Speculators cause domestic gold hike

The price of gold on the local market has risen due to possible
speculation rather than a supply shortage, according to Nguyen Van Giau,
governor of the State Bank of Vietnam (SBV).

The global gold price set new records in the past few days, as did the domestic gold market.

The SBV and the Vietnam Gold Association had kept a close watch on the
market in the last few days, and discovered there was no shortage of
gold, Giau said, adding that speculation was possibly the cause for the
price rise.

Domestic gold prices in August and the
first half of September were lower than the world price. But currently
the domestic price is 400,000 VND per tael higher than the global price.

The SBV was working with other agencies, including
the police and market management, to discover the reasons behind the
price hikes.

"With this kind of sensitive item, our
policy is not to completely ban gold imports, but gold companies are not
permitted to import any volume they want," Giau said.

"We are establishing a management framework for gold trading and
imports so that it is suitable with a market economy. We will collect
ideas from ministries and industries when we complete it."

Nguyen The Hung, general director of the Vietnam Gold Investment and
Trading Company, said the gold price on the domestic market would be
equal or even lower than the world price if the SBV permitted gold
importers to import gold.

However, the Government
has stopped granting permits for gold imports, which indicates that it
no longer considers gold an essential item, according to an expert.

In addition, the higher gold price had not affected people's lives
since few people conducted their transactions in gold, he said.

The gold price on the domestic market on Sept. 30 morning fell to
31.15 million VND (1,597 USD) per tael (1.2 ounces) after it reached a
record of more than 31.3 million VND (1,605 USD) per tael on Sept. 29,
following an upward trend in global gold prices.

On
Sept. 29, most gold shops in HCM City raised their price by more
than 700,000 VND (21.3 USD) over the Sept. 28 price to 31.25-31.36
million VND per tael.

On Sept. 30 morning, SBJ gold
was buying and selling at 31.15 million VND (1,597 USD) and 31.18
million VND (1,599 USD) per tael, respectively.

Sai
Gon Jewellery Holding Co on Sept. 30 bought the precious metal at 31.14
million VND and sold it at 31.18 million VND per tael, a reduction of
130,000 – 170,000 VND against Sept. 29.

The global
gold price on Sept. 29 reached an all-time high of 1,313 USD an ounce on
speculation that a global economic recovery would stoke inflation.

In Asia , the metal slightly fell on Sept. 30 morning to 1,309 USD an ounce.

The weakening of the US dollar on the world market has also contributed to the gold price hike, analysts have said./.

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Expo promotes regional tourism

A three-day annual International Travel Expo aimed at boosting 3CODE
(Three Countries One Destination) tourism programme covering Vietnam ,
Laos and Cambodia opened in HCM City on Sept. 30.

Held at the Saigon Exhibition and Convention Centre in District 7, the
event attracted 155 "buyers" from 35 countries and 173 sellers
(enterprises and departments offering products and services).

Besides buyers from traditional markets, organisers aimed to explore
new markets in North Europe, Spain , Italy and the US .

"This year's expo welcomes Myanmar , preparing to form the new
4CODE," said La Quoc Khanh, deputy director of the HCM City Department
of Culture, Sports and Tourism.

"We hope to see all
the six countries of the Greater Mekong Subregion in the coming expo, to
join hands and make the region more interesting in the eyes of
international tourists," Khanh said.

Vietnam 's
national flag carrier as well as the official carrier of the event,
Vietnam Airlines, offered up to 85 percent discounts on selected
international routes.

The carrier also introduced its "Welcome Christmas in Europe " tour packages at attractive prices.

Thailand organised a conference introducing its Amazing Thailand
campaign. The Tourism Authority of Thailand (TAT) targets 14 million
arrivals by the end of this year, and 15.5 million international tourist
arrivals next year.

TAT and the Vietnam National Administration of Tourism will hold a working section on Sept. 10./.

