Monday, January 24, 2011

Hungarian eco-disaster offers cautionary tale to Vietnam

Hungarian eco-disaster offers cautionary tale to VietnamThe recent aluminum mining accident in Hungary serves as a “warning” for Vietnam to tread carefully as it prepares to develop bauxite projects in the Central Highlands, an official of the state mining group said.

Vietnam is developing two bauxite mining and processing complexes in the region.

Duong Van Hoa, Deputy General Director of the state-run National Coal-Mineral Industries Group, said the projects will have eight sludge reservoirs, enough to store 12 years worth of toxic waste.

In case a reservoir faces technical problems, Hoa said, there will always be another one ready to store the toxic sludge.

Careful environmental precautions will be taken to ensure that the sludge is neutralized properly, he said.

Each reservoir can store a total two-year amount of sludge, and after three years the sludge will be toxin-free.

Three villages in southwest Hungary were flooded Monday with a wave of toxic red sludge from an alumina plant reservoir.

Environmental group WWF-Hungary said the main threat posed from sludge was its alkalinity, with a pH as high as 13. The sludge is a byproduct of refining bauxite into alumina.

Vietnam’s bauxite reserves are among the largest in the world at 5.5 billion tons, according to the Ministry of Natural Resources and Environment.

Sixty-six percent of the construction of Vietnam’s first bauxite mining project in Lam Dong Province, Tan Rai, has been completed, Vietnam News Agency reported Tuesday.

The project is scheduled for completion at the end of this year.

Construction at the second project, Nhan Co in Dak Nong Province, began in March.

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Hungarian eco-disaster offers cautionary tale to Vietnam

Hungarian eco-disaster offers cautionary tale to VietnamThe recent aluminum mining accident in Hungary serves as a “warning” for Vietnam to tread carefully as it prepares to develop bauxite projects in the Central Highlands, an official of the state mining group said.

Vietnam is developing two bauxite mining and processing complexes in the region.

Duong Van Hoa, Deputy General Director of the state-run National Coal-Mineral Industries Group, said the projects will have eight sludge reservoirs, enough to store 12 years worth of toxic waste.

In case a reservoir faces technical problems, Hoa said, there will always be another one ready to store the toxic sludge.

Careful environmental precautions will be taken to ensure that the sludge is neutralized properly, he said.

Each reservoir can store a total two-year amount of sludge, and after three years the sludge will be toxin-free.

Three villages in southwest Hungary were flooded Monday with a wave of toxic red sludge from an alumina plant reservoir.

Environmental group WWF-Hungary said the main threat posed from sludge was its alkalinity, with a pH as high as 13. The sludge is a byproduct of refining bauxite into alumina.

Vietnam’s bauxite reserves are among the largest in the world at 5.5 billion tons, according to the Ministry of Natural Resources and Environment.

Sixty-six percent of the construction of Vietnam’s first bauxite mining project in Lam Dong Province, Tan Rai, has been completed, Vietnam News Agency reported Tuesday.

The project is scheduled for completion at the end of this year.

Construction at the second project, Nhan Co in Dak Nong Province, began in March.

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Herd mentality adds to volatility of fluctuating real estate market

Construction of an apartment building in Ha Noi's Ha Dong District. Many incomplete apartments are bought by people who hope to re-sell their purchases at a profit. — VNA/ VNS Photo Tuan Anh

Construction of an apartment building in Ha Noi's Ha Dong District. Many incomplete apartments are bought by people who hope to re-sell their purchases at a profit. — VNA/ VNS Photo Tuan Anh

HA NOI — Vietnamese citizen Nguyen Hoai Nam bought a plot of land in Ba Vi District's Tan Linh Commune after hearing that the national administrative centre in Ba Dinh District would be moved to Ba Vi.

"I followed my friends and bought the property in the hopes that its price would increase much higher than what I had bought at VND800 million," Nam recalls.

Nam is not alone in his thinking.

It is not uncommon to see a number of investors pouring their money into buying land, following the advice of their relatives and friends.

Vice chairman of the Viet Nam Report Company Phung Hoang Co put forth a survey that found that nearly 62 per cent of the 500 questioned consumers in Ha Noi had bought real estate simply to resell it at a higher price.

"In many cases, herd mentality is a decisive factor to the fluctuating real estate market," said vice general secretary of the Association of Cities of Viet Nam Vu Thi Vinh.

