Vietnam Tonight

In Vietnam, Traveling an Unlikely Beer Trail

2010-02-18T06:03:00.000+01:00

By RUSS JUSKALIAN

THE setting could have been any typical Central European beer garden. There were long rows of wooden tables stained in dark, rich hues; half- and full-liter beer mugs hanging from metal racks; and two beautifully crafted brass decoction tanks used for mashing traditionally brewed beer. But on this warm afternoon in November, I wasn’t in Plzen, orMunich, or Bruges. I was at the Hoa Vien Bräuhaus in Ho Chi Minh City, Vietnam.

The humid air buzzed with conversations in melodiously tonal Vietnamese. This, too, surprised me. Considering that Hoa Vien’s founder is an honorary consul of the Czech Republic (that is, a noncareer diplomat), I had envisioned throngs of expatriates knocking their glasses together. But the crowd was made up of young Vietnamese men in slacks and button-down shirts — lanyards with key cards still dangling around their necks — and couples chatting under large, shady trees. All part of Vietnam’s growing generation of hip, young professionals.

At the beginning of a beer odyssey through this long, slender country, I savored the unexpectedness of it all as I sipped two draft brews made on the premises, carrying Hoa Vien’s Hoavener label. The crisp, freshly poured bia vang (yellow beer), what we would call a golden lager, had a bitter hops flavor somewhere between a typical Czech pilsner and a Munich-style lager. The bia den (black beer), a dark lager, was more intensely bitter, and had just enough bite to balance a beautiful malt-caramel flavor. Both were wonderful.

For the first-time visitor to Vietnam, the variety of local and regional beers can be surprising. It seems each city has a beer named after it (Bia Can Tho, Bia Thai Binh, Bia Saigon, Bia Hanoi, Bia Hue, and so on), and the best of the bunch depends on whom you ask and where you’re asking. But in recent decades, Vietnamese beer culture has morphed, adopting traditional European styles as well as embracing a uniquely ephemeral home-grown brew called bia hoi. The latter is so popular that to many of the roughly four million people who visit Vietnam each year, drinking bia hoi on the streets of Hanoi is as emblematic of a trip to Southeast Asia as ordering pad Thai in Bangkok.

Ho Chi Minh City is home to a handful of European-style microbreweries, most of which are centrally located in District 1 and some of which claim to brew their beer according to the Bavarian purity law known as the Reinheitsgebot. This trend took off in 2001 when Hoa Vien, which had previously been importing Pilsner Urquell, built a Euro-style brewery inside the restaurant with the help of experts from the Czech Republic. Other breweries followed, trying to tap into a domestic beer culture that stretches back at least to the 1890s (that’s when the Habeco brewery, now state run, was founded by French colonialists), was revitalized during the Vietnam War in the 1960s, and currently produces more than 2 billion liters of beer a year.

The European influence was visible at two other pubs I visited in Ho Chi Minh City. Nguyen Du Brauhof, a small open-air restaurant, served Adler Bräu beer alongside German dishes like schweinshaxe and traditional Vietnamese fare like eel. And across the street from the Ho Chi Minh Municipal Theater, not far from Graham Greene’s old haunt the Continental Hotel, the Lion Brewery & Restaurant resembled a giant Munich bierhalle — complete with wall-size murals of Oktoberfest revelers in lederhosen and dirndls.

Heading north from Ho Chi Minh City, I flew to Nha Trang, Vietnam’s most popular coastal resort town. The typhoons that had devastated the Philippines last fall had obscured Nha Trang’s beach under waist-high drifts of tree parts and human-made jetsam, but the Louisiane Brewhouse, nestled beneath undamaged palm trees on the southern sweep of Nha Trang’s main drag, just an arm’s length from the sand, was open for business. Here was a place, I had heard, where beer influences collided: classic Northern European styles transformed by Southeast Asia’s tropical flavors.

I first ordered a Crystal Ale draft, a top-fermented beer made with passion fruit and local rambutan, a tropical fruit similar to litchi. It tasted faintly of honey, matched with floral highlights and a mild bitter finish. Next, I had a Passion Fruit Witbier draft, a slight twist on a Belgian classic. The witbier base itself was made with a mixture of local and imported wheat grains, and a gruit, or flavoring base, consisting of local coriander and orange, and imported hops. The resulting beer, served with a slice of lime, reminded me of the Portuguese wine vinho verde with a spicy kick of coriander. An excellent match for freshly caught seafood.

No beer tour to Vietnam would be complete without heading to Hanoi to sample the ultimate people’s beer, bia hoi. Consumed in frightening quantities by everyone from Vietnam’s newly rich to its hard-working street vendors, bia hoi, sometimes called fresh beer but literally meaning gas beer, is an unpasteurized, unpreserved brew made before the sun rises, and often imbibed before the sun sets. All throughout the day, motorcycle deliverymen can be seen carting the grog around in everything from 100-liter drums to smaller plastic jugs. Much of it comes from three huge breweries, but scores of smaller mom-and-pop operations flourish as well.

Walking around Hanoi’s narrow, warrenlike streets, one sees bia hoi joints on just about every corner — with locals quaffing the low-alcohol brew (2 to 4 percent) as early as 8 a.m., after which time, some locals say, the peak flavors are already in decline. The décor at these places is a remarkably consistent mash-up of the children’s section of Ikea and the ultimate in street-life voyeurism: stands of shin-high plastic tables crammed right up to the curb and matched with semicircles of knee-high plastic chairs, all facing the road. Food venders are always nearby hawking the perfect complement to a tipsy evening: grilled meats, dried squid, pork buns, noodles.

The best bia hoi places in Hanoi serve a crisp, cold beer with a clean taste suggesting rice and an almost subliminal whisper of something like hops. Daytime visits to these chatty, casual settings are a great way to strike up a conversation with a local resident. But at night, patrons at many of the locals-oriented spots may be too consumed with their conversations to notice a wandering tourist.

I sampled some of the freshest bia hoi in the city at 22 Hang Tre and 19C Ngoc Ha Streets, respectively, during the day. In both places the beer was low on bitterness, light, and had subtle notes of straw and rice — a world apart from the double I.P.A.’s, imperial stouts and other high-alcohol, high-impact beers popular with American craft brewers. I opted to spend the bulk of my evenings at the intersection of Luong Ngoc Quyen and Ta Hien Streets, a busy confluence of foreign tourists and English-speaking Vietnamese known informally as bia hoi corner.

THE beer at bia hoi corner is from a small local brewery, and varies in quality by the batch. At 3,000 Vietnamese dong (roughly 16 cents) a pint, it is so inexpensive — “cheaper than water,” a gregarious Vietnamese man told me — that locals know to buy a single drink to test the day’s offering before deciding whether to stay. They also know that the beer is just one aspect of what makes socializing at one of these places, filled with an eclectic spectrum of people, so much fun.

One night I had a conversation about the American electoral college with a 26-year-old Vietnamese chemical engineer dressed in chic slacks, a button-down shirt and designer glasses; the next day I traded New York City dining tips with a former sushi chef from Queens.

After my last hot day in Hanoi, which included a visit to Ho Chi Minh’s mausoleum, I finally came to a stop at bia hoi corner. Sitting in a Lilliputian plastic chair by the curb, I watched street vendors sell mangoes from baskets balanced across their shoulders on bamboo poles, motorcycles overloaded with passengers and goods weave through the traffic, and the occasional young girl and her grandmother going for an early evening walk in pajamas and flip-flops.

Pretty soon I would be braving the crush of Hanoi’s traffic myself, stuck in an overcrowded shuttle on the way to the airport. After experiencing Vietnam’s pleasantly vibrant beer culture, I was in no rush to pack my bags.

IF YOU GO

HOW TO GET THERE

There are many airlines flying between Kennedy Airport and Ho Chi Minh City or Hanoi. Many of the itineraries have two stopovers. A recent online search found round-trip flights in March to Hanoi starting at $1,228 on Cathay Pacific, and flights to Ho Chi Minh City starting at just over $1,000 on Air China and at $1,140 on Cathay Pacific.

Vietnam Airlines (vietnamairlines.com), Air Asia (airasia.com) and Jetstar (jetstar.com) offer cheap domestic flights. Popular routes can fill up quickly.

WHERE TO GO

In Ho Chi Minh City:

Hoa Vien Bräuhaus (28 bis Mac Dinh Chi Street, District 1; 84-8 3-829-0585; hoavien.vn)

Nguyen Du Brauhof (98 Nguyen Du Street, District 1; 84-8 3-822-6891)

Lion Brewery & Restaurant (11C Lam Son Square, District 1; 84-8 3-823-8514)

In Nha Trang:

Louisiane Brewhouse (Lot 29, Tran Phu Street; 84-58 3-521-948 or 84-58 3-521-831; www.louisianebrewhouse.com.vn)

In Hanoi:

Many bia hoi joints are known simply by their address — or even the intersection they inhabit. New ones pop up, and old ones close or relocate. But wander around Hanoi for a few minutes and you will see locals sitting on undersize plastic chairs drinking straw-colored beer at any time of the day.

Bia hoi corner (Luong Ngoc Quyen and Ta Hien Streets) is a central gathering place. For some of the freshest, best tasting bia hoi in the city, try:

19C Ngoc Ha Street (Ba Dinh District). Catering to an upper-class Vietnamese crowd, this is a great place to get an afternoon beer after waiting in line to see Ho Chi Minh in his casket — since Uncle Ho’s mausoleum is literally just out back.

22 Hang Tre Street (Hoan Kiem District). Another bia hoi joint — or two, it occupies both sides of the street — just off the main tourist drag, but totally off most tourists’ itineraries.

Destination Vietnam - From the Mekong River Delta to Ha Long Bay

2009-10-27T02:24:00.000+01:00

By Samantha Berkin

Fortunately, the present-day experience of traveling from South Vietnam to North Vietnam is not at all like it was during our parents' time. Instead of fighting from a swift boat in the Mekong Delta, you can now be enjoying cheap beer on a luxury liner. You can even make silly television shows about making the entire South-to-North trek on underpowered motor scooters in the rain.

Either way you look at it, the experience is, shall we say, a lot safer. This is even true if you are stupid enough to be taking a scooter into Vietnam traffic as an inexperienced Westerner, but just barely so.

Vietnam is a stunning country with rich history, beautiful, powerful scenery, and it is a good value destination on top of that. It is also popular as a destination for some of the older crowd. There is a generation of tourists out there, freshly retired, who want to visit the country under more favorable circumstances than they did in the past, people who want to choose to visit the country rather than be forced to do so.

Starting in the South, cruising the Mekong River is a popular place to start. Many travelers choose to start in Cambodia and cruise down the river before disembarking outside Ho Chi Minh (Saigon for all you old-schoolers out there) and taking a bus in. Another highlight of a trip in the area can be taking the Cu Chi tunnels into the city instead. The Viet Cong dug this nearly 200 kilometer-long network of tunnels to infiltrate American camps in Saigon during the war.

Ho Chi Minh City is a bustling, modern city, and the most populous one in Vietnam. It is also a traffic nightmare, as well as an excellent place to go shopping and pick up some trinkets for the folks back home. Don't forget the Presidential Palace and possibly a visit to the War Remnants Museum while staying here.

Next on the list of places to see would have to be Nha Trang, consistently ranked as one of the top beaches in Vietnam, as well as one of the most beautiful bays in the world. The scuba diving in particular is making this a huge backpacker destination. More and more, however, the big tour companies are also catching on to this fact. Just check out a comparison of Vietnam tours, browse around, and you will find that many of these tours include Nha Trang. Additionally, it was the site of Miss Universe 2008, and will play host to Miss World 2010. Not my thing, to be sure, but for some, I guess this is an attraction.

Most people do not have forever to dilly-dally in Vietnam, so for the next major attraction on the list, we are going to have to jump all the way forward to Hoi An, home to numerous small museums concerning the history and culture of the region. This ancient town has been remarkably well-preserved over the years, well enough for the area to be recognized as an UNESCO World Heritage Site. It is a traditional South-East Asian trading port.

Hue is another great ancient city with an amazing amount of monuments . This was the Royal City, the ancient capital of Vietnam. The "Pass of the Ocean Clouds" is supposed to be an unforgettable drive. Our imaginary itinerary next takes us to Hanoi, the capital and second largest city of Vietnam. Hanoi has been a city for nearly 1000 years, and this has necessarily left its mark on the area. If you want culture, history, urban tourist attractions, and the like, the city is definitely a must-see.

Of course, the true must-see destination of Vietnam, and where we will end our journey, is Ha Long Bay. This site should be recognizable to backpackers, seasoned world trekkers, and even those armchair travelers out there whose idea of travel is watching an old VHS flick on the tube television. This was where the young couple floated around for days in Indochine (an amazingly beautiful movie, which I highly recommend, by the way.) In more recent times it was highlighted in Tomorrow Never Dies, one of the forgettable Pierce Brosnan Bond films.

Beyond all that, it is shockingly beautiful. The landscape is utterly surreal, with over 2000 small limestone islands erupting from the placid jade waters. A complex of grottos and caves, mountains and beaches, floating fishing villages and spectacular sunsets should enthrall you. Silently, you mourn the fact that you must inevitably return from this island paradise to the drudgery and office politics of the paper company you work for in Scranton.

I'm a world traveler and recent Columbia University graduate. I'm looking to share some of my experiences/tips with others so they can discover their next perfect trip. I'm a little older than your usual graduate, because I took gobs of time off to travel extensively!

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Australian Mining Technology Cos Seek To Invest In Vietnam

2009-05-12T06:36:00.000+02:00

HANOI -(Dow Jones)- Representatives from 15 Australian mining technology firms will visit Vietnam later this month to seek investment opportunities in the country's mining industry, Vietnam's Ministry of Natural Resources and Environment said Monday.

During the three-day visit starting Monday, the delegation will hold talks with state-run Vietnam National Coal-Mineral Industries Group and visit the Sin Quyen Copper Mine and Tang Loong Copper Refining Plant in the northern province of Lao Cai, the ministry said in a statement.

The delegation will introduce their mining technologies and services to mining firms in Vietnam, the ministry added.

-By Vu Trong Khanh, Dow Jones Newswires; 844 35123042; trong-khanh.vu@ dowjones.com

Standard Chartered: Vietnam makes it a different year

2009-04-23T02:43:00.001+02:00

08:28' 22/04/2009 (GMT+7)

VietNamNet Bridge - That the Vietnamese economy is showing several positive signs was what Standard Chartered revealed in its latest report entitled “Vietnam-what a difference a year makes”.

In the report released by the bank in mid-April, the Head of the Southeast Asia Research Department, Tai Hui, said that the trade balance in Vietnam is steadily swinging from a deficit to a surplus.

For the first quarter of 2009, Vietnam ran a trade surplus of 1.6 billion USD, compared to a deficit of 8.4 billion USD in the same period last year.

“This was the result of a collapse in imports, which was partly driven by a rapid decline in commodity prices, in particular of steel and petroleum products,” Tai Hui added.

He stated that when Vietnam’s first oil refinery starts production later this year, the country should be better protected from rising oil prices.

Another positive sign came with exports increasing by 25.9 percent in February and 12.9 percent in March after shrinking for three months between November 2008 and January 2009, said Hui.

Inflation remains on a downward trend, dropping to 11.2 percent in March, the lowest since December 2007, after peaking in August 2008 at 28.3 percent.

The senior economic expert forecasted that inflation could drop to a single digit by the second half of 2009 if oil and food prices remain stable.

“The gloomy global sentiment has yet to be seen in local consumption as domestic retail sales have maintained a decent momentum in recent months. Even after adjusting for inflation, real retail sales have been broadly expanding,” Hui said.

“Surprisingly, the global economic slowdown has yet to hurt foreign direct investment (FDI),” emphasised the economist.

Official figures show that the country attracted 6 billion USD of pledged FDI in the first quarter of 2009, slightly higher than 5.2 billion USD recorded in the same period last year.

In his analysis, Hui attributed the State Bank of Vietnam’s (SBV) prompt monetary policy for the U-turn in the economy 12 months ago.

Trade deficits reached up to 9 percent of gross domestic product in the first quarter of 2008 and inflation culminated at 28.3 percent in August of that year.

In response to capital outflows and rising inflation, the SBV raised its base rate aggressively in 2008 to 14 percent by the end of the second quarter of that year from 8-7.5 percent at the start of the quarter.

By the third quarter of 2008, the trade deficit seemed to have been brought under control and the increase of the consumer price index had slowed down.

In this situation, the Government was quick to reverse its monetary tightening, reducing the base rate to 7 percent in early April 2009 from 14 percent in September 2008. Meanwhile, the authorities also permitted the VND to fall further against the USD. Since the end of September 2008, the VND has dropped by 7 percent.

The Government has announced various fiscal measures to support economic growth, including interest subsidies and tax deferrals.

In the report, Standard Chartered remained constructive in its medium-term outlook for Vietnam while 2009 is still a year of great challenges for the domestic and regional economy.

“Several structural factors will drive the country’s development, some of which will still be at work even as growth in the advanced economies weakens”, Hui said.

Standard Chartered experts forecast that Vietnam’s purchasing power will double in the next 6-7 years, after taking into account the growth of other Asian economies.

Vietnam, due to its stable political environment and low production costs, is often regarded by Asian businesses as a good alternative, said the report.

