Thursday, January 27, 2011

Laos opens first stock exchange

The first securities exchange in Laos, a joint-venture between Laos
and the Republic of Korea (RoK), opened for business on October 10
in the capital, Vientiane.


On addressing the
opening ceremony, Laos Deputy Prime Minister and Chairman of the
Securities Commission Somsavat Lengsavad highlighted the importance of a
securities market when raising capital for the country’s socio-economic
development.


The Laotian government is about to
launch its seventh five year socio-economic development plan for the
period 2011-2015. The main objectives of the plan are to eradicate
poverty, reach the UN’s Millennium Development Goals (MDGs) and create
the best possible conditions to take Laos of the list of the world’s
under developed countries by 2020 and lay the foundations for the
country’s industrialisation and modernisation, said Somsavad.


He added that it was essential for Laos to raise significant
funding and professionally qualified human resources to boost its
integration into the world international arena./.

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UK keen to be key in public-private partnership

UK keen to be key in public-private partnership

An UK diplomat has expressed interest in his country working as
Vietnam ’s key partner in the Public Private Partnership (PPP) sector as
there is now a great emphasis on PPP from both Government and the
public sector in Vietnam.


Kate Harrison, Deputy
Head of Mission , British Embassy, said at a workshop in Hanoi on
October 11 that the UK could share its experience with Vietnam at a
time when the latter is looking at new ways of finding finance for
crucial infrastructure projects.


“PPP has been a
cornerstone of the modernisation of public service delivery in the UK
with more than 900 projects, involving private finance of around 100
billion USD approved in the UK in the last 12 years”, the British
diplomat said as an illustration of UK experience in this field.


Vice Minister of Planning and Investment Dang Huy Dong shared his
view, emphasising that the PPP would certainly bring great benefits for
infrastructure development in Vietnam .


He said the
legal framework of the PPP model had been submitted to the Prime
Minister for approval and a number of pilot projects in infrastructure
development were underway.


British businesses’
executives shared experiences in making the legal framework of the PPP
model, plus how to establish infrastructure PPP projects in an emerging
market, how to avoid disputes and how to enhance transport development
through PPP.


Prince Andrew, The Duke of York and the
UK Special Representative for International Trade and Investment,
appreciated bilateral relations between the UK and Vietnam .


“Two key areas of this relationship cover trade and development: both
are essential elements for a country’s wellbeing; and as part of that
relationship we see the concept of PPP as being a key ingredient to
deliver the necessary infrastructure which will bring increased trade
and investment”, said the Duke of York./.

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Yearly seafood exports to earn 4.8 bln USD

Vietnam is expected to earn more than 4.8 billion USD from the export
of 1.3 million tonnes of aquatic products this year, according to the
Ministry of Agriculture and Rural Development.


Of which, tra fish brought in over 1.3 billion USD from 630,000 tonnes.


The
Ministry attributed the positive signals in Vietnamese seafood exports
to the economic recovery of several countries, especially developed
economies, which has slightly upped the sales of seafood globally.
According to the United Nations Food and Agriculture Organistion (FAO),
the volume of seafood on the world market in 2010 is estimated at around
52.8 million tonnes, in comparison with 52.5 million tonnes in 2009.


However, Vietnam ’s seafood export processing businesses face a lack of seafood products for processing.


To
increase supplies, Vietnam has targeted an output of between 6.5-7
million tonnes of aquatic products, 65–70 percent of them aquaculture,
as set in the country’s aquatic development strategy till 2020.


In
the first nine months of this year, the country earned 3.5 billion USD
from aquatic exports. Japan remains Vietnam ’s largest consumption
market. It is closely followed by the United States , the Republic of
Korea , Germany , Spain and China .


In addition to its
major and traditional markets, Vietnamese seafood is now also widely
available in many Latin American countries./.

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Asia braces for currency wars but options limited

SINGAPORE - Emerging Asia is braced for collateral damage in case of an all-out currency war between the world's most powerful economies, but regional governments have limited options, economists said.

