WTO center inaugurated in Vietnam

The only WTO Reference Center in Vietnam Tuesday started operations with technical assistance provided by the WTO Secretariat.

This 154th consulting facility located inside the Ministry of Industry and Trade’s Institute for Commerce Research in Hanoi will provide online a variety of reliable information and updates on trade policies of the WTO for government agencies, research and educational institutions, provinces and cities, and businesses.

It will also act as a bridge to bring technical assistance from the WTO and organize training courses for Vietnamese officials, whether online or offline.

The center has received 151 documents of 32 categories including glossary dictionaries of trade policies, information on trade talks, trade disputes and resolutions, trade agreements, annual reports, international trade statistics by the WTO, and other trade-related materials.

The WTO Reference Center program has been carried out by the WTO Secretariat since 1997 and more than 150 centers have been set up in over 100 countries.

Such centers aim at providing dedicated physical locations where relevant information on WTO can be accessed.

Vietnam Airlines braces for Tet tumult

To cope with the expected rush during Tet, Vietnam Airlines will open more five more domestic check-in counters at Hanoi’s Noi Bai Airport.

The additional counters will function from January 15.

Besides, economy class passengers will be checked in on the first floor and not the second floor as is normal, while business class and VIP passengers can opt for either place.

Tet, which falls in early February this year, is the most important holiday in Vietnam, and usually overwhelms transport networks around the country as people head home to their families.

A Vietnam Airlines source said many seats are still available on flights leaving from Ho Chi Minh to Hanoi and Da Nang until January 26 and in the reverse direction after Tet.

The carrier will start selling 15,500 tickets from January 17.

However most tickets to these destinations have been sold out during the peak period from January 27 to February 2, with just a few left on late night flights.

Vietnam Electricity plans $1 bln bonds overseas

State utility Vietnam Electricity plans to issue bonds overseas worth US$1 billion, a state-run news website said without giving details or a time frame.

The Hanoi-based group is awaiting Finance Ministry approval, the VnExpress.net news website quoted Duong Quang Thanh, EVN deputy general director, as saying late on Monday.

Two other Vietnamese conglomerates, coal and mineral firm Vinacomin and oil and gas group Petrovietnam, cancelled plans to issue bonds overseas worth between $500 million and $1 billion last year due to unfavorable conditions.

Standard & Poor's Ratings Services last month became the third major rating agency, after Fitch and Moody's, to downgrade Vietnam, potentially raising the cost of capital for the country and its companies.

The near bankruptcy of debt-laden state shipbuilder Vinashin and its default on a $600 million international loan in late December have exacerbated the problem.

EVN suffered from a loss of VND8 trillion ($410.4 million) last year due to low water levels in hydro-power reservoirs, which forced them to buy electricity at higher prices from fuel-run plants, Tuoi Tre newspaper said on Monday.

Vietnam lowers 2011 rice export target

Rice shipments from Vietnam, the world’s second-biggest exporter, may total about 6 million tons this year, a year-on-year fall of 11 percent, according to Vietnam Food Association (VFA).

The association cited unfavorable weather conditions and reduced acreage of farmland devoted to rice farming in the Mekong Delta region as major reasons for the decrease in supply.

Vietnam shipped 6.8 million tons of rice last year, bringing in US$3.2 billion in revenue. It was seen as an impressive year as rice exports surged in both output and value.

World rice demand will rise from 29 million tons last year to 31 million tons in 2011 as many countries have announced plans to increase their imports.

Tourists, or not tourists - that is the question

Thanh Nien newspaper in its January 8, 2011 print edition said the total number of international tourists to Vietnam last year stood at around 3.1 million, rather than the ambiguous 5-million figure, a record 34.8% increase over the year before.

In categorizing the number of international visitors to Vietnam by purposes of the trip, the tourism administration revealed that in 2010 there were 3.1 million international arrivals for tourism, 1 million coming on business trips, approximately 600,000 getting in for family visiting, and the remaining for other purposes.

Instead of saying the nation welcomed 3.1 million international tourists last year, VNAT has grossed the number and, inadvertently or not, misled the public by saying there were around 5 million ‘international arrivals’ to Vietnam in 2010.

In Vietnamese, ‘international arrivals’ (khách quốc tế) can easily be mistaken for ‘international tourists’ (du khách quốc tế). While the former means foreigners coming into a country for a variety of purposes, including family visiting, trading, investment, and possibly tourism, the latter refers to foreign visitors coming in for sheer vacation.

There is a basic difference between the two: how they spend money.

An investor comes to Ho Chi Minh City mainly for his or her business and normally spends a very short time doing some shopping or going sight-seeing. A businessman, similarly, just drops by a place and leaves it very quickly due to his limited time. They rarely use any tourist services.

Tourists, on the other hand, come to a place for just one purpose: tourism, i.e. for leisure and recreation.

Vietnam’s tourist industry should therefore be clear about its statistics, says Nguyen Van My, director of local tourist agency Lua Viet Tours.

