US NGO is angel of mercy for small firms

The US-based Arthur B. Schultz Foundation will provide small and medium-sized Vietnamese companies interest-free loans worth a total of US$180,000.

SMEs with a sound financial position, assets for collateral, good plans to effectively use and repay the fund will be able to borrow up to $20,000, Do Thanh Long, deputy director of the Center for Economic Development Studies of the Hanoi-based University of Economics and Business, which announced the Thriive, formerly known as Social Microenterprise Initiative in Vietnam program, said.

Job creation will be the most important criteria for getting funds, he said.

Borrowers will have to repay the loan in two years, but not in cash: They have to provide free goods and services to the poor for the value of the loan.

The program focuses on SMEs in 25 northern cities and provinces, prioritizing those with women bosses.

It will help them leverage investing in fixed assets and Property-Plant and Equipment (PPEs), Long said, adding that beneficiaries will be chosen from next month and disbursement will be made from January.

In the last five years the foundation has lent $370,800 to 28 SMEs, benefiting around 80,000 poor people in Vietnam.

ABSF, founded in 1985, is dedicated to improving the quality of life around the world through supporting small business entrepreneurs, women's empowerment, and disabled mobility. It is also active in Kenya and Palestine.

Related Articles

• Banks to push sustainable projects
• City culture houses elicit tepid response
• Civil servants to enjoy State housing
• Nine-month-old baby abused by mother
• Experience shared to make IPOs less exclusive

US state seeks co-operative ties

HCM CITY — The State of Washington sought co-operation with Viet Nam in several fields including education, trade and agriculture, visiting Governor Christine Gregoire said yesterday.

Gregoire, who is leading a delegation of about 60 enterprises looking for business and investment opportunities, highlighted the agricultural strengths of the state, particularly in potatoes, apples and cherries.

"We have brought Washington State's high quality, deliciously flavoured potato products to Viet Nam through Kentucky Fried Chicken stores," she said at a potato promotion event held in HCM City.

Angela Dickey, deputy Consul General of the US in HCM City, said Washington State was the US's number one producer and exporter of frozen potato products. Viet Nam was a large consumer of this product, ranking 12th among importers with a value of US$1.4 million last year, she said.

Gregoire had earlier met with the Prime Minister Nguyen Tan Dung and discussed ways to boost export of Vietnamese fruits to the US and US fruits to Viet Nam.

Apart from agricultural products like pepper, rice, coffee and rubber, Washington was a potential market for Vietnamese dragon fruit, she said.

The Governor also said the state wanted to have student exchange programmes with Viet Nam as a measure to boost co-operation in the education sector. It would send students to Viet Nam for study and research purposes and welcomes all Vietnamese students to come to the state, she said.

On the occasion of her visit, invitations were given to 150 Vietnamese students to visit universities in Washington. There are 1,200 Vietnamese students currently studying in Washington universities.

During her visit, Gregoire attended the opening ceremony of an elementary school in Hue sponsored by Boeing Corporation, and cut the ribbon for the SSA Marine Cai Mep Terminal, a joint venture between Saigon Port, Vinalines and SSA Washington State. — VNS

Related Articles

• City culture houses elicit tepid response
• Banks to push sustainable projects
• Civil servants to enjoy State housing
• Nine-month-old baby abused by mother
• Experience shared to make IPOs less exclusive

VN investment potential in Laos untapped

HCM CITY — Although trade between Viet Nam and Laos has increased significantly in recent years, investment remains at a low level despite the large potential that exists, according to the Viet Nam Economic and Cultural Office in Laos.

As of May, Viet Nam ranked third in terms of foreign direct investment in Laos after China and Thailand, with total registered capital of US$2.4 billion and 216 licensed projects.

Vietnamese investment in 16 of the total 17 provinces of Laos focuses on the industry, agro-forestry, services, tourism, banking, power, mining, and insurance sectors.

Projects that have proceeded smoothly include the Sekaman 3 hydroelectric plant and rubber plantations.

Although these have been successful, many Vietnamese investors have encountered difficulties when doing business in Laos because of unclear laws, poor infrastructure and relatively low skill levels of labourers.

Bui Trong Dang, deputy director general of the Viet Nam National Coal, Mineral Industries Group's branch in Laos, said it was carrying out three mining projects in the country.

He said he needed about 2,000 workers for its steel project in Xiangkhoang Province and another 2,000 for a salt production project in Savanakhet Province. But the local workforce cannot meet the demand.

In addition, the global economic crisis last year and equitisation of State-owned enterprises have caused construction schedules to fall behind, said Hoang Cung Tho Nhan, chairman of the Viet Nam Business Association for Co-operation and Investment in Laos.

Despite the potential, bilateral trade between Viet Nam and Laos is not expected to reach $1 billion this year, since the figure was only $212 million in the first half, according to the association.

Laotian authorities must clarify basic procedures to promote further investment of Vietnamese enterprises, Vietnamese investors in Laos have suggested.