The subject dominated annual International Monetary Fund talks in Washington at the weekend, but there was no consensus as the US and China wage an acrimonious dispute over Beijing's currency policies.

"I strongly hope that this will not escalate into an all-out war," said Cyn Young Park, a senior economist at the Asian Development Bank (ADB), voicing fears any conflict could derail the world's fragile recovery from recession.

"We are now at the stage where many countries have to maintain the recovery momentum and it is really counterproductive that we slip into protectionism, whether it is trade or financial," she told AFP.

Battered by the financial turmoil that began in 2008, the US, Japan and Europe are moving to weaken or cap their currencies in a bid to make their exports more competitive in the global market.

The war drums grew louder as the US, facing midterm elections next month, mounted a high-profile campaign to pressure China to allow the yuan currency to rise more rapidly against the dollar to correct trade imbalances.

As China dug in, Japan intervened in the market for the first time in six years to stem a sharp rise in the yen.

Emerging Asian economies are caught in the cross-fire. With Beijing keeping a tight rein on its exchange rate, their currencies have risen faster against the dollar than has the Chinese yuan, making their exports less competitive.

The US and Britain have also injected more money into their banking systems to stimulate growth.

But with growth in the US, Japan and Europe anemic, a large chunk of the money is heading to emerging markets, including in Asia, where it stands to gain better yields, said David Carbon, an economist with Singapore's DBS Bank.

According to the Washington-based Institute of International Finance, net private capital flows to emerging economies are projected to reach US$825 billion this year, or over $2 billion a day, up from $581 billion in 2009.

The massive inflow has been a key factor pushing Asian currencies higher. It has also led to steep gains in stocks and property prices, stoking fears of "bubbles" which could later burst if the money exits as fast as it has come in.

Pressure is now on Asian policymakers to limit the rise in their currencies and yet at the same time manage the effects of growing inflation, as well as the rising asset prices.

DBS Bank said that since January, Asian currencies have gained by 6.0 percent on average against the dollar, with the Malaysian ringgit and the Thai baht up the most at 9.0 percent.

Comparatively, the yuan appreciated by only 2.0 percent.

While market intervention remains an option, many central banks are preferring to keep their powder dry because of inflationary risks.

The Malaysian ringgit has been trading at a 13-year high against the dollar, but the central bank has said the strength in the currency reflects Malaysia's robust 9.5 percent economic growth rate in the first half of the year.

Bank Negara, the Malaysian central bank, said it would only intervene if there were any sudden or excessive movements.

A decision to intervene is not simple for the Reserve Bank of India, despite the rupee reaching over a two-year high against the dollar, as a strong currency is helping the central bank battle rising inflation, officials said.

South Korea is one country that is said by traders to have intervened repeatedly in the currency markets to put the brakes on the won's rapid ascent.

Thailand's central bank declined to say whether it intervened in the market after the baht hit a 13-year high against the dollar last week but dealers suspected it might have bought dollars.

In the Philippines, officials have expressed concern over the rise of the peso, but also admitted that the government had limited resources to help exporters deal with the problem.

"Policymakers in smaller Asian countries have to accept that they are powerless in the face of policy decisions made by the G3 (US, Europe and Japan) and China," said Manu Bhaskaran, head of economic research at consultancy Centennial Group Inc.

Their options include imposing capital controls and introducing measures restricting foreign investors' access to some assets, he said, citing Singapore's recent measures to cool down its property market.

But that risks setting off a round of beggar-thy-neighbor policies that jeopardizes the global recovery, analysts say. Battle will be rejoined at upcoming G20 meetings in South Korea.

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Asia computer market has room for both tablets and laptops

TAIPEI - Tablet computers such as Apple's iPad and Samsung's Galaxy have had a fanfare of publicity, but they are unlikely to kill off their older cousin the laptop anytime soon, say Asian analysts and vendors.

