Draft decree aims to regulate cross-border internet activity
 
Viet Nam has licensed 102 internet enterprises as from April this year, of which 60 have begun providing services, according to statistics from the Ministry of Information and Communications. Another 850 websites and 130 social networks have been granted operating licences. The increase in internet services and use has led the Government to prepare new regulations to address growing issues related to internet use.

A draft decree on internet services and online information would replace Decree No 97/2008/ND-CP recently issued in August. Another draft decree would establish administrative sanstion for violations of internet regulations which would replace Decree No 28/2009/ND-CP of March 2009.

The first of these draft decrees would address for the first time obligations of foreign enterprises providing cross-border online information in Viet Nam via an offshore server. Such a foreign entity would be required to commit to co-ordinating with the Vietnamese Ministry of Information and Communications and accept the obligation to remove information that violates the laws of Viet Nam or provides personal information of users in relation to terrorist or criminal activity.

They would also be required to locate at least one server in Viet Nam for inspection, testing, storage, and supply of information as requested by the State bodies and in response to customer complaints over services. At the request of the ministry, the foreign entity would also be required to provide equipment for registering and storing information about persons who provide public information on a social network, in order to connect and verify information with the electronic identity card information database of the Ministry of Public Security.

Finally, the foreign entity must establish a representative office or notify the ministry of the name, address, telephone number, fax number and email address of its representative in Viet Nam.

Under the draft decree, all entities shall be responsible for the information they store, transmit, supply and spread online. Internet service users will also be subject to fines of VND5-VND10 million (US$236-$476) for providing, spreading or transmitting illegal information online.

Entities establishing websites shall also be required to supervise, examine and eliminate information in breach of the law either upon discovery of the breach or upon written request by competent authorities.

Under the draft decree on penalties, a foreign entity providing cross=border information to users in Viet Nam who violated any of these regulations would be subject to a fine of VND30-VND100 million ($1,428-$4,761).

South develops support industry

The authorities of the southern province of Ba Ria-Vung Tau proposed to build a zone for logistics services and support industry in the southern area of the Cai Mep Industrial Zone.

Sai Gon Construction Corporation, the investor of the Cai Mep Industrial Zone, had not put an investment in the southern area as it stated under its five-year plan in when it got approval from the provincial authorities.

The zone for logistics services and support industries would be developed by the Ba Ria-Vung Tau Urban Construction and Development Joint Stock Company.

Balance of payments: From deficit to surplus

Balance of payments shifted from deficit in 2009 and 2010 to surplus in 2011 and the trend continued the first half of 2012, according to the State Bank of Viet Nam (SBV).

Viet Nam enjoys a balance of payments surplus of nearly US$4.3 billion in Q1, US$2.169 in Q2 and US$6.451 billion in the first half of 2012. This marks a significant shift which helps recover the country’s foreign reserve, improve financial power, stabilize the exchange rate and ease inflation pressure.

The improvement can be attributed to a number of reasons, including the Government’s top priority to rein in inflation, stabilize macro-economy, ensure social welfare, restructure the economy and transform growth model.

Noticeably, the Government had been sticking to control inflation and stabilize macro-economy even when the consumer price index dipped for two consecutive months.

Moreover, the ratio of investment to GDP declined sharply from 42.7% in the 2006-2010 period to only 34.6% in 2012 and  projected to down to 33.5% in 2012.

Also, budget overspending fell from 6.7% in 2008 to 4.9% in 2011 and about 4.8% in 2012 and the current account gained surplus of US$4.774 billion in the first half of 2012.

Besides, trade balance posted a surplus of US$2.191 billion in Q1/2012; US$1.930 billion in Q2/2012 after suffering a deficit of US$ 2 billion in the same period last year.

The balance of payments surplus pushed foreign reserve to increase by nearly US$6.5 billion in the first six months. The surplus is forecast to continue to the end of this year thanks to recovering current account, excess of exports over imports, and stable remittances.

Garment makers seek to improve export turnover
 
The textile industry has called on its members to work harder to achieve its US$18 billion dollar export target this year.

This was announced yesterday by the secretary of the Viet Nam Textile and Apparel Association (Vitas), Le Tien Truong, who is also deputy CEO of the Viet Nam National Textile and Garment Group (Vinatex).

The call came after garment export turnover reached only about $10 billion in the first nine months of the year as demands of major markets declined.

"Vinatex is now seeking new partners in South Korea and Canada and increasing exports to mainland China, Turkey, Africa and the Middle East," Truong said.

