Chinese travel firms eye Da Nang as destination

 

Representatives from around 90 Chinese travel firms met with local tourism operators and managers at Da Nang's Silver Shores Resort last week in order to study tourism possibilities in the central city.

 

Chinese representatives were introduced to local tourist spots and specialties as well as accommodation and recreation facilities. Representatives from Vitours and the Shenzhen based AoYou exchanged information and ideas regarding possible co-operation, tours and services.

 

China is one of Viet Nam's key tourism markets, according to the Viet Nam National Administration of Tourism. The number of Chinese visitors to Viet Nam reached 905,000 during 2010, a year-on-year increase of 74.5 per cent.

 

State auditors go through Bao Viet, Vietcombank

 

The State Audit Office of Viet Nam (SAV) have just audited Bao Viet Group, Vietcombank and the Viet Nam Development Bank.

 

SAV has also audited businesses including Electricity of Viet Nam, Viet Nam National Shipping Lines, Dung Quat Oil Refinery and Vietsopetro Joint Venture.

 

Marine Economic Forum to kick off in June

 

Viet Nam Marine Economic Forum 2011 (VMEF) will be held on June 8 in Nha Trang city.

 

With its theme of "Driving forces and challenges for the development of Viet Nam's coastal economic zones", the forum will create chances for domestic and foreign investors and experts to study marine resources potential and the development of coastal economic zones in Viet Nam.

 

Organisers expect the forum to attract around 400 guests including ministry leaders, experts, economic and policy researchers and domestic and foreign businesses.

 

Hoa Phat sees $34 million profit in first four months

 

The total revenue and post-tax profits of Hoa Phat Group (HPG) in the first four months of the year hit VND6.5 trillion (US$302.3 million) and VND730 billion ($34 million), or 36 and 39 per cent of this year's targets, respectively.

 

This puts Hoa Phat steel products in pole position in terms of domestic market share with a total output of 70,000 tonnes early this year.

 

HPG is currently constructing its steel plant No3 with an annual capacity of 500,00 tonnes at the Hoa Phat Iron and Steel Complex in Hai Duong City.

Imports from Cambodia score zero tax rate

 

The zero tax rate will be applied to selected products imported from Cambodia including shrimp, crab, vegetables, fruit and coffee, according to Circular 68 from the Ministry of Finance.

 

To benefit from the zero tax rate, products must have Certificate of Origin Form S issued by juridical Cambodian offices and they need to pass through border gates agreed between the Viet Nam's Ministry of Industry and Trade and the Cambodia's Ministry of Commerce.

 

The new regulations will come into force on October 1.

 

Official urges boost in Saudi Arabia trade

 

Deputy Minister of Industry and Trade Le Duong Quang has called for a boost in bilateral relations and trade between Viet Nam and Saudi Arabia, saying there should be more frequent meetings between high-level officials and a rise in the number of visits by businesses delegations.

 

Quang made the comments during the first session of the Viet Nam – Saudi Arabia joint committee on economic, scientific and technological co-operation held recently in the Saudi capital of Riyadh.

 

The two sides used the event to review their relationship, saying it had been stepped up over the past few years but there was still plenty of untapped potential.

 

Quang asked Saudi Arabia to help foster the implementation of the protocol on oil, gas and mineral co-operation signed in April last year and to help Viet Nam build oil refineries and power plants.

 

Saudi Arabian Deputy Minister of Economy and Planning Ahmed Bin Ibrahim Al Hakami agreed. He also suggested the two countries further help businesses expand co-operation, adding that specific plans for this co-operation should be carried out effectively.

 

The two sides proposed solutions to strengthen the relationship across a wide range of sectors including trade, oil and gas, industry, agriculture, finance, banking, transportation, investment and construction.

 

They emphasised the importance of establishing a mechanism to ensure food and energy security, with a focus on attracting investment from Saudi Arabia in Viet Nam's agriculture sector to re-export to the West Asian country and supplying crude oil to Viet Nam.

 

Saudi Arabia is now Viet Nam's biggest West Asian trade partner. Two-way trade last year increased by 64 per cent to hit US$744 million. Among the goods Viet Nam exports to Saudi Arabia are seafood, tea, coffee, pepper, cashew nuts, rice, textiles, garments, and wooden goods.

