Vietnam's rice exports strong but quality poor

Rice exports in 2007: good business but poor quality

VNECONOMY updated: 28/01/2008

Vietnamese rice has been exported to more than 70 countries and territories around the world including demanding markets such as the EU, the US and Japan. However, behind this impressive figure, the Vietnamese rice exporters are still beset by worries. In 2007, Vietnam was in the “runner-up” position amongst the world’s rice exporters with the total rice output hitting approximately 36 million tonnes. In the Summer-Autumn crop alone, localities across the country harvested nearly five tonnes/ hectare, reaching an estimated output of 10 million tonnes, up 430,000 tonnes from the 2006 figure. According to the Ministry of Industry and Trade, the country exported 4.3 million tonnes of rice in 2007, grossing more than US$1.4 billion in export turnover. Furthermore, the price of Vietnamese rice was sold at an average of US$293/ tonne, US$42/ tonne higher than in 2006. In early 2008, thanks to winning contracts to export around 4 million tonnes, Vietnam is still the second biggest rice exporters just behind Thailand. The Ministry of Agriculture and Rural Development said that last year, rice farmers in the Mekong River Delta enjoyed a bumper crop, earning an additional VND2,100 billion at an average price of VND3,000 for one kg of rice. Rapid development but lacking sustainability According to scientists, rice output has seen a constant growth over recent years. However, ensuring the sustainability, safety and quality of rice products remains problematic due to post-harvest loss and poor rice quality as a result of long lying in store. The Mekong River Delta Rice Research Institute said that the volume of post-harvest rice lost is still at a high level of 10 percent. In addition, to meet with market demands, finished rice products must be preserved at a humidity of less than 14 percent, which is applied popularly for long rice in the US, Australia and Thailand. However, Vietnamese rice after being husked, is stored in humidity between 16-17 percent. Therefore, if exported, it must be re-processed to reduce the humidity to 14 percent but this process results in broken rice, reduced quality and low prices. Prof. Dr. Vo Tong Xuan who has spent many years studying rice in the Mekong River Delta said that Vietnam could win many more rice export contracts after its entry to the World Trade Organisation (WTO). However, its rice must be quality and sold at a competitive price. To compete with big rivals like Thailand, farmers should create close links with businesses and apply advanced cultivation technology. Rice exports in 2008 will continue to see positive signs as businesses have won contracts to export 4 million tonnes this year but the crux of matter is how to increase the quality of Vietnamese rice to meet the global markets’ tougher demands. Last but not least there should be closer cooperation among farmers, agricultural managers and businesses, which will enable Vietnamese rice businesses to secure a foothold in the world markets.

News updated

» HCMC earns 830 million USD from exports in January - (25/01/2008) » Viet Nam wishes to boost trade, investment with Chile - (25/01/2008) » Vietnam’s goal is US$6bil FDI disbursement in 2008 - (25/01/2008) » Vietnam tops list of world pepper exporters - (23/01/2008) » Vinh Long attracts 12 foreign-invested projects - (23/01/2008) » EU accepts additional 25 seafood processors - (22/01/2008) » Catfish producers work to improve quality - (22/01/2008) » Shoemakers target US$4.5bil in exports - (21/01/2008) » New regulations govern petroleum imports, re-exports - (14/01/2008) » ADB provides 200 million USD loans for Viet Nam - (11/01/2008)

Vietnam's Petechim in deal to supply crude to Dung Quat refinery

Singapore (Platts)--25Jan2008

The PetroVietnam Trading Corporation, more commonly known as Petechim,

has signed a contract with state-run PetroVietnam to supply the latter's maiden Dung Quat refinery with 6.5 million mt/year of crude when the plant goes into operation in 2009, the Vietnam News Agency reported January 24.

     The Dung Quat refinery, in the central province of Quang Ngai, will have a nameplate capacity of 6.5 million mt/year (around 130,000 b/d) and will meet 30% of domestic demand.

     The refinery will use local Bach Ho crude for the first five to seven years after which it would use a combination of Bach Ho and Dubai crude in a 85:15 ratio, according to PetroVietnam, which owns 100% of the project.

     The refinery will mainly produce gasoline (41%) and gasoil (40%)

compliant with Euro II emission standards.

     PetroVietnam has also signed preliminary deals with Dutch trader

Trafigura and Swiss-based oil trader Glencore to meet long-term domestic needs for crude oil.

     From being a crude oil exporter, Vietnam is going to turn into a net importer with several refinery projects in the pipeline. 

     PetroVietnam is planning a second refinery project in Nghi Son in the northern province of Thanh Hoa. This plant will have a a nameplate capacity of 7 million-8.4 million mt/year and is targeted to begin operations before 2015.

The refinery will process 100% sour Middle East crude.

     Separately, PetroVietnam is working with Venezuela's PDVSA on a detailed feasibility study for a third refinery project. This refinery, to be located either at Long Son or Ba Ria in the southern province of Vung Tau, is expected to have a nameplate capacity of 10 million mt/year and is also targeted to begin operations by 2015. It will process 100% Venezuelan crude.

--Mriganka Jaipuriyar, mriganka@platts.com

US Helps Vietnam With Direct Flights

By TRAN VAN MINH Associated Press Writer

© 2008 The Associated Press HANOI, Vietnam — Vietnam's national air carrier hopes to have direct flights between Ho Chi Minh City and Los Angeles within a year after the U.S. provided $1.4 million to help upgrade safety standards, an official said Friday.

The money will be used to ensure Vietnam's aviation safety and security procedures meet international standards required for all aircraft entering the United States, according to a statement from the U.S. Embassy in Hanoi.

"The assistance is essential to Vietnam Airlines in its efforts to open direct flights to the United States," said Lai Xuan Thanh, deputy director of the Civil Aviation Administration of Vietnam, or CAAV. "We need more direct flights to match the fine growing economic ties between Vietnam and the United States."

He said the project's three phases are expected to be complete by August. U.S. Federal Aviation Administration will then visit Vietnam to check that all of the standards have been met.

"The United States stands ready to help the CAAV and Vietnam Airlines upgrade its safety capacity and looks forward to the opening of direct service to the United States," the embassy statement said.

Vietnam Airlines could then launch its direct flight to the U.S. in late 2008 at the earliest, he said. It would fly from the southern commercial hub Ho Chi Minh City to Los Angeles via Osaka, Japan.

Currently, United Airlines is the only carrier to operate direct service to the U.S. It opened flight from Ho Chi Minh City to San Francisco via Hong Kong in late 2004.

These flights are considered direct because the planes only stop for a short time to pick up additional passengers.

Vietnam and the United States signed an aviation agreement in 2003, allowing the countries to exchange direct flights and to add code-shared flights, which enables other airlines already operating in each country to complete part of the journey.

More than 1.5 million overseas Vietnamese _ the largest population outside Vietnam _ live in the United States with the biggest community in Southern California. Many fled their native country in boats after the Vietnam War ended in 1975 and northern communist forces took control of the former South Vietnam, which the U.S. had backed.

New research into essential-oil extraction could help locals

Nguyen Thi Hong Ngoc from Quang Nam Province runs a profitable essential oil production business An award-winning research group from Hanoi has used a method to extract essential oils from indigenous plants that could see locals reaping the benefits.

A group from the Ho Chi Minh City Institute of Chemistry Sciences grabbed headlines last May by successfully extracting essential oil from an Eaglewood tree using a specialized technique. The “supercritical CO2 method” has been found in the past to slash the amount of time involved in extracting oil as compared to a traditional steam distillation technique. Further, it opened the door to large-scale production of Eaglewood oil, highly valued on the international market. The method consists of pumping pressurized or “supercritical” carbon dioxide (SCO2) into a chamber filled with plant matter. SCO2, a gas with liquid properties, then acts as a solvent, pulling off the compounds responsible for the plant’s characteristic fragrances which are used to make perfume and aromatherapy products. The SCO2 extraction process occurs in moderate temperatures (around 37 degrees Celsius) and allows the extracts to retain much of their natural fragrance and color. The steam distillation technique on the other hand, involves high temperatures which can cause the extracts to lose many of their most valuable properties. Unlike other chemicals used in the steam distillation process, SCO2 is also a non-toxic substance and thus ensures the safety of the final product. For the last four years, three chemists from the Institute of Industrial Chemistry in Hanoi have also been experimenting with the supercritical CO2 method on an equally valuable source of essential oils. Their illuminating research earned them first prize at the 2007 Youth Science and Technology Awards, jointly organized by the Vietnam Institute of Science and Technology and the Ho Chi Minh Communist Youth Union. While the technique has been used for decades by chemists in other countries, the Hanoi researchers decided to apply the method to local vegetation with the ultimate goal of turning a seemingly useless plant into a source of income for local people. The team conducted experiments on a type of plant called Vetiveria zizanioides L. Nash, or simply vetiver grass. Widely cultivated in tropical regions around the world, the grass is a major source of essential oils for the aromatherapy and cosmetics industry. “Vetiver grass is in fact as important as the Aquilaria family, which includes the Eaglewood tree, as a source for producers of perfume and aroma therapy products,” said Le Dang Quang, head of the research group. Nguyen Mai Cuong, another research member, said that in addition to its valuable essential oil, vetiver grass with its long roots, can also prevent erosion. Cuong was entrusted with collecting the grass along the Tien Hai coast in the northern province of Thai Binh. “We chose this grass because we want to enhance its value and to encourage its cultivation for the industry, as well as for an environmental cause – erosion control,” said Cuong. In the past, local vetiver growers chiefly cultivated the grass as a material to make incense with, since there was no efficient way to extract its essential oils. “And incense, the making of which involves manual and simple techniques, isn’t a highly valued product on the market,” Quang added. The two institutes’ projects, Quang said, show Vietnamese chemists’ growing interest in applying global scientific advances to local research. Reported by Thuy Linh

PetroVietnam targets 23.5 million of equivalent oil this year

Nhan Dan - The National Oil and Gas Group (PetroVietnam) has set a target of producing 23.5 million tonnes of equivalent oil this year, including 16 million tonnes of crude oil and 7.5 billion cubic metres of gas. The figures were released at a meeting to review the group's activities in 2007 and orientations for 2008 in Hanoi on January 25. To reach these goals, PetroVietnam will speed up the exploration of new oil fields and bring online as well as speeding up construction of major projects. After one year of operating under the group model, the Vietnam National Oil and Gas Group (PetroVietnam) reported an all-time high total revenues in 2007 of VND 213.4 trillion (US $13.3 billion), up 18.4% against the previous year and 27% against the targeted figure.

Chu Lai Economic Zone aims to attract $500m in investment

Ha Port in the Chu Lai Open Economic Zone in the central province of Quang Nam. The zone is aiming to attract US$500 million in combined investment capital this year. — VNA/VNS Photo Hong Ky

QUANG NAM — The Chu Lai Open Economic Zone (EZ) aims to attract combined investment capital of US$500 million this year, up 26 per cent from the corresponding period in 2007, head of the zone management board Le Phuoc Thanh said.

"The goal is within reach as four investors to date have registered to pump investment in infrastructure construction and tourism sectors in the zone," Thanh said without revealing the total level of investment capital so far.

During the coming year, top priorities will be given to projects specialising in tourism, services,transport infrastructure such as road and wharves, and construction of industrial zones and free trade areas.

"In order to cope with competition from new coastal economic zones, Chu Lai need to find new measures to attract more strategic investors as well as continue to solve difficulties facing investors in land clearance. Resettling people in areas targeted for development will also be a top priority for us," Thanh said.

The Chu Lai EZ Management Board will restrict the licensing of investment projects by evaluating plans yet to be implemented and considering licence revocations. The board will also be more discriminatory when handing out licences and allocating land.

As many as 21 investment projects, together worth roughly $962.3 million, were registered in the zone last year. Six of the 14 licensed were involved in the tourism sector while the rest were concentrated on industry.

"There is great potential for developing tourism in the EZ because of its coastal location, beautiful surroundings and large land fund for construction," the board said.

Among these licensed projects, four are already operational.

The latest additions bring the total number of registered projects in the zone to 51, with capital totalling over $1.49 billion. Among these 44 have been granted licences amounting to $704 million. — VNS

Foreigners Interested In Vietnam's Investment Market

HANOI, Jan 26 (Bernama) -- Representatives of many international organisations and businesses have expressed their keen interest in Vietnam and continued to consider the nation an attractive investment market, VNA quoted the Vietnam Investment Review newspaper's special issue as saying.

The special issue reviewed foreign investment activities in Vietnam for the past 20 years.

Both Executive Director of the American Chamber of Commerce (AmCham) in Hanoi Adam Sitkoff and Chief Representative of the Hanoi-based Japan External Trade Organisation (JETRO) Kenjiro Ishiwata said that their member businesses are paying special importance to Vietnam.

"Vietnam's strategic position in the region has brought Japanese investors in," said JETRO Chief Representative.

Meanwhile, AmCham Director Sitkoff said that many US businesses consider Vietnam the world's most attractive emerging market.

World Bank Country Director Ajay Chhibber also admitted that more and more foreign companies consider Viet Nam an attractive investment destination in the region for its low cost, active reform and socio-political stability.

As a result, the annual foreign direct investment (FDI) influx in Viet Nam compared with its gross domestic product (GDP) is always high in Southeast Asia, he said.

Sharing the same opinion, General Director of the Korea Trade and Investment Promotion Agency in Hanoi Kim Won Ho said that Vietnam has surpassed China to become an attractive investment destination for his country's investors.

Vietnam's admission to the World Trade Organisation (WTO) and the ASEAN-RoK free trade agreement which became effective in June 2007 have helped Vietnam become an extremely important market" and our current top priority is to promote investment in Viet Nam, he affirmed.

These officials and executives also praised the Vietnamese Government for its efforts in implementing business and investment environment reform.

"Vietnam could not have become a favourite destination for FDI unless the nation made its pledge for business environment improvement and FDI promotion," WB Country Director Chhibber said.

"Forty percent of FDI businesses in Vietnam are wholly foreign-invested enterprises, 37 percent are joint ventures and the remaining are business cooperation contracts," he noted.

AmCham Director Sitkoff said that Vietnam's implementation of measures to improve its business and investment environment and its amendments and supplements to its legal documents have contributed to protecting the country's regulations and mechanisms and making them in line with the global standards.

"These laws have laid a favourable foundation for business and investment activities and helped promote Viet Nam 's socio-economic development," he elaborated.

However, they also pointed out the nation's shortcomings in attracting FDI such as poor infrastructural facilities, lacking high skilled human resource and a strong subsidiary industry.

In order to maintain a sustainable growth rate, Director of the Asian Development Bank in Vietnam Ayumi Konishi suggested Vietnam further improve its investment environment, continue to finalise its macro-economic policy mechanism, conduct structural reform and invest in skilled human resources.

He took the occasion to affirm that "ADB has been actively support Viet Nam in development process and committed to form a good investment environment in all over Asia ."

The WB Country Director said that Vietnam's implementation of its commitment in the WTO is a key factor for the nation to maintain its position as an attractive destination for FDI.

-- BERNAMA

Vietnam to spend $100 million a year in oil search abroad

HANOI, Jan 25 (Reuters) - State oil group Petrovietnam said on Friday it would invest $100 million annually in the next several years to prospect for oil and gas in other countries to boost its oil reserves.

The Hanoi-based group said in a statement it aimed to add between 30 million to 40 million tonnes of oil equivalent to its total oil reserves annually, to "guarantee national energy security".

This year, the group said it aimed to purchase two major oil fields in Kazakhstan and Azerbaijan.

Petrovietnam's exploration arm PVEP said it had acquired assets, most of which were under exploration, in Algeria, Malaysia, Indonesia, Iraq, Mongolia, Venezuela and Madagascar.

Vietnam now ranks as Southeast Asia's third-largest crude oil producer after Indonesia and Malaysia, with 2008 oil production forecast at about 320,000 bpd, all for export as it lacks refineries.

The country's first oil refinery, the 140,000-bpd Dung Quat plant, is scheduled to go onstream in February 2009.

(Reporting by Nguyen Nhat Lam; Editing by Valerie Lee)

Vietnam's oil production slumps for third year in 2007

The state-run oil and gas group, PetroVietnam, reported lower output for the third straight year with 15.91 million metric tons of crude oil produced in 2007.

PetroVietnam has previously reported output of 17.3 million tons in 2006.

The output figure for 2007 included more than 100,000 tons from a partly-owned Malaysian field, Tran Ngoc Canh, General Director of PetroVietnam said Monday.

An engineer at a Vietsovpetro oil drilling platform, a joint venture between PetroVietnam and Russia’s OAO Zarubezhneft

The 2007 production equates to about 327,000 barrels per day, based on conversion ratios previously given by the oil producer.

“Production at Bach Ho is falling because the field is getting old,’’ said Canh.

PetroVietnam forecast crude oil production this year at 16 million tons, without specifying how much may come from fields outside Vietnam.

In addition to Malaysia, PetroVietnam also has stakes in exploration, or production ventures, in countries including Algeria and Indonesia.

The oil group’s overall sales rose 18 percent to VND213.4 trillion ($13.35 billion), according to the company, which did not give a reason for the increase.

Source: Bloomberg

Vietnam attracts 9,500 foreign invested projects

Nhon Trach 1 Industrial Zone in southern Dong Nai province. Nhan Dan – The Foreign Investment Law was issued on December 29, 1987. It was one of the first laws issued during the renovation period. The promulgation of the Foreign Investment Law has institutionalised the Party and State’s policies in effectively attracting foreign investment capital. It is regarded by the international community to be a transparent, attractive code and basically conforms with the international norms. Within the context of fierce competition in attracting foreign investment regionally and globally, the Foreign Investment Law in Vietnam has been a vital lever in attracting foreign investment to Vietnam. Since the promulgation of the Foreign Investment Law in 1987, the law has been amended four times in 1990, 1992, 1996 and 2000. The issuance of the law as well as of other legal documents relating to foreign investment has created a legal environment for foreign investment activities in Vietnam. Thus, though the market mechanism in Vietnam has yet to be perfected, foreign investors in Vietnam can still carry out their investment activities in Vietnam without any big differences compared to other countries. Importance has not only been attached to perfecting legal environment, during the past 20 years, the business and investment environment and the decentralised administration of foreign investment have received due attention. These efforts have contributed to the encouraging foreign investment activities in Vietnam, affirming the significant position of the foreign-invested sector in national industrialisation and modernisation. By the end of 2007, Vietnam has attracted over 9,500 FDI projects with a total registered capital of US $98 billion, including additional registered capital. Excluding expired projects and those that have been dissolved ahead of duration, currently 8,590 projects are still valid with a total registered capital of US $83.1 billion. Total registered capital experiences a trend of increasing from 2003 to date. In 2003, total registered capital increased by six times compared to 2002. In 2004, the figure was up 42.9% compared to 2003; it was 58% in 2005; 75% in 2006 and 69% in 2007. From 2001 to 2005, Vietnam attracted a total of US $20.8 billion, up 73% against the targeted figure set at the Resolution 09/2001/NQ-CP. In 2006 and 2007, foreign investment flow to Vietnam increased remarkably with the registry of many large-scale projects in heavy industry and services. Foreign investment to heavy industry and construction occupies the biggest proportion, accounting for 66.8% of the total number of projects, 60.2% of the total registered capital and 68.5% of the total implemented capital. From 1988 to the end of 2007, northern localities attracted 2,220 FDI projects with a total registered capital of US $24 billion, accounting for 26% of the project quantity, 19% of registered capital and 24% of the total implemented capital. Specifically, Hanoi has attracted half of the total registered investment and implemented capital of the whole northern region, followed by Haiphong, Hai Duong and Quang Ninh. Southern localities from Ninh Thuan southwards have attracted 5,452 projects with total registered capital of US $46.8 billion and total implemented capital of US $15.7 billion, equivalent to 48% of the total number of projects, 56% of registered capital and 51% of implemented capital. Foreign investment in the Mekong river delta region was the lowest in the country, accounting for only 3.6% of the total number of FDI projects to the country, 4.4% of total registered capital and 3.2% of total implemented capital. Quang Nam, Da Nang and Phu Yen are currently topping the localities in the central region in terms of foreign investment attraction, though their rate of attraction is still low compared to their potential. To date, 80 countries and territories have been investing in Vietnam. As many as 68% of these are from Asia; 16.2% from the EU and 11% from America. The foreign-invested sector is underlining its significance in Vietnam’s economy and is the sector enjoying the most dynamic growth. Vietnam’s investment and business environment is improving, thus the country is becoming more attractive to both foreign and domestic investors.

Vietnam firms to build $10 million Internet data center

Vietnam to build biggest Internet data center

HANOI, Jan. 24 (Xinhua) -- A Vietnamese information technology company and a U.S.-invested firm have agreed to invest dozens of million U.S. dollars in developing Vietnam's biggest Internet data center by September and two other centers by 2010, a corporate official said Thursday.

The local company named Quang Trung Software City (QTSC) in southern Ho Chi Minh City and U.S.-invested firm called DOT Vietnam will jointly invest around 10 million dollars in building the 1,000-square meter center which will, once becoming operational in September, offer hosting and backup services to such major clients as government agencies, multinationals, financial groups and banks, said QTSC's chief executive officer Chu Tien Dung.

QTSC, specializing in software production, and provision of facilities and services to software developers in an area of 430,000 square meters in the city, and DOT Vietnam plan to pour around45 million dollars into building two other Internet data centers in Vietnam by 2010, he said.

Vietnam had roughly 18.6 million Internet users, or more than 22 percent of its total population by the end of 2007, up from nearly 14.7 million users by the end of 2006, the Vietnam Internet Network Information Center under the Ministry of Information and Communications told Xinhua on Thursday.

Of the 18.6 million Internet users, over 5.2 million are subscribers, including roughly 1.3 million broadband ones, it said, noting that the country had total international bandwidth of 12,115 Mbps, and 60,604 websites using Vietnamese domain ".vn" by the end 2007.

Vietnam has posted an average annual growth of 36 percent in Internet users since its connection to the global computer network in November 1997. Under the ministry's plan, all ministries, sectors and state administrative agencies at district level upward, institutes, universities, colleges and senior high schools will have broadband Internet connections by 2010.

Vietnam increases investment abroad

Nhan Dan – Vietnam has taken the initiative in increasing its investment abroad. During the past 20 years, Vietnamese enterprises have invested a total of US $1.39 billion in 249 projects abroad. Hai Thu has more.

Vietnamese enterprises have invested in projects in 35 countries and territories. Laos tops the list in terms of attracting investment from Vietnam. Specifically, Vietnamese businesses have invested in 86 projects in Laos with a total investment capital of nearly US $584 million, accounting for 34.5% of the total number of projects and 42% of the total investment capital.

Cambodia ranks second, attracting 27 projects from Vietnamese investors with total investment capital of US $88.4 million, followed by Russia, 12 projects and US $48 million.

There are also big investment projects in oil and gas exploration and exploitation in Algeria, Iraq and Madagascar.

In 2007 alone, a project to explore and exploit oil and gas in Madagascar was licensed with a total investment capital of US $117.36 million.

As many as 40.2% of the invested projects abroad and 64.2% of the total investment capital has been invested in industrial sector. Vietnamese investors have also paid attention to investing in agricultural sector (accounting for 21% of the projects and 20.5% of investment capital) and services (39.6% of projects and 5.5% of total investment capital).

Initially, some projects have been carried out quite effectively. For example, by investing US $30 million in two projects to explore and exploit oil and gas by the National Oil and Gas Group, PetroVietnam, in Algeria and Malaysia, PetroVietnam have announced they have found oil at both sites. Rubber plantation projects in four provinces in southern region of Laos by the Vietnam Rubber Corporation and Dak Lak Rubber Company with a total investment capital of US $60 million have also been deployed effectively.

Vietnam has built a legal foundation regarding investments by Vietnamese enterprises abroad, including a Resolution by the government promulgated in 1999, a protocol by the Ministry of Planning and Investment on guidelines for investment abroad by Vietnamese enterprises and a protocol by the State Bank of Vietnam on foreign currency management towards investment abroad. However, during implementation, weaknesses have been become apparent.

The Investment Law promulgated in 2005 has overcome these weaknesses. In addition, the Resolution 78/2006/ND-CP has also created more favourable conditions for domestic investors in their investment abroad.

According to forecast by the Ministry of Planning and Investment, in the 2006-2010 period, Vietnamese investors will invest a total of US $1 billion abroad. Many projects invested abroad by Vietnamese businesses are in the process of negotiations. These projects are in sectors such as oil and gas in South-East Asia; electricity in Laos and China; mineral exploitation in Laos; communications in Laos, Cambodia, Hong Kong, Singapore, the US; transport in Singapore, Hong Kong and Russia and import and export and retailing in the US, EU, Japan and China.

This has proved that investing abroad has become a new trend for many domestic businesses.

By HAI THU

Vietnam's Petechim, refinery sign oil supply contract

The PetroVietnam Trading Corporation (Petechim), on January 23, signed a contract to provide the Dung Quat Oil Refinery with 6.5 million tonnes of crude oil a year when the country’s first refinery goes into operation in 2009.