“The experiences of other Asian economies often serve as an example to policy makers in Vietnam as they determine the most appropriate approach to facilitating growth. The domestic market turmoil in the second and in third quarter of 2008, as well as the global financial crisis, demonstrates that the authorities are quick to learn and adapt, in our view,” the report made it clear.

Standard Chartered retained its previous forecasts of the Vietnamese economy growth at 4.2 percent in 2009 and 5 percent in 2010.

“While this may be low from a domestic standpoint, it is a respectable performance from a regional perspective,” concluded Hui.

Where is Vietnam Headed in 2009?

2009-01-14T04:31:00.001+01:00

by BARBARA CROSSETTE

January 12, 2009

The three-day Tet festival is approaching in Vietnam, the climax of a long season of celebrations that began with the enthusiastic embrace of Christmas in mid-December. In the southern city that residents still call Saigon, parks and boulevards have been festooned with colorful lights, and Christmas carols drifted over restaurants, hotel lobbies and department stores with their resident Santas.

On the surface, the "American" war that ended more than three decades ago seems to have left no traces here. But in the hearts and minds of those who suffered the war and survived to remember it, there is pain. Tet is a time for reflection, and there are some conflicted emotions about where Vietnam is headed in the new year.

It is not only that the spectacle of affluence and materialism, even in tough economic times, and the love affair with things Western seem jarring to a revolutionary generation that gave their all to a cause, losing relatives and friends, often to unmarked battlefield graves. There is also, especially in the south, unease and disappointment that a unified Vietnam has not lived up to its considerable potential. Despite nearly two decades of economic liberalization, the Vietnamese see their country stagnating under the heavy hand of excess government regulation and censorship, and watch politicians squandering the country's economic gains on corruption.

The start of this long holiday season coincided with a suspension of Japanese development assistance after the discovery of a multimillion-dollar bribery scheme that diverted aid funds from Japan, until now Vietnam's largest donor. A reporter from a leading newspaper said journalists have been told to stop dwelling on this. Two reporters were arrested last year for writing about the skimming of aid from not only from Japan but also the World Bank. One journalist is in jail and the other in re-education. The reporters, Ngyuen Van Hai of Tuoi Tre and Nguyen Viet Chen of Thanh Nien, were convicted of "absuing democratic freedoms." (Human Rights Watch has a new report, Vietnam: Stop Muzzling the Messengers, on these and other cases. Colleagues say that the reporters had inside government sources, but that did not save them or their editors. The government, which retains the right to appoint news managers, dismissed the editors of the two newspapers involved. The popular, daring and profitable daily Tuoi Tre saw its editor replaced in December for the third time in two years by ever "safer" government appointees; in early January the editor of Thanh Nien was sacked.

In Danang, a publishing house was shut down in December and two top editors fired for printing "mistakes." Internet users are regularly harassed and occasionally arrested. It is estimated that nearly a quarter of Vietnamese use the Internet to post blogs and share information. Among the bloggers are schoolchildren as young as 11 or 12 who have home computers or frequent Internet cafes, which the government polices clumsily. It may be a sign of a losing battle that new regulations on Internet use have been recently published in an effort to contain the impact of the cyberworld. At the same time, newspapers and other publications are racing to create English-language Web sites to give their reporting wider exposure.

Among students, academics and, above all, journalists, critics are becoming astonishingly outspoken. In a recent seminar of professors and university administrators (some of them retired from careers in the West), speaker after speaker told of chafing under political restrictions imposed from Hanoi. The message heard again and again from participants was that the government should understand that free speech and access to information were prerequisites of human and economic development. A university president, asked how she had managed to gain so much intellectual space for her faculty, declared boldly, "I don't get given autonomy; I take it."

In southern Vietnam there are other grievances beyond those of the classroom and newsroom. Residents of Saigon, officially renamed Ho Chi Minh City three decades ago, complain that more than three-quarters of the earnings of this dynamic, outward-looking metropolitan area are siphoned off by the central government and southerners get very little in return. A recent survey by a British consulting company ranked Saigon 150th among 215 large cities worldwide in quality of life, well behind neighbors such as Singapore, Bangkok and Kuala Lumpur, against which this city should be more competitive. On a scale of 1 to 10, the English-language Viet Nam News reported, Saigon got a zero for the quality of its water, and some hospitals were found to have two or three patients sharing one bed.

Every enterprise and voluntary association gets bogged down in layers of licensing requirements. Trade groups, chambers of commerce and construction companies say publicly that new ventures may face as many as thirty-three time-wasting procedures, frustrating would-be investors.

Among intellectuals there is enormous interest in a new book from Vietnam's most popular dissident writer, Duong Thu Huong, author ofParadise of the Blind and other works of fiction critical of enduring nationalist myths.

The new book, just published this month in Paris and titled in French Au Zenith, is a thinly veiled and not complimentary novel about the national hero, Ho Chi Minh, the founding father of modern Vietnam and an off-limits subject here. Newspapers have been warned not to touch the story, but copies or excerpts of Huong's book in French and Vietnamese began to circulate on the Internet even before its publication.

Huong, who is from Hanoi and was once an active communist cadre, turned against the regime, as did other intellectuals in the north, on learning after unification that much of the propaganda they had been fed about life in the south was untrue, and that Hanoi's army was killing not only Americans but also fellow Vietnamese. For more than two decades northerners have been exploring this theme of official wartime deceit in books, poetry and film.

When Huong, whose works are banned in Vietnam, was asked, at a rare appearance in New York in 2007 sponsored by American PEN, why there was not open revolt in Vietnam, she said there were several reasons, among them that the Vietnamese had a history of fighting outsiders and no tradition of internal conflict--thus the shock at learning how many southern Vietnamese were dying in the "American" war. She also said bluntly that the Vietnamese are ruled by backward-looking leaders whose pride in winning a war against the United States--a pride widely shared--has never been augmented and updated with a compelling postwar vision for the country. The leadership has survived for thirty years "on corpses," she said.

Meanwhile among the young, the majority of Vietnam's population, there is a deep, if blind and unrealistic, belief in the West, encouraged by theViet khieu, or overseas Vietnamese, who return with money to spend on homes and goods that local people without connections cannot afford. In recent years, European designer boutiques have supplanted Vietnamese stores in downtown Saigon, where characterless contemporary architecture is in vogue. A huge shopping mall topped with luxury apartments and a hotel is under construction, covering a full city block of prime real estate from Nguyen Hue boulevard to Dong Khoi, the former Rue Catinat.

The complex is called Times Square.

About Barbara Crossette

Barbara Crossette, United Nations correspondent for The Nation, is a former New York Times correspondent and bureau chief in Asia and at the UN.

She is the author of So Close to Heaven: The Vanishing Buddhist Kingdoms of the Himalayas, published by Alfred A. Knopf in 1995 and in paperback by Random House/Vintage Destinations in 1996, and a collection of travel essays about colonial resort towns that are still attracting visitors more than a century after their creation, The Great Hill Stations of Asia, published by Westview Press in 1998 and in paperback by Basic Books in 1999. In 2000, she wrote a survey of India and Indian-American relations, India: Old Civilization in a New World, for the Foreign Policy Association in New York. She is also the author of India Facing the 21st Century, published by Indiana University Press in 1993.

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Vietnam Opens Wider For Business

2009-01-02T04:54:00.001+01:00

Oliver Massmann and Giles T. Cooper, 12.31.08, 12:00 AM EST

With new 2009 trade rules, it's the year to invest.

On Jan. 1, Vietnam opens its retail sector to wholly foreign-owned investments according to its World Trade Organization obligations. Lucrative opportunities await in Asia's new No. 1 retail market.

Times are changing in Vietnam's capital city. While tourists from all over the world are still flocking to Hanoi's picturesque market stalls, the heart of daily life is no longer confined to the old merchant quarters. Western-style shopping malls are popping up overnight, and they are attracting high-end retailers from the U.S. and Europe.

Vietnam officially joined the World Trade Organization (WTO) as its 150th member on Jan. 11, 2007. The WTO requires that tariff regulations, trade rights, national treatment and most-favored-nation treatment be incorporated into domestic law. Essentially, trade barriers must be torn down and the Vietnamese market opened to other WTO members.

Although Vietnam has taken solid steps to restructure and meet these requirements, challenges for foreign investors remain. The economy is still in a developmental phase, relying heavily on traditional sectors such as agriculture.

At the same time, it is leapfrogging other Asian markets in retail thanks to rapidly growing consumer demand and low barriers to market entry. According to a 2008 ranking by consultants AT Kearney, India has yielded its position as first in "retail investment attractiveness" and fallen to second behind Vietnam, formerly in fourth. Russia and China dropped to third and fourth respectively. While the retail outlook in the U.S. is grim, Vietnam provides corporations with an alternate growth strategy.

As Vietnam strives to emulate a Western standard, transitioning from a socialist system to an internationally integrated market economy is a bumpy process. One WTO requirement is to end import tariffs that had been imposed to protect local businesses against foreign competitors. The country has been reluctant to adapt this rule in the case of agriculture, given that entire villages depend on it as a main source of income.

The 2006 Law on Intellectual Property, by comparison, has been better received. Recent high-profile trademark infringement cases represent remarkable progress.

Vietnam Tourism Sector Seeks Luxury Travellers during Economic Crisis

2009-01-02T04:52:00.001+01:00

According to the International Luxury Travel Market (ILTM), the Vietnamese tourism sector should focus its energies on the luxury market with figures during the current economic crisis indicating that the top 3% of tourists are spending 20% of total tourism expenditure.

The top 3% of tourists represent a significant segment of the Vietnamese tourism market as they have an average spend of approximately $5000 compared to tourists normal average spend of around $750.

Luxury travellers have been placed in the enviable position of being able to demand nothing short of the most thrilling and unique experiences and personal and confidential service during their holidays in Vietnam.

Ha Pham, founder and CEO of the Luxury Travel Company said that Vietnam has the potential to develop into an upscale destination, where products and services must be created to cater for the niche market rather than “sell the same tourism products since 10 years ago”.

He added, “Golfing, spa, beach vacation, family travel, junk and sampan cruises, honeymoon and romance moved up to the top notch and favorites for upscale travelers. Vietnam’s appeal is vast”

Vietnam will be provided with the perfect opportunity to advertise its image on a global platform next year when it hosts international events such as the ASEAN tourism forum 2009.

Vietnam: 100 million people fast approaching!

2009-01-02T04:29:00.000+01:00

VietNamNet Bridge – The birth rate in Vietnam is quickly rising again, posing many challenges for the country. Food shortages accompany enormous populations. The health sector will have to take drastic measures to prevent the “prospect” of a population of 100 million.

Limited land, crowded population

With limited land and natural resources, Vietnam has to nurture over 86 million people. At the current growth rate, Vietnam’s population would hit 115-120 million people in the not too distant future.

Minister of Health Nguyen Quoc Trieu said without drastic measures to curb the birth rate, Vietnam’s population could even reach 145-150 million.

The increase of population, according to experts, will slow down economic growth and increase unemployment. Vietnam is now in a period of golden population, during which the number of working-age people is higher than that of dependent people (children under 15 and elderly people over 64). Annually, Vietnam has around 1.5-1.6 million people reach working age, posing challenges in creating jobs for new labourers.

The country will enter a period of old population structure in the next 15-20 years, and at that time, challenges in terms of social welfare will arise. The young population structure goes with pressures in terms of health, education, and child care.

As the number of couples having more than two children is on the rise, Vietnam will have to once again resume its campaign to call for each family to have no more than two children.

The re-increase of the birth rate has been said to originate from the dissolving of the Committee for Population, Family and Children, which was in charge of family planning and population tasks, in August 2008. Since this agency was dissolved, family planning and population tasks in localities have been suspended.

Risk of food insecurity

Each year Vietnam has an additional 1 million people, equivalent to the population of a province, even though each couple has two children at most. Its population is forecast to reach 100 million in the coming years. At that time, the current 40 million tonnes/year of cereals that Vietnam can produce now would be just enough to feed domestic demand.

While the population is rising, the land area devoted to rice growing is narrowing. This means that while the need for rice is increasing, rice output will not increase, and may even decrease.

In the 2002-2007 period, the area for rice decreased by 0.46 million hectares (around 4% of agricultural land area). The biggest drop happened in the Mekong Delta (0.26 million hectares); the figure was around 0.11 million hectares for the Red River Delta. At the same time, the birth rate increased quickly; in particular, the ratio of families with three or more children rose by 16% and it was even 19-20% in 2008.

Vietnam aims to become an industrialised country by 2020, with over 40% of its population living in urban areas. The challenges for maintaining rice crops will be great. Controlling birth rate, thus, becomes a key job.

Vietnam to declare higher education quality in 2009

2008-12-31T03:39:00.001+01:00

VietNamNet Bridge – The results of the training quality appraisal of 20 universities will be announced in January 2009. It will show the overall picture of the higher education situation, while helping create a competitive environment among universities, according to the Ministry of Education and Training (MOET).

The deputy head of the Examination and Education Quality Accreditation Department under MOET Pham Xuan Thanh said that the department has got information about the appraisals of the first 20 universities, including two people-founded universities. However, the appraisals still need to be reviewed by the National Council for Education Quality Accreditation, which will be the body announcing the results.

“The council was established on October 23. I hope that the results will be approved in January 2009,” Thanh said.

The Examination and Education Quality Accreditation Department has ‘placed orders’ with Higher Education Project No 2 to hire experts and foreign institutions to appraise the training quality of 60 universities. The appraisals will be carried out in three periods and focus on established universities.

Thanh said that the appraisals will be completed by early next year at the latest. Thanh said that the goal of having 80% of universities and 50% of junior colleges accredited by 2010 proves to be within reach.

“Every year, the Examination and Education Quality Accreditation Department surveys the situation of training quality at universities and colleges. However, the universities have reported inaccurate information, making it difficult to appraise and accredit training establishments,” Thanh said.

According to the department, in the last three years, 173 universities and 178 junior colleges, including 20 universities, two of which are people-founded, have finished the self-appraisal process, and have got appraisals from independent institutions. The universities are awaiting accreditation. Meanwhile, 27 universities, 16 junior colleges and 10 junior colleges have appraised their own curriculums, and are waiting for independent appraisal.

An appraisal of teaching quality by collecting opinions from students has been carried out at Can Tho University, the Hanoi University of Education, and the Academy for Journalism and Communication.

Meanwhile, the Hanoi and HCM City National Universities are striving to meet international standards in training and have been registering for accreditation with international accreditation institutions.

Deputy Prime Minister Nguyen Thien Nhan said that most learners do not have enough information about training quality. Sometimes, universities launch big advertisement campaigns, but learners later find out that it was no more than that – just advertising.

Nhan has decided that by April 2009, universities have to announce the number of students who can find jobs one year after they graduate.

MOET has decided that 2009-2010 will be the time for pushing up education appraisal and accreditation for higher education. MOET encourages universities to be accredited by international institutions.

Top Gear coming to Vietnam

2008-12-31T03:38:00.001+01:00

The Top Gear team is going global. Location shoots are planned to take the British trio all over the planet, starting with Vietnam. Clarkson, May, and Hammond loved the idea when they were plotting it in the pub, but they didn't actually plan for the fact that Nam doesn't have adequate roads... or very many cars. That made the idea of finding a £600 vehicle and racing it across the country a non-starter, but that doesn't mean the crew couldn't come up with an adventure worthy of Top billing. James May didn't want to give too many details of the Vietnam show during his interview with the Daily Mail, but he did provide enough of a tease to make us want to watch. The program will include the bike-loathing Clarkson on two wheels, and there's even footage of the Top Gear star strapped to a third world Ski-Doo (pictured above).

The Vietnam show will be followed next year with trips to Hong Kong, Johannesburg and Sydney. Since there is a 21-year waiting list to see the Top Gear crew do their thing in-studio, these exotic locations may be the best chance anyone has to see the popular show in-person.

Vietnam targets to export 4.8 mln tons of rice in 2009

2008-12-31T03:28:00.000+01:00

HANOI, Dec. 29 (Xinhua) -- Vietnam made the target to export 4.8 million tons of rice in 2009, exceeding the estimated 4.5 million tons in 2008, the local newspaper Industry and Trade reported Monday.

The export is expected to go up next year because the global economic crisis may drive some people into starvation and to rely on rice instead of fruit, vegetables and meat, according to Vietnam's Ministry of Industry and Trade.

The estimate is also based on increasing demands from potential foreign importers. African countries, especially Nigeria and South Africa, have expressed interest in importing Vietnam's rice in coming years, said the ministry.

Despite the estimated increase in volume, the prices for Vietnam's rice exports in 2009 are forecast to decrease, causing the shrink in export revenue, according the ministry.

To achieve the target, Vietnam's Finance Ministry has recently approved the elimination of the export tax for rice as part of the government's effort to boost the country's rice export.

Vietnam's An Binh Securities to begin remote trading

2008-12-31T03:20:00.001+01:00

HA NOI — An Binh Securities will begin conducting remote trading on the HCM City Stock Exchange on January 12. Buy or sell orders from clients will be input directly to the stock exhange’s central computer system-without going through brokerage representatives at the exchange. An Binh Securities will also conduct remote trading via the Ha Noi Securities Trading Centre on a trial basis.