The Ministry of Industry and Trade is also holding trade promotion programmes in Hong Kong, Thailand and Malaysia.

Truong added that Vinatex would support companies exporting high added-value suits, shirts and luxury pants.

He said Vitas would help establish distribution systems and brand names for companies.

The textile industry has been upgrading factories to produce high quality fabrics and products with higher export profits.

"The textile industry has been producing polyester fabric to cut down on imports. By 2015, 80 per cent is expected to be produced domestically," Truong said.

Better agricultural statistics needed

Viet Nam must improve the quality and quantity of its data on agriculture and rural areas if it is to continue meeting the demands of a growing population, said the Deputy Minister of Planning and Investment Dao Quang Thu.

Delivering his speech at the opening of the 24th Asia-Pacific Commission on Agricultural Statistics (APCAS) meeting in the Central Highlands province of Lam Dong on Monday, Thu highlighted the fact that the data was vital for effective planning and strategy.

Addressing the 85 delegates from 25 countries and international organisations taking part, Thu stressed that the event would help regional countries ensure the integrity of their agricultural statistics and draw up plans to implement the global strategy on agricultural statistics.

Jointly organised by the United Nations Food and Agriculture Organisation (FAO) and Viet Nam's General Statistics Office, the five-day event will look at ways to maintain the accuracy and quality of agricultural statistics, as they determine the nature of agricultural and rural development policies in the region.

Participants at the event will assess the current status of food and agricultural statistics in member countries, inform the member countries about the FAO activities in food and agricultural statistics during the preceding biennium, particularly in Asia and the Pacific and discuss new developments in agricultural statistics.

This is the first time that APCAS has been held in Viet Nam since the biennial event began in 1966.

Da Nang centre to develop new rice seed varieties

Central Hoa Tien Commune will be developed as a major rice variety centre for Da Nang city and the central coastal region, says UN Food and Agriculture Organisation (FAO) representative in Viet Nam Yuriko Shoji.

Shoji said at a workshop on establishing a rice seed production hub in Hoa Tien commune of Da Nang city yesterday that the project aimed at turning the commune into a centre of large-scale, high-quality rice seed.

The project, which has been supported by the India-Brazil-South Africa Dialogue Forum (IBSA) Fund for four crops in 2012-14 with a total budget of US$529,000, will help strengthen production capacity of the commune and increase its ability to expand the consumption market.

"Da Nang has been seen as rapid growth city in Viet Nam and the commune has been set as a centre of rice seed production which will ensure food security in the central region," Shoji said.

"It's the first project dedicated by ambassadors of India, Brazil and South Africa in Viet Nam," the South Africa's Ambassador to Viet Nam Ratubatsi Super Moloi said. "We take our responsibilities seriously to ensure the project is successful."

Hoa Tien commune is home of 4,000 farmer households on an area of 1,400ha.

"We hope to get technical and legal support from the project in producing high and safe quality of rice seed," said head of Hoa Tien co-operative Nguyen Thao.

"Our rice varieties have been used by the city's communes and neigh-bouring provinces as well as Laos. However, our production needs to be updated with new technology if we want to develop the brand name of our rice seed," he said.

"We hope that the project will help enhance the post harvest processing capacity and establish seed quality control as well as create a legal foundation for rice seed production," he said.

The project is scheduled to begin next month in preparation for the city's winter-spring crop 2012-13.

Vietnam’s GDP growth at 5.1 percent: IMF

The International Monetray Fund (IMF) has estimated Vietnam’s GDP growth in 2012 at 5.1 percent, 0.3 percent lower than its latest prediction in July.
    
In its October World Economic Outlook, the IMF said Vietnam’s GDP is likely to reach 5.9 percent in 2013 and 7.5 percent in 2017.

Its rate of inflation will be down to 8.1 percent in 2012 and 6.2 percent in 2013, from 18.1 percent in 2011.

However, the IMF said, it seems unlikely that Vietnam will be able to ease its monetary policies, unless it slows down the domestic demand through financial solutions.

Previously, in its October East Asia and Pacific Economic update, the World Bank revised Vietnam’s GDP growth rate down to 5.2 percent in 2012 and 5.7 percent in 2013, from 5.9 percent and 6.3 percent, respectively, as it predicted in May.

The WB said as Vietnam focused on curbing inflation in late 2011 and in the first half of 2012, investment growth has dropped dramatically but it might bounce back in the second half.

Israel, Vietnam boost trade ties

A seminar on Vietnam-Israel businesses will be held in Hanoi on November 5, according to the Ministry of Industry and Trade (MoIT).