Duong Dinh Bang from the Viet Phuong Investment Group said Vietnamese investors in trade centres in Laos should speed up their construction so that more Vietnamese goods can be sold in the Laos market. — VNS

Related Articles

• Hurdles litter path, but Vietnam investment to rise
• IFC: Vietnam needs to increase PPP to support economy
• Food promotions at Grand and First hotels
• Vietnam ranked prime global destination for third year running
• Vietnam gains most from S.Korea free trade pact: officials

Website warns exporters of future anti-dumping actions

HA NOI — A website offering early warnings of pending anti-dumping cases against Vietnamese exports was launched on Wednesday.

Available at www.canhbaosom.vn, the system was built under a cooperative agreement between the Ministry of Industry and Trade's Viet Nam Competition Authority and the Global Competition Fund of Denmark.

In the first phase, the site will focus on the sectors of textile and garment, footwear, seafood, wood products and electrical cables, and upon two major markets, the US and EU.

Eventually, information and warnings will extend to 20 sectors and 10 major markets.

Deputy Minister of Industry and Trade Le Danh Vinh, addressing yesterday's launch ceremony, said the system would help businesses cope with trade lawsuits effectively as well as warn them of the risks of anti-dumping lawsuits in their sectors.

Anti-dumping cases have caused substantial negative effects on Viet Nam's economy, not only losing export revenue for companies but also causing them to incur legal costs to litigate dumping claims.

Vinh said he hoped the new system would help Vietnamese enterprises better prepare for and take active perventative measures against anti-dumping lawsuits, reducing their losses.

The system would thereby help Viet Nam maintain and increase its export value, increasing the competiveness of Vietnamese industries on global markets, he said.

Danish Ambassador to Viet Nam John Nielsen said the Southeast Asian country would have to face the challenges brought about by freedom of trade, and the early warning system would be an effective tool to increase the awareness of Vietnamese exporters.

He urged Vietnamese enterprises to apply transparent accounting standards as proof against dumping accusations.

Viet Nam has faced 31 anti-dumping lawsuits related to tra and basa fish, shrimp and leather shoe exports since 1994, according to the Viet Nam Competition Authority. — VNS

Related Articles

• Timber-product exporters sign $3b deals
• PM foresees bright future for co-operation with Africa
• High rice price cuts exports
• Poor rural children blaze education trail
• Banks scramble for mid-level managers

European free trade deal lifts bilateral trade

The negotiations and signing of the Free Trade Agreement (FTA) between Vietnam and the European Free Trade Association (EFTA) are a foundation for enhancing bilateral trade ties, said a seminar in the central coastal city of Nha Trang Thursday.

The seminar on the FTA between Vietnam and EFTA, “Negotiation possibilities and prospects for trade ties”, drew more than 40 delegates from Vietnam businesses, State management agencies and policymakers and representatives from Norwegian and Swiss embassies in Hanoi .

Vietnam – an emerging economy with a considerable improvement in infrastructure and political stability – has an annual average GDP growth of 7-8 percent.

Vietnam ’s consumption is predicted to post a 10 percent increase each year and to triple the current figure by 2025.

The trade relationship between Vietnam and the four EFTA members – Switzerland , Norway , Iceland and Liechtenstein – has recorded progress.

Vietnam is expected to export goods worth around US$2.3 billion to Switzerland and import goods worth around $559 million from the country.

First Secretary of the Norwegian embassy in Vietnam Thea Ottmann said that EFTA countries have a total population of 13 million people but achieve a GDP of nearly $1 trillion per year and EFTA is the third-largest partner of the European Union.

EFTA has signed free trade agreements with 31 nations and territories in seafood, pharmaceuticals, machinery, service and other sectors, she said.

Vietnam is a potential partner of EFTA, said Thea Ottmann, noting that both sides have established a joint group to study the feasibility of setting up the FTA and the content of negotiations.

Vice President of the Vietnam Garment and Textiles Association Le Van Dao said that Vietnam ’s garment and textiles sector posted export revenues of 9.2 billion USD last year, contributing 15 percent of the country’s GDP and more than 17 percent of the nation’s total export revenues.

The signing of the FTA with EFTA would facilitate Vietnam ’s garment and textiles exports as EFTA connects with the EU, the major market of the sector, he said.

Related Articles

• Vietnam gains most from S.Korea free trade pact: officials
• VN, China talk economic, trade cooperation
• Cashew traders yet to embrace trading center system
• Timber-product exporters sign $3b deals
• PM foresees bright future for co-operation with Africa

Government promotes e-bidding

The Son La Hydropower Plant is being built with public investment. The newly introduced online bidding process is expected to help the Goverment save money and increase the efficiency of public investment projects. — VNA/VNS Photo Huy Hung

HA NOI — Ministries, ministerial-level agencies, localities and enterprises nationwide are encouraged to take part in the trial project of an online bidding application so as to improve their operation efficiency and raise the popularity of the method , according to a conference held by the Ministry of Planning and Investment on Wednesday.