Surfing Internet Vietnamese-style

2008-12-28T06:43:00.001+01:00

16:50' 12/12/2008 (GMT+7)

VietNamNet Bridge – An Internet service investor shook his head, said: “We can’t understand Vietnamese people’s Internet surfing habits. We have invested a lot to study their habits but we can’t understand.”

This fact explains the losses suffered by many foreign networks which have invested in the online industry inVietnam.

The following four items about Vietnamese and their relationship to the Internet may be of use to some.

Yahoo! Messenger, the “king”

A survey ordered by a world-famous social network that plans to enterVietnam shows that 90% of Vietnamese people immediately log in to Yahoo Messenger when they open their computers.

Email, blog, online transactions and many other things are conducted through Yahoo! Messenger. Recently, many people have begun using Yahoo! Messenger mobile.

Talking to friends around the world, to colleagues in the same office, exchanging files, information, sharing photos, etc. and even declaring love to somebody are conducted via Yahoo! Messenger.

Yahoo! Messenger is the “king” in Vietnam, despite the presence of Skype and many other applications, thanks to one simple reason: The whole society is using Yahoo! Messenger, so nobody does differently.

Some employees have even quit their jobs when their employers banned Yahoo! Messenger at the office. “Without Yahoo! Messenger, I feel like I’ve lost an arm. For me Yahoo! Messenger is an indispensable part of life,” said Nguyen Bao Anh Huy, who left a foreign bank for a financial company for this reason.

Willing to pay unexpectedly

It is not true that Vietnamese Internet users just like free products. The evidence is that many online gamers are willing to pay a hundred US dollars to buy a pair of shoes for his/her characters while they wear real shoes costing around $10. They are also willing to pay several dollars to download a game from the Internet or to open an online shop on a website.

An official from an online entertainment service company said if a website has around 50,000 members, it can support itself with just VND3,000 ($0.17) collected from 20% of the members a day.

Kind-hearted people

It is interesting that online games are no longer considered dangerous by elderly people, who often don’t like their children or grandchildren seated behind computers the whole day. Vietnamese people have realised the real usefulness of the Internet.

Programmes for public benefit originating from the Internet are spreading in various forms, from raising funds for charity to assisting others via blogs, Yahoo! Messenger and websites on social activities.

Vu Thuyen, the owner of Dalatskill blog, confirmed: “Without the Internet, I don’t know how I could lend a hand to others so effectively. With only woolen hats and sweaters woven by myself during free time, many kids can have a warm winter.”

More time for computer than TV

More and more Vietnamese people spend more time on the Internet than watching TV because their favourite TV shows are available on the Internet. They can also submit comments about the shows.

The attractiveness of interactive services on the Internet is now a real challenge for TV show producers.

Vietnam to have circular on Internet-based information violations

2008-12-26T04:02:00.000+01:00

16:58' 25/12/2008 (GMT+7)

Mr. Luu Vu Hai

VietNamNet Bridge – The Ministry of Information and Communications (MoIC) is compiling a circular to deal with violations related to the provision, use of the Internet, including information on blogs, said a senior official.

The Chief of the MoIC’s Broadcasting, Television and Electronic Information Control Agency, Luu Vu Hai, said: “The state encourages the use of blogs to serve personal freedom but bloggers have to respect social interests and community interests under the laws”.

VietNamNet talked with Hai about the new rules on blog, which was issued recently by the MoIC.

According to circular 07/2008/TB-BTTT, bloggers are banned from some things. But they can claim freedom of speech as stipulated in the Constitution. What is your opinion about it?

Nobody is banned from freedom of speech and giving information but freedom of speech and information must not harm the public interest, the personal freedom of others and the interests of the country and society in general.

Bloggers are not forced to declare their true names when they use blog services. When they commit violations of the rules, will it be very difficult to find out who they are?

It is difficult but it is not impossible.

We will have to ask social network service providers to force blog service users to declare their true personal information.

An issue always has two faces. But we have to see the requirement of development of the society to have measures of management. State agencies want to take feasible measures of management, which are appropriate to the trend of development and create favourable conditions for the people to use scientific and technological achievements, especially Internet applications.

Why does the circular ban bloggers from diffusing press works on their blogs? Maybe bloggers are correspondents who want to archive their works on their blogs or bloggers who are not correspondents but want to archive information for their own reference.

The Press Law stipulates responsibility in using press works. When we use the press freedom right we have to obey the Press Law and we couldn’t use the press freedom right in a non-press environment.

Blogs are encouraged to develop to help individuals share information which is suitable to customs and habits and Vietnamese laws.

Is it troublesome for social network service providers to report on their blog services every six months?

I don’t think this is an administrative difficulty because the contents that they have to report are readily available. This is two-way cooperation between businesses and state agencies.

How will bloggers who commit violations be punished?

The MoIC is compiling a circular on dealing with violations related to the provision and use of Internet services, including information provision on blogs.

Violations related to blogs are stipulated in various legal documents and now they are being grouped together.

Tourism sector hindered by poor infrastructure, services

2008-12-26T03:48:00.001+01:00


It is time for the tourism sector to stop focusing on how many foreign visitors travel to Vietnam, but on how satisfied they feel, a tourism official said

Vietnam needs to improve infrastructure and diversify its tourism products to attract more foreign visitors in the long term, experts and insiders have said.

The tourism industry is already feeling the effects of the global economic downturn, with international arrivals falling by 22 percent year-on-year in November.

The sector, which employs more than 10 percent of country’s workforce, faces zero growth or even worse next year, AFP quoted Minister of Culture, Sports and Tourism Hoang Tuan Anh as saying earlier this month.

But analysts said once the world economy recovers, people will start travelling again and Vietnam should be prepared for opportunities.

Ngo Minh Duc, Huong Giang Travel Agency general director, said Vietnam needed to restructure its infrastructure for tourism, especially accommodation, otherwise tourists would not return.

Analysts said there were several factors that decided the success or failure of a tourist destination, including the convenience of air traffic and the availability of accommodation, entertainment facilities and public services.

Shorokin Andrey of Russia’s Capital Tour Company said because Vietnam only has international airports in Hanoi and Ho Chi Minh City, it is hard for operators to arrange tours.

Russian tourists are often exhausted after a 10-hour flight to Vietnam, but they then face another four to eight hours in a bus to get to resort cities like Phan Thiet or Nha Trang, he said.

If Vietnam could launch more air routes, the country would attract as many Russian visitors as Thailand or China, he said.

Many tour operators said the local tourism industry depended too much on natural attractions and it has failed to diversify tourism products or improve services.

Patrick Gaveau, marketing director of HCMC-based Focus Asia, said after complaints that prices of tour packages to Vietnam were high, many people suggested travel agencies lower their prices.

However, lowering prices would not solve the problem once and for all, Gaveau said, noting that it was necessary to figure out why there were such complaints.

He said tour packages to Singapore, for instance, were even more expensive, but tourists were happy to pay because both the infrastructure and services were good and most people speak English.

Meanwhile, there are few tourist attractions in Vietnam and foreigners only know a handful of places such as Phan Thiet, Nha Trang, Phu Quoc or Da Nang, even though Vietnam has a coastline of more than 3,000 kilometers, Gaveau said.

La Quoc Khanh, deputy director of the HCMC Department of Culture, Sports and Tourism, said it was time for the tourism sector to stop focusing on how many foreign visitors travel to Vietnam, but on how satisfied they feel.

Nguyen Manh Cuong, deputy head of the Vietnam National Administration of Tourism (VNAT), said poor infrastructure was the biggest problem that the local tourism industry had to face now.

But analysts said even the administration was not determined to solve the problem. They said the government set a higher target for the sector every year but it had not created any specific plans to improve infrastructure or develop accommodation for tourists.

Many travel agencies said they had been asking for the construction of a tourism seaport for more than 10 years but it has not yet been built.

Focus Asia’s Gaveau suggested the government should play a greater role in the development of the local tourism sector and create a comprehensive plan for tourism with the participation of all related agencies.

Other hindering factors

The visa application process was the “largest obstacle to establishing Vietnam as a global destination,” AFP quoted Baron R. Ah Moo, CEO of Indochina Hotels and Resorts, as saying.

“Due to the processing time, last-minute travel to Vietnam is not an option and has been replaced by weekend trips to Phuket, Bali, Macao and Singapore,” he said.

Tour operators said the government should grant visa exemption for tourists from important markets.

For example, while many countries are easing their visa application processes to attract more tourists from China, a main market of Vietnamese tourism, it still takes a Chinese tourist up to one month to get a visa to travel to Vietnam.

Baron R. Ah Moo said an online registration or a visa-on-arrival system would help speed up the process.

Another weak point of the tourism industry was the lack of marketing.

Claire del Rosario-Bernabe, a hotel marketing director, said she wondered why Vietnam had not launched any new marketing campaigns to help its tourism sector overcome the current difficult time.

The recent political crisis in Thailand was a good opportunity for Vietnam to promote itself as a safe destination, and with effective marketing campaigns, the country would attract a large number of foreign tourists, she said.

But because of limited funds, it would be hard for Vietnam to be able to launch large campaigns like its neighboring countries, RosarioBernabe added.

According to VNAT, it is allotted around VND20 billion (US$1.18 million) for tourism promotion every year.

Nguyen Thi Thanh Huong, deputy head of the Tourism Promotion Department under VNAT, said her department needed larger and more stable funds because it is hard to embark on a long-term campaign when funds were allotted on a yearly basis.

VNAT has asked the government to spend $20-30 million on a global marketing campaign to draw back visitors next year and afterwards, AFP reported.

Vietnam Devalues Dong to Fight Slowdown, Help Exports (Update3)

2008-12-25T08:01:00.001+01:00

By Nguyen Dieu Tu Uyen

Dec. 25 (Bloomberg) -- Vietnam’s central bank devalued the dong by 3 percent to help exporters after the Southeast Asian economy expanded at the slowest pace in nine years and the trade deficit widened.

The State Bank of Vietnam fixed the reference rate at 16,989 dong per dollar, versus 16,494 yesterday, according to its Web site. Policy makers maintained a currency band that allows the dong to rise or fall 3 percent a day, said Nguyen Quang Huy, director of the regulator’s foreign-exchange department.

Export growth slowed in the past three months as stagnating global economies cut demand for Vietnam’s garments and coffee and the country became less competitive after currencies in neighboring markets weakened more than the dong. Vietnam’s currency has dropped 5.5 percent this year against the dollar compared with an 18 percent slide in India’s rupee, 14 percent decline for Indonesia’s rupiah and a 13 percent slump in the Philippine peso.

“The devaluation is necessary as the government is trying to increase exports,” said Do Ngoc Quynh, chairman of the Vietnam Bond Forum in Hanoi and head of currency and debt trading at Bank for Investment & Development of Vietnam, the nation’s second-biggest lender by assets. “Other currencies in the region have considerably declined against the dollar, but the dong hasn’t dropped that much.”

The dong traded at 17,250 to 17,499 a dollar after the central bank’s decision, according to Hanoi-based Lai Tat Ha, head of currency trading at Vietnam Technological & Commercial Joint-Stock Bank, also known as Techcombank.

Free-Market Rate

At money changers, or the so-called black market, the currency traded between 17,270 and 17,350 to the dollar in Hanoi, according to a telephone directory information service, known as 1080, run by state-owned Vietnam Posts and Telecommunications. The dong has tumbled 35 percent since the end of 1994 as the central bank devalued the currency every year.

“The State Bank of Vietnam will take necessary action to maintain dong at this level,” the bank said in the statement on its Web site.

Vietnam’s VN Index of stocks fell 0.6 percent to 302.19, the lowest level in more than a week. The measure has declined 67 percent this year, the worst-performing benchmark index in Asia.

Gross domestic product grew 6.2 percent in 2008, after expanding by a record 8.5 percent last year, the government said in a statement yesterday.

Trade Deficit

Vietnam’s trade deficit widened 56 percent to $16.9 billion in the first 11 months of the year, according to government data. The current-account deficit may grow to $12.1 billion in 2009, or 12.3 percent of GDP, from an estimated $10.5 billion this year, or 11.7 percent of GDP, according to a Credit Suisse Group research report dated Dec. 17.

State Bank Governor Nguyen Van Giau told the Tuoi Tre newspaper that the devaluation policy is aimed at helping exporters.

“The Vietnamese dong is facing downward pressure due to the current-account deficit,” said Yuichi Izumi, an economist at Nomura Securities Co. in Tokyo. “The State Bank wants to guide the dong lower to support the export sector.”

Slower gains in consumer prices may have also provided more room for the central bank to weaken the dong. Inflation cooled for a fourth month in December to the slowest pace in nine months, with consumer prices rising 19.9 percent from a year earlier, the government said today. The rate touched a record 28.3 percent in August.

The devaluation followed five interest-rate cuts by the central bank this quarter to help bolster the economy. Policy makers last lowered the benchmark rate on Dec. 19 by the most ever this year to 8.5 percent, from 10 percent. The new cost of money became effective Dec. 22.

To contact the reporter on this story: Nguyen Dieu Tu Uyen in Hanoi atuyen1@bloomberg.net

Vietnam still fumbling with designing low cost tours

2008-12-23T05:28:00.001+01:00

Thailand has surprised the world as just ten days after the chaos, they are ready with a new program to lure travelers back to the country. Meanwhile, in Vietnam, low cost tourism products are expected to be launched by January at the earliest.

Looking at Thailand…

Foreign travelers in HCM City

With the slogan “Thailand sorry,” as well as lower tour fees and hotel room rates, Thailand has become more prominent than ever in a campaign to attract travelers back to the country after the chaos. Tourists have seemed to forget the political uncertainties that occurred only several days ago in the country.

The free flights on international routes provided by Air Asia, departing from Bangkok to Hanoi and HCM City, Cambodia, Myanmar,Malaysia, Singapore and China are expected to bring several hundred thousand tourists to Thailand, with these flights occurring between January 6 and March 31, 2009.

Travelers have been promised surprisingly low hotel room rates with discounts of up to 50-80% in Phuket or Pattaya.

Many Vietnamese travelers have booked air tickets online to travel to Thailand. According to Bui Duc Hanh, Chief Representative of Air Asia in Hanoi, Vietnamese travelers like booking tickets on weekends or holidays. Travelers only have to pay the airport tax, insurance premium and administrative fees.

‘Jealous’ of Thailand, Vu The Binh, Director of the Travel Departmentm, under the Vietnam National Administration of Tourism (VNAT), admitted that Vietnam is inferior to Thailand in the area of professionalism. With their professionalism, Thailand has not been on the defense with the political crisis, as it has discovered initiatives to persuade tourists back to the country.

Meanwhile, according to La Quoc Khanh, Deputy Director of the HCM City Department of Culture, Sports and Tourism, Vietnam has not been professional in promoting tourism, as Vietnamese companies cannot cooperate with each other for the development of the tourism industry.

… to seek solutions for Vietnam

Many directors and officials of VNAT were present in HCM City late last week to meet 60 travel firms and hotels to discuss plans to lure more travelers to Vietnam. Two similar meetings will take place in Hanoiand the central city of Da Nang this week.

Nguyen Manh Cuong, Deputy General Director of the VNAT, affirmed that tourism products must be ready by December 30 at the latest.

Khanh said that a plan to cut tour fees has been designed, and is called a “6 in 1” program. The taskforces for key markets have been set up and they will sit together to discuss the measures necessary to cut tour fees and design mechanisms for controlling the implementation of commitments.

Once tourism products with reasonable prices are ready, travel firms will register to VNAT and the local department of culture, sports and tourism. Afterwards, products will be introduced and advertised to foreign partners.

Khanh said that in the meantime, HCM City’s tourism promotion will focus on Japan, Australia andMalaysia, while it will still need support from VNAT to promote tourism in France, East Europe andChina.

Japan will be the first target in the tourism promotion campaign with roadshows and press conferences to be held when the 30% decreases in tour fees will be announced.

HCM City is hurriedly selecting “Saigon, 100 most interesting things,” which includes the 10 most attractive sightseeing points, the 10 most delicious dishes, 10 original markets and the 10 best hotels to be introduced in the campaign.

Binh, from VNAT, said that the tourism products need to be designed and available soon so that VNAT can advertise the products directly to 500 foreign travel firms and the foreign press in January 2009 at ATF 2009.

Ben Thanh Market - District 1 - HCMC - Vietnam

2008-12-23T04:50:00.001+01:00

Last night we headed in to Ben Thanh Market. One of the most famous markets in Vietnam which by day is a crazy place selling foods and assorted goodies, while by night it transforms in to a bustling Night Market full of great food at cheap prices!

We hit the Hai Lua Restaurant and managed to get a table with out to much hassle, however 10 minutes later, people we're queuing at the front to get in. The busy eatery has a great menu with plenty of choices from beef, chicken, pork, frogs and seafood. There are also plenty of Vege dishes for vegetarians and a full range of soft drinks, beers and fruit shakes.

We went for the BBQ Whole Fish, BBQ Pork Kabab's, Seafood Fried Rice, Stir Fried Vege's with garlic, all washed down with an icey cold Saigon Beer!

I have to say the food was fresh, hot and really hit the spot. The staff we're flat out, but still attentive and friendly.

Overall it was a great meal and worth the 300,000VND which included food and drinks for 4 people.

The only real issue was the BBQ and smoke as it got rather thick at times! But with the atmosphere, good food and craziness of a Sunday night in HCMC, it was all good!