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Oil rig safety laws need boosting

Bach Ho oil rig in the southern province of Ba Ria-Vung Tau. Offshore oil and gas operations will be enhanced if tighter safety laws and regular inspections are conducted. — VNA/VNS Photo Ha Thai

HCM CITY — Viet Nam needed to strengthen risk-control aspects of several laws as part of efforts to enhance the safety of offshore oil and gas operations, speakers said at a seminar held in HCM City yesterday.

They also highlighted the need for strict, regular inspections and annual maintenance of all industry facilities.

The seminar, held by the Viet Nam National Oil and Gas Group (PetroVietnam), drew the participation of senior Government officials and representatives of oil and gas joint venture companies.

Do Van Hau, deputy director of PetroVietnam, recalled the explosion on British Petroleum's Deepwater Horizon rig in April that killed 11 workers and led to the biggest oil spill disaster in world history, dumping 16,000cu.m of crude oil into the Gulf of Mexico, describing it as a wake-up call.

It prompted State management agencies as well as the domestic oil and gas industry to work harder and ensure safety in all activities related to oil and gas exploration and exploitation, he said.

PetroVietnam and international oil and gas contractors had made great efforts to ensure safety for the people and to protect the environment. So far, there had been no serious accidents, he noted.

Dao Duy Khu from PetroVietnam's Safety, Health and Environment Board said there were currently 15 oil fields under exploitation in the country, including Bach Ho, Rong, Doi Moi, Rang Dong, Lan Tay and Phuong Dong. Viet Nam oil and gas exploitation this year is expected to reach 14.52 million tonnes and 8 million cu.m, respectively.

Khu stressed that offshore oil and gas operations including drilling, exploitation, storage and product transport were all high-risk activities. The main risks were fires, explosions, spills, collisions and natural disasters such as storms, earthquakes, and tsunamis.

State management agencies needed to strengthen risk control aspects of various legal documents including the Oil and Gas law, the Labour law, the Environment Protection Law, the Firefighting and Prevention Law, and the Maritime Law, other speakers said at the seminar.

The agencies should also inspect periodically the implementation of these legal documents.

Nguyen Xuan Hoa of the Oil and Gas Exploitation Board said safety management should cover the quality of designs, operational procedures and environment protection.

Accordingly, all enterprises should evaluate environmental impacts and prepare solutions in case of emergencies, he said. Training courses on safety should be held every year for company staff, he added. — VNS

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Target to hold prices and curb power cuts

HA NOI — The Government will instruct relevant agencies to carry out synchronous measures to control prices, while overcoming power shortages, Prime Minister Nguyen Tan Dung said at the Government's regular monthly meeting yesterday.

Participants at the meeting were told that the Prime Minister would soon issue an instruction on price controls in an attempt to stabilise the market up to early 2011.

Dung said a nationwide conference would be held on implementing the instruction in a bid to fulfil this year's socio-economic targets, such as controlling inflation.

He stressed the need to maintain a stable prime rate, to manage the monetary system in an active but flexible way and to keep the price of essential commodities and medicines stable.

The Prime Minister asked ministries, cities and provinces to reserve enough goods to serve public demand during the lunar new year celebrations.

In an attempt to overcome power shortages, Dung urged electricity suppliers – particularly the Electricity of Viet Nam – to take drastic measures to speed up the construction of power plants, while buying electricity from neighbouring countries and cutting down on waste.

Participants at the meeting heard that the socio-economic situation had developed positively in the first nine months of this year. The economy had recovered fairly quickly after the global downturn and performed better than the same period in 2008 and 2009.

Specifically, the gross domestic product growth averaged 6.52 per cent in the first nine months, while industrial production was higher than the whole year's plan.

Export turnover was about US$51.5 billion in the first nine months, an increase of 23 per cent compared with the same period last year and four times higher than the National Assembly's approved target of over 6 per cent.

