Tuesday, January 11, 2011

EU, Vietnam say to start talks on free-trade pact soon

European Commission President Jose Manuel Barroso (R) shakes hands with Vietnam's Prime Minister Nguyen Tan Dung before their meeting at the EU Commission headquarters in Brussels on Monday - Photo: Reuters
BRUSSELS - The European Union and Vietnam will start negotiations on a free trade pact soon, EU and Vietnamese leaders said on Monday, fuelling Vietnamese hopes of being recognized by the EU as a free market economy.

Vietnamese Prime Minister Nguyen Tan Dung said free trade talks should also lead to an end to contentious EU import duties on Vietnamese-made shoes and greater access for Vietnam to the EU’s consumer markets under the EU’s Generalized System of Preferences for developing states.

“With the result obtained on Tuesday, the recognition by the European Union of Vietnam as a market economy ... will be agreed soon,” the Prime Minister told journalists after a meeting with Jose Manuel Barroso, President of the EU’s executive Commission.

The EU and Vietnam will launch free trade talks “as soon as possible”, Barroso said.

The two leaders met on the first day of a two-day summit of EU and Asian heads of state, which will address global financial governance issues, IMF voting rights, security issues, climate change and international trade.

Since talks for a global trade accord stalled at the World Trade Organization in 2006, the European Union has pursued bilateral trade accords, notably with Asian trading powers.

The bloc will this week sign its first bilateral free trade pact -- with South Korea -- and hopes to seal a deal with India this year.

With efforts frustrated for a regional trade accord with the ten-state Association of Southeast Asian Nations, the EU is considering individual pacts with Vietnam, Singapore and Malaysia.

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Monday, January 10, 2011

Vietnam creative industry still in infancy

HCMC – Vietnam’s creative industry has remained weak since local companies have yet to pay due attention to creativity as an essential part in the production process, industry experts said at a seminar in HCMC.

Edward Gomez, design consultant at multinational Global Sources, told the “How Designs Influence Business Results” seminar last week, “To draw customers’ attention, the products should have typical and creative designs as well as useful functions.”

But local enterprises have not concentrated much on this aspect.

Tran Ngoc Danh, managing director of Arts & Design School, conceded local companies had not invested much in pattern designs because it required all sorts of things but finished products could not compete with those made in China, Thailand and Malaysia.

Creativity in Vietnam has been growing in the fields of advertising, fashion design, publishing, music, television and radio, but not interior decoration and industrial product design.

According to a survey carried out last December by Synovate Business Consulting, a global market research company, the creative industry contributes 7% of the world’s gross domestic product (GDP) and forecast 3% growth per year.

The seminar was organized by the British Council Vietnam and the HCMC Investment and Trade Promotion Center following the successful seminar “E-Technology Applications in Advertising and Communications”.

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Expert calls for publicity campaign for GM crops

HCMC - The director of an institute of biotechnology in the Philippines insisted Vietnam have a proper campaign to inform of the public of the economic benefits of genetically modified (GM) crops and address concerns about this biotechnology.

“We need an information campaign to clarify the science behind the technology,” Reynaldo V. Ebora, director of the National Institute of Molecular Biology and Biotechnology at the University of the Philippines Los Banos College, told the Daily before he left Vietnam over the weekend.

Ebora was in Vietnam for about one week to share his know-how and experience in biotechnology at conferences entitled “Vietnam Biotech: Growing the Future” which were co-hosted by the U.S. embassy and the Ministry of Agriculture and Rural Development (MARD) in HCMC, Hanoi and Vinh Phuc.

Ebora said available analyses and scientific studies on food safety and proteins proved GM crops including corn were as safe for use as conventional products, and there had not been problems reported since the commercial introduction of agricultural biotech in 1996.

Sources showed biotech crops were planted on 134 million hectares in 25 countries and territories last year, making up 9% of the world’s agricultural land and 16 of them being developed nations.

More than 14 million farmers all over the world plant crops enhanced with biotech and approximately 90% of them live in developing countries. Last year saw soya produced in this way account for 77% of the global output of this crop, cotton for 49% and corn for 26%.