 

The two countries are negotiating agreements on a visa exemption for diplomatic and official passport holders and on protecting and encouraging investment. Other agreements being discussed cover air transportation, an agreement between the two foreign ministries and another between the two countries' central banks.

 

Viettel opens modern regional data centre

 

Viettel's Internet Data Centre (IDC) has opened its third data centre - the biggest and most modern one in Southeast Asia - in the southern province of Binh Duong.

 

The Viettel IDC Song Than, 25km away from HCM City, has been built with a total investment of US$18 million on a land area of 3,500 square metres.

 

The total space created by the five-floor building is 10,000sq.m, enough to accommodate 40,000 servers or 1,600 racks.

 

The centre provides space for servers, server renting, storage for data, data recovery after disasters (earthquake, fire, flood, etc.), web/mail hosting and virtual private networks. The centre has two different power sources and eight generators with 50,000 litres of oil that can provide electricity supply to the building for three days.

 

A modern managing room monitors the centre's top notch air conditioning and fire fighting systems constantly so that the centre can provide uninterrupted support to customers, 24 hours per day.

 

It is estimated that server renting would help customers save 50-70 per cent of the investment expenditure, take shorter time to deploy, and reduce expenses for technical staff.

 

"Our targeted customers are those who need to keep vital information, like government offices, ministries, banks, stock, insurance, telecom and even small- and medium- sized enterprises," said Bui Thanh Van, head of Viettel IDC's marketing department.

 

Viettel IDC has so far invested $30 million in four data centres in the north and the south. The latest, Ha Noi-based Hoa Lac centre is under construction and expected to begin operations next year.

 

The company, a joint venture between Viettel Corporation and Taiwanese Chunghwa Telecom since 2008, has reached the ISO 9000 certification for quality management and the ISO 27000 security certificate. Around 500 customers have hired the company's services so far. To mark the opening of its latest centre, customers will be provided free services at Viettel IDC Song Than from June 1 until July 31.

 

French look to regional gateway

 

Viet Nam could be an effective gateway for French businesses to better access potential markets in the ASEAN region while France could assist Vietnamese goods in further penetrating the huge European Union market.

 

Head of the Viet Nam Chamber of Commerce and Industry's International Relations Office Tran Thien Cuong confirmed the above statement during a conference held in Ha Noi yesterday.

 

Vietnamese exports to France, worth over US$1 billion in 2010, still fell far short of potential, Cuong said.

 

Among Viet Nam's exports including seafood, footwear, textiles, garments and home appliances.

 

Vietnamese companies should pay better attention to French consumer demand and improve the quality of their products in order to help enhance Viet Nam's presence in the EU market, said the ASEAN Director of the Invest in France Agency Nguyen Duc.

 

Domestic businesses could join hands with French counterparts in building factories in Viet Nam, exporting subsequent goods to France, he said, adding that this could help firms effectively meet EU standards.

 

Trade experts attending the conference agreed that untapped opportunities for Vietnamese businesses in the French market, with a consumer population of over 67 million, did exist.

 

The French economy was expected to continue its recovery during 2011, hoped to eventually lead to improved French spending. Increased spending would offer Vietnamese businesses an excellent opportunity to expand their operations in the EU market.

 

Shipbuilder launches new container vessel

 

Ha Long Shipbuilding Company in the northern province of Quang Ninh successfully launched the 1,800TEU VNL Ruby container ship last Saturday.

 

She is one of 32 ships built by the Viet Nam Shipping Lines (Vinalines) to develop its fleet.

 

The ship, designed by Chinese shipbuilders, is more than 179 metres long and 27 metres wide and can travel at a top speed of 20.1 nautical miles per hour (37.2 kilometres per hour).

 

Rice prices fall in Mekong Delta 

 

The price of summer-autumn un-husked rice in the Mekong Delta region saw a drop of VND200-300 per kilogram on May 23 compared to early last week.

 

A kilogram of fresh un-husked rice traded at VND4, 700-4,900 in Binh Minh, Tam Binh and Tra On districts of Vinh Long Province, while a kilogram of dry un-husked rice cost VND5, 600-5,800.

 

The price of winter-spring rice saw a drop as well at the Thot Not wholesale rice market in Can Tho City and Vinh Long Province.

 

The winter-spring rice price fell slightly to VND7, 800-7,900 per kilogram, down by VND50-100 per kilogram.

