Vietnam’s exporters not eager for export credit insurance 

 

Experts said export credit insurance boosts the country’s export and helps local exporters to reduce risks of losses. However, despite the insurance’s advantages, local businesses remain unwilling to opt for it. 

 

“We do know export credit insurance, but we have no plan on using it due to high costs. Moreover, businesses have been still smooth so far without the insurance,” said Nguyen Thanh Tuyen, head of marketing department of Viet Seafood.

 

Many other companies showed a similar opinion about export credit insurance. They worried that high costs of the insurance would push up the operation expenses and reduce their profit margin.

 

Some in the Mekong Delta especially have never heard about it. Truong Dinh Hoe, secretary of the Vietnam Association of Seafood Exporters and Producers, told Dau Tu Tai Chinh Newspaper he had not received any information about the insurance.

 

“We will find out and inform to every members of the association,” Hoe said, adding he guesses the insurance is useful for seafood exporters.

 

Analysts warned Vietnam’s exporters were carrying high risks of losses from the international payment term, which sees foreign customers transfer money only after receiving shipments.

 

Therefore, buying export credit insurance is a must even thought it reduces the profit margin, they noticed.

 

However, statistics from the Association of Vietnamese Insurers show there are only three local insurers providing export credit insurance, comprising of Bao Minh, PetroVietnam Insurance and Australia–based QBE.

 

Phung Dac Loc, chairman of the association, said only insurers who can assess the foreign importers are able to provide the service. They can estimate trade and politic risks that will affect the importers, Loc said.

 

Most of the Vietnamese insurers have not been capable for the requirements since Vietnam had no database of businesses worldwide, he said.

 

Ho Chi Minh City-based insurer Bao Minh also said to be an export credit insurer, it had to cooperate with a foreign large insurer to have access into their detailed information about businesses. The foreign partner is the insurer of Bao Minh.

 

Experts said local insurers could ask commercial offices of Vietnam’s overseas embassies to help create their own database of business profiles worldwide.

 

Vietnam tops the list of countries in the world needing trade finance, according to an HSBC report that surveyed 17 markets worldwide.

 

The global bank said that the number of Vietnamese businesses who said they need trade finance will increase to 74 percent in a first-quarter survey from 66 percent in the second half of last year.

 

Expanded e-customs procedures urged

 

The customs sector should expand the electronic customs procedures to facilitate import-export and commercial activities, a customs official has said.

 

The expansion of electronic customs procedures should include special preferential businesses and the application of digital signatures in the exchange of electronic information, said Nguyen Tran Hieu, deputy head of the Department of the Customs Information Technology and Statistics.

 

By 2015 the sector would have received information on electronic customs clearance (e-Declaration), and basic information on declaring goods and relevant documents to gradually shift to clearing customs before the arrival of goods (e-Manifest).

 

By then the sector would have managed and exchanged information on permits (e-Permit), electronic Certificate of Origin (e-C/O), electronic tax payment (e-Payment), and electronic office management (e-Office).

 

This aimed to become a customs agency that can meet demand anywhere around the clock by 2020, he said.

 

Customs officials by then could do their job anytime and anywhere, while customs declarants could undertake and be provided with customs procedures whenever and wherever they want.

 

It would also lay the foundation for implementing the national and ASEAN one-stop shop mechanism, and international commitments to which Viet Nam was a party, leading towards building a modern and professional customs agency, Hieu said.

 

E-customs enables businesses to fulfil customs procedures right at their company's office via the internet, instead of at customs agency office.

 

If the goods are classified in the green zone, then businesses can themselves print out customs clearance orders for delivery of goods at port.

 

In cases where further information is needed in the declaration process, businesses will also receive immediate online feedback from customs agencies and enter missing information on the computer.

 

The e-customs procedures, thanks to the application of information technology, have reduced the clearance time for imports and exports to three-15 minutes in the green zone and to 10-60 minutes in the yellow zone.

 

The General Department of Customs said that the introduction of e-customs procedures has considerably shortened the time to complete customs proceedings, and removed geographical and temporal distance.

