Monday, September 29, 2008

Vietnam: Tourism riches at bloody war sites

Personal Impressions, Part III
William B. Ketter

The 1975 photograph of the last American helicopter lifting off the rooftop of the American Embassy in Saigon, a long line of luckless Vietnamese evacuees stranded below, created an indelible portrait of human desperation.

Those left behind had been soldiers in the defeated Army of the Republic of Vietnam (ARVN) or friends of the U.S. government. They anticipated dreadful consequences at the hands of Ho Chi Minh's victorious disciples.

They were right. The communist regime executed those considered most disloyal to the nationalist cause. Others were sentenced to long prison terms. But most were sent to so-called re-education camps to embrace the socialist credo of do as you're told, toil for the common good and forget about getting ahead through self-initiative.

Fortunately for Vietnam's future, the economic lessons of communism didn't take hold. And 20 years after the war's end, Vietnam abandoned strict control over everyday commerce and instead encouraged the awakening of an entrepreneurial spirit not seen since the American presence.

Open-market capitalism spawned new businesses, trade with former enemies, private investment and government ambition to attract hard currency through aggressive promotion of tourism.

The goal: turn the bloody sites of war into tourist shrines that might deliver badly-needed foreign dollars.

Sites such as the Ho Chi Minh Trail, an infamous series of zigzag paths that fed weapons and supplies to the communist troops in the south. Bombed heavily by American forces during the war, it is considered the national symbol of success.

Thus the government committed more than $400 million to restoring the historically important sections of the trail, and expanding it all the way to Saigon, now called Ho Chi Minh City. The highway project is expected to reduce congestion on narrow coastal Highway One, the only other north-south artery connecting the once-divided country.

Riding a motorcycle along the trail requires dodging water buffalo, cows, goats, dogs, ducks, chickens and pigs — and keeping your balance when large transport trucks or buses force you off the road. You also need to be alert to motorbikes and pedestrians darting out from side streets in towns and villages.

Surprisingly, though, construction crews have converted muddy jungle tracks into a shiny black thoroughfare that tourists can traverse by motorcycle, bicycle or foot.

Recommended stops include those sections bombed by American planes, and also sprayed with the powerful herbicide Agent Orange to expose supply and troop movements. The effects of the chemical are still visible as stunted foliage along the foothills and riverbank mangroves of north-central Vietnam.

The original trail extended into Laos and Cambodia, covering more than 10,000 miles. Thick jungle growth claimed most of it after the war. But strategic sections were maintained as a reminder of the communist will for an undivided nation.

The paved trail will measure about 1,000 miles when finished. Our merry band of bikers drove about half of it, starting outside Mai Chau in the north and ending at Hue near the 17th parallel, the old dividing line between north and south ironically known as the demilitarized zone. Ironic because more military action occurred within the zone than any other section of Vietnam.

War memorials dot the rebuilt trail, including an impressive 12-foot marble monument to the "victims" of Deo Da Deo mountain pass. American B-52s dropped tons of explosives and chemicals on this highest point of the trail near Phong Nha.

Phong Nha is also the scene of the Ke Bang caves, the oldest and largest limestone caverns in Asia. They are part of a huge national park, and one of the premier tourist sites in the country, drawing visitors from more than 100 nations.

The spectacular formations have enchanting names like Lion, Fairy Caves, Royal Court and Buddha. During the Vietnam War, they were used to protect munitions from B-52 raids. Phong Nha, in central Vietnam, was a key supply station for the North during the war

At Khe Sanh, the war's most publicized battle site, a symbolic "victory" statue juts from a weed-infested field that once hosted a strategic U. S. Marine outpost and airfield. Three bloody encounters, including a 75-day siege in 1968, are recounted in a nearby museum. Captured American tanks, helicopters and other war relics remind visitors that the final triumph belonged to the communists.

"It was comparable to defeating the French at Dien Bien Phu," remarks Nguyen Ngoc, the tour guide who prides himself on knowing the wartime history of his country. "It was that important; a critical psychological victory."

More than 10,000 North Vietnamese and scores of American soldiers died at Khe Sanh. The Vietnamese burn incense and place flowers at the stone memorial's base, which portrays a U.S. Marine raising his hands in surrender.

At Vietnam's largest military burial ground, Truong Son Cemetery, mourners pay tribute to "heroes of the American war" by burning bundles of fake $100 U.S. bills in incense pots so the soldiers will enjoy a rich afterlife. The dollar, it's explained, is worth far more than the Vietnamese dong, making it the preferred phony currency to honor the deceased.

"We hold no hostility toward Americans," said Nguyen Van My, who described himself as a 66-year-old army veteran during a brief chat at the cemetery. "We respect the dollar. It is a symbol of strength."

By contrast, the Vietnamese dong has been slipping badly as inflation besets the nation's economy. Twice devalued in the past year, it now exchanges at the rate of 16,800 dong for one American dollar. That makes Vietnam one of the few world bargains for U.S. tourists.

Hotels, food, transportation, clothes and jewelry are inexpensive. Our eight-day trip, booked through the Hanoi tour company OffroadVietnam, cost just $850 per person, including overnight accommodations, meals, Honda 160 cubic-centimeter motorcycles, fuel and two guides/interpreters.

We stayed in budget hotels, but the sheets were clean, the showers hot and even remote mountain stops featured air conditioning, although power blackouts occurred often during the early evening hours. And it did take a few nights to get used to the three-inch mattresses; a few mornings to develop patience for the coffee that slowly drips from a metal strainer atop the cup. But once done, it jolts you into the day's activities.

The investment in tourism is paying off because Vietnam offers some of the most charming tropical scenery in the world. The mist rising from the land against the morning sky is resplendent. The lush mountains and gorges and verdant valleys and endless rivers create a colorful landscape. A coast line that stretches for hundreds of miles along the South China Sea makes it a marvel of geography.

It also makes you wonder where the country would be in today's travel world had it not been mired in war for a half-century against the French, the Japanese, the Americans, the Cambodians and the Chinese.

ÔÇ¢ÔÇ¢ÔÇ¢

William B. Ketter is vice president of news for Community Newspaper Holdings Inc., a news company based in Birmingham, Ala., that owns more than 90 daily newspapers. Contact him at wketter@cnhi.com. For photo slide shows and video of his Vietnam trip, go to: www.cnhinews.com.

Saturday, September 27, 2008

Vietnam's marine tourism development not matching its potentials

VN’s marine tourism development not matching its potentials

Kiva.Dang

Vietnam’s marine tourism resources, including natural resources and human cultural resources, are very plentiful and diverse and have a high potential value for tourism. However, Vietnam’s marine tourism development does not match its potentials.

Vietnam is a coastal nation at the eastern edge of the Indochinese Peninsula, with over 1,000,000 square kilometers of forest and more than 3,000 big and small islands, mainly located off the northwestern shore of the Gulf of Tokin (Quang Ninh – Hai Phong) along with the two offshore archipelagoes of Truong Sa and Hoang Sa.

Vietnam’s coastal area overflows with sunlight and an abundance of white sand beaches together with beautiful vistas of forest, river deltas, seashores, the ocean and islands, as well as having unique sea socio-cultural factors. All of which are provide great marine tourism potential for Vietnam.

However, Dr. Le Trong Binh, Head of the Institute of Tourism Research and Development, says that marine tourism development has not been equal to both the resources that the nature offers and the cultural heritages created by the Vietnamese people in coastal areas, because there are too many inadequacies in infrastructure investment and the development of tourism areas, as well as tourism types and tourism products.

Dr. Nguyen Chu Hoi, Deputy Head of the Vietnam Sea and Islands General Department, states that marine resources are shared resources because they are usually open to all for exploitation. Profit contradictions between marine tourism development and the development of other sectors of the economy along beaches and on islands are increasing. This is due to a lack of co-operation between different sectors in using and managing the resources of coastal areas, the ocean and islands. Some areas have great marine tourism potential, but ports, docks or aquaculture zones, which cause negative impacts on tourism, have been built there.

Moreover, the participation of local communities in developing and managing marine tourism is still limited and passive. Law enforcement of land use laws along the ocean and off-shore is weak, and policies on ocean environmental management are not synchronized. Cultural standards of people living in coastal areas and on islands, as well as tourists’ awareness, are rather low, so marine tourism development in the direction of industrialization and integration still meets numerous difficulties.

Dr Le Trong Binh, Head of the Institute of Tourism Research and Development: Promote communication and broadcast on mass media. In the Plan on Vietnam tourism development until 2010 and vision to 2020, what field does the tourism sector give priority?

Dr Le Trong Binh: In the short term, priority is given to develop sea in Quang Ninh-Hai Phong, Central Northern, Thua Thien Hue-Da Nang-Quang Nam, Binh Dinh - Khanh Hoa - Binh Thuan, Ba Ria- Vung Tau, Kien Giang areas, which are given priority infrastructure structure to have enough capacity to welcome foreign tourists. Apart from that, it is notable to diversify and improve quality of tourism products, invest to develop new and unique tourism products of each area to meet demands of domestic and international markets.

Communication and broadcast on sea tourism have not long since paid due attention, how does it renew in the incoming time?

Dr. Le Trong Binh: The Vietnam National Tourism Administration (VNTA) will intensify communication and broadcast tourism on domestic and foreign mass media. VNTA has worked with CNN to promote Vietnam’s sea tourism, in which Ha Long Bay is focused. VNTA will also sign agreements on promoting Vietnam’s tourism with foreign mass media; making traditional products and organizing programs, events and fairs and conferences, exhibitions in Vietnam and foreign countries and boosting international cooperation in tourism promotion, advertisement, investment and development.

According to you, which measures to develop sea tourism stably?

Dr Le Trong Binh: Firstly, communicating to raise people’s awareness of important role of sea and island resources. Secondly, Inspecting and assessing the real situation of resources fund of sea and islands to classify value and capacity of each sea area to preserve and exploit in the most suitable way. Secondly, issuing a synchronic mechanism and institution to manage, invest and preserve, limiting overlap of related laws to ensure sustainable development.

Assc.Dr Nguyen Chu Hoi, deputy head of the Vietnam Sea and Islands General Department: Lack high-grade tourism products and services.

Due to not pay due attention to diversification of tourism types, Vietnam’s sea tourism so far still lack high-grade, unique, qualified and prestigious tourism products and services in domestic and foreign markets. Vietnam has not any international-standard general sea tourism area. Island is one factor to develop sea tourism, attracting tourists but it so far has not any model that is invested and exploited effectively and sustainably. Space on island completely differs from mainland but localities use socio-economic development and management model in mainland to apply on island. Moreover, traditional sea cultural values such as fishery festival, buffalo fight festival and famous historical-cultural relics in coastal areas such as temples, fishing village cultures, economic achievements over exhibition fairs in coastal cities are attractive for tourists but have not been exploited properly.

Mr Luu Nhan Vinh, director of Vietnam Tourism Company in Hanoi: participation of local people is very important.

Our sea tourism products are now not unique for localities or the country. In tourism sites, there are still vendors asking tourists with insistence to buy their goods or garbage leaves surrounding sites.

In order to develop tourism sustainably, participation of local people is very important, which will create specific, different and lively tourism products. To do that, it is necessary to cooperation between departments and sectors in promoting tourism, increasing meets and exchanges between travel companies with local people. Through that, local people understand their rights and responsibilities in tourism promotion.

From now to 2010, the tourism sector strives to increase 10-20 percent of number of international tourists year by year, and reach 5.5-6 million arrivals by 2010, of which sea tourism attracts around 80 percent of Vietnamese tourists and makes 70 percent of revenues. In 2010, revenue from tourism is expected to fetch 4-5 billion USD, two times higher than that of 2005.

