Monday, October 11, 2010

Catfish rules set to curb eco impact

Catching catfish in Nga Bay District of southern province of Tien Giang. Global standards for responsible pangasius farming were finalised last Wednesday. — VNA/VNS Photo Duy Khuong

Catching catfish in Nga Bay District of southern province of Tien Giang. Global standards for responsible pangasius farming were finalised last Wednesday. — VNA/VNS Photo Duy Khuong

HCM CITY — Global standards for responsible pangasius (genus of catfish) farming were finalised last Wednesday by the Pangasius Aquaculture Dialogue, a network of 600-plus farmers, scientists, conservationists and others.

The pangasius standards are one of eight sets of standards being developed through the Aquaculture Dialogues, a series of roundtables coordinated by the World Wide Fund for Nature.

The network said it had a shared vision of minimising the negative impact that pangasius farming can have on the environment, farm workers and surrounding communities.

Standards for tilapia farming were finalised in December and for bivalves this week.

Four additional sets of standards on abalone, shrimp, salmon and freshwater trout are in the process of being finalised by Dialogue steering committees or reviewed during public comment periods.

The final pangasius standards will help minimise water pollution, unfair labor conditions and the destruction of natural habitat to create farms.

Most pangasius farming is done in Viet Nam, which then exports the majority of this fish to the EU, the US and Russia.

"Pangasius farming is one of the fastest-growing aquaculture industries in the world but, until now, there have not been any credible standards for the industry," said Dr Flavio Corsin, coordinator of the Dialogue since its inception in 2007.

"These standards will help fill the void," Corsin added. "They will be the best standards in the marketplace because they were developed through a transparent, science-based process that involved a broad and very diverse group of people with expertise in everything from how to protect the environment to how to fit well into a community."

The final standards incorporate feedback from more than 300 people during the two public comment periods held by the Dialogue, as well as input provided during meetings with small-scale pangasius farmers, agriculture farmers and farm employees in Viet Nam and Bangladesh who will be directly affected by the standards.

"As a major European fish brand, it is important for our business to know that there are standards created through a very credible process that will be independently audited," said David Graham of Birds Eye Iglo Group, who is a member of the pangasius Dialogue's Process Facilitation Group.

"That's what we need in order to help enhance consumer confidence in what is still a relatively unfamiliar fish species."

The certification process for these standards will be overseen by the Aquaculture Stewardship Council (ASC).

Until the ASC is created in mid-2011, the certification will be done by GLOBALGAP, a private sector entity that administers a variety of commodity-oriented certification programmes worldwide. The standards will be amended over time to incorporate new science and technology, as well as to encourage improvement on farms. — VNS

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Sunday, October 10, 2010

PM pledges clear path for US firms

CAN THO — Prime Minister Nguyen Tan Dung received the US-ASEAN Business Council delegation yesterday in Can Tho where the delegation will attend a conference on the Investment and Development of the Mekong Delta.

Dung said the economic and trade relationship between Viet Nam and the US had achieved many successes and in 2009, two-way trade reached US$15.5 billion. He added that investment by US enterprises in Viet Nam had also increased, catapulting the US to sixth largest of all the countries investing here.

Dung said the Mekong Delta was an active economic zone, producing and processing a variety of products under the agricultural sector including rice, fisheries and fruit. He added that this was also the location of the national electricity-gas-fertiliser complex.

He pledged to create a favourable environment for overseas enterprises and American ones in particular to invest, and said that the success of those overseas companies was also the success of Viet Nam.

Representing the delegation, Kevin Thieneman, President of Caterpillar Asia said US investments in Viet Nam had focused on infrastructure, informatics, electricity, gas, aeroplane manufacturing, medical, bio-technology and banking services. He hoped that the Vietnamese government would continue to create better conditions for US enterprises to invest in long-term projects in Viet Nam. —VNS

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Funds holdup stalls dormitory project

Capital and site clearance problems prevent completion of student dorms in HCM City, similar to the finished one above. — VNA/VNS Photo Phuong Vy

Capital and site clearance problems prevent completion of student dorms in HCM City, similar to the finished one above. — VNA/VNS Photo Phuong Vy

HCM CITY — A project to build 60,000-70,000 student dormitory rooms in universities in HCM City by next June has stalled because of a lack of capital and site clearance problems.