She attributed the trend to insufficient information and a lack of understanding leading to many buyers who are then unable to analyse real changes in the market. Instead, they rely on the advice of acquaintances to buy land.

The Viet Nam Report survey also found that 44 per cent of buyers had invested their own money in buying property; 35 per cent borrowed from their friends and relatives and about 20 per cent used bank loans to buy property.

The desire to buy land has been boisterous in Ha Noi in the past months with projects spanning across the new urban areas of the capital's western region.

Analysts have attributed the trend to the expansion of the Lang-Hoa Lac Highway (now Thang Long Boulevard) and to an exhibition that focused on the capital's vision for development over the coming decades. The exhibition revealed that five satellite cities and the proposed Thang Long axis would link the Ba Vi region to the west of Ha Noi.

Former Vice Minister of Natural Resources and Environment Dang Hung Vo said the recent land fever in Ba Vi in particular and in the western region in general exposed the reality that both managers and investors were not professional.

"How can a project like Ba Vi, which is still waiting for planning approval, create an outbreak of land fever where several hundreds of investors rushed to buy land there?" said Vo.

He said land fever in Ba Vi did not follow market rules. Traders did not study information carefully but simply rushed into decisions because of the herd mentality.

Le Minh Hoang of the Ha Noi Real Estate Joint-Stock Company said most of the land fever actually deflated quickly because investors were short of information. And unfortunately, one negative consequence was wildly fluctuating real estate prices, he said.

Hoang added that the real estate market will be impossible to stablise if investors remain vague about information.

The problem, however, will hopefully be settled after the recent issuance of Government Decree 71, which imposes stricter rules on real estate investment.

Vo said the decree will help solve various issues, including the ways in which project developers raise capital from buyers and the regulations for the transfer of land-use rights, among others.

The decree is also expected to raise the market's transparency.

Vo said he hoped the decree would reject unprofessionalism and speculative investors who often spread misleading information to seek a profit. — VNS

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Power cuts expected for months to come

HA NOI — Viet Nam is faced with occasional power shortages during the next two or three months – and the situation is not forecast to improve in the new year.

Statistics from State-run Electricity of Viet Nam Group (EVN) show that in the first nine months of the year, total water in national reservoirs was 33.3 billion cubic metres less than at the same period last year.

This is sufficient to cause hydro-power shortages of up to 6 billion kWh.

Total electricity production from all sources last month amounted to just over 8.6 billion kWh, up 15 per cent on the same period last year.

Reduced water levels have left power authorities perplexed at the possibility of power shortages and cut-offs in the near future as well as shortages next year.

To deal with the issue, Prime Minister Nguyen Tan Dung has asked the EVN to regulate power supplies for production and consumption and to try and limit cutting supplies.

He said the sector should mobilise oil-fired and coal-fired power plants, bring newly-built plants into operation and promote the saving of power among the population.

Deputy general director of the EVN Dang Hoang An said hydro power normally produced more than 59 per cent of total needs.

He said while the sector might be able to meet demand for 25 billion kWh in the last three months of this year, an additional problem was the temporary closure of Ca Mau Gas Factory PA3 pipelines for maintenance.

Ta Van Luan, director of Yaly Hydropower Plant, said water levels at Pleikrong Reservoir were about 537m, compared to 570m for the same period last year.

He said he did not expect the situation to improve in the near future and that the plant had been operating only five hours a day, lower than full capacity.

A similar situation is being experienced at the largest Yaly Hydropower Plant, which has a water level of 490m, 25m lower than average level last year.

Luan said water flow into Yaly reservoir was 160cu.m a second, but its four turbines needed 420cu.m a second to reach full capacity.

He said in the first nine months of the year, the plant had run at half of its capacity because of the low water levels.

And that some water would be saved for next year. The plant is expected to supply 4 billion kWh this year, compared to its expected production of 5.5 billion kWh.

Reservoirs in the Central Highlands and the south are facing drought.

Le Van Quang, deputy director of Da Nhim-Ham Thuan-Da Mi Hydropower Company said the water level at Ham Thuan was only 39cm above the lowest level and supplied water for electricity for only eight hours a day.

He said the 400MW Tri An Hydropower Plant had received 4.1 billion cu.m, 2 million cu.m lower than at the same period last year. Its water level was less than a metre above the lowest level.