We should differentiate between visitors arriving for tourism and for other purposes in order to properly assess the industry’s capacity, Tran Thuy Linh, an industry expert, says.

But La Quoc Khanh – deputy director of the Ho Chi Minh City Department of Culture, Sports, and Tourism – admits there has been as yet no analysis of the record of those who come to the country's southern hub just for tourism purposes.

The ambiguity in the long run can hurt the country’s industry since tourist agencies will count on those misleading statistics to plan their business, Thanh Nien concludes.

Vinashin inks deals to build 16 ships

State-owned shipbuilder Vinashin has secured deals worth $377 million for building 16 new vessels this year, according to the government website.

It already had contracts for 87 ships worth $1.38 billion.

The group has said it will focus on investing in facilities for support industries, improving product quality to meet the requirements of overseas clients, supplementing equipment, and enhancing the capacity of its shipyards.

The shipbuilder, which is in the process of restructuring, has transferred units and projects to the Vietnam Oil and Gas Corporation and the Vietnam National Shipping Line Corp.

It hopes to complete restructuring of 117 units this year and complete the task by 2013.

Construction works fence off businesses in HCM City

Despite the shopping season at yearend coming, many shops in town are incurring huge losses due to the increasing amounts of construction works on the street.

Many fashion shops, restaurants and hotels are isolated by digging works and green fences on many streets including Ngo Quyen, Au Co, Pham Van Hai, Luy Ban Bich, Thoai Ngoc Hau and Le Van Sy.

The traffic on Le Van Sy Street in Phu Nhuan District has almost been paralyzed for months since many construction works were set up, bringing down hundreds of businesses.

Pham Thi Lien, owner of a fabric shop on the street, said “a construction work was built in front of my shop, blocking the entry and covering my goods with dust”.

“I have proposed a 50 percent reduction of tax, equal to VND1 million per month. But the proposal rate can not offset the losses, which are up to 80 percent of the monthly average sales,” she said, adding she was considering to remove her business elsewhere.

“The shopping frenzy always comes at yearend. However, our sales have went down for two months since a construction work blocked the entry of my showroom. To cut losses, we had to fire many employees,” My Nhan, owner of a motorbike showroom on Au Co Street in Tan Binh District, complained.

Different from the crowded businesses on other streets, restaurants and hotels on Ngo Quyen Street in District 5 have been very quiet for nearly a year due to five big construction works.

Nguyen Huu Ai, a motorbike driver at Ngo Quyen – 3/2 crossroad, told Dau Tu Tai Chinh that “passengers earlier paid VND10,000 only for a ride to the Pham Ngoc Thach hospital. But now I have to charge more as I have to go around construction works”.

“Many regular customers, who usually stay in my hotel on their Lunar New Year holidays, refused to come back this year,” said Ly Ngoc Anh, owner of the Thuong Hai hotel at 93 Ngo Quyen Street.

“We also lost many visitors from Cambodia, who come to Ho Chi Minh City to take health exams at the nearby Pham Ngoc Thach hospital. Other hotels on the street suffered the similar problem.

“As cabs can access the street, many customers find themselves struggling to walk on the pavements, which now become place for motorbikes to go through.”

Analysts said the issue still lasts long as punishments for the slow construction progress of the contractors were not tough enough.

All digging work on the streets will be stopped and green fences removed to allow for free flow of traffic during the Lunar New Year season, which falls February 3, Thanh Nien news quoted the Ho Chi Minh City Transport Department as saying.

The department said the work for different infrastructure projects in the city will cease between January 18 and February 10, to clean up the city and facilitate transport during the first days of the Year of Rabbit, according to Chinese calendar.

Contractors are to return the digging spots to their previous condition, including refilling the holes, by January 26, the department said.

Steel industry calls for cutting interest rates

Steel producers complain the high interest rates are hurting them and are calling on the Ministry of Industry and Trade to facilitate a reasonable credit policy.

It will be appropriate if banks charge less than 16 percent compared to the current 18-19 percent, Pham Chi Cuong, chairman of the Vietnam Steel Association, said.

Steel prices could be volatile in the immediate future since EVN – the state-owned power supplier – said the power shortfall could worsen this year, he warned.

Last month major steel producers Vietnam Steel Corporation and Vinakyoei sought a hike in steel prices due to a rise in costs.

But the Ministry of Finance rejected the demand, saying they had hiked prices twice a month earlier, there had been no increase in input costs, and controlling inflation is its prime target.

Vietnam’s first commodity exchange opens 

The Vietnam Commodity Exchange (VNX) opened its doors for the first time in Ho Chi Minh City on January 11. 

VNX’s head office is located at 18-20 Phuoc Hung Street, District 5 and its transaction division located at 52 Nguyen Cong Tru Street, District 1.

VNX is the first commodity exchange to be license to operate within Vietnam under the decision 4596/GP-BCT of the Ministry of Industry and Trade (MoIT).

