Monday, January 3, 2011

Authorities fail to control resort boom: official

Authorities fail to control resort boom: officialBeaches in Vietnam have been destroyed by the construction of too many resorts and villas, according to an industry official who called the growth a failure of management.

Many beaches along the country have been “torn apart” and the problem is a headache for tourism authorities, said Nguyen Van Tuan, head of Vietnam's National Administration of Toursim.

Poor plannning of the projects has lead to an inappropriate use of public properties, Tuan said in an interview with Tuoi Tre newspaper on Friday.

As local governments are given the autonomy to license new resorts built on less than two hectares of land, many investors have tried to adjust the size of their projects so that they can be approved easily without seeking consent from the state government, he said.

Beautiful beaches have become overcrowded with resorts and there is not enough space for both the locals and tourists.

“Another consequence is that there can be hundreds of resorts on a long beach, but all of them are small and fail to meet international standards for luxury resorts,” he said. “It’s a huge waste of natural resources.”

The Vietnam National Administration of Tourism will review the construction of seaside projects, Tuan said. “Our viewpoint is that we have to address the weaknesses (in planning) to solve the problem.”

Than Thanh Vu, General Secretary of Vietnam's Tourism Property Association, said his association offered to act as an advisory body in the matter.

The development of resorts has, in fact, benefited the economy of several coastal provinces, including Binh Thuan, Quang Nam and Ba Ria-Vung Tau, Vu said.

However, he argued, the most important thing is to protect the interests of both investors and the community.

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Authorities fail to control resort boom: official

Authorities fail to control resort boom: officialBeaches in Vietnam have been destroyed by the construction of too many resorts and villas, according to an industry official who called the growth a failure of management.

Many beaches along the country have been “torn apart” and the problem is a headache for tourism authorities, said Nguyen Van Tuan, head of Vietnam's National Administration of Toursim.

Poor plannning of the projects has lead to an inappropriate use of public properties, Tuan said in an interview with Tuoi Tre newspaper on Friday.

As local governments are given the autonomy to license new resorts built on less than two hectares of land, many investors have tried to adjust the size of their projects so that they can be approved easily without seeking consent from the state government, he said.

Beautiful beaches have become overcrowded with resorts and there is not enough space for both the locals and tourists.

“Another consequence is that there can be hundreds of resorts on a long beach, but all of them are small and fail to meet international standards for luxury resorts,” he said. “It’s a huge waste of natural resources.”

The Vietnam National Administration of Tourism will review the construction of seaside projects, Tuan said. “Our viewpoint is that we have to address the weaknesses (in planning) to solve the problem.”

Than Thanh Vu, General Secretary of Vietnam's Tourism Property Association, said his association offered to act as an advisory body in the matter.

The development of resorts has, in fact, benefited the economy of several coastal provinces, including Binh Thuan, Quang Nam and Ba Ria-Vung Tau, Vu said.

However, he argued, the most important thing is to protect the interests of both investors and the community.

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Vietnam’s first biofuel product registers good sales

Vietnam’s first biofuel product registers good salesPV Oil, a subsidiary of state-owned Vietnam Oil and Gas Group, said sales of its biogasoline product has nearly tripled since its official launch in August.

E5 gasoline, a blend of 5 percent ethanol and 95 percent gasoline, has been welcomed by local consumers because it is cheaper and better for the environment, said Nguyen Thi Dieu Hanh, deputy sales manager at PV Oil.

Hanh said her company is currently supplying around 25,000 liters of the ethanol gasoline to the market every day, up from 8,000-9,000 liters a day in the early days.

E5 was first launched in Vietnam in September 2008 on a trial basis, but sales were halted six days later due to administrative problems. The government issued regulations on quality management of biofuel products last year, allowing PV Oil to begin sales of E5 gasoline officially in August.

Hanh said supply is now falling short of demand because production of the gasoline is still small-scale.

“We want to study more from the response of consumers as well as wait for any support policies from the authorities," she said.

Although PV Oil said it has expanded the distribution system since August, there are now only 29 gas stations that sell the product in large cities. 

Vietnam Oil and Gas Group plans to supply 240 million liters of E5 to local consumers in 2012 at some 4,300 stations.

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Retail sales soar 25% in first nine months

Customers shop at a supermarket in the northern province of Bac Ninh. September's retail sales revenue increased 2.93 per cent against the previous month to nearly VND134.9 trillion ($6.9 billion). — VNA/VNS Photo Tran Viet

Customers shop at a supermarket in the northern province of Bac Ninh. September's retail sales revenue increased 2.93 per cent against the previous month to nearly VND134.9 trillion ($6.9 billion). — VNA/VNS Photo Tran Viet

HA NOI — Total retail sales revenue of commodities and services in the first nine months of the year increased 25.4 per cent year-on-year to more than VND1,146 trillion (US$58.7 billion), according to the General Statistics Office (GSO).

September's revenue alone increased 2.93 per cent against the previous month to nearly VND134.9 trillion ($6.9 billion), the GSO said.

The trade sector reported a year-on-year revenue surge of 26.4 per cent to VND905.1 trillion ($46.4 billion), accounting for 79 per cent of the country's total sales revenue during the nine month period.

The hotel and restaurant sector saw a rise of 21.8 per cent to VND126.25 trillion ($6.47 billion). The increased figures for the tourism and service sectors were 37.4 per cent and 20.5 per cent to VND12.16 trillion ($625.6 billion) and VND102.6 trillion ($5.26 billion), respectively.

The surge's retail sales revenue was due primarily to the organisation of promotional programmes, including the Sales Promotion Month 2010 in HCM City, one of the country's largest shopping centres.