The project's management board has already spent VND1 trillion (US$52.3 million) that was assigned for 2010, and has asked for an additional VND1.5 trillion ($77 million)this year, HCM City Department of Construction deputy director Nguyen Van Danh said at a meeting with the municipal People's Committee last week.

"The management board will not be able to receive an advance on 2011 funding, because these projects belong to this year," Danh said.

The dormitories are being built at four universities in the city's northeast university precinct and Ton Duc Thang University in the south.

Funding for the construction is coming from a larger fund of governmental bonds worth VND3.9 trillion ($204 million).

"The lack of capital will prevent completion of dormitories for the University of Transport and HCM City University of Culture by the June deadline," Danh said.

He said the disbursement of VND1 trillion assigned to the projects by the Government has already been completed.

Danh added that as well as the requested extra VND1 trillion to complete infrastructure at four of the universities' dormitories, the dormitory project of National University in HCM City needs an additional VND502 billion($ 25.8 million).

National University authorities said they needed the money because they were struggling with site clearance, compensation and resettlement for the families who gave up their land for the dormitory project.

Site clearance for the National University project succeeded to take only 28ha of the total 56 ha needed. Many families and companies have refused to surrender their land complaining of low compensation rates and delays in construction of 387 flats for resettlement in adjacent to Binh Duong Province.

The construction delays for the resettlement flats were also a problem caused by site clearance.

The city's steering board for the dormitory development plan has recommended the Government to supplement around VND1 trillion for the project and VND502 billion to the National University.

The board also asked the Ministry of Transport to order the Traffic Work Construction JSC No 68, under the management of the ministry, to give land to the National University for the dormitory construction.

Nguyen Thanh Tai, deputy chairman of HCM City People's Committee said every month, the city should complete at least 4,000 rooms to stay on schedule.

He pledged to get the supplement from the Government and deal with the construction of resettlement flats in Binh Duong.

More than half a million students currently study at universities in the city and the number will increase by another 60,000 by 2015 with 70 per cent or 399,000 of them from other provinces.

The demand for dormitories now in HCM City is about 239,000 but only 63,000 are available. — VNS

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Nation warned of middle-income trap

HA NOI — Viet Nam is in danger of falling into the middle-income trap, which will result in diminished growth, economic experts said.

Homi Kharas, from the Brookings Institution in the US, said Viet Nam could enter the danger zone within a decade if long-term solutions were not implemented.

Kharas said Viet Nam's growth was heavily dependent on credit and the presence of large economic groups, which would work to hinder future growth.

In 2007 and 2008, credit expansion and increases in world food and energy prices resulted in inflation. To curb rising prices, the Vietnamese Government raised interest rates, which resulted in higher costs for enterprises and domestic banks, Kharas said.

However, credit loosening to foster growth would repeat the story and even harm the country's long-term sustainable development, he added.

To leap over the middle-income trap, Kharas suggested the Government give priority to crisis avoidance, productivity gains and governance improvement.

He added that Viet Nam should also pay special attention to asset bubble management and better micromanagement. Meanwhile, to raise productivity, he said the country should have in place an export-led growth strategy, while upgrading its transport infrastructure and work force skills.

According to the World Bank, low-income countries have a Gross National Income (GNI) per capita of US$975 or less; lower middle-income countries, $976-$3,855; upper middle-income, $3.856-$11,905; and high income, $11,906 or more.

According to the World Bank, Viet Nam in 2008 had a GNI per capita of $890, making it a low-income nation.

Since then, there has been no official report on Viet Nam's annual GNI per capita.

However, at the end of 2009, the WB approved a loan of $500 million for a public investment reform programme, which is sourced from the bank's International Bank for Reconstruction and Development.

The IRBD is designed to reduce poverty in middle-income and creditworthy poorer nations.