Ben Thanh Market is located at the end of Le Loi Street in District 1. The Night Market is open from 6pm and finishes up between 11 - 12pm.

Images From Ben Thanh Market

Cooking up a storm at Ben Thanh Night Market

Popular with Locals and Travelers

BBQ Pork Kabab's

BBQ Whole Fish with a lemon, chili and salt dip

Seafood Fried Rice

Cooking Mekong Elephant Ear Fish and Pork Kabab's

Smokey but a great atmosphere!

Woking good times!

Busy in the Kitchen

Smoking BBQ

================

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IMF urges Vietnam to scrutinise stimulus plan

2008-12-20T02:52:00.001+01:00

The International Monetary Fund (IMF) has suggested that Vietnam thoroughly consider its economic stimulus plan and give priorities to such vulnerable groups as the business and banking sectors.

The IMF made the recommendation in a notice released on December 18, following a week-long Vietnam visit by an IMF working mission led by Shogo Ishii, Assistant Director of the IMF’s Asia and Pacific Department.

The IMF forecasts that Vietnam ’s economic growth rate will reach 6.25 percent in 2008 and may reduce to 5 percent next year due to the worsening global economic environment, said IMF Senior Residential Representative in Vietnam Benedict Bingham.

Vietnam ’s trade deficit is expected to go down in the following year but will remain high, accounting for around 9 percent of GDP, he added.
The IMF experts also predicted the country’s inflation rate to decrease to a single-digit level by late 2009, leading to the government’s loosened monetary and financial policies. However, Vietnam ’s position in the international arena is not so strong compared to some regional countries, which may restrict the government’s capacity in pursuing those policies, they said.

The IMF mission, however, noted that Vietnam ’s outlook remains positive given that the government maintains sound policies and continues reforms to increase the country’s competitiveness.

Maintaining reforms in this difficult period is very important for Vietnam to bolster investors’ confidence and ensure a better position for the country when the world escapes from the current economic recession, Benedict said in conclusion.

Vietnam's pepper exports to reach yearly target of US$310m

2008-12-20T02:50:00.000+01:00

Vietnam will reach its target of exporting US$310 million in pepper by the end of this year, helping the country cement its number-one position in the world pepper market, according to the Vietnam Pepper Association (VPA).

The country exported 86,000 tonnes of pepper over the past 11 months to earn a turnover of US$300 million, the association said.

Despite global economic difficulties, world demand for pepper would still rise by 15 percent, or 50,000 tonnes, next year, a representative from the India Pepper and Spice Trade Association predicted.

Meanwhile, the International Pepper Community (IPC) forecast that the world pepper supply would be lower than the demand due to the world’s shrinking pepper cultivation area as well as the recent poor weather and disease outbreak in major pepper exporting nations like India, Brazil and Indonesia.

Vietnam would remain the world’s leading pepper exporter in the coming years, said the IPC.

The Vietnamese pepper industry is playing a more important role in the world pepper industry, said VPA general secretary Truong Thi Thong.

Vietnam Visa - Apply Online

2008-12-20T02:46:00.000+01:00

© Photographer: Smithore | Agency: Dreamstime.com

Not so long ago, Vietnam introduced an Online Visa Service where by travelers can apply online instead of the traditional and sometime painful method of contacting Embassies in your local area.

Whilst I have yet to use the service myself, several people I know have and they are all saying good things about it!

To find out more details and what it is all about I spoke to staff atwww.myvietnamvisa.com an online company based in Hanoi. Check out below for the details!

Adam - Who needs a visa for Vietnam?

My Vietnam Visa (MVV) - All visitors to Vietnam require a visa except those coming from ASEAN Countries, Sweden, Finland, Denmark and Norway. As of the 1st Jan Russian visitors will not require a tourist visa either for visits of 15 days or less.

Adam - Whats the process for applying for Visa?

MVV - Travelers wanting to apply for a visa, can simply visit our site (see below) and follow 3 easy steps. Firstly fill in and submit a form through our site, then confirm and pay for the visa. Finally travelers will receive a Visa Approval Letter via email which they can show immigration officials on arrival in Vietnam.

Adam - How long does it take to get a visa approved?

MVV- The Visa Approval Letter is sent to customers with in 48 hours of applying. For special cases, the Letters can be approved within 4 - 8 working hours.

Adam - Can you use Online Visa's to enter Vietnam via airports and land borders?

MVV - No. Travelers can only enter through Vietnam's 3 International Airports in Hanoi, HCMC and Danang. Online Visa's can not be used for land crossings.

Adam - How much does it cost for visa's online?

MVV - The cost varies for different visa's your visitors can visit our website for exact costs. (Ed - Go here for Pricing)

Adam - I believe there are two payments travelers need to pay. Can you explain what they are and when they have to be paid?

MVV - There are two payments required. When you apply online for a Visa you pay a processing fee (pay online).

Then once you arrive in Vietnam, you must pay a Stamping Fee direct to the Immigration Official at the airport (upon arrival in Vietnam). Payments in Vietnam are payed in USD.

Adam - What sort of visa's are offered online?

MVV - Visitors may apply for tourist, business and student visa's online.

Adam - Thanks for your time!

For more information about Vietnam Visa's or to apply for a visa, visitww.myvietnamvisa.com/

Vietnam: Where pirated apps match personal budgets

2008-12-18T08:42:00.000+01:00

Posted by Dong Ngo

The bootlegging in operation at a store in Hanoi, one of many such shops that sell pirated goods.

(Credit: Dong Ngo/CBS Interactive)

Editor's note: CNET editor and Crave contributor Dong Ngo is spending part of December in his homeland of Vietnam and is filing occasional dispatches chronicling his impressions of how technology has permeated the culture there. Click here for more of Dong's stories from abroad.

HANOI, Vietnam--You say you can't afford the $699 price tag on Adobe Photoshop CS4? How about a $698 discount?

That's the kind of deal you'll get here in Hanoi, where pirated software--and virtually any other kind of digital content--is sold indiscriminately at many local shops for about $15,000 dong (90 cents) per DVD, or half of that for a CD.

These shops are open, just like any legitimate business. I checked one out and was impressed by the number of software titles it carried. While there, I also learned a thing or two about the piracy industry here in Vietnam.

The store I visited is a small shop facing a busy street, with walls covered in CD and DVD sleeves--all black and white copies of those found in the original software package.

"I hate having to use some sort of hack for them to work, but it's worth it. It's a no-brainer, really."

--Trung, college student,
Vietnam

Virtually any PC software application I've ever heard of can be found here: Windows operating systems, popular Office suites, and high-end professional software such as Photoshop, AudoCad, and Corel Draw, are available in any versions. I even found different builds of Windows 7, which is currently still in pre-beta and is supposedly available to only a limited few.

These software applications, of course, come with "crack"--a hacking application that allows for bypassing the vendors' antipiracy mechanism. All are guaranteed to work; if not, you'll get another copy that does or get your money back.

Out of curiosity, I asked one of the shop's two operators, Nam--a friendly 24-year-old man--where this copious amount of software comes from. He said there's somebody who gets his shop the "master" copy of any titles he wants, and the master copy costs just about $5.

I made up a fancy name of a nonexistent software title and asked for it. After searching his large database to no avail, Nam indeed picked up the phone and made a quick call. After that he told me to come back the next day. "They don't have it now, but they probably will soon, don't worry!" he said, sounding very sure.

Of course, not everything in this shop is bootlegged. There is also stuff you can legally download for free, such as OpenOffice, Linux distros, and service packs. It's a good way to save time and Internet bandwidth at home.

The shop's business is going very well. Nam said it sells about $100 worth of discs a day, which comes to about $3,000 a month. However, Nam himself gets paid only $150 a month, which is a little above average for a Hanoian.

A short list of what you can get at one Hanoi store for less than $1 per DVD.

(Credit: Dong Ngo/CBS Interactive)

It's interesting to note that Nam, if he ever wanted Photoshop SC4, would have to save for months before he could afford it at the full retail price. Maybe that's the main reason bootlegging is so rampant here in Vietnam.

I talked to Trung, a college student, who stopped by the shop to fetch the latest revision of Medal of Honor. Trung is an avid gamer whose knowledge of video games could easily land him a job at GameSpot, even in these tough economic times.

He told me there's no way he could afford any of the games he's played--and he's played a lot of them--at the retail price. "I hate having to use some sort of hack for them to work, but it's worth it. It's a no-brainer, really," he said. The truth is that getting even one game legally could easily cost a student like him a whole month of food and rent.

According to the Business Software Alliance's and International Data Corporation's Fifth Annual Global Software Piracy Study (PDF), 85 percent of all software currently used in Vietnam is pirated. In 2007, piracy in Vietnam accounted for $200 million in losses for copyright owners.

I wonder how they came up with that number, however, as it is hard to calculate what the real "loss" would be if antipiracy laws were strictly enforced. Most people here would stop using a lot of software applications at all. They simply could not afford them.

The truth is the law doesn't seem to be strictly enforced here. Asked what would happen if the police found out, Nam said that he knows all the officers in the local unit and that they know what the shop does. He hinted that there was some sort of arrangement and the shop would close on those days, several times a year, when antipiracy inspectors head out to clean up bootlegged software.

In the event that the owners get caught and their equipment is confiscated, it's not hard to start anew. All a software shop needs are a couple of computers equipped with fast burners and large hard drives.

It seems bootlegging and using bootlegged software have become so common that nobody here considers those practices illegal or even "bad." They don't even seem aware of the fact that the software might come with malicious code designed to compromise their computer's security. It's going to take a long time for people here to change this mentality, if that's even possible.

In the meantime, it would probably be helpful to price the software differently for low-income parts of the world, such as Vietnam. After all, it's better for software vendors to have their products used for less than for nothing. And I would think that it's still better to have them used for nothing than not used at all.

The good news is that there are vendors that are making just such price adjustments. BitDefender, for example, has been using separate pricing for the Vietnamese market. Its Total Security 2009 suite, for example, costs$59.95 in the U.S. but only 399,000 dong ($24) in Vietnam. Kaspersky is doing the same thing.

While these two won't change much about the piracy landscape in Vietnam for now (and I think their prices could still go a little lower), they will hopefully raise awareness that legitimate software can be affordable, help create jobs, and come with benefits that are worth the price. Now that's a start.

Dong Ngo is a CNET editor who covers networking and network storage, and writes about anything else he finds interesting. You can also listen to his podcast at insidecnetlabs.cnet.com.E-mail Dong.

A Vietnam expats world through photography

2008-12-18T03:35:00.000+01:00

Through an expat’s eyes

Peter Pham originally came back to his native country for business but the snapshots he took on that trip changed his life.

He moved to the US at the age of nine and later became a computer engineer for IBM, but it seems that the real destiny of this 42-year-old Vietnamese is photography.

Peter Pham, whose full name is Pham Manh Hung, first returned to Vietnam in 1992 for a business project. But with things not going so well on the business front, he did some traveling, snapping tourist shots with an automatic camera. The strange images that he took home of Vietnamese daily life were engraved upon the expat’s mind. So began a photographic journey to the land of his forefathers.

“When I look back at those photos it calls up so many memories. At first, in America, I was a landscape photographer, but when I returned to Vietnam, portrait shots drew me in. I love it for the reality, without effects and unarranged. That’s why I just like wandering and chasing every natural moment of life,” Pham says.

Another work by Pham, “A cute smile” taken at the Nhat Le River in the central province of Quang Binh

Since 2002, Pham has been returning to Vietnam for the sole purpose of taking pictures. With photographic knowledge learnt from the Internet, books and his main occupation selling oil painting reproductions online, Pham’s view of the world is both familiar and strange.

Seeing the country through an expat’s eyes, Pham approaches his subjects from another angle - deeply sympathetic and respectful to the masses. “Having sold oil-painting reproductions for five years, I am really interested in that style. When I look in the working people’s eyes, I feel the joy, peace, innocence and happiness that go along with the hard work. I want to capture and share that feeling with the viewers. I have traveled many places, but there are several ones, such as Hoi An, Northern East, Highlands, Nha Trang, Hanoi and Ca Mau, that I want to visit again to get a better understanding,” shares Pham.

The result of Pham’s photographic journey around Vietnam is a full-color book called Duong ve va khoanh khac (Journey Home). At first, Pham planned to make the book for friends. But he was encouraged to publish it for general sale. Pham’s pictures also appear on postcards which have become one of the top sellers at Tribook bookstores and Phuong Nam’s chain of bookshops – 30 percent of the proceeds from their sale goes to charity.

“Coming back and settling in Vietnam for nearly a year now, there have been a lot of changes in my family’s life. I want to reflect that in my art. Now my wife and I are preparing the second book in the trilogy. This collection is like my awareness of my new life. I also want to make an exhibition. Perhaps it could tour galleries, and all the profits could go to charity. We want to do something small for my native Vietnam. But the problem is that my wife and I cannot handle everything. I really need some help and sponsorship to organize it,” Pham says.

Soul mate

In Pham’s photography career, his 29-year-old wife Ngoc Anh plays a very important role. Anh was the first to appreciate and encourage Pham’s talent. Perfectly matched in nearly every way Pham and Anh, also a US expat, decided to marry after a whirlwind three-month relationship. They shared a common yearning to return to Vietnam.

“She was working at a tour services company and I was the client. She was the partner I was seeking,” says Pham.

The couple enjoy their life together both as soul mates and business partners. Anh is the manager of finances in Pham’s business and always supports her husband to build his dream.

“This art business has a lot of remarkable and funny memories,” Anh said.

“I still recall when a Thai customer insisted on buying a picture of an old man standing beside stacks of canned fish. We felt it was strange, because it wasn’t a popular photo. Finally, I discovered the reason. By sheer coincidence that man was the sales representative of the canned fish product in my husband’s picture.

“Sometimes, I tell Peter that maybe he should change his style to satisfy his customers’ taste but his definitive answer has always been ‘No.’ I understand that photography is my partner’s passion and he has to please himself.”

“Do what you like” is the young couple’s motto. The husband and wife team have displays in the showroom of Nha Xinh, a famous trade name in Vietnamese interior decoration.

More of Pham’s photos are available on his websitewww.perterphamphotograph.com.

“Sad eyes,” a work by Peter Pham depicting a star fruit vendor in Hanoi

Vietnam eyes 3.1 billion USD in trade with Middle East in 2010

2008-12-18T03:34:00.001+01:00

HANOI, Dec. 17 – The Ministry of Industry and Trade (MoIT) has issued an action plan targeting to increase the country’s two-way trade with the Middle East region to 3.1 billion USD by 2010 and to 9.6 billion USD by 2015.

The MoIT has formulated a host of specific plans, including boosting the export of farm products, food and fine art articles to the Middle East markets, which are expected to rake in export earnings of 2.3 billion USD by 2010 and 7.5 billion USD by 2015.

According to the MoIT, the past two years have seen a considerable growth in trade between Vietnam and the Middle East as some Middle East countries are shifting their trade and business activities to oriental countries, including Vietnam .

The United Arab Emirates and Turkey are currently the leading importers of Vietnamese goods in the region while the markets in Israel and Saudi Arabia have also opened up to Vietnam ’s products.

The MoIT reported that last year the two-way trade between Vietnam and the Middle East reached around 1.2 billion USD, 700 million USD of which was Vietnam’s exports. The figure excluded the value of goods Vietnam exported to the region via a third country.

Vietnam’s major export lines to the Middle East include rice, coffee, textile and apparels, computers, electronic components, footwear, seafood, and wood furniture while it imports mainly oil and gas, petrochemical products, fertilizers and iron and steel from the oil-rich region. (PNA/VNA)

Cam Ranh Bay back in strategic limelight

2008-12-18T03:30:00.001+01:00

Cam Ranh Bay back in strategic limelight

South China Morning Post
August 16, 2008 Saturday
Cam Ranh Bay back in strategic limelight

Greg Torode

Cam Ranh Bay in Vietnam is one place that never seems to die.

Built up as a vast air and sea base by the US military at the height of the Vietnam conflict, it became a glittering prize of the cold war when Hanoi allowed its Soviet Union patron to keep its biggest southern base there.

Cam Ranh's deep harbour hosted submarines, ships and an electronic spying centre that swept the Pacific to watch Chinese and US forces.

Russia withdrew the rusting remnants of its presence in 2002, two years before its lease expired, as Vietnam jacked up the rent to $200US million a year. Cam Ranh may have largely returned to its natural state of windswept beaches, salt pans and rice paddies but it has never been forgotten.

Major militaries, including the US and India, have discretely but repeatedly dropped hints to the Vietnamese that they would like ship visits to the area, even though they appear to realise Hanoi is unlikely to grant a foreign power full base rights again.

China is eyeing developments closely as Vietnam seeks to broaden and deepen its international military ties. The strategic value of Cam Ranh is difficult to overestimate. Considered the best natural harbour in East Asia, the bay sits beneath the resort of Nha Trang and just west of the disputed Spratly Islands that straddle the vital shipping lanes of the South China Sea.

Recent developments suggest its importance certainly has not been lost on Moscow, which is actively seeking to rebuild its once mighty Pacific fleet out of Vladivostok.

Russian defence analysts and retired generals have talked up the value of Cam Ranh in the Russian media, all reflective of a broader push to expand its military presence as it grows in wealth and confidence after leaner post-Soviet years. The commentaries appear linked to official Russian approaches to Cuba to reopen its controversial listening post at Lourdes - a sister facility to Cam Ranh Bay that closed at the same time.

