Listed firms make modest 2011 plans

 

Most listed enterprises in Vietnam have set low earning targets for 2011, wary of surprises in the macro economy next year.

 

Ninh Hoa Sugar Co. (NHS) aims to gain VND60 billion in profit next year while it obtained up to VND100 billion in 2010 thanks to large stockpiling and sugar price hikes.

 

NHS general director Nguyen Thi Hoa said the enterprise could not predict developments of the sugar market with inflation, forex and interest concerns. “Production costs will move up sharply after we borrowed from banks with an annual rate of 19.2% early this month. Meanwhile, we have promised to buy sugarcane from farmers at high prices and will invest VND100 billion in upgrading production lines next year,” she said.

 

Hoa Binh Construction & Real Estate Corporation (HBC) expects to gain VND2.5 trillion in revenue and VND160 billion in after-tax profit next year after enjoying high revenue and profit figures in 2010. HBC estimates to gain VND133 billion in after-tax profit, or 40% higher than the 2011 target.

 

“The 2011 targets are not too high to be obtainable despite inflation and construction cost increases,” said HBC chairman Le Viet Hai.

 

Sacom Development and Investment Corporation (SAM), meanwhile, may not meet its 2010 plans due to some disappointing property projects and deductions for the forex risk management fund. The enterprise has earned around VND200 billion, or 40% lower than 2010’s target and down 20% against 2009.

 

“Next year’s targets will not be higher than this year given the risks of the macro economy, plus property has no signs of improving. SAM will also build a US$5.4-million plant next year,” said SAM general director Do Van Trac.

 

MOC wants an end to business licences in apartment blocks

 

The Ministry of Construction (MOC) has asked Hanoi authorities to cease issuing licences for businesses registered to have offices in apartment blocks.

 

Companies’ operations will affect households’ life at apartment blocks

 

The move is aimed to prevent problems that a number of apartment blocks are facing, particularly fire risks due to loose fire prevention and safety measures.

 

In a document sent to the Hanoi People’s Committee, Deputy Minister of Construction Nguyen Thanh Nam, cited a fire case at a 34 storey building in Trung Hoa-Nhan Chinh urban area. The incident was because of a company's negligence in safety standards.

 

Up to 50 out of 365 apartments of the 34-floor building at Trung Hoa-Nhan Chinh urban area are used as business bases and offices. The fire was due to an electrical spark from apartment No. 1908 which is the office of HT2D Software Company Ltd.

 

The company opened ventilation fans on October 31, 2010 (Sunday) to protect computers from humidity and as a result, the electrical spark happened and affected other equipment in the apartment.

 

With construction started in 2001, Nam Trung Yen residential area still lacks many infrastructure works. The area does not have basements for car parking and a number of apartments are used for sales and business activities. Around the residential area are pubs and parking lots impacting the living condition of local households.

 

Deputy Minister Nam also requested the Hanoi People’s Committee issue regulations on fire prevention and safety as well as use managing services to look over operations and ensure safety in apartment blocks.

 

Banking shares buoy indices

 

Earnings data from Sacombank helped lift sagging banking stocks yesterday, saving major indices from further declines.

 

Sacombank announced that it had earned VND2.2 trillion (US$104.8 million) in the first 11 months of the year, meeting 91.3 per cent of its target for the full year.

 

"Despite Sacombank only announcing an 11-month result, investors were pleased since the result was consistent with what they had expected about banking profits," said independent analyst Nguyen Anh Dung. "Some commercial banks even announced the completion of full-year targets a couple months back."

 

On the HCM City Stock Exchange yesterday, the VN-Index closed essentially unchanged at 473.05 points. The value of trades reached only VND 917.1 billion (US$43.7 million) on a meagre volume of 38.8 million shares.

 

The low volume of trades raised concerns that buying power wouldn't last long, Dung said.

 

"Day traders should be careful about participating now as the markets are uncertain and unpredictable," he added.

 

Gainers outnumbered decliners on the HCM City bourse yesterday by 119 to 99, with all banking stocks advancing, including VietinBank (CTG), up 2.8 per cent; Eximbank (EIB), up 1.85 per cent; Vietcombank (VCB), up just over 1 per cent; and Sacombank (STB), up 0.64 per cent.