The bank's press release quoted Jim Adams, vice president for the East Asia&Pacific region, as saying: "This is a significant milestone for Viet Nam – a country which has moved from the category of ‘highly indebted poor country' to middle-income status in less than seven years."

Economist Do Hoai Nam, from the Viet Nam Academy of Social Sciences, said though Viet Nam was no longer in the list of poor countries, its achievements were not sustainable.

He said infrastructure in urban and rural areas was not well-developed, the economy was weak in specialisation and competitiveness, the number of skilled workers was too small and its science and technology standards were low compared to other countries in the region.

Solutions

Justin Yifu Lin, the World Bank's senior vice president and chief economist, said that for developing countries to become developed ones they had to promote their competitive advantages.

Nam said Viet Nam should develop its ocean and coastal economy, key economic and free trade areas and industrial zones in terms of specialisation and modern technology.

He said the country should focus on restructuring its economy and transforming models of growth.

It is necessary to reform the allocation of social resources for development and improve the efficiency of State investment and the State-owned economic sector, Nam said. He also said there should be greater private-sector investment.

The relations between the market and the State in allocating resources for catch-up strategies should be well-handled, he added.

He also said comprehensive infrastructure was needed for exploiting and promoting resources for fast and economically sustainable development.

Meanwhile, Vo Dai Luoc, former director of the Ha Noi-based Institute for World Economy, said it was crucial for Viet Nam to find a way to transform into a developed country.

He said experience had shown that the secret to this was in appropriate regulations. For this to happen, there needs to be a breakthrough in the way development is approached at decision-making level, Luoc said.

Truong Dinh Tuyen, former Minister of Trade (now the ministry of Industrial and Trade), said it was time to create an institutional foundation to help the country bust out of the trap.

Victoria Kwakwa, director of World Bank Viet Nam, said the country was facing new development challenges. — VNS

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India's Tata Steel may seek $5.4 bln loan: report

steel
Photo: Reuters

NEW DELHI - The world's seventh-largest steelmaker, Tata Steel, is in talks with banks for a US$5.4 billion loan for its British unit Corus, a report said Saturday.

The Economic Times newspaper said BNP Paribas, HSBC Holdings and Royal Bank of Scotland may be among the banks contributing funds for the 3.5-billion-pound ($5.4 billion) loan.

The report noted that Tata Steel chief financial officer Koushik Chatterjee said last month that the Mumbai-based steelmaker planned to refinance as much as $6.5 billion of its long-term debt.

Tata Steel took loans to fund its $13 billion acquisition of Anglo-Dutch steelmaker Corus in 2007, just before the global financial crisis hit demand for steel.

There was no immediate company comment on the report, which cited unidentified sources with direct knowledge of the matter.

In August the company posted a consolidated net profit for the three months to June of 18.25 billion rupees ($388 million) against a loss of 22.08 billion rupees a year earlier.

Tata Steel, whose shares have fallen 13 percent this year, issued a cautious outlook with its results, saying the long-term sustainability of its recovery was "highly dependent on future growth in the European construction sector."

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Metro Cash & Carry opens wholesale center in An Giang

Visitors flood the new Metro Cash & Carry Vietnam wholesales center in An Giang Province - Photo: Quoc Hung
HCMC - German-invested wholesale chain operator Metro Cash & Carry opened a wholesales center in An Giang Province last week, the second wholesales store in the Mekong Delta by the group after the first one in Can Tho City.

The new center in Long Xuyen City brings to ten the number of its wholesale facilities nationwide, including three in HCMC.

The wholesale center Metro Cash & Carry Long Xuyen, located at 414 Tran Hung Dao Street, is developed at a cost of US$18 million and covers more than three hectares. It stocks over 25,000 product lines, both food and non-food items.

The center, which creates more than 400 new jobs, will also provide a positive stimulus for the consumer goods industry as up to 95% of the goods will be procured in Vietnam, according to the company.

Vuong Binh Thanh, vice chairman of An Giang Province, emphasized in a statement the importance of Metro’s business-to-business (B2B) wholesale to his province’s economy which is trade-and-service based.

