Breakthrough urged in software sector
 
The Software Association should promote research in advanced technologies and develop software to meet domestic demands, said Deputy Prime Minister Nguyen Thien Nhan.

The Deputy PM made the request at the third Congress of the Vietnam Software Association (VINASA) opening in Hanoi on November 13 in the presence of Minister of Information and Communications, Le Doan Hop. He also ask the association to strengthen cooperation to create favourable conditions for  information technology (IT) schools and turn Vietnam into a strong IT country.

Vietnam’s software sector has seen a breakthrough over the past five years with a year-on-year growth rate of 30-40 percent. Software businesses have also enjoyed significant development in size, quality, and quantity. The market has been expanded and Vietnam is now able to export many software products.

The congress decided to focus on expanding promoting the building of business brand names, improving the association’s research capacity, and contributing ideas for policies regarding the sector.

Deputy PM Nhan also awarded the Labour Order second class to the VINASA at the congress.

Japan, Vietnam to build railroad
 
Japan has proposed Vietnam cooperating with Vietnam in a project on construction of a high-speed railway lines between Hanoi and Vinh and between HCM City and Nha Trang.

According to the Vietnam Railway Corporation, the Japanese embassy in Hanoi sent a diplomatic note to the Ministry of Planning and Investment (MPI) and the Japan International Cooperation Agency (JICA), on November 2, to add the new railway project to the agenda for Japan’s fiscal year 2010.

Meanwhile, the MPI sent a diplomatic note to the Japanese embassy agreeing to receive additional technology mentioned in Japan’s proposal.

VN-South Africa business council makes debut
 
 The Vietnam-South Africa joint business council made its debut in Ho Chi Minh City on Nov. 12
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The President of the council is Do Thi Kim Lien, who is also general director of the AAA Insurance Company and Consul of Honor of South Africa in Vietnam.

Addressing the November 12 ceremony, Lien said the council’s official operation will help make a bridge between enterprises of the two countries to closer cooperation.

The council will be an effective channel between enterprises and governmental agencies of the two countries.

Also present at the ceremony, visiting South African Deputy Minister of Water and Environmental Affairs Rejoice Mabudafhasi called on Vietnamese enterprises to visit South Africa to seek investment opportunities.

Deputy General Secretary of the Vietnam Chamber of Commerce and Industry Vo Tan Thanh said that South Africa has been a new market with great potential for Vietnamese enterprises.

The two countries’ trade turnover saw marked results in the recent years. In 2009, Vietnam earned US$218 million from exports to South Africa and paid US$78 million for imports of goods from this country.

In the first five months of this year, two-way trade hit US$241 million, including US$160 million worth of Vietnamese exports.

Vietnam exported rice, footwear, garment and textile, coffee, wooden works and fine arts and handicrafts to South Africa . Rice made up about 50-60 percent of the total export value.

Vietnam-China agriculture fair in to Hanoi early next month
 
A Vietnam-China agriculture and handicrafts fair will be held in Hanoi from December 1-6.

The Vice Chairman of the Vietnam Cooperative Alliance Nguyen Xuan Hien told a press briefing on November 12 that the event will offer a chance for domestic cooperatives and enterprises to promote their products and boost trade, investment and tourism between Vietnam and China as well as with regional countries.

During the week, there will be a meeting on the trading of cassava starch, a seminar on the need for agricultural supplies and consumption of agricultural and handicraft products in Vietnam and China, talks on tariff and border trade between Vietnam and China’s Guangxi province, and trade promotion activities and exchanges between Vietnamese and Chinese cooperatives and economic organisations.

The fair expected to attract 400 exhibitors, including those from ASEAN countries.

Gold prices below VND36 million/tael
 
The average domestic price of gold on November 12 reduced sharply to VND35.98 million/tael, down VND270,000/tael compared to transaction the previous day.

At 3.15pm, in Bao Tin Minh Chau Company, gold prices was listed at VND 35.80-35.98 million/tael, decreasing by VND170,000/tael against November 12 morning.

Since reaching the highest peak of VND 38.3 million/tael on November 9, the price of gold has reduced by VND2.2 million/tael. Then, the State Bank of Vietnam allowed businesses to import gold. So far, gold prices have decreased consecutively each day. However, gold prices still stand at high levels, having raised by VND4,650,000/tael compared to early October.

Together with decreasing gold prices, the USD/VND exchange rate in free market is gradually reducing. In the last three days, in the free market, it was bought at VND19,800-19,950 per US dollar and sold at VND21,000-21,020 per US dollar. It showed a decrease of VND40 per US dollar.

Hanoi: All goods increase prices
 
From early November, in Hanoi, prices of such goods as food, vegetables, and fruits have been increasing everyday.

Pork has had the highest price increase. In many markets, the retail price of pork is up VND10,000-20,000 on average.

Food prices in Hom-Duc Vien, Mo, Mai Dong and Thai Ha markets increase by VND1,000-2,000 per kilogram. The price of vegetables is up VND3,000-5,000 per kilogram.

Also, from early November, gas stores has officially listed new prices with an increase of VND24,000-25,000 per canister compared to October.

To stabilise prices, Hanoi municipal People’s Committee has decided to advance VND350 billion with no interest rate to 13 businesses.

World Bank helps Dien Bien in poverty reduction
 
The second phase of a poverty reduction project in the northern province of Dien Bien began implementation in 4 districts including Muong Anh, Muong Cha, Dien Bien Dong and Tua Chua on November 12.

The total invested capital for the project is US$20 million, of which US$17 million is borrowed from the World Bank (WB).

It aims to improve the living standards of the local people through access to infrastructure for production and strengthening the capacity of local authorities.