The seminar, co-organized by the Federation of Israel Chambers of Commerce (FICC) and the African, West and South Asia Markets Department under the MoIT, aims to create favorable conditions for Vietnamese businesses to access the Israeli market and seek cooperation partners.

Participants will include leaders from the MoIT, Israeli Ambassador to Vietnam, and businesspeople from both countries.

Among key items Israel likes to import from Vietnam are garment and textiles, footwear, aquatic and agricultural products, machinery and equipment, rubber, diamond processing, computers and components.

In the first seven months of this year, bilateral trade turnover between the two countries reached US$253 million, up 52 percent compared to the same period last year.

Israel has so far invested in14 projects across Vietnam with a total capitalization of US$30 million.

Vietnamese ship seized in Dubai

The Vietnamese Embassy in the United Arab Emirates (UAE) has promptly worked with relevant agencies right after learning that a Vietnamese ship has been seized at Jeble Ali wharf, Dubai.

This is due to an economic dispute between the ship owner, Vinashinlines, and the National Shipping Service (NSS), a port agency.

The Consular Department under the Vietnam Foreign Ministry has sent a document to relevant agencies in Vietnam to ask the ship owner to supply the 19-crew member with necessary expense and urgently deal with the case in order to soon send the ship back.

Nguyen Dinh Thanh, Deputy General Director of the Vietnam National Shipping Lines (Vinalines), said on October 10 that the May Diamond Way ship is managed by Vinashinlines, an affiliate of Vinalines.

Due to financial difficulties, Vinashinlines still owes money for ship repairs from the NSS.

The ship and all the crew members have been kept in the Jebel Ali port for two months and all their related papers, including passports, are being kept by the NSS, he added.

Vinalines’ leaders have directed Vinashinlines to work closely with the Vietnamese Embassy in the UAE to deal with the case.

Mekong river basin strategy action plan in the pipeline

The Vietnam National Mekong Committee (VMC) held a seminar in Hanoi on October 10 to work on a national action plan to implement the Mekong River basin development strategy.
 
Participants agreed that the long-term strategy is to strengthen the general management of water resources in the Mekong Delta and Central Highlands regions and create a legal and technical framework for cooperation within the Mekong Commission.

They suggested that in the short term, Vietnam should define issues of its concern to develop projects for assisting national policies and strategies as well as to update scenarios for the basin development.

The VMC highlighted the 10V sub-region, known as the Mekong Delta and 7V sub-region, including Se San – Srepok river basins. Both of them have a strategically important position in national socio-economic development and political security, as well as promoting cooperation with the Mekong Commission member countries.

The committee also proposed projects for the Mekong Delta and Central Highlands regions with different goals, towards the sustainable development of water resources at national and basin levels.

The 4,800 km Mekong River originates from Tibet, running through China, Myanmar, Laos, Thailand, Cambodia and Vietnam. The Mekong river basin covers an area of 795,000 sq. km and is home to 60 million people, including 20 million living in Vietnam’s Mekong Delta and Central Highlands regions.

Communications technology discussed in Hanoi

The International Conference on Advanced Technologies for Communications (ATC/REV 2012) officially kicked off in Hanoi on October 10, drawing participants from 12 countries.    

ATC/REV is an annual conference series co-organised by the Radio Electronics Association of Vietnam (REV), Le Quy Don Technical University, and the IEEE Communications Society (IEEE ComSoc).

The three-day event aims to foster scientific and technological exchange between Vietnamese and international students, scientists, and engineers in the fields of electronics, information, and communications.

As many as 79 keynote speeches will be presented at the workshop. It is expected to offer a comprehensive introduction to the trends of the field’s latest technological developments.

Delegates will also focus their discussion on electronic design and signal processing as a way of assisting Vietnam to achieve sustainable development in the field of information and communications technology.

Vietstock 2012 open in HCM City

Vietstock 2012 Expo and Conference, co-organized by the Department of Livestock Production and the Ministry of Agriculture and Rural Development (MARD), was opened in Ho Chi Minh City on October 10.

Under the theme “Improving Food Hygiene and Safety in Livestock Production”, Vietstock 2012 attracted more than 250 enterprises from 30 countries and territories.

The two-day event is a good opportunity for domestic and international enterprises to seek business partners and update the latest achievements, production management and advanced innovation.

A series of seminars on animal health, food hygiene and safety will also be held during the fair.

On this occasion, many enterprises and organizations will be awarded for their outstanding achievements in developing new technologies.