 

Other blue chips rallied, as well, including insurer Bao Viet Holdings (BVH) and Phu My Fertilisers (DPM).

 

On the Ha Noi Stock Exchange, the HNX-Index closed up by 0.22 per cent to 111.43 points. Volume remained low at 36.2 million shares, worth VND704.6 billion ($33.6 million), while Kim Long Securities Co (KLS) claimed the position as most-active share with 6.4 million traded.

 

Foreign investors continued as net buyers on both exchanges, picking up a net of 2.1 million shares worth VND74.2 billion ($3.5 million). In HCM City, they accounted for over three quarters of the trading volume in shares of Vietinbank.

 

Producing 6 million tonnes of seafood by 2015

 

The General Department of Fisheries, under the Ministry of Agriculture and Rural Development (MARD), organised a conference in Hanoi on December 28 to review the activities in 2010 and define a plan for 2011-2015.

 

In 2010, total output of fisheries industry reached over 5.1 million tonnes, increasing by 3 percent compared to the initial target, and total exports reached nearly US$5 billion, up by 6 percent.

 

The fisheries industry aims to produce 6 million tonnes by 2015. To achieve this plan, delegates agreed to introduce changes in exploitation and processing in bays, and islands, to reduce production cost and increase competitiveness of seafood products.

 

Vu Anh Tuan, Deputy Head of the General Department of Fisheries, said research need to be promoted and it was also necessary to increase quality of seed and production technology.

 

He noted that to reduce risks for fishermen, the department instructed to improve the management and create an information system for fish boats and fishermen.

 

Dung Quat Oil Refinery produces 7 million tonnes of oil and gas

 

So far, Dung Quat Oil Refinery in central province of Quang Ngai has imported nearly 8.5 million tonnes of crude oil, produced over 7.2 million tonnes and sold 7 million tonnes of oil and gas.

 

Binh Son Company has coordinated with Petrolimex, PV Oil and Petec in time to distribute the refinery’s products into markets. The amount of oil and gas in stock has reduced from 300,000 tonnes to 100,000 tonnes.

 

Nguyen Hoai Giang, General Director of Binh Son Company, said all output was consumed well.

 

Hanoi’s production plan to stablise the market

 

The Hanoi Municipal People’s Committee on December 28 issued a plan to boost production, stabilise the supply and demand for goods and services for the coming Lunar New Year Festival and the first quarter of 2011.

 

The committee asked producers and businesses to cut down production and transportation costs while maintaining the quality and prices of products and not to increase prices under the pretext of market fluctuations, natural disasters or diseases.

 

Those who received capital from the Hanoi city authorities will have to strengthen their stock of goods, expand their resources and distribution networks.

 

They are also required to organise mobile stands selling Vietnamese goods to the outskirts and industrial parks in case there is a sudden change in prices.

 

The Hanoi Department of Industry and Trade will strengthen its activities to prevent and handle cases of smuggling, fraud and fake products.

 

Technology needed for VN tea aroma to spread

 

Though being the fifth largest tea exporter in the world, Vietnam has sold mostly raw tea and is advised to invest in both varieties and technology to bring added value for the product.

 

This was emphasised at a seminar to seek ways for the tea sector’s development in the central highlands province of Lam Dong on December 26-27. The seminar was part of the third Tea Festival.

 

The Vice President of the Vietnam Tea Technology and Science Association Dr. Pham S said the tea sector should make the best use of science and technology to make breakthroughs in its development.

 

He noted that local tea producers have not yet paid due attention and investment in packaging and promoting their trademarks, warning them of a harsh competition that comes from small and medium-sized foreign businesses with high-quality tea strains and modern processing know-how.

 

Tea tree is planted on about 130,000 hectares in Vietnam and more than 6 million people are involved in growing and processing tea.

 

However, the Ministry of Agriculture and Rural Development’s Plantation Department has found that varieties of high-quality tea are grown on just a small proportion of growing acreage, hence production is not effective.

