Friday, October 31, 2008

Hamaden Vietnam will create approximately 800 new jobs by 2012

Hamankodenso, a subsidiary of Denso, has established a new company, Hamaden Vietnam, in Hung Yen, Vietnam, to produce automotive sensors and solenoid valves.

Scheduled to begin operations in June 2010, the new company will have a capital of approximately $12.6 million and an initial investment of approximately $21.2 million. Construction is scheduled to begin in February 2009 and be completed by September 2009.

Hamaden Vietnam will create approximately 800 new jobs by 2012. Hamaden Vietnam will produce sensors for the ASEAN market, as well as solenoid valves for all markets, with the exception of Japan.

The sensors produced will include those used to control the air-intake volume sent to the engine, and the solenoid valves will be used to send vaporized gasoline from the tank to the engine. Hamaden Vietnam is Hamanakodenso's second overseas company, with the first being a production company in Indonesia, which produces horns.

Vietnam gov’t to tighten belt next year: official

Deputy Head of the National Assembly’s Budget Committee Trinh Huy Quach gave Thanh Nien an interview Wednesday on the government’s plan for next year given the recent global financial turmoil.

Excerpts from the interview follow:

Thanh NienThe government has created a budget plan for 2009 that assumes the price of crude oil to be US$90 per barrel. However, crude price has dropped to below $70 per barrel recently. Was there a backup plan to cover the price plunge, which is estimated to result in the loss of millions of dollars?

Trinh Huy Quach: It’s extremely difficult to predict crude oil price right at the moment. Three months ago, international experts said the price could increase to $200 per barrel. However, the price has dropped to under $70 and some experts say it could drop to under $50.

The NA’s Budget Committee is working with the government to make suggestions to cover that shortfall. If crude oil price remains at $70 per barrel, we will have to increase tax on imported fuel as well as reduce investment in infrastructure construction and other sectors.

Could you give more details about these contingent plans?

We will hold thorough discussions about reducing investment in projects that haven’t completed required procedures, suspending less urgent ones, and cutting support for some corporations.

The government has also proposed to increase basic salary starting the second quarter of next year, but if the situation [crude oil price] lingers, the proposal could be postponed or altered to reduce the salary increase rate.

Does the plan to implement better supervision and management of state-owned corporations mention the possibility of decreased aid from the government budget?

Managing the capital of state-owned corporations has attracted wide public interest. The NA will supervise this issue and provide an appropriate report.

What about reducing public investment; will it be included in next year’s plan?

According to the Budget Committee’s report, the government has been active in curbing ineffective projects. But the purpose was not to reduce investment but to transfer money to more urgent projects. This policy will be repeated in 2009 to increase the effectiveness of public investments.

So government debts will not be a major concern in 2009?

The government has reported overspending equal to 4.8 percent of GDP. The Budget Committee has said this trend would exacerbate inflation, if the rate remains at around 5 percent year after year.

Not every country creates surplus, especially developing ones. Is it normal that loans increase in accordance with high capital demand?

It’s normal to borrow for investments, especially for projects that would bring about effective socioeconomic benefits. However, it becomes a problem when overspending persists for years. But not all investments drawn from the government budget will gain expected results.

Thursday, October 30, 2008

Grenade thrown at Thai protesters

Thu 30 Oct 2008, 3:09 GMT

BANGKOK (Reuters) - At least six members of an anti-government street movement in Thailand were wounded on Thursday when a grenade was thrown into their protest zone in the middle of the night, domestic radio and television said.

State-run television channel NBT said that at around 3 a.m. a man riding on the back of a motorbike threw the grenade at a barricade manned by guards for the People's Alliance for Democracy (PAD), which has been campaigning since May to unseat the government.

Two of the guards were admitted to hospital, one with serious neck and leg wounds, the station reported. The rest were treated by medics from inside the PAD protest zone, which includes the Prime Minister's official compound overrun in August.

The PAD are preparing a march to the British embassy on Thursday to try to pressure London to extradite former Thai Prime Minister Thaksin Shinawatra, ousted in a 2006 coup and sentenced in absentia to two years in jail for corruption last week.

Thaksin has been in England for the last three months after skipping bail.

Thailand's political crisis dates back to 2005 when the PAD, a motley group of royalist academics, businessmen and social activists, launched their street campaign against Thaksin.

It has meandered through a coup to elections and back to protests and shows no signs of resolution.

(Reporting by Vithoon Amorn; Writing by Ed Cropley; Editing by Darren Schuettler and Bill Tarrant)

Vietnam's labourers in automobile industry losing jobs

12:58' 29/10/2008 (GMT+7)

VietNamNet Bridge – Many automobile manufacturers in Vietnam have to cut jobs and halt production as they are facing many difficulties.

 

Markets falls, enterprises restructure manpower

 

Ford Vietnam said that it is carrying out a program on personnel restructuring to adapt to the new circumstances. It is estimated that some 20% of administration staff will be the subject of the program.

 

Michael Pease, General Director of Ford Vietnam, said that the global economic recession has had impacts on all the economies in the world. The recession has forced Ford Vietnam, in the urgent situation, to take necessary actions to create a suitable business model, which allows the manufacturer to operate well with reasonable costs with the current fierce competition of other automobile manufacturers.

 

Sources said that the slowdown in car sales and the forecast of a further decrease in car sales in the upcoming months have prompted Ford Vietnamto cut jobs. Statistics showed that in September, Ford Vietnam could sell 278 cars only, and that figure is expected to be lower in October.

The decrease in car sales is not only the problem of Ford Vietnam. Honda Vietnam also saw slow sales in the last month. In September 2008, the manufacturer only sold 121 Civics. Sources said that the manufacturer now have large stocks of the Civic model, estimated at 600 units. Currently, the production chain assembles only five cars, a very small number if noting that 35 cars were assembled a day at the end of 2007 and early 2008.

 

Toyota Vietnam now assembles 70 cars a day, while the figure was 105 units a day at the end of 2007.

 

The import stock of local automobile manufacturers is expected to increase further, since the imported sets of car parts are still arriving under the import orders, while the sale of cars has been going very slowly.

 

Pease said that Vietnam’s automobile market saw an impressive growth rate of 83% in the first half of 2008 over 2007, while it had decreased by 33% by September.

 

Truong Hai Automobile Corporation has 500 workers staying home, receiving 70-100% of salaries due to the stagnant production and slow sales. The corporation now has some 4,000 workers.

 

Tran Ba Duong, General Director of Truong Hai Automobile Corporation, said that with the current difficulties, which are forecasted to last in to 2009, Truong Hai may also have to cut jobs. The truck market has dropped by 60% over the last few months. Truong Hai can now sell 500 units a month, while it has large stocks of over 4,000 units.

 

Vinaxuki also said that the sales of trucks have been moving slowly. It is selling 300 units a month, while the sales normally should be higher at the end of the year. Vinaxuki sold 600-1,000 units in the last months of 2007.

 

With large stocks of 3,000 units, Vinaxuki is working instinctively with one shift in every two days instead of one shift a day as previously.

 

Bui Thanh Xuan, Deputy General Director of Vinaxuki, said that the number of buyers has decreased dramatically because they cannot borrow money from banks as the result of the policy on tightening the monetary policies.

 

“If the situation cannot be improved, we will have to restructure our production which will result in many workers losing their jobs,” Xuan said.

 

Car importers have also been facing great challenges. Nguyen Thi Vinh, Director of Hai Phong-based Vinh Hoang Company said that the imported cars have been unsalable.

 

Shifting to other business

 

Vinh said that other car importers are all suffering heavy losses due to the unsold cars. The importers now accept to sell at a loss of $2,500-5,000 for every Toyota Camry in order to clear the stocks and get money to pay bank debts.

 

Many importers said that they will shift to other business after clearing the big stocks as car trading proves to be unprofitable any more.

 

Meanwhile, Hyundai Motor Vietnam said that it is trying to develop a new business: importing specific vehicles, including ambulances and money-carriers.

 

Ha Minh Tuan, General Director of Hyundai Motor Vietnam, said that specific vehicles do not bear luxury tax, while the developing economy ofVietnam has the high demand of specific vehicles.

 

Tuan said that in 2007 and 2008, Hyundai can sell 700-1,000 ambulances and 500 money carriers. He hopes to sell 500 Hyundai Starex brand name money carriers and 700-1,000 ambulances in each of the next years.

Vietnam's Foreign Investment News Briefs

Swedish companies eye opportunities in Vietnam

Swedish companies see many potential business opportunities in Vietnam, said Swedish Ambassador Rolf Bergman while meeting with Deputy Prime Minister Nguyen Sinh Hung in Hanoi on Oct. 27. 

The ambassador, who led a Swedish business delegation on a visit to Vietnam to seek business opportunities, said he was very impressed by Vietnam’s outstanding achievements in socio-economic development and poverty reduction over recent years. 

For his part, Deputy PM Hung said that Vietnam would welcome Sweden’s assistance in developing the application of technology in industry, agriculture and human resources training.

The delegation’s visit reflected the two countries’ friendship and Sweden’s desire to continue and build upon its long-term cooperation with Vietnam, he added. 

This cooperation is important for both countries to help ease their difficulties in the context of the on-going global financial crisis, he went on. 

Hung noted that the Vietnamese government is placing priority on taking measures to control inflation, stabilise the macroeconomy and to ensure social welfare. 

There are more than 70 Swedish companies currently operating in Vietnam.

Investors interested in IZs lying along Hanoi-Hai Phong road

A number of foreign investors are eyeing locations close to Hanoi and along the Hai Duong – Hai Phong corridor.