Petechim – the newly-relaunched subsidiary of the Viet Nam Oil and Gas Group (PetroVietnam) – also reached a deal with Zarubezneft under which the Russian company will supply it with equipment.

Also on January 23, Petechim inaugurated its two new subsidiaries, namely Petechim Oil Trading, engaging in oil and gas import-export and trade, and Petechim Servimex, specialising in equipment and technical service import and export.

The name of Petechim is associated with Viet Nam ’s crude oil export operation since 1987. It has so far exported 215 million tonnes of crude oil, earning a revenue of more than 54 billion USD. (VNA)

Viet Nam to become energy importer by 2015

Viet Nam will become an energy importer by 2015 instead of being an exporter as at present, said a Japanese expert at a seminar on the nation’s energy master diagram held in Ha Noi on Jan. 23.

“Although Viet Nam has taken measures to effectively use its energy sources, its fossil sources are running out and the nation’s consumption demand will rise by 4.3 times in the next two decades,” K. Kanekiyo, head of the Japan International Cooperation Agency (JICA)’s researchers group on Viet Nam ’s master diagram, elaborated.

He went on to say that coal, oil and gas will be the nation’s major import energy products.

Experts also warned that Viet Nam ’s per-capita electricity consumption against GDP is much higher than that of other regional countries, i.e. Thailand , and nations with the same income level.

To meet the nation’s increasing energy consumption demand, experts suggested the nation have a master plan to conserve, develop and logically utilise gas, crude oil, coal, recycled energy.

The development of an effective and transparent energy market operating in accordance with economic principles in which energy prices are equal to international prices will help make every individual and business to use energy more economically, they noted.

Vietnam eyes oil production in Azerbaijan

The FINANCIAL -- According to APA-Economics, the Vietnam’s National Oil and Gas Corporation (PetroVietnam) takes great interest in oil projects in Azerbaijan.

“The Corporation is taking bidding procedures to acquire an oil well in Azerbaijan and if wins the contract, tapping oil will commence this year,” PetroVietnam General Director Tran Ngoc Canh told a media briefing.

He added that negotiations are under way.

PetroVietnam has so far signed 13 overseas exploration and exploitation projects. PetroVietnam pumped almost 22.7 million tonnes of oil in 2007, 100,000 tonnes of which were tapped in foreign countries. It also exported more than 15.7 million tonnes of oil for $8.8 billion.

Vietnam's Corporate News

HCMC - ACE Life Insurance Co., Ltd. announced yesterday 320% growth in new premiums for 2007 against the previous year. It also announced the interest rate on the cash value for Universal Life products effective from January 1, 2008 at 6.8% per year. The company also has plans to introduce a new variant of the Universal Life product in early 2008 to meet the requirements of special segments of the population.

HCMC - Saigon Thuong Tin Commercial Bank (Sacombank) has opened a new branch at 130-130A-132 Bach Dang Street in the central coast city of Danang. It now has 18 branches and 48 transaction offices in provinces from Quang Binh southward to Ba Ria-Vung Tau, Dau Tu reports.

HANOI - Vietnam Insurance Corp. (Bao Viet) yesterday made its debut as a financial and insurance group, with its operations covering life and non-life insurance, securities investment and banking among others. It has now also officially become a holding firm, owing Bao Viet Vietnam, Bao Viet Life and Bao Viet Fund Management Co., Dau Tu reports.

KHANH HOA - South Korea’s STX VINA has got an investment certificate from the authorities of Van Phong Economic Zone in the central Khanh Hoa Province. The firm will invest US$500 million in a project building oil, container and cargo ships. It is expected to employ 20,000 people, Thanh Nien reports.

QUANG NGAI - Lilama Electrical-Mechanical-Environmental Joint-Stock Co. has decided to invest VND152 billion in an environment project in Dung Quat Economic Zone in the central Quang Ngai Province. It will buy transport means and equipment to treat industrial, household and toxic waste, including from hospitals, Dau Tu reports.

HANOI - Vietnam Technological and Commercial (Techcombank) has reported pre-tax earnings of VND709 billion last year, an increase of 131% on the previous year. Its total assets had doubled to almost VND40 trillion as of the end of last year.

HANOI - Bellavita, the distributor of children products in Vietnam for the Italy-based Artsana, has opened a showroom at the Syrena Tower at 51 Xuan Dieu Street in Hanoi. This is its second showroom, Dau Tu reports.

BINH DUONG - Stada-VN, a Vietnamese-German joint venture, has inaugurated a factory that produces pharmaceutical products under the GMP EU standard in the Vietnam-Singapore Industrial Park in HCMC’s neighboring province of Binh Duong, Thanh Nien reports.

Vietnam welcomes 1,900 person cruise ship

High-end cruise liner docked in southern coast

The Rhapsody liner with some 1,900 people on board berthed Monday at Phu My Port in Ba Ria-Vung Tau Province on the southern coast.

The liner, which can hold up to 2,500 people, belongs to US-based Royal Caribbean International. Royal Caribbean International has chosen Hanoi Toserco, a domestic travel company, as a partner to introduce cruise travel to local Vietnamese. The agency arranged for representatives from some 30 domestic travel agencies to visit the Rhapsody during its brief dock. The ship left Phu My Port Monday evening for Thailand, and then heads to Hong Kong, Shanghai, and the Republic of Korea before returning to Vietnam next month. Reported by Mai Vong

Vietnam to build chess institute in south

Chess institute to be built in south

11:12' 24/01/2008 (GMT+7)

Minister Nguyen Danh Thai VietNamNet Bridge – FIDE wants to build an international chess institute in the southern city of Vung Tau, in Ba Ria – Vung Tau province, said FIDE Secretary General Ignatius Leons. In a meeting with Deputy Minister of Culture, Sports and Tourism cum Head of the General Department of Sports and Physical Training Nguyen Danh Thai on January 22, the FIDE Secretary General said the total capital needed to build the institute is around US$1 million and FIDE plans to kick off construction after the end of the World Young Chess Tournament held in Vietnam in late 2008. He said that the People’s Committee of Ba Ria – Vung Tau province has agreed to allocate 5,000sq.m and he hopes that the institute will train many young chess talents, not only for Vietnam but also the rest of the world.

The stunning cherry blossoms of Vietnam's Vung Tau, Long Hai

Visitors admire the blooming cherry trees in the southern beach city of Vung Tau When I moved to Vung Tau from the north, I came to be by the sea in a peaceful and clean city.

But I got more than I expected when I saw the numerous cherry blossoms gracing the city’s landscape. In the north, the peach blossoms are now in bloom, a signal to the people of the region that the Tet Lunar New Year is approaching. While I was looking for those same peach blossoms, I was pleasantly surprised by the flowering cherry trees of Vung Tau. None of the local residents I met could tell me when the cherry trees had been planted. They must have been there for decades. INFORMATION 1. Buses to Vung Tau are available at Ben Xe Mien Dong (East Bus Station) every 15 minutes from 5 a.m. to 7 p.m. Try Rang Dong, Mai Linh or Thien Phu bus lines. Cost: VND45,000 per person. 2. Mai Linh offers transit taxi for passengers to Vung Tau. 3. The Express Hydrofoil is available at Bach Dang Wharf for VND120,000 per person. 4. Hotels, bikes and motorbikes are available for rent in both Vung Tau and Long Hai. Each year, the cherry blossom season falls near Tet and lasts for almost a month. Cherry blossoms in Vung Tau differ from those in Japan in shape, but they have the same lovely pink and white col-ors and deliver the fresh feelings of spring. Along Tran Phu Street, close to Nghinh Phong Cape, little pink buds appear on cherry trees being bent by the ceaseless winds coming from the sea. For the most poetic scenes of cherry blossoms, wander along the roads near Nui Lon (Big Mountain) and Nui Nho (Small Mountain), the two mountains of Vung Tau. For the most densely populated area of cherry trees in full bloom, head about 25 kilometers out of Vung Tau to Long Hai. In Long Hai there is a newly constructed road connecting Vung Tau with Phan Thiet. This is no doubt one of the most stunning roads of Vietnam, with the sea and beautiful beaches on one side and pines, mountains, and abundant cherry blossoms on the other. As this road is newly constructed, it is in very good condition and suit-able for all methods of road trans-port, such as bicycles, motorbikes, cars and ox-drawn carriages. Reported by Thu Giang

Vietnam's Vinh Long province attracts 12 foreign-invested projects

VINH LONG — The southern province of Vinh Long to date has attracted 12 foreign direct investments (FDI) with a total capital of US$63.6 million, including five FDI projects inside the industrial zone and seven FDI projects on the outside.

In 2007, Vinh Long Province granted two new licences to Taiwan’s Bo Hsing Ltd Co and South Korea’s CJ Vina Agri Ltd Co with a total capital of $9.1 million.

Currently, eight FDI firms are operational and the remainders are being built and fitting equipment. — VNS

Vietnam entrepreneurs meet up in Russia

MOSCOW — The Association of Vietnamese Entrepreneurs in Russia (VINAENTRASSCO) held its fifth congress in Moscow last Saturday.

Delegates worked out a plan for the coming period, aimed at consolidating Vietnamese entrepreneurs in Russia, boosting the economy, tourism, and investment co-operation between Viet Nam and Russia. The association also aims to support Vietnamese entrepreneurs’ legal interests in the Russian market, encourage its members to abide by the country’s laws and increase investment in both Viet Nam and Russia.

Vietnam oil and gas services provider moves south

Oil and gas services provider moves south

BA RIA-VUNG TAU — Specialised oil and gas industry services provider PTSC Offshore Services Co. Ltd. was formally established in the southern province of Ba Ria-Vung Tau yesterday.

This affiliate of the Petroleum Technical Services Corporation, which actually began operations five months ago, has a charter capital of VND25 billion (US$1.56 million), and will provide installation, operational, and maintenance services and supply technical workers for petroleum-related projects.

Vietnam PTSC sees 2008 gross profit up 15.4 pct

Mon Jan 21, 2008 2:27am EST

HANOI, Jan 21 (Reuters) - Petroleum Technical Services Corp PVS.HN (PTSC), the third-largest firm on the Hanoi exchange, said on Monday it expected a 15.4 percent rise in gross profit to 300 billion dong ($18.6 million) this year.

The subsidiary of state oil group Petrovietnam, in a a statement on its Web site (www.ptsc.com.vn), also forecast revenues would rise 7.3 percent to 6.5 trillion dong this year.

The Ho Chi Minh City-based firm did not give a net profit forecast or comparative figures for 2006.

Shares in PTSC fell 3.28 percent to 94,400 dong on Monday, valuing the firm at $596 million.

It is the third-largest listed firm on the Hanoi exchange after Asia Commercial Bank ACB.HN and Kinh Bac City Development Share Holding Corp KBC.HN.

PTSC offers engineering services for oil and gas exploration, logistics and port services for other oil firms operating in Vietnam.

It owns 20 vessels, including a floating production, storage and offloading vessel. Crude is Vietnam's largest export earner, bringing a record $8.5 billion last year, 2.6 percent higher than 2006 due to high oil prices, according to government data.

The company said last month it had signed a contract to provide maintenance services to the $2.5-billion Dung Quat refinery, scheduled to start operations in the first quarter of 2009. ($1=16,105 dong) (Reporting by Ho Binh Minh; Editing by Darren Schuettler)

Aussie company secures Vietnam’s Defence

Business21 January 2008 02:18PM
By Lilia Guan

Network security vendor, Senetas has signed a non-binding memorandum of understanding (MOU) with Vietnam Information Security Laboratories (VISL), an agency of Vietnam’s Ministry of Defence, to distribute Senetas CypherNet high speed network encryption products.

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Australian-based Senetas designs and manufactures enterprise network security devices, including Layer 2 hardware encryption devices to guarantee data security. The Senetas CypherNet Encryption Security Platform provides a range of secure data encryption products.

Agreement for the partnership was reached following a recent meeting in Hanoi between Senetas CEO John DuBois and Major General Dr Nguyen Quang Bac, Director-General of the Vietnamese Defence Ministry’s Centre for Military Science and Technology.

General Nguyen said Vietnam wanted access to encryption technology for both classic and quantum cryptography.

Acting as a distributor for Senetas technology, the Ministry’s VISL would oversee security arrangements for other government agencies and would re-sell CypherNet to commercial enterprises, initially in banking and finance sectors.

Under the terms of the MOU, Senetas will partner with VISL to provide training, support, implementation, marketing programs and technology transfer for information security products and services for VISL and its customers.

Senetas will also provide, on a fee for service basis, engineering support and development services to VISL engineers on key projects nominated by VISL. Future research and development collaboration could include a purpose-built encryption platform for the Vietnamese Defence Ministry.

Senetas CEO John DuBois said Senetas would assist VISL to establish its own ‘Common Criteria & FIPS’ certification program in Vietnam by providing initial information and training in Australia followed by on-site training in Vietnam. It will also introduce VISL to relevant Australian government and international accredited testing agencies.

Dubois said the appointment of VISL as its reseller for Vietnam, realised Senetas’ goal to ensure it was represented in emerging market economies.

“Since Vietnam embraced its "Doi Moi" economic reform program in 1986 it has enjoyed consistent growth and with its membership of the World Trade Organisation in November 2006, Vietnam is well positioned to become a significant economy in this region,” he said.

Vietnam has traditionally been an agricultural exporter (fisheries products, tea, coffee, cashew nuts, pepper and it is the world’s second largest rice exporter), but other non-agricultural sectors of the economy have increased, including heavy industry and labour-intensive manufactured goods such as clothing and mining.

Over the past two years its economy has grown at more than 8 percent with one of the region’s lowest unemployment rates.

Vietnam Airlines finds over a ton of snakes on flight

Vietnam Airlines Find Snakes on a Plane

Vietnam Airlines found over a ton of ratsnakes on a flight from Bangkok. This will be the second time snakes were found in Vietnamese air cargo.

Ratsnakes, Ptyas Mucosus, are a protected species.

The snakes were found in over 60 boxes that came to Noi Bai in Hanoi on Thursday.

A reported 1,550 pounds of snakes were seized by Thai Airways during a flight to Hanoi last month.

Vietnam, China continue talks on Tonkin gulf

The Vietnam-China joint working group on the delineation of the sea area off Bac Bo (Tonkin) Gulf held its fourth round of talks in Beijing from January 17-18.

The two sides exchanged views and reached consensus on a number of issues, creating a basis for further negotiations to define sea territories between the two countries. Officials of the two countries agreed that the fifth round of talks would be held in Vietnam later this year.

New Austrian fire trucks for Vietnam

RICKMERS-LINIE GMBH & CIE. KG (HEAD OFFICE)

NEWS RELEASE

RICKMERS-LINIE SHIPS 26 FIRE-FIGHTING TRUCKS TO VIETNAM

The New Year is only a few weeks old but Rickmers-Linie, the Hamburg based specialist for breakbulk, heavylift and project cargoes, has already shipped an extraordinary consignment: 26 pieces, every one red and identical in every respect. This cargo was loaded onto the Pearl String vessel, Rickmers Seoul, at the beginning of January 2008. This ‘red cargo’ consisted of 26 fire trucks that Austrian manufacturer Rosenbauer is shipping to Vietnam where they will be used at different fire brigade stations across the country. The 26 trucks are 7.60m long and weigh eight tons each. They are scheduled to arrive in Haiphong on 5 February 2008. The booking of this cargo was carried out by the German forwarding agent deugro (Deutschland) Projekt GmbH, Stuttgart. The trucks were driven to the DP World Breakbulk Terminal at the Churchill Dock in Antwerp, where they were loaded onto the ocean vessel. Coincidentally, Rickmers Seoul was the first Rickmers-Linie’s “Round-the-World Pearl String Service” vessel to be handled in Antwerp by DP World Breakbulk since Rickmers-Line joined DP World Antwerp and Conti-Lines as a shareholder in the terminal on 1 January 2008.

For more information, contact:

Rickmers-Linie GmbH & CIE. KG (Head Office)
Neumühlen 19
Hamburg 22763
Germany
Phone: +49 40-38 91 77-200
Fax: +49 40-38 91 77-274

The Pearl of Asia: Vietnam needs scrap material to fuel its surge toward industrial development

Vietnam’s economy is no longer just about agriculture. The country is benefiting from macroeconomic momentum in industrialization and investment in the East Asia/Southeast Asia (SEA) region and globally, which has put it on the road to being a developed nation by 2020.

However, when it comes to exporting scrap materials to the nation of Vietnam, scrap companies are both new and late-comers to the county’s emerging need for scrap material.

Vietnam is a future industrial platform, being rich in metals history and in actual mineral deposits. However, most of these metals are being reprocessed for use outside of the country.

NAVIGATING VIETNAM

Vietnam’s government operates on a one-party system that is centrally planned. The 12th largest country (by population) in the world, Vietnam has adopted opportunity capitalism as its industrialization and development tool. The country, which is second only to China in GNP growth in East Asia, is characterized by three main industrial regions: Hanoi/Hai Phong (north), Danang (central) and Ho Chi Minh City (south). Vietnam must export its resources to survive and needs value-added inputs to advance.

To advance industrialization and exports, Vietnam recently announced the merger of its Trade and Industry ministries. According to news reports, the Vietnamese government hopes that by combining these ministries, it will be able to streamline the management of many industrial sectors. Korea, Japan and Taiwan have all invested in Vietnam’s industrialization, and so can North American scrap dealers.

However, scrap dealers should be aware that Vietnam’s Ministry of Natural Resources and Environment (MONRE) has much to say about 20 established categories of scrap, and this serves as the country’s scrap standards for now and directly affect shipbreaking initiatives undertaken in the country.

Vietnam’s emerging scrap demand is related to its surge toward industrial development. Vietnam plans to increase industrialization in the country by 20 percent, which will contribute 60 percent to its GDP. This means a drive to produce $4 billion per month in industrial goods. Steel production in Vietnam increased this year, but still cannot meet the country’s construction, infrastructure and other metals needs. However, imports of steel from China have emerged as a problem in Vietnam, as it is effectively holding back steel production development in the country, while local steel prices are rising as well.

RICH IN RESOURCES

As already stated, Vietnam is rich in mineral resources, possessing some 60 kinds, making it the seventh ranking country in the top 15 of basic resource countries. Among the minerals Vietnam has are copper, bauxite, zinc, titanium and iron. The Ha Tinh/Thach Khe mine in the north of Vietnam has 1.2 billion tons of iron, of which 300 million tons–the largest amount in SEA–is useful. A $230 million joint-venture operation between Canada and Vietnam was recently announced in the Tai Nguyen province of Vietnam.

Further, the industrial parks of Vietnam are the backbone of its industrialization and its move beyond agriculture. The country has more than 71 operational industrial parks, with 53 currently in development. These industrial parks, backed by allied seaport development, will form two corridors in Vietnam–the existing Vietnam Route 1 and the emerging Ho Chi Minh Highway (HCMH).

However, one should be aware that industrialization in Vietnam currently is dependent on a local partner, wherein a U.S. scrap exporter will need a trusted contact on the ground to develop the country’s scrap import potential in the near term. Vietnam has a history of stand-in trading companies of all sizes and skills which present the real buyers.

FUELED BY CAPITAL

Capital markets are fueling the momentum of Vietnam’s industrialization and investment, but it is still a country with many small and medium enterprises (SMEs). Nearly 70 foreign investment funds are looking to begin operations in Vietnam in the near term; but, it is major foreign and state enterprises that will influence the potential demand for American scrap.

It wasn’t Vietnam joining the World Trade Organization in January of 2007 that pushed Vietnam as an emerging investment hub as much as it was the Normal Permanent Trade Relations (NPTR) action by the United States in December of 2006. The NPTR coupled with the earlier U.S.-Vietnam Bilateral Trade Agreement (BTA) in December of 2001 has propelled Vietnam as a U.S. exporter and producer and has attracted industrial, minerals and mining investments. In the period 2001-2006, Vietnam’s exports to the U.S. increased by eight times, while U.S. exports to Vietnam increased by two times. Also, mutual visits by President Bush to Vietnam in late 2006 and the recent visit of Vietnam’s President Triet to the United States in June of 2007 have firmed the potential of the strategic partnership, which drives foreign development interests in Vietnam along with the country’s growth.

Major foreign minerals, metals and paper interests that use scrap commodities are already present in Vietnam. State-owned enterprises (SOEs) now populate and dominate the ferrous side of the scrap sales equation. But, privatization, similar to that taking place in Eastern Europe, is on the near horizon. American scrap exporters should address this change in Vietnam and build relationships for the future through representative sales now.

Thus, Vietnam is an emerging scrap market with major foreign and U.S. investment firms focusing on investment and development project deals there. This means that Vietnam has access to the funds needed to industrialize as well as the push to do so in the near term, which in turn could mean a full range of scrap commodity sales soon; but, locally controlled procurement is the Holy Grail.

The European scrap export community already knows about the potential of scrap sales in Vietnam, with firms such as ArcelorMittal, based in India, having direct representation on the ground; Alcoa will be present in future bauxite mining. Additionally, the American scrap recycling industry has a major role to play, particularly in ferrous scrap sales for the Vietnam steel industry, which is growing exponentially as foreign investors are eyeing huge steel projects throughout Vietnam.

The country is hot on metals and minerals, with paper in pursuit. It has established trade associations for commodities like steel, plastic and paper. However, it does not yet have an organized scrap industry association.

Recyclers should approach the current unorganized Vietnamese scrap industry with the knowledge that everyone there is in the business of trading. Also, knowing that Vietnam has a cultural history of conflict, one should keep in mind that building relationships take time.

VIETNAM’S INDUSTRIALIZATION HIGHLIGHTS

STEEL

Vietnam’s capacity to refine steel ingot for the production of steel was estimated to reach 875,000 tons in 2006. Yet the country as a whole imported some 2.5 million tons of steel ingot throughout the year. Vietnam’s policy is to increase steelmaking capacity. The country has three major plant locations: Hanoi (Thai Nguyen and Hung Yen provinces), Hai Phong City and the HCMC areas. One half of the steel plants are in the HCMC area, with major new developments in nearby Vung Tau, at the South China Sea. For example, in Vung Tau, POSCO/Korea built a $361 million plant last fall, and Vietnam Steel Corp. and India’s TATA (Phu MY) and SMC are also looking to build in Vietnam, as is Taiwan’s E-United Group.

ALUMINUM

Vietnam Minerals Corp. (VIMICO) started work a year ago on a bauxite complex for export in Lam Dong in central Vietnam that will be capable of producing 600,000 tons per year when it becomes operational in 2009. This venture is based on a reserve of 225 million cubic meters, focused probably for export to Japan. Alcoa is in Dak Nong Province (central Vietnam), and Japanese companies are in Vung Tau (south Vietnam). Asia Packaging operates a can factory in Binh Duong Province (in the south). Additionally, United Company Rusal has announced a representative office in Vietnam.

US$ 1.3 billion tourism park project licenced

Good Choice USA-Vietnam Ltd.Co has been recently approved by the Ba Ria- Vung Tau People’s Committee to carry out construction of a tourism park worth nearly US$ 1.3 billion.

The park under the theme “Vung Tau Wonderful World Theme Park” will be constructed on an area of 155ha in Bau Trung, Vung Tau city.

“This is the biggest foreign-invested tourism project in the province," said Mr Mai Ngoc Thuan, vice director of the province’s Planning and Investment Department.

Aside from the recreation, shopping, exhibition areas, the park will include one five-star hotel of 2,500 rooms and four compounds of five-star hotels with 4,000 rooms.

The total capital of US$ 1.299 billion for the project will be added to the initial US$ 466 million as following: US% 16 million within 60 days after the approval day and the remaining US$ 450 million in the following 10 months. (Saigon Times)

Vietnam-Laos international border gate inaugurated

The authorities of the Central Highlands province of Kon Tum and Laos’ Attopeu province on January 18 held a ceremony to open the Bo Y-Phu Cua International Border Gate in order to facilitate trading activities between the two countries.

Vietnamese Deputy Foreign Minister Dao Viet Trung and his Lao counterpart, Phongsavat Boupha, who is also Head of the Laos Border Committee, were present at the event.

Being aware of its important position in socio-economics, culture, security and defence, the governments of Vietnam and Laos agreed to upgrade the Bo Y-Phu Cua into an international border gate.

The Bo Y International Border Gate Economic Zone has to date attracted 34 projects with a total registered investment capital of over VND 19 trillion (over US $1.2 billion). Of which, 11 projects have been zoned off land and four others, capitalised at nearly VND 422 billion (US $26 million), received investment licences.

PetroVietnam May Import Oil for First Refinery, Chairman Says

Vietnam, Southeast Asia's third- largest oil producer, may import crude this year for trial runs once the nation's first refinery is completed at Dung Quat Bay, the head of the state oil company said.

Vietnam Oil & Gas Corp. may process lower-quality oil from overseas instead of local crude, Dinh La Thang, chairman of PetroVietnam, as the company is known, said today. Vietnamese oil, which fetches premium prices in Asian markets, is more expensive because it contains less pollutants such as sulfur.

``Vietnam may import crude oil for its refineries because of economic effectiveness,'' Thang said in a phone interview, declining to say where or when the oil will be bought.

