Illegal trade in tobacco continues despite strict ban

HA NOI — Illegal tobacco continues to flood the domestic market despite a crackdown on smuggling that began one month ago, according to local media.

In accordance with Decree No 76, those who smuggle, trade or store less than 1,500 illegal cigarette packs will be fined up to VND100 million (US$5,200) and prosecuted if they are in possession of a larger quantity.

Smokers can still easily purchase illegal tobacco at small shops along many streets in Ha Noi, including Hang Hanh, Hang Buom and Nguyen Sieu, according to municipal market watchers.

Illegal tobacco vendors have been forced to operate more carefully to cope with the crackdown.

Head of Market Watch Team No 2 in Ha Noi Luu Bach Chien said several tobacco shops that were selling illegally-imported tobacco purchased small quantities, which were difficult to detect.

The Ha Noi Market Watch Department has busted 17 smuggling operations, seizing more than 2,300 packs, since early September.

HCM City's Market Watch Team 5B busted an operation at Ta Uyen-Pham Huu Chi crossroads and seized 8,890 cigarette packs in late September.

Deputy head of the Ha Noi Market Watch Department Vuong Chi Dung said the new ban would help discourage smugglers.

However, Dung said it was difficult for officials to identify and punish tobacco magnates because illegal cigarettes are often traded by vendors or sold at small shops that purchase small quantities.--VNS

According to the Viet Nam Tobacco Association, illegal cigarettes make up 20 per cent of the domestic market share, which accounts for VND3-3.5 trillion ($153-178 million) in losses from the State budget because the cigarettes are not taxed. — VNS

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Measures urged to stabilise prices

HA NOI — Prime Minister Nguyen Tan Dung has called for greater implementation of measures to stabilise prices in the final months of the year.

Directive No1875/CT-TTg, released on Monday, called on ministries, agencies and municipal and provincial authorities to implement strategies to stabilise the market and boost production, in accordance with Decree No18/NQ-CP, dated April 2010. The move is designed to ensure the country's growth rate reaches 6.5 per cent, while the consumer price index does not rise above 8 per cent.

According to the leader, the economy, which typically suffers during the final months of the year, will also have to weather capital shortages, rises in the price of essential goods, power shortages and potential animal epidemics.

The directive regulates that ministries of Industry and Trade, Agriculture and Rural Development, Health, and Construction should complete and release production-development plans, as well as strategies for distributing essential goods such as petrol and gas, fertiliser, building steel, cement, foodstuffs and medicines in the fourth quarter.

The Ministry of Industry and Trade should review production capacity and supply to ensure there are sufficient quantities of goods for production and consumption from now to the first quarter of 2011.

Finance Ministry agencies are required to enhance supervision of commodity prices – particularly medicines, milk products, building materials and gas, while stabilising the price of electricity and coal sold to the cement industry and fertilisers and paper producers.

The State Bank of Viet Nam should promulgate policies that allow commercial banks to quickly withdraw money from circulation to reduce price hikes. Meanwhile, food suppliers should ensure there is enough food, particularly in cities, industrial zones, populous areas and those vulnerable to natural disasters, the directive said. — VNS

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State to develop fertiliser plan

Fertiliser is packaged at a plant in HCM City's Cu Chi District which supplies fertilisers for agricultural production in southern provinces. Fertilisers are seen by the Government as a strategic product. — VNA/VNS Photo Hoang Hai

HA NOI — The control of fertiliser production and distribution systems, to be approved this month, is expected to benefit both farmers and businesses.

Speaking at a conference on Tuesday outlining fertiliser production development for the next 10 years, the Deputy Minister of Industry and Trade (MIT), Nguyen Hai Nam, said fertiliser was a strategic product that helped ensure national food security.

Although the Government had co-operated closely with the Viet Nam Fertiliser Association in planning fertiliser production and quality, farmers were still faced with shortages and "price fever" when demand soared before planting, said Phung Ha, head of MIT's Department of Chemicals.

Secretary of the association Nguyen Hac Thuy said there had been no clear development strategy for the fertiliser industry and that demand was unpredictable.

According to the association, farmers lose VND1.2 trillion (US$60 million) each year due to the low-quality and fake fertiliser products.

This year, the nation's demand for fertiliser is forecast to reach 9.1 million tonnes, but domestic production can satisfy only 60 per cent of this.

A report from An Giang University's Economics Faculty claims farmers have to buy fertilisers at prices 30-40 per cent higher than those offered by producers. They often have to buy low-quality products from small firms because State authorities can only supervise large fertiliser companies.

Ha said one of the reasons fertiliser prices were often unstable was that distribution systems developed spontaneously. Products came to farmers through many middlemen.