The project targets to reduce the number of impoverished households in the province from 56 percent to 30 percent by 2015 and hopes to play a vital part in the provincial socio-economic development plan in the next five years.

Ta Xuan Truong, Deputy Head of the project’s Management Board, said that the Management Board will disseminate information of the activities of the project to the grass root level to effectively implement the project.

Southern hub takes steps to stabilize market
 
Ho Chi Minh City is taking measures to stabilize the local economy from now until the 2011 Lunar New Year festival.

Nguyen Thi Hong, Vice President of the municipal People’s Committee, said local authorities are directing departments and sectors to ensure sufficient high-quality and hygienic goods with reasonable prices.

They are also active in fighting counterfeit and poor-quality goods.

The city’s department of industry and trade will focus on monitoring the happenings of the market, especially at supermarkets, trade centres and major markets.

Meanwhile, the finance department will heighten supervision of the market and appraisal of prices and take action against any speculation attempts.

The municipal police will also join other forces to crack down on those violating state regulations on pricing, market, banking and securities.

Vietnam - an attractive investment destination
 
Vietnam is considered as an attractive investment destination for foreign investors, said international experts at a conference themed “Gateway to Vietnam 2010” organized by the SaiGon Securities Joint Stock Company on November 11.

Marco Breu, Executive Director of McKinsey & Company in Vietnam said that many businesses are coming to Vietnam to open factories to diversify their production establishments for the global market.

Sharing the view, Jose Isidro, Vice President of the Asia-Pacific region under the Credit Suisse Group said that Vietnam is one of the emerging economies which have offered many attractive investment opportunities.

Phan Viet Muon, vice chairman of the Government Office said that in the past three years, up to 240,000 businesses have been established and the figure might reach by 540,000 late this year.

Challenges facing gas industry
 
Vietnam should place high priority on developing the gas supply for economic development, environmental protection, energy security, and electric generation.

According to a recent report of the World Bank on building Vietnam gas sector development framework, the Vietnam’s natural gas industry will triple in size by 2025 if the Government objectives are achieved.

The industry should be able to provide as much as 24 billion cubic metres  per year by 2025, says the report.

The socio-economic development in Vietnam over the past 10 years has created an increasing demand and there is now a shortage of natural gas. The gas sector is now facing three challenges: the instability of prices due to vague valuation and the lack of encouragement to the private sector to participate in the industry, the poor capacity to transfer from natural resources to reserves, and the ineffective cooperation between the gas and electricity industries.

According to the nation’s energy development strategy, the country’s total supply of gas in the coming years is estimated at 25 billion cubic metres, three of which are for generating electricity.

88 percent of the gas supply is now used by the electricity industry, producing 40 percent of the total electricity output.

Dao Thanh Hoai from the Vietnam Electricity (EVN) said EVN can buy all of the gas produced.

Ben Timer from the US-based Chevron Group, said the electricity sector plays an important part in the value chain of the oil and gas as it consumes most of the gas output. It is, therefore, very necessary to develop the two sectors at the same time.

The use of gas in generating electricity is more effective compared to other resources as it is much cheaper, said World Bank expert Roland Priddle.

However, there is not an effective cooperation between the two sectors. The northern part of Vietnam can not access any supplies of gas while in the southern region, the infrastructure for the sector still needs upgrading  and a competitive market has not yet been formed.

The development of the gas sector in the economy requires significant changes in pricing and distributing work. The prices of gas is usually negotiated by government agencies and gas exploration companies.

Roland Priddle said Vietnam should value the price of electricity produced by gas similar to that made by coal-fired power plant to assist investors. Developing the infrastructure for the gas industry will help Vietnam produce electricity at a cheaper prices and minimise the adverse impact on the environment.

The valuation of gas will help create a competitive environment between domestic and foreign businesses.

It is not possible for Vietnam to export gas as the prices are still high, said Priddle, adding that he is confident in the development of the gas industry in Vietnam.

Seminar on accessing the US market
 
An international seminar entitled “Access to US Market – Experiences and Law” was held in Hanoi on November 11.

Vietnamese businesses operating in exports to the US market such as farm produce, seafood, garment, footwear, woodwork, legal consultancy and intellectual property attended the event, which was co-organised by the Trade Promotion Department under the Ministry of Industry and Trade and consulted by the US-based law firm Duane Morris LLP.

At the seminar, US law experts provided Vietnamese businesses with information about US laws, including tax and anti-dumping regulations which help them to minimise risks while accessing the US market.

The experts also explained about opportunities, risks and conditions when Vietnamese businesses invest in the US real estate market; regulations on food import-export and customer protection as well as business cultures and the consumption habits of US people.

Douglas Woloshin, a member of Duane Morris LLP, said that accessing the US market is simple, but Vietnamese businesses need to understand the US laws. They should establish a joint company with US partners in order to provide more business opportunities and limit negative impacts, he added.

Vietnam International Jewelry fair opens in HCM City
 
More than 200 Vietnamese and international businesses attended the Vietnam International Jewelry Fair which is being held in HCM City from November 11-15.

Most of the foreign jewelry enterprises come from Belgium, China, Singapore, Malaysia, Japan, Israel, Turkey, Thailand, Laos, and the US.

The fair featured 150 pavilions displaying jewelry and machinery from the silver and gold jewelry sector.

Nguyen Thanh Long, general director of the Sai Gon Jewelry Holding Co (SJC) said that the event offers an open environment for both foreign and domestic businesses, which will contribute to Vietnam’s gold, silver and gemstones becoming a spearhead sector in future.

During the event, five seminars will be held to introduce technologies and equipment in the jewelry sector.

The fair also has a pavilion to introduce visitors to a collection of SJC gold bars and the ways to distinguish real and fake gold.

PV