Alexey Muraviev, a Russian security expert based at Australia's Curtin University of Technology, said the flurry of articles appeared to be based on speculation and wishful thinking.

"But I think they do reflect a widespread view that Russia should never have left Cam Ranh," he said.

"Some kind of future return would certainly fit into Russia's broader strategic logic."

Russian president turned prime minister Vladimir Putin apparently agrees.

In April he expressed concern that the US had displayed little goodwill over Russia's closures of bases at Cam Ranh and Lourdes. "What did we get?" he said. "[US] bases in Romania, bases in Bulgaria, the missile shield in the Czech Republic and Poland."

Russian entrepreneurs, meanwhile, are also eyeing Cam Ranh's commercial potential as they move into the region, something Hanoi government planners are keen to exploit even while its military experts still debate future usage.

Large Russian property developer Mirax Group this week won a licence to build a $200US million resort at Cam Ranh. The group is planning a 300-room five-star hotel and 100 villas, the Vietnam News Agency reported.

It would be the first significant resort development in the area.

Already, Hanoi has allowed internal commercial flights to use the massive airfields, built initially to handle giant US B-52 bombers.

While it remains far from clear whether Moscow has yet made any formal overtures to Hanoi, the pair have a strong military relationship. Russia remains a key supplier to Vietnam's military and is building two state of the art guided missile frigates, with two more reportedly on order.

But Carl Thayer, a Vietnam specialist at Australian National University, has noted than any return on the Cam Ranh base may not come cheaply given the state of the remaining facilities.

Sunbathing in Vietnam, kind of

2008-12-17T08:44:00.001+01:00

Solar water heaters like this one are getting popular in Ho Chi Minh City.

(Credit: Dong Ngo/CBS Interactive)

HO CHI MINH CITY, Vietnam--It took me a few minutes to realize how crowded Ho Chi Minh City is, and a few hours to experience the first power outage. Welcome to the dry season of the South.

The season lasts from November until April. It's when this part of the country experiences its most severe energy shortage, with rolling blackouts taking place in HCM several times a week, if not daily.

(Unlike the four-season North of the country, the South of Vietnam has only two seasons--dry and rainy. Nonetheless, it's generally sunny all year around in Ho Chi Minh City. It's hot, too, with the exception of a few weeks around Christmas when it gets a little chilly, around 60 degrees F. However, it's always humid here and you'd probably want to shower a few times a day.)

Most businesses, and even some households here, have a backup power generator. Drive around the city at any given time, and chances are you'll see some of these in operation.

With the sharp population increase, Ho Chi Minh City, now home to about 10 million, is facing an apparent energy crisis. According to HCM City Power Company, the city's power demand is now in excess of 1,000 to 2,500 megawatts every day.

To battle this, the city has turned to a source of energy that it has a lot of: the sun. Since July, it has been developing a program to support businesses that produce and sell solar-powered appliances, including water heater and lighting systems.

I found out about this totally by chance when I got on the rooftop of a friend's house to view the city. There I ran into something I've never seen before: a solar water heater.

The machine includes a large solar panel and a water tank. The panel consists of 18 glass tubes made of stainless steel aluminum nitride cermet that work as the solar-absorbing layer. The gathered heat is then used to warm up the water in the tank.

According to Chau Nguyen, the owner of the house, the 180-liter (40 gallon) tank is enough to replace four electric water heaters previously used in four bathrooms of her house. This replacement saves her about $10 a month on her electricity bills.

(If you have followed my series of blogs from here, you'll notice that there are a lot of Nguyens. The truth is about 7 out of 10 Vietnamese people have the last name Nguyen. During my trip, it seems like almost everyone I've run into has this last name.)

From the top of her house, I could see many other buildings and houses in the city with the same type of water heaters installed. There are many sizes, though, with the one used at Chau's being the most popular for a private house.

Chau said she paid 13 million dong ($760) to have the machine installed, both parts and labor, including new pipes and other accessories. That price is after a 1 million dong ($60) subsidy by the government, an incentive for the switch from using a traditional water heater to the solar one.

The Vietnamese government has been giving this incentive since the beginning of the year, with a goal of putting about 30,000 solar water heaters into use by 2013. As it turns out, many parts of the country have participated, but HCM, thanks to its particular weather condition, has the biggest penetration.

This five-year program also aims to make people aware of the benefits of using solar energy, though it seems to me that many here care more about savings and resource availability than going green. "Now we still have hot water, even during blackouts," Chau said.

Nonetheless, the country now imports hundreds of thousands of solar-power-related appliances annually. According to HCM City's Energy Conservation Center, the 30,000 solar water heaters could help save up to 57 million kilowatt-hours of electricity and cut greenhouse gas emissions by 23,541 tons every year.

While these numbers are hard to comprehend, I thought it was really cool to know that the hot shower I just took in the hotel came in part directly from the sun.

It's sunbathing redefined. And I love my tan.

Another sunny day in Ho Chi Minh City. Unlike the four-season North of the country, the South of Vietnam has only two seasons--dry and rainy.

(Credit: Dong Ngo/CBS Interactive)

Dong Ngo is a CNET editor who covers networking and network storage, and writes about anything else he finds interesting. You can also listen to his podcast at insidecnetlabs.cnet.com.E-mail Dong.

UNIDEN to Cut Jobs in China

2008-12-17T08:41:00.001+01:00

Japan-based UNIDEN Corporation is set to downsize its production facilities and workforce in China. And it will shift its focus to Vietnam, where the labor cost is much lower than China.

The company is scheduled to cut 1,200 of 5,705 jobs in its plants in Shenzhen by the end of March 2009. Contrarily, it will increase its employees in Vietnam from 4,955 to 6,500.

First it will shift wireless telephone production facilities from Shenzhen to Vietnam in the first quarter of 2009. After that, Shenzhen plants will be specialized in production of LCD televisions, microwave digital TV tuner and related components.

Its plants in Ji'an will also go through staff reduction. Employees of the plants will be reduced to 1,200 by March 2009 from 2,971 by the end of November 2008. In total, the company will axe 6,500 jobs in this country.

Vietnam needs standard studies

2008-12-17T08:40:00.002+01:00

HA NOI — The recent increase in the number of universities offering degrees in Vietnam Studies is being blamed by some for the inconsistent curriculum between schools and the difficulty recent graduates have finding jobs.

Professor Tran Le Bao pointed out that, at some schools, students taking Vietnam Studies courses are being primed to enter the tourist industry after graduation.

"It shows that the subject is just a cover for the tourism sector, which is a popular focus right now," Bao said.

Most Vietnam Studies curriculums are designed by professors who specialise in diverse topics like literature, history, geography, and linguistics.

Because every university has Vietnam Studies professors with different specialities, schools across the board have vastly different core requirements for the subject.

Experts at the third international conference on Vietnam Studies, held in Ha Noi last week, called upon the Ministry of Education and Training to monitor universities and colleges to avoid the nonuniformity.

Seventy-six universities and colleges nationwide have started offering courses in Vietnam Studies since the topic was introduced eight years ago.

What to do after graduation

The question of what to do after graduation is one that haunts students all over the world.

According to Doctor Pham Thu Nga of Sai Gon University, many young people are not dedicated enough to study more difficult subjects. Instead, they choose new ones with less intense requirements, like Vietnam Studies.

A lecturer at Thang Long People Founded University, Nguyen Thi Lan Huong, said it was difficult for graduates with degrees in Vietnam Studies to find jobs because they lack in-depth knowledge in any one area.

Huong recommended schools define core specialities for students as soon as they declare a concentration. By doing so, students would be made aware of post-graduation career options and schools would be able to manage their students better, she said.

Professor Le Quang Hung of the Ha Noi Teachers’ Training College reminded graduates that it was the duty of every student to update their knowledge and skills after they finish school. —VNS

Vietnam works to ensure 49.5 million jobs by 2010

2008-12-17T08:40:00.001+01:00

BAC NINH, Dec. 17 -– Vietnam’s labor ministry has set a target of establishing employment centers in 40 cities and provinces, in addition to 50 websites connected to the national job market information portal, to ensure employment for 49.5 million people by 2010.

The Ministry of Labor, War Invalids and Social Affairs is also aiming to develop a job placement system, linked to the employment websites of all 63 cities and provinces by 2015.

This plan was unveiled at a workshop to review experiences in the organization of employment fairs, which took place in northern Bac Ninh province on Tuesday.

Over the past two years, a total of 105 job fairs were organized at 23 employment centers nationwide, attracting between 5,000-7,000 job seekers per event. To date, 20 localities have developed their own employment websites or portals.

Representatives from job centers in Hanoi , Hai Duong, Bac Ninh and Da Nang city said that monthly job fairs help to satisfy the demands of the labor market.

They, however, voiced their concerns about the lack of up-to-date information regarding the labor market, as well as a paucity of information regarding the demand and supply of laborers at fairs. (PNA/VNA)

Vietnam's state-owned firms urged to join fight against economic slowdown

2008-12-17T08:39:00.002+01:00

HANOI, Dec. 17 (Xinhua) -- Vietnamese Prime Minister has asked the country's state-owned companies to do their utmost in fighting against the national economic slowdown and achieving the economic growth of 6.5 percent in 2009, the local newspaper Youth reported Wednesday.

At the meeting with heads of the country's corporations in Hanoi, Dung urged the state-owned companies to continue playing their key role in leading production and expanding domestic consumer and export markets.

The government would concentrate its efforts on implementing every possible measure to ensure economic growth and social security, said Dung.

The state-owned commercial banks should offer loans at annual interest rates of between five to six percent to the country's companies in need of loans, especially the small and medium-sized companies, said Dung.

Deputy Prime Minister Hoang Trung Hai at the meeting instructed the state-owned companies to ensure work for employees, generate jobs and closely cooperate with trade unions to prevent wildcat strikes.

Workers head for gloomy Tet as jobs are axed

2008-12-17T08:39:00.001+01:00


Workers at the Song Than IP in Binh Duong Province leave for home after a hard working day.

Unemployment could worsen next year, the deputy minister of labor warns.

It is just mid-December and Tet is more than a month away, but Nguyen Trung Dung and Ha Huy Hung are already waiting for a bus to take them from Hanoi to their home in Phu Tho Province.

“We are going to have an early Tet (Lunar New Year),” they told Thanh Nien.

Dung, who used to work for the Japanese-owned Suncall Technology Ltd. Co. based in Hanoi, said a mass job cut last month had left him with no choice.

“My salary had started to fall in August as overseas orders fell and I was laid off last month.”

Dung’s friend Hung quit his job at the Nissei Electric Hanoi Company because his salary had fallen steeply as well.

While Vietnamese everywhere return to celebrate Tet with their families, Dung and Hung are in no festive mood, given the meager savings left from a year hit hard by the global economic slowdown.

The two told Thanh Nien they had tried to apply for jobs at other Hanoi-based companies but there were very few vacancies with “outof-reach’ requirements.

At the same bus station, Nguyen Thi Huong, who hails from the north-central province of Thanh Hoa, said she had also given notice despite the fact that she was not retrenched by Denso Ltd. Co. the Japanese auto parts maker.

“Earlier, I could make around 1,000 products per day but the number had fallen to between 200 and 300 recently,” Huong said.

She told Thanh Nien many of her colleagues had also left because of decreased orders from abroad.

“I am not expecting the Tet bonuses to be good enough,” she said.

Such stories have become very common all over the country, as more and more workers bear the brunt of the global downturn.

Struggling companies, hit hard by the turmoil, have started to cut jobs and scrimp on their expenditures.

The mass retrenchment was first felt in the south but it has now taken a toll on firms based in the north.

The Hanoi Export Processing and Industrial Zones Authority said during the last four months, particularly this month, many companies have announced massive job cuts.

For instance, at the Thang Long Industrial Park (IP), Cannon has retrenched some 2,000 employees, while Nissei Electric has laid off around 300.

Companies based in the Noi Bai IP have also cut some 30 to 50 jobs each.

The job cuts have also spread to Hanoi’s neighboring provinces and cities in the north with many big companies saying they would continue cutting jobs next year.

Bracing for worse

The unemployment situation could exacerbate by early next year, Nguyen Thanh Hoa, deputy Minister of Labor, War Invalids and Social Affairs, said at a press conference on Monday.

The ministry will soon announce the official statistics of jobless people nationwide, Hoa said.

The International Labor Organization recently warned the number of unemployed worldwide could rise from 190 million in 2007 to 210 million by late 2009.

Overseas job opportunities for Vietnamese laborers have also dried up due to the slowing global economy.

Vietnam’s four major labor export markets are Taiwan, South Korea, Malaysia, and Japan.

Concerned agencies will study more carefully the potential of foreign labor markets to secure the interests of Vietnamese workers abroad, Hoa said.

Local governments have been asked to keep a close watch on the situation and work out feasible measures to tackle the unemployment problem, he added.

Companies were being encouraged to offer unemployment allowances for retrenched staff, said Dang Minh Thuan, vice chairman of the Hanoi Labor Union.

He cited the example of Cannon which was planning to lay off around 1,200 workers, but offered them unemployment benefits of a month’s salary and VND1.4 million each, prompting some 2,000 workers to give notice.

On Monday, the government issued a decree under the Social Insurance Law, stipulating that Vietnamese employees who have signed contracts of at least a year will be eligible for unemployment insurance.

The compensation rate will be 60 percent of the average salary or wage of the employee for the last six months before being unemployed, which will be paid for between three and 12 months depending on the time the employee had paid insurance premiums.

Vietnam has been enjoying high growth rates for more than a decade based on export-oriented production in many sectors. With its leading export markets hit hard by the global economic downturn, many struggling local companies are bound to reduce jobs and their workforce in coming months.

Vietnam: Opportunities emerge amid chaos

2008-11-17T03:36:00.001+01:00

09:50' 15/11/2008 (GMT+7)

Any time a stock market falls over 60 per cent within one year, you must ask if an opportunity is emerging or whether the coffin is truly being lowered into the ground.

As one door closes, another one rich in opportunity opens

Investors in Vietnam and around the world are facing huge material declines in the value of their portfolios. Nathan Rothschild, one of history’s most famous financiers, said you invest when there was blood in the street. The lesson is simple, when the market mood is exuberant, people will buy at irrationally high prices.

You can’t profit in such times. Rather it is when people are panic selling, at depressed prices, that you can buy into investments that will result in truly impressive profits.

I believe Vietnam today offers many investment opportunities. There are strong economic challenges facing Vietnam as a result of the global financial crisis, but the country is nonetheless well placed to face these challenges and overcome the ‘growing pains’ that have stressed the economy thus far in 2008. The prices in the market today indicate that many companies are suffering. But those with strong management teams will find a way to survive and build value in the future.

A well-timed event

This message, of Vietnam’s resilience, is what VinaCapital will deliver to foreign investors at our 2008 Investor Conference, to be held 10-11 November in Ho Chi Minh City. The conference will gather investors and industry experts from Vietnam’s top companies, to discuss market conditions and trends. This year, we will not have the luxury of telling investors that huge returns are just around the corner. It will take time for the market to rebound.

But long-term investors who missed entering the Vietnam market in 2005-2006 have a chance to correct that mistake. The foreign companies that so far in 2008 have contributed to record FDI commitments of over $57 billion, right in the midst of the stock market decline, certainly feel the country’s prospects remain strong.

VinaCapital now manages five funds, three of which are listed on the Alternative Investment Market of the London Stock Exchange. Investors in our funds come from all over the world and include both individuals and institutions.
This year’s conference will draw about 100 participants, only a few less than last year. We expect there will be a very high level of interest among the participants at our conference, as they face tough decisions in the coming time.

They will want answers to three main questions. How have the VinaCapital funds performed this year? How will the funds cope with the current environment? And most importantly, is Vietnam still where they want to invest their money, and if yes, in what sectors?

While these questions do not have simple answers, we can say that despite the difficulties VinaCapital remains very happy to be focused on investing in Vietnam.

Fund performance tested in 2008

VinaCapital’s three largest funds are closed-end funds that trade on the stock exchange. As such, even if their investments are sound, they are subject to market sentiment that can see their share prices rise and fall regardless of our assets here in Vietnam. And this is what has happened in September and October of 2008, market sentiment fell sharply and our funds saw their traded values plummet.

But what about our actual investments? Thankfully, we can report to our investors that our funds have very strong portfolios, including investments in companies and projects that have remained profitable throughout this difficult year. Only Vietnam Opportunity Fund, which invests in equities, has seen its asset value drop noticeable in 2008, as a result of the poor stock market performance.

In terms of how our funds will cope with the current environment, there are many strategies that we will discuss with our investors. Most importantly, none of our funds have any debt at fund level. This is a crucial point, because the sharp decline in closed-end funds around the world is due to the perception that they are heavily leveraged. That is not true in our case.

In general, we feel our funds are well-placed despite the dire market conditions. VinaLand Ltd, for example, is invested in a large number of real estate projects that gives us flexibility in prioritising those that are best-placed to profit from the ongoing demand for retail, hotel and residential space. Vietnam Opportunity Fund has several options to free up capital to invest in Vietnam’s top blue chips, now trading at low prices.