 

It also referred to the unplanned development of small-scale private processing establishments that use sub-standard equipment and the lax monitoring of quality of both input tea and tea products as factors to make Vietnamese-made tea products less competitive in the world market.

 

Vietnam’s tea products are present in 110 countries and territories with Pakistan being the largest importer, followed by Taiwan (China) and Russia.

 

In 2009, the country raked in US$178 million from export of 133,000 tonnes of tea and expects to ship 120,000 tonnes for US$200 million this year.

 

Binh Duong aims to attract more FDI

 

Officials in charge of investment and trade and industry in southern provinces and cities have met with Vietnamese trade counsellors overseas to shares experiences in attracting foreign investment.

 

At the conference held in Binh Duong southern province on December 27, participants were informed about foreign businesses’ interest in investment in Vietnam in general and in each southern locality in particular.

 

They showed their optimistic about the increasing flow of foreign direct investment (FDI) into Vietnam in 2011, with southern provinces to play the leading role.

 

The conference agreed that many things have been done to improve the connectivity between domestic agencies and Vietnamese trade promotion offices abroad. Local authorities should provide more information on their investment attraction policies and conditions of infrastructure and human resources.

 

According to the Ministry of Planning and Investment, the country attracted US$18.6 billion in FDI in 2010 despite the global economic slowdown.

 

Binh Duong province alone, with good technical infrastructure, saw nearly US$1 billion poured into 104 newly-licensed projects and 135 existing projects. The province so far has 2,006 FDI projects with a combined registered capital of US$13.7 billion.

 

Seven tea producers use B’Lao tea brand name

 

At the closing ceremony of the 3rd Lam Dong Tea Festival on December 27, seven tea producers were granted certificates to use the brand name of B’Lao tea.

 

They include Tam Chau Limited Company, Phuong Nam Limited Company, Lam Dong Tea Joint Stock Company, Rong Vang Tea Joint Stock Company, Ngoc Bao Tea Joint Stock Company, Tram Anh Tea and Hang Son Dien Tea Company.

 

All of them are famous businesses in Bao Loc city and Bao Lam district of Lam Dong province.

 

The Vice Chairman of the Vietnam Tea Association, Doan Trong Phuong, said along with the Moc Chau tea, the B’Lao tea was certified by the Vietnam Intellectual Property Department.

 

Nhon Trach 2 power plant’s first turbine in operation

 

The first turbine of the Nhon Trach 2 thermal power plant, located in the southern province of Dong Nai, on December 26 began generating and supplying electricity to the national grid, three months ahead of schedule.    

 

This is a joint effort of the Vietnam National Oil and Gas Group (PVN) and the project’s contractors - Vietnam Machinery Erection Corporation (Lilama) and PetroVietnam Construction Joint Stock Corporation and considered as a gift to welcome the 11th National Party Congress.

 

The ahead-of-schedule operation of the first turbine is aimed at ensuring the electricity for the country’s economy, especially in the context that 2011’s six-month dry season is forecasted to be in short of 1.4 billion kWh.

 

According to PVN, the group itself and the contractors are making great efforts to operate the second turbine in the first quarter of 2011 and put the combined cycle into operation by the end of next year.

 

The US$706 million power project, kicked off in June 27, 2009 with Nhon Trach II PetroVietnam Power Joint Stock Company as the main investor, includes two turbine groups with a total capacity of 500MW and uses Nam Con Son gas as fuel for generating power.

 

The project is jointly invested by PVN, Electricity of Vietnam, Vietnam National Coal-Mineral Industries Group and Vietnam Posts and Telecommunications Group.

 

Fubon Financial climbs into life insurance market

 

Fubon Life Insurance (Vietnam) Co. Ltd, wholly owned by Taiwan’s Fubon Life Insurance (Taiwan), was given the green light by Vietnam’s Ministry of Finance on December 23.

 

The new company will be based in Hanoi with a branch in Ho Chi Minh City. It is scheduled to start operating in the first quarter of 2011.

 

Fubon Life Insurance’s vice chairman Kenneth Shih said the Vietnamese market offered “large room to develop”.

 

Shih said 5 per cent of Vietnam’s population have purchased life insurance policies, whilst a ratio of up to 40 per cent should been reached within next five to 10 years.

