Tuesday, January 4, 2011

Hanoi birthday bash fails to enthuse travel agents

Hanoi birthday bash fails to enthuse travel agentsIt has been the most anticipated event of the year, but travel agents and domestic tourists do not seem to be caught up in the enthusiasm as Hanoi’s 1,000th anniversary celebration gets underway today.

There has been no increase in prices of tours, but travel agents are concerned about difficulties in transportation because of the ban on vehicles on several streets. They are also worried about the traffic jams likely to occur during the ten-day festivities.

Nguyen Cong Hoan, deputy director of travel agent Hanoi Redtour, said: “We are not providing tours to Hanoi for this event.”

It was difficult to work out plans for the tours because the event’s detailed program was declared too late, he said.

“The most difficult part for tours at this time is not booking air tickets or hotels, but vehicles to transport visitors,” he said.

The Hanoi Transport Department did not announce the list of streets where vehicles will be banned on the festive days until September 20, while most travel agents have to book hotels months earlier.

Many hotels are located on banned streets, so it would be impossible to get there by car. Also, agents could not cancel bookings they’d already made to seek other hotels with better access and facilities for their customers.

Other shortcomings in organizing the festival have also puzzled travel agents. Hoan said: “We don’t know which programs (of the event) visitors can attend, or where to buy tickets for them.” He was also concerned about taking care of his customers as a huge number of visitors will rush to Hanoi at this time.

Duong Mai Lan, head of the market research and development bureau of travel agent Vietravel, admitted that the number of visitors booking tours on the occasion of the festival is not big. Her firm is now still selling tours for local customers to Hanoi during the festival.

Due to the ban on vehicles in some routes, and difficulties in booking hotels, the firm has to change some programs in tours to Hanoi during this event, Lan said. “We may book hotels in Ha Long Town instead of Hanoi as previously planned.”

Nguyen Ngoc An, who is in charge of domestic tours for travel agent Fiditour, said they had not focused on attracting tourists for the occasion, partly due to difficulties in booking low-cost air tickets, and transportation of customers in vehicle-banned streets.

The firm has received more than 100 customers for Hanoi tours during the event, he said.

Some people in Ho Chi Minh City have said they are fed up of the traffic jams in their own city and do not want to experience the same again in Hanoi.

The director of a travel agency said it was not peak tourism season right now. There are a few families booking tours, because children have to go to school, he said.

Plenty of room

Hanoi expects to welcome 700,000 to 800,000 local and foreign visitors during the event, according to the Hanoi Department of Culture, Sports and Tourism.

However, even given this influx, there has been no shortage of hotel rooms for visitors and prices have not increased by much.

Lan of Vietravel said most hotel rooms had been reserved months ago, so there was no increase in the prices.

A representative of the Hoa Binh hotel said: “The possibility of hotel room shortage is very low. We have many rooms vacant right now.”

To serve visitors for the occasion, Hanoi has garnered an additional 4,000 hotel rooms. The city now has ten five-star hotels, several dozen four or three-star ones, and many mini hotels.

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Monday, January 3, 2011

Vietnam reaffirms inflation control plan

Vietnam reaffirms inflation control planVietnam will continue to tighten control over consumer prices through the end of the year as the country aims to keep inflation at 8 percent.

At a press conference held on Thursday, Minister Nguyen Xuan Phuc said it will be necessary to keep an eye on milk and medicine prices in particular.

Phuc said the government believes it can keep inflation under its target maximum, but that does not mean there is no need to maintain vigilance.

Prime Minister Nguyen Tan Dung has ordered drastic measures to be taken to keep prices stable and ensure enough supplies of consumer goods, Phuc said.

Consumer prices in Vietnam climbed 8.92 percent in September compared to a year earlier, according to figures released last week by the General Statistics Office in Hanoi.

Meanwhile, the Asian Development Bank on Tuesday forecast that Vietnam’s inflation this year will reach 8.5 percent.

Vinashin’s restructuring

Talking to the press on Thursday, Phuc said state-owned shipbuilder Vinashin has raised US$75 million by selling five ships. The group planned to sell another 35 ships for a total of around $160 million by year's end.

He said the 70,000 jobs at Vinashin have been secured. He also said new blood will be brought into the company, including a new chairman.

Vietnamese police have arrested five former Vinashin officials amid a financial investigation in to the company, which teetered on the verge of bankruptcy this summer. Pham Thanh Binh, the company’s former chairman and chief executive officer, was arrested in August.

Deputy Transport Minister Nguyen Hong Truong announced that the government has lent $3 million from its bond proceeds to Vinashin so that the company could repay the remaining debt owed to France’s Natixis Bank.

The loan did not come from the $1 billion 10-year bond issued in January as reported by local media, he said.

Truong also said many Japanese and Taiwanese investors have expressed interest in buying Vinashin’s factories, but so far no official purchase offers have been made.

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EVN Telecom speeds up privatization

EVN Telecom speeds up privatizationEVN Telecom, a subsidiary of state-owned Electricity of Vietnam, plans to complete its share selloff this year as the company is facing financial difficulties, news website VnExpress reported Friday.

The phone company will sell up to 30 percent of its shares in an initial public offering and at least 20 percent to foreign strategic partners, the report said. Foreign candidates have to meet certain requirements including experience in operating 3G networks.

VnExpress said two foreign institutional investors and two local companies have offered to become EVN Telecom’s partners.

The report cited an unnamed source as saying that EVN Telecom has had to speed up the process of equitization (the term for privatization in Vietnam) because the company faces financial difficulties and increased competition from other mobile phone carriers.

Vo Quang Lam, deputy general director at EVN Telecom, said the plan to sell shares to foreign investors has been approved by the government.

As negotiations are ongoing, the names of the prospective investors cannot be announced now, Lam said.

Three local telecom companies have partnered with foreign firms – Hanoi Telecom, S-Fone and Gtel. However, the partnerships are unstable and likely to fail, VnExpress noted.

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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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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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