Sales of smaller-screen and cheaper netbook laptops may appear to be sloping off in a mature market like the United States, but analysts in Asia believe this is not the end of the road for the laptop itself.

"The tablet is a secondary device, meant for people who already have a PC and want a device for portable usage," said Tracy Tsai, a Taipei-based analyst with technology research company Gartner.

"Using the tablet as your only device is rare, as you still need something with a keyboard to type in things, and storage."

Apple's iPad has replaced half of US electronics chain store Best Buy's cheaper netbook sales, the retailer estimated last month, and the pressure can only increase as a stream of gadget makers bring out their own tablets.

Best Buy has begun showcasing e-readers, tablets and mobile devices in its most prominent store displays as Christmas approaches.

"People are willing to disproportionately spend for these devices because they are becoming so important to their lives," Best Buy Chief Executive Brian Dunn told the Wall Street Journal.

In Taiwan, a Nielsen Global Consumer survey in March found that 36 percent of people either had a tablet computer already or planned to buy one.

"iPads have faster Internet connections than laptops," said a vendor in downtown Taipei surnamed Wen. "It's lighter and easy to carry around so many people are buying it now."

But Taipei is not typical of Asia's billions of consumers, however, and there will initially be relatively limited markets for the iPad and competing tablets made by several manufacturers including Samsung and Dell.

"In emerging markets users in places like Shanghai or Beijing have a purchasing power similar to the average person in Singapore and Taipei, but it’s still limited to first-tier cities," said Gartner's Tsai.

"Most emerging markets are price-sensitive, and in Indonesia for example a price difference of 20 or 30 dollars is important."

Japan is definitely alert to the advantages of moderately-sized tablet computers in cramped spaces, but observers are careful not to pronounce the laptop dead, or even ailing, just yet.

"A tablet computer is an item you can literally walk around with in one hand," said Takumi Sado, a senior analyst at Daiwa Securities Capital Markets.

"You can carry a notebook computer around, too, but you still need to find a place to sit down and work on it.

"But if you want to type up something, a notebook computer still works better... At this point, I can only say that tablet PCs are for different needs, such as online search, from those of laptop computers."

Japanese electronics giant NEC, the dominant player in the domestic computer market, sold 2.73 million PCs last year, 60 percent of which were laptops, a company spokesman said.

"Basically in Japan, a notebook computer has become an essential item in a regular household. We are considering a tablet PC as an item somewhere between a notebook and a mobile phone," he said.

"We think the tablet computers will create a whole new market on top of notebook PCs. We don't think the tablet would diminish the market of laptop computers."

Toshiba, another Japanese electronics giant, has marketed a mobile PC model without a keyboard, called the libretto, which opens up like a book with two slate displays on both sides.

The company said it has also developed a slate-type tablet computer called Folio 100, planning to release it next year only in Europe, Africa, Middle East and part of Asia including Southeast Asian nations, but not in Japan.

"The company believes tablet computers are a new category of products," a Toshiba spokeswoman said.

New technologies can be disruptive, even destructive. But they can also be the opposite, giving new momentum to existing, more mature technologies.

"Tablet PCs and laptops have different functions and are expected to create a different segment of consumers and will complement each other," said James Song, a Seoul-based analyst for Daewoo Securities.

"So tablets will enhance the overall usage of mobile PCs."

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Wednesday, January 26, 2011

Concerns rise over 3G network security

Concerns rise over 3G network security

Third generation services are widely used in Vietnam but cell phones are becoming the target of hackers.


When mobile phone users connect to 3G networks, it is the equivalent of
connecting to a LAN network but without an administrator. With
traditional networks, hackers try to gain access through modems, but
together with security measures provided by ISPs, they generally block
hackers.


LAN networks are usually controlled by IT
technicians with firewalls to prevent hackers from stealing information
but 3G users do not have this security.


Nguyen Minh
Duc, Director of BKIS Security says hackers can use regular 3G
subscriptions to access other devices via Internet Protocol (IP) and
exploit security vulnerabilities.


