Wednesday, October 20, 2010

Hanoi to start urban railway construction

railway

Construction will begin on Sept. 22 on a pilot urban railway, running from Nhon in Tu Liem District to Hanoi Railway Station, as part of a largest ever public transport project in Hanoi, said Head of the municipal People’s Committee’s Office Nguyen Thinh Thanh.

The municipal People’s Committee requested Tu Liem District to finalize preparations, especially site clearance for the project before Sept. 16.

Under the plan till 2020, Hanoi will have five urban railway routes, linking the inner city with nearby urban centers of Bac Ninh, Vinh Phuc, Hung Yen and Thai Nguyen.

The Nhon-Hanoi Railway Station, the third route of the plan, has a total length of 12 kilometers, connecting the city’s west part to the downtown and the southern part.

The first route will run between Ngoc Hoi, Yen Vien and Nhu Quynh. It will link areas located in the northeast and the south of Hanoi with downtown.

The second route, Noi Bai-downtown-Thuong Dinh, is the backbone of the urban area at the present and in the future. It will connect with the railway route from Cat Linh, Hanoi to Ba La, Ha Dong.

The fourth route will run between Dong Anh, Sai Dong, Vinh Tuy, Thanh Xuan, Tu Liem, Thuong Cat and Me Linh. This route will connect urban development projects.

The fifth route will run between the southern part of West Lake, Ngoc Khanh and Lang-Hoa Lac to connect the downtown with urban areas located along Lang-Hoa Lac corridor.

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More counterfeit products flood Vietnamese market

The production and trade of fake products was becoming increasingly common, said Deputy Minister of Industry and Trade Nguyen Cam Tu.     


 Many officials agreed with the deputy minister that fake products were pervasive during a meeting held on Sept. 6 to review the Prime Minister's direction No 28/2008/CT-TTg to fight the production of counterfeit goods.    


Fake products are available across the country in urban centres and in rural markets.   


Counterfeit goods are produced with sophisticated methods and modern technology, which makes it hard for consumers to distinguish between fake and genuine products, reported the Vietnam Fake Production Prevention and Trademark Protection Association.   


Fake wine accounts for 20 to 50 percent of the market share.   


Popular methods of marketing fake products include producing counterfeit registered trademarks. Production can include the use of low-quality materials mixed with genuine products.   


Modern technology gives producers of fake goods the opportunity to sell well-forged products, including official-looking wrapping and labelling.   


However, the lack of a legal framework and technology to evaluate products, and ineffective co-operation between relevant ministries and agencies makes it difficult for authorised agencies to stamp out the production and trade of counterfeit products, according to the association.   


"The lack of comprehensive cooperation by relevant agencies and essential tools to conduct their work hinders the fight against counterfeit products," said Chairman of the Vietnam Anti-Fake Production and Trademark Protection Association Le The Bao.   


Meanwhile, businesses themselves paid little attention to protecting their products with registered trademarks, he said.   


The association proposed the Ministry of Justice to give Market Watch groups the power to punish violators to help improve the situation rather than keeping that capacity solely with chairmen of local People's Committees which is currently the case, he said.   


"Businesses should actively work with authorised agencies to protect their trademarks," Bao added.   


Deputy Minister Tu proposed the establishment of a decree on punishing producers and traders of fake products.   


It was also essential to review and finalise all legal regulations against counterfeit and low-quality products and supplement the regulations on prosecuting violators, he said.   


"Increasing information dissemination to raise public and business awareness about protecting their legal rights is also important," he added.   


During the first six months of the year, market watch forces nationwide handled nearly 41,000 violation cases, according to the Ministry of Industryand Trade./.     

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Firms fail to meet export orders due to labour shortage

Enterprises in HCM City's export processing and industrial zones are struggling to complete increasing orders because they are short of workers.


Textile, footwear, electronic assembly and seafood processing establishments typically receive more orders towards the end of the year.   


Nguyen Thanh Tung, director of the Job Opportunity Centre under the HCM City Export Processing Zones Authority (HEPZA), said enterprises needed 49,000 workers from now until the end of the year, but the centre can only meet 70 percent of this demand.   


Around 300 enterprises in textile, footwear and electronic assembly are facing severe labour shortages. The Tan Thuan export processing zone alone needs 10,000 workers badly.   


Besides non-skilled labour, enterprises are also having difficulties in finding suitable candidates for middle management positions, from commercial to production ones.   


"The middle management force accounts for 10 percent of recruitment needs and despite the low level of scarcity; there is aggressive competition between enterprises," Tung said.   


Tung said that to improve the situation that has been a constant headache for enterprises in recent years, Hepza will only accept new projects that deploy high technology, especially in mechanical, electrical and electronics.   


Experts have said that enterprises need to effect changes in their salary policies, improve other working conditions and apply technological innovations.   


The demand for labour is expected to rise with the city planning to build seven new IZs and expand existing IZs to cover an additional area of 3,000ha.   