A number of foreign investors are eyeing locations close to Hanoi and along the Hai Duong – Hai Phong corridor, according to the latest survey by the real estate service provider, CB Richard Ellis (CBRE) Vietnam. 

A CBRE representative said that an industrial zone (IZ) corridor along the Ha Noi – Hai Phong line has been established thanks to the development of the economic areas in both Hanoi and Hai Phong cities. 

The corridor includes 10 industrial zones, hi-tech areas, heavy and light industry zones as well as several factories and industrial facilities located at large IZs such as Thang Long ( Hanoi ) and Dinh Vu (Hai Phong). 

Businesses renting premises in these IZs benefited from a host of preferential investment policies from the government as well as high-quality infrastructure, a stable rental period and low costs. 

Currently, almost all areas within the IZs in Hanoi and former Ha Tay (now Hanoi ) are being rented. 

According to CBRE, investors in IZ construction should investigate expanding the areas of IZs in the provinces of Hung Yen and Bac Ninh to meet the rental demand at IZs located along the Ha Noi – Hai Phong corridor and surrounding areas. 

Japan’s Sumimoto company is planning to commence operations in the Thang Long II industrial zone along the 5 and 39A National Roads in the province of Hung Yen. 

Once operational, the IZ is expected to attract a host of foreign companies, particularly Japanese businesses.

VinaSiam Bank to raise charter capital to 60 million USD

VinaSiam Bank, a Vietnamese-Thai joint venture, has been granted a permit by the State Bank of Vietnam (SBV) to increase its charter capital to 1 trillion VND (60 million USD) later this year.

VinaSiam Bank was founded in 1995 by the Bank for Agriculture and Rural Development of Vietnam (Agribank) and the Charoen Pokphand (CP Group) and the Siam Commercial Bank of Thailand. The bank has an initial charter capital of 20 million USD.

In late September, VinaSiam Bank was named the best provider of prime foreign exchange services in Vietnam for 2008 by Asiamoney, one of the leading international financial magazines in the Asia-Pacific region.

SBV previously permitted the Italian bank Intesa Sanpaolo S.p.A to open a representative office in Vietnam, bringing the number of representative offices of foreign banks in the country to 54.

FDI continues to flow in

Foreign investors poured two more billion USD into 68 new projects in Vietnam in October, bringing total FDI amount so far this year to 58.3 billion USD, according to the Ministry of Planning and Investment.

The total investment capital in 10 months saw a 6-fold rise over the same period last year, despite a decrease in project number which totalled 953, equal to 83.3 percent of the figure one year ago.

In October, the nation also permitted 22 projects to add a combined amount of more than 169 million USD. 

FDI disbursement between January-October is estimated at 9.1 billion USD, a year-on-year increase of 38.3 percent.

Foreign-invested enterprises reported a total revenue of 40.6 billion USD in the reviewed period, a year-on-year increase of 29.6 percent. The sum included 19.9 billion USD from exports.

Those enterprises generated an additional 16,000 jobs in October, bringing the number of workers in the foreign-invested sector to more than 1.43 million, a year-on-year increase of 15.5 percent.

However, experts urge the government to exert more efforts to increase capital absorption, focusing on large projects licensed in 2006 and 2007.

Vietnamese firms eye Chilean market

A delegation of 18 Vietnamese enterprises met with president Pablo Granifo of the Bank of Chile on October 25, one of the greatest commercial bank in the Latin American country, according to a local newspaper.

The Vietnamese trade delegation, led by Chairman of the Handicraft and Wood Industry Association Nguyen Chien Thang, has earlier participated in the “Chile-Vietnam Business Opportunities” seminar, El Mercurio online newspaper reported.

Members of the delegation include those working in the agriculture, tourism, textile, wood processing and wine industies.

In 2007, Chile exported goods worth more than 107 million USD to Vietnam and imported 55.1 million USD. The two-way trade between Chile and Vietnam is forecast to climb to 189 million USD this year.

Vietnam, Laos cooperate in addressing agricultural matters

Vietnam is seeking to further expand the scope of its cooperation with Laos in agriculture and rural development, particularly in areas such as technology, training, investment and trade, said Minister of Agriculture and Rural Development Cao Duc Phat.

Holding talks with Laos’ Ministry of Agriculture and Forestry (MAF) in Hanoi on Oct. 27, Minister Phat and his guest agreed that between 2007 and 2008, the two ministries’ units and localities worked closely together in implementing joint projects in agriculture and rural development. 

Vietnam helped build a number of irrigation works for Laos, including Dongphosy and ThaphaNongpong, at a total cost of 17.8 billion VND (more than 1 million USD). The two countries jointly organised three bird flu prevention training courses in Laos and two additional courses for Lao officials in Vietnam. 

In addition, Vietnam presented 25,000 doses of vaccine, 2,000 samples of frozen sperm and two purebred Brahman bulls to Laos. 

According to MAF Minister Sitaheng Rasaphone, Vietnam-backed projects have yielded excellent results in Laos. “In the future, Laos wishes to receive even more support from Vietnam in these fields,” he said.

The two sides plan to continue strengthening cooperation in animal quarantine during 2009, through the exchange of information relating to cattle and poultry diseases. 

The two sides will increase their exchange of agro-forestry products and create favourable conditions for the two countries’ enterprises to increase cooperation in areas such as agro-forestry and sustainable forest exploitation and management.

Work begins on new industrial zone in Bac Ninh Province

Construction of the Nam Son-Hap Linh Urban - Industrial Zone in the northern province of Bac Ninh commenced on October 27 by the IGS Vietnam Co., Ltd. 

The groundbreaking ceremony was attended by Vietnamese Deputy PM Nguyen Sinh Hung, Minister of Commerce, Industry and Energy of the Republic of Korea (RoK) Jung Jang-Seon and a number of officials representing both countries. 

The urban –industrial zone, costing a total cost of 2 billion USD, occupies an area of 600 hectares, including 400 hectares for industrial development and 200 hectares set aside for a commercial center, schools, clinics, parks and a range of other public facilities. 

The initial stage of the project is expected to attract approximatedly 300 investors in the fields of new industry and advanced technology, such as electronic component production, food and consumer goods manufacturing. It will also create jobs for almost 50,000 workers.

Vietnam's young work and study long hours to get ahead

After finishing work at Nakico company at HCM City’s Tan Phu District, Tran Thanh Tuan, 24, cycles 11km to the HCM City University of Industry to attend night classes. It’s a busy day with little time for rest.

Over the past two years Tuan starts his day at 6am and ends at 10pm, with the same routine of working, studying and then doing his homework day after day.

"Working and studying makes me really tired. Yet, I’m determined to get my BSc degree because it’s the only way for me to ensure a brighter future," said Tuan.

Le Thi To Nga, a worker at Towa company in Tan Thuan Export Processing Zone (EPZ), also has to balance work and study. She’s enrolled in an accounting and auditing course at Nguyen Tat Thanh College.

"Too much work and study leaves me little time to care for my little daughter," said Nga.

"The only thing I have time to do is check her homework at 10pm."

Tuan and Nga are among more than 300 workers in the city who are keen on enhancing their knowledge after work.

The biggest challenge for workers who are also studying is to effectively manage their time.

"Sometime I am too tired, but I cannot have a day off from work because it would greatly affect my income," said Nga.

Nga is still lucky since she is permitted to finish work early during examination days. Tuan has to rotate his study and work timetable frequently.

"If I work at night I would take day courses and vice versa," he said.

"Some of my friends had to drop their studies due to frequently changing shifts at work."

Agreeing with Tuan, a worker at Linh Trung Industrial Zone who prefered to be anonymous said: "Most of services courses take place after work hours (5pm). But if you refuse to work night shift it gives the impression you don’t want to share the burden of the company."

He went on to say that it also meant his position at the company would be at risk, along with his bonus. But he warned of another danger: some supervisors disliked workers who tried to get higher degrees, simply because bosses feared these people would replace them.

In addition to being short of time to study, school fees are also a headache for worker-students.

With monthly salaries of a little more than VND1million (US$62), school fees of VND4-5 million ($250-310) are difficult to cover for most workers.

Thu Thao, an employee of Nidec Copal Company and student at HCM City University of Economics, said she had to save money for two years before registering at the school. Yet, the sum was just enough for three terms. For the fourth term, she had to borrow money from friends.

"Apart from school fees, there are expenses for learning materials and travelling costs," said Thao.

The worry over school fees may be alleviated for a few hard workers, as the Business Studies and Assistance Centre (BAS) has launched a foundation to grant scholarships and interest-free loans for disadvantaged workers. The foundation reviews applications on a monthly basis. Each worker can borrow between VND2-7 million ($118-$412) depending on their course and living conditions.

"Procedures for loans are very simple," said Nga.

Tuan agreed that the loan helped him substantially to ensure his school fees are paid on time.

"A colleague of mine informed me about the fund and I applied for a loan. It is a solution to ensuring the fees are paid on time even if I have run out of money," said Tuan.

So far 58 worker-students both inside and outside industrial and economic zones in the city have been granted the preferential loans.

According to Tran Minh Trong, the foundation’s director, borrowers tend to take courses at vocational training schools and universities hoping that the degrees will help them get better jobs.

The foundation will grant 26 scholarships to outstanding worker-students belonging to 15 businesses in Tan Binh, Linh Trung and Tan Thuan IZs and EPZs on Friday.

Though the number of workers interested in studying is small compared with the total number of workers, Trong said he hoped the BAS would help increase the number of workers pursuing studies.