Director of Tri An Hydropower Plant Nguyen Kim Phuc said low water levels had reduced expected electricity production this year to 1-1.2 billion kWh, the lowest level in 23 years of operation. ­— VNS

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Nations co-operate to foster tourism

Tuan Chau Resort in the northern coastal province of Quang Ninh. The three Indochinese countries have made efforts to boost co-operation on promoting tourism in the region. — VNA/VNS Photo Thanh Ha

Tuan Chau Resort in the northern coastal province of Quang Ninh. The three Indochinese countries have made efforts to boost co-operation on promoting tourism in the region. — VNA/VNS Photo Thanh Ha

HCM CITY — As part of the HCM City International Travel Expo 2010, a seminar was held recently, themed "Three Countries-One Destination".

This year marks the strong recovery of Viet Nam's tourism, with a 30 per cent growth of international tourist arrivals year-on-year, according to La Quoc Khanh, deputy director of the HCM City Department of Culture, Sports and Tourism.

Tourism in Laos and Cambodia has also seen encouraging growth, Khanh added.

"This achievement comes from efforts of each country, and from successful co-operation, co-promotion and formation of tourist products among the three countries," he said.

"There is a trend of overland tours through Viet Nam, Laos and Cambodia," Cao Tri Dung, director of Vietnamtourism – Vitours, said. "Tourists want to experience new ways of travel."

However, this kind of travelling has met difficulties because of the high charge for the vehicle border pass, few services on the way, and no cooperation between local authorities.

"There is no rest stop from Viet Nam to Laos," Dung said.

He proposed that authorities lower border check fees, and invest in rest-stop shops along the routes as well as infrastructure.

At the seminar, Edouard George, chairman of Phoenix Voyages Company, presented information about vessels that would be used for cruises on the Mekong River from Viet Nam to Cambodia.

They include the three-deck L'Amant offering 12 wide cabins; three-deck Tonle Pandaw accommodating 66 guests; three wood cabin The Bassac; three-deck RV Indochine; three-deck Mekong Eyes; three-deck Mekong Feeling; and 46-room French colonial-style vessel RV La Marguerite.

In order to support tourism, Viet Nam Airlines has introduced an air network and new policy for flights from Viet Nam to Cambodia and Laos, as well as a new route to Myanmar.

The national carrier is expected to fly to 44 international destinations and 23 domestic destinations in 2020, said Hoang Viet Thang, deputy general manager of the passenger sales and marketing department of the Southern Regional Office of Vietnam Airlines.

The airline currently has flights to 26 international and 20 domestic destinations.

According to Thang, Europe is an important market for tourism in Indochina. The airline expects to open new routes and improve direct flights from HCM City and Ha Noi to the region.

"Indochina is the target tourism destination for Northeast Asia tourism, so new routes will be opened by 2015," Thang said.

The carrier intends to open direct flights to the US next year and wants to open new routes to the Southwest Pacific as well as increase the frequency of flights within Southeast Asia to attract tourists to new destinations in Indochina.

The carrier will also develop direct flights from Viet Nam's central Da Nang City to Indochinese countries, to increase tourism from the midlands of Viet Nam to the region, Thang added.

In addition, it will create a dense network throughout the country of 44 routes and 2,100 flights a week by 2015, making connecting times convenient for flights from Indochina.

The carrier also will improve cooperation with Cambodia Angkor Air, Lao Aviation, Myanmar carriers, Tourism Authorities in Viet Nam, Laos, Cambodia and Myanmar to promote destinations in Indochina.

Ministers' conference

"We encourage national travel agencies to hold information exchanges, share experience in tourism master plans, promotions and product development," said Tran Chien Thang, deputy minister of Culture, Sports and Tourism.

Thang spoke at the conference of four Tourism Ministers on the opening day of HCM City's International Travel Expo from September 30 to October 2.

Among the attendees were Thong Khon, tourism minister of the Kingdom of Cambodia; Somphong Mongkhonvilay, chairman of Lao National Tourism Administration; and Aye Myint Kyu, deputy minister of Myanmar Hotels and Tourism.

The four countries should support each other in holding forums on tourism investment, Thang said, adding that the countries should create favourable conditions for others to join in international tourism events to increase the number of the tourists among the four countries.

At the meeting, countries unanimously approved the plan to strengthen cooperation in educating human resources for tourism by standardising jobs and teaching programmes, and by offering scholarships and information exchange, Thang said.

In addition, the four ministers agreed to create improved conditions for transportation among the countries, and called for more foreign investment in tourism.