Furthermore, the city also faces stiff competition from neighbouring provinces which have also opened new IZs.   HCM   City   now has three export processing zones and 10 industrial zones with 1,200 projects that employ 252,000 workers./.

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Markets snap six-day win streak

The VN-Index receded 1.16 percent on Sept.7 to close at 460.59 points, ending six consecutive sessions of gains on the HCM Stock Exchange.


The volume of trades reached just 52 million shares, totalling 1.3 trillion VND (66.7 million USD), with decliners outnumbering advancers by 112-73.


 Many blue chips lost ground, including Sacombank (STB), which ended the day off by over 3 percent; software giant FPT, which fell 1.35 percent; Eximbank (EIB), down 1.12 percent, and steel producer Hoa Phat Group (HPG), off 3.74 percent.


Saigon Securities Inc (SSI) – the most active share, with 2.2 million traded – plunged by 2.34 percent to just 29,200 VND (1.4 USD) per share.


On the Hanoi Stock Exchange on Sept.7, the HNX-Index managed to close flat at 135.65 points, while volume improved to 51.2 million shares, worth a combined 1.3 trillion    VND (66.6 million USD).


Among blue chip shares on the northern bourse, however, only Kim Long Securities Co (KLS) saw an advance, gaining 0.62 percent to close at 16,200 VND.


PetroVietnam Construction (PVX), the most-active share with 5.4 million traded, posted a decline of 0.81 percent.


Foreign investors were net sellers on both markets on Sept.7 by a net value of 28.8 billion VND (1.5 million USD)./.

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Tuesday, October 19, 2010

Vietcombank receives official approval to increase capital

bank

The partly-privatized Vietcombank on Tuesday received government approval to raise their charter capital by 33 percent to VND17.59 trillion (US$902 million).

The move aims to help increase the bank's capital adequacy ratio (CAR).

"The charter capital increase is very positive," said Vietcombank management board member Le Thi Hoa in a phone interview with Vietnam News.

Vietcombank, coded VCB on Ho Chi Minh Stock Exchange, is in the process of finalizing its financial prospectus to submit to the State Securities Commission next week with the hope of receiving approval by the end of this month.

Under the proposal, Vietcombank will issue additional shares to all existing shareholders in accordance with the ratio of 100:33 at the face value of VND10,000 per share.

"We hope that right after the increase, our CAR will increase to 9-10 percent from 8.45 percent and we will have more capital to do business," Hoa said.

Under the Circular No13 issued by the State Bank of Vietnam, commercial banks must have a CAR of at least 9 percent by the end of this month, which is said to challenge several banks.

In the past two months, Vietcombank cut stakes at Vietnam Eximbank and Gia Dinh Bank to 6.93 percent and 11 per cent to restructure their investment portfolios in an effort to raise their CAR by the end of the month.

Early last month, Vietcombank increased its charter capital to VND13.22 trillion ($678.15 million).

Fitch Ratings recently lowered Vietcombank's individual rating from D to D/E, removed the rating from Rating Watch Negative, and affirmed Vietcombank's Support Rating at 4.

Fitch said the downgrade reflected Vietcom-bank's substantially weakened balance sheet that arose from excessively strong loan growth and the fragile quality of loans.

Vietcombank's credit profile was said to be comparable to D/E-rated State-owned banks, even though the bank's loan to deposit ratio was among the lowest.

"That's just their business and their ratings are not always true," said a representative from the bank who asked to be unnamed.

A foreign credit rating service provider like Fitch does not have a full understanding of Vietnamese banks and their standards may fit more with foreign banks, the official said.

"Look at the market response to that news. Nothing happens and VCB shares are in good liquidity, it is just up and down as usual," said the official.

On Tuesday, VCB share closed down 1.6 percent with individual shares priced at VND37,400 VND each ($1.91).

The Hanoi-based bank, which remains more than 90.7 percent State-owned, posted a first-half profit of VND2.8 trillion ($145.8 million), up 7.3 percent against the same six months last year. Net income from non-credit services was up 15 percent to a total of VND475 billion ($24.7 million).

Vietcombank has increased its risk provision to 39.6 percent against the first half of last year to VND350 billion ($18.2 million) and as of June 30 has total assets worth VND246.3 trillion ($12.8 billion).

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China cassava processors seek partners

China cassava processors seek partners

More than 30 Chinese cassava importers and suppliers of cassava
processing technology met local businesses on Sept.7 in HCM City to
exchange information and seek business partners.


The meeting was arranged by the Trade Promotion Agency under the
Ministry of Industry and Trade, the China Trade Office in Vietnam ,
the China Cassava Starch Industry Association and the Vietnam-China
Trade Promotion Centre.


Cassava, an edible root, has
become an increasingly profitable export for Vietnam due to growing
demand in foreign markets, said Le Xuan Duong of the Trade Promotion
Agency.


Mainland China is the biggest importer of
Vietnamese cassava, accounting for 90 percent of the industry's export
volume, followed by the Republic of Korea and Taiwan , Duong
said.