 

“It shows a great potential for growth as an emerging life insurance market,” said Shih.

 

The Fubon Life Insurance’s joining comes amid the increasingly market tapping of several foreign insurance firms into Vietnam. Ten out of 11 life insurance firms are foreign ones, of which haft has widely expanded their roots across the nation for 10 years.

 

However, the long-established firms such as Prudential, Manulife, AIA, Dai-ichi Life Vietnam and ACE Life, alone have a 68.1 per cent market share. Meanwhile, the new players are sharing the tiny portion of 1.3 per cent market, according to statistics from Vietnam’s Department of Insurance Management and Supervision.

 

“We do not see it [the tiny market shares for the new firms] as the problem as the growing market is to bring new great opportunities for firms who join it, even for the later comers,” said Shih.

 

Shih said the problem was insurance agents’ skills to change Vietnamese people’s behaviour to use life insurance products.

 

“Vietnamese behavior is similar with Taiwanese in past 15 years when the people were still strange with life insurance services,” Shih said “However we had successfully improved this problem and hope to do it again in Vietnam.”

 

The new company is to be developed under the build-operate-transfer (BOT) model. Taiwanese executives and insurance agents, comprising the short-term and the long-term teams, are arriving Vietnam to recruit and train local employees. Within six months the short-term teams will repatriate, followed by the long-term ones in about two years and transferring operations to local employees within next two or three years.

 

Shih expects Fubon Life Insurance Vietnam to gain a market share of 5 to 10 per cent for the “build” period. For long term, the expectation is set at some 25 per cent as it is in Taiwan.

 

Fubon Financial is Taiwan’s second largest financial group with total assets for 2009 stood at over $100 billion. Its activities extend across financial sectors with arms cover several Asian nations, among them China and Thailand.

 

Fubon Life Insurance Vietnam was launched after the Taipei Fubon Bank (Vietnam) and Fubon Insurance (Vietnam) set up by the group in 2007 and 2008 respectively.

 

JGC in line for key refinery deal

 

A consortium led by Japanese JGC Corporation is tendering for the construction of the $6.2 billion Nghi Son refinery in Thanh Hoa province.

 

An oil and gas sector source told VIR that the consortium, including Japanese Chiyoda Corporation, French Technip SA, Korean SK Engineering and GS Engineering, was in pole position in the bidding list.

 

Others in the mix are a consortium consisting of Samsung, Hyundai, Technicas Reunidas, led by Saipem and another consortium made up by Dealim, Technimont and Petrofac.

 

The source added that the investor, the Nghi Son Company, was implementing contract negotiations and related conditions with the leading consortium.

 

This will be the largest engineering, procurement and construction (EPC) contract in Vietnam’s oil and gas sector and the investors decided to issue one EPC package contract.

 

The contract, according to PetroVietnam general director Phung Dinh Thuc, would be signed at the end of February 2011, after the investor finishes its technical appraisal report of the proposed contractors.

 

A week ago Japanese news wire Nikkei said the JGC consortium had won exclusive negotiating rights for the contract without saying where it got the information.

 

However, JGC Vietnam general director Hayashi Terumitsu denied it had won the contract.

 

“The client [Nghi Son Company] is evaluating the proposal from our team and Saipem and its partners,” Terumitsu said.

 

JGC in October, 2010 was chosen as consultant for the expansion of Vietnam’s first refinery Dung Quat in Quang Ngai province.

 

The government last June allowed PetroVietnam to raise Dung Quat’s annual capacity from 6.5 million to 10 million tonnes.

 

JGC was previously involved in a joint venture with France’s Technip and Spain’s Tecnicas Reunidas to build the Dung Quat refinery where JGC was responsible for Residual Fluid Catalytic Converter, LPG Treater and Naptha Treater areas.

 

Nghi Son is the second refinery in Vietnam and also the first refinery with foreign partners’ involvement, expected to be put into operation in 2014. PetroVietnam has a 25.1 per cent stake in the project, with Kuwait Petroleum International (35.1 per cent), Japan’s Idemitsu Kosan (35.1 per cent) and Mitsui Chemicals (4.7 per cent).