"Improving knowledge of workers not only benefits the learners themselves but enhances the quality of the businesses and the labour market in general," said Trong.

There are about 1.2 million workers in the city, among them 250,000 work at 15 EPZs and IZs.

Vietnam's financial crisis knocks on door of tourism industry

VietNamNet Bridge – It is now the high tourism season, but there are not many foreign tourists coming to Vietnam at this moment. The number of businessmen at big hotels in HCM City has also decreased. The world’s financial crisis has knocked on the door of the tourism industry.

 

Number of tourists down by 30%

 

According to the Vietnam National Tourism Administration (VNAT), 315,000 foreign tourists came to Vietnam in September, a decrease of nearly 50,000 tourists compared to September last year. While the number of tourists from China, Russia and Germany increased slightly, the numbers of tourists from the US, France, Japan and South Korea have seen considerable decreases.

 

According to the Deputy Minister of Culture, Sports and Tourism Tran Chien Thang, the ASEAN Tourist Forum (ATF) 2009 will take place from January 5-12, 2009 in Hanoi. This is the first time Vietnam will host the annual regional forum.

Thang said that the ATF 2009 will focus on improving service quality and improve administrative procedures in order to create the best conditions for inner-ASEAN tourism. In the immediate time, when far markets like Europe and North America have decreased, ASEAN tourism should pay attention to medium-size markets like Japan, Australia and South Korea, and especially, to ASEAN tourism with reasonable prices.

The official number of tourists in October has not been revealed yet, but the director of a travel firm said that the number might see a decrease of 30%. Five-star hotels in HCM City and Hanoi say that the number of clients staying at the hotels is smaller than during the same period of last year, though it is now the high season for western tourists to come to Vietnam on their winter vacation.

 

The director of a travel firm that specialises in serving MICE tourists complained that the number of clients has decreased by 50%. He said that in previous years, it was very difficult to book hotel rooms, but now travel firms can easily negotiate room rates.

 

Local planning and investment departments in HCM City, Binh Duong and Dong Nai provinces have also confirmed that the number of foreign investors coming to learn about investment procedures has decreased. The staff responsible for providing information at the Vietnam-Singapore Industrial Zone Management Board said that if the board previously received some 10 investors, it was now receiving only 3-4 investors.

 

Struggling with the financial storm

 

An official from the Foreign Investment Agency under the Ministry of Planning and Investment said that it is not a surprise to see the number of investors decrease in the current difficult conditions.

 

Foreign tourists on HCM City’s streets

“What we need to do now is to make a breakthrough to urge investors to disburse for licenced projects when they are considering the places to inject money into,” he said, adding that only by doing so can Vietnam prove that it is an attractive destination.

 

The official said that recently, a delegation of Nigerian businessmen came to Vietnam to seek investment opportunities. A delegation of 200 Italian investors will arrive in Vietnamearlier the next month with the same purpose. The governor of the US’ Idaho state has led a delegation of US businessmen to Vietnam to market US farm produce.

 

At the Vietnam-Nigeria Business and Investment Forum held in Hanoi on October 24 by the Vietnam Chamber of Commerce and Industry, Mustafa Bello, Managing Director of the Investment Promotion Committee, said that Vietnam’s strong industries could be an attractive market for Nigerian businessmen to export materials to.

 

Explaining the reason that brought hundreds of Italian businessmen to Vietnam in the last few days, Marco Saladini, Italian trade commissioner in Vietnam, said that Vietnam is really an attractive market for Italian investors as it imports several billion dollars worth of equipment and production tools per year. Vietnam has caught the attention of investors also as a fast-growing retail market in the world.

 

The director of a tourist firm has urged state management agencies to take action to attract clients in the current difficult period. “While other countries have been trying to promote tourism, Vietnam still keeps quiet,” she said.

 

The director said that hotels owners in Vietnam should think about the fact that room rates in Vietnam are still 25% higher than in regional countries.

Tuesday, October 28, 2008

Vietnam: The destination of many foreign students

VietNamNet Bridge – More and more foreign students are studying at Vietnamese universities, though they face many difficulties in the country.

 

A Chinese student prepares meal

“We choose Vietnam

 

The Vietnamese faculty under the HCM City University of Social Sciences and Humanities has enrolled 61 foreign students for this year. Most of them are South Korean, 10 are Turkish and two Japanese. Meanwhile, the Chinese Philosophy Faculty now has nearly 100 Chinese students who are following different training courses.

 

“We have finished the second year of studying in the foreign affairs branch at Guang Xi Ethnic University. We have to register so study in a country to learn about its economy and language, and we have chosen Vietnam,” said Zhang Zhi Min, a student in the Chinese Philosophy Faculty under the HCM City University of Social Sciences and Humanities.

 

“We have chosen Vietnam because this is a rapidly growing economy. Also, Vietnam has a very interesting culture,” he added.

 

The trend of foreign companies flocking to make investment in Vietnam has prompted foreign students to learn Vietnamese in the hopes of finding lucrative jobs.

 

However, it is difficult for foreign students to study in Vietnam. The language barriers, differences in culture and climate put big difficulties on most foreign students.

 

As for Kim Ju Ae and Kim Ji Hwan from Pusan Foreign Language Universityin South Korea, 4th year students at the HCM City University of Social Sciences and Humanities, the difficulties are accommodation problems.

 

Ae has hired a small room for one person on Nguyen Thi Minh Khai streetin district 1, HCM City for $180 a month. Hwan is luckier because the student can hire a room for two persons in Binh Thanh district for VND450,000/person, with a kitchen.

 

South Korean students complain that in South Korea, they learned Vietnamese language with the north accent, but in HCM City, they have to learn the southern accent.

 

Most foreign students return home only once every two or three years to save money.

 

The chance to access new methods of learning

 

Kim Ju Ae will spend four years in Vietnam. She said that the thing she likes most in learning in Vietnam is the new method of studying. “The method of learning here is similar to the French style, which means you don’t have to learn by heart like in South Korea. The lecturers just give themes to students for discussion, and then students make reports,” she said.

 

The special thing of Vietnamese universities is that they always have social activities. This helps students to apply the knowledge they get at universities in social situations.

Vietnam phone number confusion

Vietnam has added more digits to its phone numbers, and the decision is currently confusing landline users, though it will ultimately enable the addition of thousands of new subscribers.

All six of Vietnam's fixed-line companies have added an extra digit so they can make more phone numbers available. More than 13 million subscribers have been affected in the change. The new change-over was made by adding an extra number after the area code, but each company has added a different number for their subscriber base. 

For more:
Viet Nam News on new digit addition to phone numbers

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Vietnam PC market grew 5% YTY in Q2 2008

The Vietnam client PC market grew 5.0% YOY to 337,000 units in Q2 2008. However, total shipments in Q2 2008 fell 5.6% from Q1 2008 due to the sluggish economy, the unstable exchange rate, and the decision of government and enterprises to cut back on investments in IT products. In 2Q08, the consumer segment grew 15.6% YOY, in part due to the growth of consumer notebooks at 116.1% YOY. Notebooks occupied 25.8% of total PCs shipped to consumers but only 24.0% of PCs were shipped to commercial buyers. Total notebooks grew 57.0% YOY but desktops fell 5.3% YOY,according to IDC.

Vietnamese enterprise plants over 9,000 hectares of industrial plants in Laos

Nhan Dan – Dak Lak Rubber Company has invested over US$23 million to put over 9,000 hectares under industrial plants in the Champasak, Salavan and Atopu provinces in the neighbouring country of Laos in the past four years.

These include 8,000 hectares of rubber, 700 hectares of cashew, 230 hectares of coffee and 80 hectares of material forests.

Local Lao households have signed contracts with the company to take care of the plants. The company has also organized short-term training courses on the techniques to grow and take care of the plants to the local people.

Next year, the company targets to expand the growing area to 1,500 more hectares. In the longer term, the company will build a rubber processing factory which is scheduled to be operational in 2011. It will also get involved in other projects to build small and medium hydro-electric power plants, an ecological tourism area and a general trade centre.

Monday, October 27, 2008

What to buy when you're in Vietnam

Vietnam has a variety of handmade gifts for amazingly cheap prices. Here's what to look for:

·  Hoi An. Good place to buy original art, including oil and watercolor paintings, $2-up; wood statues, $3; lanterns, $5-up; silk scarves, $6-up; mats, $20-up. Hoi An also has tailor shops that will custom-make a beautiful suit or silk dress in one day for you for about $40 for a suit and $25 for a dress. The 41 Le Loi Fine Arts-Handicraft Workshop even makes its own silk from silkworms.

·  Danang: The Tien Hieu 3 marble shop near Marble Mountain is a tourist shop, but it has good prices on beautiful marble statues and boxes, $8-up, and wood inlay boxes, $2-up.

·  Near Halong Bay: Government-run tourist shops near the bay are overpriced, but clothes are reasonable at $10-up; conical hats, $2-up; lacquerware, $4-up, and teak furniture, $100-up.

·  Saigon and Hanoi: Most tourists will find Hanoi and Saigon (Ho Chi Minh City) too confusing to do much shopping, because there are thousands of shops on a maze of streets. But if you have time, explore at least a few. Hanoi has designer shops, but most are mom-and-pop-type holes in the wall.

After I lost my hair elastics, I asked my guide to take me to a shop where I could buy some new ones.

The store he stopped at, called Tim!, displayed each individual elastic and barrette on its own, in orderly rows in big glass cases. Three elastics and a barrette cost about $2.

·  Airport shops. Buy a bag of Vietnamese coffee on the way out of the country, about $3. It is smooth, strong and cheap.