VOF is also looking at government bonds, which have emerged as an excellent value in the latter half of 2008. Perhaps best-placed of all is Vietnam Infrastructure Ltd, which has a strong pipeline of projects and over $100 million in cash available for investment. The question then becomes whether Vietnam remains a good place to invest. Will the country recover faster than other markets around the world, or will the current growing pains see Vietnam lag behind the markets in other nations?

We believe that Vietnam’s lack of integration with the global financial world and almost no exposure to subprime investments should keep Vietnam on the sidelines of the ongoing world financial storm. In addition, consumer demand should remain strong for the foreseeable future, which will help domestic businesses remain solvent.

Furthermore, many of Vietnam’s exports are agricultural products that should not see significant demand declines, although commodity prices are currently falling. As Vietnam’s first oil refinery comes online next year, the country also stands to move up the value chain in the profitable oil sector. However, if the crisis worsens or is prolonged we can expect to see an impact on Vietnam.

Exports will be affected, and there may be a slower disbursement of FDI commitments and a repatriation of indirect investments through the sale of equities and bonds. VinaCapital and other investment funds will find it difficult to raise more money to invest here, given the restrictive credit environment around the world.

Focus on domestic growth

For the investments we will make soon, our choices will be critical in terms of protecting shareholder value in the short term and building wealth in the long run. VinaCapital will continue to stay away from export-oriented investments. We have not really focused on this sector in the past, and will continue to look first to companies that promote and benefit from domestic economic growth.

Domestically produced consumer goods, financial services, healthcare, education, tourism and technology are all sectors we remain bullish on. Property and infrastructure are also focus sectors, but in this case the quality of projects in terms of fundamentals like location is the determining factor in their potential for success. We will strive to find companies with strong balance sheets and good earnings prospects. The skill and dedication of management teams is also very important, particularly in difficult times.

With the VN Index now at a very low 370-380, valuations of Vietnamese companies are very attractive, with price-to-earnings ratios of about 10x, comparing favourably to regional markets with PEs ranging from 12-15x such as Hong Kong, China, Japan, Malaysia and Indonesia. The third quarter saw improved economic figures in terms of inflation and the trade deficit. Company earnings this year are sharply lower, however, and it will probably take several quarters of solid economic figures before positive sentiment returns to the market. The potential for growth is there, but it will likely be well into 2009 before the market makes a strong rebound.

In chaos, opportunity emerges

Earlier I invoked Rothschild’s quote about ‘blood in the street’. To be clear, no one wants to see chaos in world financial markets, and we should remember that real human beings have suffered because of the mortgage crisis in America and the spread of the credit crisis around the world. But in troubled times there is always opportunity, and investors should always view their role as searching out the best way to grow their money and, by extension, grow national economies.

Vietnam remains this region’s most dynamic emerging economy – based on a young, increasingly well-educated population; a stable political regime and rich natural resources tied to a long coastline in the heart of Asia. The world’s hottest economic sectors – oil, agribusiness, tourism – are all among Vietnam’s leading earners. Look for the market to stabilise in the coming months, and then look closely at the opportunities that emerge.

(*) Horst Geicke is chairman of VinaCapital Group, established in 2003 and now Vietnam’s leading investment management and financial services group, with over $1.8 billion in assets under management. He has been an active investor in Vietnam for over 15 years. Geicke is also the chairman of Hong Kong’s Pacific Alliance Group.

By Horst Geicke (*)

Vietnam to allow dual nationality

2008-11-17T02:50:00.000+01:00

HANOI (AFP) — Vietnam has amended its nationality law to legalise dual citizenship, a change that could affect many in the Vietnamese diaspora of more than three million people, officials said Friday.

The legislature of the communist country on Thursday passed a revised law that maintains Vietnam's long standing single-nationality principle but, for the first time, allows for a number of exceptions.

The change means that many post-war refugees and other overseas Vietnamese who have become citizens of second countries can officially reclaim their lapsed Vietnamese nationality without losing their new citizenship.

"Those who apply to regain Vietnamese nationality can retain their foreign citizenship if they have justified cause and with permission from the state president," reported the state-run Vietnam News Agency (VNA).

The law also says that children born overseas to at least one Vietnamese parent will be able to claim citizenship of the Southeast Asian country.

The amendment brings the decade-old law in line with what has long been common practice, as many Vietnamese immigrants in the United States, Europe, Canada, Australia and elsewhere hold two or more passports.

Vietnam has in recent years stepped up efforts to lure back overseas Vietnamese or 'Viet Kieu' -- many of whom still harbour a deep distrust of the state they once fled -- along with their capital and expertise.

Many of them fled their homeland during and after the Vietnam war, which ended in 1975, often surviving harrowing journeys as boat people followed by years in crowded refugee camps to start new lives in about 100 countries.

The VNA report said a strict single-nationality rule "no longer conforms to real-life, practical situations" and had led to many violations.

The text of the amended law said that those who regain their Vietnamese nationality are "assured... all rights of citizenship and must obey all citizens' duties towards the state and society according to its laws."

This would suggest that those who regain their Vietnamese nationality will enjoy full rights, such as being able to buy property, but may also be subject to obligations such as military service for males.

However, the law also states that further government decrees will be issued to clarify some of the finer points of the amended law.

National Assembly deputy and Vietnamese historian Duong Trung Quoc told AFP legislators had debated whether those who regain citizenship could buy property, vote in elections and would have to do military service.

"These are not simple issues and deputies only dealt with them in principle," he said. "Ensuring their full rights to citizenship is a huge task.

"Legal conflicts will be dealt with on a case-by-case basis and in concrete circumstances, depending on Vietnamese laws and international conventions signed by Vietnam."

National Geographic: Hanoi’s Old Quarter And Hoi An In 110 Historic Places

2008-11-15T03:16:00.002+01:00

Hoi An ancient town

Every five years, the American-reputed magazine, National Geographic, releases its ranked list of 110 historic destinations in the world. From Vietnam, Hanoi’s Old Quarter and the ancient town of Hoi An are both on the list.

This year, the number-one destinations on the list include Wachau valley and Welk monastery (Austria), Rideau Canal (Canada), Ghent City (Belgium), and Nikko (Japan). At the bottom of the list are the City of Central (USA), and Phnom Penh (Cambodia).

Vietnam’s Hanoi ranks at the 94th while Hoi An is at the 83rd position.

Here are National Geographic’s comments about Hanoi: “"The old part of Hanoi is attractive but is becoming very busy, commercial, and somewhat over-developed. Pedestrian zones are recommended."

"Hanoi is not a Hong Kong or a Ho Chi Minh City (Saigon), or a Shanghai undergoing constant high-rise construction. Surprisingly, some of the back streets in the old French Quarter and the strip parks around the inner lakes retain immense charm."

"The parks and public areas are very well maintained, and the visit to Ho Chi Minh's tomb is still an exceptional experience."

"The 36 Streets area of Hanoi is lively and full of charm, but low on authenticity. The Thang Long citadel is authentic but presented without interpretation and therefore meaningless; in fact, boring to visit. Other so-called historic sites in Hanoi are all modern reconstructions. The problem in Hanoi is that while the city is beautiful and full of charm and an easy urbanity, the story told to the tourist is heavy handed and just not historically accurate."

About Hoi An, it wrote: “"A great place to be when the tourism buses have left in the afternoon."

"Authentic, accurately restored, and well-managed small town that has been brought back from sure death by culture-tourism industry. The problem is that it is just too small to accommodate all the tourists who want to visit it."

"What makes it unique is the historical blending of cultural influences."

"Beautiful architecturally, but the whole town has been 'repurposed' as a shopping opportunity for tourists; ultimately not a satisfying experience to visit."

China-Vietnam ties remain more sour than sweet

2008-11-15T03:16:00.001+01:00

Written by Roger Mitton

Friday, 14 November 2008

A long-simmering squabble over the Paracels and Spratlys heats up again

Despite official attempts to paper over their differences, the historically fractious ties between Beijing and Hanoi have recently taken a turn for the worse over a flock of geographically insignificant but strategically important dots in the South China Sea that are claimed by every country that abuts them.

The disputed islands, known to the west as the Paracels and Spratlys, lie amid strategic sea lanes and lucrative fishing grounds and are believed to harbor rich oil and gas deposits. Although Brunei, Malaysia, Taiwan and the Philippines are also claimants, the major dispute is between China and Vietnam, who assert sovereignty over almost the entire island chains.

Last December, after China planted new markers on the Paracels, Hanoi isued a rare public rebuke and officially sanctioned raucous street protests outside the Chinese diplomatic missions in Hanoi and Ho Chi Minh City. Beijing angrily reasserted its right to the islands and warned the Vietnamese not to go too far. Calling the islands by their Chinese names, foreign ministry spokesman Liu Jianchao said: "China has indisputable sovereignty over the Xisha and Nansha islands, and we have all the historical and legal evidence to prove it."

So the maritime skirmishes and the deep-rooted animosity has continued unabated.

In the latest incident, a Norwegian-registered vessel hired by Russian interests to undertake offshore oil exploration work for the Vietnamese was intercepted by Chinese naval ships and ordered to leave the area or risk being fired upon.

The Norwegian boat promptly left the area, exacerbating the chagrin of Hanoi, which was still festering from a decision by the US oil giant ExxonMobil to suddenly terminate its joint oil exploration plans with PetroVietnam. ExxonMobil's decision in July, like that made by its fellow American oil company ConocoPhilips in May, was due to pressure from Beijing, which made it known that any company seeking to exploit the disputed offshore region could kiss goodbye to any plans to do business with China.

To reinforce its hardening position, China reportedly dispatched five naval vessels and two submarines to the area around the Paracels earlier this year. More recently, some military sources say they believe China may deploy a JIN Class 094 nuclear submarine to the area, although others are doubtful since the seas around the islands are relatively shallow and viewed as unsuited for deep water submarine activity.

Still, the effect of China's toughening stance has meant that the energy-starved Vietnamese, who desperately want to develop the offshore oil and gas deposits, have once again been left fuming. Vietnam Communist Party members expressed their anger at the situation in no uncertain terms at the hurriedly-called party plenum on Oct 2-4 in Hanoi. Just prior to the plenum, Deputy Foreign Minister Vo Dung was dispatched to Beijing as a special envoy of the Hanoi leadership to deliver a Note from Vietnam about the state of bilateral ties.

In unusually strong wording, the Note referred to several sensitive issues, including the recent incidents in the disputed areas of the South China Sea and the threats against the foreign oil companies hired by Vietnam.

The Vietnamese state-controlled press reported that the deputy minister and his Chinese counterpart engaged in "frank discussions on the East Sea issue."

Afterwards, the two sides said they had agreed to set up a comprehensive strategic partnership in line with the motto "friendly neighborliness, comprehensive cooperation, durable stability and future-oriented vision." Precisely what this nebulous agreement will mean in practice is unclear.

Certainly, the omens are not good, if the question of the far less sensitive land border demarcation is anything to go by. When the deputy minister returned to Hanoi on Sept 27, he reported that both sides had agreed to speed up work on the demarcation of this 1,350-kilometre (840-mile) land border in order to complete it by the end of this year – a deadline set a decade ago.

But the Vietnamese remain doubtful that the deadline will be met. Furthermore, they claim the Chinese are duplicitous – repositioning markers that have already been put in place and turning a blind eye when their citizens plant crops and even bury bodies on the Vietnamese side.

Hanoi has decided that it cannot sit idly back and accept the stiff-arm tactics of the Chinese, particularly in the disputed offshore areas. And it has been moving to solidify other strategic alliances. Russia, the United States and India have all been actively cultivated – and have responded positively,since they view Vietnam as a potential hedge against the dominance of China in the Asia Pacific region.

Shortly before the October party plenum convened in Hanoi, Vietnam's defence minister visited Russia and Belarus, two of Vietnam's key suppliers of arms, naval equipment and military hardware. Later last month, the first ever US-Vietnam security dialogue was quietly held and further security sessions are planned.

The key issue of US oil companies being forced by China to pull out of the offshore waters claimed by Vietnam was on the agenda at the security dialogue, as it was when US Deputy Secretary of State John Negroponte visited Hanoi in September. Sources familiar with the talks say Negroponte made no attempt to hide his sympathy for Hanoi's position and that furthermore the US would do what it could to support Vietnam, short of openly antagonizing China.

This tacit support led Hanoi to subtlely alter the arrangements for the visit of the American guided-missile destroyer USS Mustin last month.

US Pacific Command (PACOM) sources confirm, the USS Mustin, which has 32 officers and 348 crew and is part of the US 7th Fleet, was originally scheduled to visit the port of Ho Chi Minh City in mid-October. But after China's threatened attack on the Norwegian oil exploration vessel, Vietnam asked the Americans to re-route the ship to Danang's Tien Sa port instead.

Washington happily agreed, knowing full well the significance of the change.

Not only is the High Command of Vietnam's 5th Military Region headquartered in Danang, but so too is the High Command of its Navy Zone No. 3, which patrols the disputed offshore region around both the Paracels and the Spratlys. Although the US vessel was officially only visiting to participate in community relations projects and for its crew to play a volleyball game against seamen from the Vietnam People's Navy, the symbolism of its visit to Danang at that time was lost on no one.

Said the USS Mustin Commanding Officer, Cmdr. James Jones: "This visit emphasizes the growing cooperation between the United States and Vietnam."

SACOM sources, who confirmed that they have also been checking into the reported skirmish involving the Norwegian vessel, said that the re-routing of the USS Mustin for its Oct 18-21 visit to Vietnam was timed to send a clear message to China.

Having sent that message, Vietnam's Prime Minister Nguyen Tan Dung left for China to attend the 7th Asia-Europe Summit. He pointedly arrived in Beijing on Oct 21, a day earlier than originally planned. That enabled him to have an extra day before the summit began in order to discuss the sovereignty flare-up with his Chinese counterpart Premier Wen Jiaobao and to protest the action taken against the Norwegian vessel.

It was Dung's first official visit to Beijing since becoming prime minister back in July 2006. Observers say the delay of more than two years before visiting the capital of his country's giant northern neighbor bespeaks volumes about the hyper-sensitive relationship between China and Vietnam. The impact of his delay was compounded by the fact that during the past two years Dung not only found it more important to visit places like Dublin and Canberra before Beijing, but that he pointedly decided to make his first overseas visit as PM to China's regional rival Japan.

Such slights, and they were clearly intended, and certainly noted in Beijing, reflected the depth of animosity that all Vietnamese feel towards China and the extreme sensitivity of any moves relating to Sino-Viet relations. Still, during their meeting, Dung and Wen did reportedly under oversee the signing of a strategic cooperation agreement between their respective state-run oil companies, China National Offshore Oil Corp and PetroVietnam, but the precise terms of the pact were not revealed.

And perhaps most significantly, the agreement itself was not released at the completion of Dung's bilateral talks on Oct 22 as is normally done, but instead it was delayed until after the ASEM summit ended on Oct 25, the day Dung left China. When it was eventually released, the agreement stated in vague terms that both sides hoped to increase economic cooperation and boost bilateral trade to US$25 billion by 2010.

While the overall amount is relatively large, it is massively in favour of China. Last year, Vietnam's trade deficit with China hit $9 billion and it is expected to reach $13 billion this year.

In contrast, Vietnam's increasingly warm ties with the US are firmly anchored by a large trade surplus with America which reached $12 billion last year. In fact, trade with the US now constitutes around 20 percent of Vietnam's exports, while that with China is only 15 percent.

Vietnam's trade and overall relations with Taiwan are far better than those with mainland China. Taiwan remains one of the top three investors in Vietnam, while the mainland is down at number ten. Indeed, there are more flights from Vietnam to Taiwan than to mainland China.

So, despite last month's vaguely-worded joint agreement, the atmosphere between Beijing and Hanoi regarding sovereignty over the offshore remains as poisonous as ever. But as a partial antidote to the poison and in a bid to assuage Chinese fears over its growing naval ties with the US, Russia and India, Hanoi has just agreed to allow the Chinese Navy training vessel Zheng He to pay a short visit to Danang starting on November 18.

In recent years, there have been many port calls by naval ships from India, Thailand, Australia, France, Japan and the US, but this will mark only the second time since Hanoi and Beijing established diplomatic ties in 1991 that a Chinese naval vessel has visited Vietnam. Aware of sensitivies, the Vietnamese have carefully arranged for the Zheng He's program to exactly mimic that followed by the USS Mustin last month. Its officers will meet Danang municipal leaders and their military counterparts, while crew members will play vollyball with local seamen.

While this fraternal jollity ensues, however, websites in both nations continue to crank out virulently nationalistic messages that display the disputed offshore areas as entirely their own sovereign territory and show the other side attempting to make a bullying landgrab for them. And ironically, while Prime Minister Dung appears to make conciliatory gestures by signing the cooperation pact and approving the Zheng He visit, the fact that he studied in China during the late 1960s when schooling was difficult in North Vietnam due to the American bombing campaign, means that he must be extra careful in not appearing to be too pro-Chinese.

No Vietnamese leader can maintain his standing in the party and among the general public without taking a firm stand on the sovereignty dispute with China. Some years ago when Dung visited to his old school in Guanxi province, the Chinese media carried extensive reports of the event with photographs of the garlanded Vietnamese leader; but no reports or pictures appeared in the state-run media back home.