Friday, September 26, 2008

Saigon's police bust high class call girl ring

Lam Thi Ngoc Hue
Ho Chi Minh City police have arrested the leader of a major prostitution ring that has been providing women for affluent clients since last year.

Lam Thi Ngoc Hue, who was initially found along with two other hired female sex workers “entertaining” customers at a hotel in District 3, was formally arrested Wednesday by District 3 police.

A news source said one of the three sex workers was a model who had previously competed in the Miss Sea 2006 beauty contest in Ba Ria-Vung Tau Province.

Hue confessed she has been a sex broker since the end of 2007 and she regularly scoured bars and discotheques in HCMC for attractive girls to recruit into her ring.

Hue had between 20-30 young girls in her network, including some who were amateur models.

Supplying sex workers to wealthy men at US$300-500 per encounter, Hue pocketed a “brokering fee” ranging from $100-150 per customer.

For clients who wanted companions on travel tours, the ring leader would provide girls starting at $500 per day per person.

Hue also confessed to serving as a sex worker whenever her girls were in short supply or upon customers’ orders.

Prostitution is illegal in Vietnam.

Quatron Steel builds steel fabrication unit in Vietnam

Wednesday, Sep 24, 2008

It is reported that Quatron Steel, 75% owned by Romania based Taher Invest, last week started work on a fabricated steel factory in Ba Ria Vung Tau Province.

Mr Fathi Taher chairman of Quatron Steel said that Taher Invest would invest USD 50 million in the plant, which would produce 42,000 tonnes of fabricated steel annually after construction finishes in 2 years. He expects the plant to be the biggest of its kind in Vietnam.

He added that the plant would employ between 800 and 1,000 workers and could start shipping out its products in March 2009 after the first phase of construction is completed. The first shipment would go towards the construction of the Marriott Hotel in Kabul.

Inflation, Miss Vietnam, and Modernization

By Kim N. B. Ninh

Dr. Kim N. B. Ninh is the Hanoi-based Country Representative of Vietnam for The Asia Foundation. She can be reached atkninh@asiafound.org.

Vietnam may be experiencing the highest inflation rate in the last two decades, a whopping 28% year-on-year in August, but of late the country is consumed with a different kind of crisis.  The latest beauty to be crowned Miss Vietnam on August 31, 18-year-old Tran Thi Thuy Dung, was discovered to not have finished secondary school, contrary to the government’s beauty contest regulations.

On the surface, the ingredients of this still unfolding scandal are rather mundane.  It turns out that the rules established by the Miss Vietnam organizing committee were different from those of the Ministry of Culture, asking for contestants to have “the level of high school and up” rather than the government’s requirement of a high school graduation exam.  Under furious media questioning, the organizing committee stuck by its gun, stating that although its regulations did not meet legal standards, the new Miss Vietnam did not do anything wrong.  Under more media investigation, there are now serious questions about whether Miss Vietnam’s school records have been doctored to show that she has completed the twelfth grade, even though she had left in the middle of the school year. 

The extent of media concern and public uproar over this are astounding.  In part, this is because beauty contests are no mere beauty contests in Vietnam.  The first beauty contest in socialist Vietnam was the Miss Vietnam beauty contest, organized by the Tien Phong newspaper since 1988, which celebrates its 20th anniversary this year.  I happened to be in Vietnam in 1988 and remember well the sense of excitement and adventure that the first Miss Vietnam contest generated.  The celebration of beauty was, in itself, a radical act in a system based on the ideology of labor and the common man.  Being the same as everyone else was, therefore, both a virtue and a necessity.  But by choosing one over all the others, that first beauty contest was a potent reminder in a closed environment that excellence is defined by being the best and identified through competition.

Vietnam has changed dramatically since then.  The story of this country emerging in the past decade as one of the most dynamic economies in the world, with a tremendous poverty alleviation record, is a remarkable one.  This is an achievement driven by the conviction of many Vietnamese that much time has been lost by wars, ideological conflicts, and historical fate, hampering the country’s development and modernization.  The sense of urgency is palpable, and Vietnam’s persistent efforts to accede to the WTO, achieve PNTR status with the U.S, and host APEC all at the end of 2006 were truly a culmination of a national desire for the country to take its place in the world.

Development is often equated with modernization in Vietnam.  The modernizing impulse is itself a historical legacy in a country marked by colonization; being branded as uncivilized allowed another the right to inflict violence.  Modernization, therefore, permeates many government campaigns and policies, intellectual discourse and trends, and public views and interests even if they are conflicting.  To be modern is to be able to take part in the global community and be recognized as outstanding, or at least, as capable.  In this context, over the past twenty years beauty contests have become a channel where that modernizing impulse intersects with a growing public appetite for entertainment.  The explosion of beauty contests in Vietnam in recent years is a clear indication.

The trend was capped this year when Vietnam hosted the Miss Universe 2008 in July.  The experience with accomplished global beauties, their rigorous training, and a well-known professional international beauty contest led to many discussions about the shortcomings of Vietnam’s own fledging beauty contest industry.  Certainly national pride plays a role; the new Miss Vietnam is supposed to take part in the Miss World contest later this year. But the many beauty contests are beginning to lose their appeal, and this latest scandal only adds to a growing public concern about fast-changing values in a market economy.

The innocence of that first beauty contest (among the prizes, a bicycle for the beauty queen which was later stolen) is being replaced by cynicism.  As the Vietnamese writer Ky Duyen commented in the Internet newspaper VietNamNet, the beauty contest scandal is one of a number of recent cultural scandals in Vietnam, in which fraud and deception are prominent.  So many things could be bought for personal gains.  For Ky Duyen, the sad truth is that “culture and education, which both drive social development and determine the unique character of a nation and of a society, are perhaps not capable of their responsibilities.”

Vietnam is in a sober mood, no doubt affected by the global downturn and its own inflation woes.  A beauty contest scandal has actually triggered more critical reflections about where the country is heading.  Vietnamese do not doubt the tremendous positive impacts of the economic reform process on their lives, but it is also a sign of maturity for many to be asking how best to address the social and cultural lags in the breakneck shift to market economy that affect the society as a whole. In this regard, modernization has costs and is not so easily defined.

Thursday, September 25, 2008

Coastline may get Strategic Marine to build third DSV

By Hwee Hwee Tan 

Filed from Singapore9/24/2008 5:42:19 AM GMT



A DSV

SINGAPORE: Singapore-based Coastline Maritime is looking at finalising the shipbuilding contract for a third diving support vessel (DSV) with Australia-based Strategic Marine towards the end of this year.


Coastline has already purchased the electrical package and engine for the vessel. The DSV will offer similar capabilities to two 143-metre long (469-ft) vessels now under construction at Strategic Marine's shipyard in Vung Tau, Vietnam.


Coastline is understood to be seeking a buyer for its third DSV unit. The two earlier vessels will be going on 12-year charters with Oceanografia after their scheduled deliveries from the yard towards the end of this year.


Meanwhile, Coastline will also be working on finalising a newbuild contract for a third multipurpose construction vessel with Drydocks SE Asia by early 2009. Coastline has two other construction vessels with Drydocks. The two vessels, Goliath and Samson, have been sold to Oceanografia and will be going on long-term charters with Pemex.  Deliveries are scheduled for the fourth quarter of this year and the first quarter of 2010.

Wednesday, September 24, 2008

A sewer runs through it

Sewage flows directly from a factory into the Rang River on an island off the coast of Vung Tau. Locals say the sewage is killing oysters and fish in the river. Farmers say they are losing their livelihoods as sewage kills their oysters, shrimp and fish.

Ho Van Tom gets choked up in tears and anger every time he thinks of all the money he put into his oyster business, which has all but vanished since oysters in the Rang River began dying two years ago.
Around a thousand families in the island commune of Long Son off the coast of Vung Tau are worried they may soon have no way to support themselves.

Long Son residents started collecting oysters some 10 years ago, an endeavor that was initially met with great success.

Many locals, who were until then in the throes of poverty, took out bank loans to set up small oyster operations along the Rang River.

But after years of profits, most of the farmers are finding themselves near bankruptcy these days.

The locals say that several factories pump sewage directly into the Rang River, where they breed their fish and seafood.

The factories are “cunning,” Tom says. “They install the drains underwater. They can only be seen when the river is at its shallowest point, from 5:30 p.m. to 6:15 p.m.”

No inspector would ever check at that time, he says.

The drains, about a meter in diameter, spew putrid, yellow water.

The residents say they want to send water samples to official agencies.

“That would prove how much these factories have polluted the river,” says Tom.

Tom himself gave three bottles ofthe water to reporters, asking them to give the samples to the Ministry of Natural Resources and Environment. “Ask them to save the river and save us,” he says.

But authorities have remained silent.

Many locals are on the verge of selling their land and houses to repay bank loans.

Pearls go bust

The oyster business on the island began over 10 years ago when a local man saw that oysters had begun sticking to items floating in the Rang River. He then spent all his money on materials he could use to catch oysters in this way, including car tires andother makeshift “traps.”

He made hundreds of millions of dong that year.

Rang River oysters soon became popular at Ho Chi Minh City restaurants and even overseas.

Tom says he earned a profit of VND12 million (US$735) after investing VND5 million ($306) in his first oysters in 2000.

He put the whole profit into his next batch and made VND60 million ($3,600) more the following year.

Over several years, Tom was able to save enough money to buy a large house and send his three children to high school and college, a rarity on the small island.

“Those were the best days for my family. Everyone in the commune enjoyed that time,” he says.

But with more oysters dying everyday, the joy has faded.

A local named Tran Van Than says he can only catch one or two oysters per day now.

Fish and other animals living in the river have also ended up dead, local residents say.

Nguyen Van Be Tu says he had bred 700 tons of shrimp, 600 kilograms of cockles and spent another VND100 million ($6,100) on rafts to attract oysters.

“But now all is gone,” he says, adding that the 200 families in his hamlet are the poorest in Long Son Commune and many of them had mortgaged their land to fund their oyster businesses.

“They cannot even fill their stomach these days; how can they pay the bank loans with increasing interest rates?”

As a whole, Long Son Commune has lost some VND50 billion ($3 million) in total profits since 2006, Tu estimates.

“The authorities should intervene,” he says. “The longer they wait, the sooner the residents will die.”

Tuesday, September 23, 2008

Vietnam's inflation hits 27.9 percent in Sept

The Associated Press
Monday, September 22, 2008
HANOI, Vietnam: Vietnam's inflation rose 27.9 percent in September, easing slightly from the 17-year high hit in August, the government said Monday.
The soaring consumer price index was driven by price increases in food, transportation, housing and construction materials, said the General Statistic Office, which often issues the data ahead of the month's end based on estimates.
The country's inflation rose to 28.3 percent in August, a 17-year high. The inflation rate was 27 percent in July, 26.8 percent in June and 25.2 percent in May.
Overall food costs were up 65 percent in September from a year ago, the government said. The price of housing and construction materials and transportation both rose 26 percent, it said.

Skyrocketing inflation has led to a wave of strikes at factories around the country from workers seeking higher wages.

As part of its effort to curb inflation, the government has increased interest rates and postponed thousands of public investment projects. The government also plans further spending cuts, according to the state controlled media.

The government said the average inflation rate in the first nine months of this year was 22.76 percent. It has forecast that inflation for all of 2008 could hit 25 percent.

The Asian Development Bank has lowered its growth forecast for Vietnam to 6.5 percent this year and 6 percent next year.

Last year the country's economy expanded by 8.2 percent.