Saturday, October 25, 2008

Vietnam's PetroChemical future uncertain

Thailand's biggest industrial conglomerate - Siam Cement Plc, forsees an uncertain future for its US$ 4 bln petrochemical complex planned in Vietnam. The project might no longer be financially viable due to tight global liquidity, that could adversely affect ability to secure loans from banks by the company. Discussions are on with the Vietnamese government for investment privileges, even as SCC is currently in the process of site commitment. Despite a round of discussions initiated with banks to get loans, the scenario seems difficult. If the funding does not come through, despite the group's financial strength, the project might become unviable. 
SCC's Q3 profits dropped 21% from year ago levels, on rising expenses. Profits fro the quarter to Sept 30 fell to 5.94 bln baht despite a 15% yoy increase in total sales to 79.3 bln baht. Sales for the first three quarters rose 20% yoy to 238 bln baht while net profit fell 18% to 20.25 bln, despite an extraordinary gain of 4.45 bln baht booked in Q3 from a non-core business divestment. Crude oil and coal, the company's main fuels, rose to record highs in July, increasing production and transport costs of all of SCG's core businesses: cement, petrochemicals, paper, and building materials. 

Friday, October 24, 2008

Vietnam welcomes Canadian investments

TORONTO — Vice President Nguyen Thi Doan has told Canadian business leaders they are always welcome in Viet Nam.

The Vice President was attending a Viet Nam-Canada business forum held in Toronto on Monday by the Viet Nam Chamber of Commerce and Industry, the Embassy of Viet Nam and Toronto City Council.

She said economic and trade relations between Viet Nam and Canada had made positive progress in recent years, but were yet to match the potentials of the two countries.

Therefore, Doan said, Viet Nam was committed to creating favourable conditions for Canadian investors to operate.

She thanked Toronto and Ontario provincial authorities for helping the Vietnamese community to integrate into the local society.

At the forum, representatives from 40 leading businesses in Canada and 30 from Viet Nam discussed the possibility of co-operation and investment in a number of fields.

Viet Nam and Canada have experienced strong economic and trade growth in recent years. This year’s two-way trade is expected to exceed the US$1 billion benchmark for the first time.

Canadian businesses have to date invested $4.7 billion in projects in Viet Nam, including a $4.2 billion sea resort in southern Ba Ria-Vung Tau Province funded by Asian Coast Development Ltd.

So far this year, Vietnamese companies have exported to Canada $600 million worth of garments and textiles, footwear, agricultural products, seafood and wooden furniture.

Vice President Doan also delivered a speech at a ceremony marking the 35th anniversary of diplomatic ties between Viet Nam and Canada, which was hosted by the Vietnamese Embassy and the Canada-Viet Nam Friendship Association. — VNS

Vietnam drops plan to organize tourism year 2009

VietNamNet Bridge – The annual tourism year will not take place in 2009 following a decision from the Government, citing the lack of tourism facilities and the running-out time required for preparation following the refusal of Daklak Province to serve as host for the program.

The current national tourism year Mekong Can Tho 2008 is taking place in the Mekong Delta City of Can Tho.

Under the new decision issued by Deputy Prime Minister Nguyen Thien Nhan, the year-long tourism program has been canceled, said Nguyen Manh Cuong, deputy head of the Vietnam National Administration of Tourism under the Ministry of Culture, Sport and Tourism.

Earlier this year, the country’s tourism body chose the Central Highlands province of Dalak as host to the national tourism year in 2009 with an aim to develop the hospitality industry in the high-terrain province and neighboring localities. Main events such as the opening and closing ceremonies were scheduled to take place in Daklak while other neighborly provinces Dak Nong, Kon Tum, Gia Lai and Lam Dong would join forces by organizing a series of festivities throughout the year.

However, only months after it was chosen, Daklak backed off from the position, citing the lack of tourism facilities and money.

“After Daklak withdrew itself from the position, its neighboring province of Gia Lai has sought the national tourism authority’s approval to become host to the events, but now comes the final answer to shelve the tourism year plan,” Cuong told the Daily.

Cuong blamed Daklak for the hiccup in this case, saying the province had abruptly changed the plan although the national tourism authority had asked the province to organize the tourism year much earlier on. Daklak Province’s withdrawal has left the tourism body little time to look for a replacement.

“There is not any similar program to replace the national event but other festivals and events earlier planned to take place in the region during the tourism year will still take place,” Cuong said.

Vietnam’s tourism industry has been making efforts in organizing the national tourism year as a way to attract more tourists, especially international travelers. However, after six years since the first event was launched, such a big name has drawn little attention and proved not attractive.

“We need to think more about the way activities are organized. There seems to have been some wrong approach in choosing main subjects for the national program. We’re just making festivities for locals while the main purpose is to attract foreign tourist,” he said.

To deal with the situation, Cuong said that the country’s tourism body should redress its inappropriate activities, especially the choice of main topics for the program so as to bring out right products and marketing plans to ensure high efficiency for the tourism year.

“We will rethink activities soon, especially after the ministry has asked the tourism authority to make a long-term plan in organizing the tourism years until 2020,” Cuong said.

The national tourism authority has proposed a plan to choose the capital city of Hanoi as host to the tourism year 2010. However, the central Government has not given its final say.

Early this month, Deputy Prime Minister Nguyen Thien Nhan has agreed to choose the central province of Phu Yen as home to the national tourism year 2011.

The current national tourism year Mekong Can Tho 2008 is taking place in the Mekong Delta City of Can Tho.

Vietnam nudges up a tad to 65th in EIU business ranking

The Economist Intelligence Unit (EIU) reported that Vietnam climbed up six grades in the global business environment ranking from 71 for the period 2009-2010 to the 65th position for the 2009-2013 period. 

Vietnam's business environment has improved after becoming a member of the WTO and the country will gain after implementing WTO commitments on commercial liberalisation. 

In the news "Country Forecast" in October 2008, EIU assessed that between 2009 and 2010, Vietnam will improve business environment for private enterprises and introduce several new laws. By 2011-2013, more state owned enterprises (SOEs) will be equitised. 

According to the news, a law system of Personal Income Tax (PIT) will be modified and enforced from January 2009. By that time, foreigners and locals will pay the same tax level. At present, foreigners have to pay a PIT which is two times higher than the local people. 

Next year, state commercial banks will go in for equitisation and the operations of foreign banks will be limited. 

EIU also forecasted Vietnam's actual GDP growth in 2009 is estimated at 5.3%. However, foreign investors will keep faith in Vietnam's business prospects because of the low labour cost and improved infrastructure. 

As reported, the committed FDI during the first nine months of 2008 reached US$57 billion. 

Thursday, October 09, 2008

$62bil to be injected in Vietnam this year?

Foreign investors are still committing to making big investments in Vietnam in 2008 despite the uncertainties in the world. However, no one knows for sure how much money will actually be disbursed.

$62bil in FDI, a huge amount of money

Vietnam attracted 885 foreign direct investment projects in the first nine months of the year with the total registered capital of $57.1bil.

Le Buu Quang Huy, Director of the Central Region Investment Promotion Centre, said at an October 7 press conference that Vietnam attracted 885 foreign direct investment projects in the first nine months of the year with the total registered capital of $57.1bil.

The central region and the south attracted 609 projects with the registered capital of $43bil, 71% of the total registered capital.

Huy believes that the total FDI capital in 2008 will reach $62bil.

In 2006, the total FDI in the world was $1,306bil, but only 20% was poured into developing countries. China alone attracted $67bil. 

The $67bil was just equal to 2% of China’s economy. The $62bil worth of FDI Huy thinks Vietnam will attract in 2008 is approximately equal to Vietnam’s GDP.

Huy said that several years ago, there were very few projects worth over $1bil. Meanwhile, huge projects worth several billions of dollars nowadays are popular. The oil refinery project in Ba Ria-Vung Tau province, for example, has the registered capital of $6bil, while a project in Ninh Thuan province, $9.8bil.

When will the $62bil come?

$62bil is considered a big jump by Vietnam in attracting foreign investment. However, experts still are reserved when talking about the figure, saying that Vietnam hasn’t gotten the money yet.

Huy said that in 2008, the Ministry of Planning and Investment has taken a lot of tours to check huge FDI projects in order to learn about problems and difficulties investors have faced in order to help investors push up the implementation of projects and disbursement.

One of the biggest obstacles for investors is tardiness in site clearance, which causes tardiness in implementing projects. Other problems cited are poor infrastructure and complicated investment procedures.

Huy emphasised that Vietnam does not accept investment projects which have bad impacts on the environment. He said the country also has a policy of reclaiming land allocated for projects which investors have no intention of implementing but just registered to get land.

Wednesday, October 08, 2008

Vietnam's Sept car sales at lowest this year

HANOI, Oct 7 (Reuters) - Vietnam's September car sales fell by one third from August to 5,180 units, the lowest monthly sales volume so far this year, while sales in the first nine months still nearly doubled from a year ago, an industry report said.

Sales by 16 cars makers fell 33.7 percent to 5,180 units in September from 7,809 units in August, the Vietnam Automobile Manufacturers Association said in its monthly report on Tuesday.

The association gave no reasons for the drop but dealers have said demand would slow for the rest of the year after the government tripled registration fees to 15 percent of the car's purchase price from Aug. 14.

Sales in the first nine months of 2008 soared 83 percent to 90,057 units from the same period last year, with Toyota Motor Corp (7203.T: Quote,ProfileResearchStock Buzz) retaining its top position among the 12 manufacturers.