GDP growth forecast at 5.5 percent in 2013

Vietnam is on the way to achieving an annual GDP growth of 5.5 percent in 2013 and maintaining the consumer price index at around 7-8 percent.    

The Ministry of Planning and Investment (MPI) presented a report on major targets proposed for 2013 at a meeting of the National Assembly’s Committee for Economic Affairs in Hanoi on October 10.

It forecast that the country would record an export turnover of around US$124.3 billion while keeping its import surplus ratio at 8 percent. Over budget spending would not surpass 4.8 percent of GDP, and total social investment capital would account for 30 percent of GDP.

The MPI emphasised the primacy of stabilising the macroeconomy and curbing inflation over the coming year, saying Vietnam will continue tightening its monetary policy, seeking interest and inflation rate harmony, and ensure an appropriate increase in outstanding debts as a means of easing the difficulties businesses face accessing bank loans.

The report stressed the need to strictly manage the banking system’s activities, ensure liquidity, prevent fraud, and provide up to date, accurate information on local credit markets.

The report called for more transparency in fiscal policy, particularly in the areas of revenue collection and spending and Government bonds and public investment. It recommended settling debts owed by State-owned businesses and the Government.

The report also touched upon price management, saying that State interventions are needed to control the costs of essential products like electricity and fuel.

The MPI proposed reducing corporate income tax and offering incentive loans for local businesses struggling with excessively high levels of inventory.

Agriculture attracts low foreign direct investment

The Ministry of Agriculture and Rural Development on Tuesday said that the agriculture industry attracted only 0.77 percent of foreign direct investment (FDI) during the period 2001-2010.

At a meeting in Ho Chi Minh City, to promote breeding, the ministry said that despite low FDI, the field of agriculture contributed almost 24 percent towards the country’s GDP.

Among the sectors in agriculture, animal feed saw the maximum FDI funding, accounting for 94.7 percent in 2010 and 95 percent this year.

At present, 25 animal feed companies have foreign direct investments and they provide about 60 percent of the total animal-feed available in the market.

HCM City enterprises make good recovery despite poor economy

Despite a global and domestic economic crisis, enterprises in Ho Chi Minh City have successfully adopted measures to achieve their business targets by year end.

A stagnant property market and sharp fall in the wood furniture business has not deterred a phenomenal success for Savimex Corporation, one of Vietnam’s best furniture exporters.

The company has achieved a yearly turnover of VND625 billion ($30 million), an increase of 50 percent compared to last year.

Bui Ngoc Quoi, Savimex Corporation’s manager, said Japan’s wood furniture businesses are switching from China to Vietnam due to the highly unstable political situation in China.

This is an opportunity for Vietnamese enterprises. Thanks to grasping opportunities in time, Savimex has signed as many contracts as possible for the whole year and first months of 2013, said Quoi.

Meantime, Le Dang Quang, director of Liksin Paper Company, said his company’s production and business started to take off in the fourth quarter. The company has asked all staff to work harder and the factories are working at full capacity to deliver consignments as scheduled. It is expected to reap a turnover of VND1 trillion (US$48 million) for the whole year, a year on year increase of 5 percent.

Saigon Industry Corporation (CNS) had launched promotional programs via supermarkets and fairs and cut down on spending that helped the company to achieve 75 percent of its first nine month target. The company is estimated to earn VND8 trillion ($385 million) this year, a year-on-year increase of 13 percent. It also paid VND3,500 billion tax to the government.

According to a report by the Ministry of Finance, after the government’s decision to relax and reduce taxes for enterprises, more than 6,000 enterprises resumed operations.  In addition to support from the government and related agencies, enterprises themselves thought up measures to overcome the hard times.

The Ministry of Industry and Trade convened a meeting to call for contribution of enterprises in consumption of commodities lying in stocks. The ministry asked home enterprises to consume commodities of each other to escape hard times.

According to economist Nguyen Duc Minh Hai, thanks to changes in bank policies to reduce interest rates for enterprises and a series of support measures by the government, enterprises have been able to make good recovery.

Mekong Delta farmers in despair over low sugarcane price

The domestic sugarcane industry is being crippled by low prices offered by smuggled Thai sugarcane, which is readily available in abundance in markets in the country, causing much anguish to sugarcane farmers in the Mekong Delta.

Nguyen Thanh Long, chairman of the Vietnam Sugar and Sugarcane Association (VSSA), said in an exchange with Saigon Giai Phong Newspaper that this year sugarcane farmers are facing many disadvantages as prices in both the local and international markets have dropping drastically.