 

It has also increased transparency, facilitated trade and aimed to attain the highest level of public service provision as classified by the Ministry of Information and Communication.

 

The General Department said that based on the success of applying e-customs on a trial basis in Hai Phong and HCM City since 2005, the service has been expanded to seven other major customs departments in Dong Nai, Binh Duong, Ha Noi, Da Nang, Lang Son, Quang Ninh, and Ba Ria-Vung Tau.

 

This year seven more customs departments will introduce the e-customs procedures, including Thanh Hoa, Nghe An, Thua Thien Hue, Binh Dinh, Dac Lac, Tay Ninh, and Long An.

 

Statistics showed that as of 2010, the department had introduced the electronic customs clearance software to 13 out of the total 33 provincial and municipal customs departments that include 70 divisions.

 

To support businesses, the General Department of Customs has provided free customs clearance software and published the data standard for electronic documents connected with the electronic data processing system of the customs sector.

 

The general department has also offered training courses to businesses.

 

Cao Thi Kim Lan, director of Binh Dinh Seafood Export Joint-Stock Company, said her company planned to participate in a training course in e-customs procedures after receiving a request from the provincial customs department.

 

"The company imports and exports a large volume of commodities every year, so applying e-customs will surely further facilitate the business operations of the company," she said.

 

She added that currently although the customs clearance had been made in Binh Dinh, the company had had to travel to HCM City to import and export goods.

 

Though the procedures had been much simplified, the company still needed time to travel, Lan said.

 

Early this year, the General Department of Customs in co-ordination with commercial banks piloted the collection of import-export taxes electronically.

 

The joint efforts aim to increase the automation level in carrying out e-customs procedures and to limit the use of cash for payments, a major plan of the Government.

 

The general department plans to expand the service to eight major customs department by the year-end, targeting to have 80 per cent of import-export revenue declaration and payments of taxes done online.

 

It intends this year to electronically receive and process information on commodities and means of transport prior to reaching ports.

 

The deputy general director of the general department, Vu Ngoc Anh, said the Customs Development Strategy until 2020 recently approved by the Prime Minister envisaged the customs sector striving to have 100 per cent of customs departments and divisions in such crucial areas as seaports, airports, bordergates and key economic zones.

 

The strategy also strives to have 60 per cent of basic customs services, 70 per cent of import-export revenue, and 60 per cent of businesses applying e-customs procedures. By 2020, the percentage will have been raised to 100 per cent, 90 per cent and 80 per cent, respectively.

 

The customs sector has thus far encountered numerous difficulties in applying e-customs procedures, with unstable and non-uniform telecommunications infrastructure hindering the transmission and reception of data between businesses and customs agencies.

 

The credit guarantee fund works with many banks like ACB, Vietcombank, DongA and VietA to support business.

 

Tra fish exports to top $1.8 billion

 

Tra fish (pangasius) export revenue is expected to reach US$1.8 billion this year, $2.6 billion by 2015 and $3.6 billion by 2020, speakers at a conference said last Saturday in HCM City.

 

Speaking at the meeting organised by the Centre for Research and Analysis Financial Data Gafin, the former deputy Minister of Fishery, Nguyen Thi Hong Minh, said tra production and export enjoyed strong growth in the past 10 years.

 

In the period, the area under tra farming increased by fivefold to 6,000ha, with output rising 35 times, reaching 1.35 million tonnes.

 

Export revenue also increased strongly, from $40 million to $1.43 million in the period, she said, adding that tra fish was exported to 136 countries and territories.

 

Duong Ngoc Minh, chairman of the Hung Vuong Corporation, said compared to salmon and tilapia, pangasius had a more competitive price, meeting demand of different market segments from schools, restaurants and even in the army.

 

Truong Tri Vinh, deputy general director of Nextcom Data Integration Joint Stock Company, said consumers worldwide were eating more and more seafood and seafood-based products.

 

Seafood consumption per capita in the US had increased significantly since 1991, he said, noting that the US was one of the largest buyers of Vietnamese tra fish.