Toyota has sold 18,656 cars between January and September this year, up 20.7 percent from last year but its sales growth slowed from an annual rise of 27.6 percent between the first nine months of 2006 and 2007, the report said.

Car imports in the first nine months of this year surged nearly tripled from a year ago to 45,900 units, government figures show.

China, Vietnam to open direct transport between border cities

China and Vietnam will open a direct transport service between their respective border cities of Pingxiang and Lang Son by year end, according to a Chinese official on Monday.

Irregular shuttle buses, government vehicles and private cars would be allowed to pass the shared Friendship Gate Port and drive in each other's city, said Song Jian, director of the International Road Transport Administration under the China Friendship Gate Port.

Freight trucks could only drive into the designated logistics parks in the two cities, Song said, citing an agreement of the transport authorities from the two countries.

During their meeting late last month, the two sides agreed transport authorities would start issuing permits to the vehicles of the direct transport service.

According to the plan, transport officials will meet again late this month to discuss further details. This will also involve officials from various authorities, including customs, border inspection and quarantine, public security, transport businesses and insurance.

"The direct transport service is expected to greatly boost bilateral cooperation in transport, trade, tourism and other areas," Song said.

Over the past few years, no direct transport has been allowed through the port of the Friendship Gate, which is rendered into Youyi Guan in Chinese and Huu Nghi Quan in Vietnamese. The highway port is about 17 km from Pingxiang, a small city in the southern Guangxi Zhuang Autonomous Region, and 18 km away from Lang Son, capital of north Vietnam's Lang Son province.

More than 200,000 vehicles pass through the border each year, according to Chinese government statistics.


Tuesday, October 07, 2008

One-day exploration of ethnic culture

A tourist studies a wooden model of the Central Highlands buffalo sacrificing festival at the Cu Chi Ecological Tourist Site museum.
About 60 kilometers from downtown Ho Chi Minh City, Cu Chi District is not only a place with heroic traditions but also a scenic site for a relaxing weekend.

As well as the famous underground tunnel network that was a resistance base during the wars against the French and Americans, Cu Chi also offers tourists an insight into ethnic minority cultures.

A 20–hectare green area allows visitors to experience various ethnic minority cultures from the Central Highlands to the northern area through activities such as buffalo coaches, horse– drawn carriage riding and, every Sunday, piglet racing.

Tourists can observe Ede, Thai, Tay, Nung and Muong women making bags, handkerchiefs, clothing and jewelry using brocade weaving techniques. Studious guests will be pleased with the tribal lifestyle displays in the museum, which also exhibits traditional costumes, cultures and tools of different ethnics groups from around Vietnam.

A VND500 million (US$30,000) traditional nha rong (large communal house) is at the heart of Cu Chi Ecological Tourist Site of Ethnic Minorities’ Culture.

At the complex, visitors can taste delectable specialties such as the Churu com lam (rice cooked in young bamboo tubes) with grilled pork and the Ma ethnic group’s ruou can (wine that’s sipped from a ceramic jar through long straw).

The trip would not be complete without learning about some ethnic festivals that involve the merry sound of gongs and music to celebrate “harvesting new rice” or “buffalo sacrificing.”

Adventure-loving visitors can try the game called “Adventure of the ivory bamboo labyrinth” in which participants have to traverse a five-compartment house made from nearly 2,000 ivory bamboo plants.

In downtown HCMC, go along the Cach Mang Thang Tam Street to the Bay Hien Intersection. Go straight through and follow Truong Chinh Street until you get to Highway No.22, turn right and drive 30 km to Cu Chi.

Cu Chi Ecological Tourist Site of Ethnic Minorities’ Culture
Hamlet 4, Nhuan Duc Commune, Cu Chi District, HCMC.
Tel: (08) 792 8922.
Entrance fees: VND20,000 (US$1.20)
Services fee: VND5,000-25,000 ($0.30-$1.50)

US and Vietnam hold defence, security talks

HANOI (AFP) — Former enemies the United States and Vietnam on Monday discussed possible areas of future military cooperation in their first Strategic Dialogue on Political, Security and Defence Issues, officials said.

"We focused on a wide range of areas in which we can strengthen our relationship jointly," US Assistant Secretary of State for Political-Military Affairs Mark Kimmitt told a Hanoi media briefing after the talks.

"We discussed areas of mutual interest including international peacekeeping operations, humanitarian assistance and disaster relief, maritime security and the prevention of the proliferation of weapons of mass destruction."

The talks, which are set to be held annually, follow a number of US naval visits and other military diplomacy between the countries that resumed full ties in 1995, twenty years after the end of the Vietnam War.

Hanoi has sought to balance its relations with large neighbour and communist ally China, and with the United States, now a key economic partner.

As it has reintegrated with the Asian region and the world, Vietnam, currently a non-permanent UN Security Council member, has stated its willingness to deploy peacekeepers to conflict areas in future.

"With a view to contributing to peace and stability in the world, we have many times stated that Vietnam are finalising procedures in participating in peacekeeping operations," said Standing Deputy Foreign Minister Pham Binh Minh.

"To be efficient Vietnam would like to cooperate with every country to make sure that our participation will generate impact," he said.

Kimmit said the United States stood ready to assist Vietnam in "building that capacity, as we do with so many other countries around the world."

Vietnam: Tied to the past, seeking the future

William B. Ketter

CNHI News Service

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.

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. 

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 work force 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 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 such as 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.

William B. Ketter is vice president of news for Community Newspaper Holdings Inc., a news company based in Birmingham, Ala., that owns 89 daily newspapers. Contact him at wketter@cnhi.com. The Richmond Register is a CNHI newspaper.

Monday, October 06, 2008

Developing Adventure Tours In Viet Nam



First introduced to Viet Nam at the end of 1990s by a French group, adventure tours are a growing choice for travellers to Viet Nam.

According to international experts, three quarters of Viet Nam's territory is made up of mountains, rivers and oceans, caves and forests just waiting to be explored.

They say this provides all the right conditions for developing everything from motorbike, bicycle, car and boat touring along with mountain climbing, ocean diving, ballooning and parachuting.

This relatively new form of tourism is thought to be developing in the country due to growing demand, and also because travel agents are delivering more tours and providing better safety measures and equipment.

Buffalo Tours says it pioneered adventure tourism 14 years ago. With its annual growth of 20-30 percent, it says it holds a strong position in Viet Nam’s tourism market.

Buffalo Tours’ founder Tran Trong Kien said his company has cooperated with more than 200 travel agents worldwide to provide adventure tours in Viet Nam for around 12,000 holiday-makers per year.

Apart from Buffalo Tours, other big travel agents in the country have joined the field, including Hong Bang, Hanoitourism, Saigontourist and Tre Xanh.

With 10 years experience in adventure tourism, Hong Bang Travel is well-known for its mountain climbing tours.

The company is now planning to join the Dong Nai Tourism Company to launch what they say will be the first adventure entertainment zone in Viet Nam . To be located at south-eastern Dong Nai province’s Buu Long tourism resort, the companies are calling the new adventure tour “X-Venture”.

Ocean diving and motorbike riding tours are also popular, especially among international visitors.

In 2007, Saigontourist organised ocean diving for almost 20 groups, most of which were foreigners.

“Since 2003, we have organised trans-Viet Nam tours for motorbike riders,” Saigontourist Thanh Tra said.

Doi cave in Phan Thiet, Quan Am cave in Ngu Hanh Son mountain, mountain cliffs in Con Dao and around Vinh Hoa stream, and the Death Abyss in Datanla have also become attractive destinations for visitors who love a physical challenge.

However, the development of this type of tourism faces many difficulties.

A travel and tourism expert says procedures for organising such tours remain complicated and time consuming.

The National Administration of Tourism says there has not yet conducted a intense research on adventure tours due to the fact adventure tourism remains limited compared with the country’s other tourism options and visitors’ increasing demands.

Trans-national money laundering case brought to light

12:19' 04/10/2008 (GMT+7)

VietNamNet Bridge – Central city of Da Nang’s police have brought to light a case of money laundering via Vietnamese banks.

The laundering was conducted by two Mozambicans and a Congolese who had exchanged 295,650 GBP for Vietnamese dong.

Da Nang police turned an eye to the case when they were reported on the simultaneous opening of two bank accounts at a commercial bank branch in Da Nang on Sept. 20 by Baggio Carlitos Linska, a Mozambican citizen, who withdrew all 4.1 billion VND from the accounts as soon as they were activated.

Tracing the origin of the money, the police also discovered the transfer of more than 3.34 billion VND into a bank account opened by Niaty Lokasso Djamba, a Congolese, in southern Ba Ria Vung Tau Province.

The sums were found to be stolen from a foreign bank account then transferred into two commercial banks in Da Nang City and Ba Ria-Vung Tau Province, Vietnam.

Two Mozambicans have been detained while the Congolese is still at large.

The case is now under further investigations by the Ministry of Public Security and the Interpol.

VIETNAMESE BEAUTY OF THE DAY


Maggie Q is an actress and supermodel of Vietnamese-American descent. Maggie Q is the youngest of five children. Her father is American of Polish-Irish ancestry and her mother is Vietnamese. She was born in Honolulu, Hawaii but at 18 began a modeling career which brought massive success in Hong Kong. 

Maggie Q is popular in Hong Kong, appearing in Chinese films and speaking Cantonese, despite being Vietnamese - because of this she remains relatively unknown in the Vietnamese American community, but is a star with Chinese audiences. 

A successful model and rising actress, featuring in magazines such as Cosmopolitan, Elle, FHM and Marie Claire amongst many others. Her film credits include Gen-Y Cops 2, The Trouble-Makers, Rush Hour 2, Dragon Squad, and the hit movie Naked Weapon. She also co-stared in the stage production by David Pinner, All Hallow's Eve. 