Sugarcane is being sold in the domestic market at VND15,000 a kilogram (US$0.72), a decrease of VND3,000 per kilogram compared to the same period last year, with farmers suffering losses from VND500-800 on one kilogram.

Long said despite reduced prices, customers do not want to buy Vietnamese sugarcane but they have switched to buying the smuggled product from Thailand.

According to statistics, some 400,000 tons of sugar is illegally brought into the country from across the southwestern border each year. Contraband sugar from Thailand is VND1,000 a kg cheaper than domestic sugar; as a result, smuggled sugarcane has hurt the domestic sugarcane industry.

On the other hand, Brazil, China and Thailand are enhancing production of sugarcane. According to forecasts of the International Sugar Organization, the world sugar economy faces a year of record global surplus. The gap between world output and consumption has reached 9.5 million tons. By the end of 2011, world stocks of sugar grew to 1.3 million tons; in 2012 it was 5.2 million tons and in 2013 it is expected to climb to 5.85 million tons; prices have thus fallen from $700 a ton to $455 a ton. Due to a decline in sugar price in the international and domestic markets, sugarcane price is also bound to fall.

Many sugarcane farmers in Phung Hiep District in Hau Giang Province in the Mekong Delta have to harvest their crop every year before it is fully mature, because of threat of falling prices and sudden flooding.

However in previous years, representatives from manufacturers from Long An, Ben Tre, Ca Mau provinces flocked to Phung Hiep District offering high price for sugarcane. The situation has changed this year as no factory wants to purchase the crop, leaving farmers disinterested in harvesting their fields.

According to Long, VSSA has proposed to province leaders to create favorable conditions to attract manufacturers in other provinces for buying up the sugarcane crop or else farmers will suffer more losses.

Long added that the Thai variety was more competitive than Vietnamese variety as Thai farmers utilize combine harvesters across tens of hundreds of hectares to reduce spending on manual labor. Besides, the rate of sugar extraction is much higher than in Vietnam.

Therefore, Long said the first thing to do is for Vietnam to improve sugarcane quality to raise sugar extraction which also helps reduce expenditure on production and prices. The government should adopt policies to help farmers and tighten checks on smuggling across border areas.

Floating Dock 2 sold off to US Company

The highly controversial US$11.5 million Floating Dock 2 has been finally sold to a US Company through a border-gate transfer, said one local customs official.

The Floating Dock was left to rust and had severely deteriorated in Cam Ranh Bay in the central province of Khanh Hoa for more than four years.

Ho Chi Minh City-based Long Son Shipping & Trading Joint Stock Company, the Dock’s owner, is carrying out necessary procedures to move it to the US.

Before delivering the dock to the US, the owner has to pay a debt of VND1.7 billion to Nha Trang port authorities.
Floating Dock 2

Long Son Company had purchased the Dock from Singapore for $11.5 million under a temporary import and re-export plan, four years ago.

The 166.5-meter Floating Dock 2, with capacity of 12,000 tons, arrived in Cam Ranh Bay on August 9, 2008 under the management of HCMC-based Viet Hai Shipping and Real Properties Corporation (VSP), successor of Vinashin Petroleum Investment and Transport JSC. Debt-stricken Vinashin had held a 40 percent stake of the company, which bought the Floating Dock for ship repairs.

The Dock was purchased via Hanoi-based Bank for Investment and Development of Vietnam (BIDV).

Once purchased, this Floating Dock was never used for many reasons, one being that the People’s Committee of Khanh Hoa Province in 2011 turned down the plan of using the dock, citing environmental concerns.

HCM City presents ‘Best Young Entrepreneurs 2012’ awards

Ho Chi Minh City hosted a ceremony on Wednesday to honor nine outstanding men with the 7th Best Young Entrepreneurs 2012 awards.

The awards are given by the HCMC Communist Youth Union and the Young Entrepreneurs Association in the City to honor young people who obey and respect State regulations, take care of and develop labor forces and carry out social activities in their community.

This year, nine outstanding people from fields like construction, real estate, seafood industry, garments and textile and environment have been selected.

The nine include Dang Hong Anh, chairman of Saigon Thuong Tin Real Estate Joint Stock Company; Dinh Thi Bich Chau, director general of Hoan Chau Investment Company; Tieu Yen Trinh, director general of Talentnet Corporation; and Dang Vu Hung, director general of Phong Phu International Company.

The five remaining are Le Huu Nghia, director of Le Thanh Commercial Construction Company; Cao Thanh Ngoc, deputy director of Ruby Company; Nguyen Duc Tai, director general of Mobile World Joint Stock Company; Duong Quoc Thai, director general of Saigon Plastic Packaging Company; and Luong Tri Thin, director of Dat Xanh Real Estate Company.