Vietnam's government has requested that the Dung Quat refinery start operations by the end of the year, Thanh Nien newspaper said Jan. 9, citing Deputy Prime Minister Hoang Trung Hai. The plant in Quang Ngai province is due to begin full operations in 2009.

Record economic growth is spurring fuel demand, prompting increased purchases of diesel and gasoline from refiners in China, Taiwan, Singapore and other countries.

Ho Chi Minh City-based PetroVietnam Trading Co., known as Petechim, a unit of state-owned PetroVietnam, may import 1.2 million barrels of crude oil this year for trial runs at the Dung Quat, Lao Dong newspaper reported yesterday, citing Nguyen Xuan Thang, general director at PetroVietnam Trading Co.

Bach Ho

Petechim sells a portion of the state oil company's Bach Ho crude variety through long-term contracts at a premium of $6.15 a barrel to the price of Indonesian grade Minas crude oil, a benchmark for medium-gravity, low sulfur crude in Asia, as assessed by two oil-pricing services, the Asian Petroleum Price Index and Platts.

Trafigura Beheer BV, an energy and commodities trader, on Sept. 7 signed an agreement to supply crude oil to Vietnam's refineries for 30 years, starting in 2009 when the first plant is set to be completed.

Under the accord signed on Sept. 7 in Ho Chi Minh City, Trafigura will provide crude oil to Vietnam's first and future refineries, said Ho Tung Vu, deputy director general of PetroVietnam Trading.

In 2006, Vietnam produced 367,000 barrels a day of oil, according to BP Plc's Statistical Review of World Energy. Indonesia and Malaysia are the two biggest crude oil producers in Southeast Asia. (Bloomberg)

New marine port in Vietnam's Ba Ria – Vung Tau

The signing ceremony between Hoa Sen Group and Gemadept in HCM City VietNamNet Bridge – A 55ha international port will be set up in 2008 within Cai Mep – Thi Vai port of Ba Ria – Vung Tau province, a senior executive of Hoa Sen Group said. The Hoa Sen – Gemadept international port which is a joint project between Hoa Sen Group and Gemadept company is one of the province’s critical infrastructure projects in the number 5 complex that have been approved by the Prime Minister in 2005 including port systems such as HCMC, Dong Nai and Ba Ria – Vung Tau ports. The port will be a modern marine port located on the area of 55 hectares, including 7 hectares of port area with a 300 meter long wharf. The port logistics area is about 48 hectares located in front of the road 965 which connects Cai Mep – Thi Vai port to the highway 51 moving to Bien Hoa and Vung Tau city. The logistics area will include an international container depot (ICD), warehouse system, container entry ports, container freight station (CFS) and goods express entry port service. A report made by Vietnam’s Marine Administration foresaw to the year 2010, there will have about 200 million tones of goods moved through Vietnamese marine ports. This number will be 340 megatons in the coming years. By these developments to the year 2010, Vietnam has to double the marine system capacity it has at present, said the report. Hoa Sen Group is operating in coated steel and plastic pipes and it is the only enterprise in Vietnam to have a closed distribution system with 80 direct distribution networks spread nationwide. The co-operation to set up Hoa Sen – Gemadept logistics and international port Corporation is the new development step of Hoa Sen and Gemadept.

Vietnam's Weekly Business Brief

Exports to US to hit 13 billion USD Viet Nam ’s exports to the US are forecast to reach 13 billion USD or more in 2008, representing a yearly increase of 28 percent, said the Ministry of Industry and Trade (MIT). Garment and textiles will continue to top the list of key hard currency earners as its export turnover is expected to attain 5.4 billion USD this year, surging 25.6 percent against 2007. The US is now Viet Nam ’s largest garment importer, accounting for 55 percent of the country’s total export turnover. Seafood is expected to fetch 850 million USD, up 14.9 percent, while woodwork will bring home 1.1 billion USD, soaring 23.6 percent. Around 120,000 tonnes of coffee will be shipped to the US this year, earning between 192-200 million USD. The ministry also forecasts this year’s export turnover to the whole American market will reach 14.6 billion USD, a 25.2 percent increase over last year. Viet Nam-Russia handicraft exhibition opens An exhibition showcasing handicraft and art articles of Viet Nam and Russia opened in Ha Noi on January 16. The event is a cultural exchange activity aiming at strengthening the traditional cooperation, solidarity and friendship between Viet Nam and Russia. Attending the opening ceremony were representatives from the RCSC and the Centres of Science and Culture of China, the Republic of Korea, Malaysia, Cambodia, Indonesia and Mongolia. The exhibition was jointly held by the Russian Centre for Science and Culture (RCSC) and the Viet Nam Handicraft and Art Articles Export and Import Joint Stock Company (ARTEXPORT Viet Nam). Vietstarbank to be operational in May The Viet Nam Star Commercial Joint Stock Bank (Vietstarbank) will officially begin operation in May. The bank held the first shareholders’ meeting on January 16 after receiving the State Bank Governor’s approval for its establishment. The meeting approved the bank’s charter and elected members of the management board for the 2008-2013 period. With a chartered capital of one trillion VND, the bank has 28 shareholders, including three main shareholders. They are the Viet Nam Technological and Commercial Joint Stock Bank (Techcombank) which contributes 100 billion VND, the Tan Tao Industrial Zone Company (Itaco) (100 billion VND) and the Viet Nam National Chemical Corporation (Vinachem) (50 billion VND). Viet Nam lauds IFAD’s decision to set up rep. office A leading government official has applauded the International Fund for Agricultural Development (IFAD)’s decision to set up a representative office in Viet Nam , saying that the establishment would help make bilateral cooperation more efficient. Deputy Prime Minister Nguyen Sinh Hung made the remark in Ha Noi on January 16 while meeting with the visiting IFAD President Lennart Bage. Deputy PM Hung thanked the UN in general and the IFAD in particular for their assistance to Viet Nam ’s efforts in poverty reduction and socio-economic development. He said Viet Nam would make full use of the benefits brought by IFAD-funded projects as well as international organisations’supports to improve living standards for local people. Lennart spoke highly of the achievements made by the Southeast Asian country in the improvement of living conditions, particularly for those in poor rural areas. He said Viet Nam was a good example in carrying out development activities. After the meeting, in the witness of Deputy PM Hung, Lennart signed an agreement with a representative from the Ministry of Foreign Affairs to establish an IFAD office in Viet Nam . Agreements on a non-refundable aid of 300,000 USD for Viet Nam’s rural development strategy and a 35 million USD business development programme for poor rural people in the Mekong Delta province of Ben Tre and the northern mountainous province of Cao Bang were also signed by the IFAD president and representatives from the Ministries of Agriculture and Rural Development and the Ministry of Finance. Thanh Hoa: confectionery joint venture inaugurated The KIKI-Lam Son Joint Stock Food Company, a joint venture between the Lam Son Sugar Joint Stock Company and Singapore’s KIKI Food Processing Group, was officially put into operation in central Thanh Hoa province on January 16. The KIKI-Lam Son Joint Stock Company is capable of producing more than 3,000 tonnes of rice vermicelli and high-quality confectionery a year for both local market and export. The 50-year joint venture has an investment capital of 2 million USD, of which the Vietnamese side contributes 49 percent and Singaporean side, 51 percent. It has recruited 300 local workers. Workshop explores Italy-Viet Nam cooperation possibilities The Vietnamese Embassy joined with the Italian National Agency for New Technologies (ENEA) and the Italy-Viet Nam Friendship Association in Lazio held a workshop on January 15 to explore cooperation possibilities between Viet Nam and Italy . Addressing the workshop, Chairman of the Italy-Viet Nam Friendship Association of the Lazio region, Franco Iachini, stressed that the association will continue supporting Viet Nam during its renewal (doi moi) process, particularly in addressing environmental pollution, food processing and dioxin/Agent Orange detoxification. He affirmed that the association will serve as a bridge to foster the cooperation between the two countries in these fields. Ambassador Nguyen Van Nam said he hoped the ENEA will assist Viet Nam in technology, power, environmental protection and food protection. The ENEA said it is willing to receive Vietnamese students to study at the institute. Ba Ria-Vung Tau ushers in new year with 1.35 bln USD in FDI The year 2008 got off to a flying start for southern coastal Ba Ria-Vung Tau province as it welcomed three more foreign invested projects, bringing in a total of almost 1.35 billion USD in only the first two weeks of the year. The province has vowed to maintain its place in the ten most competitive provinces in the country this year. Addressing a meeting with foreign-invested businesses’ leaders in the province on Jan. 15, the provincial authorities committed to further simplifying administrative procedures and training human resources in order to create a better investment environment for foreign investors. Last year, Ba Ria-Vung Tau was rated 8 th among the country’s provinces and centrally-run cities in terms of competitiveness, a remarkable jump from the 17 th place in 2006. As a result, the province attracted 57 foreign-invested projects with a total capital of more than 1.2 billion USD last year, bringing the total number of foreign-invested projects to 196 with a combined capital of around 7.6 billion USD. Company successful in producing coking coal The Viet Nam-China Minerals and Coke Company in northern mountainous Cao Bang province has shipped it first batch of 100 tonnes of coking coal to its customer. The company is a joint venture between China-based Xin Chang Cheng Coke Company, northern coastal Quang Ninh province’s An Sinh Company and Cao Bang’s Production and General Services Company. It started building a 300,000-tonne-per-year coke production factory in Duc Xuan commune, Thach An district with an investment capital of more than 300 billion VND (18.7 million USD) on March 10, 2007. The factory is now capable of turning out 150,000 tonnes of coke per year. The successful production of coking coal meeting European standards will help supply enough materials for the provincial metallurgy industry. Viet Nam Airlines aims at 1.43 billion USD in revenue Vietnam Airlines, the national air carrier, plans to hit 22.8 trillion VND (1.43 billion USD) in revenue this year, a 12 percent rise over 2007, the carrier reported January 16. The airline is set to carry more than 8.95 million passengers and 124,930 tonnes of cargo this year, up 12 and 8.5 percent respectively from last year’s figures. Despite the rising cost of fuel and intense competition in both the domestic and international markets, Vietnam Airlines managed to register a positive performance in 2007 with a turnover of 20.37 trillion VND, a climb of 15.5 percent against the previous year. Its before tax profit in 2007 was around 370 billion VND, 6 percent higher than the year before. Last year, the airline transported over 8 million passengers and 115,380 tonnes of cargo on both domestic and international flights. However, Vietnam Airlines also reported that the number of flights that were delayed or postponed was 11,500 last year, or about 16 percent of its flights. The carrier spent nearly 4.75 trillion VND (297 million USD) to expand its fleet last year, signing contracts to buy eight Boeing 878-8 airplanes, ten A350-900s, ten A321-200s and five ATR 72s, all to be delivered from now until 2020 under plans ratified by the Government. Vietnam Airlines’ subsidiary VASCO – the Vietnam Air Service Co – carried 152,540 passengers and earned 104 billion VND in revenue last year. US law firm opens office in HCM City US-based Duane Morris LLP, opened an office in Ho Chi Minh City on January 16 as part of its expansion plans in the Asia-Pacific region. It will offer consultancy on corporate, securities, mergers, and acquisitions issues, complex financial transactions, energy, environment and resources, and others. Duane Morris LLP is one of the 100 largest law firms in the world. Viet Nam-Russia handicraft exhibition opens An exhibition showcasing handicraft and art articles of Viet Nam and Russia opened in Ha Noi on January 16. The event is a cultural exchange activity aiming at strengthening the traditional cooperation, solidarity and friendship between Viet Nam and Russia. Attending the opening ceremony were representatives from the RCSC and the Centres of Science and Culture of China, the Republic of Korea, Malaysia, Cambodia, Indonesia and Mongolia. The exhibition was jointly held by the Russian Centre for Science and Culture (RCSC) and the Viet Nam Handicraft and Art Articles Export and Import Joint Stock Company (ARTEXPORT Viet Nam).

Canada Talisman-led venture finds oil offshore Vietnam

HO CHI MINH CITY, Jan 18 (Reuters) - A Vietnam oil venture led by Canada's Talisman Energy Inc (TLM.TO: Quote, Profile, Research) has discovered a new offshore oil field in Vietnam with potentially sizeable crude oil reserves, state media reported on Friday.

The Thang Long Joint Operating Company, 40-percent owned by state oil Petrovietnam and 60 percent by Talisman, Canada's No. 3 independent oil producer, said tests at the oil field, named Hai Su Den (Black Sea Lion), showed a crude oil flow of 15,000 barrels per day, the Tuoi Tre newspaper reported.

The oil field is located in block 15-2/01, about 60 km off the coast of the southern oil hub province of Ba Ria Vung Tau, the report said.

(Reporting by Nguyen Nhat Lam; Editing by Valerie Lee)

Vietnam's 2008 oil export projections

2008’s crude oil exports: setting new record price

07:25' 17/01/2008 (GMT+7)

VietNamNet Bridge - In spite of being an oil exporter, Vietnam will face challenges from this year on as the country has seen a sharp reduction in the amount of crude oil for export and expects growing import demand in the upcoming years to supply materials for oil refineries. According to economic expert’s forecasts, 2008 will witness oil price surging to a new price level, representing a record high over the same period of previous years. Two major factors controlling the market are the law of supply and demand and political instability in key oil exporting countries. Crude oil remained record high Oil demand skyrocketed in 2007 while supply could not keep pace. This is the main reason pushing the oil price up. According to economic experts, in developed industrial countries such the US, Japan, and Western Europe, although economic growth slowed down, demand still increased. However, reviewing the sources, OPEC currently accounts for one third of total oil worldwide. Thus, OPEC by itself cannot effectively stabilize the market in a critical situation. Other factors influencing energy prices were the West's standoff with Iran over its nuclear program, attacks by Nigerian rebels on that oil-rich nation's crude infrastructure and Turkish attacks on Kurdish rebels in northern Iraq, which sparked concerns that the rebels would retaliate by attacking an oil pipeline. Vietnam reduced export amount Mr. Nguyen Xuan Thang, General Director of Petechim Oil and Gas Commercial Company said that in spite of being the third largest oil exporter in Asia, after Malaysia and Indonesia, in 2007, the amount of exploited oil decreased about 1.5 percent, with crude oil export posting about 15.3 million tons. Nevertheless, due to a surge in oil price, the total export value still reached 8.59 billion USD, an increase of 21 percent over the target. Assessing the output reduction, one expert in the oil and gas sector, pointed to some domestic oil fields reduced output as the cause is missing the target of tapping 1 million ton crude oil. PetroVietnam set a target to exploit 16 million tons of oil this year, export 15.65 million tons of crude oil and condensate, with an export turnover of 7.6 billion USD. With the current oil price, many experts forecast that this year’s export turnover will remain at record highs or exceeding that of 2007 (8.78 billion USD). Mr. Thang said that Vietnam will become an oil importer in the near future when the Dung Quat oil refinery comes into operation and PetroVietnam directes Petechim to raise the share of import crude oil to replace domestically exploited oil.

Vietnam's Gemadept to build $62 million port

HANOI, Jan 17 (Reuters) - Gemadept Corp GMD.HM has signed a contract with another Vietnamese company to build a port in southern Vietnam at a cost of 1 trillion dong ($62 million), a Gemadept official said on Thursday.

Gemadept, one of Vietnam's three largest container port operators, would contribute 51 percent of the investment in the port expected to be operational by 2010 and handle 50,000 dead-weight-tonne vessels, the official told Reuters.

Ho Chi Minh City-based Gemadept signed the contract with the Hoa Sen group, which would would contribute 45 percent of the investment, and other domestic investors would cover the remaining 4 percent, he said by telephone. The 55 hectare (136 acre) port in the southern province of Ba Ria-Vung Tau would be able to handle 2 million tonnes of cargo a year from 2010 in its first phase, the official close to the project said.

"We would raise the cargo handling capacity to 4 million tonnes a year in the second phase," he added.

Shares in Gemadept closed 4.35 percent up at 120,000 dong on Wednesday, valuing the company at $323 million, the 17th largest of the 141 firms listed on the Ho Chi Minh Stock Exchange .VNI.

Vietnam's economy is growing at a robust 8 percent a year, putting pressure on ports to expand and upgrade.

Container volume growth of 19.8 percent per year in 1995-2006 would accelerate to 25 percent in coming years, industry experts say. ($1=16,106 dong) (Reporting by Ho Binh Minh; Editing by Michael Battye)

Talisman Energy Announces a Second Oil Discovery Offshore Vietnam

Tuesday, January 15, 2008; Posted: 07:10 AM

CALGARY, ALBERTA, Jan 15, 2008 (MARKET WIRE via COMTEX) -- TLM | news | PowerRating | PR Charts -- Talisman (Vietnam 15-2/01) Ltd., a wholly owned subsidiary of Talisman Energy Inc. (TSX: TLM | news | PowerRating | PR Charts ) (NYSE: TLM), has tested the Hai Su Den (HSD) exploration well offshore Vietnam. This was Talisman's second oil discovery in Vietnam in 2007, following up on the Hai Su Trang (HST) Miocene sandstone discovery on the same offshore block announced earlier in the year.

The HSD well is located in Block 15-2/01, 50 miles off the east coast of Vietnam on trend with large oil and gas discoveries in the Cuu Long Basin. The well targeted a fractured basement reservoir and was drilled to a total vertical depth of 11,168 feet, encountering a hydrocarbon bearing interval of approximately 2,400 feet. The well tested at a peak rate of 13,450 bbls/d of light oil and 6.87 mmcf/d of natural gas, constrained by test equipment.

"This is a very promising discovery," said John Manzoni, President and Chief Executive Officer. "I am optimistic that our two discoveries in Block 15-2/01 will form the basis of a new core producing area for Talisman in Vietnam, with the potential for upside from additional exploration wells."

The Thang Long Joint Operating Company, a special purpose joint venture company established for the purposes of conducting all operations on Block 15-2/01, plans to drill four more wildcat exploration wells in 2008 to evaluate features on trend with the HSD discovery. Talisman holds a 60% working interest share in any commercial discoveries on Block 15-2/01 with PetroVietnam Exploration and Production Company holding the remaining 40%.

Talisman Energy Inc. is an independent upstream oil and gas company headquartered in Calgary, Alberta, Canada. The Company and its subsidiaries have operations in North America, the North Sea, Southeast Asia and North Africa. Talisman's subsidiaries are also active in a number of other international areas. Talisman is committed to conducting its business in an ethically, socially and environmentally responsible manner. The Company is a participant in the United Nations Global Compact and included in the Dow Jones Sustainability (North America) Index. Talisman's shares are listed on the Toronto Stock Exchange in Canada and the New York Stock Exchange in the United States under the symbol TLM.

Premier Oil Provides Year-end Operations Update

Monday, January 14, 2008

Operations
• Average production rates for 2007 8% higher than 2006 at 35.7 kboepd; year end run rate of 38.8 kboepd (December average);
• Strong oil and gas prices realised in second half; full year average of $74.6 per barrel, a 3% premium to Brent;
• Increased balance sheet strength with cash balances of around $330 million at year end.

Development Assets
• Major development projects progressing as planned to build Premier’s production to 50,000 boepd by end 2010.
• Chim Sao (Vietnam), Alur Siwah and Gajah Baru (Indonesia) expected to reach project sanction this year and on-stream in 2010.

Drilling Update
• Programme of approximately 18 development wells and up to 12 exploration and appraisal wells planned for 2008;
• Forward programme:
- Up to 24-month Vietnam campaign expected to commence in mid-March 2008;
- Monte Cristo-1 well in Philippines expected to spud 1Q 2008;
- Bream appraisal well in Norway expected to spud during March or April 2008;
- Significant development well programme in Pakistan includes accessing a number of deeper exploration prospects;
- Qadirpur deep testing programme scheduled for April 2008.
- Infill drilling at Wytch Farm, Scott and Chinguetti

New Joint Venture
• Execution of joint venture agreements with EIIC planned later this week.

Board changes
• Appointment of Mr David Lindsell and Mr Michel Romieu as non-executive directors.

Simon Lockett, Chief Executive, commented:
"2007 saw significant progress on Premier’s development projects as important gas contracts in Indonesia and Singapore were signed. We begin 2008 in strong financial shape, with an active exploration programme, especially in Vietnam, and on target to deliver our stated production target of 50,000 boepd by the end of 2010."

Premier Oil aims for 50,000 BOE/d by 2010

Filed from Singapore 1/14/2008 12:20:56 PM GMT

UK: UK's Premier Oil is aiming to lift production to 50,000 BOE/d by the end of 2010, up from the average 38,800 BOE/d for 2007.

Premier Oil is expecting to sanction the Chim Sao shallow water project offshore Vietnam, the onshore Alur Siwah project and the offshore Gajah Baru project in Indonesia this year, with the aim of starting production in the three projects in 2010.

In 2007, the company's yearly production averaged 38,800 BOE/d, about eight per cent higher than the previous year.

Strong oil and gas prices realised in second half of the year boosted full year average crude selling price to US$74.6 a barrel, a three per cent premium to the New York Brent Crude price.

In 2008, Premier plans to drill about 18 development wells and up to 12 exploration and appraisal wells.

Premier is set to embark on a 24-month drilling campaign using Premium Drilling-managed jackup WilBoss offshore Vietnam in mid-March 2008 and to drill the Monte Cristo-1 offshore well in Philippines using a land rig in first quarter of 2008. In Pakistan, the explorer will be undertaking development driling onshore Qadirpur to "access a number of deeper exploration prospects" in April 2008.

Elsewhere in Europe and Africa, Premier is planning to drill an appraisal well in Bream offshore Norway in March or April 2008, infill wells in Wytch Farm and Scott off UK and Chinguetti offshore Mauritania.

Vietnam seen as center for GE’s growth in SEA

GE president for South East Asia Stuart Dean (L) talks with students of Hung Vuong University in HCMC last week By Mong Binh The Saigon Times Daily HCMC - The president of General Electric (GE) for South East Asia has underlined that the U.S. group places Vietnam as center for its growth in the region and can help develop human resources for global competition. “Vietnam is playing a central role in GE’s growth strategy for South East Asia as we focus on emerging markets such as this,” Stuart Dean said during his trip to Vietnam last week. Dean told lecturers and students of Hung Vuong University in HCMC that GE had strong commitment to helping Vietnam and was attempting to provide this country as many chances of accessing its resources and expertise as much as possible. Dean spent most of his two hours at the university to talk about the experiences and practices in how GE’s leaders develop leaders from within the group in accordance with GE’s history of corporate responsibility and culture. Dean also introduced a “leadership ecosystem” concept that GE has developed based on the combination of factors that create synergy among employees and develop their potential to become leaders. “We are a company built on principles, powered by a culture of performing with integrity. It is the result from the way our company develops and energizes people, leading them to become the next generation of leaders,” Dean said. GE spends US$1 billion each year in human resources development. As the result of GE’s effort in developing human resource, GE has been named in Fortune’s list of “Companies for Leaders” by growing its initiatives in 2007. Dean’s presentation is just another effort of GE to share its resources and expertise to Vietnam. The group staff shared best-practice cases in corporate governance during the Corporate Governance and Transparency Workshop in Hanoi last year. The presentation was part of Dean’s recent visit to Vietnam, where he also participated in the “Business Roundtable with the Government of Vietnam” in Hanoi last week. He was among five panelists to discuss with Prime Minister Nguyen Tan Dung on the investment environment and prospects of Vietnam. GE has been active in Vietnam since 1993, supplying commercial aircraft engines, aircraft leasing, locomotives, turbines, generators, gas compressors, diagnostic equipment, electrical and electronic equipment, lighting, water treatment chemicals and other products. GE Money, a provider of consumer financing services, also set up an office in Hanoi in 2006. Besides, GE also contributes to the local community through scholarships granted to tertiary students, and supports for social projects.

Vietnam strives to export more to China

By Fei Honghai, Bui Minh Long

HANOI, Jan. 14 (Xinhua) -- Vietnam is taking some specific measures to strengthen export to China, in a move to increase export turnovers from 3.2 billion U.S. dollars in 2007 to 4 billion dollars in 2008, some 5.4 billion dollars in 2010 and 11.1billion dollars in 2015, according to latest plan made by the Vietnamese Ministry of Industry and Commerce.

The ministry will offer domestic enterprises more precise consultations and assessments about the Chinese market, and ask them to regard it as a potential market. It is advising the enterprises to intensify export of seafood, tropical fruits and vegetables, cashew nuts, rice, sliced manioc and cassava, electric wires and cables, and wood-based imitation antiques.

The ministry is also instructing local firms to do business with well-performing Chinese companies in a long-term and stable manner, and proposing relevant ministries and sectors give assistance to enterprises which engage in producing and trading large volumes of goods for the Chinese market and improve quarantine operations at border gates to facilitate export.

Vietnamese firms are trying to gain bigger export turnovers by exporting more high-value products to China. The state-owned Vietnam Rubber Corporation will limit the export of unprocessed latex to the Chinese market, and intensify the export of semi-processed or processed rubber items instead, while local seafood and woodwork enterprises are penetrating into major Chinese cities.