Maggie Q also had a role in the 2006 blockbuster movie, Mission: Impossible III, with Tom Cruise. Maggie is currently dating Korean superstar Daniel Henney. She has also been romantically linked in the past with Chinese superstar Daniel Wu (for a year, before either became famous).

Saturday, October 04, 2008

Vietnam SMEs facing massive bankruptcy

SME massive bankruptcy impossible?
08:37' 03/10/2008 (GMT+7)

VietNamNet Bridge – The State Bank of Vietnam (SBV), in its September 29 report on loans  to small and medium enterprises (SMEs), affirmed that a massive bankruptcy of SMEs will not occur. However, the conclusion has not been applauded by the Vietnam Association of SMEs.

 

The Credit Department under SBV stated in the report that SMEs have been developing well, while rejecting the possibility of a massive bankruptcy of the enterprises.

 

SBV said that only 3.8% of the 163,673 surveyed SMEs have difficulties, while only 1.42% of enterprises are facing the risk of losing investment capital.

 

The report was released after local mass media quoted experts and associations as saying that many SMEs are in danger of being dissolved due to the policy on monetary tightening, which is threatening the socio-economic development.

 

The report was made after considering the database provided by six state-owned banks, including Vietcombank (which has just shifted to operate as a joint stock bank), 31 joint stock banks, 33 foreign bank branches and joint venture banks.

 

Chairman of the Vietnam Association of SMEs, Cao Sy Kiem, has immediately rejected the survey’s result.

 

“The figure of 3.8% of SMEs facing difficulties is not the accurate figure,” Kiem said.

 

He went on to say that the figure of 3.8% proves to be unreasonable and too low, noting that there are many difficulties for SMEs: the lending interest rate being as high as 21% per annum, the loans being decreased by half as the result of policy on restraining the credit growth rate at 30%, and the input material prices increasing sharply.

 

Kiem also said that it is unreasonable to say that 73.2% of SMEs have been operating at a moderate level, since there are not so many enterprises that can operate in a normal track in such difficult conditions.

 

Regarding the conclusion that SMEs will not see the massive bankruptcy, Kiem said that a lot of enterprises are now at Death’s door, but they do not complain.

 

It is clear that a lot of SMEs cannot borrow money from banks, while it is hardly probable that the enterprises, which could access bank loans, would be able to pay back their bank debts.

 

“What should SMEs do to get the profit high enough to cover the overly high bank interest rates of 20-21% per annum?” he questioned, adding that SMEs have been experiencing a heap of difficulties.

 

Kiem has urged the State Bank of Vietnam to apply a more flexible credit policy, which allows them to continue providing loans to the enterprises, which are facing difficulties so that they are able to survive and develop. Meanwhile, the enterprises which have fallen into decay need to be dissolved soon so that banks can take back money.

 

Kiem said that the association of SMEs is going to make an appeal to the Government, suggesting some points that will help SMEs overcome their current difficulties:

 

First, the Government should allow SMEs that have the potential to develop to delay tax payments. Administrative procedures need to be eased in order to help increase opportunities for businesses.

 

Second, the Government should reserve capital specifically designed for SMEs to be sure that the SME sector can have sufficient capital to run their business.

 

“SMEs have been making up 30-40% of export turnover every year, 40% to GDP, while creating 50% of jobs. Saving SMEs means saving the national economy and settling social security problems,” Kiem said.

Vietnam police crack first money laundering case

Hanoi - Police in Vietnam have arrested two African suspects and are searching for a third in what one senior police officer Friday called the country's first international money laundering case. "This is the first international money laundering case ever found in Vietnam," said Senior Lieutenant Colonel Duong Canh Mai, a senior police officer in the central Vietnamese city of Danang. Mai said police had confiscated 4.1 billion dong (250,000 dollars).

Police said a Danang branch of a commercial bank alerted them to Baggio Carlitos Linska, 37, a Mozambican man who opened two accounts simultaneously. Shortly after the accounts were activated, more than 4.1 billion dong were transferred to them, which Linska immediately withdrew.

Police arrested Linska at Tan Son Nhat airport in Ho Chi Minh City on September 24 as he was preparing to leave Vietnam.

Police said Linska declared the money had been transferred by Massamba Lendebe Elvis, also of Mozambique, who had entered Vietnam with him. Elvis was arrested shortly afterwards in the southern port city of Vung Tau.

According to police, Elvis said he traveled to Vung Tau to open bank accounts in order to receive over 290,000 British pounds stolen by accomplices abroad.

After receiving the money, he transferred 4.1 billion to Linska's account and 3.3 billion dong to Niaty Lokasso Djamaba, a Congolese citizen in Ho Chi Minh City. Police have not yet detained Niaty and do not know where his money is hidden.

The Anti-Money Laundering Information Center of the State Bank of Vietnam opened in March 2007 and has since investigated 20 suspicious transactions. This is the first investigation that resulted in successful arrests.

According to Vietnamese law, using banks to launder money obtained by committing a crime is subject to between three and 15 years of imprisonment, as well as confiscation of laundered property and payment of triple damages.

Friday, October 03, 2008

VietNam logistics infrastructure still lagging


Experts have said that logistics will be a key element to enhance Viet Nam’s competitiveness, as the country is expected to become a hub for both logistics and port operation. However, there are some concerns about the development of this sector. Thanet Sorat, vice-president of V-Serve Group, a leading Thai logistics service provider, spoke with Viet Nam News reporter Ha Phuong about the Thai logistics system and commented on Viet Nam’s situation on the sidelines of the International Logistic Fair 2008 in Bangkok last month.

How do you assess Viet Nam’s logistics system compared to regional countries?

Inland transportation from Thailand through Laos to Viet Nam is still very expensive since double handling is concerned. Thai logistics cost 19 per cent of the GDP (gross domestic product), which is quite high compared to developed countries. However, Thailand’s transportation infrastructure has improved over the last 10 years, since we have the Laemchabang Port, which is ranked the 21st largest port in the world. We also have the new airport, Suwanpumi, which is located in the centre of world transportation.

Based on my opinion of logistical infrastructure, Viet Nam is clearly less competitive than Thailand, Singapore and Malaysia. However, considering that Viet Nam is a developing country with the potential to grow, and that Viet Nam should have high quality labour in the future, I think Viet Nam has the potential to be a major logistics provider in the region.

What can Viet Nam learn from Thailand’s logistics system development?

I think that what Viet Nam can learn from Thailand about the logistics development process is that it takes time to develop, and the country must follow the proverb "Rome was not built in a day" if the Vietnamese seriously want to develop and improve their logistics system.

My point of view is that the Vietnamese Government must pay attention to developing policies to improve supporting areas, such as setting up a road map about how to improve Da Nang sea port into a major port for Indochina. They also have to develop land transportation that connects to the western part of Laos and the southern part of China.

Land transportation and cross border logistics will be supported and helped thanks to the GMS project (Greater Mekong Sub-region), and so the Vietnamese Government has to think of how to develop its logistics through an education system. It is also crucial to improve and facilitate the notion of network building at the international level.

What needs to be done to improve transportation between Thailand, Laos and Viet Nam?

I’ve been able to survey the road from Mukdahan, Thailand, through Laos to Viet Nam, and have seen many areas to improve. V-Serve has developed a project to be undertaken after the survey.

It would be great if Viet Nam’s local authorities could help Thai investors make successful investments, because Thai investors do not know about Viet Nam’s legal system. It is also important that local authorities help Thai investors match up with Vietnamese investors.

I don’t think that my business activities alone can boost border trade, because there are many factors concerned. For example, the number of logistics providers must be sufficient to support demand from Thailand.

If the legal system between countries is friendly and fair, then there will be more people interested in transferring their cargo using this logistics route and the dream of freer borders will become true.

Can you tell us more about the activities of V-Serve Group in Viet Nam?

V-Serve Group, one of the biggest Thai logistics service providers, carries out logistics activities in Viet Nam, mostly in exports. Most cargo exported to Viet Nam is electronics parts and canned food. Most of the transportation is done by sea. However, we are also looking for inland cross border logistics, which can transfer products from Mukdahan Province, Thailand, to Savannakhet in Laos, from where cargo can be transferred to Viet Nam. — VNS

Construction starts on Vietnam’s largest resort complex

Asian Coast Development Tuesday began construction of a multi-billion dollar resort complex in southern Ba Ria-Vung Tau Province, the Canadian property developer said in a statement.

The US$4.2 billion Ho Tram Strip development will feature five integrated luxury resorts and a Greg Norman-designed golf course. The first stage of the resort is expected to finish in 2011.

Asian Coast, partly owned by Harbinger Capital Partners, said site preparation and leveling was being done by local contractor Phu Thinh Construction Investment Joint-Stock Company.

Once construction is in full swing, the development will require up to 4,200 construction workers, most of whom will be sourced from the labor pool of Ba Ria-Vung Tau and surrounding provinces.

ADB-funded expressway to ease traffic around HCMC

The Asian Development Bank (ADB) has approved a US$410 million loan for the construction of a 51-kilometer expressway linking Ho Chi Minh City and Dong Nai Province, it said in a statement Tuesday.

The four-lane expressway, which will be tolled, will start from the junction of the Second Ring Road in District 9 and end at the junction with National Highway 1 at Dau Giay in Dong Nai Province.

This major project includes the construction of a 1,700-meter bridge over the Dong Nai River at Long Thanh in Ba Ria-Vung Tau.

