Vietnam Air slashes fares for int’l flights

HCMC - Vietnam Airlines has announced to slash its economy-class fares for international flights from Vietnam by up to 85% to boost sales, just weeks after the national flag carrier discounted tickets by more than 50% for domestic services.

The carrier will provide nearly 90,000 discount seats for passengers from September 30 to October 10 to fly from October 15 to December 31, 2010 and from April 1 to May 31, 2011.

The airline offers the biggest discount of up to 85% to the flights from Vietnam to destinations in Southeast Asia, with return air tickets starting from VND950,000 (US$48.7).

The second biggest cut applies to the flights to Korea and Japan, which are two important markets of Vietnam Airlines in the northeast of Asia. Two-way fares are from VND5.8 million (nearly US$298), or up to 82% off normal rates.

Vietnam Airlines announced return fares to China, Hong Kong and Taiwan from VND1.9 million (some US$97.5), down 80% from normal levels. This rate is substantially lower than a return HCMC-Hong Kong fare from US$125 on sale at United Airlines in September.

Vietnam Airlines will sell fares from VND1.92 million, down up to 74% for the flights to Indochinese airports; from VND9.55 million or a decrease of 50% for the service to Australia; and VND11.44 million (just over US$587) or down 40% for the flights to France, Germany and Russia.

Tax and surcharges are not included in the discount fares, which Vietnam Airlines will also sell at the upcoming International Travel Expo in HCMC from September 30 to October 2. These discount fares can be purchased at the carrier’s booking offices and agents nationwide.

Holders of discount tickets still enjoy full services aboard the carrier’s flights. However, these fares will not be valid for the flights during public holidays in Vietnam and the overseas destinations that Vietnam Airlines flies to as well as the summertime when demand for air travel is high.

Vietnam Airlines is selling fares from VND400,000 to VND860,000 (US$44), off by more than half for its domestic flights until October 30. The carrier said it offered more than 300,000 cheap seats from September 15 to October 30, 2010.

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Accor targets 30 operational hotels in Vietnam by 2013

Patrick Basset of Accor pinpoints opportunities on offer for the group to expand operations in Vietnam in front of a backdrop featuring the Pullman properties due to be open here in the country - Photo: Mong Binh

HCMC - Accor is striving to realize its new ambitious goal to operate 30 projects in three years’ time, or almost three times higher than the current number of hotels the group is managing in Vietnam.

“Our first realistic objective is to have 30 hotels and we think we shall be able to have this network of hotels already open by the end of 2013,” said Patrick Basset, Accor vice president of operations for Vietnam, the Philippines, Japan and South Korea.

Basset told the Daily after a press conference in HCMC on Tuesday to introduce the Pullman brand that Accor now operated 14 hotels under the Sofitel, MGallery, Novotel, and Mercure hotel brands in Vietnam. The rest of the projects under construction will be up and running in the next three years.

“The 30 hotels will have a quite balance of Accor brands,” Basset said, adding that Accor would have about four Sofitel and five Pullman hotels, and six to seven properties under each of Mercure, Novotel and ibis.

The biggest international operator of hotels in Vietnam told reporters that it had just signed contracts to manage two new Pullman hotels, bringing the total number under this upscale brand in this fast-growing tourism market to five.

All the five Pullman hotels will be put into service by 2013, and the Pullman Haiphong Flamboyant Island Resort and Pullman Danang Beach are the two new developments committed to Accor.

“We are very excited to announce Pullman Haiphong Flamboyant Island Resort,” he said.

The hotel in Haiphong is the latest commitment for the brand in Vietnam. Situated on Flamboyant Island in Do Son District, this 300-room hotel will cater to the increasing number of travelers to the northern industrial and seaport hub of Vietnam, as this upscale hotel has a ballroom, meeting rooms, three restaurants, two bars, swimming pools, an entertainment center, spa and an amphitheater.

Due to open in mid-2011, the Pullman Danang Beach will feature 207 guest rooms, four restaurants and leisure facilities including three swimming pools. The other Pullman projects scheduled to go online next year are in the southern city of Vung Tau and in Hanoi.

The 360-room Pullman Vung Tau, the first Pullman hotel planned for opening in Vietnam, will have a ballroom for 500 guests at a time, smaller functional rooms and other business and leisure facilities.

The 250-room Pullman Hanoi Horison under renovation will have event facilities able to accommodate up to 1,000 guests among others. Accor will operate more Pullman hotels to take advantage of the demand for upscale business and leisure facilities, he said.

“With sustained economic growth and significant investment in infrastructure leading to increased volumes for business travel and continued international and domestic leisure strength, opportunities continue for quality upscale hotel developments in Vietnam,” Basset said.

Evan Lewis, Accor vice president of communications for Asia Pacific, told reporters that increasing foreign investment flows into Vietnam and continued economic growth would fuel strong demand for international quality upscale hotels in this country. This is why Accor introduces the Pullman brand to this emerging market.