Report exposes continued weaknesses in Vietnam's economy    

The Ministry of Planning and Investment (MPI) released the Socio-Economic Report in 2012 and plan for 2013 which pointed out corruption as a major issue for the country's economy.
 
The report said the in the first ten months of 2012 interest rates were reduced, foreign currency exchange remained stable and inventory was lowered. However the GDP growth continues to fall short of the target of 6% to 6.5%, at just 5.2%.

This would mark the second year in a row that Vietnam failed to meet its GDP growth goals. Last year, GDP growth was 5.89%, while the target was 7%-7.5%.

Another concern pointed out in the report was corruption and complicated bureaucracy in the business arena. It said that misuse of office in business dealings in Vietnam hinders economic development.

The MPI indicated the macro-economy has not been stable, with high inflation and a large rate of bad debt still posing problems.

For 2013, the MPI set goals for GDP growth at 5.5%, CPI at 7%-8%, export turnover at USD124.3 billion and export surplus at 8%. The goal for budget deficit is hoped to be lower than 4.8% GDP and the total investment capital would be 30% GDP.

Interest rates will be lowered in accordance with inflation so enterprises will be able to access credit.

The Government will also tighten control over the banking system to ensure the liquidity and safety. New regulations will be applied for fraud, and other violations that affect credit.

Monetary policies related to borrowing and paying foreign loans and debt restructuring will also be closely monitored to ensure a relatively low level of outstanding debts.

In order to boost the domestic economy, the MPI proposed to lower the corporation income taxes and create favourable conditions for enterprises to access capital and reduce inventory.

Petrol prices maintained despite expectations of decrease
 
The Ministry of Finance has decided not to cut petroleum prices despite the falls in world prices, one official said.
 
Nguyen Anh Tuan, Deputy Director of the ministry’s Department of Price Management, said on October 9 that petroleum prices would be increased if stabilisation tools were not used.

According to the ministry, after slight price falls in the world market recently, prices rebounded to USD124.34 per barrel of 92 octane gasoline (A92) on October 8.

Domestic petroleum prices now average at USD122.85 per barrel of A92, USD131.56 per barrel of diesel 0.05S, USD131.38 per barrel of kerosene and USD673.74 per tonne of fuel oil, the ministry said.

This means that the imported petroleum prices are still VND500-VND800 per litre higher than the current domestic retail prices, they said.

Tuan said that the Ministries of Finance, and Industry and Trade would continue the subsidy of VND500 per litre of petroleum products from the petrol price stabilisation fund in order to offset the price disparity.

Currently, petrol products are sold at VND23,650 per litre of A92, VND21,850 per litre of diesel 0.05S, VND21,900 per litre of kerosene, and VND18,650 per kilo of fuel oil.

Advertisers care little about copyright issues in media

Advertisers are not yet accustomed to paying attention to whether newspapers, online news sites and social networks which they use for their ad campaigns infringe copyrights or intellectual property rights.

The idea was shared by representatives of numerous foreign-invested companies in interviews with the Daily after Coca-Cola and Samsung had removed their advertisements from the online music website Zing Mp3 of VNG Co. given concerns about music copyrights on the site.

According to these companies, especially multinationals operating in Vietnam like Toyota and Sony, as leading brands worldwide, they always choose prestigious newspapers with big circulation or websites with high traffic to advertise their products. However, they also admitted failing to check if these media violate copyrights or intellectual property rights or not.

Administrators of websites and news sites are responsible for the copyrights they use. Only when certain copyright violations are detected, advertisers will seek solutions for the problems, representatives of a number of enterprises having their products advertised on websites said.

Regarding the moves of Coca-Cola and Samsung, Truong Van Quy, general director of EQVN Technology and Media Co. specializing in online marketing, said both companies had wise solutions. Both had successfully protected their brands in the local market and in the business community, Quy explained.

“The problem has also changed the mindset of other local brands when they look for channels for promoting their products,” Quy told the Daily.

Similarly, Do Kim Dung, vice chairman of the Vietnam Advertising Association, described the decisions of Coca-Cola and Samsung as very lucid at this time. The two giants have rung an alarm bell regarding intellectual property rights infringements in the nation, he said.

“Other popular brands like Tan Hiep Phat, Vinamilk and MobiFone might have to follow the example of Coca-Cola and Samsung; otherwise, they will face objections from intelligent consumers and media,” said Dung, who is also director of the Advertising Research and Training Institute of Vietnam. He advised local people not to tolerate fraudulent business activities and he even called for competent authorities to get tough on the copyright issue.