 

In addition, tra exports to South America, especially Brazil, Russia and several Asian countries, had also surged strongly in the past three months.

 

However, there were some problems facing the sustainable development of the tra fish sector, unhealthy competition among exporters by reducing sales prices, a shortage of raw materials and rising production costs, Hong Minh said.

 

Ngoc Minh said tra exporters should sit together for setting export prices to raise the value of Vietnamese pangasius and avoid the risk of anti-dumping lawsuits, rather than compete by slashing prices.

 

The overlap in State management also caused sluggish industry development, she said.

 

She called for closer co-operation between State agencies and community organisations (associations or alliances) to develop tra production in a sustainable manner and raise the sector's competitiveness.

 

The country should learn from other countries, including Norway, France and Chile, about models of community organisations involved in development of the fisheries or agriculture sectors, she said.

 

"All enterprises and producers in the same sector are members of a community organisation, they join their efforts to build brands and develop markets for their common products."

 

Enterprises that wanted to export must meet requirements on quality as well as other requirements set by the organisation, she said, adding that this helped prevent unhealthy competition, affecting prestige of their products.

 

The Government itself could not effectively solve the issues related to the development of the market economy. It required a joint force of association and alliances, she said.

 

A community organisation will manage, supervise, discover and deal with actions that adversely affect the community and prestige of the product.

 

The country should learn from Norway and create a trial for tra production industry by setting up a tra fish market development fund managed by the Freshwater Fish Committee under the Viet Nam Association of Seafood Producers and Exporters (VASEP).

 

The Prime Minister and the Ministry of Agriculture and Rural Development would set regulations for the fund, which stipulates clear norms, obligations, liabilities and interests of tra fish exporters, she said.

 

The Freshwater Fish Committee would also check company compliance of regulations.

 

Building brand, setting up quality standards and price management mechanisms for Vietnamese pangasius were among immediate works the sector should do in the coming time, she said.

 

She also suggested that VASEP, the Viet Nam Fisheries Society and tra farmers increase co-operation and restructure farming areas, and gather farming households under an association to protect their legal interests and strengthen their positions.

 

The country also needed to restructure State management agencies involved in veterinary, food safety and hygiene and fishery resource management to avoid an overlap in management and consistent management in the chain and an ability to trace the origin of products.

 

According to Duong Ngoc Minh, chairman of the Hung Vuong Corporation, the country earned an estimated $600 million in tra exports in the first five months of the year, an increase of 30 per cent over the same period last year.

 

Dung Quat zone to be expanded

 

The People's Committee of Quang Ngai Province held a ceremony last Saturday to introduce a decision, approved by the Prime Minister, to expand the Dung Quat Economic Zone from 10,300ha to 45,332ha by 2025.

 

Expansion of the Dung Quat EZ, long considered one of Viet Nam's most dynamic, will incorporate part of Quang Ngai Province's Binh Son, Son Tinh and Ly Son districts and is aimed at contributing to the province's high economic growth.

 

The expanded Dung Quat EZ is set to serve as a multi-sector investment destination for industry, trade, services, agriculture and forestry as well as petro-chemistry, steel production and ship-building, related to the development of a deepwater seaport in the area.

 

Together with the urban areas of Van Tuong, Doc Soi, Chau O – Binh Long, the EZ will additionally serve as a transport hub for the central and Tay Nguyen (Central Highlands) areas.

 

According to official figures, the expanded economic zone is set to house around 482,000 residents, including 310,000 urban dwellers, by 2015.

 

Cao Khoa, deputy secretary of the Quang Ngai Party Committee, said that the expansion would offer the province an opportunity to develop Dung Quat into a city and an industrial hub while providing a seaport service to the Central Key Economic Zone.

 

He added that the development of the economic zone would play an integral part in the rapid and sustainable development of Quang Ngai, turning it into an industrialised province by 2020.

 

The Dung Quat Economic Zone Authority granted licences to three investment projects with a total registered capital of VND1.7 trillion (US$83 million).