 

The project when finished will have a designed capacity of 10 million tonnes of crude oil a year, or 200,000 barrels a day, 1.5 times higher than the capacity of the existing Dung Quat oil refinery.

 

Once operational in 2014, the refinery will annually churn out 2.3 million tonnes of petrol, 3.7 million tonnes of diesel and a significant amount of liquefied gas for domestic use.

 

Workers refuse jobs at Delta industrial parks

 

With workers refusing to accept jobs in industrial parks in the Cuu Long (Mekong) Delta due to poor salaries and meal, accommodation and healthcare allowances, many employers are struggling to fill vacancies.

 

Phan Thanh Phi, head of the Long An Province Industrial Zones Authority, said 203 factories operating in 23 industrial parks in the Cuu Long (Mekong) Delta province, would need an additional 30,000 workers next year.

 

To put their needs into perspective, they employ only 45,500 workers now.

 

Their failure to increase wages to keep pace with the increasing prices had caused the high attrition of staff, Phi said.

 

"With their average monthly wage of VND2 million (US$100), the textile and garment and footwear industries have lost the highest number of workers."

 

Even the food provided to workers was not good enough to enable them to work for eight to 12 hours per day, he admitted.

 

In Can Tho, industrial parks needed a total of 10,000 workers and the figure would rise next year when more factories open and existing ones expand, the local Industrial Zones Authority said.

 

The workforce in the delta region was large enough to meet the factories'needs, but workers found it hard to make ends meet with monthly salaries that average VND1.3-VND2 million, Vo Thanh Hung, its head, said.

 

Many workers in textile and garment and seafood processing factories quit their jobs to work in HCM City and Dong Nai and Binh Duong provinces because of higher wages there.

 

The shortage of workers has also reached alarming levels in Ben Tre and Tien Giang provinces where workers get an average of VND1.8 million-VND3 million, including overtime, according to industrial zones' authorities.

 

To address the labour shortage, firms needed to hike wages and provide better food, accommodation and healthcare, Hung said.

 

Seaport for rent

 

Viet Nam will for the first time apply the model to manage a seaport infrastructure by leasing it to an operator through bidding, to the Cai Mep-Thi Vai International Port.

 

The Viet Nam Maritime Department under the Ministry of Transport has appointed the Overseas Coastal Area Development Institute of Japan (OCDI) as provider of consulting service for assisting the ministry to select a tenant who will operate the facility.

 

According to the deputy head of the department, Nguyen Ngoc Hue, leasing the port is the quick way to recollect investment capital, which will help lessen the burden on the State budget.

 

"The lease contract will go to the best bidder who offers the highest prices and the best business plan for exploiting the port's potential," said Hue.

 

He hopes operating experiences and capacities to attract customers of the selected candidate will also help boost the port prestige internationally.

 

Hue said it would be a failure if this international port would be able to draw only Viet Nam's exported commodities, which have been shipped through Hong Kong and Singapore before getting to their final destinations.

 

The total turnover from the commodities handling stands at a modest level of US$1 billion per year.

 

Cai Mep-Thi Vai International Port in southern Ba Ria-Vung Tau Province is invested by the ministry with almost VND11.5 trillion ($590 million) coming from Japan's Official Development Assistance (ODA). It is expected to be in use early 2012 as a modern deep-water sea port, capable of receiving container ships of up to 100,000DWT.

 

Binh Thuan looks to draw $6 billion in investment

 

The central province of Binh Thuan will seek to raise investment capital worth VND122 trillion (US$6.1 billion) for its latest five-year (2011-15) development plan, 2.7 times more than the previous one.

 

For the 2006–10 period, Binh Thuan mobilised VND44.5 trillion ($2.2 billion), three times higher than the outlay for the 2001-05 period, surpassing the set target by 6 per cent, the news bulletin Econet reported yesterday.

 

Of the VND44.5 trillion, VND11.43 trillion ($570 million), or 25.68 per cent, was sourced from the State budget for investment in traffic, irrigation, tourism infrastructure, water-supply system, education, healthcare and other projects in rural areas, particularly those inhabited by ethnic minority populations.