With the huge demand for cassava used to produce
food, animal feed and ethanol-blended petrol, China every year needs
to import more than six million tonnes of cassava to meet its
production needs, he said.


Vietnam has more than
500,000ha under cassava cultivation and an output of more than nine
million tonnes of fresh cassava a year.


Of this, it annually exports more than four million tonnes after meeting domestic demand.


Vietnam 's cassava exports are mostly starch powder and dried chips, Duong said.


Last year, the country earned 800 million USD from cassava exports, double that of pepper shipment revenues.


However, Vietnam was only able to export 1.14 million tonnes of
cassava worth 307 million USD in the first six months of this year, down
52.4 percent in volume and 12.8 percent in value compared to the same
period last year.


Duong attributed this decline mainly to local traders setting prices too high, pushing importers to buy from other countries.


Wen Yu Ping, Chairwoman of the China Cassava Starch Industry
Association, said China was a huge market for cassava chips and
starch, but most cassava products in Vietnam were produced on a
small-scale, making it difficult for Chinese importers to purchase in
large volumes. She suggested that the Vietnamese Government regulates
standards for cassava export and reduce the number of brokers involved
in purchasing the products. These measures will facilitate import,
export activities between two sides, she said.


Until
recently, people were reluctant to grow cassava because they thought
that it caused soil degradation and generated low profit, said Tran Cong
Khanh, an expert from the Institute of Agricultural Science for
Southern Vietnam .


The situation has changed after the introduction of new cultivation techniques and high-yielding varieties, he added.


Cassava is now an important source of income for small farmers in many provinces, Khanh said.


Cassava area and output have increased strongly in the last decade,
from 234,000ha in 2000 to 560,000ha in 2009, with yields increasing from
8.6 tonne per ha in 2000 to 16.8 tonne per ha in 2009.


The crop has helped farmers in many areas escape poverty, Khanh said.


But the rapid development of cassava production has also raised
environmental concerns because the soil is exhausted after two or three
crops.


The sector therefore needs to adopt appropriate
cultivation techniques to maintain output and protect the soil, Khanh
cautioned. /.

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Vietcombank receives official approval to increase capital

Vietcombank receives official approval to increase capital

The partly-privatised Vietcombank on Sept. 7 received Government
approval to raise their charter capital by 33 percent to 17.59 trillion
VND (902 million USD).


The move aims to help increase the bank's capital adequacy ratio (CAR).


"The charter capital increase is very very positive," said Vietcombank
management board member Le Thi Hoa in a phone interview with Vietnam
News.


Vietcombank, coded VCB on HCM Stock Exchange, is in
the process of finalising its financial prospectus to submit to the
State Securities Commission next week with the hope of receiving
approval by the end of this month.


Under the proposal,
Vietcombank will issue additional shares to all existing shareholders in
accordance with the ratio of 100:33 at the face value of 10,000
VND per share.


"We hope that right after the increase, our
CAR will increase to 9-10 percent from 8.45 percent and we will have
more capital to do business," Hoa said.


Under the Circular
No13 issued by the State Bank of Vietnam , commercial banks must
have a CAR of at least 9 percent by the end of this month, which is said
to challenge several banks.


In the past two months,
Vietcombank cut stakes at Vietnam Eximbank and Gia Dinh Bank to 6.93
percent and 11 per cent to restructure their investment portfolios in an
effort to raise their CAR by the end of the month.


Early last month, Vietcombank increased its charter capital to 13.22 trillion VND (678.15 million USD).


Fitch Ratings recently lowered Vietcombank's individual rating from D
to D/E, removed the rating from Rating Watch Negative, and affirmed
Vietcombank's Support Rating at 4.


Fitch said the
downgrade reflected Vietcom-bank's substantially weakened balance sheet
that arose from excessively strong loan growth and the fragile quality
of loans. Vietcombank's credit profile was said to be comparable to
D/E-rated State-owned banks, even though the bank's loan to deposit
ratio was among the lowest.


"That's just their business
and their ratings are not always true," said a representative from the
bank who asked to be unnamed.


A foreign credit rating
service provider like Fitch does not have a full understanding of
Vietnamese banks and their standards may fit more with foreign banks,
the official said.


"Look at the market response to that
news. Nothing happens and VCB shares are in good liquidity, it is just
up and down as usual," said the official.


On Sept.7, VCB share closed down 1.6 percent with individual shares priced at 37,400 VND each (1.91 USD).


The Hanoi-based bank, which remains more than 90.7 percent State-owned,
posted a first-half profit of 2.8 trillion VND (145.8 million USD), up
7.3 percent against the same six months last year. Net income from
non-credit services was up 15 percent to a total of 475 billion VND
(24.7 million USD).


Vietcombank has increased its risk
provision to 39.6 percent against the first half of last year to 350
billion VND (18.2 million USD) and as of June 30 has total assets worth
246.3 trillion VND (12.8 billion USD)./.

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