The HCM City's September programme saw the participation of nearly 600 businesses, mostly involved in garments and textiles, food and beverages, home utensils and tourism services, with roughly 2,000 sales promotion points. Roughly 1,500 products received 10-50 per cent reductions, 90 per cent of the products were high-quality Vietnamese goods.

According to the HCM City Department of Industry and Trade, sales of businesses taking part in the Sales Promotion Month increased 10-15 per cent compared to the same period last year. The number of consumers also rose sharply.

Director of the Ministry of Industry and Trade's Domestic Market Department Truong Quang Hoai Nam said foreign investors continued to consider Viet Nam a promising investment destination.

Meanwhile, global ratings agency AT Kearney predicted that Viet Nam's retail industry would grow over the next few years, and that consumer spending would rise above its current level of 70 per cent of household income.

The Ministry of Industry and Trade forecast that the country's retail sales and services revenue would soar 22 per cent from a year earlier to $78.9 billion. — VNS

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HCMC-based company signs Japan partner deal

The Japan Pile Corp has entered a strategic partnership with local firm Phan Vu Investment Corp, concluding its contract in Ho Chi Minh City.

The deal value, however, was not disclosed.

Under the contract, the Japanese company, which is listed on the Tokyo Stock Exchange, will become a shareholder in Phan Vu (PVI) with a 5-percent stake. It will be the first foreign institutional investor of PVI.

According to PVI's deputy general director Vo Thi Hien, her company has a charter capital of VND150 billion (US$75.5 million).

Last year it earned a net profit of almost VND60 billion from a turnover of VND690 billion.

As PVI's operations also include the pile foundation business, the Japanese partner will cooperate to create new pile products for the Vietnam market, including those with an anti-earthquake feature.

It will also assist in the management of the holding company model.

In the fourth quarter, Japan Pile Corp will organize training courses for PVI staff in Vietnam and receive trainees in Japan as well.

The Phan Vu Investment Corp is expected to list in the HCM Stock Exchange in the fourth quarter this year.

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Developers eye second-home market

Central Da Nang City, where a large number of high-end villas, houses and apartments will be put up for sale during the next few years aimed at buyers in the second-home market. — VNA/VNS Photo Huy Hung

Central Da Nang City, where a large number of high-end villas, houses and apartments will be put up for sale during the next few years aimed at buyers in the second-home market. — VNA/VNS Photo Huy Hung

HCM CITY — The Hoa Anh Dao Tourist Joint-Stock Company has begun construction on its Oceanami Resort&Luxury Home Project which contains 180 villas designated for the second-home market as well as a five-star hotel and other facilities.

Marc Townsend, managing director for real estate services firm CBRE, said a large number of high-end villas, houses and apartments would enter the second-home market over the next several years.

He said the supply pipeline of around 11,000 villas and 10,000 condos in the third quarter would represent a five and threefold increase, respectively, compared with current figures.

A majority of the properties are on the country's central coast.

The second-home market is still in its infancy, he said, adding that it had just resumed in the past few years but had drawn the growing attention of local and international investors.

He noted that the second-home market had grown more active in recent years because of interest shown by international resort operators and the higher rate of construction activity.

Several second-home projects have been up and running, including the Nam Hai in Hoi An that was launched four years ago. Nearly all of its 40 villas priced from $1.5 million have been sold.

Buyers of the villas were initially foreigners and fund companies, but now the majority are local residents.

"While the majority of buyers for this type of property tend to be local people from Ha Noi, representing 40 per cent of overall buyers, locals from HCM City are now catching up with them with their share of market transactions now standing at 30 per cent," he said.

The second-home is typically located in a beachfront resort or in the mountains in a managed community, and can be leased for additional income, or used for future retirement of the owners. — VNS

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VN firms may qualify for S Korea exchange listing

HA NOI — About 22 Vietnamese companies currently listed on domestic stock markets could qualify to list shares on Korean stock exchanges, according to an assessment by South Korean-invested Woori CBV Securities Co published at a conference here on Wednesday about raising capital on Korean markets.

Vietcombank, Vinamilk, real estate developer Hoa Phat Group, software giant FPT and the PetroVietnam Technical Services Co were among those that could list in South Korea, the assessment found. Vietnamese firms could benefit greatly by listing on the Korean market, said Lee Daegyu, the assistant director of listing promotions for the Korean Stock Exchange.

Besides raising capital through initial public offers, the companies could access investment opportunities in South Korea and more effectively market themselves to Korean investors, Lee said.

The Korean Exchange was working to attract more foreign companies to list, Lee added. In 2007-10, 15 foreign firms listing shares on the exchange, with 13 coming from China, one from Japan and one from the US.

The Korean Exchange has two separate markets, the Kospi and Kosdaq stock exchanges.

A foreign firm wishing to list on Kospi needs a total market capitalisation no less than US$16.6 million, while a listing on Kosdaq requires a firm to have capitalisation in excess of $7.5 million.

Since early 2009, the success of Government bond issues overseas has open more doors to local companies to raise capital on overseas markets. HCM City-listed property trader Vincom, for instance, has offered $80 million in convertible bonds overseas.

Convertible bonds could become the most favourable channel for Vietnamese companies to raise capital overseas, affirmed the director of Woori's HCM City branch, Lim Song Hak.

But the head of market development for Viet Nam's State Securities Commission, Nguyen Son, warned that regulations on securities offerings, listings and disclosure on overseas markets still remained difficult for Vietnamese firms.

The commission was drafting an instruction to support local firms seeking to list overseas, Son said.

Textile firm Mirae Joint Stock Co, currently listed in HCM City, is the only firm now actively seeking to comply with listing procedures for the Korea Exchange.

Mirae received permission from the Vietnamese Government in May 2009 to pursue the overseas listing. — VNS

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