 

Through various incentive policies and by simplifying administrative procedures, the province was able to attract the remaining VND33.07 trillion ($1.65 billion) from both domestic and foreign private companies.

 

This year, the province recorded capital inflows of VND12.5 trillion ($625 million), 19 per cent higher than in 2009.

 

Binh Thuan also issued licences for 83 investment projects with a total capital of VND18.632 trillion ($931 million) this year, bringing the total number of projects in the province to 1,109 with a registered capital of VND116.1 trillion ($5.8 billion). Of these 79 are foreign-invested with a total registered capital of $1.6 billion.

 

While promising to create the most favourable conditions for investors to do business, the province has also urged investors to meet set deadlines. It has so far suspended 18 projects for undue delay.

 

The province is engaged in assigning priority levels for various projects in order to speed up work on site clearance work, compensation and resettlement of displaced residents.

 

Developments spring up on outskirts of town

 

More and more high income earners are moving to the outskirts of the capital and this has led to increased investment in luxury real estate projects.

 

While real estate projects on the central coastal are busy launching promotions and offering discounts to attract buyers, investors in small-scale eco-projects are also quietly raising their selling prices.

 

The latest survey by CBRE shows that investors are more likely to invest in new communities on the outskirts of big cities than in tourism projects in the central coastal cities. And this trend is particularly true for Ha Noi.

 

Dang Duc Thanh, a member of the Ecological Tourism Real Estate Association said he was no longer interested in tourism real estate any more due to high financing costs and slow returns.

 

Although he loved the sea and saw profit in such projects, the October decision by the Ministry of Planning and Investment and the Ministry of Natural Resources and Environment to impose stricter controls on tourism real estate projects had led him to rethink.

 

Small real estate projects on the outskirts of cities would be his choice, Thanh said.

 

Dang Hung Vo, former Deputy Minister of Natural Resources and Environment, said that demand for resorts had come with country's economy growth. Now people weren't just looking for short-term travel options. Many wealthy people could afford to buy a "second home" for holidays and weekends away.

 

Typical examples of these new projects include Top Hills Villas in Luong Son of Hoa Binh Province, and Queen Villas and Tan Vien resort in Ba Vi District, around 60 km west of Ha Noi.

 

Nguyen Thanh Trung, director of Viet Nam Archi Land said he believed that with the growing demand, his company would sell out all villas in the Green Villas 4 project.

 

Trung said the increase in price of his villas was a daring move as other investors were offering great promotions and discounts. He added that the rise in prices was based on the real value of his projects.

 

Fruit production plunges, prices to rise

 

Prices of green-skinned pomelos are risingWith unfavorable weather reducing fruit harvest by 50-80 percent in the Mekong Delta this season, the prices of many popular fruits are set to rise during Tet.

 

Mangoes, pomelos, and mandarins are all expected to be in short supply during the festival in February.

 

In Dong Thap Province’s Cao Lanh District, the main mango-growing area, many farmers are suffering their worst-ever harvest.

 

Vo Viet Hung of My Xuong Commune said the yield this season has been just 10-15 percent of the previous one’s.

 

In the Hoa Loc mango-growing area in Tien Giang Province, Huynh Van Het said he had 60 mango trees but only a few bloomed.

 

“I harvested 15-16 tons of mangos last  time but this year the output could be just 200-300 kg.”

 

He blamed it on the prolonged rains followed by hot weather and rather high difference between day and night temperatures which caused the fruits to dry up and die before maturing.

 

Luu Van Rang, a mandarin grower in Lai Vung District, Dong Thap, said output was just around eight tons from his 0.8-hectare garden compared to 27 tons last year.

 

Mai Quoc Hau, head of the district Agriculture and Rural Development Department, said 1,475 hectares of land are under sweet and pink mandarin, but because of the bad weather harvest during Tet will fall by 30-50 percent.

 

In Ben Tre Province, the land of the green-skinned pomelo, output is expected to be down by half.

 

As a result of the poor harvests, fruit prices have already begun to rise in some provinces.