 

Dung Quat has so far licensed 120 projects, capitalised at VND150 trillion ($7.3 billion), 60 of which are already in operation, creating 12,000 jobs.

 

Ministry spotlights top exporters

 

The Ministry of Industry and Trade has recognised 376 businesses as prestigious exporters in 2010.

 

The fisheries sector leads the field with 49 businesses being honoured, followed by the garment and textile sector with 38, the rice sector with 32 and the rubber sector with 27.

 

Since 2004, the title has helped better advertise trademarks of Vietnamese exporters and encourage the firms to build up and improve their prestige in the global integration process.

 

Korean firms to get local advantage

 

The Ministry of Finance was willing to help South Korean enterprises solve their difficulties during their operations and enjoy equal treatment as Vietnamese counterparts.

 

Deputy Minister Do Hoang Anh Tuan delivered this message during a dialogue held late last week in Ha Noi.

 

Tuan described the event as a good opportunity for Korean enterprises to openly discuss new policies on tax and customs and administration reforms with Viet Nam's relevant agencies.

 

During the event, Korean businesses raised questions about preferential tariffs, value added tax, and regulations on customs procedures.

 

Long An licenses 28 projects

 

The southern province of Long An granted licences to 28 foreign-invested projects worth US$16.6 million during the first five months of this year, local authorities have said.

 

The latest addition has brought the total number of licensed projects in the province up to 371, capitalised at over $3.2 billion. To date, $1.37 billion or 43 per cent of total registered capital has been disbursed.

 

Among the province's top 10 leading sources of investments are Ireland, Taiwan, South Korea, Thailand, Japan and the US.

 

Deal to develop digital signatures

 

Asia Commercial Bank (ACB) will work with the Viet Nam Datacommunications Company (VDC) to develop a digital signature service, following the agreement they signed last Saturday.

 

The digital signature is a mathematical scheme for demonstrating the authenticity of a digital message or document, which makes a message or document created by a known sender unalterable in transit.

 

The service, VNPT-CA, will allow the bank to verify customers' identification online.

 

OceanBank opens central region branch

 

OceanBank opened a new branch in the central province of Thanh Hoa last week, increasing the total number of branches nation-wide to 17.

 

OceanBank Thanh Hoa will provide diversified financial services such as banking guarantees, warranties, financing, arranging capital, operational support payments and credit.

 

Yen Bai's exports surge in five months

 

The northern mountainous province of Yen Bai generated US$13 million in exports during the first five months of this year, a year-on-year increase of 21 per cent or equivalent to 37 per cent of its target set for this year, according to the provincial Department of Industry and Trade.

 

Among export items with high turnover were paper, clothing and agricultural products, the department said.

 

LPG producers meets 58% of demand

 

The country produced 52,500 tonnes of liquefied petroleum gas (LPG) in May, meeting 58 per cent of the domestic demand while the remainder or 37,500 tonnes was imported from overseas, said the Ministry of Industry and Trade.

 

In May, the world prices of LPG remained high due to unstable politics in North Africa, increasing imports from Japan and the world high prices of gasoline.

 

Experts predicted that if there was no big fluctuation in the world's gasoline prices, the world's prices of LPG would come standstill this month, resulting in stable LPG prices in the domestic market.

 

EuroCham hosts seminars on global trends’ impact on local labor 

  

The European Chamber of Commerce in Vietnam on June 21 and 22, will host a pair of business luncheons that address the impact of global labor trends on the local labor market in both Ho Chi Minh City and Hanoi.

 

A new Labor Code is likely to be introduced in 2012 as the Vietnamese labor market is exploding at twice the rate of the total population. There are many proposed changes relating to foreign employees, labor contracts, and employee rights.

 

Vietnam has been attracting foreign investors with cheap and youthful labor, but many challenges remain to attracting investment.

 

At these business luncheons, guest speakers will discuss the challenges, which include the large number of young students who enter the workforce instead of continuing education, the large number of workers in non-salaried jobs, and challenges in retaining a skilled workforce.