“Not only being a big tax payer, a Metro center will also benefit both our local producers and our business holders by its huge and price competitive assortments. Every year, An Giang Province has around five million tourists that bring Metro big and stable sales opportunities,” he added.

Metro recognized the potential of the Mekong Delta region when it opened its first Cash & Carry wholesale market in Can Tho City in 2004. The Mekong Delta region has become the biggest fresh food supplier of Metro Cash & Carry wholesale system.

“Metro’s success in emerging economies like Vietnam has proved the uniqueness of Metro’s B2B self-service wholesale model. A Metro Cash & Carry wholesale center benefits the local economy and its community,” said Randy Guttery, managing director of Metro Cash & Carry Vietnam.

He added that “Metro Long Xuyen is new milestone of the cash & carry wholesale concept in Vietnam and is again emphasizing our Metro’s long term commitment to Vietnam.”

The company is developing two more new wholesaler centers, one in Binh Dinh Province’s Quy Nhon City and the other in Binh Duong Province for opening in this year.

At the grand opening ceremony, Metro Cast & Carry Vietnam also handed the province a Metro cheque worth nearly VND200 million to support buying health insurance for the province’s needy people.

Metro Cash & Carry opened its first wholesale center in Vietnam in 2002. On Friday the company is operating ten wholesale centers in HCMC, Hanoi, Haiphong, Danang, Can Tho, Bien Hoa - Dong Nai and Long Xuyen – An Giang and two distribution platforms in Binh Duong and Lam Dong.

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Market advances for fifth straight day

HCMC – The local market continued to rally in the first session of this month although the uptrend slowed down compared to the two previous sessions. The VN-Index gained 3.67 points, or 0.81%, against the day earlier to close at 458.75.

Liquidity, however, declined with 47 million shares worth VND1.2 trillion changing hands, falling by 15.4% and 20.7% from the session earlier respectively. On the southern bourse, investors bid for 94 million shares, falling by 7.6% against the previous day, while they offered 76 million shares, a 0.3% decrease.

The market started the day in positive territory but fell back during the second matching phase to hit a daily low of 450.93. It then rebounded sharply and finally closed at the high.

Some 127 stocks gained grounds while 83 others declined, including 49 stocks shooting to the ceiling prices and six stocks plunging to the floor prices. Blue-chips were lower as EIB, FPT, STB and PVF decreased or closed at the reference prices.

Investment and Trading of Real Estate Co. (ITC) became the most active stock in terms of liquidity and it closed up 4.7% to VND24,400 with around two million shares traded. Refrigeration Electrical Engineering Corp. (REE) ranked second, rising 0.6% to VND17,200 on the volume of 1.4 million shares.

Foreign participation decreased on Thursday as the investors bought 3.6 million shares worth over VND151 billion and offloaded 2.2 million shares worth VND102 billion. They accounted for 12.3% and 8.4% of the market’s buying and selling value respectively.

The Hanoi market also rose again in similar turnover of around VND1 trillion. The HNX-Index added 3.26 points, or 2.54%, from the previous session and ended the day at 131.66.

The market saw 235 stocks rising while 63 stocks dropping, of which 25 stocks went to the ceiling prices and four stocks dropped to the floor prices. Foreigners turned net sellers and accounted for 0.47% and 0.51% of the market’s buying and selling value respectively.

HCMC Securities Corp. (HSC) in its comment said the markets both closed higher again with the VN-Index breaking through technical resistance level at 455 points while the Hanoi market managed another impressive rally. Volumes fell however as many investors were sidelined ahead of the long weekend. Foreign investors were also less active and market breadth narrowed somewhat.

“Friday’s close sends quite a positive signal as we have predicted a correction ahead of the national holiday following recent strong gains. However, buying momentum remained quite strong on both exchanges and early weakness was met by another wave of buying which took us higher again by the close,” HSC added.

Viet Dragon Securities Co. said investors became more optimistic given five rising sessions in a row. “As stock prices remain cheap, it is not too risky for long-term investors to buy shares now. However, investors should be cautious before the central bank give its final decision on Decree 13 and the macro economy has more supporting news,” the broker said.

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