But Basset predicted ibis would grow slightly bigger than the other Accor brands in the years to come because of the larger need for the hotel under this economy, new-concept brand in Vietnam.

Earlier this month, Viethan Hotel Joint Stock Co. started work on the first ibis hotel project in Vietnam. The company, founded by B.B. Dai Minh Corp., will inaugurate this three-star hotel in HCMC’s Saigon South in about 20 months’ time.

The US$11-million property in District 7 will have 160 rooms as well as café, restaurant, gym and conference facilities.

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Tunnel connects under Saigon River

HCMC chairman Le Hoang Quan grants badges to 34 persons with outstanding contributions to the project

HCMC – HCMC on Tuesday held a ceremony to mark the successful linkage of all the four elements of the Thu Thiem Tunnel that crosses beneath the Saigon River.

The place where the final concrete is poured to link up the Thu Thiem Tunnel with District 1 - Photos: Kinh Luan

Luong Minh Phuc, director of the HCMC East-West Highway and Water Environment Project Management Unit, said installation of traffic control and safety devices inside the tunnel would be completed by next March. The highway, including the tunnel, will be inaugurated in the second quarter of 2011.

The HCMC government has established the Thu Thiem Tunnel management board to operate the project after the whole East-West Highway is fully opened to traffic. 

The tunnel, which links the city’s commercial district and Thu Thiem Peninsula, is the most important work of the highway project. It is about 1.4 kilometers long and 33 meters wide.

The six-lane tunnel will allow a maximum speed of 60 kilometers an hour and help relieve traffic congestion.

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Mexico-Vietnam Business Committee holds first session

The first session of the Mexico-Vietnam Joint Business Committee (MVJBC) and a seminar on bilateral trade took place in Mexico city Tuesday as part of a working visit by a Vietnamese Defence Ministry business delegation.

The events were attended by Vietnamese Ambassador to Mexico Pham Van Que, Deputy Director of the Vietnamese Defence Ministry’s Economic Department Colonel Pham Viet Thich, President of the Mexico-ASEAN Business Committee Enrique Michel and President of the Asia-Pacific Directorate of the Mexican Business Council for Foreign Trade Sergio Ley.

Speaking at the events, Sergio Ley expressed his belief that the first meeting would help Mexican and Vietnamese businesses strengthen mutual understanding, thus laying the foundation for their effective cooperation agreements in the future.

Enrique Michel spoke highly of the Vietnamese economy’s firm progresses, reflected by its improved infrastructure, international tourism, food production and export, and international trade.

According to Michel, two-way trade between Mexico and Vietnam sharply increased from US$60 million in 2001 to $714 million in 2009.

He, however, noted that the Mexico-Vietnam trade relation still faces many challenges ahead that require both sides’ consensus and joint efforts.

Vietnamese Ambassador Pham Van Que said he was pleased to see that today Vietnamese consumers have better understanding about Mexican goods and vice versa.

Mexico is now Vietnam ’s largest trade partner in Latin America and the two countries have overcome geographical and language obstacles to further their bilateral ties, he added.

The first MVJBC session is the start of a long-term and mutual trust partnership for sustainable development between the two countries, the ambassador stressed.

 

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US Fed 'prepared' to act if recovery stalls

WASHINGTON – The US Federal Reserve avoided pulling the trigger on fresh stimulus spending at a top-level policy meeting, but said it was prepared to act if the tepid economic recovery cools further.

The bank's open market committee held interest rates at record lows in a bid to shore up what it called a "modest" recovery, but shied away from a new -- and controversial -- round of spending.

"The committee will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery," the Fed said.

During the depths of the recession the bank spent about one trillion dollars buying up long-term US debt and toxic mortgage products in an effort to lubricate blocked up financial markets.

That may have helped stave off a rerun of the Great Depression, but there are widespread concerns that the private sector is not ready to stand on its own.

With US growth projected to be an anemic 1.5 percent this year, many commentators have called on the Fed to once again open the sluice gates and let cash flow into the economy.

At its August meeting, the bank took the baby step of agreeing to keep spending at current levels by plowing the proceeds from investments into US bonds.

Since that meeting, a panel of top economists has declared the US recession over and a slew of data has pointed to a moderately better outlook, but that has not been enough to dampen concerns.

The Fed retained its bleak view of the health of the world's largest economy, making further action possible when the panel meets again in early November.

"(The Fed) statement effectively kicked the can six weeks down the road," said Stephen Stanley of Pierpont Securities.

The Fed's top policy panel said the pace of recovery had "slowed in recent months" while warning the pace of economic growth would be "modest in the near term."

It pointed to now-familiar problems that plague the economy: high unemployment, low consumer spending and a moribund housing sector. Full text of Fed statement

It also gave a thinly veiled warning about the risks of deflation, stating that inflation rates were "somewhat below" target levels.