Posco Looks To Expand As Rivals Stall

2008-11-15T02:59:00.000+01:00

Market Scan

Tina Wang, 11.14.08, 7:12 AM ET

Undeterred by the global slowdown, South Korean steel maker Pohang Iron & Steel, better known as Posco, has set its sights on expanding in Vietnam, despite the failure on environmental grounds of its initial proposal for a billion-dollar steel mill there. It considers Vietnam a good opportunity to expand globally, even as rivals' growth plans stall as a result of weakened demand.

Posco, the world's fourth-biggest steel maker by output, may be in a better position than its competitors to weather further price declines in prospect as China allows its own steel producers more leeway to export.

In a reversal, the Vietnamese government prohibited Posco from building a $5.4 billion steel mill at Van Phong Bay, a picturesque, tourist-frequented area along the country's south-central coast, the country's state media reported Friday. Posco's proposal, originally greenlighted by local authorities, sparked an outcry among residents, environmentalists and tourism operators.

Posco "will still be able to build another mill, but they're currently looking for a new site," the location of which is still unclear, said Lee Chang-mok, a Seoul-based analyst for Woori Investment & Securities. A plant of such scale takes four to five years of construction before production comes onstream, he said.

Posco is being aggressive about overseas expansion while others pull back on projects, in response to steel prices having halved from their peaks in July. Bigger rival ArcelorMittal is said to be delaying construction or capacity expansion plans in India, Canada and Romania, while Japan's JFE Holdings is reportedly mulling suspending new steel mill investments in Brazil and Vietnam.

Meanwhile, China is reversing its policy of discouraging the outflow of domestically manufactured steel; previously, it had aimed to keep commodities within its borders to feed the country's industrial boom. With economic growth having slowed to lows not seen in years, Beijing will roll back taxes on exports of cold-rolled, galvanized and other high-value-added steel starting Dec. 1, the Ministry of Finance said Thursday. A surge of output from China would further drive down the prices that South Korean and Japanese steel makers can command. Lee said, however, that Posco's manufacturing costs are 20% less than the global average, thereby cushioning the impact.

Lee forecast that Posco's profit would come in at 6.5 trillion won ($4.6 billion) in 2008 and 6.1 trillion won ($4.4 billion) in 2009. In Seoul trading Friday, Posco shares closed 3,500 won ($2.51), or 1.1%, lower, at 318,500 won ($228.71).

Chinese Warship To Make Vietnam Port Call

2008-11-14T04:59:00.000+01:00

AGENCE FRANCE-PRESSE

Published: 13 Nov 06:40 EST (11:40 GMT)

HANOI - A Chinese warship will next week make a port call in central Vietnam as part of efforts to boost military ties between the communist nations, a government spokesman in Hanoi said Nov. 13.

News of the November 18-22 visit follows a meeting between both countries' premiers in Beijing last month at which both sides, despite a history of distrust and conflict, pledged closer bilateral cooperation.

"This visit will help promote the friendship and cooperation between the two ministries of defense," said foreign ministry spokesman Le Dung.

Dung said that the ship's commanders would meet leaders of the central city of Danang as well as Vietnamese senior naval and army officials, while the ship's crew would play a football match while on shore.

China and Vietnam are communist allies but have a history of animosity and fought their most recent border war in 1979. Last year a Chinese naval ship reportedly fired at a Vietnamese fishing vessel in disputed waters.

Both are among countries laying claim to the Spratly islands in the South China Sea, believed to be rich in oil and gas reserves, and both claim sovereignty over the Paracel islands, which are occupied by China.

At their October meeting, premiers Wen Jiabao of China and Nguyen Tan Dung of Vietnam agreed on a series of steps, including collaboration on oil exploration and information exchanges by the two armed forces.

Vietnam expert Carl Thayer said the Chinese port call next week would be the first to Vietnam since November 2001 when the People's Liberation Army's guided missile frigate Yulin docked in Ho Chi Minh City.

"It's highly significant because of the reported build-up of tension last year in the South China Sea and the attempts this year by the party chiefs and prime ministers to prevent incidents in the South China Sea from damaging bilateral relations," said Thayer of the Australian Defense Force Academy.

"They have had four our five joint naval patrols in the Gulf of Tonkin, and this is a continuation of steps to build trust between the two navies."

The visit comes one month after guided missile destroyer Mustin docked at Danang in the latest of a series of American port calls designed to boost relations between the former enemies.

US Congressman opposes opening Vietnamese consulate

2008-11-11T06:53:00.001+01:00

U.S. Rep. Al Green joined leaders of Houston's Vietnamese community in opposing plans to open a Vietnamese consulate here, citing concerns about the country's human rights record.

In a letter sent Monday to the U.S. State Department, the Houston Democrat wrote that opening a consular office in Houston could "undermine" the U.S. government's efforts to persuade Vietnam to improve religious and political freedom.

In addition, Green wrote that opening a consulate in Houston would "represent an affront" to the region's Vietnamese community, which numbers nearly 85,000 and has rallied against the proposal. The plan was first announced this summer during a visit to Houston by Vietnamese Prime Minister Nguyen Tan Dung, sparking protests that drew hundreds of Vietnamese.

Al Hoang, a Houston attorney and president of the Vietnamese Community in Houston and Vicinity, said community organizers have collected more than 15,800 signatures on a petition opposing the opening of a consulate. Hoang likened it to "having a German concentration camp in the middle of a Jewish community. That's exactly what it is like."

The State Department did not return phone calls Monday. Pham Tung, a spokesman for the Vietnamese Embassy in Washington, said negotiations are continuing between the two governments, calling efforts to delay the opening based on allegations of human rights abuses "unfair."

"The relations between the two countries has improved so far, and opening of the Consulate General in Houston will further improve the relations," Tung said. "It's unfair to try to delay or hinder the opening."

U.S. trade with Vietnam topped $10 billion in the first eight months of 2008. In 2007, when Vietnam joined the World Trade Organization, its trade with the U.S. topped $12 billion.

President Clinton lifted the embargo on Vietnam in 1994. The U.S. established a liaison office there in January 1995 and normalized relations six months later.

"We want Vietnam to prosper," said Hoang, who immigrated to the U.S. from Vietnam in 1975. "But not only in the economy. In the spirit, in the soul. We want people in Vietnam to enjoy what we enjoy in the United States — freedom. That's what we want."

Hoang said the community has serious reservations about the country's actions when it comes to human rights and religious and political freedom.

In his letter to the State Department, Green cited a Human Rights Watch report that found last year to be "characterized by the harshest crackdown on peaceful dissent in 20 years."

In its 2007 report on human rights practices in Vietnam, the U.S. State Department describes the government as an authoritarian state ruled by the Communist Party of Vietnam. The report also said the government prohibited political movements and arrested activists.

Last year, a Houston-based Vietnamese human rights group erected a billboard calling for "Human Rights for Vietnam Now!" with an iconic photo of a plainclothes Vietnamese guard muzzling religious leader Father Nguyen Van Ly during a government trial.

The local Vietnamese community is one of the largest international populations with no consular office in Houston. More than 75 countries, many with significantly smaller populations than Vietnam, have consulates or consul generals in Houston, including the Kyrgyz Republic and Namibia, according to the Greater Houston Partnership. Vietnamese immigrants living in the U.S. generally rely on a consulate in San Francisco, opened in 1997, or the embassy in Washington to get visas and other documents.

susan.carroll@chron.com

Vietnam, Central African Republic establish diplomatic ties

2008-11-11T06:52:00.000+01:00

HANOI, Nov. 10 (Xinhua) -- Vietnam and the Central African Republic have officially established diplomatic ties, the Vietnam News Agency reported here on Monday.

A joint statement was signed by Vietnamese Deputy Prime Minister and Foreign Minister Pham Gia Khiem, and Central African Minister of Foreign Affairs, Regional Integration and Francophone Affairs Dieudonne Kombo-Yaya in Hanoi on Monday.

At earlier talks, the two FMs placed great value on the establishment of Vietnam-Central African Republic diplomatic ties, describing the move as a turning point in bilateral relations.

They expressed their determination to further develop bilateral relations for their people and for peace, stability, cooperation and development, both regionally and globally, the agency reported.

Khiem affirmed that Vietnam attaches importance to developing friendship and mutually-beneficial cooperation with African nations, including the Central African Republic.

The Central African Republic Foreign Minister said that, within the framework of his country's South-South cooperation program, top priority is given to promoting friendship and cooperation with Vietnam in the Asian region.

He affirmed that as an agriculture-driven country, the Central African Republic would love the sharing of experiences in coffee plantation, rice farming, and aquaculture with Vietnam.

The Central African Republic is also eager to cooperate with Vietnam in the fields of energy, textile and garments, footwear, and pharmacy, the foreign minister added.

Shipping fee plunging, pushing Vietnam's firms against the wall

2008-11-11T04:18:00.000+01:00

15:42' 10/11/2008 (GMT+7)

VietNamNet Bridge – The shipping fee has dropped by 90% just over the last three months after a long period of skyrocketing. The downturn in shipping fees has been described as terrible and unprecedented over the last few decades.

No one could imagine that the dry carriers with the tonnage of 40,000 to over 100,000 tonnes could see such a sharp fee decrease of 90%

Ta Hoa Binh, Director of Dong Do Shipping Company, said that this is the most terrible decrease in the last few decades of the world’s shipping history. The periodic ups and downs of shipping fees is a normal thing in business, but Binh said he has never seen such a plunge.

No one could imagine that the dry carriers with the tonnage of 40,000 to over 100,000 tonnes could see such a sharp fee decrease of 90%. It happened within just one week that the time chartering fee for bulk cargo ships with the tonnage of 74,000 DWT fell from $40,000/day to $19,000/day.

At the time when the shipping fee was at its highest peak, the time chartering fee of this kind of ship reached $70,000/day, while it is now hovering around $10-12,000/day.

Since the beginning of July, the average shipping fee has decreased by 30-70%. Small ships still receive regular small orders, while big tonnage ships seemed to have no consignments to carry.

Container carriers have also seen their fees decrease sharply, slightly less of the shipping fees of big tonnage ships. Currently, only oil tankers can keep the fee fixed as single hull tankers have been prohibited by the International Maritime Organization (IMO). As many new double hull tankers have not been built, oil tankers still have many jobs to do.

Binh said that the sharp fall of shipping fees have been anticipated for the last two years because of many reasons. He said that the sharp falls of shipping fees have been attributed to the global economic recession, which has led to the sharp falls of cargo in the last few months. However, this is just one of the reasons.

The direct reason, according to Binh, is that a lot of single hull tankers, which are unable to meet the requirements set by IMO’s convention, have been turned into large cargo carriers, which has led to the excessive carry capacity.

Experts have warned that the ‘shipping fee storm’ will have severe impacts on Vietnam’s shipping industry. As Vietnam’s fleet is not big and it does not have stable clients, when the tonnage capacity excess occurs, Vietnamwill be eliminated as the weak rival.

Meanwhile, Vietnam’s fleet has been built with loans rather than businesses’ own capital, and therefore Vietnamese enterprises have been put under the hard pressure of paying debts. The enterprises, which have only invested in large tonnage ships and will see the sharpest falls in shipping fees, will suffer the most. No one can say for sure what will happen if the market continues to plummet.

Vu Huu Chinh, General Director of Vosco, one of Vietnam’s biggest shipping firms, said that Israeli ship owners have decided to keep their ships idle because of overly low shipping fees. Chinh said that Vosco, the company that has its brand name well known in the world’s shipping market, also finds it very difficult now to find cargo for large tonnage ships.

Nguyen Van Hanh, Director of Vinalines, said that it is now a very difficult period for Vietnam’s shipping firms, and that it will require a big exertion to survive the difficulties. Representatives from Vinaship also said that it just strives to break even while not dreaming of making profit, something they haven’t done in the last three months of the year.

The lifebuoy for Vietnam’s shipping firms is the long term contracts on time chartering that were signed before. However, the lifebuoy may go flat if the fee decreases continue for a long time as the clients who charter ships may break contracts.

There would be two choices for Vietnamese firms and their clients in case the shipping fee continues dropping; either to cancel contracts and accepting compensation, or to continue chartering but with lower chartering fee. In both cases, Vietnamese ship owners will be put at a disadvantage. The worse scenario could occur when the foreign chartering partners announce the bankruptcy.

Japan's Denso to Build Auto Parts Facility in North Vietnam

2008-11-10T10:51:00.000+01:00

HANOI, Nov 10 Asia Pulse - The Hamanakodenso Co Ltd, a subsidiary of the Japanese Denso Corporation, established a new company last month to produce auto parts in Hung Yen Province.

The new company, Hamaden Vietnam Co Ltd (HDVN), is scheduled to begin operations in June 2010 with 1.3 billion yen (about US$12.6 million) in capital.

The company will initially invest around 2.2 billion yen (about $21.2 million) to build a factory to produce automotive sensors and solenoid valves in Thang Long Industrial Park 2 in the northern province of Hung Yen.

Construction of the factory is expected to begin in February 2009 and to be completed by September 2009.

The factory is expected to create approximately 800 new jobs by 2012.

The factory will produce sensors for the ASEAN market, as well as solenoid valves for world-wide markets, except for Japan.

The sensors will include those used to control engine air-intake, and the solenoid valves will be used to send vaporised gasoline from the tank to the engine.

HDVN is Hamanakodenso's second overseas company. It's first is a production company in Indonesia that produces horns.

The Denso Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components.

Customers include major global car-makers. World-wide, the company employs around 119,000 people in 32 countries and regions, including Japan.

Consolidated global sales for the fiscal year ending March 31, 2008 totalled $40.2 billion.

Vietnam has attracted many Japanese auto parts suppliers, including Takanichi Vietnam Company, the Yazaki FDS Vietnam Ltd Company and the Harada Vietnam Ltd Company.

Cambodia and Vietnam agree rail link: Foreign Minister

2008-11-10T03:58:00.000+01:00

PHNOM PENH (AFP) — Cambodia and Vietnam have signed a deal to link their railways, Cambodia's foreign minister said Saturday, helping revive long-running plans to link Asia by rail.

Foreign Minister Hor Namhong said China would help Cambodia with the railroad link to Vietnam, which will cost more than 500 million dollars.

"China has promised to build the railroad from Phnom Penh to Vietnam as part of the project to create a link from Singapore to Kunming in China," Hor Namhong said on his return from regional meetings in Hanoi, Vietnam.

"The railroads are very important for Cambodia's economy because we can then export goods to other southeast Asian countries at low cost," he told reporters at Phnom Penh International airport.

Cross-border trade between Cambodia and Vietnam totalled 1.7 billion dollars in the first eight months of this year, Hor Namhong added.

Cambodia is linked to its western neighbour Thailand by a track that is no longer in use.

Cambodia's civil war only ended in the 1990s, and trains throughout the impoverished nation crawl along dilapidated tracks.

It has long been a dream to connect Asia by rail, and many of the gaps in the railway are in Southeast Asia, with only Singapore, Malaysia and Thailand operating cross-border links.

The Asian Development Bank has stepped in with funds to help overhaul Cambodia's railways, a project many hope will be finished within the next few years.

Vietnam Needs US$48 Billion To Develop Highways

2008-11-10T03:18:00.001+01:00

HANOI, Nov 7 (Bernama) -- Vietnam will need some US$48 billion for the construction of 20 highways with a total length of over 5,870km, according to a proposed scheme to develop the country's highways network between now and 2020 and beyond, which have been scrutinised by the Government.

Vietnam News Agency (VNA) reported Friday that at a seminar held here on Thursday, Deputy Prime Minister Nguyen Sinh Hung said developing the domestic road network, including the highways, is considered a matter of great importance for Vietnam to create impetus for socio-economic development.

Under the master plan, the trans-national express system will include two routes, the systems in the north and south will have six routes each, the system in the central and central highlands region will have three routes and there will be three routes in the beltways in Hanoi and Ho Chi Minh City.

The target of the plan, formulated by the Ministry of Transport, is to form a network of modern national highways linking key economic hubs, main border gates and important traffic points that is able to coordinate with other modern modes of transport.

The plan is expected to help tackle the issue of traffic jams, as well as effectively reducing traffic accidents, initially in big cities such as Hanoi and Ho Chi Minh City.

According to the plan, highway routes connecting key economic zones, major cities and their beltways, and big sea ports will be prioritised for investment.

Vietnam now has 18 highway projects in the pipeline, including six under construction or to begin construction next year. Many of these projects have received funding from international organisations such as the Asian Development Bank (ADB), the German Reconstruction and Development Bank (KFW) and the Japanese International Cooperation Agency (JICA).

At the seminar, Deputy PM Hung called on international donors to give more assistance, both financial and technological, in order to develop Vietnam's traffic network to meet increasing demand, reduce traffic accidents and minimise the impact on the environment.

The World Bank (WB) Acting Country Director in Vietnam Martin Rama pledged to increase levels of assistance to Vietnam in developing its transport infrastructure and to mobilise all available investment resources.

Martin Rama said the WB is ready to partner Vietnam in this area, financing and sharing experiences related to forming sustainable management and financial mechanisms.

According to a recent World Bank survey, Vietnam's rapid economic growth associated with a high-speed urbanisation process and an increasing number of transport facilities, has put unrelenting pressure on the existing road systems.

In addition, poor infrastructure and the high rate of traffic accidents are additional factors influencing Vietnam in its decision to build new roads.

-- BERNAMA

Beauty-pageant scandal rocks Vietnam

2008-11-10T02:59:00.000+01:00

Miss Vietnam lost her title after "government inspectors found that [she] didn't live up to their exacting standards," according toThe Wall Street Journal.