Ha said when planning was approved, fertiliser distribution systems would develop based on the establishment of agricultural economic areas, demand in each area, the characteristics of local economic activities and farmers' purchasing practices.

Under the plan, from now to 2015, fertiliser distribution centres will be set up in Lao Cai, Phu Tho, Bac Giang, Hai Duong, Ninh Binh, Nghe An, Da Nang, Binh Dinh, Dac Lac, Lam Dong, Long An, An Giang, Can Tho and Kien Giang.

Phan Dinh Duc, general director of PetroVietnam Fertiliser and Chemicals Joint Stock Company, suggested that small-scale producers who did not have the financial capacity to build their own distribution systems could join those of larger companies.

Ha said to make planning more efficient, State agencies should change their ways of management. He added that producers must be granted certificates setting out conditions for business required by the Ministry of Industry and Trade. Otherwise they should not be allowed to trade.

He said this would help weed out small-scale companies using old technology and those producing low-quality fertiliser.

Head of the Ministry of Agriculture and Rural Development's Planting Department Nguyen Tri Ngoc said management of fertiliser distribution systems should be placed in the hands of one authority to prevent overlapping among ministries and agencies.

Tri added that production standards should be completed to enable management of the industry to be tightened. — VNS

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Business confidence index rises

Manufacturing super light bags for pupils in Ladoda Production Service Trading Leather Products Co. — VNA/VNS photo Tran Viet

HA NOI — The business confidence index (BCI) rebounded in the third quarter this year after it increased three points over the second quarter and 37 points against the same period in 2008.

"This survey attracted the participation of 262 companies from 11 primary sectors and industries in Viet Nam," said a representative from WVB FISL. "More than 70 per cent of the companies are small- and medium-sized enterprises."

With respect to current economic conditions, about 70 per cent of the participants thought overall economic conditions had improved compared to one year ago. About 25 per cent of the participants agreed that there was no change with the current economic conditions, and 4.2 per cent said that current economy conditions had not improved.

About 84.35 per cent of the participants said they believed the economy would continue to improve and 15.65 per cent said they believed there would be no change.

Optimistically, about 72 per cent of the individuals questioned said they believed their enterprises' profits would likely increase during the next 12 months.

As many as 60 per cent of the participants said they expected their employment and investments in fixed assets to increase.

During the last quarter, the number of businesses that were concerned about their revenues and profits was up 0.06 per cent and 1.96 per cent, respectively.

The survey also showed that many domestic businesses were still concerned about inflation and fluctuations in the exchange rate between the US dollar and Vietnamese dong.

Most participants surveyed said they believed foreign investors would focus on four major areas including real estate, consumer product manufacturing, information technology, and mining.

Nearly 20 per cent of them believed that foreign investors would pour money into the information and technology sectors, while 31.27 per cent said the real estate sector would receive more investments.

The survey also found that many businesses believe that the tourism, footwear, garment and pharmaceutical sectors will continue to gain momentum and receive increased investments in the future.

The quarterly survey was conducted by the Viet Nam World Vest Base Financial Intelligence Services (WVB FISL) and PetroVietnam Finance Investment and Consultancy Company (PVFC Invest). — VNS

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Air travel surges 20% in 9 months

HA NOI — The aviation market in the first nine months saw a year-on-year increase of more than 20 per cent in the number of air travel passengers, estimated the Civil Aviation Administration of Viet Nam.

The administration estimated that roughly 15 million passengers went through the country's airports in the first nine months of this year, of which Vietnam Airlines, Jetstar Pacific and Viet Nam Air Service Co (Vasco) accounted for more than 11 million.

In the first nine months, the administration also estimated that roughly 340,000 tonnes of goods were transported via air, an increase of 36 per cent over the same period last year.

Industry insiders forecast the country's aviation market in the last quarter would continue to surge due to an increased number of flights licensed by the aviation authorities for foreign airlines including Turkish Airlines, Poland's LOT and Qatar Airways.

Vo Huy Cuong, director of the administration's Air Transport Department, attributed the steady growth to the continuing strong expansion of the domestic segment backed by flagship carrier Vietnam Airlines.

Cuong said that Vietnam Airlines and its subsidiary Vasco still accounted for the lion's share of around 80 per cent of the domestic market while the rest was covered by Jetstar Pacific.

With the introduction of Air Mekong and Blue Sky Air recently, which lifts the number of operational airlines in the country to nine, it was expected that the competition in the domestic aviation market would increase.

The administration expected that the country's overall aviation market would grow roughly 20 per cent in 2010, higher than the 14 per cent figure it had projected earlier this year, thanks to more domestic services and a significant increase in the number of international visitors.