 

Two experts and guest speakers will help navigate some of these challenges for local business operators and HR professionals.

 

Guest speaker Ian Grundy, founder of Citrus Public Relations, has over 20 years of experience in international corporate communications. He is an expert in international media relations, event and crisis management, and has held senior positions in Singapore, New York and Zurich.

 

Also presenting will be Nicola Connolly, Managing Director of ADECCO Vietnam, and Chairwoman of the HR Committee for the European Chamber of Commerce in Vietnam.

 

Connolly is an experienced HR executive who has lived in Vietnam for seven years. She helped establish the first 100 percent foreign invested company to perform employment services in Vietnam.

 

The Caravelle Hotel Saigon will host this luncheon at 11:45 a.m. on June 21. (19 Lam Son Square, Dist. 1), the Hilton Hotel Hanoi will host the speakers in Hanoi at 11:45 a.m. on June 22 (1 Le Thanh Tong Street): Tickets cost VND650,000 for members and VND950,000 for non-members. To register, please contact Thuy at events-hcmc@eurochamvn.org (in HCMC) or Hien at hien@eurochamvn.org (in Hanoi).

 

Ministry spotlights top exporters

 

The Ministry of Industry and Trade has recognised 376 businesses as prestigious exporters in 2010.

 

The fisheries sector leads the field with 49 businesses being honoured, followed by the garment and textile sector with 38, the rice sector with 32 and the rubber sector with 27.

 

Since 2004, the title has helped better advertise trademarks of Vietnamese exporters and encourage the firms to build up and improve their prestige in the global integration process.

 

Korean firms to get local advantage

 

The Ministry of Finance was willing to help South Korean enterprises solve their difficulties during their operations and enjoy equal treatment as Vietnamese counterparts.

 

Deputy Minister Do Hoang Anh Tuan delivered this message during a dialogue held late last week in Ha Noi.

 

Tuan described the event as a good opportunity for Korean enterprises to openly discuss new policies on tax and customs and administration reforms with Viet Nam's relevant agencies.

 

During the event, Korean businesses raised questions about preferential tariffs, value added tax, and regulations on customs procedures.

 

Vietnam needs deep-water seaports: PM 

 

The Prime Minister has stated that Vietnam needs to build deep-water seaports in the northern city of Hai Phong and the southern province of Ba Ria-Vung Tau to receive larger-tonnage ships within the next five years.

 

The PM made the statement at a recent government meeting to discuss the development of seaport group No.5.

 

He said that Lach Huyen port in Hai Phong and Cai Mep and Ben Dinh ports in Vung Tau would be developed into deep-water seaports to receive larger vessels from the North and South, which can travel longer distances.

 

The PM noted that the development of seaports has to go with the simultaneous development of infrastructure, including distribution centers and logistic services.

 

The PM ordered the Ministry of Transport to develop all-purpose ports at Cai Mep, Cai Mep Ha and Ben Dinh-Sao Mai to cater to all import and export requirements.

 

The ministry was asked to work with the People’s Committee of Ho Chi Minh City and Dong Nai Province as well as relevant agencies, to build seaports on the right banks of the Thi Vai-Cai Mep River and develop a mechanism to attract international transit shipments.

 

The PM said building ports in new locations in HCMC is important because this will help to ease the traffic congestion inland in the city and facilitate the city’s sustainable development. Therefore, the development of ports was imperative.

 

The city needs to check and revoke licenses given for port construction projects that have not been implemented according to regulations.

 

Licensing of new port projects in HCMC have to be approved by the PM.

 

Vietnam revises inflation target to 15 percent 

 

Vietnam has made its second revison to inflation and growth forecasts in less than a month as price pressures are expected to intensify for at least another month.

 

Nguyen Xuan Phuc, head of the government’s office, told a press briefing on Friday that the annual inflation target has been raised to 15 percent for this year while the new economic growth target is 6 percent.

 

The revision comes quite soon after Planning and Investment Minister Vo Hong Phuc said in early May that gross domestic product may expand 6.5 percent this year. Inflation could stand at 11.75 percent by year-end, he said.