Since the road network around the city was heavily congested, the new expressway would help streamline traffic, the statement said.

It would also cause a “flow-on effect” lessening pollution caused by traffic congestion and reduce accidents, Infrastructure Director at ADB’s Southeast Asia Department, John Cooney, said.

Thursday, October 02, 2008

Vietnam: University engineering graduates willing to be blue-collar workers

Bachelors, engineers willing to be blue-collar workers
16:37' 01/10/2008 (GMT+7)

A job fair in Hanoi.

VietNamNet Bridge – Recruitment fairs held recently by the Hanoi Department of Labour, War Invalids and Social Affairs revealed many of the problems in the labour market in Vietnam.

 

Do Thi Xuan Phuong, Deputy Director of the Hanoi Department of Labour, War Invalids and Social Affairs, said since 2007 the department has organised three job fairs and nine monthly job transaction sessions. These events have enabled employers and employees to find each other and stimulated the healthy development of the labour market.

 

As Hanoi was expanded on August 1, 2008, the city now has 1.6 million working-age labourers. The department will hold more job transaction sessions in Ha Dong city and Son Tay city (belonging to Hanoi) on a quarterly basis besides the monthly sessions at 285 Trung Kinh, Hanoi on the 10th and 20th. From 2010-2011, Hanoi will have weekly and then daily job transaction sessions.

 

Tran Trung Chinh, Director of the Hanoi Employment Service Centre – the organiser of job fairs and job transaction sessions – said the centre has updated more than 20,000 jobs offered by over 8,000 companies on the centre’s website. Each job transaction session attracts more than 5,300 participants.

 

Chinh said employers mainly seek blue-collar workers, accounting for 50% of the jobs offered, followed by technical workers (37%), and college and university graduates (13%).

 

However, job fairs and transaction sessions have revealed a tremendous waste – many bachelors and engineers are ready to work as blue-collar workers!

 

At recent fairs and transaction sessions, employers needed to hire 6,069 college and university graduates, but they actually recruited 7,503. According to Mr. Chinh, the surplus number of employees was ready to work as blue-collar workers.

 

Recruiters called for 17,537 technical workers but they could employ only 4,032. It was similar to the recruitment of workers.

 

The fields of work that needed the highest numbers of labourers are service and trade (43%), mechanics (20%), construction (16%), electronics (12%), transportation (9%). 

Vietnam to get US jobs

Hanesbrands To Cut 8,100 Western Hemisphere Jobs, Shift Output To Lower-Cost Plants

As part of its ongoing consolidation and globalization cost-reduction strategy, Winston-Salem, N.C.-based innerwear, outerwear and hosiery manufacturer and marketer Hanesbrands Inc. has announced it will close nine plants in North Carolina, Central America and Mexico and move production to lower-cost facilities in Asia and Central America. The closures, which have already begun and are expected to be completed by the end of summer 2009, will result in the loss of nearly 8,100 jobs at those plants, impacting approximately 16 percent of the company’s current workforce of some 50,000 employees in more than 25 countries. 

In North Carolina, five facilities are slated for closure including two knit-fabric plants in Forest City and Eden — the last of the company’s US-based large knit-fabric production facilities — as well as two yarn plants in Gastonia and Eden, and a sheer hosiery inventory warehouse in Rockingham. In all, 1,345 positions will be eliminated at those facilities. Textile production will be transferred to existing plants in Central America. 

Four sewing plants will be shuttered in Central America and Mexico including one in El Salvador with 2,600 employees, one in Costa Rica with 1,250 employees, one in Honduras with 1,250 employees and one in Mexico with 1,650 employees.
Most of the production from these plants will be transferred to Hanesbrands’ four new sewing plants in Asia — two in Thailand and two in Vietnam. The company will add 2,000 employees to the current 4,000 at the Asian plants. 

Hanesbrands also expects to begin production in 2009 at a textile fabric facility it is building in Nanjing, China, to provide fabric for its sewing network in Asia. 

“In addition to improving cost competitiveness, these moves will lay the foundation for completing our Asia build out and improve the alignment of our sewing operations with our end-state flow of textiles,” said Gerald Evans, president, chief global supply chain officer, Hanesbrands. “ We regret that employees will be affected by this production streamlining, but our supply chain globalization is necessary to strengthen our overall company and keep us competitive around the world.” 

Affected employees will be eligible for severance benefits and career transition assistance. 

The announced plant closings are the latest in a string of closures and consolidations the company has implemented within its US- and Latin America-based manufacturing operations since it became an independent, publicly traded company in September 2006. Following the closures, Hanesbrands’ US-based operations will include 11 manufacturing facilities — including yarn, small specialty textiles, socks and sheer hosiery — plus corporate and retail operations, and will employ approximately 11,000 people. With the expansions underway in Asia and some additional expansion in Latin America and the Caribbean region, the company will on an ongoing basis maintain a global workforce of approximately 50,000 employees, according to company spokesman Matt Hall. 

October 1, 2008

Vietnam sentences Chinese woman to death for counterfeiting

The Associated Press
Wednesday, October 1, 2008
HANOI, Vietnam: A Chinese woman convicted of leading a major counterfeiting ring in Vietnam has been sentenced to death, a judge said Wednesday.

Guo Jin Hua, 65, of Guangxi province in southern China, was convicted of transporting and circulating fake Vietnamese dong worth US$285,000 at the end of a ten-day trial Tuesday in Tien Giang province, judge Tran Ngoc Quang said.

Along with Guo, a Vietnamese accomplice was sentenced to life in prison and 35 others were given jail terms from two years to 23 years on the same charges, he said.

Guo told the court that the counterfeit money was made in Taiwan and transported to Vietnam via China.

The ring was uncovered in June last year after operating for nearly two years.

Few foreigners have been sentenced to death in Vietnam, where about 100 people each year get the death penalty, many for drug-related offenses.

Malaysia Tops List Of Foreign Investors In Vietnam

HANOI, Oct 1 (Bernama) -- Malaysia heads a list of 40 countries and territories who have invested in Vietnam over the last nine months, following the licensing of its US$9.8 billion project to construct a steel complex in southern Ninh Thuan province.


Quoting the Foreign Investment Department, the Vietnam news agency (VNA) reported that the Malaysian businesses are currently registered to invest in 37 projects worth a total of US$14.8 billion in Vietnam, making up 4.1 percent of the total number of projects and 26.4 percent of registered capital.

The Malaysian Berjaya Land Bhd Corporation has invested US$3.5 billion in a construction project to develop urban areas and universities in Ho Chi Minh City and another US$930 million to build the Vietnam Financial Centre in the city's District 10.

The corporation has also invested US$230 million in projects being implemented in the centre of Bien Hoa city in southern Dong Nai province and US$500 million in projects being carried out in Thach Ban new city in Hanoi.

Construction of the steel complex in Ca Na, which was licensed by the provincial People's Committee on Sept 19, is the biggest foreign investment project in Vietnam so far.

It will be jointly executed by the Lion Corporation and the Vietnam Shipbuilding Industry Corporation (Vinashin).

The Malaysian ambassador to Vietnam Lim Kim Eng praised the investing environment in Vietnam particularly, and said that it has attracted an increasing number of foreign investors including Malaysian businesses.

Malaysian investors have plans to invest in real estate as well as in the construction of hospitals, hotels, banks and production factories, she added.

Malaysian Minister of Industrial Trade and Industries Muhyiddin Yassin paid a visit to Vietnam at the end of last July, accompanied by representatives of large businesses seeking investment and business opportunities

Vietnam eats, sleeps, and dreams on motorbikes

Evidence of “moto” madness: A family of four on a speeding cycle sharing a bucket of fried chicken as they go.

By Patti McCracken | Contributor / October 1, 2008 edition

Watch Video

Contributor Patti McCracken shows the raging river of motorbikes she has to ford to cross a street in Ho Chi Minh City.


Far from the madding ‘motos’: A cyclist, sound asleep on his ride, takes a break.


Ho Chi Minh City, Vietnam

I stood just outside the storefront, leaning against the door frame waiting for a delivery. On the fractured sidewalk in front of me, a man napped on the seat of his motorbike, his arms folded across his chest, his legs draped over the handlebars. Settled into his daytime slumber, he was cocooned from the mad cacophony of the street, where masses of motorbikes tipping with payload, sped about in all directions, dismissive of signs, signals, or even an iota of order.

Looking at him, so unaffected he could nap amid the free-for-all, I was once again stunned by the fantastic bedlam of Vietnam’s “moto” culture; a bedlam that is simply white noise to locals.

I watched as several motorbikes bumped up onto the sidewalk, nimbly dodging the droves of pedestrians and turning this city sidewalk into a traffic feeder lane. Out of the stream emerged a “moto” driver laden with boxes of computer equipment, who wove his way around the napper and the other sidewalk sideshows. He appeared to be driving toward the doorway I was standing in. I was curious, wondering when this driver would stop, or if he would stop. I quickly sidestepped to make room for him as he eased the bike over the threshold, only arriving at a full stop once inside the store. For a foreigner, this was breathtaking. For the Vietnamese, it was a plain-vanilla-ordinary thing to do.

To the Vietnamese, a motorbike is not just a vehicle, but a bionic limb. A magic carpet. A personal jet pack, able to propel them from their living rooms (where many park their bikes) to any doorstep. Legs and feet are backup forms of transport, used only as a last resort.

And packs of motos swarm through the streets and onto the sidewalks, weaving and honking, dodging and turning, often hulking with the likes of plate glass, doors, household appliances, and even amusement park props in tow.