Vietnamese seafood exporters have made plans on selling more products to China's southwestern localities, instead of focusing too much on the United States and the European Union (EU), and local woodwork producers will try to export more imitation antiques to the two Chinese cities of Beijing and Shanghai.

To cope with smaller export earnings of tropical fruits and vegetables exported to China in recent years due to fiercer competition from Thai counterparts, some Vietnamese enterprises are boosting export of special products having high-quality and fine packages, including dragon fruits, coconuts, longans, water melons, bananas and litchis.

xpats not immune to Vietnam property price fever

E

Vietnam’s property price fever is infecting not only locals and the national media. It’s getting foreigners and overseas media hot and bothered as well.

Singapore-based The Straits Times ran a report in November headlined “Vietnamese feel the pinch of red-hot home prices.” Roger Mitton, the correspondent in Hanoi, tells a story of physician Nguyen Thu Huong who lives with her husband and daughter in a small suburban apartment in Hanoi. Huong has to pay US$60 a month rent, which is half of her monthly salary, for the 35-year-old apartment. In another story, Tran Minh Phuong, 23, an accountant at a toy-making company in Ho Chi Minh City (HCMC) says she earns VND1.8 million ($113) a month and has to pay a third of that in rent for her little one-room apartment. They all dream of owning their own apartments but with property price sky-rocketing that is simply impossible. Not only locals but about 81,000 expats in Vietnam have also suffered from soaring rents and greedy landlords, even though their income is much higher. The Financial Times covers the situation in a recent report entitled “Vietnam housing costs go through the roof” by Amy Kazmin. According to the article, not so long ago a foreigner could rent a house with a backyard and a swimming pool in downtown Ho Chi Minh City for about $2,000 a month. Those good old days have gone. Just recently, a foreign business-man found an apartment in the city after a three-month search. He signed a three-year rent contract and was preparing to move in when the landlord told him he wanted to cancel the deal. It turned out that someone else was willing to pay twice the price to rent the house. The poor foreigner was lucky enough to finally secure the apartment by agreeing to increase his rent by half. The story reflected vividly the shortage of housing for high-income foreigners. According to local real estate agents, the high rent in Vietnam would be a shock to anyone who thought he or she could afford a luxury place here. Vietnam’s booming economy has lured an increasing number of foreigners to the country, creating a high demand for housing. Meanwhile, according to statistics from CB Richard Ellis (CBRE) real estate agency, HCMC has nearly 400 apartment buildings for rent, 97 percent of which were occupied even though rent soared by 12 percent to 20 percent between late 2006 to mid-2007. Villas in big cities have enjoyed rent rises by up to 15 percent every year. Property prices in Vietnam are, in fact, on a par with those in Bangkok and Kuala Lumpur. The rent rise has discouraged investors. The Financial Times report quoted Fred Burke from the Baker & McKenzie law firm as saying that housing became a big concern to investors - and law firms - who wanted to transfer staff to Vietnam. The problem hit not only the newcomers, the report said. Richard Leech, CBRE executive director, had recently had to move out of his rented house. His landlord had sold it to another person who wanted to double the rent. By Thuc Minh

Vietnam's Glass Makers Booming

Glassmakers prefer to keep it local

15:35' 14/01/2008 (GMT+7)

VietNamNet Bridge – Most construction glassmakers are paying attention to meeting local demand rather than promoting exports, said local leaders in the industry. Patterned float glass by Dap Cau Glass Co in the northern province of Bac Ninh. Glassmakers are being urged to rapidly improve quality and modes of production in order to compete with various types of imported glass entering the local market. Viglacera Float Glass Co deputy director Luyen Cong Minh said that the company posted a modest export value of only about US$5mil last year despite having several orders at far higher value. He pointed to the high prices fetched on the domestic market compared to export prices as a major reason for his poor export turnover. Viglacera Dap Cau Sheet Glass Joint Stock Co general director Nguyen Thanh Tri said the company allocated only 5-10% of its output for exports with the remainder destined for domestic partners. Construction glass exports were considered a tool to regulate the market because enterprises only turned their thought to exports when local demand was low, Minh said. Viet Nam Glass Association general secretary Le Minh Tuan also pointed out that the increasing price of raw materials and high transportation costs were major challenges that have made enterprises hesitant to boost exports. Glassmakers have given top priority to the domestic market as local demand was increasing, but with the current growth rate it was a suitable time for glassmakers to step up exports, said Tuan. To this end, they should take steps to further improve product quality, increase output and seek new markets for their products, he suggested. Few glassmakers were able to produce high-quality float glass products sought after in international markets, leaving Cambodia and Thailand as the leading export markets. Stepped-up operations at two plants producing high-grade construction glass in Chu Lai Open Economic Zone in Quang Ngai Province, and in Ba Ria-Vung Tau Province, with a combined capacity of 1,200 tonnes per day, would help raise the ratio of quality glass to 73%, the association said. The glass sector would then be able to move more boldly on strict markets like Japan, Singapore and the US, it said. "Technological innovated, higher quality products and greater experience with strict export markets were the only ways for local glassmakers if they want to stay in business for a long time" concludes Tuan. The country was presently home to seven construction glassmakers with a combined capacity of over 1,600 tonnes per day, meeting 80% of demand on the domestic market, according to the Viet Nam Glass Association. Domestic construction glass has been exported to several markets, including Cambodia, Thailand, India, Philippines, Malaysia and South Africa.

Vietnam's 2008 key priorities

Planning and Investment Minister sketches out 2008 key priorities

VNECONOMY updated: 14/01/2008

Vietnam recorded spectacular economic growth in 2007, but challenges are looming on the horizon. The government has set a goal that some targets for the 2006-2010 five-year socio-economic development plan will be realised by 2008. Minister of Planning and Investment Vo Hong Phuc shares his views. What could be viewed as economic successes for Vietnam last year? One of the biggest successes of 2007 was the annual economic growth rate reaching an impressive 8.48 per cent. This high growth creates an important premise for Vietnam to move to a higher development plane in the coming years. Of note, last year’s growth focused on the areas where we expected to see strong restructuring, namely services and industries. The growth rate of the industrial sector posted 10.6 per cent and that of the services in the previous years was usually 7 per cent or 7.5 per cent, but last year was 8.7 per cent, which shows the economy’s ability to develop sustainably. I think this economic restructuring is positive. What about investment attraction? In 2007, investment attraction broke records for both foreign and local investment, making up 40 per cent of GDP. It is noteworthy that the committed foreign investment capital totalled $20.3 billion, higher than the $12.7 billion mark in 2006. Foreign investment has seen fundamental changes. There are more and more projects from large corporations and potential areas such as the European Union, Japan, the US, South Korea and a few other countries with developed industries. Another bright trend is more projects which focus on high-tech or high-quality areas like electronics, material production, high-end resorts. Another profound point is the attraction of ODA sources. Donors committed about 20 per cent more than they did in 2006 ($5.4 billion in comparison with $4.4 billion). ODA is turning into large-scale infrastructure projects instead of poverty reduction and environment protection. This trend helped Vietnam break ground on infrastructure projects that serve sustainable development. For example, Japan has committed to fund three big projects including the North-South Express Railway, the North-South Highway, the Hoa Lac High-tech Park. Japan will also fund the metro system construction in Ho Chi Minh City. France and Japan will fund the metro system construction in Hanoi. The Asia Development Bank (ADB) and the French Agency of Development (AFD) will jointly fund the Hanoi-Lao Cai road construction. But with economic growth, consumption prices surged and smashed earlier government forecasts. What is going on here? It is worrisome that in 2007 the inflation rate rose sharply. Last year the prices rose by 12.6 per cent against 2006. For the first time in the past 10 years, the index increased by double-digit figures. This number fell in the pre-1996 years and we have tried to keep it below the growth rate. But in 2007, it was nearly 1.5 times higher, which urges us to work out control measures. Why is this happening? The price rise is two-sided. Objectively speaking, it is price rising around the world. Last year saw vigorous price fluctuations, especially concerning crude oil and some key material inputs like steel, cement and fertiliser. Another factor was natural calamities which strongly affected agriculture in some regions. Epidemics also dealt a big blow to cereals and foodstuff, causing consumer prices to soar. However, it is important to point out that in the economic regulation, there were some problems. The policies on monetary, anti-speculation and price stabilising fields are not effective. At present, the trade system is imperfect, mainly constituted by retail outlets which disperse and can be provoked easily by price-raising factors. In the coming time there should be comprehensive measures to stabilise prices. Experts said the trade deficit in 2007 was huge, thus affecting the balance of payments. What should be done to curb it? At the end of 2007, the trade deficit amounted to 25 per cent of export value. Exports should be further boosted to stabilise the balance of trade, especially concerning the trade deficit with certain markets. We have to bring commodities there to reach equilibrium. We cannot apply import limiting measures but push up exports. If the trade deficit is prolonged, it will harm macro-economic stability. The government has set a goal for 2008 that some key targets of the 2006-2010 five-year economic development plan will be realised. What are some of the targets? The average GDP per capita goal is $1,100 for 2010, the government estimates it at $960 in 2008 and $1,150 in 2009. The poverty reduction goal of 11 per cent [in 2010] will possibly be realised in 2008. Other social, economic and environmental targets will come about in 2010. These results will help fulfil the five-year plan in 2009, or one year before the schedule set by the National Assembly’s resolution. These goals are difficult to achieve. What do you think will make them a reality? Measures abound but first of all, in my opinion, it is important to mobilise every resource for development investment. To do so, we must make institutional, legal and administrative reforms to create the most favourable conditions for people, businesses at home and abroad to inject capital into development investment. We have to use resources efficiently. Secondly, we need to use state-invested resources well. What areas are prioritised for investment? The biggest weakness is infrastructure. In 2008 and the following years, this weakness should be addressed in order to serve long-term development. First, strong efforts should focus on large-scale urban areas, industrial and export-processing zones. In 2008, many huge projects will start, such as the North-South Highway section from Ho Chi Minh to Long Thanh-Dau Giay, the highway from Hanoi to Haiphong, the highway from Hanoi to Lao Cai province. What about key tasks to be implemented by planning and investment agencies? The agencies have to help the government build comprehensive economic plans with three key pillars of economics, society and environment. In the economic field, priority must be given to macro-economic stability, ensure flexible regulation policies. Secondly, in the investment field, more measures are needed to lure more investment capital sources domestically and internationally, especially from the private sector so as to reach a 42 per cent of GDP in 2008. Thirdly, the planning and investment agencies must implement research for development policies, ensure general development and attract resources for development. Fourthly, we have to strengthen our own system to meet these tasks.

Vietnam oil trader eyes $40 million IPO

Shares in Vietnam’s Petrolimex International Trading Co (Pitco) are set to make their market debut later this month as part of the oil trader’s US$40 million initial public offering, the bourse said over the weekend.

The Ho Chi Minh Stock Exchange said Pitco would list all its 9.77 million shares on January 24 at a starting price of VND65,000 ($4.10) each. Pitco shares’ starting price is lower than the average price achieved at a share auction last April, when the HCMC-based firm raised nearly $14 million by selling 12.25 percent of the state-held shares to the public. In June 2006 it sold 2.9 percent of the firm in an IPO. Pitco, 51 percent owned by Vietnam’s top fuel trader Petrolimex, trades oil and petrochemicals. Its export of minerals, mainly tin and antimony, makes up 40 percent of the country’s minerals exports. Vietnam is Southeast Asia’s third-largest producer of crude oil but it has to import most of its oil product needs because it has no big refineries. Its first large oil refinery is slated to start operation in early 2009. Pitco also deals with coffee, black pepper, rubber and metals. Vietnam is the world’s biggest producer and exporter of Robusta coffee. Pitco expects its gross profit to rise 10 percent from the estimated profit for 2007 to VND42.6 billion, while 2008 revenues are expected to rise 14 percent to VND1.6 trillion. Full-year results were not immediately available but the company said net profit for the first nine months of last year totaled VND32 billion.

Vietnam needs ‘markets to stay stable’ for overseas bond sale

Dung Quat Oil Refinery under construction in central Vietnam will use part of the proceeds from this quarter’s bond issues by the government The government will sell a US$1 billion foreign currency-denominated bond as soon as the global markets improve, according to the finance minister.

“We are closely watching the movement of international financial markets and need the markets to just be stable for a couple of weeks to sell the bond,’’ Finance Minister Vu Van Ninh said in an interview at a conference in Hanoi recently. Concerns over the worst housing slump in 27 years reining in the US economy is deterring investors from high-risk, high-yield debt. The Southeast Asian nation delayed the bond sale, which was initially scheduled for September and will be its second overseas security, due to turbulence in the markets. The global markets are still not in a favorable condition for Vietnam to sell the bond, Ninh said. The risk of companies and governments in Asia excluding Japan defaulting on their debt has increased on concern about the US slowdown. The region’s index of 20 high-risk, high-yield borrowers rose by 47 basis points to 3.79 percentage point Sunday from January 2. A basis point is 0.01 percentage point. “All the necessary preparations have been completed, we are just waiting for the market to get better,’’ Nguyen Thanh Do, director of the finance ministry’s external financing department, said in a telephone interview from Hanoi. The government plans to market the bond to investors in Singapore, where it will be listed, one week ahead of the auction, Do said. The sale is being managed by Barclays Capital, Citigroup Inc. and Deutsche Bank AG. The Ministry of Finance late December had postponed the plan to sell $1 billion of dollar-denominated sovereign bonds until the first quarter of this year due to strong dollar liquidity at home. The issue, originally scheduled for October, has been delayed twice. The reason for the delay was that the government worried about the influx of dollars into the economy but we figured the impact would be minimal as most of the dollars raised from the bond sale would be spent overseas for equipment import, according to the ministry. The government is to lend part of proceeds from the debt to state oil group PetroVietnam to import equipment for the $2.5 billion Dung Quat refinery, the Southeast Asian country’s first. Other recipients of the proceeds include state-owned shipping firm Vinalines, Song Da Corp. and engineering firm Lilama, to buy cargo tankers and build power plants in Laos. In October 2005, Vietnam sold its debut Eurobond worth $750 million, having received orders for more than $4.5 billion. The issue helped set a benchmark for the country’s creditworthiness and similar issues by domestic firms.

Vietnam's Vung Tau to improve industrial parks

BA RIA-VUNG TAU — The provincial authority of Ba Ria-Vung Tau has approved a plan to invest VND1,016 billion (US$63.5 million) for further infrastructure development of the province’s industrial parks in 2008.

According to the Ba Ria-Vung Tau IPs Authority, the investment includes VND180 billion for infrastructure development of Cai Mep IP, VND150 billion for site clearance at My Xuan B1 IP, VND125 billion for site clearance and infrastructure development for the expansion area of My Xuan A2 IP, VND107 billion for upgrading the axis road and a waste water treatment plant at Phu My IP, and VND23 billion for a waste water treatment plant for Dong Xuyen IP.

The IPs authority said in 2007 the southern coastal province spent VND2.2 trillion ($137 million) for development and upgrade infrastructure for the nine existing industrial parks in the province.

In December 2007, the provincial authority granted a licence for the new Phu My IP No3 that covers 952 ha. This is the tenth industrial park licensed in Ba Ria-Vung Tau. — VNS

UK oil firm plans drilling in Ireland, Vietnam

British oil & gas explorer Serica Energy is planning this year to start drilling on new territories offshore Ireland and in Vietnam, Chief Executive Paul Ellis said earlier this week.

The company raised $52 million in a share placing completed on Monday to be used on new exploration and Harris said the firm was ready to expand outside existing operations in Indonesia, Norway and the North Sea. “We raised $50 million for exploration - we have attractive licenses off the West Coast of Ireland and we want to get those drilled as soon as we can,” he said in a telephone interview. “They are look-a-like prospects to Shell’s Corrib prospects, and are attractive partly due to the tax rate in Ireland.” He added that drilling slots were booked for Ireland - although due to weather restrictions it was not definite the wells would be drilled this year. The firm hopes to begin drilling in Vietnam in September or October. Ellis said the firm was unlikely to take part in any consolidation of the small-cap oil and gas sector, despite a lack of production. “We are an exploration play with no production-not a great position to be in with oil prices the way they are,” he said. “It would be nice to have production now but the firm is still at an early stage.”

In Vietnam, be bold and think outside the spa

By Judith Fein, Globe Correspondent | January 13, 2008

SA PA, Vietnam - On a recent trip to Vietnam, I noticed that our guide slipped away from the hotel every night. When he came back, he always looked alert and rested. Finally I cranked up the courage to ask him about it.

"Where did you go last night?" I inquired over a bowl of noodle soup at breakfast.

"I had a massage," he said, grinning.

"And the night before?"

"Another massage," he said. "And I had a great one the night before that, too."

The spa offerings at the hotels were often pricey, and it was hard to imagine that our proudly frugal guide was blowing his salary this way.

"Do you get a guide's discount?" I said. He laughed. "Why? A full body massage is less than $10."

What the Vietnamese know, and tourists do not, is that there are a host of local massage experiences that are unusual and inexpensive. I set out to try a few.

In Sa Pa, in the mountainous area in the north, I had a full-body treatment. A young masseuse named Thanh, a tiny woman who spoke no English and wore skin-tight white clothes, took me by the hand and led me into a small dressing room. I waited for her to leave, so I could get undressed. She didn't budge. I figured I would start undressing and she would get the hint. She just stood there, watching. Then she reached into a locker, grabbed a large towel, wrapped me in it, and led me into a room with an ovoid wooden tub.

I slipped below foaming bubbles and scattered rose petals into the warm water. Thanh handed me a plastic bucket that exuded a heavy menthol scent, and told me to inhale. Then she left me alone. When she was gone, I wanted to scream. I looked into the water and saw that it was deep, bloody red. I later found out that I had been submerged in 30 different herbs, all related to healing, soothing, and well-being. They had been purchased from an herbalist from the ethnic Red Dzao tribe. The herbs are boiled for 35-40 minutes before patrons sink into their crimson caress.

After a soothing half hour, Thanh beckoned me to follow her into a small, unadorned room with a massage table. I hopped onto it and realized I had entered into an unspoken pact with her. She would massage every inch of my body - including nostrils, hair follicles, cheeks, underarms, and eyebrows. I recognized some of the kneading as Thai massage. But the pressure point work, scratching up and down my back, twisting my hair and fingers, and rolling the hair of my eyebrows seemed uniquely Vietnamese.

After about an hour of massage I was given a delicate cup filled with ginger tea. As I sipped, I had to admit that I had just experienced the most complete massage and soak of my life. Total cost: $10.

In Hanoi, my guide said he was going for a foot massage with some buddies. When he saw my curiosity, he invited me along. We all rode motorbikes to the foot massage parlor.

We were shown into a private room, where huge brown leather chairs with hassocks were lined up. Red lanterns hung from the ceiling. There was a beige screen behind which we changed our clothes, and we were all given black, white, and gray shorts; I was handed a brown striped shirt.

"For a foot massage?" I thought, as I changed.

Our young male and female massage therapists entered. First, our feet were soaked in an electric foot bath with brownish-red, herbal-infused liquid. Then, they were thoroughly dried and rubbed with oil mixed with lemon grass and cinnamon to soften them. Ice-cold towels were placed on our faces and we were served ginger tea.

Next, each of our toes was kneaded and massaged separately. Then the bottoms of our feet were rubbed. This was followed by a thorough soaping and washing of our entire legs with hot washcloths. Soon my therapist started to massage my thighs.

"In America, a foot is the thing at the end of your leg," I commented, but the young gentleman, who was now slipping hot stones under my back, didn't understand English. He gestured for me to turn over, and walked back and forth across my buttocks. Then he massaged my scalp and shoulders. Next, he lifted me up, arched my back, and placed me across his knees. All of this was done without my ever leaving the chair. The cost? Ten dollars for an hour and three-quarters of startled bliss.

In Hoi An, where most tourists come to have clothes made, I opted for a face massage in a nameless hair salon. I figured it would be above the neck. I was right. But that was the only part of the treatment that was not completely unexpected.

My hair was shampooed, my scalp was massaged while the shampooing was taking place, then my hair was rinsed and I had a scalp and face massage. There was only cold water, but the weather was hot so I didn't mind the cool dousing. A hair conditioner was applied, and a further scalp and face massage accompanied it. Then there was another face massage thrown in, and it extended to my neck, chin, sinuses, forehead, and shoulders. Just as I gave up counting how many ministrations I had received, a gauze mask was spread over my face. I did deep breathing while it dried.

When the mask was removed, I was offered an ear cleaning with a thin, pointed metal object, but I declined. The strangest part of the treatment occurred as I sat in the chair with my eyes closed. I felt an odd sensation and before I could say "Are you kidding?" I was shaved with a straight-edged razor - on my face, forehead, and chin. And I have no facial hair.

The total cost for the 75-minute treatment was $3.

If you want to have safe, predictable, thorough massages in Vietnam, your hotel will most assuredly offer them in a spa. If you have a streak of the adventurer in you, ask your guide or hotel concierge where he goes. You won't wind up disappointed - or broke.

Judith Fein, a freelance writer in Santa Fe, can be reached at Judith@GlobalAdventure.us.

Australian firm joins PetroVietnam in coal seam gas venture

Arrow Energy Ltd., the Australian company with coal seam gas exploration ventures in China, India and Indonesia, signed a contract with Vietnam Oil & Gas Group to search for the fuel in the Hanoi Basin.

Under the production sharing contract (PSC) with the company known as PetroVietnam, Arrow will get a 70 percent stake in a 2,743-square kilometer license area where it has committed to spend US$1.5 million over 12 months to drill eight wells, the Brisbane-based company said over the weekend in a statement to the Australian Stock Exchange. Drilling will start later this year. Vietnam is the second Asian country after India in which Arrow now holds title to exploration tenements, with talks under way in Indonesia and China to firm up initial accords. The production of natural gas from deposits found in coal seams in the Hanoi Basin would help offset declining supplies from the conventional Tien Hai gas field in the same area for local industries that rely on the fuel. “Arrow believes the PSC to be a technically and commercially attractive proposition,” the company said in the statement. “The Vietnamese Department of Mines and Geology has estimated very large resources of coal within the Hanoi Basin.” Arrow is considering bringing in a second local partner into the venture, the company said.

WTO membership brings both opportunities, challenges to Viet Nam

VNECONOMY updated: 11/01/2008

World Trade Organisation (WTO) membership is neither an elixir nor a trap for Viet Nam’s economy, many economists and managements said. Former Trade Minister Truong Dinh Tuyen, who played an important role in the country’s WTO negotiations, said joining WTO did not mean the economy would see an immediate boom but it is obvious that opportunities abound. “Whether we can seize these opportunities or not depends on ourselves,” he said. The most obvious result Viet Nam has made one year after its WTO joining was the record attraction of 20.3 billion USD in foreign investment capital and 5.4 billion USD in official development assistance (ODA). Domestic investment also surged 20 percent while export turnover hit 48.4 billion USD. Foreign experts said WTO membership has helped Viet Nam become prominent on the world investment map, but it was only another landmark inthe country’s economic reform process that began 20 years ago. The Asian Development Bank (ADB) Country Director Ayumi Konishi told the Viet Nam News Agency that everything in Viet Nam would not change in the blink of an eye after the country joined the WTO. The important thing is how to take full advantage of opportunities coming from the opening of the market to achieve a more sustainable growth, he said. Meanwhile, local economists expressed their worries about the economy’s ability to absorb the flow of capital, an increasing trade deficit and escalating prices – factors that would diminish economic growth. One of the suggested solutions is direct investment towards fields that are necessary for the economy’s competence development such as the production of materials and accessories and animal foods. In addition, improvement of human resources and infrastructure is also an urgent task to meet the requirements of multi-million USD projects booming in Viet Nam . According to Luong Van Tu, former Trade Deputy Minister and Head of Viet Nam’s WTO negotiation delegation, Viet Nam lacks policies on developing potential products to replace import. “Businesses must change their ways of thinking and make products of high quality to dominate the local market,” he said. Tu said many local businesses have taken initiative to join the game, particularly to ally with each other to increase their competitiveness and change their policies to attract labourers. Still, he called on businesses to be more active and not to rely on the State. “We have to fight for our benefits that never come suddenly to us,” he said. Tu also said the State should give equal incentives to both domestic and foreign-invested businesses, and assist local enterprises in designing development plans. Three websites have been launched this month to provide information about the implementation of WTO commitments, trade, trade barriers, food safety in Viet Nam and other member countries in order to make it easier for businesses and sectors in mapping out their strategies. Economists pointed to a lack of policies making use of legal protective measures set by the WTO to facilitate the economic integration. They particularly mentioned agriculture, rural areas and farmers as the most vulnerable as the country integrate into the global economy. As a WTO member, Viet Nam has obligations to contribute to the common development of this international organisation, first of all the promotion of the standstill Doha negotiation round, which is scheduled to resume in January 2008. Ambassador Ngo Quang Xuan, Head of the Vietnamese mission to international organisations in Geneva , said the participation in the negotiation round is aimed both at protecting Viet Nam ’s interests in implementing commitments, and fulfilling the country’s WTO membership obligations. So, “if ministries and agencies do not make good preparation for negotiations, Viet Nam will be at a disadvantage,” he said.