Also, they decided to hold the Conference of Four Tourism Ministers every two years. — VNS

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Project to boost exports to Africa

Rice, which accounts for roughly 40 per cent of the country's total export turnover to Africa, is packed for export at the HCM City Food Company. The Ministry of Industry and Trade has approved a project to help exporters better exploit the African market. — VNA/VNS Photo Dinh Hue

Rice, which accounts for roughly 40 per cent of the country's total export turnover to Africa, is packed for export at the HCM City Food Company. The Ministry of Industry and Trade has approved a project to help exporters better exploit the African market. — VNA/VNS Photo Dinh Hue

HA NOI — A project to boost exports to Africa, a location considered to be a potential market for Vietnamese goods in the wake of saturation in traditional markets, was ratified by the Ministry of Industry and Trade (MoIT).

Under the project, the ministry will select a number of large exporters to focus on Africa specifically and they will be grouped together to focus on exporting special products to key markets in the region.

MoIT will also ask the Government to introduce policies to encourage small- and medium-sized businesses to do more business in Africa.

Besides rice, apparel, coffee, footwear, electronics and construction materials, the ministry will also urge exporters to ship goods that are in high demand in Africa, such as household utensils, consumer goods, food, plastics, mechanical goods and medicine.

Africa is the world's third largest continent with 54 countries and a total population of more than 1 billion. As the continent's economy is forecast to expand by about 4.5 per cent this year, they will likely need to import various necessities and a greater volume than in the past.

Currently, Vietnamese products are present in 53 African countries. The key export markets are Egypt, South Africa, Angola, Nigeria, Ghana and Algeria.

Strategic gateway

Two-way trade between Viet Nam and Africa has grown by an average of 45 per cent per annum. Last year, Viet Nam's exports to Africa reached US$1.56 billion, an increase of 20 per cent compared to 2008, of which South Africa accounted for roughly 30 per cent.

Do Quang Lien, commercial counselor to South Africa, said Vietnamese businesses should strengthen their investment and exports to South Africa as it is the continent's largest economy and a strategic gateway for trade between the continent and other countries.

Viet Nam's main exports to Africa include rice, consumer goods, textiles and garments, electronics, plastic and wooden products, coffee, motorbikes, dairy products, seafood and processing foodstuff. Currently, rice accounts for roughly 40 per cent of Viet Nam's total export turnover to Africa and it is forecast that the product will remain at the top of Viet Nam's exports to Africa for the next five years.

Although trade between the two countries has increased, Vietnamese exporters to Africa are still facing challenges, including incomplete legal policies, poor infrastructure, an undeveloped banking system and a lack of information about African countries in general.

Apart from Africa's remote location, which bumps up transport costs, the difficulty in making payments is a daunting one. Le Thi Thai Hoa, deputy director of the Ministry of Industry and Trade's African Market Department, said several African countries were saddled by outdated payment facilities, which deter Vietnamese enterprises from penetrating this market.

To deal with this, Hoa suggested businesses should actively contact her department and Viet Nam's trade offices in African countries to seek help, avoid fraud and minimise risk.

This year, Viet Nam targeted a 3-per-cent increase to $1.6 billion in export revenue to Africa. — VNS

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Malaysian firms eye investments in VN

HA NOI — Viet Nam is a new strategic market for Malaysian businesses to invest in franchises, the Malaysian Franchise Association (MFA) has announced.

At a seminar held in Kuala Lumpur on Wednesday, MFA Managing Director Sofia Leong Abdullah praised Viet Nam's potential, a country with a population of 87.9 million and ranked third in economic growth across the world.

Viet Nam's purchasing power had also rapidly increased, partly thanks to US$20 billion in foreign remittance, he said, noting that the country's franchise market was strongly developing with average turnover increasing by 50 per cent each year.

This trend was expected to last till 2012.

The two Malaysian brands that already operate in Viet Nam were Setia and Berjaya, he added.

During talks with reporters after the seminar, Abdullah said the MFA would work with Perbadanan Nasional, a leading agency employed by the government to develop the country's franchise industry, and the Malaysia External Trade Development Corporation (Matrade) to promote Viet Nam's potential market to Malaysian businesses.

The MFA intended to bring seven or eight local franchises to Viet Nam by the end of this year, he said, adding that the number would increase in 2011.

According to Abdullah, demand for franchises in Viet Nam can be seen in the retail sector, beverages, restaurant services, fashion and education. — VNS

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