When gold trading floors lack gold

17:09' 22/09/2008 (GMT+7)

VietNamNet Bridge – The happenings in the gold market in recent days have put gold trading floors in a bind. While the gold prices on trading floors have been decreasing, the prices on the in-kind gold market have been staying firm. Trading floors do not have big volumes of gold to pay out, irking clients.

 

Gold trading floors lack gold

 

Investors are making transactions
On September 15, when the in-kind gold price was quoted at VND16.95-17.05mil/tael, the gold price traded on Saigon Gold Trading Floor was just VND16.6mil/tael.

 

This was not the first time such a big gap (VND300,000/tael) between the prices of the two markets existed. The big gap prompted investors to withdraw gold from trading floors to sell on the in-kind market to get margin profit. As a result, several gold trading floors decided to lower the limit of gold investors can withdraw per day.

 

Under the operation regulations of many gold trading floors, set up by the floors’ operators, investors can withdraw gold whenever they want.

 

At the SJC Hanoi gold trading floor, run by Ha Thanh Securities Company and VP Bank, an institutional investor can draw out 50 taels of gold per day, while an individual investor can draw out 20 taels per day. Those investors who want to draw out more than the stipulated volumes have to register with VP Bank. The bank then considers the situation to make a decision about whether to satisfy the investors’ demands.

 

Currently, some trading floors do not set fixed volumes of gold investors can withdraw per day. They are setting different limits on different days after considering the market situation. This really disadvantages investors because they cannot take initiative in making investments.

 

Most recently, ACB Gold Trading Floor released a notice on reducing the limit of gold investors can withdraw per day to one tael instead of three taels as previously.

 

Currently, most gold trading floors cooperate with the Saigon Jewellery Company (SJC), a big supplier with SJC trademark gold, in supplying in-kind gold to serve clients’ demands for withdrawing gold. However, as SJC cooperates with many gold trading floors, it sometimes cannot provide enough gold for all the floors.

 

Low liquidity, why?

 

Explaining the big gap between the prices on the gold trading floors and the in-kind gold market, Huynh Trung Khanh, Deputy Chairman of the Vietnam Gold Trade Council, said that the prices on the trading floors have been closely following the world’s prices, while the prices on the in-kind gold market have been changing more slowly.

 

Moreover, Khanh said the supply of gold has been limited (the import quota has run out and enterprises cannot import more gold), while the demand is still high; therefore, the in-kind gold price has remained high and only decreased very slightly. 

 

“We cannot purchase gold at high prices in the in-kind market to give to investors. If we do this, we would incur the loss of several hundred thousand VND per tael,” the director of a gold trading floor revealed.

 

Experts have urged management agencies to set a proper legal framework on the operation of trading floors in order to ensure benefits for investors.

 

Saturday, September 20, 2008

AP reporter detained, beaten by police in Vietnam

By JOCELYN GECKER – 

BANGKOK, Thailand (AP) — An Associated Press reporter in Vietnam was punched, choked and hit over the head with a camera by police who detained him Friday while he covered a Catholic prayer vigil in the communist country.

Ben Stocking, the Hanoi bureau chief for The Associated Press, was released from police custody after about 2 1/2 hours and required four stitches on the back of his head. His camera was confiscated by police.

"They told me I was taking pictures in a place that I was not allowed to be taking pictures. But it was news, and I went in," Stocking said by telephone from Hanoi.

Stocking, 49, was covering a demonstration by Catholic priests and church members at the site of the former Vatican Embassy in Hanoi, which is currently the subject of a land dispute between the church and city authorities.

The city had started to clear the site Friday after announcing a day earlier that it planned to use the land for a public library and park — a significant development in an already tense relationship between the church and state in Hanoi.

After Vietnam's communist government took power in 1954, it confiscated property from many landowners, including the Catholic Church. The church says it has documents showing it has title to the land.

Within minutes of arriving at the prayer vigil, Stocking said, he was escorted away by plainclothes police who took his camera and punched and kicked him when he asked for it back.

Taken to a police station for questioning, Stocking tried to reach for his camera and an officer "banged me on the head with the camera and another police officer punched me in the face, straight on." The blow from the camera opened a gash at the back of his head.

Transferred to another police station to give a written statement, Stocking was permitted to leave with a U.S. Embassy official to be taken to a medical clinic.

The AP is protesting the incident, seeking an apology from Vietnamese authorities involved and insisting on the return of Stocking's property.

"It is an egregious incident of police abuse and unacceptable treatment of a journalist by any civilized government authority," said John Daniszewski, the AP's managing editor for international news. "Ben Stocking was doing his job in a calm, reasonable and professional manner when he was escorted away and violently assaulted."

U.S. Embassy spokeswoman Angela Aggeler said a formal statement of protest was filed with the Foreign Ministry.

The Foreign Ministry did not immediately respond to e-mail and telephone requests by the AP seeking comment.

Violence is rare against international journalists in Vietnam, which has strict controls that govern press activities and travel. Foreign media have to register with the Foreign Ministry and get permission to go to remote provinces.

The first portion of Stocking's arrest was captured by an anonymous cameraman and posted on YouTube.

Thursday, September 18, 2008

Vietnam Today: Capitalism, tourism and technology draw country out of the past

CNHI News Service

September 17, 2008 01:50 pm

— Editor’s note: William B. Ketter is vice president of news for Community Newspaper Holdings Inc., which is based in Birmingham, Ala., and owns 89 daily newspapers including the Cumberland Times-News. The following excerpt is from the journal he kept during a trip in July when he rode a motorcycle down the Ho Chi Minh Trail.
This three-part series on Vietnam is based on the personal impressions of William Ketter, CNHI’s vice president of news, during a recent two-week trip to the country that played a major role in American politics, foreign affairs and cultural change during the 1960s and 1970s. 
The trip included an eight-day motorcycle trek down remnants of the infamous Ho Chi Minh Trail with five other Americans. The group covered 850 miles, from the northern mountains of Vietnam to the former American military base at DaNang and China Beach, on the coast of the South China Sea.
It was Ketter’s second trip to Vietnam. His first visit occurred in 1995, when he led a group of American editors on a fact-finding mission.
Vietnam: Land of communist capitalism
Personal Impressions - Part 1
When Ho Chi Minh’s battalions swept into Saigon 33 years ago to establish a reunited Vietnam, the communist conquerors made one critical miscalculation: military victory would make life better for the war-weary nation.
Instead, economic conditions worsened, starvation spread across the entire country, and national sacrifice became the common denominator that defined a long and dark post-war period for the north and the south.
"We struggled through very lean years after the Americans left,” remembers Nguyen Ngoc, son of a decorated North Vietnamese army officer. “The government issued food rations. A bowl of rice had to last a week; shreds of meat a month’s time. You killed a chicken without a sound so you didn’t have to share it with your neighbors.”
Certainly not the socialist dream “Uncle Ho” talked about before dying of a heart attack in 1969 and which his followers strived to fulfill with tight government control over business and commerce upon winning the war in his stead.
Free-market wheeling and dealing, prevalent in South Vietnam during the French and American presence, bid a hasty retreat, crushed by the communist credo of one-for-all and all-for-one. Individual and corporate investment withered.
Until the 1990s, that is. That’s when Vietnam fully embraced the Chinese model of open-market capitalism while clinging to a strict communist political system. Despair turned to daring. Even those Vietnamese who fled the country – known as Viet Kieu -- were invited to invest in the homeland. And they did – at the current rate of $7 billion a year, according to government figures.
Today, Vietnam is still one of the world’s impoverished nations, but a recent two-week vacation there, including eight days on a motorcycle down remnants of the renowned Ho Chi Minh Trail, provided evidence the country is clear-eyed about opening its doors to the world.
“We will never be as rich as you Americans,” said Ngoc. “But we’re now enjoying a better life. We can own property, start businesses, make good money. We have rice, coffee, tea, rubber and oil ” – significant exports that fuel free-market reforms that, in turn, spawn English-language newspapers, magazines and television programs. None, of course, enjoy press freedom as we know it. They do, however, aggressively report crime, corruption and catastrophes. And they did not appear to sugar-coat the country’s economic challenges.
"It is true the communists have ultimate control over the news media,” said Ngoc. “But it is not in the interest of the communists or Vietnam to black out the news of things that everybody knows about anyway through the Internet.”
Ngoc, who served as chief guide and interpreter for the motorcycle adventure, is an example of the new Vietnam, second only to China in economic growth in Asia since 2002.
At 34, he has no personal memory of the war that killed 3 million Vietnamese soldiers and civilians as well as nearly 60,000 American military fighting on behalf of the South Vietnamese. College educated and fluent in French and English, he reads and listens to the news in all three languages, residing with his wife and three-year-old daughter in a modest home in Hanoi. He’s considered a tourism expert, serves as a consultant to travel agencies and is the proud owner of a start-up company (Vietnamontrails.com) that specializes in customized motorcycle tours.
Ngoc loves Vietnam, reveres Ho Chi Minh as the George Washington of his country, lives to ride a motorcycle and raves about the scenic beauty of his native northern landscape. He is not, however, a member of the Vietnamese Communist Party.
Two-thirds of Vietnam’s 85 million people were, like Ngoc, born after American combat ended in 1973. They are reminded of the bloody clash by their elders, monuments and museums – all of which tout victory over “American imperialism.” But the war does not grip the Vietnamese psyche the way it weighs on the American mind.
Furthermore, the country’s communist leaders no longer insist on command and control of everyday life. People are encouraged to show initiative and get ahead. Ngoc estimated there are only about 3 million card-carrying communists.
“You join the party if you want a career in politics or government,” said Ngoc. “Otherwise, there’s no need to belong. As a nation we are comfortable with the arrangement. We all want a prosperous Vietnam.”