Total import turnover was $60 billion, an increase of 22 per cent compared with the same period last year. The trade deficit continued to narrow down and stood at $8.5 billion – equal to 16.7 per cent of the total export turnover.

The consumer price index rose 8.64 per cent compared with the same period last year.

Despite much progress, the economy was still facing many difficulties, the conference heard.

The price of consumer goods had increased, as had the price of gold. The sluggish performance of some major world economies continued to affect the country's export growth.

Production and trading enterprises were still finding it difficult to borrow money because of high interest rates, the Prime Minister said. Making matters worse, the country also has to cope with natural disasters such as typhoons, flooding and epidemics.

To overcome these difficulties, the Government has asked ministries, industries, cities and provinces to ensure there are enough supplies of commodities and that prices are stable, while disbursing investment capital for projects using Government bonds and the State budget.

The meeting reviewed socio-economic development in the first nine months and discussed strategies for the remainder of 2010. — VNS

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Speculators cause domestic gold hike

HCM CITY — The price of gold on the local market has risen due to possible speculation rather than a supply shortage, according to Nguyen Van Giau, governor of the State Bank of Viet Nam (SBV).

The global gold price set new records in the past few days, as did the domestic gold market.

The SBV and the Viet Nam Gold Association had kept a close watch on the market in the last few days, and discovered there was no shortage of gold, Giau said, adding that speculation was possibly the cause for the price rise.

Domestic gold prices in August and the first half of September were lower than the world price. But currently the domestic price is VND400,000 per tael higher than the global price.

The SBV was working with other agencies, including the police and market management, to discover the reasons behind the price hikes.

"With this kind of sensitive item, our policy is not to completely ban gold imports, but gold companies are not permitted to import any volume they want," Giau said.

"We are establishing a management framework for gold trading and imports so that it is suitable with a market economy. We will collect ideas from ministries and industries when we complete it."

Nguyen The Hung, general director of the Viet Nam Gold Investment and Trading Company, said the gold price on the domestic market would be equal or even lower than the world price if the SBV permitted gold importers to import gold.

However, the Government has stopped granting permits for gold imports, which indicates that it no longer considers gold an essential item, according to an expert.

In addition, the higher gold price had not affected people's lives since few people conducted their transactions in gold, he said.

Prices

The gold price on the domestic market yesterday morning fell to VND31.15 million (US$1,597) per tael (1.2 ounces) after it reached a record of more than VND31.3 million ($1,605) per tael on Wednesday, following an upward trend in global gold prices.

On Wednesday, most gold shops in HCM City raised their price by more than VND700,000 ($21.3) over the Tuesday price to VND31.25-31.36 million per tael.

Yesterday morning, SBJ gold was buying and selling at VND31.15 million ($1,597) and VND31.18 million ($1,599) per tael, respectively.

Sai Gon Jewellery Holding Co yesterday bought the precious metal at VND31.14 million and sold it at VND31.18 million per tael, a reduction of VND130,000 – VND170,000 against Wednesday.

The global gold price on Wednesday reached an all-time high of $1,313 an ounce on speculation that a global economic recovery would stoke inflation.

In Asia, the metal slightly fell yesterday morning to $1,309 an ounce.

The weakening of the US dollar on the world market has also contributed to the gold price hike, analysts have said. — VNS

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• Weightlifter grabs Vietnam’s first Olympic gold at Youth Games
• Assoc insists on power price hike despite protests
• Energy group asks for 50% price hike
• High rice price cuts exports

Expo promotes regional tourism

HCM CITY — A three-day annual International Travel Expo aimed at boosting 3CODE (Three Countries One Destination) tourism programme covering Viet Nam, Laos and Cambodia opened in HCM City yesterday.

Held at the Saigon Exhibition and Convention Centre in District 7, the event attracted 155 "buyers" from 35 countries and 173 sellers (enterprises and departments offering products and services).

Besides buyers from traditional markets, organisers aimed to explore new markets in North Europe, Spain, Italy and the US.