BOOM TIMES FOR OFFSHORE OILFIELD SERVICE SECTOR

Date : 11.01.08

The offshore oilfield service sector is facing unprecedented levels of business with some firms already booking work for 2011, an energy expert said yesterday. John Westwood, of energy business analyst Douglas-Westwood, said suppliers were virtually beating away customers just now and demand was still growing. In his annual address to about 150 oil and gas executives at the Society of Underwater Technology in Houston, Mr Westwood delivered a series of upbeat forecasts for the offshore sector. Highlighting the growing importance of deepwater exploration and production, he said: "Virtually the only place where giant fields will be found in future years is in deep water." Douglas-Westwood expects world production in this area to grow from 6million barrels of oil equivalent per day in 2007 to 11million in 2011. An estimated £13billion-plus will be spent annually on deepwater projects by 2012, representing 30% growth for 2008-12, compared with the previous five years. Mr Westwood said: "This will drive demand for deepwater rigs, floating production systems, subsea production hardware and more. "This drive to produce, what is very high-cost oil, from deepwater is the oil companies' response to declining production in offshore continental shelf areas such as the North Sea and Gulf of Mexico, and the increasingly onerous terms being sought by the biggest holders of onshore oil reserves: the national oil companies." Oil firms were also facing higher costs in traditional areas of operation, he said, pointing out that lifting costs in the North Sea increased by 67% - to about £12.75 a barrel - between 2005 and 2007. Mr Westwood added: "There are literally hundreds of small undeveloped offshore fields worldwide, but big oil needs big fields. The remaining easy oil and indeed gas is in hard places and is being strongly competed for by countries such as China, India and Russia." Douglas-Westwood has also forecast strong growth in offshore renewables, with more than £8billion being spent worldwide on wind turbines from 2008-12.

Budget airlines respond to record oil prices with surcharge hike

Passengers on Vietnam Airlines’ domestic routes won't pay higher fuel surcharge unless the government approves an increase Travelers will pay more for air travel after international low-cost carriers decided to pass on record-high fuel costs by raising the ticket surcharge.

AirAsia was the first to raise the surcharge, announcing on January 10 it would rise by US$2.5 on one-way tickets between Hanoi and Bangkok. The increase takes the ticket surcharge to $99 from $96.5. Qantas's affiliate Jetstar, which operates direct flights to Ho Chi Minh City (HCMC) from Sydney and Singapore, will increase the international fuel surcharge by $10 on flights booked from January 17. Alan Joyce, chief executive of Australia-based Jetstar, said the increase was part of the Qantas Group's response to crude oil prices breaking the $100-a-barrel barrier. “The price of jet fuel makes us suffer from higher costs and we have to raise the surcharge,” said Bui Duc Hanh, AirAsia's chief representative in Vietnam. Hanh said AirAsia's costs were also affected by the exchange rate between the US dollar and the currencies of the countries the airline operates in. Hanh said ticket prices hadn't changed since late last year when the Malaysia-based low-cost carrier launched its special price promotion of $0 for online bookings. Ta Viet Tien, chief representative of Tiger Airways Vietnam, said the country's first international low-cost carrier was yet to release its fuel price policy. The airline operates two flights a day from Hanoi and HCMC to Singapore, with its aircraft in the air – and consuming fuel – for about 14 to 15 hours a day. Nguyen Hai, director of TransViet, a local booking agency for 11 international airlines, said none of the traditional full-service carriers had yet announced any increase in ticket prices or fuel surcharges on their flights to Vietnam. Domestic tickets unchanged Vietnam Airlines spokesman Trinh Ngoc Thanh said national airlines were unable to raise ticket prices or surcharges for domestic flights with-out government permission. “We just do it with international routes and frequently adjusted surcharges in response to the world's oil fluctuation,” said Thanh, pointing out national airlines were making losses on domestic routes. Thanh said Vietnam Airlines' domestic flights ran at a loss of about VND300 billion ($18.75 million) a year. Luong Hoai Nam, general director of Pacific Airlines, Vietnam's only local low-cost domestic carrier, said it had been seeking authority from the government to set its own prices for many years but had so far been unsuccessful. Reported by Minh Quang

Vietnam to send 100,000 migrant workers to Qatar -- report

Agence France-Presse
First Posted 18:38:00 01/12/2008

HANOI, Vietnam -- The communist government plans to send 100,000 guest workers to oil-rich Qatar over the next three years, expanding its migrant labor program in the Middle East, state media said Saturday.

The two countries' labor ministers signed an agreement on the program in Hanoi on Friday after Vietnam's Deputy Prime Minister Nguyen Sinh Hung visited the Gulf emirate in mid-December, the Vietnam News daily reported.

Vietnam last year sent 85,000 workers abroad -- mostly to Malaysia, Taiwan, South Korea, and other Asian countries -- generating income and reducing unemployment at home, where 1.5 million people enter the job market every year.

About 10,000 Vietnamese already work in Qatar, says Vietnam's government, which sees the Middle East, including the oil and gas-rich Gulf states, as a promising growth market for its labor exports.

Vietnam has set a target of sending 100,000 workers abroad every year by 2010, according to the Department of Management of Overseas Labourers.

Migration experts and state media have highlighted cases of exploitation of Vietnamese migrant workers who often have been trapped under harsh conditions in overseas jobs while struggling to repay large loans and air fares.

Labor Minister Nguyen Thi Kim Nhan told a workshop last week that Vietnam's labor exports will comply with international law, "protecting participants, especially the rights and interests of laborers," the Vietnam News reported.

Vietnam's garment, textile industry sets high targets

11:20' 12/01/2008 (GMT+7)

VietNamNet Bridge – The garment making and textile sector has expected to increase its yearly export revenue by more than 23 percent to 9.5 billion USD in 2008. The US and Japan are predicted to be still the sector’s largest markets with their imports estimated at 1.8 billion USD and 800 million USD, respectively. However, President of the Viet Nam Apparel and Textile Association Le Quoc An pointed out major challenges to the sector, such as supplies of raw materials largely dependent on imports, a shortage of workforce, price hike and especially an increasingly tough competition on the global market. An said the EU’s lifting of quotas for China from 2008 will drive Vietnamese businesses to a tougher position. Other challenges come from the Japanese market, which has reduced import tariffs to zero for products from six Southeast Asian countries - Singapore, Malaysia, the Philippines, Indonesia, Brunei and Thailand, while continuing levy 10 percent on products made in Vietnam. Risks from the US market, which makes up 55 percent of Vietnam’s export revenues, remain as it continue applying the anti-dumping monitoring mechanism against Vietnamese garments and textiles. “Local garment and textile businesses should set up close partnerships with leading US importers and not sign low-valued contracts as such orders will impact the national average prices and prompt the US to file anti-dumping law suits,” he warned. To this regard, Tran Van Pho, CEO of the Hoa Tho Joint Stock Company, which has shipped almost a-third of its exports to the US, said his company will increase exports to the largest world economy and focus on products of high values so as to avoid sales of products from being labeled as dumping. The Viet Nam Apparel and Textiles Group has asked the Government and relevant agencies to take firm measures against trade barriers and cope with dumping control mechanisms. It also proposed for further investments in infrastructure, speeding up administrative reforms and intensifying the promotion of trade and the industry’s image. For its part, the industrial association has called for speeding up negotiations with Japan on a free trade agreement, emphasizing it as a key measure to expand shares on this market. The garments making and textiles sector recorded a growth rate of 31 percent with gross revenue estimated at 7.8 billion USD in 2007. The US was the largest market with 4.5 billion USD, followed by the EU and Japan

Vietnam has 7 universities in Southeast Asia's top 100

HANOI, Jan. 11 (Xinhua) -- Vietnam has seven universities in the top 100 in Southeast Asia, as ranked by Webometrics, a Spanish ranking system of world universities, local newspaper Vietnam News reported Friday. Webometrics ranked Ho Chi Minh City University of Natural Sciences number 28 in the region and 1,920 in the world; Ho Chi Minh City University of Technology 36 and 2,190; Can Tho University 47 and 2,532; National University of Hanoi 54 and 2,850;Hanoi University of Technology 62 and 3,156; Technology University90 and 4,217; and National University of Ho Chi Minh City 96 and 4,462. Also on the top 100, Thailand has 41 universities, Myanmar 18, Indonesia 14, the Philippines 13, and Singapore 7. Only half of university and college graduates in Vietnam find jobs right after their graduation, according to a recent survey by the country's Ministry of Education and Training. Syllabuses of many educational establishments in Vietnam, now home to 1,540,201 university and college students or 181 students per 10,000 residents, focus too much on theory, not practical skills. The Vietnamese government has set a target of 200 tertiary students for every 10,000 people by 2010, 300 by 2015, and 450 by 2020.

Vietnam to build highway linking Hanoi to major port city of Haiphong

HANOI, Vietnam (AP): Vietnam will build a $1.5 billion (euro1 billion) highway linking Hanoi to the major northern port city of Haiphong, state media reported Thursday.

Construction of the 105.5 kilometer (66-mile) highway is scheduled to start in May and be completed in 2011, the Tien Phong (Pioneer) newspaper said.

Prime Minister Nguyen Tan Dung has appointed the state-owned Vietnam Infrastructure Development and Financial Investment Corp., or Vidifi, to construct the highway and raise financing for it, the paper said.

The six-lane highway will be built to international standards and will cost 24 trillion dong (US$1.5 billion, euro1.02 billion), it said.

The company will operate the highway as a toll road for 35 years before turning it over to the government.

Company executives were not available for comment Thursday.

The newspaper quoted Vidifi general director Dao Van Chien as saying some 7,700 people will be relocated to clear land for the project.

Vietnam is scrambling to build new roads, bridges and power plants to ensure that its infrastructure keeps pace with the country's fast-growing economy, which has expanded more than 8 percent annually in recent years.

Three foreign banks to open branches in Vietnam

Tue Jan 8, 2008 11:51pm EST

HANOI, Jan 9 (Reuters) - Taiwan's Taipei Fubon Bank, Industrial Bank of Korea (024110.KS: Quote, Profile, Research) and Commonwealth Bank of Australia (CBA.AX: Quote, Profile, Research) would open branches in Vietnam, one of Asia's fastest growing economies.

The State Bank of Vietnam said in a statement seen on Wednesday it would soon license the three banks to open branches, joining around 30 foreign banks already operating nearly 40 branches in the country.

The statement on the central bank's Web site (www.sbv.gov.vn) did not say when and where the three banks would open branches.

The Industrial Bank of Korea has a representative office in Ho Chi Minh City, Vietnam's commercial and financial centre.

The central bank also said it had given initial approval for the establishment of five more domestic joint stock banks, which taking to nine the number of such Vietnamese banks awaiting a licence.

It said the five were Energy Bank, Asia Foreign Trade Bank, Vietnam Star Bank, Dong Duong Thuong Tin Bank and Bao Tin Bank. Late last year, the Oil and Gas, Lien Viet, Bao Viet and FPT banks also secured initial approval.

Apart from six state-run banks and 35 domestic partly private banks, 35 foreign banks which have a combined 14 percent share of the loan market, six venture banks, four financial leasing ventures, two wholly foreign owned financial leasing firms and 50 representative offices of foreign banks also operate in Vietnam.

The country has about 4,000 bank branches, half of them run by state-run Agribank, Vietnam's largest enterprise.

A Planning and Investment Ministry official has said Vietnam wanted to limit credit growth to 22-25 percent this year after inflation hit 12.63 percent in December, the highest since December 1995, when the CPI spiked 12.7 percent.

The central bank said loans jumped 37 percent last year in an economy that grew 8.48 percent. The government aims for 9 percent growth this year. (Reporting by Ho Binh Minh; Editing by Michael Battye)

Vietnam's Saigon/HCM City property market booming

HCM City’s property market abuzz

17:36' 08/01/2008 (GMT+7)

VietNamNet Bridge - Many foreign investors are reluctantly living in HCM City’s hub because industrial zone developers are not providing the services and accommodations necessary for foreign investors to live nearby. As the Government is considering their plan to allow foreigners to buy property and houses in Vietnam, it is forecast that the property market will boom further if they approve it. Some real estate companies have kicked off luxury apartment projects in some industrial zones in HCM City, to prepare for this. Convenience and proximity Since 2004 more than 80,000 foreigners have come to Vietnam. Of these, around 25,000 invest in the country and 54,000 work in the education, health and business sectors. HCM City and Hanoi host the highest numbers of foreigners, followed by some southern provinces featuring many industrial zones, like Binh Duong, Dong Nai and Ba Ria – Vung Tau. Kim Thanh, a Taiwanese cosmetics businessman, said before coming to Vietnam, besides learning about the business environment, he had to seek a house. After around ten days looking in newspapers and through real estate brokerage centers, he rented a home for $2,000 a month. “Our plant is located in Bien Hoa Industrial Zone (Dong Nai province), so initially I intended to live either within the zone, or nearby, but the living conditions for businessmen there were very poor so I had to hire a house in HCM City,” the Taiwanese investor said. Many foreign businessmen have faced the same dilemma as Kim Thanh. Though they work in industrial zones in Binh Duong, Dong Nai or Ba Ria – Vung Tau, they still choose to live in HCM City and accept the commute between the City and their workplaces. They also say the industrial zones and surrounding areas have little or no entertainment. Additionally, many bring their families so a top priority is finding a house located near good hospitals and schools. A representative of a Malaysian estate firm, which is building a luxurious apartment block in Binh Duong, said accommodations at most of industrial zones in the south don’t meet the need of foreign investors and experts. He said foreign investors told him that they are reluctantly to live in HCM City’s centre. They don’t like to work in a province and live in another city because of it takes more time for travel, plus other troubles such as traffic jams, flood, etc. But HCM City is the only address in the south for them since it supplies all services they need. Thao Dien in District 2, Phu My Hung in District 7 and luxurious apartment blocks in HCM City’s centre are the top choice of foreigners. Despite high rental fees, it is difficult for a foreigner to hire a house in these locations. New projects Understanding the demand of foreigners and to prepare for a new age of the real estate market when the Government approves the scheme that allows foreigners to buy house in Vietnam, some estate companies have kicked off high-class apartment projects near industrial zones. For instance, Tan Duc Investment Joint Stock Company, a subsidiary of Tan Tao Group, recently began the second phase of a construction project worth several trillion VND in Duc Hoa District, Long An Province. The Northwestern Residential Area Management also kicked off a VND4 trillion project in Cu Chi district, HCM City. Both investors said they will spend a large part of capital on high-class apartment blocks for foreigners, with schools, hospitals, hotels, and entertainment zones around. The largest is the US$58 million The Canary residential area in the Vietnam – Singapore Industrial Zone in Binh Duong, which meets international standards. Lawrence Peh, General Director of GuocoLand Binh Duong, the investor, said The Canary consists of 1,200 apartments, a modern shopping mall, an international school, a hotel, a golf course and an entertainment and sports zone. He confirmed that this project is for foreigners and Vietnamese who are working inside and near the Vietnam Singapore Industrial Zone. According to the Ministry of Construction, Hanoi has around 220,000sq.m of housing (equivalent to over 1,300 apartments) leased to foreigners, while HCM City has 660,000sq.m or nearly 4,000 apartments. The average rent in Hanoi is between $700 - $1,000 per month and $1,000 to $1,500 per month in HCM City. In central areas, the price is $2,000 to $3,000 per month.

Vietnam Oil and Gas Asset Report Provides Top Level Historical Reserve Data for the Area

Vietnam Oil and Gas Asset Report Provides Top Level Historical Reserve Data for the Area

DUBLIN, Ireland--(Business Wire)--Research and Markets
(www.researchandmarkets.com/reports/c78798) has announced the
addition of "Vietnam Oil and Gas Asset Report" to their offering.

  Introduction

  -- Vietnam Oil and Gas Assets Report is a comprehensive source for
top level data on the major oil and gas assets for Vietnam. The report
contains in-depth coverage of crude oil and natural gas assets'
exploration, production and reserves data. It also provides
production, revenues and total government take forecasts for active
and commercial assets on the basis of production data and asset
specific fiscal information (where applicable).

  Scope of the Report

  -- Provides data and information for all the major exploration
blocks in the geography.

  -- Provides historical production data by asset / company in the
geography.

  -- Provides top-level historical reserve data for the geography.

  -- Provides operator and equity details for major exploration and
production assets.

  -- Contains five year forecasts of production, gross revenues and
total government take (government's share of revenues from fields such
as royalty, profit share and petroleum taxes) for active and
commercial fields (where applicable).

  -- Decline curve analysis and Hubbert's logistic models are used
to forecast production of declining and early producing fields
respectively (where applicable).

  Reasons to Purchase

  -- Facilitate decision making on the basis of strong historic
production and reserves data.

  -- Support investment decisions by evaluating the future revenues
and Government's share specific to oil and gas upstream assets (where
applicable).

  -- Obtain the most up to date asset information available.

  -- Assess major competitors by reviewing their assets and
operations in the geography.

  Contents:

  CHAPTER 1 TABLE OF CONTENTS

  1.1 List of Tables

  1.2 List of Figures

  CHAPTER 2 INTRODUCTION

  2.1 What Is This Report About?

  2.2 How To Use This Report

  2.3 Market Definition

  CHAPTER 3 COUNTRY SNAPSHOT

  3.1 Key Data

  3.2 Exploration And Production Assets Map

  CHAPTER 4 RESERVES

  4.1 Crude Oil

  4.2 Natural Gas

  CHAPTER 5 PRODUCTION

  5.1 Crude Oil-Historical

  5.2 Crude Oil-Forecasted

  5.3 Natural Gas-Historical

  CHAPTER 6 ASSET DETAILS

  CHAPTER 7 EXPLORATION DETAILS

  CHAPTER 8 APPENDIX

  8.1 Methodology

  8.2 Definitions

  8.3 Contact Us

  8.4 About Us

  8.5 Disclaimer

  1.1 List of Tables

  Table 1: Vietnam, Oil and Gas, Key Statistics, May 2007

  Table 2: Vietnam, Crude Oil Reserves (MMBBLs), 2000-2005

  Table 3: Vietnam, Natural Gas Reserves (Bcf), 2000-2005

  Table 4: Vietnam, Total Crude Oil Production (MMBBLs), 2000-2005

  Table 5: Vietnam, Total Crude Oil Production (MMBBLs), by Assets,
2000-2005

  Table 6: Vietnam, Total Crude Oil Production (MMBBLs), by Company,
2000-2005

  Table 7: Vietnam, Total Crude Oil Production (MMBBLs), Forecast by
Assets, 2006-2011

  Table 8: Vietnam, Total Natural Gas Production (MMcf), 2000-2005

  Table 9: Vietnam, Total Natural Gas Production (MMcf), by Assets,
2000-2005

  Table 10: Vietnam, Total Natural Gas Production (MMcf), by
Company, 2000-2005

  Table 11: Vietnam, Oil and Gas Assets Details, May 2007

  Table 12: Vietnam, Oil and Gas Exploration Details, May 2007

  1.2 List of Figures

  Figure 1: Vietnam, Exploration and Production Assets Map, May 2007

  Figure 2: Vietnam, Crude Oil Reserves (MMBBLs), 2000-2005

  Figure 3: Vietnam, Natural Gas Reserves (Bcf), 2000-2005

  Figure 4: Vietnam, Total Crude Oil Production (MMBBLs), 2000-2005

  Figure 5: Vietnam, Total Natural Gas Production (MMcf), 2000-2005

  For more information visit
www.researchandmarkets.com/reports/c78798.

  Source: Global Markets Direct

Research and Markets
Laura Wood, Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com

Vietnam's fuel price hikes ’hurt’ living standards

16:07' 07/01/2008 (GMT+7)

VietNamNet Bridge – Rising costs of energy including power, coal and fuel will hurt the standard of living, Minister of Industry and Trade Vu Huy Hoang has said. Speaking on the sidelines of a meeting held by the Ministry of Industry and Trade (MIT) in Hanoi last Friday, Hoang warned the oil price hike on the global market would likely affect domestic fuel prices. "We have to import 100% of the fuel needed for domestic consumption," Hoang said. The country's first refinery in Dung Quat will ease the pressure on fuel prices when it becomes operational in 2009. However, Hoang said, Refinery No 1 could only produce 6.5mil tonnes of fuels annually and, by then, the country's demand would be 13.5mil tonnes per year. In late 2007, the Government urged ministries and agencies to propose solutions to counter price fluctuations. Ministries were asked to better their forecasts on the increases of prices, especially prices of imported materials such as fuels, fertilisers, chemicals and steel ingot. In addition, the Government has also sped up construction of major projects like the Dung Quat Refinery and fertiliser plants in Ninh Binh and Ca Mau provinces. If construction of these major projects progresses on time, the completed plants may provide a significant proportion of raw materials for domestic production by 2010, according to Hoang. To cope with future price fluctuations, the MIT will ensure the local production of quality goods at reasonable prices and curb price hikes and goods shortages. Rumour spreads Last Friday night, drivers flocked into petrol stations in Hanoi, HCM City and Da Nang to buy petroleum due to a rumour that the price of A92 petrol would increase by VND4,000 to VND17,000 (US$1.07) per litre at 10pm. The rumour started to spread on Friday afternoon around 4pm. One driver on Chua Lang Street in Hanoi said that when he heard the rumour, he went to three or four gas stations, but all of them were full of customers. In HCM City, people also crowded gas stations at 6-7pm. Minh, a staff member at the Le Thi Rieng gas station in District 1, wondered what had happened as he rushed to serve an unexpected number of customers. Petrolimex agents in Da Nang were also very surprised to see the crowds. A Petrolimex representative affirmed that the company did not have any plans to raise the price of petrol, though the company had been suffering losses due to the skyrocketing world oil price. Last Saturday morning, oil and gas prices were unchanged, and the number of customers was back to normal. According to an official from the Ministry of Finance (MoF), the ministry was co-operating with the MIT to promulgate a directive circular on petroleum retail price management in 2008. A MIT official affirmed that there had been no information about a petroleum price increase. Last year, due to the fluctuation of the world oil price, the country adjusted the petroleum price five times. The latest was on November 22, when the world oil price was recorded at $99 per barrel. As a result, the domestic oil price increased by VND1,700 per litre to VND13,000.

Vietnam new field to produce first oil by 2010

Mon Jan 7, 2008 9:55pm EST

HANOI, Jan 8 (Reuters) - Vietnam's newly discovered Nam Rong-Doi Moi oilfield is expected to produce about 15,000 barrels of oil per day by 2010, a Petrovietnam official said on Tuesday.

"The crude specification is not available yet but we suspect it is of the heavier type," the official said.

Tests showed an oil flow of 4,150 barrels per day, the field operator, VRJ Petroleum Co, which is 50-percent owned by Russian state oil firm Zarubezhneft, said in a statement on Tuesday.

The oil field is located 135 km (84 miles) southeast of Vietnam's oil hub province of Ba Ria-Vung Tau.

State oil Petrovietnam group owns a 35 percent stake in the venture and Idemitsu Cuu Long Petroleum Co Ltd, an unit of Japanese oil refiner Idemitsu Kosan Co Ltd (5019.T: Quote, Profile, Research) has 15 percent. (Reporting by Nguyen Nhat Lam; Editing by Valerie Lee)

Vietnam's Prime Minister says there are 4 investment advantages to Vietnam

PM: Vietnam has 4 investment-related comparative advantages

HANOI, Jan. 8 (Xinhua) -- High economic growth, political stability, young and skilled workforce and open external policy are four comparative advantages of Vietnam to attract foreign investors, Vietnamese Prime Minister Nguyen Tan Dung said here Tuesday. At a business roundtable between senior government officials and foreign business leaders starting Tuesday, Dung said Vietnam's economic growth, averaged 7.5 percent in the last over 20 years, stood at over eight percent between 2005 and 2007, and will reach 8.5-9 percent in 2008. Vietnam's political stability ensures interests of investors, he said, noting that investment-related issues are transparent and in line with laws. Besides, nearly 70 percent of Vietnam's population, currently standing at 87 million, are aged 30 downward. This is a large source of employees who are well-educated, highly-skilled, industrious, and creative. "Labor cost in Vietnam is lower than that in many other countries," he said. Vietnam is encouraging both domestic and foreign investors from all economic sectors to engage in the country's socioeconomic development, especially in the fields of infrastructure, information technology, electricity, manpower training, stock market, education and healthcare, the prime minister said. Vietnam lured a record foreign direct investment of 20.3 billion U.S. dollars in 2007, bringing the total registered capital to 83 billion dollars with 8,590 operational foreign-invested projects by the end of the year, according to statistics from the country's Planning and Investment. The two-day roundtable, christened "Vietnam: Asia's Rising Star in Asia" and mainly attended by Vietnamese high-ranking government officials, and representatives of some 250 Vietnamese companies, and over 70 transnational firms and big economic groups in the world, features discussions about nearly 30 topics, including reforming the local banking sector, opening up more sectors for foreign investors, developing major industries, and enhancing manpower for sustainable development. The roundtable is held by Economist Conferences under transnational information entity Economist Group, and Vietnamese newspaper The World and Vietnam.

