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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Steel trade decreases on global market

Industry insiders have reported the local steel sales dropped 41 percent in September thanks to the world market.

"September's decline was not expected. We forecast that the price of steel ingots would go through the US$600 per tonne mark but instead it dropped to US$580," said the Vietnam Steel Association's Deputy Chairman Nguyen Tien Nghi.

Steel sales in September surprised experts by dropping 41 percent over August to 283,000 tonnes.

Nghi added that due to the low price of pig iron on the world market, Vietnamese consumers are still waiting for further reductions.

Because of this, the decline has continued into the first few days of this month.

Meanwhile, he added, traders have been selling off their steel stocks.

Due to the situation, many companies and agencies have cut prices by roughly VND300,000 ($15) per tonne to stimulate the market.

According to a report by the association, the price, excluding value-added tax, is now standing at about VND13.6 million (US$697 ) per tonne.

The association said the situation would steady itself in the second half of October, as the rainy season ends and demand for construction steel picks up.

"In addition, when steel stocks are sold out, traders will be forced to renew their supplies and consumption will increase," Nghi said.

He added that demand on the world market is also increasing which would help push the price back up.

Talking about sales for the whole year, Nghi optimistically said that they would increase by 15 percent over last year.

"Because of high consumption in previous months, the dip in September will not affect sales for the whole year," he explained.

Last year, the country consumed nearly 4.2 million tonnes of steel.

Worldwide steel production may plateau over the next five years as a result of environmental pressures and smaller demand increases.

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Southern metro set to welcome 3.3 million visitors

In the first nine months of 2010, the number of international arrivals to Ho Chi Minh City reached 2.2 million, representing a year-on-year increase of 13 percent.

The city expects to receive at least 3.3 million foreign visitors in 2011, earning VND48 trillion (US$2.4 billion), according to the municipal Department of Culture, Sports and Tourism.

At this growth rate, the southern economic hub hopes to welcome the 3 millionth visitor in mid-December this year.

HCMC targets 2.8 million foreign tourists this year but the real figure may exceed 3 million.

The city’s tourism sector accounts for 60 percent of international arrivals to Vietnam , 45 percent of the country’s tourism revenues and 5.5 percent of its GDP.

Vietnam has organised tourism promotion programmes and cultural exchanges in China, Japan, the RoK and Cambodia in addition to roadshows in Australia , Norway and West European countries, they added.

The nation has targeted 4.5-4.6 million foreign tourists this year, a year-on-year increase of more than 17 percent.

Travel agencies will continue with tourism promotion and sales discount programmes in August and September in a number of key tourism cities and provinces.

Hanoi plans to organise tours to a number of ancient Vietnamese capitals, museums and homestays to attract more tourists to the city.

The Vietnamese tourism authority said it expected about 1 million Chinese holidaymakers to visit the country this year, double last year's number.

VNAT attributed the rise to a series of promotional campaigns run in major Chinese cities over the last two years.

the number of Chinese holidaymakers visiting the south of the country was rising by 25 percent annually.

Travel firms have also reported significant growth in visitor numbers from China. Lien Bang Travelink said the number of tourists using the company's services had increased by 30 percent since the beginning of the year compared to the same period in 2009.

However Vietnam could not compete with regional countries such as Bangkok or Singapore in terms of shopping malls or medical facilities.

 

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IFC to invest in Vietnam bank

The International Finance Corporation, a member of the World Bank Group, will invest in the Vietnam Joint Stock Bank for Industry and Commerce or Vietinbank, according to the corporation.

The investment is still subject to approval by both parties and the corporation’s Board of Executive Directors, according to the statement. However, on Sunday (Oct 10), both partners signed a memorandum of understanding on the investment.

Local newspapers said the corporation would spend US$190 million to acquire 10 percent of what used to be the second-largest state-owned financial institution in the country. The corporation plans to sink VND26,000 billion into the new venture by the end of the year.

An official from the corporation confirmed the acquisition agreement in the MOU and said both partners were negotiating the final details of the investment.

In return for the investment, the corporation will grant a long term loan to the bank which will improve access to finance for small and medium enterprises and support the equitization of the financial and banking sector in Vietnam.

The 10-year loan will amount to $110 million at LIBOR, plus 1.5 percent interest a year, according to the newspapers. LIBOR, or the interest rate at which banks can borrow funds within the English system, is fixed on a daily basis by the British Bankers' Association.

“By helping Vietinbank build up its capacity and strengthen its products and services, IFC will assist the bank in reaching more small and medium enterprises through its nationwide network,” said Simon Andrews, the corporation’s Regional Manager for Vietnam, Cambodia, Laos, and Thailand, in the statement.

The corporation will help the local bank, expand its SME loan portfolio, thus supporting job creation and private sector growth. Vietinbank plans to sell off another 15 percent of its shares later this year.

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IFC to invest in Vietnam bank

The International Finance Corporation, a member of the World Bank Group, will invest in the Vietnam Joint Stock Bank for Industry and Commerce or Vietinbank, according to the corporation.

The investment is still subject to approval by both parties and the corporation’s Board of Executive Directors, according to the statement. However, on Sunday (Oct 10), both partners signed a memorandum of understanding on the investment.

Local newspapers said the corporation would spend US$190 million to acquire 10 percent of what used to be the second-largest state-owned financial institution in the country. The corporation plans to sink VND26,000 billion into the new venture by the end of the year.

An official from the corporation confirmed the acquisition agreement in the MOU and said both partners were negotiating the final details of the investment.

In return for the investment, the corporation will grant a long term loan to the bank which will improve access to finance for small and medium enterprises and support the equitization of the financial and banking sector in Vietnam.

The 10-year loan will amount to $110 million at LIBOR, plus 1.5 percent interest a year, according to the newspapers. LIBOR, or the interest rate at which banks can borrow funds within the English system, is fixed on a daily basis by the British Bankers' Association.

“By helping Vietinbank build up its capacity and strengthen its products and services, IFC will assist the bank in reaching more small and medium enterprises through its nationwide network,” said Simon Andrews, the corporation’s Regional Manager for Vietnam, Cambodia, Laos, and Thailand, in the statement.

The corporation will help the local bank, expand its SME loan portfolio, thus supporting job creation and private sector growth. Vietinbank plans to sell off another 15 percent of its shares later this year.

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