 

Enterprises and rice mills have bought un-husked rice and polished rice very hesitantly because they already have a surplus stock for sale.

 

VietinBank lends $200 mln for Dai Hung oil field expansion 

 

VietinBank, Vietnam's largest listed bank, will lend $200 million for the expansion of the Dai Hung oil field, part of a broader effort to increase national output by 2015, state-owned field operator PetroVietnam said on Wednesday.

 

The seven-year loan facility was signed in Hanoi to finance the second phase of the expansion, PetroVietnam Exploration Production Corp (PVEP), the exploration arm of PetroVietnam that develops the field, said in a statement.

 

Petrovietnam has previously said it expected to produce between 15 million and 20 million tons (300,000 to 400,000 barrels per day) of crude oil a year nationally and 8.5 billion to 14 billion cubic meters of gas annually by 2015.

 

Vietnam's crude oil output has been falling due to ageing fields, including its largest field Bach Ho (White Tiger).

 

Last year national output dropped 8.8 percent from 2009 to an estimated 14.97 million tonnes, or 300,630 bpd, government statistics showed.

 

The expansion of Dai Hung (Big Bear) field in Block 05-1a in Nam Con Son basin off the country's southern coast would help PVEP and PetroVietnam meet production targets in coming years, the statement said.

 

It gave no further details of the Hanoi-based VietinBank's loan or on the expansion project.

 

Petrovietnam has been the sole operator of Dai Hung field since 2003 after the withdrawal of Russian state oil firm Zarubezhneft.

 

Dai Hung oil is significantly heavier than other Vietnamese grades, with an API gravity of 30.70, but a low sulphur content of 0.095 percent.

 

Vietnam bonds decline as inflation accelerates to 29-month high 

  

Vietnam’s three-year bonds declined, pushing yields to the highest level since November 2008, after inflation accelerated to a 29-month high in May. The dong gained.

 

Prices rose 19.78 percent from a year earlier, compared with 17.51 percent in April, according to data released by the General Statistics Office in Hanoi Tuesday. That’s the quickest pace since December 2008.

 

“Given quickening inflation, banks will demand higher bond yields, especially in the primary market,” said Pham Minh Hoang, a fixed-income dealer at Ocean Commercial Joint-Stock Bank in Hanoi.

 

The yield on the three-year bonds rose eight basis points, or 0.08 percentage point, to 12.74 percent, according to a daily fixing from banks compiled by Bloomberg. The dong strengthened 0.4 percent to 20,630 per dollar as of 3:35 p.m. in Hanoi, according to data compiled by Bloomberg.

 

The central bank fixed the reference rate at 20,668 Tuesday, compared with 20,673 yesterday, according to its website. The currency is allowed to trade up to 1 percent on either side of that rate.

 

Vietnam replaces mega steel project with industrial park 

 

Vietnam’s government has decided to develop an industrial park on the site where a now revoked US$9.8 billion steel complex was to be built.

 

The 1,000-hectare project in the south central province of Ninh Thuan will be included in a list of industrial parks that need to be given the priority, the government said in a statement on its website late last week.

 

The new project is replacing the $9.8-billion Ca Na steel complex, a joint venture between state-owned shipbuilder Vinashin and Malaysia’s Lion Group, which had its license revoked in February due to delays in construction.

 

Investors broke ground on the project in late 2008 but then no construction was carried out.

 

Ninh Thuan officials said the project’s site is very accessible, which will make it an attractive area for businesses.

 

Vietnam sugar companies seek VAT exemption 

 

The Vietnam Sugar Association has proposed a value-added tax exemption for locally produced sugar to help its members compete against cheaper smuggled products, news website VnExpress reported Sunday.

 

The association estimates that 250,000 tons of sugar, or around a quarter of local consumption, is smuggled into the country every year. The large volume means tax revenue losses of around VND500 billion for the state treasury, while local producers are placed in a tough situation.

 

Since smuggling cannot be stopped completely anytime soon, it’s necessary to make local products more competitive by cutting VAT to zero from the current 5 percent, the association said.

 

It also called for stronger measures to deal with smugglers and demanded all smuggled sugar is re-exported.

 

Vietnam is expected to produce 1.07 million tons of sugar in the 2010-2011 season, up from around 900,000 tons the previous year. Demand in 2011 is set to reach 1.2 million tons.