Vietnam auto sales nearly double in 2007

2008-01-08 06:11:20

HANOI (Thomson Financial) - Vietnam automobile sales nearly doubled to more than 80,000 units last year compared to 2006, driven by a 128 percent rise in demand for passenger cars, manufacturers said Tuesday.

go challenCargo challenge: Many obstacles for Vietnam's shipping industry

Container ships await loading at Saigon Port in Ho Chi Minh City The size and age of the fleet and the capacity of the nation's ports are causing problems for the nation's merchant navy.

Vietnam's sea cargo industry is facing a series of challenges ranging from outdated ships to inadequate ports. Ship issues Vietnam's cargo ships are yet to call into the most desirable destinations in sea cargo transport - American ports, said Tran Duc Du, Head of the Oil Tanker Department of the East Sea Transport Company. “Ships carrying cargo to American ports can count on high fees and new cargo for their return trips,” Du said. However, at present Vietnamese exports to the US are mostly carried by foreign ships, with Vietnamese vessels acting mainly as “agents.” Most Vietnamese ships only ply part of the route, unloading their cargo in Hong Kong for foreign ships to pick up and deliver to American ports, according to Du. One of the major problems for Vietnam's cargo fleet, industry experts say, is the small size of the ships. It's unprofitable to ship low volumes of cargo over long distances because the ship-ping fees won't be high enough to offset the cost of fuel, insurance and labor. The age of most Vietnamese ships is another problem for the nation's merchant navy, said Nguyen Vu Hai, head of the Sea-Going Ship Department in the Vietnam Register, the office that checks and certifies ships and cars. “The average age is 14.5 years old, which puts most cargo owners off,” said Hai. One hundred and fifty of the 432 sea-going ships sailing on international routes have been in use for more than 30 years, Ha added. The fleet is aging for two reasons. Firstly, Vietnamese ship owners can't afford new ships and, secondly, Vietnamese ship builders are not yet able to produce models that comply with the increasingly stringent international standards on safety and environment protection. Many vessels in Vietnam's existing cargo fleet also have problems meeting the international standards for security, safety and environment protection. They end up being detained at foreign ports for breaching the standards. In the first eight months of last year 24 Vietnamese ships were detained at foreign ports, putting Vietnam at number 7 on the list of countries with ships held at foreign ports. Port problems The double-handling of Vietnamese cargo is at intermediate ports such as Hong Kong and Singapore because Vietnam lacks deepwater ports that will allow larger vessels to dock. About 80 percent of Vietnam's exports and imports are transported by sea. Cai Lan, the first deepwater port in northern Vietnam, for instance, can only receive container ships of up to 5,000 TEU (twenty-foot equivalent unit) while more and more cargo ship companies are using 15,000 TEU ships for long-distance carriage. And only nine of the country's 266 seaports can be upgraded to handle 50,000 DWT (dead weight ton) cargo ships or 3,000 TEU container ships. However, Deputy Head of the Vietnam Maritime Administration Nguyen Ngoc Hue said within three to five years, Vietnam's sea transport industry will advance rapidly with the development of maritime, shipbuilding and seaport industries. Hue said many domestic sea transport companies had signed contracts to buy big container ships and oil tankers from abroad. Domestic shipbuilding factories will also be delivering on contracts for ships of 54,000 to 58,000 DWT within a few years, he said. And by 2010, a series of new deepwater seaport projects will be completed. These include Van Phong in Khanh Hoa Province, Hiep Phuoc in HCMC and Thi Vai-Cai Mep in Ba Ria-Vung Tau. However, experts say sea trans-port infrastructure development is unlikely to keep pace with the rapid growth in sea trade. Last year, for instance, more than 60,000 ships with 154 million tons of cargo called into to Vietnam's seaports, double the figure six years ago. So even with the new ports and upgrades, the country will only be able to cope with 80 percent of demand, which is estimated to increase to more than 265 million tons by 2010 and 480 million tons by 2020.

After 2010: Vietnam may not have enough parking lots for aircrafts

VietNamNet Bridge – Experts have warned that Vietnam may lack parking lots for aircrafts after 2010, especially when the aviation market maintains robust growth. The national flag air carrier Vietnam Airlines has signed a series of contracts on purchasing new-generation aircraft in an effort to improve its fleet. It is expected that the airline will have 86 aircraft by 2015. Meanwhile, Pacific Airlines has signed a series of contracts on chartering aircraft. The airline expects to get five aircraft a year, and will charter 30 units by 2014. Vietjet, the newly established airline, is expected to have some 10 aircraft. As such, the lack of aircraft will not be the biggest worry for Vietnam, while the biggest problem will be the lack of parking lots for aircraft. There are now 22 airports nationwide, including five international airports and 17 domestic ones. Most of the airports in the south have become old, which were built by the US in the Vietnam war. In the north, Noi Bai, the biggest international airport, has also become old since it was built in the 1960s. Meanwhile, the aviation industry has been witnessing robust growth in the last few years. Vietnam Airlines has just welcomed the 8-millionth traveler, while airports have welcomed the 20-millionth traveler. Experts said that the lack of parking lots is now not so serious with 50-55 Vietnamese owned aircraft (international airlines never park their aircraft overnight in Vietnam for international flights). However, the situation will become more serious after 2015. Parking in nearby airports? Lai Xuan Thanh, Deputy Head of the Civil Aviation Administration of Vietnam (CAAV) acknowledged that the lack of parking areas for aircrafts has been anticipated. Several hundred thousand billion VND needed to develop airports’ infrastructure Under the strategy on airport network development, by 2020, Vietnam will put 26 airports, including 10 international and 16 domestic ones, into operation. The total estimated capital for priority projects by 2020 is expected to reach VND221,500bil, of which VND38,500bil will be needed in the period from now to 2010, and VND183tril in 2011-2020. It will take VND117tril to develop the fleet, VND88,500bil to develop aviation infrastructure and VND11tril to develop the aviation industry. The main sources of capital will come from state budget, ODA, enterprises’ capital, BOT and bonds He said that though heavy investments have been made, the two most important Tan Son Nhat and Noi Bai airports remain overloaded where there is not enough room for parking aircraft. Tan Son Nhat airport, for example, only has enough parking areas for 145 flights taking off or landing in every day. Noi Bai airport, which has 21 parking lots, has to serve 85 flights a day. An official from CAAV said that in order to deal with the lack of parking lots, it is necessary for airlines to park aircraft at the nearest airports. Airlines should think of parking their aircraft at some local airports, like Chu Lai or Cam Ranh, which have large parking lots, while they should not expect that the upgrading of Noi Bai or Tan Son Nhat airports can be completed in a short time. In developed countries, airlines have their owned bases for aircraft, and not all aircraft park in the capital city. American Airlines, for example, one of the biggest airlines in the US, has the base not in Washington or New York, but in Dallas. Therefore, experts said that Vietnamese airlines should also think of setting up their bases for aircraft in other localities instead of Hanoi or HCM City. If Tan Son Nhat airport serves as the base of Vietnam Airlines, Pacific Airlines should find another base for it, Da Nang or Cam Ranh. Where does capital come from? Pham Ngoc Minh, General Director of Vietnam Airlines, said that airports have been focusing on building and upgrading terminals, while not paying appropriate attention to expanding parking lots for aircraft. In the latest news, CAAV has reported about the anticipated lack of parking lots to the Government. In response, the Prime Minister has decided to develop the 30 ha land plot on the Tan Son Nhat airport’s area now put under the control of the Ministry of Defence into parking lots for aircraft. It is expected that some 50 places for aircraft parking will be created on the new area. In the near future, when the Long Thanh airport in Dong Nai province becomes operational in 2011, which can serve 80-100mil passengers a year and have the parking lots large enough for several hundred places, the lack of parking lots will be eased. As for Noi Bai airport, CAAV plans to build up a new parking lot for five big-size aircrafts, scheduled to kick off in 2008. However, the biggest problem now is how to call for capital. It is estimated that some VND400bil will be needed to develop infrastructure base for aviation industry. Meanwhile, the state budget only allocates dozens of billions of VND a year on airport infrastructure. Besides, the Government has also asked to complete the construction T2 terminal at Noi Bai airport (which can serve 15mil passengers a year) with the 11-place modern parking lot, eligible for A380s as well. Experts said that Vietnam should think of calling capital from different sources instead of relying on the state budget as currently. However, Vu Pham Nguyen Tung, Head of the Airport Management Board under CAAV, said that it is very difficult to attract investment in airport infrastructure. In fact, neighboring countries including Thailand and Indonesia also find it hard to call for investment in airports. It took Thailand 20 years to build Sunwanaphumi airport to replace Don Muong airport, and the country had to mobilize capital from different sources, including ODA, bonds and funding from big financial groups. Another big problem of Vietnam’s airports is that the service fee the airports can collect just accounts for a small proportion, at 20-30% of total receipts (the figure is 60-70% in other countries). Therefore, the airports do not have money for re-investment.

Vietnam Business Briefs

BUSINESS IN BRIEF 6/1

01:23' 07/01/2008 (GMT+7)

New cement plant in mid-land province Construction of a new cement plant with a capacity of close to 1 million tonne per year is underway in the northern mid-land province of Phu Tho . The Huu Nghi Cement Plant II, built at a cost of 900 billion VND, is expected to be operational for 49 years, beginning by the end of 2008. The new cement plant is located close to a unexploited big quarry which is accessible by both motorways and waterways Cambodian leading micro credit bank to operate in Vietnam ACLEDA Bank Plc., Cambodia ’s leading microfinance bank, plans to expand its operation to Vietnam in the next five years, ACLEDA President and CEO In Channy said. Earlier, the ACLEDA Bank Plc. was licensed by the Lao government to establish a branch in Laos . The branch named ACLEDA Bank ( Laos ) Ltd. is expected to open in Vientiane in mid-2008, the President said, adding that branches will also be opened in Savannakhet and Pakse provinces of Laos . ACLEDA Bank Plc. was established in January 1993 to support the development of micro and small enterprises. With 193 branch offices and 4,332 staff, the bank is active in 24 provinces and towns across Cambodia. Modern aircraft shortage hinders Vietnam Airlines to fly to US Lack of new generation aircraft is the biggest obstacle for the national flag carrier, Vietnam Airlines, to launch air routes to the US, said a senior official from the carrier. Vietnam Airlines is planning to strengthen its fleet, said General Director Pham Ngoc Minh, adding that the airline recently signed contracts to buy 47 planes of all kinds. However, new generation aircraft can only be delivered in 2012, he said. Despite many difficulties, Vietnam Airlines will try its utmost to meet increasing demands of the clients, Minh affirmed. Heavy investment in southern IPs’ infrastructure The southern coastal province of Ba Ria-Vung Tau will invest over 1 trillion VND (63 million USD) in developing technical infrastructure for its industrial parks (IPs) in 2008. The province will urgently complete necessary procedures to grant investment licences to four IPs, including the 1,550ha Chau Duc, the 500ha Dat Do 1, the 400ha Long Huong and the expanded Phu My 2 with an additional area of 400 ha. The province will also apply for the Government’s approval to add the 1,350ha Long Son IP into its development plan by 2015. In 2007, Ba Ria-Vung Tau province poured over 2.2 trillion VND into developing technical infrastructure for nine IPs. Last December, the province agreed to establish the 952ha Phu My 3 Industrial Park, raising its total IPs to 10. Minh Hai seafood casts nets on stock market The Ho Chi Minh City Stock Exchange announced on Jan. 2 that it received sufficient documentation from the Minh Hai Seafood Processing company (Minh Hai Jostoco). The company has a charter capital of 139.2 billion VND and wants to list 13.9 million ordidnary shares at a face value of 10,000 VND. Minh Hai’s quality management system has acquired international standards and is capable of processing 6,000 tonnes per year . Its major markets are the US , Japan , Canada , the Republic of Korea , Hong Kong , China , France , Germany and the UK. Geologists strike water in highlands Water found at a depth of 150 metres in the Pa Vi Ha village of the Pa Vi commune of the Meo Vac district, Ha Giang province, has been pumped to the surface at 350cu.m each hour. The find, the first on Dong Van plateau, was made by the Geology Institute and will help improve living standards for the local Mong community. Thua Thien Hue licenses huge cement plant The central province of Thua Thien-Hue has granted license to the Nam Dong Viet Song Long Cement Investment Joint-Stock Company to build a 1.8 million tonne-a-year cement plant. The project has an investment capital 3.28 trillion VND (205 million USD), including 2.3 trillion VND (146.5 million USD) from loans. Construction of the plant is scheduled to start in the fourth quarter of this year and it will be operational in January 2011. On January 5, the Nam Dong Viet Song Long Cement Investment Joint-Stock Company contributed 100 million VND to the province’s campaign to build houses for poor people in disaster-hit areas. Lam Son Sugar Company lists on HCM City exchange Some 30 million shares of the Lam Son Sugar Co. (Lasuco) will be listed on the Ho Chi Minh City Stock Exchange effective January 9. Lasuco has a charter capital of 300 billion VND (18.7 million USD). Of the figure, the State holds 12.14 percent. Its equities reaches over 550 billion VND. Lasuco is expected to post a revenue of 1 trillion VND (62..5 million USD) or an increase of 18 percent against 2007, bringing in a profit of 110 billion VND – up 20 percent. 100,000 USD cell phones added to luxury goods FPT Corporation said it has imported two Vertu mobile phones from the UK worth 100,000 USD each. The two phones have covers made of gold. One has 943 diamonds encrusted on the keyboard while the other has 923 diamonds on its body. With Vietnam ’s vigorous economic growth in recent years, mobile phones were no longer a rarity and were used by people from all walks of life, the country’s largest mobile retailer said. First e-shopping website opens in Vietnam Customers of www.chodientu.vn (an on-line shopping website) starting this month can pay by international credit or debit card, including VISA, Mastercard, JCB AMEX, or Diners. According to an official of the website administration, www.chodientu.vn is the first e-commerce website in Vietnam with certified security and recommended by VISA and Mastercard. For Tet (Lunar New Year) the website has launched an on-line shopping festival with various promotions active as of January 1,200. Phong Phu Corp begins on 80 million USD garment factory Phong Phu Corp., a part of the Vietnam Textile and Garment Group, has started construction of a 80 million USD garment factory. The plant will occupy a 2 ha site in Hai Lang district, in the central province of Quang Tri . The factory will have 20 garment production lines with a capacity of 3.5 million products per annum. The company’s chief export markets are the EU and the US . The factory is scheduled to open in October and will provide around 1,000 local job. Banks provide loans for cargo vessel purchase SeABank, VIB Bank and Petro Vietnam Financial Co (PVPC) will team up to finance 52.10 million USD for NOSCO to buy a 45.58 DWT cargo vessel, SeABank’s press release reported on Jan. 4. The vessel, named Fortune Pearl, is worth 61.3 million USD, 9.2 million USD of which, North Sea Transportation Company ( NOSCO) has put up on their own. In the deal, SeABank and PVFC committed to fund as much as 21.05 million USD each, equivalent to 80.8 percent of total loan. VIB Bank is lending 10 million USD. The loan will be matured in 108 months with a six month grace period. Interest rates were not disclosed, however. The deal will help develop cargo vessel teams, as domestic circulation and cross border trading are steadily increasing. At present, Vietnam ’s vessel teams only meet 20 percent of the nation’s demand, said a representative of SeABank, which sees this deal as an initial step for long-term investment in the maritime transportation sector. NOSCO, a member of Vinashin, had 923,74 billion VND (57.73 million USD) in total assets as of September 30. The company runs two main business segments, including waterways transport cargo and production, provision of and installation of parts and accessories for the maritime transportation. The company plans to focus on logistics, export labour and international tourism. Vietnam Airlines to offer e-tickets from June Vietnam Airlines, the national flag carrier, will start selling e-tickets in June. “Vietnam Airlines will complete preparations for the selling of e-tickets before May 31,” the airline Director General, Pham Ngoc Minh affirmed. He added that the move fits with the roadmap required by the International Air Transport Association (IATA). Following the selling of e-tickets, the carrier plans to deploy e-payment service. Vietnam Airlines has established cooperation ties with 20 airlines in the world. (Source: VNA)

Sovereignty of Vietnam over Spratly and Paracel Islands

Process of Establishing Vietnamese Sovereignty in the Archipelagos of Paracel and Spratly

Nguyen Nha
Dai Hoc Xa Hoi va Nhan Van TPHCM 2002


Note from translator (L.D.): This is not a literal translation of Nguyen Nha’s work. Only the main ideas were translated in a summary manner. Some passages were omitted for the sake of brevity.


Introduction


1. The Paracel and Spratly archipelagos have been considered Vietnamese territories for many centuries. These islands have both strategic and economic significance, and are now being claimed by many countries including China, Taiwan, the Philippines, Malaysia, and Brunei making it a political hotspot in the region.

This research aims at providing a cumulative, systematic, and detailed picture of the process of establishing Vietnamese sovereignty over the Paracel and Spratly islands.

2. Before 1909, Vietnamese sovereignty over the Paracel and Spratly islands had not been violated by China and other countries. There were not any effort of establishing sovereignty, but there were much documentation of Vietnamese sovereignty in the Paracels.

After 1909 there began to be newspaper articles written about the islands, especially towards the 1920s and early 1930s.

After 1954, these two archipelagos were given to South Vietnam to control according to the Geneva Accord. There was quite a conflict regarding ownership of the islands. As a result a number of significant works were done on the issue.

In 1974, People’s Republic of China invaded the Paracels and there were more major works related to the islands during this time and after 1975 both in China and Vietnam.

3. This work aims to examine the process of establishing Vietnamese sovereignty over Paracel and Spratly islands. The author documents the activities of establishment, occupation, and protecting the right of sovereignty over these islands throughout history so as to provide solid evidence regarding Vietnamese sovereignty over Paracel and Spratly.

…..

Chapter 1
Geographical Location, Natural Conditions of the Paracel and Spratly Archipelagos

1.1 Name and Geographical Location of the Pracel and Spratly Archipelagos

Formerly, both in the West and in Vietnam, it was thought that in the Eastern Sea there was a single long archipelago, and thus called it by a single name. Vietnamese people gave it the name of Bai Cat Vang or Con Vang or Hoang Sa. Sometimes it was referred to as Dai Truong Sa or Van Ly Truong Sa.

The Spanish and Dutch called the archipelago Parcel or Pracel. The French and English called it Paracel in the 17th and 18th centuries in their maritime maps.

A very distinctive point is that there was an agreement between the Western and Vietnamese names. Bishop Taberd noted clearly in the An Nam Dai Quoc map: Paracel seu Cat Vang (Paracel also known as Cat Vang).

The two archipelagos are located in the Eastern Sea. For decades, scientists have confirmed that there was a development of maritime culture on these islands that was completely different from Chinese culture

1.2 Paracel

The Paracel archipelago is located in an area about 15,000 square km, on the same latitudinal region with Quang Tri, Thua Thien, Quang Nam, and part of Quang Ngai provinces. From the mainland, it is closest to Vietnam. It has about 30 islands, rock formations, sandbanks, and other features comprising of the Crescent group in the South West and the Amphitrite group in the North East.

1.3 Spratly Archipelago

The French gives the name Archipel des iles Spratly. English and Americans call it the Spratley Islands or Spratlies. China calls it Nansha. The Philippines gives the name Kalayaan while it is called Shinnan Guto by Japan.

The island closest to Paracel is about 350 nautical miles away, while the one furthest from Paracel is 500 nautical miles. It is 305 nautical miles from Vung Tau, 250 nautical miles from Cam Ranh, 240 nautical miles from Phu Quoc, and 270 nautical miles from Binh Thuan (Phan Thiet). It is located in a sea area of about 160,000 – 180,000 square km. However, the total island size is only about 11 square km for the total of about 137 islands, rock formations, sandbanks, reefs, and other features.

1.4 Although the natural features support Vietnamese sovereignty, this is not the decisive factor.

1.5 Because of the strategic and economic significance of this region, especially the potential natural resources such as oil, control of this region is fiercely sought after.


Chapter 2
The Establishment of Sovereignty Over the Paracel and Spratly Archipelagos

The establishment of Vietnamese sovereignty over the Paracel and Spratly islands have not only been proved by Vietnamese documentation, but also by evidence from the West and China itself. At the same time, there was a process of occupation that was peaceful, continuous, and spanned many periods in history from the 17th until the 19th century.

2.1 Evidence

2.1.1 Vietnamese evidence

Vietnam has approximately 30 pieces of documentation from the times of the Nguyen Lords (beginning of 17th century), Tay Son, and Nguyen Dynasty (Emperor Gia Long) which very clearly affirm Vietnamese sovereignty over the islands.

In Thien Nam Tu Chi Lo Do Thu or Toan Tap An Nam Lo, 1686, it is noted clearly that each year the Nguyen Lords brought 18 boats to Bai Cat Vang (Hoang Sa) to make explorations.

In Phu Bien Tap Luc by Le Qui Don, 1776, it was described in detail in the second book that the Nguyen Lord established sovereignty of Dai Viet over Hoang Sa with the Hoang Sa and Bac Hai Companies. During the Tay Son rebellion, the people of An Vinh village continued to carry out activities on Hoang Sa.

There are numerous historical proof of Vietnamese sovereignty over the Paracel islands arising out of the Nguyen Dynasty (1802-1909).

- Du Dia in Bo Lich Trieu Hien Chuong Loai Chi of Phan Huy Chu (1821) and Hoang Viet Dia Du Chi (1833) both have similar accounts as seen in Phu Bien Tap Luc of Le Qui Don. Dai Nam Thuc Luc Phan Tien Bien, book 10 (prepared in 1821 and printed in 1844) continue to affirm Vietnamese sovereignty over the islands with the Hoang Sa and Bac Hai forces.

- Dai Nam Thuc Luc Chinh Bien, book 1 (1848) and book 2 (1864) and book 3 (1879) contain a total of 11 passages about the Paracel and Spratly islands (Hoang Sa and Truong Sa) with new and concrete information regarding Vietnam establishing sovereignty over the archipelagos.

- Kham Dinh Dai Nam Hoi Dien Su Le (1851) mentions about Hoang Sa in book 207. In book 221 it is written: “Hoang Sa is located in a very dangerous part of the sea. Each year there needs to be an expedition to make thorough explorations by sea. From this year on, in the last week of the first month, this will be done as customary.”

- Chau ban trieu Nguyen (19th century) is a very valuable document. Here we find reports made by various officials about as well as instruments used in the process of establishing sovereignty over the islands. Explorations were made, maps were drawn. An expedition was not made in the fifth year of Thieu Tri (1845), but was renewed the following year.

- Dai Nam Nhat Thong Chi (prepared in 1882, edited and printed in 1910) reported that Hoang Sa belonged to Quang Ngai Province and continued to confirm the activities of the Hoang Sa and Bac Hai Companies.

- Quoc Trieu Chinh Bien Toat Yeu, Book 3 of Quoc Su Quan trieu Nguyen, during the reign of emperor Minh Mang, has three passages related to the task of establishing sovereignty over Hoang Sa.

In addition the maps of Vietnam from the 17th to the 19th century all include Bai Cat Vang or Hoang Sa and Van Ly Truong Sa as part of Vietnam.

2.1.2 Evidence from China and the West

- In book 3 of Hai Ngoai Ky Su of Thich Dai San (written by a Chinese author), 1696 mentions about Van Ly Truong Sa (which is Hoang Sa) and confirms that the Nguyen Lords have been making explorations and exploiting the products on the islands.

- Ancient maps of China drawn by Chinese before 1909 all indicate that Tay Sa (Xisha or Paracel) and Nam Sa (Nansha or Spratly) did not belong to China. Looking at the Chinese maps before 1909, we see that there is no notation of Tay Sa and Nam Sa archipelagos. All those maps indicated that Hai Nan was the southernmost territory of China.

After China used violence to take over Hoang Sa in January 1974, Chinese expedition groups to the island claimed to “discover” ancient artifacts, potteries, etc.. on these islands, but none of these are valuable in determining Chinese sovereignty over the islands. On the contrary, they discovered on the Northern face a shrine “Hoang Sa Tu” on the Vinh Hung island (or Ile Boisée), which is further evidence of Vietnamese establishing sovereignty over the islands.

Evidence from the West

- The Diary on the Amphitrite Ship (1701) confirms that Paracels is an archipelago belonging to An Nam (Viet Nam).

- “Le Mémoire sur la Cochinchine” of Jean Baptiste Chaigneau (1769-1825) confirms that in 1816 the emperor Gia Long established sovereignty of Vietnam over the Paracels islands.

- “Univers, histore et description de tous les peuples, de leurs religions, mours et coutumes” of Bishop Taberd (1833) recounts that the emperor Gia Long officially asserted Vietnamese sovereignty over the Hoang Sa islands in 1816.

- The Journal of the Asiatic Society of Bengal, Vol. VI published the article written by Bishop Taberd regarding the above matter.

- In The Journal of the Geographycal Society of London (1848), GutzLaff noted that An Nam established a small port and camp to collect taxes on Paracels.