Despite the increasing output of biotech crops, Ebora said there were some confusing reports against the biotechnology. He explained there were concerns being raised because of toxin – a term used for a particular protein in the GM process.

“This is actually not a toxin to human, but it is a toxin to a specific group of insects,” Ebora said, furthering that this endotoxin was aimed at helping the crops be resistant to insects including the corn borer.

Farmers will have to count on insecticide spraying to control their crop quality if they do not grow biotech crops, and this is not good for the consumers and the environment. “We know that insecticide residue still remains in the plants and causes environmental problems,” Ebora said.

Ebora underlined the importance of properly addressing those aforesaid concerns in preparation for commercial production of GM crops after testing, as the Philippines did to encourage farmers to adopt the technology and the public to accept it.

There were concerns about GM crops, primarily from the consumers about safety when the Philippines introduced the biotech in 1999 and began commercial production in 2003. But the country has helped the public well understand the technology.

“The way we have done is to basically engage in dialogues.” Ebora said “The government and the technology developers have to exert extra efforts to explain what the technology is about and look at the science behind it.”

Ebora said prior to commercial production of GM crops in the Philippines, scientists of the Philippines had participated in a series of seminars to discuss with the non-governmental organizations about any concerns and to inform the public of the benefits of the biotech.

More farmers and producers in the Philippines have used the technology because they find a better alternative for their yields, which can grow up to 37% compared to conventional crops depending on the areas. This results in an increase in net income for them.

Higher yields and reduced production costs brought about the global net economic value of some US$9.2 billion to growers of biotech crops in 2008, with more than half of which going to farmers in developing countries.

Vietnam has trialed cultivation of biotech maize under the supervision of MARD, and this ministry expects to approve large-scale commercial fields next year.

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Tour operators await visa fee exemption advice

HCMC – Many tour operators are still waiting for guidelines from the tourism authorities regarding the exemption of visa fees for tourists following the approval of the Government, and have yet to send the good news to their overseas partners.

Under a new decision last week, the Government agreed to exempt visa fees for international visitors in the last quarter of this year as a way to further bolster the hospitality industry despite its better-than-expected performance so far. However, the incentive is extended to only those visitors who purchase package tours offered by international travel firms who have registered to join the national marketing campaign in 2010 named Vietnam – Your Destination.

Travel agencies said they would announce the incentive to partners right upon the guidance.

“We will send the news to partners when we receive the guidance from the Vietnam National Administration of Tourism (VNAT) because the similar rule last year was complicated for tourists,” said Hoang Huu Loc, deputy director of Saigontourist Travel Service Co.

Loc told the Daily on Monday that visa fee exemption would help the tourism sector woo more visitors as visitors can save US$25 per person. In last year’s program, many tourists catered to by Saigontourist, especially French and German travelers, had received the benefits.

“In a time of tough competition, overseas partners will be happy if we can lower tour prices but we need more time to promote the program to buyers,” he said.

Tu Quy Thanh, director of Lien Bang Travelink, has the same view with Loc but his company has informed overseas partners of the incentive.

“We don’t have time so we send the new rule to partners first and then update the guidance later,” he said.

According to him, it is difficult to woo visitors from long-haul destinations like Europe in the rest of the year because the incentive was announced too late.

“But it’s good news because we have more tourists to travel by groups. We will inform the partners as soon as possible,” said Nguyen Minh Quyen, deputy director of Ben Thanh Tourist Travel Service Center.

Loc from Saigontourist expects the company can make the procedures for tourists in the last two months of this year as it needs time to have the guidance from VNAT and feedback from overseas travel agents.

VNAT has reported more than 383,000 foreign visitors to the country in September, bringing the total number of foreign arrivals to over 3.73 million in the year to date, up 34.2% year on year. The country’s tourism expects to receive five million foreign visitors this year.

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Ha Bac nitrogen fertilizer plant to be expanded

Ha Bac Nitrogen Fertilizers and Chemicals Company inked a contract for
the upgrading and expansion of Ha Bac Nitrogen Fertilizers Plant in
Hanoi on October 5.


The contractors include Ngu
Hoan Science, Technology Joint Stock Limited Company, China Machinery
Import-Export Company and Vietnam Chemical Industry Design Joint Stock
Company.