"The Fed clearly stated current levels of inflation are too low, and that the aim of current policy would be to address the deficiency," according to Andrew Schiff of Euro Pacific Capital.

Even with this bleak backdrop, Fed members again appeared to have tussled over when crisis measures are needed and if they would work.

Kansas Fed Representative Thomas Hoenig, seen as an inflation hawk, voted against the policies, arguing that loose monetary policy would create imbalances over time.

"The doves are ready now, while the hawks would need to see a significant deterioration in the outlook to sign off," said Stanley.

Tuesday's meeting was the policy-making panel's last before November's mid-term elections.

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Market retreats on CPI concerns

Investors watch stock prices at Saigon Securities Inc. The VN-Index fell 4.55 points, or 0.99%, from a day earlier and closed at 453.32 - Photo: Le Toan

HCMC – The local market declined after three consecutive rising sessions on Tuesday given September consumer price index (CPI) is up in Hanoi and HCMC.

The VN-Index fell 4.55 points, or 0.99%, from a day earlier and closed at 453.32.

Meanwhile, liquidity on the southern bourse remained high as 57.4 million shares worth VND1.7 trillion were traded, up 3.4% and 15.8% from the previous session respectively.

The market opened lower and fell back steadily to hit a low during the second matching phase before recovering and then in the final phase fell back once again to close at the daily low.

Up to 145 stocks lost ground while 56 others moved higher, of which nine stocks closed the day at their ceiling prices and seven issues dropped to the floor prices. Major sectors were mixed to lower on Tuesday.

Ocean Group Co. (OGC) once again took the lead in terms of liquidity, surging by 4.7% from the previous day to VND37,600 per share with a hefty 14.3 million shares traded. Eximbank (EIB) was the second biggest traded issue but it closed flat at VND17,600 per share with 1.6 million shares changing hands.

Foreigners were net buyers in terms of value as they acquired 5.8 million shares worth VND262 billion and offloaded 7.1 million shares worth VND248 billion. They accounted for 15.3% and 14.5% of the market’s buying and selling value respectively.

The Hanoi market fell on Tuesday amid lower turnover of VND1 trillion. The HNX-Index fell by 1.74 points, or 1.31%, against the session earlier and ended the day at 131.57.

The market saw 58 stocks rising and 242 others falling, including eight stocks hitting the ceiling prices and eight others dropping to the floor prices. Foreigners were net sellers again and accounted for 0.68% of the buying value and 0.84% of the selling value.

Fiachra Mac Cana, managing director of HCMC Securities Corp., said despite the fall on both markets on Tuesday, the damage was fairly limited while turnover remained good.

Fallout from the September CPI releases in HCMC and Hanoi was fairly muted but at the same time, buyers were quite cautious about pushing up prices. Foreign participation remained high although in fact selling pressure increased markedly, he said.

“The market was quite interesting on Wednesday with a steady decline across the board in most issues… The market seemed a little confused at the moment with some sharp upward and downward price movements at the close on Wednesday amid soaring bid levels. But, behind all this we still feel that prices continue to be fairly well supported at current levels and investors meanwhile await near term developments,” he said.

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Thai scholars: Vietnam, a country of opportunities

The Thai scholar circle has extolled Vietnam as a country with
favourable investment environment, saying they believed in further
development of the bilateral cooperative relationship, despite
challenges.

At a seminar on the Thailand-Vietnam
relationship held in Bangkok, Thailand, on Sept. 21, adviser
Wittaya Supatanakul from Thammasat University’s Centre for Research
and Development of Cambodia, Laos, Myanmar and Vietnam,
highlighted the strengths of Vietnam, which he called a country of
opportunities.

Vietnam has a big market with
more than 87 million consumers, high purchasing power and cheap
production and labour costs, while sharing cultural similarities with
Thailand, said Wittaya, adding that Vietnam enjoys political
stability and an investment encouragement policy and welcomes small and
medium-sized enterprises to do business in the country.

On Vietnam ’s investment environment, Wittaya said Vietnam offers
foreign entrepreneurs and investors the benefits of social security and
public order.

Its government policies welcome
investors and facilitate necessary procedures while its industrial zones
offer one-stop-shop services and openings in various fields, he said.

Nguyen Hong Quang from the Hanoi’s East Asia
Institute presented a report on, “The Vietnam-Siam relationship in the
17 th and 18 th century: a common picture on the two countries’
relationship and Vietnamese people’s way of looking at Siam ”.

At present, Thailand ranks tenth among more than 100 countries and
territories investing in Vietnam with 216 projects totalling more
than 5.7 billion USD. Two-way trade exceeded 6.1 billion USD last year
and the neighbouring countries are striving to raise bilateral trade
value to 10 billion USD.

The seminar was jointly
held by the Ministry of Foreign Affairs’ East Asia Department and
Thammasat University ’s East Asia Research Institute of Thailand./.

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