Vietnam: Tied to the past, seeking the future
Personal Impressions - Part 2
Vietnam is a country blessed by fertile lands, bountiful seas and an industrious human spirit. Yet the average personal income is less than $500 per year, and nearly one-third of the people live in poverty.
Dreadful as those statistics can seem, they’re a vast improvement from the country’s dark period during and after the Vietnam War and before the adoption of open-market capitalism in the 1990s.
Now, even ordinary Vietnamese appear optimistic about their economic future, pointing to the country’s achieved goal of making the Internet available everywhere, including remote mountain villages.
“We’re on our way to a better life,” said Nguyen Ngoc, a confident 34-year-old entrepreneur from Hanoi who recently started a motorcycle tour business. “Tomorrow will be bigger and better than yesterday.”
Vietnam took a big step toward that goal when it joined the World Trade Organization, two years ago, opening access to more overseas markets and attracting greater foreign investment.
The United States, which refused to trade with Vietnam for nearly 20 years after the war, signed a bilateral trade agreement with its former enemy in 2001, and is now the leading export market for Vietnamese goods, followed by the European Union, Japan and China.
On the home front, a skilled and low-wage workforce competes with China, Indonesia and India for electronic and textile manufacturing jobs. Canon recently opened a large inkjet printer plant outside Hanoi. Sony, Intel, Samsung and other electronic firms are likewise bullish on the land of the dragon. Textile and shoe manufacturing are also on the move. Nike makes more than 80 million pairs of shoes in Vietnam annually.
Still, Vietnam is mainly an agricultural country, with more than 70 percent of the people living on farms and in villages, and the bulk of the economy tied to the fate of rice, coffee, tea, rubber trees, pepper plants and cashew nuts.
It also remains a contradiction between 19th century farming methods and 21st century technology – as witnessed during the 850-mile motorcycle trip from the 10,300-foot high mountains northeast of Hanoi, the national capital, to Hoi An, a charming seacoast community in the southwest.
In the country, water buffalo plough rice fields, and women in conical hats stoop for hours to harvest the crop, one stalk at a time. On their way home, they strap bundles of wood to their back for fire or balance fruits and vegetables on both ends of a bamboo pole for that night’s dinner in one and two-room homes.
But amazingly in remote northern villages like Phu Yen, Mai Chau and Tan Ky -- where our motorcycle group of six Americans stayed overnight -- Internet cafés serve tourists and locals, including teenagers playing Bubble Shooter, Raiden X and other popular online games. Mobile phones are commonplace in country and city.
“It is strange, right?” remarks Hoang Ngoc Minh, 26, a tour guide from Hanoi. “We are a country of differences. The Internet is everywhere. So too the traditional ways of living off the land.”
Dao Quong Binh, an economist and journalist with the Vietnam Economic Times, put it this way during an interview at the upscale Intercontinental Hotel in Hanoi:
“Land is the property of the people in Vietnam and no taxes or rent are required for use in agriculture,” he explains. “As we increasingly transform to a market economy, modernization will naturally take place in the rural regions along with the cities. New, more efficient techniques will be introduced.”
Binh is counting on Vietnam keeping up its fast pace. He has invested in several niche lifestyle publications, and has plans to start an auto magazine even though the Great Wheel of the country is definitely the motorbike.
Cars will inevitably replace two-wheel transportation as people gain wealth in the new Vietnam, says Binh. When that happens, they will need a reliable reference source on what kind of automobiles to buy and how to maintain them, something he expects his magazine to provide.
“It can’t miss,” he asserts.
For now, however, there are more than 20 million motorcycles, motorbikes and scooters in Vietnam, and fewer than 750,000 cars and trucks. The result is an urban sea of cycles constantly honking their horns.
Navigating this chaos is perilous. Traffic rules don’t apply, stop lights and signs are mostly nonexistent, and crossing the street by foot or driving through an intersection puts your life at risk. More than 40 traffic fatalities occur every day, making Vietnam one of the highest road death countries in the world.
The key to avoiding injury and staying alive is “always move forward. Don’t step back or stop in your tracks,” said Margie Mason, an Associated Press correspondent in Hanoi.
Good advice whether you’re walking across the street or riding a motorcycle.

Vietnam: Tourism riches at bloody war sites
Personal Impressions - Part 3
The 1975 photograph of the last Marine helicopter lifting off the rooftop of the American Embassy in Saigon, a long line of luckless Vietnamese evacuees stranded below, created an indelible portrait of human desperation.
Those left behind had been soldiers in the defeated Army of the Republic of Vietnam (ARVN), or friends of the U.S. government. They anticipated dreadful consequences at the hands of Ho Chi Minh’s victorious vassals.
The beauty of Vietnam is evident in the hills and valleys of the northern highlands. The mist rising from the land against the morning sky creates a picture-postcard scene.
They were right. The communist regime executed those considered most disloyal to the nationalist cause. Others were sentenced to long prison terms. But most were sent to so-called re-education camps to embrace the socialist credo of, do as you’re told, toil for the common good, and forget about getting ahead through self-initiative. 
Fortunately, for Vietnam’s future, the economic lessons of communism didn’t take hold. And 20 years after the war’s end, Vietnam abandoned strict control over everyday commerce and instead encouraged the awakening of an entrepreneurial spirit not seen since the American presence.
Open-market capitalism spawned new businesses, trade with former enemies, private investment -- and a government ambition to attract hard currency through aggressive promotion of tourism.
The goal: turn the bloody sites of war into tourist shrines that might deliver badly-needed foreign dollars.
Sites such as the Ho Chi Minh Trail, an infamous series of zigzag paths that fed weapons and supplies to the communist troops in the south. Bombed heavily by American forces during the war, it is considered the national symbol of success.
Thus the government committed more than $400 million to restoring the historically important sections of the trail, and expanding it all the way to Saigon, now called Ho Chi Minh City. The highway project is expected to reduce congestion on narrow coastal Highway One, the only other north-south artery connecting the once-divided country.
Riding a motorcycle along the trail requires dodging water buffalo, cows, goats, dogs, ducks, chickens and pigs – and keeping your balance when large transport trucks or buses force you off the road. You also need to be alert to motorbikes and pedestrians darting out from side streets in towns and villages.
Surprisingly, however, construction crews have converted muddy jungle tracks into a shiny black thoroughfare that tourists can traverse by motorcycle, bicycle or foot. 
Recommended stops include those sections bombed by American planes, and also sprayed with the powerful herbicide Agent Orange to expose supply and troop movements. The effects of the chemical are still visible as stunted foliage along the foothills and riverbank mangroves of north-central Vietnam.
The original trail extended into Laos and Cambodia, covering more than 10,000 miles. Thick jungle growth claimed most of it after the war. But strategic sections were maintained as a reminder of the communist will for an undivided nation.
The paved trail will measure about 1,000 miles when finished. Our merry band of bikers drove about half of it, starting at Tan Ky in the north and ending at Hue near the 17th parallel, the old dividing line between north and south ironically known as the demilitarized zone. Ironic because more military action occurred within the zone than any other section of Vietnam.
A herd of cows obstructs the Ho Chi Minh Trail in central Vietnam. Driving the trail requires dodging all kinds of farm animals and domestic pets.
War memorials dot the rebuilt trail, including an impressive 12-foot marble monument to the “victims” of Deo Da Deo mountain pass. American B-52s dropped tons of explosives and chemicals on this highest point of the trail near Phong Nha.
Phong Nha is also the scene of the Ke Bang caves, the oldest and largest limestone caverns in Asia. They are part of a huge national park and one of the premier tourist sites in the country, drawing visitors from more than 100 nations.
The spectacular formations have enchanting names like Lion, Fairy Caves, Royal Court and Buddha. During the Vietnam war, they were used to protect munitions from B-52 raids. Phong Nha, in central Vietnam, was a key supply station for the North during the war.
At Khe Sanh, the war’s most publicized battle site, a symbolic “victory” statue juts from a weed-infested field that once hosted a strategic U. S. Marine outpost and airfield. Three bloody encounters, including a 75-day siege in 1968, are recounted in a nearby museum. Captured American tanks, helicopters and other war relics remind visitors that the final triumph belonged to the communists.
More than 10,000 North Vietnamese and scores of American soldiers died at Khe Sanh. The Vietnamese burn incense and place flowers at the stone memorial’s base, which portrays a U.S. Marine raising his hands in surrender.
At Vietnam’s largest military burial ground, Truong Son Cemetery, mourners pay tribute to “heroes of the American war” by burning bundles of fake $100 U.S. bills in incense pots so the soldiers will enjoy a rich afterlife. The dollar, it’s explained, is worth far more than the Vietnamese dong, making it the preferred phony currency to honor the deceased.
“We hold no hostility toward Americans,” said Nguyen Van My, who described himself as a 66-year-old army war veteran during a brief chat at the cemetery. “We respect the dollar. It is a symbol of strength."
By contrast, the dong has been slipping badly as inflation besets the Vietnamese economy. Twice devalued in the past year, it now exchanges at the rate of 16,800 dong for one American dollar. That makes Vietnam one of the few world bargains for U.S. tourists. Hotels, food, transportation, clothes and jewelry are inexpensive. Our eight-day trip, booked through the Hanoi tour company Offroad Vietnam, cost just $850 per person, including overnight accommodations, meals, Honda 160 cubic-centimeter motorcycles, fuel and two guides/interpreters.
We stayed in budget hotels, but the sheets were clean, the showers were hot, and even remote mountain stops featured air conditioning, although power blackouts occurred often during the early evening hours. And it did take a few nights to get used to the three-inch mattresses; a few mornings to develop patience for the coffee that slowly drips from a metal strainer atop the cup. But once done, it jolts you into the day’s activities.
The investment in tourism is paying off because Vietnam offers some of the most charming tropical scenery in the world. The mist rising from the land against the morning sky is resplendent. The lush mountains and gorges and verdant valleys and endless rivers create a colorful landscape. A coast line that stretches for hundreds of miles along the South China Sea makes it a marvel of geography.
It also makes you wonder where the country would be in today’s travel world had it not been mired in war for a half-century against the French, the Japanese, the Americans, the Cambodians and the Chinese.

Copyright © 1999-2008 cnhi, inc.

Photos

 
William B. Ketter CNHI News Service

 
Nguyen Ngoc, 34, businessman and son of a decorated North Vietnamese army officer, represents the new generation of Vietnamese. They welcome Americans and are more interested in the country's new capitalism than the politics of communism. CNHI News Service

 
Vietnam remains mostly an agricultural nation, mired in the farming methods of the 19th century. Women in conical hats still harvest the rice, one stalk at a time. CNHI News Service

 
Internet access is available throughout Vietnam. Even remote towns have Internet cafes, like this one in Phong Nha. CNHI News Service

 
Visitors enter the Imperial Palace, home of Vietnam's last emperors in Hue, through an elaborate gate. The palace and its Forbidden Purple City have become major tourist attractions. The last emperor yielded power to Ho Chi Minh in 1954. CNHI News Service

 

Wednesday, September 17, 2008

Vietnam's tourism heading down

Tourism growth in downtrend
17:10' 16/09/2008 (GMT+7)

Foreign tourists in Vietnam
VietNamNet Bridge – Global economic regression has clearly affected the Vietnamese tourism industry. In the first five months of the year, the number of international visitors coming to Vietnam rose by 16.6%; the figure for June, July and August was lower by 15% year on year.

 

Infrastructure makes no progress

 

Another worry for the tourism industry is the reduction of visitors from big and wealthy markets and segments: cruise tourists down by 19%, Japanese visitors 4.2%, South Korean 6.3%, American, British and Canadian over 3%, and Chinese 8.3%.

 

The trend in Vietnam is the general trend in Asia.

 

When the US dollar devalued recently, many European tourists chose the US instead of Asia. The prices at Asian restaurants were also more experience, influencing the attractiveness of Asia.

 

The Vietnamese tourism industry hopes that the number of foreign visitors coming to Vietnam will increase in the last months of 2008 to compensate for the reduction in the past three months.

 

However, Vietnam’s attractiveness also suffers as the prices of tours to neighbouring countries like ThailandMalaysia and Singapore have risen 5-10% in the last year while tours to Vietnam have risen 15-30%, mainly due to the increases of room rates and air fares.

 

Vietnam’s aviation and hotel industries have developed very slowly in recent years so shortages of hotel rooms always happens in the tourism season while there are few choices for air routes and prices.

 

Speaking to TTG Asia, a travel newspaper, Richard Brouwer, Managing Director of the Diethlem Travel Group of Switzerland, forecast that the situation will get better for the tourism sector of Vietnam and other Southeast Asian countries in October-December 2008, or the tourism season. If during this time Vietnam has more local flights, Diethlem will organise more tours to Vietnam.

 

Yet, as Vietnamese airlines lack aircrafts and the aviation industry is facing a lot of difficulties, it will be difficult for local airlines to open new air routes and increase numbers of flights. Jetstar Pacific currently has had to temporarily suspend the HCM City-Hue, HCM City-Nha Trang air routes. Many travel agents have had to stop offering tours to Con Dao and Phu Quoc islands since they can’t reserve tickets to these destinations.

 

At least in the next two years, there will be no big changes in the number of hotel rooms so this will be still the disadvantage of the tourism sector.

 

HCM City plans to have an additional 950 luxurious rooms at the end of 2009 but only Kumho,

Vietnamese footwear exports to Germany on the rise

Despite the EC’s imposing anti-dumping tax on Vietnamese footwear, the volume of leather shoes exported to Germany continues to rise. 