According to Nguyen Anh Dung, the company’s
Director General, the 42-month project will be carried out at a cost of
373 million USD, part of which will come from the Vietnam Development
Bank and several commercial banks.


The plant’s
headquarters, along with branches located in Tho Xuong Ward, Bac Giang
City and Xuan Huong commune, Lang Giang district, Bac Giang province
will be upgraded and expanded, using modern eco-friendly and
energy-saving technologies from the Netherlands, Germany and Italy, he
said.


Once the Engineering, Procurement and
Construction (EPC) contract becomes effective, the plant’s annual
capacity will increase from 180,000 tonnes to 500,000 tonnes of urea,
better meeting the demands of the agricultural sector and export
markets, Dung noted.


At the signing ceremony, Deputy
Minister of Industry and Trade Nguyen Nam Hai underlined the
significance of the project, calling on Vietnam Chemicals Group to
partner with banks to ensure a prompt disbursement process./.

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Dragon fruit gains access to Chile, RoK markets

Chile and the Republic of Korea (RoK) have officially opened up their markets to Vietnamese dragon fruit.


President of the Binh Thuan Dragon Fruit Association Bui Dang Hung on
October 5 said only radiated or heat-treated dragon fruit was acceptable
for export to the two markets.


Also, dragon fruit
farms had to be checked and granted licences by the two countries’ plant
protection departments under the ministries of agriculture if they
wanted to export their products, he said.


Currently, businesses in the southern province of Binh Thuan are
engaging in the process of receiving licences from Chile and the RoK,
Hung added.


Early this month, out-of-season dragon
fruits in Binh Thuan province have been shipped to China at a high price
of 8,000 VND per kg.


A seminar is scheduled to
take place in the northern province of Lang Son to help Chinese and
Vietnamese businesses deal with difficulties when exporting dragon
fruits to China in small volumes.


Binh Thuan has
12,300 ha of dragon fruit trees, of which 2,100 ha have been grown under
VietGAP standards. The province’s main export market is Asian nations,
especially China, with 70 percent of market share, followed by the US
and European countries./.

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UK port businesses seek opportunities in VN

UK port businesses seek opportunities in VN

British seaport businesses are ready to help Vietnam obtain
breakthroughs in the industry and improve sea transport and management.


British
Ambassador to Vietnam Mark Kent made this statement at the seminar,
“UK-Vietnam Partnership in Ports” held in Hanoi on Oct. 5 during a
visit to Vietnam by a UK ports mission.


The seminar was
held by UK Trade and Investment (UKTI) in Vietnam with the
participation of nine leading businesses in UK port operations and
development, provision of equipment and maritime services, and
consultancies specialising in developing port infrastructure, coastal
and offshore engineering and finance and education.


Representatives
from UK businesses agreed that with over 3,200km of coastline and a
strategic location in the region, Vietnam has huge potential for
marine development. Vietnam is attracting interest from international
services and management companies who are seeking opportunities to
develop markets involving ports and take part in projects to expand
ports in Vietnam.


They said the UK, with its long and vast
history in port development and operation and its strength in global
markets, is well suited to assist Vietnam in this sector.


The
UK has accumulated significant experience in port design and
construction, providing marine safety, liquefied petroleum gas
facilities, equipment, consultancy services, project management,
training and financial, legal and logistical services.


Participants
agreed that the UK, the world’s leading country in revamping and
modernising port management, could help Vietnam create suitable
solutions for management of its developing port facilities.


Addressing
the seminar, Deputy Minister of Transport Nguyen Hong Truong said that
under the plan, from now till 2015, the Vietnamese government would give
priority to developing the infrastructure at Van Phong deep-water port
in central Khanh Hoa province and Lach Huyen international port in the
northern city of Hai Phong.


The UK port mission is on a
three-day visit to Vietnam from Oct. 4 to showcase the UK ’s
expertise in the port sector with the aim of highlighting the success of
the UK-Vietnam partnership in this key sector.


They visited
ports and worked with relevant agencies and sectors to study the
operations of Vietnamese ports and the nation’s port development
strategy, and to seek cooperative partnerships and investment
opportunities./.

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