2.2. Vietnamese Government

2.2.1 The Emperor Minh Mang and Bo Cong has asserted numerous times that Hoang Sa and Truong Sa belonged to Vietnam.

2.2.2 Throughout the Nguyen Lords period, Hoang Sa and Truong Sa were seen as one and were administered bye Quang Nghia or Nghia under various administrative levels depending on the historical period.

2.2.3 The Hoang Sa Company began before or during the period of Lord Nguyen Phuc Tan (1648-1687) in the area of Sa Ky – Cu Lao which is an opening to the sea. The people here are seafarers who go out to search for valuable products of the ocean.

The responsibilities of the Hoang Sa Company were to collect valuable sea products and goods from sunken ships in the area of the Hoang Sa archipelago, manage, and direct the Bac Hai Company in the South, explore and report about criminal elements on the sea.

The Hoang Sa Company had both civil and military, both private and governmental characteristics. It had an economic role as well as a security role in the Eastern Sea.

2.2.4 The Bac Hai Company worked under the direction of the Hoang Sa forces.

2.2.5 The emperor’s naval forces began to carry out activities in 1816 by making explorations, taking measurements, and drawing maps.

In 1833 the emperor Minh Mang escalated the process of establishing sovereignty by ordering the erection of ownership tablets, and planting stakes annually with detailed information about individuals having responsibility on the islands.

The Emperor Minh Mang erected shrines and ordered the planting of trees on Hoang Sa and Truong Sa. The purpose of planting trees was to help ships recognize the islands in order to avoid accidents.

Chapter 3
The Continued Effort to Affirm and Defend Vietnamese Sovereignty in the Face of Foreign Aggression


3.1 From 1909 to Present

3.1.1 1909-1945

It is unfortunate that France did not protest Chinese aggression from the very beginning. It wasn’t until after China incorporated the Paracels into its Quang Dong Province that France began to pay attention to Hoang Sa. On 29 April 1932, the French government officially made a protest and included clear evidence of Vietnamese possession of the islands after making detailed investigations. After that, France proposed to take the case to international court. China refused this proposal.

On 13 April 1933, a small French naval force began the effort to retake Truong Sa. After that, the French government began to take more actions to re-assert Vietnamese sovereignty over Hoang Sa and Truong Sa. On 21 December 1993, France decided to incorporate Truong Sa into the Ba Ria province.

On 29 February 1938, Emperor Bao Dai incorporated Hoang Sa into Thua Thien province.

In 1938 a sign was erected on the Pattle (Hoang Sa) island with the following words: Républicque Francaise – Royaume d’An Nam – Archipels des Paracels – 1816 – Ile de Pttle 1938.

Other actions indicating sovereignty was taken on this and other islands in the same year. In June 1938, a Vietnamese defense force was sent to Hoang Sa.

On 5 May 1939 the Indochina Governor Jules Brévíe signed directive 3282, establishing two geographical agencies on the Hoang Sa archipelago.

3.1.2 1945-1954

Taking advantage of the situation of conflict between Vietnam and France, on 26 October 1946 Chinese forces invaded Hoang Sa and Truong Sa. The French government made a formal protest against Chinese occupation of the islands on 17 October 1947. China continued to refuse to resolve the conflict with the help of an international arbitrator. France sent forces (including Vietnamese national forces) to Hoang Sa.

In April 1950, Chinese forces withdrew from Hoang Sa and Truong Sa previous to that. On 14 October 1950, the French government officially returned Hoang Sa to the Bao Dai government to manage.

On 7 September 1951, Prime Minister and Foreign Minister Tran Van Huu in the Bao Dai government officially declared that the two archipelagos belonged to Vietnam. There was no opposition.

3.1.3 1954-1975

According to the Geneva Accord, the Paracel and Spratly islands fall below the 17th parallel, and therefore belonged to South Vietnam whose forces were sent to station on the Western side of Hoang Sa.

On 1 June 1956 South Vietnam’s Foreign Minister Vu Van Mau declared again Vietnam’s sovereignty over Hoang Sa and Truong Sa after the Philippines made claims of possession of the islands. France also reminded the Philippines of its control of the islands from 1933. On 22 August 1956, South Vietnam forces made their way upon the islands of Truong Sa and erected a tablet and flew Vietnamese flag.

On 13 July 1961, South Vietnam incorporated Hoang Sa into the Quang Nam province and established village Dinh Hai under Hoa Vang district.

On 6 September 1973, Truong Sa was transferred to the province of Phuoc Tuy.

On 19 January 1974, China invaded Hoang Sa.

On 20 January 1974 Vietnamese UN Observer requested that the UN Security Council examine China’s invasion and occupation of Hoang Sa.

On 14 February 1975, South Vietnam released the White Papers on Hoang Sa and Truong Sa.

3.1.4 After unification, the Vietnamese government continued to assert proper authority Hoang Sa and Truong Sa.

On 30 December 1978 Vietnam declared its opposition to China’s assertions in the issue of Truong Sa, re-asserted Vietnamese sovereignty over the two archipelagos, and restated that Vietnam wished to resolve the issue through peaceful diplomatic means.

On 30 July 1979, China released a document which supposedly said Vietnam had “admitted” that China had rightful ownership of Hoang Sa and Truong Sa.

On 7 August 1979, Vietnam claimed that China’s assertion was a distortion of the truth regarding Vietnam’s position on Hoang Sa and Truong Sa.

On 28 September 1979, Vietnam released a number of documents asserting Vietnam’s sovereignty over the islands and disputed the Philippines’ claim to virtually all of Truong Sa.

In December 1981, Vietnam released the White Papers: “Hoang Sa and Truong Sa are Vietnamese territories”.

On 4 February 1982, Vietnam incorporated Hoang Sa into Quang Nam-Da Nang province.

On 1 June 1984, Vietnam protested China’s decision to establish an administrative area of Hai Nan which includes Tay Sa (Xisha) and Nam Sa (Nansha).

On 10 November 1987, Chinese forces went up Louisa Island and after that continued to take over many other islands to Vietnam’s strong protests. This again occurred in May 1989.

In 1994 Vietnam protested China’s contract with the American company Crestones to conduct oil exploration on the region.

……………

3.2.2 Based on the evidence presented above, it can be seen that from the beginning of 17th century until the beginning of the 20th century, Vietnam had always established control over the islands in a peaceful manner and consistent with international principles at that time.

3.3 Disputing China’s Arguments

From 1909 until the present, China has made many changes in its arguments for ownership rights of Hoang Sa and Truong Sa. The inconsistency in their arguments, even inconsistency in the names for the islands (sometimes Nam Sa, sometimes Macclesfield, sometimes Spratley) in itself speak of the lack of historical truth. At first, China claimed that Hoang Sa had no owners, and beginning in 1909 presented arguments along this line. After that China took actions trying to occupy the islands.

Then China changed to other arguments: China discovered the islands the earliest, conducted economic activities on the islands the earliest, and administered it the earliest, at least since the time of the T’ang or Han dynasties.

On 30 January 1980 China declared: “Chinese ownership of Tay Sa and Nam Sa is indisputable.”

China then released a 795 page document filled with subjective and distorted arguments and evidence that had no historical support to counter Vietnamese claims, which were based on solid historical evidence.

Virtually all the original evidence given by China do not have much value since China no longer refers to them. It is undeniable that historical evidence from Vietnam constitutes the strongest counter-argument to those given by China.

Because of international law which states that the process of establishing sovereignty must be true, peaceful, and continuous in order for it to be meaningful, China’s latest argument is to attempt to claim that China was the first to conduct administrative activities on the island as propagated in various documents including the 1980 White Papers.

If we take the time to read every page of the document, it is not difficult to discover that the arguments are unscientific and unpersuasive. Yet, China has used these illogical, unclear, and inaccurate arguments to criticize the arguments in Vietnam’s 1979 White Papers. It even went as far as saying that Hoang Sa, Truong Sa are in fact not Tay Sa, Nam Sa of China, but perhaps some other small islands off the coast of Central Vietnam.

3.3.2 (Disputing arguments from other Southeast Asian nations claiming ownership of the islands)……

Conclusion


From ancient times until French colonialism, Hoang Sa and Truong Sa were considered by Vietnamese as one entity. During the French colonial period, they were separated into two archipelagos.

The Chinese names Tay Sa and Nam Sa appeared only since the beginning of the 20th century while the Vietnamese names “Hoang Sa or Cat Vang” appeared since the beginning of the 17th century.

Many historical documents affirm the location of Hoang Sa which is consistent with the present location.

Vietnam has adequate geographical, historical, and legal evidence to clearly prove an indisputable process of occupation of Hoang Sa and Truong Sa that was peaceful and continuous. Virtually all of the documents of Vietnam are official records of the process of establishment of sovereignty, coming from the very Vietnamese court.

All these evidence repute absolutely the inconsistent and ever changing arguments of China. At first, China claimed that the islands had no owners. After that, it was changed to China being the first to discover, to carry out economic activities, and to administer the islands at least since the T’ang or the Han dynasty. Even in how China refers to the islands change from time to time.

It is Vietnamese policy to assert absolute and indisputable sovereignty over Hoang Sa and Truong Sa islands in the past and in the future. Even if Vietnam has to wait a millennium as was the case in the first millennium for Vietnam to retake its control of Hoang Sa, it will wait patiently. The eternal strength that protects national territories and resist external invasion is still the strength of the Vietnamese people on the mainland as well as on the seas. As for Truong Sa, Vietnam must persist in defending until the end when the islands return in our control.

On the other hand, Vietnam has to patiently pursue the path of peaceful resolution, and engage in bilateral or multi-lateral negotiations in order to resolve the issue of sovereignty. In favorable conditions, Vietnam will continue to propose taking the matter to international court to resolve the issue of its sovereignty being violated. Vietnam always proves that it wants to engage in dialogue with other countries, and does not present a threat to any country.

Posted by Hoang Sa Truong Sa

Sovereignty of Vietnam over Spratly and Paracel Islands

PetroVietnam affiliate strikes oil offshore

HCM CITY — The VRJ Petroleum Company has discovered oil 135km southeast of Vung Tau in Block 09-3.

The Block 09-3 management committee represents PetroVietna, PetroVietnam Exploration Production Corporation, JSC Zarubezhneft and Indemitsu Cuu Long Petroleum Co Ltd.

The Block 09-3 covers an area of 3,300sq km with a depth of 50m below sea level, about 135km southeast of Vung Tau.

A total of three exploration and appraisal wells drilled. A maximum oil inflow of about 4,150 bbls per day, with one tonne being 7.3 bbl, was obtained from one well drilled in 2006.

The structure called Doi Moi of Block 09-3 overlaps the Nam Rong of Block 09-1, which is operated by Vietsovpetro.

Because of the placement of the structure, the field is called Nam Rong – Doi Moi. — VNS

Vietnam security jobs a tough business

Security guards just can’t get no respect

11:57' 03/01/2008 (GMT+7)

VietNamNet Bridge – Hanoi at 2am. The city is sleeping. The streets are quiet and few people are out. But many buildings and construction sites still have a single shining light and several uniformed watchmen walking around. Nguyen Van Hy, from Nam Dinh Province, now works as a guard for a bank on Hanoi’s Thai Ha Street. He has nearly 20 years experiences as a watchman. His parents died when he was 10, so Hy followed his older sister to earn a living in the capital city. After seven years as a street kid, living on odd jobs such as shining shoes, a friend introduced him to work as a guard for a restaurant. "But being a guard for a restaurant is not so simple," he says. "Not only guarding, we had to know how to serve customers so they would feel pleased with the service of the restaurant." Hy recalls that he was sacked more than once because his lack of courtesy annoyed some choosy customers. "Though my life was hard, I still had to pursue this job." Recognising that Hy was an honest man with experiences, a bank manager employed him as a guard. But Hy says he feels that, even though he has worked hard, everyone still considers him a guard who was once a street kid. One of his colleagues, Phi Van Giang, says most guards are not properly respected by other people. "Before working here, I worked as a ticket taker at Hang Day Stadium. One day, a young man without a ticket tried to jostle to get in. When I pushed him back, he spit in my face and insulted me. But I had to refrain myself," says Giang. A guard at the Ministry of Trade and Industry head office, Nguyen The Than, says not everyone is cut out for this work. "Around the clock, we have to keep our eyes and ears open. A little carelessness may result in a theft, and months of our salaries might not compensate for the stolen property," Than says. Than says he had to pay such compensation once, and many of his colleagues have faced the same situation. "Most stealing is by drug addicts," he says. "We have to keep watch and face drug addicts, so the job is dangerous, especially to guards in construction sites. Many times, the thieves threaten to stab us with syringes." Do Van Tinh patrols a construction site near Ngoc Khanh Lake. "Not so many thieves visit places being cleared," he says. "But at construction sites, where flats are being completed and expensive home fixtures are being installed, we always face thieves." Tinh says thieves at a bridge construction site killed a guard from Thai Binh Province last year, then threw his body into the river. "After that, we had to have dozens of guards on every night shift, and everyone has to be vigilant." Vietnam now has dozens of companies that supply guard services. Security services first appeared in the late 1990s, beginning with the Thang Long Security Service Co which protected Hong Kong singer Li Ming while touring Vietnam. In 2001, the Prime Minister issued Decree No 14 on security services, which the Ministry of Pubic Security implemented by issuing a circular. But both regulations only cover the conditions for establishing this form of company and do not regulate specific standards for employees or training. There is no official training programme or certification which recognises standards for a guard. Most security companies maintain their own in-house training programmes, which include training in the law and foreign languages, as well as martial arts, fire prevention and first aid. Tinh says many people consider guards uneducated, causing them to receive discriminatory treatment and disrespectful attitudes. But the job is both risky and necessary to protect lives and property. Most guards only want to be treated politely, Tinh says, while earning a living.

Vietnam's Foreign Direct Investment hits $83 billion

FDI hits $83.1bil over two decades

15:56' 03/01/2008 (GMT+7)

VietNamNet Bridge – Vietnam attracted a total of US$83.1bil in registered foreign direct investment in the 20 years from 1988 to 2007, the Ministry of Planning and Investment (MPI) reported yesterday. Registered FDI capital, 1988-2007. At the meeting with the Ministry of Information and Communication in Hanoi, Phan Huu Thang, head of MPI's Foreign Investment Agency, said, since 1988 when Vietnam introduced the Foreign Investment Law, 8,590 licensed FDI projects had been implemented. FDI in Vietnam increased significantly from 1988-1990 and 1991-1996, Thang said, adding that despite declines in 1997 due to the Asian financial crisis, foreign investment began to rise sharply again in 2000. "This can be considered as the second wave of investment in Vietnam. [The first wave being the period from 1991 - 1996 period]," Thang said. The average capital of foreign-invested projects also rose markedly since 1997, Thang said. In the 1988-1990 period, each FDI project was worth on average $7.5mil per year. During the 1991 -1995 period it was $13mil, while from 1996 -2000 it was $14.8mil. Affected by the 1997 regional financial crisis, the 2001 - 2005 period saw the average capital of foreign-invested projects of $5.2mil, but in 2006 and 2007 it was $14.4mil per project per year. Industry and construction attracted the greatest amount of FDI, accounting for 66.8% of all the projects and 61% of their registered capital, the agency reported. Top 10 FDI sources, 1988-2007. In comparison, the service sector attracted 22.2% of the projects and 34.4% of the registered capital. The agriculture-forestry-fishery sector accounted for 5% of all the national registered capital. In the past 20 years, 80 countries and territories have invested directly in Vietnam. Of those, 68% were in Asia, while EU investors accounted for 16.2% and American investors 11.8%. S Korea is currently the leading investor in Vietnam with nearly 1,900 projects worth about $13.5bil, followed by Singapore, Taiwan and Japan. However, in terms of disbursed capital, Japan comes first having invested $4.99bil in disbursed capital, followed by Singapore and Taiwan. HCM City, Hanoi, Dong Nai, Binh Duong and Hai Phong top the nation in terms of attracting FDI - both in number of projects and registered capital. Bottom of the list are Dien Bien, Lai Chau and Ca Mau provinces. FDI enterprises had contributed significantly to Vietnam's socio-economic development in the past years, Thang said. FDI enterprises accounted for more than half of the nation's export turnover, generating 1.26mil jobs. A further three million jobs were indirectly created by these enterprises, the agency said. Thang added that Vietnam had set itself the target of focusing FDI from now until 2020 in high technology, information technology, new energy production and service industries.

New $232 million polypropylene plant for Dung Quat EZ in Vietnam

The Viet Nam Oil and Gas Corp (PetroVietnam) and a consortium headed by a the Korean construction company Hyundai Engineering Co Ltd last week signed an engineering, procurement and construction contract to build a US$232 mln polypropylene manufacturing plant in Dung Quat Economic Zone. The contract will allow the consortium to build the first such plant in Viet Nam on 15 ha in the zone. The plant, designed to consume 260,000 tpa of propylene, will become operational in 2009.

The contractor consortium of LG International Corp., PV Engineering, PV Construction and Huyndai Engineering Co. Ltd. will cover engineering, general and detail design, procurement, construction and run tests over 28 months.

Zarubezhneft-led group finds oil offshore Vietnam

HANOI: VRJ Petroleum Co, 50 per cent owned by Russia's state oil firm Zarubezhneft, has discovered oil at a field off Vietnam's southern coast, state media reported on Friday. The oil field, called Nam Rong Doi Moi, is located 135 km (84 miles) southeast of the oil hub province of Ba Ria-Vung Tau, the Vietnam News daily reported. Tests showed an oil flow of 4,150 barrels of oil per day, the English-language newspaper said. State oil Petrovietnam owns a 35 per cent stake in the venture and Japanese oil refiner Idemitsu Kosan Co Ltd has 15 per cent.

Boeing finalizes DAE, Vietnam orders, sells record 1,300+ aircraft in 2007

Friday January 4, 2008

Boeing finalized Dubai Aerospace Enterprise's 100-aircraft order valued at $10.9 billion and also officially completed a $2 billion order for 12 787-8s from Vietnam Airlines and Vietnam Aircraft Leasing Co., pushing its total 2007 commercial aircraft orders to well over 1,300, a single-year record.

Boeing and DAE signed a letter of intent for the order, which includes 70 737NGs, at the Dubai Air Show (ATWOnline, Nov. 13, 2007). The Vietnam/VALC order, which was announced previously (ATWOnline, Oct. 3, 2007), pushes total 787 orders to 802.

Boeing said it delivered 112 aircraft in the 2007 fourth quarter led by 80 737NGs and 25 777s, bringing its total deliveries for the year to 441 led by 330 737NGs and 83 777s. As for orders, the manufacturer said on Dec. 18 that it had booked 1,213 for the year, but that did not include the DAE or Vietnam/VALC commitments. Boeing this week also announced/finalized orders with Gol and British Airways (ATWOnline, Jan. 2). The record year tops 2006.

Airbus similarly is expected to report a record number of annual orders for 2007, possibly topping Boeing's total. Combined, the two companies are likely to tally at least 2,700 orders for the year.

by Aaron Karp

Vietnam to upgrade central hospitals

www.chinaview.cn 2008-01-03 15:28:36

HANOI, Jan. 3 (Xinhua) -- Vietnam will spend 1.8 trillion Vietnamese dong (112.5 million U.S. dollars) upgrading big hospitals at the central level from now to 2010, according to local newspaper New Hanoi on Thursday.

Most of the fund will be used to equip existing hospitals in big cities and provinces nationwide with more advanced medical facilities, and build their branches in suburban areas. Now, hospitals specializing in treatment of tuberculosis, cancer and infectious diseases in such big localities as Hanoi capital, northern Hai Phong city and southern Ho Chi Minh City are heavily overloaded.

Vietnam's Health Ministry will issue more favorable mechanisms to encourage the development of private hospitals in the coming time.

In the 2006-2007 period, 66 private hospitals and 45,000 private clinics in Vietnam conducted a total of 75 million medical check-ups and tens of thousands of surgery, helping reduce overloads at state-run hospitals.

China should return islands to Vietnam

The Ottawa Citizen

Thursday, January 03, 2008

China has created a colossal new city called Sansha in the Hainan province. This city would encompass the archipelagoes of Paracels (Hoang Sa in Vietnamese) and Spratly (Truong Sa) in the South China Sea. These islands have long been considered part of Vietnam by the former regime in South Vietnam as well as its predecessors.

This action is the culmination of a chain of brazen manoeuvres taken by the People's Republic of China to gradually take away Vietnamese territory. Specifically, the People's Republic of China sent its navy on Jan. 19, 1974, to take over Hoang Sa; took over Truong Sa on March 14, 1988, annexed Truong Sa and Hoang Sa to the Province of Hainan on April 14, 1988; and annexed the historical Nam Quan Pass and the Ban Gioc Falls in North Vietnam in 2000.

The Vietnamese Communist regime itself is responsible for the losses of Vietnam's territorial sovereignty:

- Vietnamese Communist prime minister Pham Van Dong, in an official correspondence dated Sept. 14, 1958 with the People's Republic of China's government, "recognized and agreed with the government of the People's Republic of China's announcement on Sept. 4, 1958, defining the territorial waters of China" (to include the Spratly and Paracel archipelagoes);

- The Vietnamese Communist government remained silent when China took over Hoang Sa after a fierce battle with the navy of the former Republic of Vietnam on Jan. 19, 1974;

- The Vietnamese Communist Party secretly signed in 1999 an agreement with the Chinese government to cede Vietnam's sovereignty over the historical Nam Quan Pass, the Ban Gioc Falls in North Vietnam, and a substantial portion of the Vietnamese territorial waters in the Gulf of Tonkin.

The Vietnamese Canadian Federation condemns the People's Republic of China's world hegemony strategy and denounces the collusion of the Vietnamese Communist regime. We call upon all peace-loving and justice-upholding countries in the world to press the People's Republic of China to return these islands to Vietnam.

Vietnam is in danger of becoming China's next Tibet. Unfortunately, with Chinese authorities as its key mentor, the current Vietnamese Communist regime is in no position to fight back China's gradual encroachment upon Vietnam's territory.

Danh T. Nguyen, Ottawa

Vietnamese Canadian Federation

Vietnam to Add 20 Stock Listings in Quarter 1 of 2008

By Nguyen Pham Muoi

HANOI, Vietnam -- The Ho Chi Minh Stock Exchange is expected to add more than 20 listings in the first quarter, in line with government efforts to attract foreign investors.

"The HOSE will add 10 new listings in January, and the other companies will follow after they complete procedures," Deputy Director Le Hai Tra said. "Expanding the market is the key ...

Vietnam's seaport industry to bloom in 2008

Seaport industry to bloom this year

17:26' 03/01/2008 (GMT+7)

VietNamNet Bridge – There will be a nourishing of investment projects in the seaport construction industry in Vietnam in 2008, said Vuong Dinh Lam, Head of the Viet Nam Maritime Administration. These projects are expected to significantly change the current seaport system in Vietnam, which is operating below its potential in terms of both the number of ports and operational quality, Lam said. Currently, there are 17 active projects investing in seaport construction, most situated in the southern region, Lam said. The total registered capital to 2010 is US$1.5bil, and $2.4bil to 2020. Big projects include the Sai Gon Premier Container Terminal project, a joint venture between U.K P&O Ports Sai Gon Holdings Limited and Tan Thuan Industrial Promotion Company, which invested $249mil to construct a world-class container terminal with an estimated capacity of 1.5mil TEU. Vietnam National Shipping Lines, the nation's leading maritime construction firm, also plans a score of seaport projects for the new year, according to Vinalines general director Mai Van Phuc. "The investment will stretch out to all regions of the country," Phuc said. Beginning in 2008, Vinalines will launch the construction of the N2, N3 and N4 stations at the Cai Lan port in the northern province of Quang Ninh. Five new stations for 20,000 DWT ships will also be constructed at the Dinh Vu Port in coastal Hai Phong Province. The deep seaport project at Lach Huyen will also be launched no later than February 2008. In the central region, Van Phong seaport, which will be able to receive ships with capacity of up to 400,000DWT- or 17,000TEU- will be the key project. The seaport, once in operation, is expected to contribute significantly to the province and its neighbours. The effective use of Van Phong port could earn Khanh Hoa coastal province VND1tril ($62.5mil) each year, said a representative from Khanh Hoa at a workshop on marine-economy in Hanoi in December. Also in 2008, Vinalines will launch a seaport construction project in Son Tra peninsula in Da Nang in HCM City. In HCM City, Vinalines will co-operate with US SSA Holding International Viet Nam to build two new container stations in the Cai Mep - Thi Vai area. Another port construction projection in co-orperation with Denish Maersk A/S for ships with capacity from 80,000 - 100,000DWT will also be launched in this area. With these projects in 2008, hopefully the seaport industry situation in Vietnam would have significant positive changes, Phuc said. Current situation Shortcomings in the strategy as well as practical development of Vietnamese seaport system have long been identified by experts and responsible officials. Nguyen Ngoc Hue, Deputy Head of the Viet Nam Maritime Administration admitted that Vietnam is seriously lacking in high-capacity ports. "There's quite a few of our current 100 seaports able to receive ships with capacity of more than 50,000 DWT [this is the average capacity ship in the world]," he said. Most of the current ports in Vietnam are only able to receive ships with 10,000 DWT (accounting for more than 45% of the ports) and 10,000 - 20,000 DWT. The Ministry of Transport, in its assessment of the seaport system in HCM City in 2007, pointed out existing problems: a lack of long-term strategy, inaccurate forecasts of future demand, and slow and incomprehensive scheming. For a coastal country like Vietnam, the maritime economy- to which the seaport industry is a main contributor- holds great potential, but current exploitation is much lower than it should be, said Vo Dai Luoc, former president of the World Economy Institute, at a workshop in December." According to the Viet Nam Maritime Administration, the amount of goods trading through Vietnamese ports in 2007 is estimated at 174.3mil tonnes, an increase of 12.7% over 2006. Of this figure, container goods represented 4.3 tonnes, a year-on-year increase of 26.2%. Transit goods contributed about 17mil tonnes. (Source: Viet Nam News)

Vietnam's Da Nang becoming cruise ship destination

Foreigners flock to Da Nang for New Year

Central Da Nang city welcomed 950 foreign visitors from the UK , Italy and Spain on board the Costa Allegra cruiseship which anchored Tien Sa port on Jan. 3.