Duc says the 3G
network in Vietnam does not have the standard configuration or safety
barriers to limit the risk of intrusion from hackers.


Viettel recommends that their clients should take the initiative
themselves by installing antivirus software, antispam and firewall.


Fake phone number annoy cell phone users


Most mobile service providers allow calls from internet based
technology. These calls connect through an ISP, sometimes located in a
foreign country.


Vietnam's mobile service providers
have addressed this problem by filtering calls generated from the
internet. In the case of internet calls, telephone number are displayed
on the recipient's phone with national codes.


Pham
Dinh Truong, Deputy General Director of Viettel says they have adopted
measures to prevent fraudulent calls from abroad. Viettel also launched
its Message Plus system in August after a trial period in the Central
Region./.

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Asia-Pacific firms worried over carbon laws - survey

MELBOURNE - Asia-Pacific firms are worried that tougher laws on greenhouse gas emissions will hit financial performance and uncertainties on the issue are already limiting their ability to raise capital, a survey published on Monday showed.

The survey by Standard & Poor's and carbon analytics firm RepuTex also found only a minority of firms demonstrated a high understanding of risks associated with tighter carbon laws.

"Respondents from all sectors across the entire Asia-Pacific region clearly stated that they anticipate climate change to progressively affect their financial statements," it said.

The study found 41 percent of the respondents reported that to a degree they were already feeling the impact of carbon regulations on their fund-raising activity.

It indicated some firms were actively exploring strategies to turn financial risks associated with greenhouse gas emission laws into opportunities to gain a competitive advantage, but only a minority showed a high understanding.

"Existing levels of awareness around factors such as carbon prices, expected climate change regulation, financial risks, and opportunities are relatively low, indicating that there is a substantial knowledge gap that may need to be addressed to achieve effective risk management," said the survey, released at at the annual Carbon Expo Australasia conference.

The survey polled 300 firms but was based on responses from 28 companies although the results also included data from 1,657 Asia Pacific companies monitored by RepuTex.

Around 90 percent of respondents expressed concern about the impact of physical climate change on their industry, with most concern shown by firms operating in Japan, Malaysia, and India.

By sector, real estate, metals and mining, consumer products and transportation saw climate change as having the most physical impact on their operations.

According to data provided by RepuTex, the most carbon-intensive sectors in the Asia-Pacific region are utilities, responsible for 58 percent of the region's emissions, energy, accounting for 18 percent, and materials, 13 percent.

The data showed Japan produced the largest portion of carbon emissions in the region, accounting for 31 percent, followed by China, on 29 percent, and South Korea, 11 percent.

The survey found that 46 percent of a respondents recognized carbon change commitments as a possible source of competitive advantage, leading them to analyze future carbon liabilities while building carbon-management strategies.

Investors wary of carbon risk

Firms in the survey also indicated they believed the evolving regulatory and physical environment in the region meant investors were increasingly identifying firms which posed the greatest risk to their investment portfolios over potential carbon liabilities.

Investors were increasingly seeking to buy stock in carbon-efficient leaders, the companies in the survey believed.

The participating firms also recognized that behavioral change and the use of new technology to reduce carbon footprints opened up opportunities to cut exposure to higher energy costs.

Nearly 80 percent of the respondents chose implementing energy efficiency measures as the most preferable and feasible option to mitigate carbon exposure.

Investing in clean technologies, innovation, and renewable energy, and retrofitting and optimizing existing processes, were chosen by 71 percent of the respondents.

"We believe that this indicates that respondents are taking advantage of low-hanging fruit such as energy-efficiency measures, which often result in cost savings," Standard & Poor's/RepuTex said.

They said the oil and gas, metals and mining, electric utilities, and integrated gas sectors anticipated significant carbon exposure under future emissions trading schemes, and were already performing direct-emissions forecasting to determine future carbon liabilities.

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