Vietnam ranks second only to China among footwear exporters to Germany. The German Rhein Post newspaper on September 13 said that in the first half of this year, Vietnamese footwear exported to Germany increased by 10.2 percent to 41 million pairs of shoes compared to the same period last year. Last year Vietnam exported 71 million pairs of shoes to Germany, up 7.2 percent. 

In 2007, Chinese footwear accounted for 51 percent of total German footwear imports, followed by Vietnam (14 percent) and Italy (7 percent). 

One of reasons that Vietnamese and Chinese footwear are imported to Germany is that they are much cheaper than those made in Germany and other European countries.

Tuesday, September 16, 2008

Vietnamese southern businessman buys Rolls-Royce

A four-seat luxury Rolls-Royce Phantom worth US$1.54 million arrived in the southern coastal city of Vung Tau Sunday, the car’s owner said.

Le An, chairman of Le Hoang Company and Managing Director of Chi Linh Tourist Village in Vung Tau is the car’s owner.

The black vehicle is 6.084 meters long, 1.99 meter wide and 1.634 meter high. It can run at 80 kph even in the event of a flat-tire.

An said he placed an order for this car in March. He also spent VND6.4 billion ($387,000) on a Mercedes AMGS63 in February this year

Sunday, September 14, 2008

Three thousand sea tourists visit Vietnam

23:04' 13/09/2008 (GMT+7)

VietNamNet Bridge - In its tour of Viet Nam, the five-star Sun Princess cruising ship (Bahamas) with about 3,000 travelers on board landed at the Phu My Port in Ba Ria - Vung Tau province on Friday morning.

Departing from the Hong Kong Port, the tour is organized by the Tan Hong Tourism Company.

These travelers come from many countries, including the U.S., UK and Russia.

After visiting the coastal city of Vung Tau, they will take a tour of Ho Chi Minh City.

One day earlier, Sun Princess arrived in Nha Trang city, where the tourists took sightseeing tours of the Cai River and countryside areas in the city and Dien Khanh District, Khanh Hoa Province. 

Education high priority in Vietnam-US relations

15:36' 13/09/2008 (GMT+7)

VietNamNet Bridge – The second highest ranking US diplomat said on September 12 that education is a high priority in the Vietnam-US relations.

 He also said the US wants to link American companies and Vietnamese universities to help graduates acquire the skills they need to find good jobs in the new Vietnamese economy.

Visiting Deputy Secretary of State of the US, John D. Negroponte told a press briefing in Hanoi that he had discussed with Deputy Prime Minister-cum-Minister of Education and Training Nguyen Thien Nhan on September 11 ways to increase the number of Vietnamese students in the US, helping Vietnam realise its target of sending 10,000 overseas for doctoral training by 2020.

“In the coming weeks, members of the Education Task Force will meet to discuss how we might strengthen our work together in this area. This Task Force will examine ways in which we can increase the number of Vietnamese students in the US and Americans studying in Vietnam and what can be done to increase exchanges between US and Vietnamese universities,” Negroponte said.

He also said the US wants to link American companies and Vietnamese universities to help graduates acquire the skills they need to find good jobs in the new Vietnamese economy.

The diplomat expressed his delight to revisit Vietnam after 35 years and showed his optimism about the future of the Vietnam-US ties, saying even though the two countries fought a bitter and difficult war, on both sides, there seems to be a tremendous amount of good will.

Negroponte also noted development in activities related to Agent Orange/dioxin, POW, MIA and the clearance of unexploded ordinance left from the war. 

“Our Joint Advisory Committee on AO/dioxin is also meeting this week. Its work is another example of successful cooperation that is producing positive results,” he said.

Saturday, September 13, 2008

U.S. diplomat revisits a fast-changing Vietnam

International Herald Tribune

Friday, September 12, 2008

HANOI, Vietnam: The second-highest-ranking U.S. diplomat, back for the first time since the Vietnam War, said Friday that he was impressed by the pace of economic change in the country and its good will toward its former foe.

Deputy Secretary of State John Negroponte urged Vietnam to increase political freedom and improve its legal system but said the two sides have developed a "close partnership" that the United States would like to deepen.

"I'm very optimistic about the future of our relationship," Negroponte said during a press briefing in Hanoi on Friday morning.

Negroponte worked at the U.S. embassy in the former Saigon, now Ho Chi Minh City, during the Vietnam War. This is his first trip back to Vietnam since 1973.

Even though the two sides fought a "bitter and difficult" war, Negroponte said, "on both sides, there seems to be a tremendous amount of good will."

He praised Vietnam's economic growth, which has averaged roughly 7 percent a year for the last decade, describing it as an "economic miracle" that had lifted millions of Vietnamese out of poverty.

Negroponte's is the most recent in a series of high-level visits between the two countries. U.S. President George W. Bush and Secretary of State Condoleezza Rice visited Hanoi in 2006, and Prime Minister Nguyen Tan Dung visited Washington in June.

Negroponte met with Dung in Hanoi on Thursday, as well as the education minister, the foreign minister and various other officials. He is planning to meet Friday and Saturday with business leaders in Ho Chi Minh City, Vietnam's southern business hub, before visiting neighboring Cambodia.

He said he had raised the issue of human rights in all his meetings, but did not raise specific cases.

Negroponte spoke just two days after Vietnam sentenced an Internet writer and activist to 30 months in prison for tax fraud.

Human Rights Watch issued a statement decrying the verdict against Nguyen Hoang Hai, calling it part of a "crackdown on democracy activists in Vietnam."

Hai, whose pen name is Dieu Cay, has criticized Vietnam's government for its handling of a dispute with China over the Spratly and Paracel islands, located in an area of the South China Sea believed to contain rich oil and gas reserves.

The changing face of Vietnamese financial services

New private players have significantly increased the range of banking services, writes Tan Siew Meng

Until recently, Vietnam was an old-fashioned cash economy. Whether it was individuals buying big-ticket items such as houses and cars, or companies servicing their payrolls and accounts, almost every transaction was in cold hard cash.

Usually this was the Vietnamese dong or US dollar, but stories abound of big purchases using gold. Even today, many companies continue to rely on cash, as fewer than 10% of Vietnam's 85 million people have bank accounts.

Economic reform has brought about dramatic change in financial services. In particular, sophisticated financial instruments have been introduced.

Vietnam's accession to the World Trade Organisation (WTO) in January 2007 was a catalyst for wide-ranging changes to all aspects of doing business. The legal and tax systems are being reformed, and the role of the private sector is being strengthened.

The result has been a rapid flow of foreign investment, and the banking and finance industry is meeting the challenge. Where once the position of the state-owned banks was unassailable, new private players have significantly increased the range of services available.

Foreign banks now can set up 100% foreign-owned subsidiaries, and some have formed strategic alliances with local banks to gain greater access to the market.

For example, HSBC this year became one of the first foreign banks to receive in-principle approval from the State Bank of Vietnam, the central bank, to set up a locally incorporated subsidiary. HSBC also owns a 15% stake in Techcombank.

The economy can be best described as in transition from cash-based to non-cash-based. Challenges remain in terms of paying salaries through bank accounts, ATM services and the use of debit cards, as these types of transactions started gaining popularity only a few years ago.

The industry remains heavily regulated by the central bank. Also, the government tightly controls foreign-exchange transactions by individuals and companies, and the dong is not freely convertible. As a result, cash remains the principal form of payment for wages and purchases, with the US dollar an alternative.

However, opportunities more than make up for the challenges of doing business in Vietnam, which is one of the most under-banked countries in Asia, with a huge market waiting to be served. New services designed to meet the needs of business clients have emerged, and market conditions have prompted international banks to develop innovative solutions for corporate customers.

One example is HSBC's establishment of electronic links with major state-owned local banks, and using their branch networks to collect and distribute cash.

The capital market is also increasingly active. On the eight-year-old Ho Chi Minh Stock Exchange, the number of listed companies has quadrupled in the past three years. On the Hanoi Securities Trading Center, smaller companies with capital of 10 billion dong (20.5 million baht) or more can be listed.

Foreign companies can be confident that the financial tools they rely on elsewhere are now available in Vietnam. Many of these advanced products and services were not in place just five years ago. Everything in Vietnam is changing - and, more significantly, changing fast.

Published in Business Times (Singapore) on Aug 20.

Mekong Delta faces ports shortage

14:24' 12/09/2008 (GMT+7)

VietNamNet Bridge – Twenty per cent of the existing ports and 35 per cent of wharves in the Mekong Delta are not fit for operation, according to the statistics of the Portcoast Consultant Corporation — one of the leading waterway advisory companies in Vietnam.

Ships cannot dock at ten ports along the Hau River due to silt build-up, but instead, dock at ports in HCM City for import and export, adding to a backlog of freight and a rise in transport costs.

Besides ports and wharves designated for specific goods, there are no ports of a provincial level in the delta, the company reported.

Meanwhile, 65 per cent of shipping and 32 per cent of transportation in the Mekong Delta is via waterways, double the national percentage.

Currently 70 per cent of goods to and from the Mekong Delta, estimated at 12.5 million tonnes per year, have reportedly been transported through the Dinh An estuary, the major waterway of the region.

However, Dinh An estuary cannot handle vessels of over 5,000 dead weight tonnage (DWT) due to the recent accumulation of silt from Hau River, while the local authorities expected that import and export volumes shipped via waterways in the delta would increase up to 22 million tonnes per year in 2020.

Ships cannot dock at ten ports along the Hau River due to silt build-up, but instead, dock at ports in HCM City for import and export, adding to a backlog of freight and a rise in transport costs.

The Viet Nam Inland Waterway Department has plans to further development for waterway transportation through 2020, including providing a way for vessels of high DWT to travel along the delta's waterways, plus upgrading local boats and ferries to a capacity of at least 300 DWT.

Modernising traffic posts in the western South of Vietnam is also among its planned measures to improve waterway traffic in the delta.

The Ministry of Transport also planned a waterway transportation project to upgrade the Quan Chanh Bo Canal to facilitate 20,000 DWT ships to travel on the Hau River, which would ease the traffic burden for the Dinh An estuary.

The project is estimated to cost US$200 million and is expected to start at the end of this year, if approved by the Prime Minister. The project will take approximately five years for completion.

However, local officials are calling for the dredging of Dinh An estuary to facilitate 5,000-10,000 DWT vessels' travelling, which is now the top priority until the project is finished.

Negroponte: U.S. wants closer cooperation with Vietnam

HANOI, Sept. 12 (Xinhua) -- U.S. Deputy Secretary of State John Negroponte told Vietnamese government leaders that the U.S. government wants to consolidate cooperation with the Vietnamese government in various aspects, according to local newspaper Vietnam News on Friday.

    During a meeting between the U.S. diplomat and Vietnamese Prime Minister Nguyen Tan Dung in Hanoi on Thursday, the two sides said they were happy to see friendship and multi-faceted cooperation between Vietnam and the United States in building a friendly partnership framework and multi-faceted cooperation on the basis of mutual benefit and equality.

    Negroponte, who is on a working visit to Vietnam until Sunday, said his country would help Vietnam train 10,000 doctorate degree holders by 2020.

    Dung said he appreciated Negroponte's working results with Vietnamese agencies to boost cooperation between the two countries in many aspects, especially in trade, investment, education, training, environment, and struggle against climate change and rising water levels.

    Earlier, Negroponte had working sessions with Vietnamese leaders of the ministries of Foreign Affairs, Education and Training, Defense, and Public Security. During the sessions, he said the U.S. government wanted closer cooperation with the Vietnamese government in different fields. 