Deputy Minister Dang Huy Dong said that the trial programme proves the Government's determination to boost transparency and fight corruption during the bidding process, and increase the efficiency of public investment projects.

Le Van Tang, director of the Bidding Management Department, said that every year, the Government had to spend a lot of money, effort and time to buy goods and services for public interests.

Applying e-bidding would help save costs and time for the Government and furthermore, promote healthy competition among enterprises, Tang said.

Online bidding would facilitate enterprises' ability to access information and minimise the provision of wrong information because both buyers and sellers will have to comply with a procedure automatically part of the e-bidding system.

Tang emphasised that "the direct contact between project owners and bidders is unnecessary and it also means that there is no opportunity for corruption."

Online bidding moves to trial stage Online bidding will be implemented on a trial basis starting on September 15 at three State organisations, namely the Ha Noi People's Committee, the Viet Nam Post and Telecommunications Group, and the Electricity of Viet Nam Group. Under Circular 17/2010/TT-BKH, issued by the Ministry of Planning and Investment, that has been in effect since last Wednesday, the trial online bidding will be applied to consulting services, goods procurement, and construction packages. Each of the three organizations will put forth at least five goods procurements, three consulting services, three construction packages for competitive bidding. Both the bidder and the bid organiser will have to register on the website http://muasamcong.mpi.gov.vn in order to participate and receive a digital identity code. All electronic documents with the digital signatures of the representatives made via the online system will have the same legal value as the paper-based documents. — VNS

Online bidding would stimulate ministries and agencies to invest further in information technology infrastructure and develop electronic transactions, Tang said. This is also a significant step in the process of developing e-Government.

Deputy General Director of the Viet Nam Post and Telecommunications Group To Manh Cuong said that VNPT was planning to invite bids for 12 projects for consulting services, goods procurement and construction and will ask its subsidiaries to do the same. Cuong believed that with the group's IT network and the abilities of its staff, the online bidding process would be carried out smoothly.

Le Thiet Hung, deputy director of the Project Management Board under Ha Noi's People's Committee, said that the policy was very necessary as it would save time and cut down paper usage.

He said that the project should have been implemented earlier, but it was not too late to start now. Tang also worried that the current nationwide information technology infrastructure had not been well developed and that many problems relating to security and tranmission lines could arise.

However, Tang said the IT system was not the biggest problem, but that the greatest obstacle lay in the determination of investors because bidding over the Internet could harm the "benefits" to some people. Officials at all levels had to change their way of thinking and working so that the modern bidding method could comfortably replace the traditional one, Tang added.

According to Tang, the Ministry will collaborate with related authorities in the near future to provide training courses, increase staff abilities, complete legal frameworks and intensify the examination and supervision of bidding activities.

The Government targeted to open the bid for 15-20 per cent of total projects using State capital. — VNS

Related Articles

• IFC: Vietnam needs to increase PPP to support economy
• Dengue epidemic grips Vietnam, claims 42 lives
• Good response to reforms of People's Councils
• Business briefs
• PM instructs Bac Ninh to industrialise in five years

E-bidding makes public procurement transparent

Photo: Reuters

E-bidding has made public procurement a transparent and open process. It has also reduced wastefulness in public spending, saved time and bidding fees, and enabled bidders and contractors to be more proactive.

These were initial assessments by the Ministry of Planning and Investment, municipal departments, sectors and businesses which have taken part in a pilot e-bidding project, which was launched in mid-September.

E-bidding has been implemented on a trial basis at the Hanoi People’s Committee, the Vietnam Post and Telecommunication Group, and the Electricity of Vietnam via the portal http:// musamcong.mpi.gov.vn

At a conference to deploy regulations on e-bidding held in Hanoi on Sept. 22, Deputy Minister of Planning and Investment Dang Huy Dong stressed the importance of e-bidding in the e-government project.

“E-bidding is a major push to stimulate IT application in every field,” Dong said.

E-commerce and e-bidding in public procurement is an inevitable trend and indispensible way that many nations over the world are applying to build e-government.

In many ODA-funded projects in Vietnam, the donors have required beneficiaries to undertake e-procurement to ensure the transparency and effectiveness of the projects using their ODA.

Aware of the importance of this model, the Prime Minister, in September 2005, approved a master plan for the development of e-commerce in the 2006-2010 period.

He also assigned the Ministry of Planning and Investment to carry out a project to apply e-commerce in the government’s procurement.

In the framework of the project, a pilot e-procurement system for the government has been built on the basis of the integrated Korea Online E-procurement System (Koneps).

The system, which was optimized to fit Vietnam’s conditions, cost nearly 3.4 million USD, of which 3 million USD was contributed in the form of non-refundable aid by the Korean International Cooperation Agency (KOICA).

Related Articles

• Government promotes e-bidding
• PM lauds police for keeping public order
• Experience shared to make IPOs less exclusive
• Dengue epidemic grips Vietnam, claims 42 lives
• IFC: Vietnam needs to increase PPP to support economy