The administration's statistics showed that roughly 26.2 million passengers and 445,800 tonnes of cargo were transported by air last year, four times higher than in 2000. — VNS

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Enterpirses urge fertiliser development strategy

Fertiliser prices have increased following the appreciation of the US dollar against the Vietnamese dong as well as higher prices on the global market

There has been no clear development strategy for the fertiliser industry and that demand is unpredictable, has said the industry association.

 The control of fertiliser production and distribution systems, to be approved this month, is expected to benefit both farmers and businesses.

At a recent conference outlining fertiliser production development for the next 10 years, the Deputy Minister of Industry and Trade (MIT), Nguyen Hai Nam , said fertiliser is a strategic product that helps ensure national food security.

Although the Government has cooperated closely with the Vietnam Fertiliser Association in planning fertiliser production and quality, farmers are still faced with shortages and "price fever" when demand soars before planting, said Phung Ha, head of MIT's Department of Chemicals.

Secretary of the association Nguyen Hac Thuy said there has been no clear development strategy for the fertiliser industry and that demand is unpredictable.

According to the association, farmers lose VND1.2 trillion (US$60 million) each year due to the low-quality and fake fertiliser products.

This year, the nation's demand for fertiliser is forecast to reach 9.1 million tonnes, but domestic production can satisfy only 60 percent of this.

A report from An Giang University's Economics Faculty claims farmers have to buy fertilisers at prices 30-40 percent higher than those offered by producers. They often have to buy low-quality products from small firms because State authorities can only supervise large fertiliser companies.

Ha said one of the reasons fertiliser prices are often unstable was that distribution systems develop spontaneously. Products come to farmers through many middlemen.

Ha said when planning is approved, fertiliser distribution systems will develop based on the establishment of agricultural economic areas, demand in each area, the characteristics of local economic activities and farmers' purchasing practices.

Under the plan, from now to 2015, fertiliser distribution centres will be set up in Lao Cai, Phu Tho, Bac Giang, Hai Duong, Ninh Binh, Nghe An, Da Nang, Binh Dinh, Dac Lac, Lam Dong, Long An, An Giang, Can Tho and Kien Giang.

Ha said to make planning more efficient, State agencies should change their ways of management.

 He added that producers must be granted certificates setting out conditions for business required by the Ministry of Industry and Trade. Otherwise they should not be allowed to trade.

He said this would help weed out small-scale companies using old technology and those producing low-quality fertiliser.

 

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Aviation business sees 20 percent rise

Photo: AFP

Industry insiders forecast the country's aviation market in the last quarter will continue to surge due to an increased number of flights licensed by the aviation authorities for foreign airlines including Turkish Airlines, Poland 's LOT and Qatar Airways.

The aviation market in the first nine months saw a year-on-year increase of more than 20 percent in the number of passengers, estimated the Civil Aviation Administration of Vietnam.

The administration estimated that roughly 15 million passengers went through the country's airports in the first nine months of this year, of which Vietnam Airlines, Jetstar Pacific and Vietnam Air Service Co (Vasco) accounted for more than 11 million.

In the first nine months, the administration also estimated that roughly 340,000 tonnes of goods were transported via air, an increase of 36 percent over the same period last year.

Vo Huy Cuong, director of the administration's Air Transport Department, attributed the steady growth to the continuing strong expansion of the domestic segment backed by flagship carrier Vietnam Airlines.

Cuong said that Vietnam Airlines and its subsidiary Vasco still account for the lion's share of around 80 percent of the domestic market while the rest is covered by Jetstar Pacific.

With the introduction of Air Mekong and Blue Sky Air recently, which lifts the number of operational airlines in the country to nine, it is expected that the competition in the domestic aviation market will increase.

The administration expects that the country's overall aviation market will grow roughly 20 percent in 2010, higher than the 14 percent figure it projected earlier this year, thanks to more domestic services and a significant increase in the number of international visitors.

The administration's statistics showed that roughly 26.2 million passengers and 445,800 tonnes of cargo were transported by air last year, four times higher than in 2000.

Vietnam Airlines has recenty launched online check-in, reducing he pressure at airports at peak times.

The carrier has launched its web check-in service for international flights enabling passengers flying out of Hanoi and Ho Chi Minh City, Vientiane in Laos, Phnom Penh and Siem Reap in Cambodia, Seoul and Pusan in South Korea, and Kuala Lumpur in Malaysia to check in online.

The service will be available from 20 to four hours before departure.

Passengers have to print their boarding pass on A4-sized paper to complete the check-in and be present at the counter at least 45 minutes before the flight’s departure.

But passengers who want to check in luggage, have requested for special services, or have discount tickets cannot avail this service.

The carrier launched a web check-in service on domestic routes in August last year for travel from Hanoi, Da Nang, and HCMC.

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