    


Friday, September 12, 2008

Thirty investors eye Paradise resort project in Vung Tau

11/09/2008, 08:43
Around 30 local and foreign investors have shown keen interest to replace the investor of the slowly developed Paradise resort project in Vung Tau in Ba Ria-Vung Tau Province, 125km southeast of HCMC.

Le Kim Huong, director of the province's Department of Planning and Investment, told the Daily that many of the investors came from abroad and that they had sent their proposals to both Vung Tau-Paradise Joint Venture and the department.

They have asked the provincial government for help to take over the project along Thuy Van Beach, she said.

She attributed the attractiveness of this project to its prime location. "It's very difficult to find another good location like the Paradise project's," Huong said.

The 220-hectare Paradise resort has not been fully developed though the joint venture between Vung Tau International Tourism Company and Taiwan's Paradise Development and Investment obtained a 25-year license in 1991.

The company originally planned to spend US$97 million on the Paradise project but 17 years after it got the license, the company has built a few facilities.

Therefore, the province's Department of Planning and Investment has informed Vung Tau-Paradise Joint Venture of an intention to revoke the license for the project. The Ministry of Planning and Investment and the provincial government have thrown support behind this move.

However, the investor will have its license' taken back when the provincial government gives a final stamp of approval.

There are two possible scenarios. The joint venture would be either dissolved or transferred to other investors to continue developing it. "I think the second scenario looks better because we should press on with the project," Huong said.

She said the provincial government would have a meeting to seek a way out for the project. If the province opts for the second way, the current developer and new partners should reach agreement on the project transfer.

>>Axe to fall on Paradise Resort project in Vung Tau

Monday, September 08, 2008

Crisis investing: The Opportunities in Vietnam

Crisis investing is not an easy thing to do. It takes nerves of steel. After all, buying what no one else is willing to seems absolutely foolish. But in the markets, history has proven repeatedly that crisis investing can be extremely profitable.

In 1998 the Russian financial crisis nearly put a stop to the runaway gains the Dow and Nasdaq scored almost every day. Russia ran out of money. Rock bottom oil, natural gas, metals and timber prices pushed the Russian economy to the brink of disaster. The country couldn’t make the interest payments on its debt. The whole world was about to foreclose on Russia . It was a complete disaster.

But while most people were running in the other direction, a few brave investors saw the opportunity. And were willing to take the risk. It was less than a decade since Russia ’s giant economic leap forward and the herd expected the country to fall back into financial chaos. As usual, the herd was dead wrong.

Crisis investors - who are willing to buy what no one else will - saw the opportunity. If things got any worse, they’d lose 100% of their investment. But if things turned around, they stood to make quadruple-digit gains.

One group of investors pooled $50 million to buy a 1% stake in Gazprom , Russia ’s state-controlled natural gas giant. In 1998, this was considered extremely brash. After all, these investors were supposedly buying at the “worst” possible time. But the risk/reward was in their favor and they knew it. Risking 100% to make 5,000% or more is a smart bet to make with the speculative part of our portfolios. That $50 million investment is now worth almost $3 billion…good for a gain of 5,973%.

In hindsight, it always looks easy. Asia during the currency crisis, Russia when the government defaulted, oil stocks when a barrel of crude was trading for $8 a barrel…it all seems so obvious now.

To crisis invest successfully you have to find the worst possible situation, expect a rough ride for a few years, and ensure that you’re only risking money you can afford to lose. The rewards for being patient and taking on more risk than normal can be absolutely huge.

That’s why I’m getting very excited about another crisis in the making. This country’s stock market appears to have hit rock bottom. It reminds me of Russia in 1998. Yes, I think it’s a very good time to invest in Vietnam . To understand how the Vietnamese economy devolved into a state of crisis, let’s meet Trung.

Trung the Novice Investor

On the surface, Trung appears to be a regular blue-collar guy. He’s in his mid twenties. He works hard at the local water utility in Hanoi . He takes home about $300 a month and lives a reasonably comfortable life.

As a resident of Vietnam , he’s benefited from a decade of booming growth in Asia . But Trung has made most of his money by playing the Vietnamese stock market. Between 2003 and the start of 2008, Bloomberg’s Vietnam Stock Index has soared more about 800%. That works out to a 55% annualized return for the entire index.

With average returns like that, how could Trung not have done well? Because Trung didn’t recognize that he was living in a bubble.

That fact is, between 2003 and 2008, all Vietnamese investors did well. Trung went as far as mortgaging his family’s house to get more money to play the markets. It was out of control. A bubble had formed and it had to blow up...eventually. Bubbles always do. And this one was no different.

In February the overvalued Vietnamese Stock Index started to plummet. It was no longer a sell-off and traders like Trung, who were willing to mortgage the house to buy stocks, had taken on far too much leverage and had to sell, sell, sell.



The selling pressure created a dramatic downturn. The entire Vietnam index lost more than 60% of its value. But there was a much bigger bubble that had burst in Vietnam .

Vietnam is still dealing with a lot of issues as it tries to move away from communism toward a capitalist economy. One of the biggest challenges has been the rise of an unregulated over-the-counter (OTC) stock market.

Vietnam ’s OTC market involved trades between individuals across social networking sites and message boards. Bids and offers are placed on Websites and they’re completely exempt from all exchange rules. It’s tough to call it a market, but it’s where most Vietnamese private investors like Trung were trading.

On this unofficial exchange, it was common for stocks to soar on rumors. There was no way to track the performance of the unofficial market, but some stocks traded off the market would be worth five to ten times more than the same shares on the sanctioned and regulated stock exchange.

When the regulated exchange dropped 60% in less than a year, losses were amplified on the OTC market where a battalion of inexperienced investors let their greed run rampant. Many stocks traded on the OTC market fell as much as 90%.

Now - a year later after the initial sell-off started - the index is much closer to fair value. And with all the weak hands wrung dry and forced to sell to cover losses, Vietnam is looking like a buy.

Crisis Investing 101: Bad News = Good News

I know what you’re thinking. “ Andrew , Vietnam is an economic mess. Isn’t it too soon?”

I understand the concerns. Obviously, Vietnam is not perfect. It just went through a stock market meltdown similar in magnitude to the U.S. crash of 1929.

Also, Vietnam ’s official inflation has surged to more than 25%, two times higher than that of most other Asian economies. They are in the middle of a clumsy transition from central planning to a free market-based economy. It’s tough to imagine things getting any worse.

And that’s exactly why it’s time to invest. Vietnam is probably not going to get any cheaper. When everything is down there’s only one way to go, up. In fact, as you can see in the chart above the market has already started to move up.

Low Wages Will Spur Growth

Wages in China have risen 300% in the last 15 years. Vietnamese factory workers make 55% less than their Chinese counterparts. As a result, low cost Vietnam is poised to become the new manufacturing center of Asia . China has been outsourcing manufacturing activities to Vietnam for years.

In 2007 Vietnam attracted $21 billion in foreign investment. In the first 8 months of 2008, there has already been $47 billion in foreign investment, up 373% from the same point a year earlier. The major investors are Taiwan , Japan , and Malaysia . They know the value of being able to tap into Vietnam ’s cheap labor force.

There are only two easy ways to get in on the Vietnam rebound and both are traded on the London Stock Exchange. The Vietnam Holding Asset Management (LSE:VNH) is primarily focused on government owned companies going public. It currently manages more than $100 million and is completely focused on Vietnam .

The Vietnam Opportunity Fund (LSE: VOF) is a closed-end fund that invests directly in Southeast Asia . The fund is required to have at least 70% of its assets in Vietnam . For a focus on such a small and growing country, it’s a big fund with assets of $600 million. VOF is a powerful pure play on any Vietnam recovery.

Over the next year, there will be more opportunities for investors to invest directly in Vietnam . A proposed U.S. listed Vietnam ETF has been shelved and could be coming on the markets as emerging markets come back into fashion. Also, the Vietnamese government currently owns and operates more than 3,000 businesses. As long as the country goes down the privatization route, these will need to go public and some of them will be listed on exchanges in North America .

Again, Vietnam offers a tremendous opportunity for investors willing to stray off the beaten path and delve into where no one else is willing to go. Putting money in Vietnam now is crisis investing in the truest sense. So, at the Prosperity Dispatch, we always stick to a few Crisis Investing Guidelines:

1. Only put in money that you can afford to lose
2.Expect to hold any shares for at least five years (economies don’t get turned around overnight)
3. Get ready for a wild ride…there will be a lot of bumps along the road to recovery

As long as you stick to these rules, Vietnam is well worth a look.

Imagine buying Russia in 1998, or stepping into the Asian Tigers right after the Asian currency crisis of 1997, or buying resource-rich Kazakhstan when oil was under $10 a barrel. Each of them offered quadruple-digit returns for investors willing to take the plunge.

Vietnam , with inflation soaring and its stock market tanking, offers the same kind of upside potential.

Good investing,


____________________
Andrew Mickey is the Chief Investment Strategist, Q1 Publishing: www.Q1Publishing.com

Vietnam's Mekong Delta gets scientific on agricultural development


09:34' 07/09/2008 (GMT+7)

A durian grower and his orchard in Ngu Hiep, Tien Giang Province.

VietNamNet Bridge - Since 2005, Mekong River Delta provinces have carried out 700 scientific and technological projects to serve agricultural production. However, technology hasn’t been all it’s cracked up to be when it comes to furthering greater regional development.

Shrimp, rice and fruit


In 1990, and for the first time, Bui Tri Thuc, and other other rice farmers in Hau Giang Province, banded together to use an automatic seeder in their fields. The results were immediate, bringing him his biggest crop in 50 years.

It was also the first time that the farmers used new varieties of rice, marking the beginning of a new era and a bump in yields to 10-13 tons per hectare per year.

This was a mark of success in the study of how to grow rice within just 90 days in the Mekong River Delta, contributing to an increase in area under cultivation to 4 million hectares.

The biggest success of the Mekong River Delta over the past 20 years has been the creation of the super fast growing rice seeds. The expansion of rice areas with these seeds have helped create bumper crops. These rice seeds have won praise as the most successful seeds put out by the Mekong River Rice Research Institute.

Previously, every 2 million hectares of cultivated land planted with just one crop, and a productivity of 2 tons per hectare, brought only million tons of rice. By 2008 however, that figure had soared to an estimated at 21 million tons.

These results have been achieved thanks to the region’s remarkable progress in creating high-quality scientific seed technologies.

Five years ago, good seeds being used by farmers accounted for 10% of the total crop; the figure increased by 20% in 2004 and now sits at around 40%. The average rice productivity in the
Mekong River delta is now at 5.1 tons per hectare, the highest in ASEAN (Association of Southeast Asian Nations).

It’s not all rice, rice rice. In fisheries, Luu Thong Nhut in Long Phu District,
Soc Trang Province started industrial Sugpo prawn farming in 2003. Previously, he had seen studies on model projects in the North and Centre of the country. In the projects he saw a way to raise vast amounts of Sugpo prawn, and met with Vietnam’s leading microorganism expert for advice on how he could exploit the technology.

In 2005, and his very first season using microorganism technology, he brought home 15 tons per hectare.

Since then, his farm has been inundated with scientists and farmers from keen to learn from his experiences in raising Sugpo prawn. So far several thousand families have followed his model.

Over the past several years, there has also been a “revolution” in fruit seeds in the Mekong River Delta as well. Dr. Nguyen Minh Chau from the Southern Fruit Research Institute said that every locality has their own special fruits, and that competition should be encouraged between them to help find the best overall seeds.

Apart from the provision of seeds by institutes and schools, farmers have implemented creative solutions to find the best quality seeds.

Good Agricultural Practices became known to Mekong River Delta farmers in March, 2005 when an Association of Safe Fruit Production and Consumption along Tien River was established.