 

Vietnam’s government originally aimed to keep inflation at 7 percent this year. Consumer prices, however, kept surging over the past few months, rising 19.78 percent in May compared to a year earlier.

 

The World Bank said on Thursday that Vietnam’s inflation could accelerate to 22 percent in June before easing to 15 percent by the end of the year. After that the country will be able to regain its economic stabiliy, the bank noted.

 

In late February, the government had unveiled a series of policies to curb inflation and stabilize the economy.

 

Phuc said on Friday that the government would continue to try and cut public investment and narrow trade deficit. It will also help local companies solve their difficulties and ensure enough credit suppy for exporters, he said.

 

He said monetary policies have proved effective as the dong has become stable and the central bank was able to buy 1.2 billion of US dollars for its foreign reserves.

 

Phuc said total pledges of foreign direct investment in the first five months were only US$3.5 billion, or less than half compared to the same period last year.

 

According to the Ministry of Planning and Investment, foreign investors are facing difficulties dealing with rising global prices. They are also cautious because Vietnam’s economy has not stabilized yet.

 

Regarding an incident last month in which Chinese marine surveillance vessels cut exploration cables of PetroVietnam’s Binh Minh 02 ship, Phuc said the ship has continued its exploration actitivies.

 

Vietnam will take necessary measures to protect foreign investors and experts operating in the exclusive economic zone of the country, he said.

 

At Friday’s press briefing, Minister of Agriculture and Rural Development Cao Duc Phat said the government plans to develop a sea patrol fleet to protect Vietnamese seafood resources. The state budget will allocate more than VND1.5 trillion ($73 million) for this fleet, while 26 coastal provinces will spend VND580 to build their own patrol ships.

 

Vietnam finance ministry plans to ease income tax rules 

 

Vietnam’s Ministry of Finance is considering raising the tax threshold on infrequent income to VND1 million, twice the current level, news website VnExpress reported Saturday.

 

Infrequent income of VND500,000 or more, including royalties, lottery winnings and earnings from one-time employment contracts, is currently subject to a 10 percent tax.

 

The Finance Ministry said it also plans to classify taxpayers with infrequent income into two groups. Only those with total income of VND4 million and more per month will have to pay the 10 percent tax for their infrequent income.

 

The ministry had previously proposed increasing the taxable income threshold from VND4 million (US$195) a month to VND5 million ($240) amid high inflation this year.

 

However, the National Assembly's Financial and Budgetary Committee rejected the proposal, saying that the current Personal Income Tax Law would stay unchanged throughout this year.

 

Analysts and taxpayers have been urging the government to make amendments to the law, which was approved in 2007, to keep it updated with current economic situations. Some analysts think that the infrequent income tax threshold in particular is now too low.

 

Vietnam trade ministry reviews new import rule: report 

 

Vietnam’s Ministry of Industry and Trade said it is reviewing a new rule that tightens controls over alcohol, cosmetics and mobile phones imports, following concerns raised by foreign business groups.

 

The rule, effective June 1, stipulates that the product groups can only be imported via one of three Vietnamese seaports. Importers also need to provide authorization documents notarized by Vietnamese diplomatic representatives in the country of origin.

 

According to the ministry, the rule aims to prevent counterfeit and low-quality goods coming into Vietnam.

 

News website VnExpress cited Deputy Industry and Trade Minister Nguyen Thanh Bien as saying on Friday that his ministry was reconsidering the rule after several business groups, including the European Chamber of Commerce, voiced their concerns.

 

“We have met them and consult them in order to check whether our regulations have broken international commitments and WTO rules,” Bien said.

 

Foreign business groups have complained about the new import rule, even suggesting that it’s just a measure to control trade defict.

 

European Chamber of Commerce head Alain Cany told a twice-a-year dialogue between the business community and government late last month that the restrictions “may be in breach of Vietnam’s international trade law obligations.”