The visitors will tour Da Nang, former imperial city of Hue and Hoi An ancient town.

Da Nang Department of Tourism expects to receive over 10,000 tourists on board 17 cruise liners in the first quarter of 2008 and a total 28,000 tourists by sea for the whole year, a year-on-year rise of 18.4 percent.

(Source: VNA)

Vietnam needs $49 billion USD for 12 railways

Over 49 billion USD needed for 12 railways

The Viet Nam Railway Corporation has released a list of 12 railways projects in need of over 49 billion USD in investment for the 2006-10 period.

They include the Lao Cai-Ha Noi-Hai Phong line that needs 9.76 billion USD, the Da Lat-Thap Cham line with 320 million USD, the Bao Lam-Phan Thiet line with 1.3 billion USD, Yen Vien-Ngoc Hoi with almost 1.62 billion USD, the Bien Hoa-Vung Tau line with 400 million USD, the Trang Bom-Hoa Hung line with 550 million USD, the Sai Gon-Loc Ninh line with 300 million USD, Sai Gon-My Tho with 447 million USD, Ha Noi-Ha Dong with 370 million USD, Ha Noi-Hoa Lac with 938 million USD, the Hai Van tunnel with 200 million USD and Ha Noi-Ho Chi Minh City with 33 billion USD.

PetroVietnam affiliate strikes oil offshore

The VRJ Petroleum Company has discovered oil 135 km southeast of Vung Tau in Block 09-3.

The Block 09-3 management committee represents PetroVietnam, PetroVietnam Exploration Production Corporation, JSC Zarubezhneft and Indemitsu Cuu Long Petroleum Co Ltd.

The Block 09-3 covers an area of 3,300sq.km with a depth of 50m below sea level, about 135km southeast of Vung Tau.

A total of three exploration and appraisal wells have been drilled. A maximum oil inflow of about 4,150 barrels per day was obtained from one well drilled in 2006.

The structure called Doi Moi of Block 09-3 overlaps the Nam Rong of Block 09-1, which is operated by Vietsovpetro.

Vietnam holding fuel prices low

Petrol price not to be raised right now: MOF

11:24' 04/01/2008 (GMT+7)

VietNamNet Bridge – The world’s crude oil price unexpectedly soared to $100/barrel on January 2, 2008. Experts say that with such a crude oil price, the domestic petrol retail price should be VND17,000/litre. However, an official from the Ministry of Finance (MOF) yesterday confirmed that there would not be any price adjustment in the immediate time. The official said that the crude oil price is expected to escalate further in the days to come, but MOF will not consider any proposal on raising petrol price at this moment. He said that MOF is considering the plan to stabilize the petrol market, under which petrol importers would be required to contribute to a fund to hedge against volatility in global prices. Importers will have to contribute a part of their profits to the fund during times when import petrol prices are low. When world prices climb, they would receive rebates from the fund in return for keeping a lid on domestic retail prices. If the scheme is approved, the petrol prices will be much higher than the currently applied ones, because the domestic price levels would be closer to the world’s prices. The recently promulgated Decree 55 on regulating petroleum prices said that petrol importers and distributors can define the retail prices for petroleum products themselves. However, in fact, they only have the right to propose to adjust petroleum prices only, while the proposals must be approved by relevant ministries to become effective. If the plan is approved, enterprises will be given more autonomy in defining the petrol retail prices. They will have to inform the Ministries of Industry and Trade and Finance the prices they plan to apply for the whole years. At this moment, when the crude oil price surged to $100/barrel and has been staying firm at $97/barrel, Vietnamese importers have been incurring loss. Singapore, the main supplier of petrol to Vietnam, offered A92 petrol at $105.4/barrel yesterday. With such a price, petrol importers are incurring the loss of VND1,500/litre. Meanwhile, with the price of diesel soaring to $113.73/litre, importers are incurring the loss of VND2,435/litre. In 2007, Vietnam raised the petrol retail price five times as the result of the increased oil prices in the world. The latest price increase occurred on November 22, 2007, when the world’s crude oil price hit the $99/barrel. The sharp increases of petrol prices in 2007 were one of the reasons behind the high inflation rate of 12.63% in 2007. The import petrol prices: Date Price/barrel Dec 14, 2007 $98.9 Dec 21, 2007 $96.7 Dec 27, 2007 $101 Dec 28, 2007 $102.8 Jan 1, 2008 $102.4 (Source: Tuoi tre, VNE)

Vietnam Business Briefs

* Prime rate stays put at 8.25%
The State Bank of Vietnam has announced the annual prime interest rate of loans in dong applicable from January 1, 2008 at 8.25%, which has stayed unchanged since December 2006.

* Oil refinery project busy on New Year Day
More than 10,000 local and foreign employees did not take a day off on the New Year Day at the Dung Quat Oil Refinery to ensure the project’s smooth progress, according to Truong Van Tuyen, management head of the Dung Quat Oil Refinery. About 72% of the project has been completed and test-run is planned for mid-2008.

* FPT internet network jammed
Hundreds of subscribers crowded the FPT technical center in HCMC’s District 1 on Monday to lodge their complaints about the jam of the company’s internet network over the past days that negatively impacted on their business and activities. Pham Thanh Tuan, deputy director of FPT Telecom in HCMC, attributed the problem to recent network expansion and related changes.

* Work begins on dam in BR-VT
Construction is underway at a dam on the Ray River in Chau Duc District, Ba Ria-Vung Tau Province. More than 1.800 trillion (over US$111 million) is going to building dykes, canals and the 770-square-kilometer reservoir, which will be able to supply 535,000 cubic meters of water to Vung Tau City and the vicinity when it is completed in 2010, Sai Gon Giai Phong reports.

* Saigon Port aims for 25% growth
Saigon Port saw cargo throughput last year grow 20%, and has set a growth target of 25%. This year, Saigon Port is expecting revenue growth of 8% and pressing ahead with a plan to turn it into a holding company.

* Cooking gas price up
Suppliers of cooking gas yesterday increased their selling price by VND9,000 to VND251,000-253,000 a 12-kilo cylinder. The price hike resulted from higher price of gas on the world market, Nguoi Lao Dong reports.

* PM approves energy strategy
Prime Minister Nguyen Tan Dung has endorsed the national energy development strategy for 2020, envisaging 47.5-49.5 million tons of oil equivalent in 2010, 100-110 million tons in 2020, and 310-320 million tons in 2050, the Vietnam News Agency reports.

* Work moves on at power plant
More than 1,200 workers were on duty on New Year’s Day at A Vuong hydropower plant in Dong Giang District, Quang Nam Province to keep construction progressing as scheduled.

More heavy industry projects planned for next year

A number of large-scale projects will kick off early next year including a VND3 trillion (US$187.5 million) Phu My 3 Industrial Zone in Ba Ria-Vung Tau, a VND1 trillion iron cast and steel plant in Ha Tinh and a VND195 billion colored pottery factory in Quang Ninh. Yesterday, the People’s Committee of Vung Tau City in southern Viet Nam held a ceremony to hand over an investment license for the Phu My 3 Industrial Zone project to principal investor Thanh Binh-Phu My, a local Joint -Stock Company. The 942-hectare Industrial Zone situated at Phuoc Hoa Commune, Tan Thanh District, when completed, will be among the largest industrial zones in the southern region comprising Binh Duong, Ba Ria - Vung Tau and Ho Chi Minh City. The total investment capital into the project’s technical infrastructure is up to VND3 trillion, equivalent to US$187.5 million. In related news, the Vietnam Development Bank, the Vietnam Investment and Development Bank and the Bank for Foreign Bank of Vietnam (Vietcombank) have recently entered a contract to grant a long-term loan of VND750 million (US$46,889) to the Ha Tinh Steel Joint-Stock Company to build a cast iron and steel plant. The VND1,045 billion (US$65.3 million) cast iron and steel plant is invested by the Van Loi Steel Group and the Ha Tinh Mineral Corporation. The plant is scheduled to come into operation by the end of 2008 and has a designed capacity of 250,000 tons for its first phase. After that, it is expected to produce 500,000 tons of cast iron and steel annually. Similarly, the Commercial Joint-Stock Ocean Bank has signed a contract to loan VND195 billion (USD12.2 million) to the Hoang Ha Construction Joint- Stock Company to build a colored pottery factory in the Kim Son Industrial Zone in the northeastern province of Quang Ninh.

Disney-style $1.3bn Park set for approval in Vietnam

VNECONOMY updated: 31/12/2007

Vietnam’s first Disneyland-style theme park in the coastal town of Vung Tau is on the verge of getting an official investment certificate. Phan Huu Thang, director general of the Foreign Investment Agency under the Ministry of Planning and Investment, said the $1.3 billion project was being scrutinised by Vietnamese authorities. “We hope that the common support of line governmental agencies will result in an investment certificate for the project before the year’s end. Therefore, it will be a big complement to Vietnam’s foreign direct investment record breaker across 2007,” said Thang. He said that Good Choice Imports-Exports & Investment Inc - one of the affiliates of leading US real estate and investment firm Platinum Dragon Empire Incorporated (PDE) last month submitted an investment application for the Vung Tau Wonderful World Theme Park project, which will cover nearly 200 hectares in the Vung Tau-Bau Trung and be modelled on Disneyland. The giant project will also house the 88-storey Landmark Tower, a “Wonder of the World” site, where spectators will find replicas of the Eiffel Tower, Golden Gate Bridge, the Egyptian Pyramids as well an international conference centre, shopping malls, internationally-standard hotels and restaurants, 3D cinemas and open-air stages. The park will be able to accommodate 100,000 visitors around the clock. The developers plan to operate several components beyond 2010. Besides the park, Good Choice is also interested in a project to build an aquarium complex in Nghinh Phong Cape in Vung Tau coastal town. The multi-storey Vung Tau Aquarium will be modelled on one in Monterey, northern California. PDE’s chairman and CEO William Lee, a Vietnamese American, said he and other American investors wanted to boost tourism development in Vung Tau and transform this coastal city into a world-class tourist destination. “Despite being a popular tourist destination in the south, tourist and recreational facilities in Vung Tau are just a few. The local government’s spirit is to welcome new potential investors to come and develop tourism related projects,” a local investment and planning official said. Most recently, the US’ Gillmann Group, Fidelity Ventures and their partners were interested in investing $5 billion in a large-scale recreational complex in Ba Ria-Vung Tau province’s Ho Tram district. Meanwhile, US-based Winvest Investment LLC is working on its $300 million five-star Saigon Atlantis hotel and casino complex in the province.

Vietnam to build huge Industrial Zone in Ba Ria Vung Tau

Largest IZ in Ba Ria Vung Tau licensed

Nhan Dan – Southern coastal province of Ba Ria – Vung Tau’s Management Board of Industrial Zones granted an investment licence to the project to build the Phu My 3 Industrial Zone to the Thanh Binh Phu My Joint Stock Company. The IZ is located in Phuoc Hoa commune, Tan Thanh district. This is one of the largest IZ in the South-eastern region and the biggest in Ba Ria-Vung Tau province. The IZ covers 942 hectares. Total investment for the project is put at VND 3 trillion. The IZ is expected to be attractive to investors in such industrial fields as energy, metallurgy, chemicals and shipping industry. Around 85% of the IZ will be reserved for industrial production while the remaining 15% is for ports and bonded warehouse. Construction of infrastructural facilities in the IZ is scheduled to start in the 2nd quarter of 2008.

Vietnam Airlines reports 15.5 percent revenue rise

HANOI (AFP) — Vietnam Airlines on Monday reported revenues of 1.27 billion dollars for 2007, a year-on-year increase of 15.5 percent, despite high fuel costs and increased competition.

Pre-tax profits reached 23 million dollars, up 6.4 percent, the state-run carrier said in a statement.

The airline also said it flew its eight millionth customer of the year on Monday, and that it serviced 3.2 million customers on international flights, which made up 40 percent of total flights.

"This is an impressive development for Vietnam Airlines in 2007, especially in the context of fierce competition in the international and domestic market and high fuel cost," said general director Pham Ngoc Minh.

"In 2008 Vietnam Airlines targets nine million customers," said Minh, adding that the carrier aimed for revenue growth above 14 percent next year.

The airline reported seat-occupancy of over 75 percent in 2007, up 4.2 percentage points year-on-year.

Vietnam Airlines, which is set to be part-privatised soon to compete against new airlines and budget carriers entering the Vietnamese market, now has direct flights to 26 major cities in the Asia-Pacific region and Europe.

It operates 47 aircraft, including 10 Boeing 777s, 10 Airbus A320, 11 A321 and four A330s. It will receive four more A321s next year and four Boeing 787-8 Dreamliners ordered several years ago from 2009.

The airline, and an aircraft leasing company, this month also ordered 10 A350-900XWB aircraft and 20 Airbus A321-200s, after signing contracts for 12 Boeing 787-8 Dreamliners in November.

Under a modernisation plan, Vietnam Airlines says it expects to expand its fleet to 85 aircraft by 2015 and 110 planes by 2020.

Vietnam economy grows nearly 8.5 pct in 2007

HANOI (AFP) — Vietnam's economy grew by nearly 8.5 percent in 2007, the fastest rate in 11 years, after the country joined the World Trade Organisation, the communist government said Monday.

The gross domestic product (GDP) growth rate of 8.48 percent, compared to 8.2 percent in 2006, was one of the highest in Asia but was topped by neighbouring China, said the Government Statistics Office (GSO).

Industry and construction made up 42 percent of the developing country's economy, followed by the services sector with 38 percent, and agriculture, forestry and fisheries with 20 percent, said the GSO.

Vietnam, which launched market reforms two decades ago and joined the WTO in January, attracted a record 20.3 billion dollars in investment pledges after promising to further open its doors to foreign business under WTO rules.

South Korea topped the list of foreign investors with 4.4 billion dollars pledged, followed by the Virgin Islands, Singapore and Taiwan. Total foreign investment in 2006 reached 12 billion dollars.

Releasing its final economic estimates for the year, the GSO also said Vietnam was battling an annual inflation rate of 8.3 percent, driven in part by a 15 percent jump in food prices and higher fuel costs.

The trade deficit reached a record 12.4 billion dollars as a 21.5 percent rise in export revenues to 48.4 billion dollars was outpaced by a 35.5 percent jump in the cost of imports to 60.8 billion dollars.

The surge in import revenues was in part due to a sharp increase in machinery and equipment imports, up 56.5 percent to 10.4 billion dollars, and a 25.7 percent rise in the cost of refined oil products to 7.5 billion dollars.

On the export side, Vietnam -- which has fast offshore oil and gas reserves in the South China Sea but no operating refineries yet -- earned 8.5 billion dollars from crude oil sales, up 2.6 percent on 2006.

Export revenues from garments and textiles made in the low-wage country rose 33 percent to 7.8 billion dollars. Footwear exports rose 10 percent to four billion dollars and fisheries exports 13 percent to 3.8 billion dollars.

The United States was the top export market with 10 billion dollars in revenues, followed by the European Union with 8.7 billion dollars, and the 10-member Association of Southeast Asian Nations with 8 billion dollars.

Exports to Japan reached 5.5 billion dollars followed by China with 3.2 billion dollars, said the GSO.

In the tourism sector, Vietnam received 4.2 million foreign visitors, up 18 percent on 2006. Chinese topped the list, with about 575,000 arrivals or 13.6 percent of the total, followed by South Korea, Japan and the United States.

The Vietnamese government -- which said economic growth in 2007 was hampered by a series of typhoons, floods and disease outbreaks -- is targeting economic growth of nine percent next year.

Balance of world power is rapidly changing

Balance of world power is changing rapidly

Many wished and believed a decade after the Cold War ended that the future world would be a multipolar one. But at the same time, they also believed that as the overwhelming superpower, US hegemony would persist for at least another 50 years or even longer.
But recent years have shown that this is not the case.
Affected by economic globalisation and the pursuit of profit maximisation, and pushed particularly by “borderless information” and “hi-tech’s invisible hand”, the progress of world multipolarity has not been slow, but has accelerated in recent years.
Changes in the international balance of power have taken place faster than some American “futurists” had expected. Who would have ever imagined that China and India could develop at such surprising speed? Who would have thought that China’s (official) foreign exchange reserve could jump to be the world’s No. 1? Who would have thought that Russia would regain its great power status so rapidly?
After the quick rise of “BRIC” (Brazil, Russia, India, and China), 2007 has witnessed the emergence of “VISTA” (Viet Nam, Indonesia, South Africa, Turkey, and Argentina).
According to statistics, the foreign exchange reserves of developing countries make up three quarters of the world’s total. Three (China, Russia, and India) of BRIC are all “tycoons” in this area. Emerging countries’ proportion in the world economy has increased from 39.7 per cent in the early 1990s to 48 per cent last year.
Apart from China’s impressive speed, the annual economic growth rate of India has been maintained at six to seven per cent over the past decade, and is expected to be 8.5 per cent this year. Both China and India rank among the top three most attractive investing countries in the world (the US is obviously the other one).
Russia has also been enjoying rapid growth in the past seven years, with an annual GDP growth rate of 7.8 per cent and gold exchange reserves of $404.8 billion. More than $200 billion in debt left by the break up of the Soviet Union has almost been repaid. The country has returned to the list of the world’s top 10 biggest economies. Seeking to be among the top five by 2020, Russia’s GDP per capital may reach $30,000 by then.
Among the five VISTA countries, the annual GDP of Viet Nam has increased 8.7 per cent this year compared to 2006. The country has now become a leading one for trade and investment in Asia.
The total value of external trade of the Association of Southeast Asian Nations (Asean) exceeded $1.4 trillion in 2006, and its total domestic trade value was about $340 billion. The goal of forming an Asean Community will possibly be realised before 2015. The value of trade between China and Asean is expected to be $190 billion this year. The establishment of the China-Asean Free Trade Zone is accelerating.
Having become the biggest exporter to the Japanese and South Korean markets, the value of trade between China and Japan has exceeded $200 billion, and that between China and South Korea $160 billion. Conspicuous growth was also seen between China and the US, Australia, New Zealand, and Russia.
Some international economic groups have pointed out that the world economy is experiencing its biggest transformation since the Industrial Revolution. Economic centres have been shifting from the developed world to emerging markets in Asia, East Europe, Middle East, and Latin America. BRIC and VISTA are changing the economic structure of the world. These factors are persuasive.
Obviously, it cannot be said at this stage that BRIC, VISTA, and some other states have become “polars” of the world. But it is an irreversible trend.
It also cannot be said that the US, which still dominates international markets, has lost its leading position. But it is a fact that it is going “down hill”, and shrinking in relative power.
These changes, continuous and historical, will significantly affect future international relations.
In another development, regional conflicts and wars are likely to continue and intensify because the nature of the global strategy of the US will remain unchanged.
The US, whether under the Republicans or the Democrats, will continue to be the main antagonist. At the same time, the development of the international and regional situation will not change according to the whims of Washington. Under such circumstances, contradictions and conflicts are virtually inevitable and are likely to crop up from time to time.
If dealt with inappropriately, it could likely lead to wars. Currently, there is no shortage of international hot spots ~ the “Horn of Africa”, Iran-US, and America’s deployment of anti-ballistic missiles in some East European countries. The number of such hot spots will tend to increase in the future, a cruel reality that none of us want to see.
Conclusion: Development of the international situation requires China to fully make use of the strategic opportunities though tough challenges still exist.
President Hu Jintao’s report to the 17th Party Congress gives a better answer on to how to cope with such a situation. Hu’s words of “constructing a harmonious world”, is highly welcomed by the international community, and has “brought China and the world closer”.
However, we should be prudent and modest, enhance our sense of urgency and never lose our head.
Now some people with ulterior motives are singing a “song of praise” for China on the international platform, and are even advocating that “China, US jointly lead the world”. Some domestic media and “experts” are also espousing the belief that China is getting ready to “lead the world”.
China’s long-term strategic principle is peaceful development. We should maintain a balance between the two and avoid overly stressing any of them.
Policies and strategies are the lifeblood of our diplomacy, yet we should not confuse their roles. If we do so, we will face a significant loss in the future.

China Daily/ANN

(The author is a researcher on international relations based in Beijing)

Korea top investor in Vietnam with over $4 Billion

RoK continues to top investors list in Vietnam

The Republic of Korea (RoK) topped the list of 82 foreign investors in Vietnam in 2007 for the second consecutive year with 403 projects capitalised at a record of nearly Ú $4.2 billion. This is the highest yearly figure since RoK investors marked their presence in Vietnam in 1988. Aside from new investment, RoK enterprises poured an additional US $467 million into their existing projects in the country, according to the Foreign Investment Department under the Ministry of Planning and Investment. The RoK’s investment structure has changed with remarkable increases in both the number of projects and investment capital in real estate and other key industries such as energy, chemicals, petrochemical and steel production instead of the traditional focus on garment and footwear. The East Asian country has also attracted attention for its large-scale projects. Charmvit Group recently began work on a US $500 million project to build the 27-storey Hanoi Plaza Twin Towers which will house a five-star hotel and a high-end office building while Keangnam Group invested US $1 billion in building an office and hotel complex near the new International Convention Centre in Hanoi. According to Hong Ki Hwa, President of the Korea Trade-Investment Promotion Agency (Kotra), Vietnam has become an attractive destination for foreign investors thanks to many advantages, including low-cost labour, an improved investment environment, rapid economic growth and an ideal geographical position at the centre of the ASEAN bloc. A recent survey by the Korea Trade Association showed that in the future, Vietnam will be the second most attractive destination for RoK enterprises, after China. At the moment, many large groups from the RoK such as Posco, Samsung, Lotte and Kumho Asiana are present in Vietnam. However, RoK investors are worried about poor infrastructure and high land price in Vietnam in addition to the lack of information and language barrier. To address those concerns, the Government has focused on upgrading and developing infrastructure, including electricity and water supply systems as well as traffic works and ports, to facilitate investment activities, said Nguyen Thi Bich Van, Deputy Director of the Foreign Investment Department. Human resource training is also high on the list of the government’s priorities in the coming time, she added. As well as cutting down import taxes on goods in line with the country’s commitments to the World Trade Organisation (WTO), Vietnam will continue implementing its roadmap to open the service market, including telecommunications, transport, banking, insurance and securities services. (VNA)

Vietnam in 2008

New Year, new success!

New Year 2008 has come.

The year 2007 has passed and having a look back, we are proud of what we have done. Vietnam is going out to the ocean where there are both big waves and high winds. Joining the World Trade Organisation, Vietnam has faced more opportunities and also fiercer competition. However, the country's economic growth reached 8.44%, the highest rate during the past ten years. The number of poor households reduced from 19% to 14.8% and jobs were created for nearly 1,7 million people. Corruption is still rampant, however the corrupt officials have shrunk with fear and a number of them have been punished.

This is reflected through people's increasing belief as they have made further contributions to the State, accounting for 40.5% of GDP in terms of social investment. Foreign investors have also felt reassured by having registered to pour US $20.3 billion into Vietnam.

The position and strength promoted through thousands of years of national construction and defence have continued to develop during the past 20 years of renovation.

Emerging from a state of affair in the long past in which the country was removed on the world map by foreign invasions, Vietnam has now become a non-permanent member of the United Nations Security Council in the 2008-2009 term with the right to participate in deciding important international issues relating to security and peace.

We are proud of the recent great achievements but we will never feel complacent and subjective with these achievements as well as we will never get disheartened and pessimistic.

In this joyful moment, we are fully aware that there are still many issues of great concern because many people are still living in difficulties and poverty and their children are not able to go to school. In addition, the high rate of inflation, estimated at 12.63%, is posing great challenges to all the pay earners, let alone those people who live from hand to mouth.

For thousands of year, has our nation ever gone on without facing difficulties and hardships? However, through challenges, Vietnamese abilities and personalities have been trained and forged. We have mirrored ourselves to follow our ancestors' virtues and studied and followed the exemplary morals of Uncle Ho. So we are proud of what we have done in 2007. Let's advance firmly into the New Year 2008.

New Year, New Success!