Dr. Vo Mai, Chairman of Vinafruit (the Vietnam Fruit Association), said that the model project links together farmers, businesses, scientists and the State to establish a concentrated, large-scale, safe and high-quality fruit production of international standards.

These practices have re-organised the fruit consumption system to satisfy both the domestic and export markets.

Putting machines into use, reducing fees, and raising quality

The Mekong River Delta is currently harvesting the summer-autumn rice crop. Many harvesting-machines have been gathered together near fields in An Giang, Kien Giang and Dong Thap provinces.

According to farmers in Tri Ton District, An Giang Province, the machines can help farmers harvest 3-5 hectares per day. By shortening the harvesting time, farmers have more time to sanitize the fields, plough and dry land to increase the fertility of the soil, reduce diseases and sow new crops.

The machines have helped reduce harvesting fees and the amount of rice lost to just 1%. According to Dr. Mai Thanh Phung from the National Agricultural Promotion Center, handicraft harvesting can lead to a loss of 5% in 4 million hectares of rice each year.

Based on an average rice productivity of 20 million tons each year, the lost amount of rice is calculated to be over 1 million tons each year, or VND 4.3 trillion in lost profits. “Harvesting by machines can increase farmer’s profits by VND 3.5 trillion,” he said.

In the Mekong River Delta, thousands of agricultural machines have been put into operation. Kien Giang Province alone has 620 harvesting-machines, while An Giang Province has 5,000 pulling machines. An Giang Province has given preferential loans to farmers to enable them to be able to buy the machines.

Engineer Truong Ngoc Trung, Director of the Hau Giang Provincial Agricultural Seed Bank said that it took ten years for Long My District to increase the area of rice using sowing machines from 100 hectares to 1,000 hectares.

One of the most important solutions to transfer advanced production techniques is for farmers to tour and hold conferences with other farmers. Each year a competition of harvesting-machines is organized, which reveals the creativity of the people who work the land.

Sci-tech indispensable for farmers

Although the “revolution” of seeds for agricultural production has not yet reached its peak, farmers in the Mekong River Delta feel secure enough to raise and plant seeds with high productivity. However, the mechanizing of fields has revealed some weaknesses.

At present, the number of machines in the Mekong River Delta accounts for 15% of capacity demand. There are only a handful of machines in Soc Trang and Bac Lieu Provinces. Although An Giang, Dong Thap and Kien Giang Provinces have invested in machines for farmers, they have only been able to satisfy 20-30% of their demand.

Dr. Nguyen Van Banh, Head of the Mekong Delta Rice Research Institute, said that machines only harvest some 200,000 hectares of rice among the 1.5 million hectares under cultivation in the area.

Hospitality training needs major upgrade in quality and quantity

Chairman of the Viet Nam Tourism Association, Nguyen Phu Duc, talks to Thoi bao Kinh te Viet Nam (Viet Nam Economic Times) about ways to develop human resources for the tourism sector

What are the distinctive characteristics of tourism that should affect the training of human resources for the industry?

Tourists come from different countries, cultures and social classes, and what they expect from the host is enthusiasm and hospitality worth the money they spend.

We should upgrade our tourist service standards, including the environment and facilities, which consist of hotels and entertainment. The staff’s skills and attitudes, from caring gestures to smiling eyes, are essential. All people who come into contact with tourists will affect the standards of tourism.

In my opinion, the tourism industry consists of people who both directly and indirectly work in the sector. That means the provision of tourism service has connections with many parts of society, so it needs a large source of manpower and good training policy.

How do you assess staff training for the tourism industry at present?

We now have about 1 million people working in the tourism sector, or 2 per cent of total employees nationwide. About 53 per cent of tourism employees have not finished elementary school, 18 per cent have an elementary education, 15 per cent have a high-school level education, 12 per cent graduated from colleges and universities and only 0.2 per cent have post-graduate certificates.

About 750,000 people work indirectly for the tourism sector without having received any kind of hospitality training. About 250,000 people work directly in hotels and travel companies. Fourty-two per cent of people providing direct service were trained properly, 38 per cent moved in from other sectors, and the remaining 20 per cent have not received any training.

With little training and education, it is not surprising that the quality of tourism employees is not high. There is also an unequal distribution of trained employees; most trained employees work in urban areas, whereas remote areas do not have any skilled staff. So, I think that overall manpower for tourism is short and weak.

What are the reasons for short-comings in staff training?

The main reason is unprofessional training. There is not any university specifically for tourism in the country. More than 20 universities do have tourism departments. However, teachers in these departments are not required to have any specific qualifications, and they do not have proper textbooks or curricula. Their graduation standards are not high and do not meet real-world demands.

The country has more than 40 vocational schools, of which 15 are in Ha Noi and seven in HCM City. Those schools provide training for many different fields, but only some teach tourism knowledge. There are only four tourism schools in Ha Noi, Hue, Vung Tau and HCM City.

With the increasing demand for manpower for the sector, the volume of training offerings is too small. In addition, we do not yet have professional standards for tourism.

The European Union (EU) Funding Programme is helping us develop 13 levels of professional standards which can be used as a base to develop training. Right now each university teaches in its own way, which leads to different, unequal standards in the sector. For example, a three-star hotel in Ha Noi serves its guests in one way, a three-star hotel in Hai Phong serves in another way, and a hotel of the same stars in Thai Nguyen offers a service of other level.

This problem must be thought about seriously to change the weak points in training employees for tourism.

What should we do to improve the quality of manpower?

First, we should reform the tourism training schools to improve the quality of professors, upgrade facilities and textbooks, and improve the methods of learning and teaching in those schools. We should combine theory with practice.

We should also actively expand new ways of teaching by having experienced staff teach new staff. There should be opportunities for qualified employees in four-or-five-star hotels to teach unskilful colleagues in other hotels.

The EU programme has trained 2,500 people, mostly from enterprises. Every year those people have the responsibility to impart their knowledge to others according to EU standards of human resource training. This way of in-service training is inexpensive and effective, and it will help meet the high demand for manpower for the sector. — VNS

Friday, September 05, 2008

Thailand's tourism sector seeks ways to limit damage

Officials ponder how to protect Thai image


CHADAMAS CHINMANEEVONG CHATRUDEE THEPARAT

The country's lucrative tourism industry is looking for ways to revive Thailand's image among foreign visitors and to stem losses caused by the current political conflict. Also, as of yesterday, 14 countries had issued advisories warning their citizens to avoid non-essential travel to Thailand or to exercise caution if they do go.

''The tourism business is in deep trouble and we should work together to solve it right now,'' said Kongkrit Hiranyakit, chairman of the Tourism Council of Thailand.

Tourism accounts for about 6% of the national economy, and had been forecast to earn about 700 billion baht this year. However, the crisis is already estimated to be costing 400 million baht each day in lost tourist revenue, said Apichart Sankary, president of the Association of Thai Travel Agents.

He added that foreign arrivals in Bangkok had fallen 30% below average due to the political turmoil.

''Most of the foreign visitors are tourists who expect to have a good time in Thailand. If the government cannot resolve the problems properly and quickly, we may see a weaker future for the business,'' he told AFP.

Last weekend anti-government protesters shut three key tourist airports for two days, stranding thousands of travellers. Mr Apichart said the closure of Phuket's airport alone caused losses of about 750 million baht. Rail services in southern Thailand have also been disrupted for a week.

Mr Kongkrit suggested yesterday that aggressive public-relations campaigns and international roadshows led by the Tourism Authority of Thailand (TAT) would be the key to recovery.

He argued that TAT and tourism operators should start organising events and activities to communicate that Thailand is still safe and that political turmoil takes place in limited areas, leaving foreign tourists free to travel as normal in most of the country.

In his personal view, Mr Kongkrit said the current political crisis had hurt the country's image more than the tsunami disaster of December 2004.

''Last time, everybody understood that the tsunami was a natural calamity. Both Thais and foreigners helped each other to survive and the picture showed the unity of people. But this current political unrest is different,'' he said.

''The current situation is damaging the country more than the coup in September 2006, raising Thailand's risk profile because of protestors extending their actions throughout the country, and directly affecting tourists by closing airports and shutting down rail services, as well as bloodshed with one fatality.''

Juthaporn Rerngronasa, the Tourism Authority of Thailand's deputy governor for international marketing, said the agency recognised that the turmoil had hurt Thailand's image and it was now working closely with its overseas offices to provide foreign tourists with information.

''The state of emergency is being imposed only in Bangkok and it is not as awful as they thought. Tourists can still come to Thailand and major airports are still open,'' she said.

Surapong Techaruvichit, a vice-president of the Thai Hotels Association (THA), said the immediate way to shore up the Thai tourism image was to revoke the state of emergency, as this would improve overall sentiment.

''Marketing campaigns should focus on inviting travellers, tour agents and the foreign press to visit many tourist destinations,'' he said.

He added that tour operators in the long-haul market should ask their foreign partners to help promote the country.

''Thailand still has products like natural coasts, beaches and hotels. So, we can recover speedily. Many countries also have political conflict and most tourists understand this,'' Mr Surapong said.

The TAT said it was too early to estimate revenue losses and damage caused by the unrest.

''This time, the problem is totally different from the tsunami as nobody knows when and how the protest will end. If there is no violence, it's not difficult to boost Thai tourism's image and tourists will come back very soon,'' said Mrs Juthaporn.''But if there is something bad, or violence, the story will be different and it will be very hard for Thailand to revive the country's reputation in international markets.''

Mr Kongkrit said that if unrest continues, tourism revenue would be more than 10% below the 700-billion-baht target for 2008.

He forecast that 20% of reservations for the coming high season could be lost if the crisis carries on.

Currently, he said that between 5% and 10% of events in Phuket have been cancelled and he expected around 20% of Bangkok events to be called off if the conflict is not resolved soon.

''Our talks with hotel operators indicate no substantial cancellations yet, but they will continue to monitor the situation closely,'' he said.

''We expect the inopportunely timed political turmoil will, at the very least, cause a domino effect through to the first quarter of 2009, whether or not it ends soon.''

 

Thursday, September 04, 2008

Vietnam's major infrastructure projects stick to their timetable

Vietnam’s first oil refinery is ready to churn out its main products early in 2009; while Ho Chi Minh City’s biggest bridge could open to traffic two months ahead of schedule.

Work is proceeding apace at landmark infrastructural projects that are nearing completion, and some are poised to finish ahead of schedule, project heads say.

The Dung Quat Oil Refinery in the central province of Quang Ngai is speeding up work in order to become operational by February next year as scheduled.

Tran Minh Ngoc, deputy head of the oil refinery’s management unit, told Thanh Nien that every tendering package of the project has been nearly completed with personnel working flat-out around the clock.

“There will be no deterrent to the progress of the project,” Ngoc said.

Until August 29, work on tendering packages 1+4 and 2+3, which involve procurement and installation of equipment and facilities for the refinery, had been almost completed.

Ngoc said that tendering package 5A to build a breakwater, which had worried concerned authorities the most, had wrapped up five months ahead of schedule.

Meanwhile, package 5B (oil product exporting port) and package 7 (administrative and service facilities) have also been completed and are undergoing quality inspections.

The Dung Quat management unit was planning to import crude oil next month so that the refinery could operate on a trial basis by the end of this year, Ngoc affirmed.

The development of human resources for the refinery is also ongoing, with over 500 workers sent to refresher courses in Vietnam and abroad.

The oil refinery is set to hire around 1,200 workers when it is commissioned.

Security concerns

The most vexing problem for the oil refinery is no longer the project’s progress, but the worsening security conditions in the area, said Truong Van Tuyen, the management unit head.