Several traffic projects in city get financed

Having accessed bank loans thanks to falling interest rates, investors of a number of traffic projects in HCMC are speeding up disbursement to finish the works earlier than scheduled.

Bui Xuan Cuong, deputy director of the HCMC Transport Department, told the Daily that capital disbursement has turned stronger than in 2011 and early 2012. Out of the total budget of over VND3 trillion planned for traffic projects this year, around VND1.3 trillion has been disbursed.

Some investors have disbursed capital to finish projects early such as the road to Phu Huu Port, Saigon 2 Bridge and two flyovers in Binh Chanh District.

The investors have been able to reach bank loans given lowered lending rates. Besides, construction of the projects goes smoothly as site clearance has been completed, Cuong explained.

Meanwhile, projects using the State budget are still in financial distress.

This year, the HCMC government sets aside 45% of the total invested capital from its budget for traffic projects but the sum has to be spent on site clearance and compensation for metro lines no. 1 and 2, Hanoi Highway expansion and official development assistance (ODA) projects.

Around VND3 trillion is allocated to the department but over VND1.6 trillion must be spent to repair the road system. Therefore, the city has little capital left for new projects, Cuong added.

The city from now to the end of this year will kick off two steel flyover projects at Hang Xanh and Lang Cha Ca roundabouts to help ease severe traffic congestion.

Danang turns attractive to Hong Kong visitors

A group of 20 people from major Hong Kong travel and media organizations arrived in Danang City on Monday to study the central coast city’s tourism in a five-day famtrip.

Organized by Vietnam Airlines (VNA) and Indochina Travel, the familiarization tour will take in golf courses including Danang Golf Club, Mongomerie Links and King’s Island Golf Club as well as other places of interest in Danang.

This is part of a broader plan to launch direct air service between Hong Kong and Danang.

Tourist sites in Danang that tourists in the famtrip are interested in are Danang Museum of Cham Sculpture, Ngu Hanh Son Mountains, Non Nuoc Beach and luxury beach resorts.

According to Huynh Duc Trung at the city’s Department of Culture, Sports and Tourism, many tourists, especially those from Hong Kong, say Danang has competitive advantages, such as beautiful beaches, over Bali in Indonesia or Phuket in Thailand.

Ho Quang Tuan, deputy director of VNA’s office in central Vietnam, said that with three Hong Kong-Danang charter flights operated on September 30 and October 4 and 7 to explore the market, VNA obtained good results with 169-175 passengers on a 181-seat aircraft, or 85-90% of the seating capacity. This is seen as a good signal for opening the Hong Kong-Danang direct service.

Danang, in coordination with VNA, has organized many programs to promote tourism in the city and the central region as a whole, including attending ITE and MICE expo in Hong Kong, and cooperated with local travel firms in offering preferential tourism services for Hong Kong tourists, Trung said.

Ukrainian carrier to fly to city

Ukraine’s AeroSvit Airlines will operate charter flights every week from this December to bring tourists from Kiev to HCMC.

Vietnam’s travel firms were informed of the airline’s plan at the Deluxe Travel Market held last week in Ukraine. The flight schedule has also been sent to some Vietnamese firms.

Specifically, AeroSvit will fly to HCMC on Sunday and Thursday and fly back to Kiev on Monday and Friday. This schedule will be maintained until next March.

Bui Viet Thuy Tien, managing director of Asian Travel Trails, said that Ukraine was a potential market, and Ukrainian partners really wanted to sell tours to Vietnam.

“This is the first time that we have attended such an expo to get access to this new market. At the expo, we met several potential partners who said they would bring customers to Vietnam,” she said.

‘Training must meet market demands'

Labour market-oriented training was a common trend in developed countries across the region and throughout the world that Viet Nam needed to follow, said Deputy Prime Minister Nguyen Thien Nhan at the Regional Technical and Vocational Education and Training Conference held in Ha Noi yesterday.

The two-day conference, which drew the attendance of about 250 participants from 14 countries, was co-organised by the German Academy for International Co-operation (GIZ) and the Viet Nam Ministry of Labour, Invalids and Social Affairs (MOLISA).

Nhan's statement mirrored the same opinion of Hans-Jurgen Beerfeltz, State Secretary of the Federal Ministry for Economic Co-operation and Development, who shared that 60-70 per cent of Germans received training offered by companies while only 30-40 per cent studied at training schools.

Nhan said Viet Nam's labour force must meet the professional standards of the regional and global labour markets to integrate into the world economy.