 

Wholesale traders in Dong Thap have agreed to buy Lai Vung pink mandarin for VND16,000-20,000 per kilogram, VND7,000 higher than last year.

 

In Tien Giang, Hoa Loc mango farmers are likely to get VND70,000 per kilogram compared to VND50,000 last year.

 

Huynh Thanh Son, deputy head of the Cao Lanh District Agriculture and Rural Development, said mango prices have risen and will continue to do so since Tet is approaching.

 

Pomelo prices are also forecast to go up. Dam Van Hung, a trader in Ben Tre, said he bought the fruit for VND30,000 per kilogram.

 

The province, with nearly 3,000 hectares under pomelo, leads the country in growing green-skinned pomelo. Thus, the poor harvest here means an increase in price is inevitable, said a local official.

 

Travel agents booked solid for Tet

 

Most travel agents confirm that tours for the Tet or the Lunar New Year festival, which falls early February, have been fully booked for the entire weeklong Tet holiday.

 

The tourism market has shown signs of resurgence around the year-end and the lunar New Year period, with bookings for Tet tours increasing from 15 to 30 percent against last year, prompting travel agents to announce that they have stopped accepting bookings for future tours.

 

Some major travel companies like Saigontourist, Vietravel and TST Tourist said the number of tourists booking through the agencies’ branches increased by 30 percent and most travelers this year made registrations earlier than usual.

Ho Chi Minh City-based Fiditour have received more than 10,000 holiday makers, a year-on-year rise of 30 percent.

 

Tour prices this year have increased between 10 and 40 percent, which tour operators have attributed to higher service prices by their partners.

 

The price of tours to Thailand rose between 30 and 60 percent. Normally, a tour to Thailand cost about US$328, but during the Tet holiday season these tours cost between $438 and $538.

 

This year, Vietnamese holiday-makers seem to be favoring China, Japan, Thailand, Cambodia, Singapore, and Malaysia as destinations for outbound tours while the most popular domestic destinations are northern sites, as well as beautiful beaches in Nha Trang, Phan Thiet, Phu Quoc, Vung Tau or traditional festival venues across the country.

 

Vietnam garments losing market share at home

 

Imported garments are flooding Vietnam and are becoming ubiquitous at all outlets from shopping malls to roadside shops.

 

Locally-made clothing used to be popular in the country but now products from China, Thailand, South Korea, and Cambodia account for 40 percent of shelf space in shopping malls and supermarkets.

 

The domestic industry churns out garments that are poor both in design and fabrics, according to retailers, who also said domestic designers lag behind international fashion trends.

 

Vietnamese clothing is more suitable for middle-aged people, while imports from Thailand, China, and South Korea appeal to the young and fashion-conscious.

 

Some Vietnamese garments do appeal to the more fashionable – like those made by local brands NinoMaxx, PT 2000, and Blue – but they are more expensive than imports.

 

A pair of NinoMaxx jeans costs VND400,000-VND450,000 while a comparable Chinese or Cambodian product costs just VND200,000-VND300,000.

 

Besides, retailers prefer imported clothing because of higher margins – of 40-60 percent compared to the 25 per cent on Vietnamese clothing.

 

Sugar price to continue to increase

 

The price of sugar would continue to increase in the run up to Tet and through the first quarter of 2011 due to an expected sugar shortage, said the Ministry of Agriculture and Rural Development.

 

High demand for raw materials and the Viet Nam Sugar Association's predicted shortage of 300,000 tonnes of sugar in 2011, as well as the increase in the world sugar price, may push the price of sugar cane and sugar up on the domestic market in the near future, said the ministry.

 

Sugar currently stands at VND22,000-25,800 per kilo on the domestic market while the world sugar price is at a record high of US$800 per tonne.

 

However, the association expected local supply to reach 150,000 - 170,000 tonnes this month and increase further in the first quarter of next year to meet domestic demand.

 

The ministry has also permitted enterprises to import 250,000 tonnes of sugar to meet the high demand for the Tet holidays.

 

The association estimated that domestic production would reach 1 million tonnes of sugar for the 2010-11 crop, higher than the output of 889,000 tonnes for the 2009-10 crop.

 

PV