At least 50 crimes have been reported so far this year at the Dung Quat Economic Zone, where the refinery is located, including murders, stabbings, looting and drug deals.

The zone, 870 kilometers from Ho Chi Minh City, is home to many petrochemical and heavy industry projects, including the country’s first oil refinery.

In a recent visit to the economic zone, Prime Minister Nguyen Tan Dung also stressed the necessity for public order and security in the area.

Viet Nam is Southeast Asia’s third-largest crude oil producer with output averaging 350,000 barrels per day.

But it still imports most of its oil products in the absence of a refinery.

The commission of the oil refinery will help churn out approximately three million tons of diesel and two million tons of fuel and other petrochemical products annually, meeting around 30 percent of the domestic demand.

Phu My Bridge beats schedule

In HCMC, the Phu My Bridge that is set to dwarf all others in the city, will open to traffic two months ahead of schedule in October next year, its main investor claims.

Nguyen Thanh Thai, general director of the Phu My Bridge BOT Joint Stock Company (PMC), said up to 60% of the work had been completed already.

Thai attributed the early completion to strict discipline and good planning.

The investor and foreign contractors — Bilfinger Berger Co. of Germany, Baulderstone Hornibrook of Australia and Freyssinet International et Companies and Arcadis of France — had inked an agreement in which the former would be fined US$25,000 and the latter $50,000 for every day of delay, Thai said.

The foreign contractors had also done a good job in buying equipment and deputing personnel for the project, said Vo Minh Duc, the construction site manager.

Once work on the bridge began, the foreign contractors had imported 6,000 tons of iron, which helped them avert the adverse impact of recent price hikes in construction materials, Duc noted.

But Thai admitted that sluggish land acquisition in districts 2, 7, and 9 could delay work on approach roads leading to the bridge by six months.

Construction of the cable-stayed bridge as build-operate-transfer (BOT) project began last March.

Under the BOT model, ownership of an asset reverts to the government after a set period of time.

Following its completion, the six-lane bridge will stand 2,031 meters long and 27.5 meters in wide.

The total cost of the bridge project was budgeted at VND2 trillion ($121 million).

PMC is a joint venture between the Hanoi Construction Corp.; Construction Investment and Development; the Joint Stock Concrete Company 620; HCMC Infrastructure Investment and Development; and Thanh Danh Construction and Commerce Company. (TN)

Infrastructure

Wednesday, September 03, 2008

German firms seek investment options


Duc-Viet (Viet Nam-Germany) Joint Venture workers process food. About 230 types of Vietnamese products are exported to Germany every year, including footwear, seafood and porcelain. — VNA/VNS Photo Hong Ky

HA NOI — A delegation of more than 30 German enterprises will visit Viet Nam early this month to seek trade and investment opportunities, announced the Viet Nam Chamber of Commerce and Industry (VCCI).

The business mission will be led by Klauss-Peter Guettler, State Secretary of the Ministry of Economy, Transportation and Development of the German Federal State of Hessen.

The German enterprises are in the fields of environment, waste and waste water treatment, bicycle and bicycle parts, packing machines, air conditioner systems for specific vehicles, bottle moulds and mould parts production, metal alloys, IT, finance and banking, trade consulting, production and the development of laboratory equipment, garments and textiles, and communication security systems.

During the five-day trip, beginning from September 7, German enterprises will participate in the Viet Nam – Germany Business Conference, organised by the VCCI with the aim of helping enterprises from the two nations exchange views and business experiences to explore co-operation opportunities, so as to further boost the two countries’ trade and economic relations.

Meanwhile, VCCI will jointly with InWent, Capacity Building International, Germany organise a business trip to Germany to survey the market from September 28 to October 4, the chamber said.

The market surveys, to be held under the framework of the project on strengthening export capacity for Viet Nam’s small and medium-sized enterprises, aims to improve the capacity for partnership organisations of the project, business associations, and business development service organisations in the fields of management and supply of services to enterprises.

Nguyen Minh Gon, a Vietnamese commercial counsellor in Germany, said that Germany was a potential market for Vietnamese enterprises, as products originated from Viet Nam have been increasingly appreciated by German customers.

Annually, about 230 types of Vietnamese products are exported to Germany, directly or indirectly, including footwear, seafood, coffee, handicrafts, ceramics and porcelain, he added.

Gon suggested Vietnamese businesses should focus on exporting a specific kind of product rather than shipping many kinds of goods to Germany as is currently the case, helping them better ensure their presence in the market.

Products with at least equal quality but at cheaper prices than that of other countries which have been exporting goods to Germany could also make the Vietnamese firms more competitive. Additionally, trade promotion activities should concentrate on specific types of products thus enterprises could well advertise their trademarks of goods, he noted.

To join in boosting bilateral trade ties, a Viet Nam-invested centre named "VIETHAUS" to promote Viet Nam’s trade and investment opportunities, culture and tourism in Germany had been opened.

The 5-million euro (US$6.1 million) facility would help Vietnamese firms access the German and European markets by introducing Vietnamese products and services to German enterprises and customers as well as help local firms to participate in trade fairs, promotion programmes, and market research in Germany to launch Viet Nam products and services.

Viethaus would also organise meetings and co-operation conferences between the two countries’ firms and provide information and consultation on investment and import-export procedures in Germany to Vietnamese businesses. — VNS


Tuesday, September 02, 2008

Ericsson and Hanoi Telecom sign largest network modernization contract in Vietnam

September 01, 2008: 03:03 AM EST

Ericsson (NASDAQ: ERIC) has signed the largest single contract in Vietnam, amounting to USD 450 million, to develop and modernize Hanoi Telecom's nationwide mobile network. The strategic partnership, a first in Vietnam, will also see Ericsson managing and operating the network under a full-scope managed services contract.

Under the three-year managed services agreement, Ericsson will be responsible for the management, operation and network design of Hanoi Telecom's mobile network, including field operations and support services. Ericsson will also provide a comprehensive range of professional services, such as network deployment and systems integration.

Ericsson will be responsible for the nationwide migration of Hanoi Telecom's network from CDMA to GSM/EDGE technology, supplying radio access network equipment, optical and microwave transmission, and will be the sole supplier of the all-IP circuit and packet core network. The contract also includes solutions from Ericsson ultimedia portfolio. Deployment has started and commercial launch is set for the end of 2008.

To provide technical support and network operation, Ericsson will expand its operations in Hanoi and Ho Chi Minh City, and set up a new office in Danang City.

Dr. Pham Ngoc Lang, Chairman of Hanoi Telecom, says: "This strategic partnership with Ericsson is a first in Vietnam. It will provide us with a competitive advantage by allowing us to focus on our core business and help position us for rapid nationwide expansion."

Eddie Åhman, President, Ericsson Vietnam, says: "We are proud to be selected by Hanoi Telecom as a strategic partner. We are confident that our strong local presence, industry leadership in services and technology, and firm commitment in Vietnam will support Hanoi Telecom's expansion plans in this dynamic market."

Notes to editors:

Press backgrounder - Ericsson Global Services www.ericsson.com/ericsson/press/facts_figures/doc/global_services.pdf

White paper - Managed Services' impact on the telecom industry http://www.ericsson.com/technology/whitepapers/3115_Managed_services_A.pdf

Ericsson's standard multimedia content is available at the broadcast room: www.ericsson.com/broadcast_room

Honda Vietnam opens second motorcycle plant

Vinh Phuc, Vietnam (ANTARA News/Asia Pulse) - Honda Vietnam on August 29 opened its second motorcycle factory, which mainly manufactures scooters in the northern province of Vinh Phuc.

The US$65 million, 300,000 sq.m factory is designed to produce 500,000 units annually and possess all the most up-to-date Honda production technologies, according to the Japan-invested firm. With the new plant, Honda Vietnam's annual motorcycle production
capacity will total 1.5 million units.

The opening of the second factory will help Honda Vietnam satisfy the increasing and diversifying demands of Vietnamese customers. The company reported selling 800,000 units during the first eight months of this year.


Source:
Business in Asia Today - Sept. 1, 2008
published by Asia Pulse

Vietnam's rural lie beyond reach of the Internet

Most Delta farmers fall outside WWW loop

Internet users in the Mekong Delta’s Can Tho City. Farmers in the delta have very limited access to modern communications.
Despite its high potential for helping farmers, the Internet lies beyond the reach of most rural households in Vietnam’s rice basket.

Farmers and rural residents are being left behind as the knowledge-based economy surges ahead in urban Vietnam.

This is happening despite the huge potential that the Internet presents to help farmers garner information on cultivation and market conditions.

A recent study conducted in the nation’s rice basket, the Mekong Delta, found that only 2 percent of farmers in rural areas access information about crop cultivation and disease prevention from the Internet.

The Mekong Delta Development Research Institute (MDDRI) found that most farming households, almost 75 percent, get their information from television programs.

The Mekong Delta encompasses 12 provinces and a city covering nearly 40,000 square kilometers, or four million hectares. According to the latest official statistics, the region has a population of more than 18 million.

The MDDRI study found that while one in 18 Delta families has a computer; and every 86 an Internet connection, these were mostly in urban areas.

More than 29 percent of surveyed farmers said low education and economic conditions had deterred them from accessing the Net, while 37.1 percent said that, given their low incomes, they could not afford computers, installment fees, and monthly Internet-access charges.

As many as 76 percent of farmers said lack of knowledge about the Internet left them uninterested in information technology (IT).

Dr. Le Quyet Thang, head of the IT department in Can Tho University, says that in a knowledge-based economy, farmers are the most vulnerable and likely to lose out.

He notes that in Vietnam, there are diverse sources of information for farmers, but access is still limited.

The MDDRI feels state and local authorities should draft policies to encourage Internet use among farmers, including the provision of favorable loans for computer purchase, and reduced Internet fees.

Free training courses on how to use computers and navigate the Internet should also be provided.

Tran Cong Yen of the Informatics Center under the Ministry of Science and Technology says foreign languages like English are still a barrier for farmers to access IT technology.

He suggests boosting the usage of open-source software with Vietnamese interface.

Facilitating IT access

The Vietnam Academy of Agricultural Sciences under the Ministry of Agriculture and Rural Development (MARD) recently set up a website titled “The Vietnamese Rice Knowledge Bank” – www.caylua.vn – for farmers.

Academy head Nguyen Van Bo says data has been systemized to help farmers easily find information about cultivation, and about import and export of their products.

The site also updates the information it carries on rice cultivation and preventive measures against diseases.

In 2006, MARD helped set up two information centers with Internet connection in Binh Phuc Nhut and Thanh Binh communes in Tien Giang Province.

Each center was equipped with three PCs, one laptop, a projector and a camera, among other things.

In An Giang, Dong Thap provinces and Can Tho City, it is not unusual to come upon farmers completely wrapped up in searching information from the Internet.

Dr. Thang from the University of Can Tho says IT can clearly help farmers improve crop yields and prevent diseases.

MARD and other related agencies have previously established some websites to popularize knowledge on agricultural production and management, but most information is contained in specialized documents, making it hard for the majority of farmers to understand.

This limits their ability to absorb the knowledge and apply them in the fields.

The Mekong Delta region contributes up to 90 percent of Vietnam’s rice exports.

Farmers in the region produce 50 percent of rice and 70 percent of fruits in the nation, but it has a much lower per capita GDP than the national figure.

In 2006, per capita GDP in the delta was US$493, much lower than the nationwide figure of $729.

Source: TBKTSG

Story from Thanh Nien News
Published: 01 September, 2008, 16:39:14 (GMT+7)
Copyright Thanh Nien News