD) in salaries
and social insurance in June.

Newly-appointed
Vinashin General Director Nguyen Quoc Anh said that Vietnam 's
shipbuilding industry had potential. He said the group was working to
overcome the hard times.

The Government Office reported that Vinashin's total debt was 86 trillion VND (4.41 billion USD) at the end of last month./.

Related Articles

• Party reports come in from provinces
• HCM City set to streamline home ownership titles
• PM sets agenda for insolvent shipbuilder
• Assoc insists on power price hike despite protests
• Preparations for congress reviewed

Banks’ profits shrink after auditors’ review

HCMC - Many banks have seen their profits shrink substantially after auditors made reviews on their consolidated half-year financial reports.

Saigon Thuong Tin Commercial Bank (Sacombank) saw its after-tax profit reduced by 35.5% to VND415.32 billion after its half-year financial report was audited.

The re-examined report showed that Sacombank suffered a loss of VND128 billion from money and gold dealings and a loss of VND529.7 billion from revaluation of its currencies and gold assets. This is also the main reason for the big difference between the two reports.

Similarly, Asia Commercial Bank (ACB) reported VND1.57 trillion in pre-tax profits in the first half this year, but the figure then plunged to VND1.33 trillion after the review by the auditor. The main reason for the 18.1% reduction was that the income from financial investment and stock investment tumbled from VND297 billion to VND47.7 billion.

In addition, according to ACB, in the first six months of the year, the mother bank accounted VND290 billion of profits in the previous year from subsidiaries into its financial statement, but the audited report left out this sum.

Similarly, Vietnam Export-Import JS Bank also saw its after-tax profit fall from VND822.8 billion in its initial report to VND712.7 billion in the audited report.

Related Articles

• Preparations for congress reviewed
• Assoc insists on power price hike despite protests
• Good response to reforms of People's Councils
• PM sets agenda for insolvent shipbuilder
• ASEAN's socio-cultural issues promoted at Da Nang meeting

Provinces to report on foreign investment

HCM CITY — As from September 10 provinces and cities nationwide will have to make regular reports on foreign direct investment (FDI) in their jurisdiction, according to an official of the Ministry of Planning and Investment (MPI).

The FDI reports, which would provide the government with more accurate information on FDI activities nationwide, would be submitted to MPI, said Do Nhat Hoang, director of the Foreign Investment Department.

Hoang said that enterprises would also be required to make separate reports on the implementation of some special FDI projects to submit to provincial and municipal people's committees.

Projects that need to be reported would include those with FDI of more than US$1 billion; on five ha or more of urban land or 50 ha or more of other kinds of land; those involved in exploitation and processing of natural minerals; and those required to regularly report on environmental impacts, he said.

Agencies responsible for granting investment certificates would have to make evaluation reports on the implementation of their state management functions by authorised bodies at localities that had reportable FDI projects. — VNS

Related Articles

• Party reports come in from provinces
• Vietnam orders status report on large FDI projects
• Preparations for congress reviewed
• IFC: Vietnam needs to increase PPP to support economy
• Gov’t leader calls on investors to Mekong Delta

Japan stimulus plan to focus on green tech

An employee from Japanese electronics giant Mitsubishi displays a solar power cell in Tokyo

TOKYO - Japan is planning subsidies to boost corporate investment in factories making environment-friendly products, in a fresh economic stimulus package expected next month, a report said Friday.

The new stimulus being considered by Prime Minister Naoto Kan is also likely to include the expansion of programs for job seekers and extra financing for small and medium-sized businesses, the business daily Nikkei reported, without giving its sources.

The report came as Kan is set to meet Bank of Japan Governor Masaaki Shirakawa on Monday to discuss the appreciation of the yen, which recently hit 15-year highs against the dollar, threatening a fragile export-led recovery.

Speculation is rife that the central bank will face more political pressure to introduce further easing policies.

Under a program targeting low-carbon industries, the government will give subsidies for investment in production plants for automotive lithium ion batteries, LED lighting and other environmentally friendly products, the report said.

The government will also bolster services to young people seeking jobs and will increase subsides to companies that hire new graduates on a trial basis, it said.

The stimulus will also include expanding the financing program to support small and mid-size businesses whose earnings have been eroded by the strong yen, it said.

Related Articles

• Workshop calls for longer-term plans to audit State entities
• Ford rewards employee’s technician skills in contest
• Intel to fund high-tech computer lab at RMIT
• Gov’t grows anxious about SOE restructuring
• Toshiba, MHI to join Japan nuclear mission to Vietnam