 

At least 100 local car importers are protesting another trade ministry rule that also requires them to show authorization documents signed by diplomatic representatives, VnExpress reported.

 

But Bien said the ministry thinks the restriction on car imports is necessary and will hold talks with importers to discuss the rule, which will take effect on June 26.

 

Tuna exports to Japan pick up

 

Vietnamese tuna exports to Japan in the first five months reached 434 tonnes, earning over US$3 million, up 264.5 percent against the same period last year, said the Vietnam Association of Seafood Exporters and Producers (VASEP).

 

Export prices also saw a 32 percent increase compared to last year, reaching US$6.98 per kilo, VASEP said, attributing this to the recent earthquake and tsunami that hit Japan.

 

Of the total tuna exports, 89.5 percent was raw material and 10.5 percent was processed products.

 

Japan is now Vietnam’s biggest tuna importer, followed by the US.

 

Laos – Vietnam Development Company established

 

The Thanh An Corporation (Army Corp 11 – Vietnam Ministry of Defence) and the Laos General Department of Logistics on June 4 signed a joint venture contract to establish the Laos – Vietnam Development Company.

 

Attending the signing ceremony were Major General Phuvong Vongphon, Vice chairman of the Laos General Department of Logistics; Major General Bui Quang Vinh, Commander of Army Corps 11 and senior officers of the two countries’ armies.

 

The new company will engage in civil and industrial construction and other infrastructure projects; agricultural production and farm produce processing.

 

The Laos-Vietnam Development Company is the successor of the Laos-Vietnam Joint Venture ACSCO, which was established since 1993. Through its 18-year history, ACSCO cooperated with the Laos’ army and people in constructing many significant projects such as the Xiang Khouang Hospital 101, Nam Hum military school, the meeting hall of the General Department of Logistics, the Hospital 103, the Lao Ministry of Defence’ guest house and especial the Hat Sieu national defence and economic zone.

 

Hanoi-Kuala Lumpur direct air route opens

 

The national flag carrier Vietnam Airlines, in co-ordination with Ho Guom Tourism JSC, organised a ceremony to open a direct Hanoi-Kuala Lumpur air route and a gala to promote tourism on June 3.

 

The direct route is a part of the plan to develop flight network from Hanoi to other Southeast Asian countries.

 

From June 16, passengers travelling between Hanoi and Kuala Lumpur will save time because they will not have to transit in Ho Chi Minh City as before.

 

Mai Quoc Tuan, head of Vietnam Airline's representative office in Malaysia, said the Hanoi-Kuala Lumpur direct route also aims to relieve pressure on the Kuala Lumpur-HCM City route.

 

The direct route will benefit passengers connecting from Hanoi to European and Northeast Asian countries, he added.

 

Vietnam Airlines will use the A321 airbus with a capacity of 168 passengers, on the Hanoi-Kuala Lumpur route. Seven flights per week will be added and to promote the new flight, the national flag carrier is offering a special discounted price of VND2.5 million (equivalent to US$120) for return ticket.

 

To attract passengers, Vietnam Airlines will co-ordinate with Vietnamese and Malaysian travel agencies to design tours to famous destinations in northern Vietnam such as Ha Long Bay, Sapa and Ninh Binh. 

 

Robusta experiences big month on futures exchange

 

Vietnamese robusta coffee had a big month on the London International Financial Futures and Options Exchange (LIFFE) in May, with most stocks managing to meet quality specifications.

 

LIFFE’s statistics show that 7,853 lots (equivalent to 78,530 tonnes), or 97 percent of the more than 8,050 lots of Vietnamese robusta coffee submitted for inspection last month, met the futures market’s specifications.

 

They also accounted for 73 percent of all robusta coffee from around the world.

 

In the period from October 2010 to May 2011, Vietnam exported 1.1 million tonnes of robusta, which is used mainly for blending, to become the biggest producer and exporter of this type of coffee.

 

Vietnam also exports around 25,000 tonnes of arabica coffee, which defines the aroma and taste of the beverage.

 

VNA/VNS/Tuoi Tre/VIR/SGGP