With a capital of up to VND150 billion (US$7.5 million), it is allowed to exchange all types of commodities that are regulated by the MoIT. It will focus on the three major products coffee, rubber, and steel.

VNX will manage transactions and provide businesses with financial tools, such as, trade insurance and ensuring a balance between supply and demand.

It will also provide businesses with information on current industrial and economic situations, as well as any consumer demands.

In addition, this commodity exchange will help producers insure against any pricing risks and be able to connect with other commodity exchanges around the world.

Thermal power plant to salvage exhaust heat 

A thermal power plant in February will break new ground and turn discarded heat into electrical energy from the Hon Chong Cement Plant in the Mekong Delta province of Kien Giang.

The Holcim Vietnam Cement Company on Monday signed an agreement with Sinoma Energy Conservation and the Standard Chartered Bank to build the Hon Chong Thermalpower Plant in Kien Luong District.

The 6.3 MW plant is estimated to cost US$28 million and scheduled to come into operation in August.

After completion, the thermalpower plant will generate 44 million kWh of electricity a year -- sufficient to operate the Hon Chong Cement Plant for 88 days; or put another way, enough electrical power to supply 18,300 households a year.

Hoclim Vietnam general director Gerhard Schultz said that this system would reduce about 15,000 tons of CO2 into the atmosphere each year.

Central province to get new airport

Central province of Thanh Hoa and the Civil Aviation Administration of Vietnam have announced the plan for the construction a new airport in the province.

The VND2.6 trillion (US$133.4 million) airport will be built in Hai Ninh Commune in Tinh Gia District, some 30 kilometer away from Thanh Hoa City.

In the first phase that is schedule to finish by 2020, the airport will open flight routes from Thanh Hoa to Gia Lam and Cat Bi in Hanoi, central Danang City, and southern Tan Son Nhat Airport in Ho Chi Minh City, with 250,000 arrivals and 10,000 tons of cargos every year.

In the second phase, which will quadruple the number of passengers and double the number of cargo that the airport can handle, there will be more flights to Central Highlands Buon Ma Thuot City and Dalat City and central coastal Nha Trang City.

There will also be flights to foreign destinations in the second phase.

100,000 businesses can continue to buy ‘red’ invoices

A regulation requiring all firms to print their own invoices may have taken effect January 1, but around 100,000 businesses, or a third of the entire number in Vietnam, can continue to buy them from the government this year.

All businesses that employ less than 10 people or are based in rural, poor, or disadvantaged places can buy the “red” invoices from the Ministry of Finance, Vu Thi Mai, deputy director of the General Department of Taxation, said.

The rest have to print them themselves but many have yet to place printing orders or been unable to do since printing companies are overwhelmed with orders.

However, from 2012, all enterprises, small and big, must make arrangements for their own invoices, Mai added.

The new rule is expected to both ease the government’s workload and ensure firms do not have to grapple with the red tape involved in buying the invoices from the government.

Hanoi-based foreign banks’ rep offices approved to lengthen lifespan

The State Bank of Vietnam has given the green light to lengthen the lifespan for representative offices of foreign banks basing in the capital city of Hanoi.

According to the approval, the representative offices of the Commonwealth Bank of Australia, JPMorgan Chase Bank, N.A and Industrial Bank of Korea will keep operational until 2015.

The operation duration of Commonwealth Bank of Australia's representative office in Hanoi will be extended till November 29, 2015.

The lifespan of JPMorgan Chase Bank, N.A in Hanoi will be extended to November 24, 2015.

The operation of representative office of Industrial Bank of Korea in Hanoi will be extended to October 13, 2015.

The decision has taken effect as of the signing date and is an integral part of the license of opening representative offices in Vietnam issued by the SBV's governor.

Property sector to offer more variety

Savills Viet Nam Ltd Company yesterday released its positive expectations for the property market in Ha Noi this year.

Savills Viet Nam's Ha Noi branch also expects the capital will receive more property products this year in major segments, such as offices for lease, serviced apartments, retail spaces, hotels, apartments for sale and villas/townhouses for sale.

Customers will benefit and have more options thanks to the higher product supply and the many incentives offered by owners in 2011, the company said.

Also yesterday, Do Thu Hang, head of research and consultancy at the company's Ha Noi branch, said the market saw better performance for almost all segments in the fourth quarter of last year.

In particular, Grade A serviced apartments performed the best among all grades with improvement in both average achievable rent and occupancy, Hang said. The occupancy rate of Grade A had a quarter-on-quarter increase of 3 per cent to 93 per cent for the last quarter.

The hotel segment saw better quarter-on-quarter performance because the end of the year was the high season, she said.

The revenue per available room (RevPAR) for the whole market increased 30 per cent against the third quarter and 6 per cent compared with the same period last year, she said.

Most of the current projects in the secondary market of villas and townhouses sold out in the last quarter. The prices of both typically continued to increase against the previous quarter and varied significantly across Ha Noi. Cau Giay District retained the highest prices for both villas and townhouses due to its superior technical and social infrastructure, Hang said.

PV