The scandal began when the Culture Ministry learned that Trần Thị Thuỳ Dung, the 18-year-old they crowned Aug. 31, is a high-school dropout. Apparently, that's a big no-no in the Vietnamese pageant system.

"If we didn't have the education requirement, then lots of girls would drop out of school to focus on beauty pageants, and we can't let that happen," Le Ngoc Cuong, head of the Performing Arts Agency, tells the paper.

They're having trouble finding a replacement to send to the Miss World pageant. VietNamNet has photos of two potential replacements.

Fri, 11/07/2008 - 5:14pm

The Wall Street Journal reports today that Miss Vietnam 2008, 18-year-old Trãn Thi Thuý Dung, was stripped of her crown after officials discovered she hadn't completed high school. The scandal puts Vietnam in a tough spot, as it might not have a viable contestant to send to the Miss World competition on Nov. 15th.

Vietnam -- a country that's taking the bad news very seriously -- has an interesting history when it comes to beauty competitions. After the country's first national pageant in 1988, the grand prize, a bike, was stolen from the winner. Last July, Vietnam played host to the Miss Universe contest, with Jerry Springer and Scary Spice hosting the awards ceremony.

And yet, there is no formal requirement that contestants must complete a certain level of education before entering, a fact that Vietnam's contest organizers concede. The reaction over Thuý Dung's lost title has thus been mixed and the public has rallied to her defense.

Although other national pageants don't have such stringent rules (the United States gives its contestant winners a six-month window to complete high school), Le Ngoc Cuong, a spokesman for the contest, views a high-school diploma as vital. Otherwise, "lots of girls would drop out of school to focus on beauty pageants," he said.

As for Thuý Dung, crown or not, she's behaving like a true queen, sending a healthy message to young ladies of the world: She's going back to school, and says, "I wish Vietnam can still find the right candidate to send to Miss World, even if it isn't me."

ACMECS summit begins in Vietnam

2008-11-10T02:58:00.001+01:00

Prime Minister Somchai Wongsawat on Friday participated in the official opening of the third Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy (ACMECS) summit, held in the Vietnamese capital.

The summit is being attended by the five greater Mekong sub-region member countries, including Thailand, Vietnam, Burma, Cambodia, and Laos.

Thailand plans to propose the issue of capability in food production and agriculture and to grant 100 scholarships to country members for further studies in the kingdom.

Mr Somchai said he believed that cooperation among the country members will bring about achievement of agreement and benefits to all.

Foreign Minister Sompong Amornvivat said that at the ACMECS meeting will adopt a declaration on the facilitation and promotion of trade, investment and tourism.

Thailand and Vietnam will also sign a Memorandum of Understanding to develop vocational training between the two countries, he said.

In addition, Thailand will push for transportation links, development of tourism, human resources, and cooperation in public health activities, he added.

Under the ACMECS cooperation framework, the private sector will participate in trade and investment and "One Stop Service" centers will be set up to facilitate border trade.

During unofficial talks between the leaders of the five countries on Thursday, they discussed their potential to be the producers of over half of the world's total rice production. Such cooperation could lead to cooperatively pricing rice and sharing technology to increase productivity. (TNA)

Vietnam's October car sales drop 37 percent on year

2008-11-08T04:31:00.000+01:00

HANOI, Nov 7 (Reuters) - Vietnam's October car sales fell by 37 percent from the same month last year to 5,679 units due to higher taxes and registration fees, an industry report said on Friday.

However, sales by the 16 cars makers operating in Vietnam in the first 10 months still jumped 64 percent from the same period in 2007 to a record 95,736 units, the Vietnam Automobile Manufacturers Association said in its monthly report.

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 August.

Toyota Motor Corp (7203.T: Quote,Profile, Research, Stock Buzz) retained its pole position among the manufacturers with Jan-Oct sales surging more than 30 percent from a year earlier to 20,351 vehicles.

Sales by Ford Motor Co (F.N: Quote, Profile, Research, Stock Buzz) revved up nearly 40 percent in the period to 5,613 units.

Pearl Research Forecasts the Number of Online Gamers in Vietnam to Exceed 10 Million by 2011

2008-11-07T06:37:00.001+01:00

SAN FRANCISCO, Nov 05, 2008 (BUSINESS WIRE) -- Pearl Research forecasts the number of users playing online games market in Vietnam to exceed 10 million by 2011, driven by rising incomes, increasing PC and Internet penetration rates, and a large population of youth that are actively seeking out entertainment content. These findings are contained in business intelligence and consulting firm Pearl Research's "Online Games Market in Vietnam" report.

Vietnam's economy has been growing by 7% in the past decade and is attracting significant investments from technology companies.

Pearl Research's key findings:

-- Approximately 50% of the total Vietnamese population is under the age of 25. This is an age range that is known for being tech savvy, making them a high priority demographic for digital entertainment companies. There are approximately 21 million Internet users in Vietnam with an Internet penetration rate of 23.5%.

-- In our interviews with Vietnamese gamers, many were spending 60,000 to 100,000 VND ($3 - $6) per month. In one high-end Internet cafe we visited, a few interviewees were spending an average of 500,000 VND ($31) per month. These consumers are driving the digital entertainment and online games market with virtual item purchases. Top online games in Vietnam can attract 200,000 users. The Internet cafes that Pearl Research visited in Vietnam were consistently crowded with users playing online games.

While Vietnam has a rapidly emerging games market, critical challenges include government regulations on online games, the worldwide slowing economy, developing infrastructure, and low income levels.

The "Online Games Market in Vietnam" report provides an in-depth analysis of the Vietnam online games market and contains an executive summary; 2007 to 2012 forecasts for the online games industry; inhibitors and drivers to growth; comprehensive socio-economic overview; discussion of key market players, and in-depth interviews with Vietnamese gamers. To purchase this report, please call (+1) 415-738-7660 or email research@pearlresearch.com.

About Pearl Research

Pearl Research, a business intelligence and consulting firm, specializes in the Internet and technology markets with a special focus on emerging markets and platforms. Based in San Francisco and China, Pearl Research publishes in-depth research reports and provides customized research and consulting services. Visit http://www.pearlresearch.com or call 415-738-7660 for more information.

SOURCE: Pearl Research Contact

Pearl Research  Jeff Yip, 415-738-7660 ext. 4  pr@pearlresearch.com

ABB to expand its presence in Vietnam

2008-11-07T06:29:00.001+01:00

By La Société - November 05, 08 at 17:15

ABB

ABB wins $34-million power order in Azerbaijan
ABB signs $20-million power contract in Albania
ABB Full Service contract to improve efficiency of paper mills in Finland
ABB - Strong execution lifts Q3 net income 26%
ABB wins marine orders worth $75 million

ABB will build a new factory in the country

Zurich, Switzerland, Nov. 5, 2008 - ABB, the leading power and automation technology group, will be holding a ground-breaking ceremony on November 11, in Vietnam at Tien Son Industrial Zone, Tu Son District, Bac Ninh Province, one of the attractive areas for foreign investment. ABB has committed to invest nearly $30- million in this new facility, which has been licensed by Bac Ninh Industrial Zones Management Authority.
The new factory will be built on an 87,000m² land and is expected to go into full operation by the end of 2009. It will produce medium voltage and high voltage power products and will serve both the local and the overseas markets. The new plant is part of ABB’s ongoing initiative to build new capacity in the fast growing Asian market and to further develop its presence in Vietnam.

The location in Bac Ninh province was decided thanks to the support of the local authorities and because of the availability of local skilled labor force. On a long term, ABB plans to hire several hundreds of local new employees. ABB offers a solid program to train its employees and provide them with the adequate skills to perform jobs in line with ABB’s global standards.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 120,000 people.

Global Financial Crisis Reduces Vietnam Apparel Exports-Indus

2008-11-06T04:20:00.000+01:00

HANOI --Vietnam may not realize its target of earning $9.5 billion from exporting garment and textile products this year, due to the global economic crisis, an official said Tuesday.

Many countries have cut back on imports from Vietnam following the financial crisis, said Le Quoc An, chairman of the Vietnam Garment and Textile Association.

"Total export revenue will be slightly over $9 billion in 2008," said An.

An said exports to the U.S. will see the largest decline in terms of expected export revenue in the last three months of this year.

He said exports to the U.S. market will be around $5 billion this year, compared with a target set earlier this year of nearly $5.5 billion.

"We anticipate that Vietnam's garment exports will face more difficulties in 2009," An said.

Garment and textile products are Vietnam's second biggest export earner after crude oil. The country earned $7.64 billion from exporting the products in the first 10 months of this year, up 20.3% on year, according to figures released earlier this year by the General Statistics Office.

-By Vu Trong Khanh, Dow Jones Newswires; 844 35123042; trong-khanh.vu@dowjones.com

Vietnam external debt sustainable, JPMorgan Chase says

2008-11-06T03:46:00.000+01:00

Vietnam’s external debt position appears sustainable, even as the cost of protecting from default increased, JPMorgan Chase & Co. said.

Spreads on credit-default swaps for Vietnam’s external debt almost quadrupled by early last week from August, before narrowing to about twice the August levels, Matt Hildebrandt, an economist at JPMorgan Chase in Singapore, wrote in a research note.

An increase in the price of credit-default swaps indicates deterioration in the perception of credit quality.

The country’s total external debt at the end of last year was about US$19.3 billion, of which about $2.6 billion was privately held, and annual debt-servicing costs were about $900 million, JPMorgan Chase said citing the country’s Ministry of Finance. The figures compare favorably to Vietnam’s foreign reserves of about $22 billion, Hildebrandt wrote.

The “rapid rise in spread levels appears to have reflected general investor sentiment toward emerging markets rather than specific concerns about Vietnam’s debt profile,” Hildebrandt wrote. “The government has successfully reestablished macroeconomic stability since concerns emerged earlier this year.”

The pace of growth in Vietnam’s trade deficit, which surged earlier this year and caused concern about a possible balance-of-payments crisis, has slowed along with the pace of import expansion, according to JPMorgan Chase. The trade deficit may narrow in 2009 from this year, Hildebrandt said in a telephone interview Monday.

Not Vietnam-specific

“When there were concerns about Vietnam earlier in the year, they were on fundamentals like the trade deficit,” Hildebrandt said. “But there’s nothing specific about Vietnam causing the rise in spreads on credit-default swaps.”

The chances of Vietnam defaulting on its debt or having to turn to the International Monetary Fund for assistance are “pretty slim,” he said. The IMF will this week consider loan applications from Hungary and Iceland, and is also looking at a request for assistance from Ukraine.

“Vietnam is relatively well-placed to weather the storm,” said VinaCapital Investment Management Ltd., in a report released on October 31, citing slowing inflation, rising foreign direct investment, and expectations that the Ho Chi Minh Stock Exchange’s VN-Index may rally next year.

The government has cut its growth forecast for the year to 6.7 percent from 7 percent, according to a statement on November 1. JPMorgan Chase expects growth of 6.3 percent this year, followed by 6.2 percent in 2009.

“The economy still faces notable headwinds from tight monetary and fiscal policies, slowing global demand, and negative wealth effects from falling equity and property prices,” Hildebrandt wrote in his note.

Foreign workers flock to Vietnam

2008-11-05T09:08:00.001+01:00

is fast becoming one of the best places to work in Southeast Asia for both white and blue-collar foreign workers.

Though official statistics are hard to come by, it is estimated that 90,000 foreigners are now living and working in Vietnam .

It is not just project experts or high-ranking executives making the move, but manual laborers also come here on a tourism visa.

Jesper Lund, managing director of CSR Vietnam Co. Ltd. said foreigners could find jobs with reasonable wages easily in Vietnam when they would have to toil under high pressure and the threat of job insecurity in developed countries.

Many international companies are expanding business in Vietnam in response to the strong development of its economy and industry.

Many Japanese companies are determined to deepen their business ties to Southeast Asia, where Vietnam is considered by many to be the region’s best destination, according to Takayuki Nanbu and Katsuiji Taki, Japanese engineers working at the Bien Hoa and the Binh Duong industrial parks.

Aside from white-collar workers, manual laborers, especially those from Africa and the Middle East, are making the move to Vietnam to find jobs.

In the past two years, some 5,000 workers from Africa and the Middle East have worked in sales, delivery and porter services and construction with an average daily income of 100,000 VND (6.1 USD) in Vietnam.

Foreign blue-collar workers gather in small groups in HCM City’s Binh Chanh and Tan Phu districts as well as Binh Tan district’s An Lac ward, said Tran Van Chien of HCM City-based Tat Dat Co Ltd.

According to the online job site VietnamWorks.com, the number of foreign workers in the first quarter of this year rose 67 percent over the fourth quarter of last year.

Moreover, requests for foreign labour in the second quarter were 17 percent more than the first quarter.

This increase of foreign labor means companies have more options for the personnel, said Nguyen Thi Van Anh, personnel manager of the Navigos Group’s Human Resource Consulting and Training Centre.

However, businesses should still commit to a long-term personnel strategy that includes local workers, especially in high-ranking positions, she said. (PNA/VNA)

Vietnam's foreign investment skyrockets to $58 billion

2008-11-04T09:29:00.000+01:00

VietNamNet Bridge - Foreign direct investment has soared to US$58.3 billion this year, according to the Ministry of Planning and Investment.

In October the amount committed was US $2 billion in 68 new projects and another US $169 million in existing FDI projects.

Deputy Minister of Planning and Investment Nguyen Chi Dung said FDI for the whole year is likely to be US $62-65 billion.

Money actually brought in this year is US $9.1 billion, a 38 per cent year-on-year increase. The average investment per project is US $61.6 million.

Ninh Thuan Province led the 43 destinations in the country that have attracted FDI this year. Just one Malaysian steel project accounted for US $9.79 billion or 16.8 percent of the total registered investment.

Ba Ria-Vung Tau Province ranked second with US $9.3 billion while HCM City was third with US $8 billion.

Of the 900 plus projects this year, 512, involving US $32.5 billion, are in industry and construction.

The service sector accounts for around 400 projects and US $25.5 billion, with the rest in agriculture-forestry-fisheries.

Dung said the current global financial crisis would affect the volume of foreign investment in future.

The uptrend in FDI has been accompanied by continued problems with prolonged labor strikes, pollution, and squander of land and energy because of lack of checks and balances in licensing projects and incompetence of local authorities.

Dung said the Government is also concerned that some foreign investors overstate their investment amount so that their license is processed faster.
Experts have urged the government to improve the capacity to absorb capital by focusing on large projects licensed in the last two years.
(Source: SGGP/VNA)

Vietnam's central zone needs skilled labor

2008-11-04T08:02:00.001+01:00

Central economic zones in need of highly skilled labor
The Dung Quat Economic Zone, home the nation’s first oil refinery, is in urgent need of highly skilled people, a seminar heard Sunday.
Many local and foreign economists and managers attended the seminar held in central Quang Ngai Province to discuss “Human Resource Development for the Dung Quat Economic Zone in the Integration Period.”
Key speakers at the seminar said the supply of high-skilled labor for the economic zone was much shorter than demand.
They said relevant agencies and enterprises must join hands in sourcing and providing suitable training in order to meet the increasing demand for skilled labor.
Reported by Hien Cu

Vietnam's southern wharf a gangland

2008-11-04T06:55:00.000+01:00

Stick-wielding men threaten two reporters from Thanh Nien and Vietnam News Agency (far right) in Ba Ria-Vung Tau Province’s Tan Thanh District on Wednesday. The reporters were investigating claims that a violent gang had taken over the district’s Cha
Two reporters were threatened by a gang of stick-wielding men who sank a boat at the Cha La wharf in the coastal province of Ba Ria-Vung Tau after it docked without paying due “fees.”
Tong Thanh T. and his gang from Tan Thanh District levy unofficial fees ranging from several hundred thousand dong to VND1.5 million (US$89) per month for cargo and passenger boats that use Cha La wharf.
On Sunday, the gang rammed a sand ferry-boat and broke open its bow as it anchored without paying money.
Three weeks earlier, they severely beat a ferryman because he carried a passenger from the wharf without asking permission.
On Wednesday, local boatman Huynh Van Chung carried two reporters – one from Thanh Nien and one from Vietnam News Agency – from Cha La to Saigon SSA port, in the same district.
The reporters had come to investigate claims made by locals that a gang was ruling the area with violence.
Five members of T.’s gang followed in a speedboat.
As Chung docked, the gang rammed their boat into Chung’s and were about to beat him with canes and clubs when he jumped into the river.
The thugs then wrecked and sank Chung’s boat and were set to assault the reporters when Chung’s mother arrived to beg them to stop.
Ba Ria-Vung Tau and Tan Thanh District police showed up after the gang had left.
No ferryman dared to bring the reporters back to Cha La wharf afterward and they had to call officials at a border post in Phu My Town for a ride.
On Thursday, one of T.’s gang members Nguyen Van Chum, 38, told Tan Thanh District police he and two other members – Khang and Phuong – had attacked Chung and had threatened reporters on Wednesday.
Despite the brazen admission of guilt, police have yet to do anything about any of the incidents related to intimidation and violence at Cha La wharf.
Reported by Nguyen Long

Hamaden Vietnam will create approximately 800 new jobs by 2012

2008-10-31T11:12:00.000+01:00

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.