The number of motorbikes continues to rise in Vietnam and there are now nearly 20 million of them, according to the World Bank. Ho Chi Minh City (formerly Saigon) has 3 million – about one motorbike for every two people in the city. By far, the largest portion of vehicles on the roads of Vietnam are “motos,” which are small engine – 50cc to 400cc – motorcycles.

• • •

I had my first extended stay in Vietnam more than three years ago. Day after day, I’d watch – through taxi windows – the dizzying theater of street traffic. From my backseat perch, I’d jot notes to myself about the two- and three-wheeled vehicles minnowing around me, heaving with cargo – coconut-laden rickshaws; old bicycles bulging with baskets of raw meat; cyclo drivers pedaling oversized spools of cable wiring; and motorbike after motorbike weighted down with six-foot bookcases, stereos, refrigerators, extension ladders, TVs, bushels of skinned chickens, plastic barrels of live fish, and rings of rubber tires.

These superheroes of delivery would transport items the size of small buildings on nothing bigger than a Vespa. Cars can barely crawl along the clogged city streets, but the river of motos and makeshift vehicles flow speedily around them. From my view inside the taxi, I felt like an onlooker who’d been plopped down into the middle of a parade.

A US State Department warning reads like an all points bulletin, cautioning Americans against murderous motorcycles on the loose: “The traffic moves on the right, although drivers often travel against the flow. Horns are used constantly, often for no apparent reason. Outside the cities, livestock compete with vehicles for road space. Drivers do not follow basic traffic principles and there is little adherence to traffic laws … most Vietnamese ride motorcycles; often an entire family rides on one motorcycle.”

Near the end of those first weeks in Vietnam, my interpreter, Mr. Thien, convinced me it would be OK to catch a ride with him on his moto.

“It’s raining. And it’s only two streets,” he said. “Don’t worry, I drive slowly.”

I climbed on and gripped his shoulders. Before Thien had driven half a yard, we were front-ended by a moto making a turn into oncoming traffic. It was nothing more than a kiss of wheels, and both drivers nodded respectfully at each other before the second driver sped off, soldiering into the surge of oncoming vehicles.

“It’s OK, it’s OK,” said Thien, trying to reassure me. My grip tightened considerably.
Although the cities rack up a considerable number of collisions, the country’s highways are even worse. (Eighty percent of the world’s traffic accidents take place in Southeast Asia, according to the World Health Organization.)

Yet, the Vietnamese seem unfazed. Their madness for motos remains, along with their kamikaze abandonment of road rules and safety. Late last year, a law mandating the use of helmets went into effect. Before then, seeing a helmet here was like spotting an alligator in the Arctic. And although citizens comply with the law, there remains an aversion to wearing helmets. Which is why they’re mockingly called rice cookers.

• • •

Since that first visit to Vietnam, I’ve returned several times. In June, I walked out of my hotel one afternoon to find an Australian guest sitting on the steps, staring out at the street.
“Interesting, huh?” I said, recognizing his traffic reverie.

“Unbelievable. Unbelievable,” he said. “I had plans to go out tonight, but, I’m not going anywhere. I’ve been sitting here for more than an hour and I just can’t take my eyes off it.”

I scuttled on past the dumbstruck Australian and handily flagged down a moto taxi driver. He revved his engine, popped up onto the sidewalk and braked at my shoes. His toe-front service meant he was extending his superpowers to me, ensuring I wouldn’t have to take one single extra unnecessary step. I got on, strapped my “rice cooker” across my chin and we were off.

I don’t know where it came from, this willingness to lob myself into the frenzied fray. But it happened on my second trip to Vietnam, when a late-night ride home was offered by a fellow journalist. It seemed rude to say no. And too touristic and foreign and fearful to call for a cab, yet again. And the chorus of locals egging me on sealed the deal. “Don’t be scared! We take care of you!” they shouted.

And soon I felt relieved to be free of the cluttered sidewalks where eating, card-playing, boozing, dealmaking, daydreaming, schmoozing, repairing, canoodling, sleeping, hair-cutting, and gossiping take place.

On foot I felt like a trespasser in a supremely crowded living room. On wheels, I began to loosen my grip. My posture softened. No longer bracing against the current, my spot on the back of the moto felt like the eye of the storm. I began to take motos whenever possible. I crisscrossed the city on moto taxis, just one more piece of cargo being ferried through town. This was it for me. I was joined with the masses. Me as we.

Zipping along, I watched as fellow motorbikers clipped past me. I began to note with pad and pen, there on the back of the bike, what I saw in motion: a family of four on a moto passing around a bucket of fried chicken, a stack of funeral wreaths being hauled, a driver with a huge bucket of live shrimp sandwiched between his legs.

I shot video while my driver u-turned into oncoming traffic on a bridge, then rewound to look at the footage, while other motos whizzed so close I had to squeeze in my knees.

Looking back, I’m alarmed at the danger I put myself in. Being bionic by proxy involves more than a little risk.

Now, propped on a mantel in my office half a world away, is my helmet. Every now and then I take it down and try it on, showing it off to friends and telling them stories of the road. Me and my superhero costume, nestled safely at home.

Wednesday, October 01, 2008

Lots of SMEs for sale in Vietnam

18:57' 30/09/2008 (GMT+7)

VietNamNet Bridge – TigerInvest, a merger and acquisition (M&A) brokerage company, said it has received 670 offers to sell businesses so far this year, while the figure was just 300 last year.

 

According to TigerInvest, it seems that more and more business owners want to sell the businesses they took great pains to build up to foreign investors as they have become financially exhausted.

 

Two months ago, the director of a small private-owned business in the northern province of Hai Duong came to TigerInvest, offering to sell his business at VND70bil.

 

The workshop could not become operational after the construction finished earlier this year, as the company could not borrow money from banks to purchase input materials.

 

The director was not the only client of TigerInvest. Prior to that, another director came with the same offer. He wanted to sell his workshop, equipment and business after injecting in VND25bil he borrowed from friends and banks. If a bank had foreclosed on the workshop he would have become penniless and would not have had money to pay back his friends and relatives.

 

ICE, another business trade company, said that it receives 3-5 requests to bridge business sales and purchases a day.

 

The number of businesses trying to sell themselves seems to be increasing, though most of the cases will never be made public as per request of the sellers.

 

A lot of enterprises have been falling into financial difficulties in the last five months since the application of the tightened monetary policies.

 

Statistics from the State Bank of Vietnam show that the credit growth rate decreased sharply to 16.78% in mid September from the highest peak of 54% last year.

 

Pham Xuan Can, Director of TigerInvest, said that businesses’ profit must be as high as 40% to be high enough to bear the lending interest rate of 21%.

 

“40% proves to be unfeasible. As a result, businesses dare not borrow money,” Can said.  “A lot of enterprises have to sell their businesses, or close their doors temporarily.”

 

Small- and medium-size enterprises, which account for 90% of the total 300,000 businesses in Vietnam, and provide jobs to 50% of the labour force, are suffering the most.

 

Cao Sy Kiem, Chairman of the Vietnam Association of Small- and Medium-size Enterprises, said that 20% of its members have reported they will halt or scale down production due to capital shortages.

 

Kiem’s words have been proved by an independent survey conducted by the Vietnam Chamber of Commerce and Industry recently, which showed that most businesses find it difficult to borrow money from banks.

 

Nearly 30% said that they could borrow 25% of the capital needed, 33% said that they could borrow 50%, 26% said they could borrow 75%, and only 10% said they could borrow all of the money they wanted.

Foreign giants take over maritime sector in Vietnam

Hanoi (VNA) – Leading international marine giants are investing heavily in Vietnam ’s seaports, but there are muted concerns that they hold too much power and could ultimately harm the interests of traders. 


In the Southern Key Economic Zone, foreign investors pumped money into the construction of 10 large container ports, slated to begin operations from 2009-2010, reported the Vietnam Seaports Association (VPA). 

Investors include the Hong Kong International Terminals (HIT) of China , SSA Marine of the United States and France ’s CMA-CGM Group. 

In 2006, the Dubai World Corporation, the second largest marine terminal operator in the world, began building a deep-water port near the Hiep Phuoc Industrial Park in Nha Be district, earmarked to be one of Ho Chi Minh City ’s main shipping routes. 

In addition, some 20 overseas enterprises are looking into invest in the Cai Mep – Thi Vai Seaport in southern Ba Ria – Vung Tau province as joint ventures or wholly foreign-invested firms. 

Overseas giants are deepening their interests in large seaports in the country, making the most of their superior financial power, world-class experience and management skills. 

Ho Kim Lan, the VPA general secretary, said: “Many big domestic firms have conceded management rights to international giants in joint ventures, as they mainly contributed land.” 

The association predicted that by 2010 foreign investors would still only hold a stake of no more than 45 percent in each joint venture, but that their management power would reach around 56 percent. 

According to VPA, most of the small seaports are owned by local companies, while overseas businesses hold stakes in large ones. 

Economists say foreign interest is good for Vietnam ’s ports industry and the economy in general. 

While domestic firms lack capital and experience, powerful overseas giants will be able to speed up development of the national port system, turning them into world-class facilities capable of attracting lucrative customers. 

The sector has witnessed annual growth of around 20-25 percent. 

However, the sector faces some difficulties, according to Lan. “Marine transportation account for a mere 10 percent of the total goods moved in and out of the country.” 

At present, the average terminal handling charge is 65 USD for 20-foot container and 98 USD for a 40-foot container, according to Lan. 

VPA worries that foreign companies could collude together to fix rates. Nevertheless, competition between local and international port operators should limit any price rises, said Lan.-