This was especially important as Viet Nam must ensure a quality work force for the development of an industrial country as targeted by 2020.

Nhan also cited reforms in management and training as well as application of scientific and technological knowledge as solutions to creating breakthroughs in quality training.

Viet Nam, therefore, needed to strengthen co-operations with ASEAN and developed nations, including Germany, to learn from their experiences and successes in vocation training, especially enterprise-linked training.

Horst Sommer, director of Vietnamese - German Reform Programme for Technical and Vocational Education and Training, said Germany would focus on helping Viet Nam raise the practical skills of vocational trainers and promote training courses which engaged enterprises' involvement.

Hans-Jurgen Beerfeltz said Germany would provide financial aid to construct a vocational training centre of international standards in Viet Nam. The project is expected to be completed by 2015.

Nguyen Tien Dung, director of MOLISA's General Department of Vocational Training, said Viet Nam would follow the standards of Malaysia in the region and those of Germany in vocational training.

He said technical and vocational training of high quality following Malaysian standards would be piloted in eight vocational schools.

Nguyen Ngoc Phi, MOLISA's deputy minister, said enhancing international co-operation was very important in promoting quality training as it required high expense and many facilities.

The National Institute for Vocational Training's 2011 report revealed that as of July 2011, Viet Nam had more than 51.3 million people aged 15 or above entering the labour force, accounting for more than 58 per cent of the entire population. Among whom, 71.5 per cent lived in rural areas.

Of the population aged 15 or above, the number of people who never graduated from primary school and were illiterate accounted for over 17 per cent.

According to MOLISA, vocationally trained workers accounted for 32 per cent of the total labour force in Viet Nam.

Ministry targets price stabilisation
 
The Ministry of Industry and Trade, in an aim to stabilise the market and prices, has asked for detailed information about the supply and demand of essential goods in the country.

The ministry in an official letter asked all ministries, branches, associations, and units under its supervision to provide the information.

According to the ministry's data, the country's total retail sales and services in September reached VND195.1 billion (US$9.2 million), up 1.08 per cent against August.

In the first nine months of this year, the figure reached VND1.713 trillion ($81 million), a year-on-year rise of 17.3 per cent, compared to the rates of between 20 per cent and 22 per cent in previous years, according to independent market watchdogs.

The Domestic Market Department of the ministry said the domestic commodity market had sufficient supplies but consumer sales had slowed, resulting in an increase in companies' inventory.

In addition, the number of counterfeit goods and cases of fraudulent practices had risen.

This year, according to the Market Management Department, there have been 8,751 cases of smuggling, 7,945 cases of trading of counterfeit goods and 12,859 cases that violated price-related regulations. At least VND275 billion ($13 million) in goods was confiscated, a rise of VND15 billion ($714,200) compared to 2011.

Based on the market this year, the ministry predicts that the domestic commodity market will fluctuate for the rest of the year and the slowdown in consumption will likely continue.

However, the demand for livestock products will increase as Tet (Lunar New Year) approaches. Because breeding activity slows down at this time of year, supply could be affected.

Economic policies of other countries will also affect the prices of many kinds of commodities in Viet Nam.

To stabilise the market, Vo Van Quyen, director of the Domestic Market Department, said it was necessary to fully tap domestic production capacity and seek ways to help producers reduce the number of unsold goods.

Enterprises should also be provided access to bank loans to help them with production needs.

Quyen urged agencies to closely monitor the global market so they could respond in a timely manner to economic changes.

He said the ministry would strictly control imports of luxury and inessential goods in an aim to reduce the trade deficit, helping stabilise the macro-economy.

In addition, agencies and localities would have to work together closely to fight against smuggling and counterfeited goods produced at home or abroad, he added.

The ministry will also carefully watch market supply and demand so it can develop timely measures that would avoid a scarcity of commodities and jump in prices.

City builds new flyover

The HCM City Department of Transport launched a new project on Wednesday to construct a steel flyover worth VND183 billion (US$8.7 million) in the Hang Xanh Intersection in Binh Thanh District.

According to Urban Traffic Management Zone No. 2, the 390-metre steel bridge was built for buses, cars with less than 9 seats and two-wheel vehicles.

The project is expected to be complete by early February next year.

Earlier in July, HCM City placed another steel-made flyover worth VND227 billion (US$10.8 million) in Thu Duc Intersection to ease traffic congestion.

The city plans to construct two other flyovers in Tan Binh District's Lang Cha Ca Intersection and District 6's Cay Go Roundabout.