"This year's expo welcomes Myanmar, preparing to form the new 4CODE," said La Quoc Khanh, deputy director of the HCM City Department of Culture, Sports and Tourism.

"We hope to see all the six countries of the Greater Mekong Subregion in the coming expo, to join hands and make the region more interesting in the eyes of international tourists," Khanh said.

Viet Nam's national flag carrier as well as the official carrier of the event, Vietnam Airlines, offered up to 85 per cent discounts on selected international routes.

The carrier also introduced its "Welcome Christmas in Europe" tour packages at attractive prices.

Thailand organised a conference introducing its Amazing Thailand campaign. The Tourism Authority of Thailand (TAT) targets 14 million arrivals by the end of this year, and 15.5 million international tourist arrivals next year.

TAT and the Viet Nam National Administration of Tourism will hold a working section on Sunday. — VNS

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Punters tune to broadcasting

HA NOI — With the deregulation of television broadcasting opening an opportunity for private invesment, the field is heating up, with more companies willing to face the high risks involved for an early stake in a potentially lucrative sector.

In a few short years, the nation's television viewers have seen choices grow from a few national channels operated by Viet Nam Television (VTV), plus a handful of provincial channels, to nearly 100 channels nationwide, many privately operated.

In addition to the promise of growing advertising revenues, investors are also attracted to the potentially limited number of broadcast licences available, with the licences themselves likely to become increasingly valuable assets.

Among the companies to enter the broadcasting industry are YANTVJSC, FPT Media, Ocean Group, BHD, Cat Tien Sa and Lasta, and they have created such channels as SNTV, Shopping TV, SCTV, InfoTV, O2, VITTV and Today TV YANTV, all generating original programming. A number of channels have also come and gone due to a failure to attract viewers and advertising revenue in this high-stakes. Others, seeking a quick profit, try to lure advertisers with hastily produced films or game shows.

The industry is driven by sales of 30-second advertising spots. The VTV, for instance, agreed with BDH Co Ltd to buy rights to broadcast the television series The Ugly Girl (the Vietnamese remake of the popular overseas series Ugly Betty) for VND300 million (US$15,384), plus the right to sell 30-second advertising spots during the series daily timeslot of 9-0pm daily on VTV3.

With BDH facing production costs for the series of VND100 million ($5,128) per episode, BDH would be able to recoup VND200 million ($10,256) per episode selling the advertising time. VTV3 would sell additional advertising slots, making it profitable for all concerned as long as the series is popular and viewers are tuning in.

The broadcasting industry burns cash in a wink, quipped one industry insider.

BDH has been successful in producing a number of popular TV programmes, including MTV Magazine, Sunday at Home and the Vietnamese version of the veteran US game show The Price is Right. Rival Cat Tien Sa has seen success with its Singing with the Stars.

Relaxed regulation of the industry and the burgeoning of private companies in television production, many of which have invested heavily in production facilities and human resources, suggest that the quality of programming may falter as a consequence.

But television writer Dang Thanh said private companies were more careful to maintain quality but success was in their economic interest. Many attracted professionals who considered television as their career, Thanh said.

A number of investors in the industry have also already gotten their fingers burned. Techcombank invested in the healthcare channel O2 in 2007, only to be forced to resell at a loss, despite a built-in advertiser base, the nation's growing pharmaceuticals market.

Ocean Bank has a similar problem with the Shopping channel. The channel's director, Hong Minh, said the channel responded by making programming more attractive to viewers and advertisers. Shopping TV was dedicated to providing consumers with an attractive retail channel, and Minh said she expected the channel to turn a profit in the near future.

Minh said competition in the broadcasting industry was not that fierce and was consistent with the country's level of economic development.

Some advertisers were expressing concern, however. Tran Duc Minh of CG Viet Nam said the poor quality of some game shows had caused viewership and advertising revenue to decline. Many viewers had also complained about the large amount of advertising during some programming. — VNS