 

The sugar association said that despite a 23.1 percent increase in sales in the first four months, its members still have a stockpile of 542,000 tons.

 

The Ministry of Industry and Trade in February granted annual quotas for 24 domestic companies to import 250,000 tons of sugar. Last month, it asked them to stop importing so local companies could clear their stock.

 

Slovakia invests 378 million euro in Hoa Binh

 

The Hoa Binh People’s Committee signed a memorandum of understanding on investment cooperation worth 378 million euro with the BGT Slovensko group from Slovakia on May 24.

 

Accordingly, BGT will build infrastructure in the Lac Thinh Industrial Zone in Yen Thuy district, Hoa Binh province and carry out five projects within the zone. These include plants to manufacture thermo-electric furnaces and insulation materials, and solar batteries, process milk and dairy products, and produce beer.

 

The project worth 378 million euro will be divided into three phases which will start in May. In the first phase, BGT will build a plant to manufacture thermo electric power furnaces and a brewery. They are expected to start operating in early 2014 and generate more than 1,000 jobs for local people.

 

Gold trading stagnates following purity concerns

 

Gold trading has been slowed down in the local market because of recent concerns over the purity of gold bullion.

 

The stagnation has been fuelled by dealers on the defensive waiting for official information on the management of gold bars on the free market.

 

Vietnam has been considering eliminating gold bullion trading on the unofficial market in a bid to reduce trade deficit and stabilize its macro-economy.

 

News analyses have indicated that gold prices will continue rising as the yellow precious metal is now seen as a safe property against the backdrop of a worsening EU debt crisis.

 

SPDR Gold Trust, the world’s largest of its kind, Monday purchased 7.58 tonnes of gold, lifting its stock to 1,209.53 tonnes, the largest volume since May 5.

 

SPDR has stocked up on 18.19 tonnes in the last 2 trading sessions, much more than the total amount it had stockpiled in the earlier 6 trading sessions.

 

China was reported to have bought 200 tonnes of gold in the first quarter, up 55 percent over the last fourth quarter and more than 200 percent compared to the same period last year.

 

Meanwhile, it had purchased 240 tonnes in the entire year of 2010.

 

The country procured 93.5 tonnes in April alone, according to the World Gold Council.

 

The greenbacks will weaken for at least another two months, which acts as a stimulus to raise gold prices, experts believe.

 

Domestic gold prices crawled up to VND37.55 million (US$1,816.82) per tael at the end of Tuesday while world prices hit $1,523 per ounce, a $12 hike from one day earlier.

 

1 tael = 1.21 troy ounces.

 

Honeywell explores business opportunities

 

Honeywell has shown interest in investment opportunities in Vietnam, especially setting up a production base for exporting products to ASEAN and Asia-Pacific markets.

 

Shane Tedjarati, President and CEO of Honeywell China and India, was speaking about his company’s attention to Vietnam at a meeting at City Hall last week between HCMC chairman Le Hoang Quan and a 25-member Honeywell delegation.

 

The business mission, which also included 22 senior executives of the Honeywell Global Executive Development Group, wanted to learn about the city government’s support for long-term investment as well.

 

Honeywell has four main business lines that are driven by new technologies and solutions, such as integrated avionics, non-ozone depleting refrigerants, flight safety systems, turbochargers and knowledge management solutions, said Tedjarati.

 

According to him, Honeywell won a contract in 2006 to supply Dung Quat Oil Refinery with an US$17.5-billion process automation system, and PetroVietnam, the developer of the refinery, is still Honeywell’s biggest local customer, added Tedjarati.

 

“This visit aims to discuss with local government and business leaders about opportunities and challenges in both Vietnam’s Southern Key Economic Region and ASEAN,” said Herbert A. Cochran, executive director of the American Chamber of Commerce in Vietnam (AmCham Vietnam), which helped organize the trip for Honeywell.

 

“In particular, they would like to hear about current and planned infrastructure projects, such as the Cai Mep Deepwater Ports, Long Thanh International Airport… as well as the road network and electric power.”

 

Cochran said the delegation also visited some industrial parks in the city, including the Saigon Hi-Tech Park (SHTP).

 

Honeywell, a U.S.-headquartered “Fortune 100” company with annual sales of US$33.4 billion, has a global network of 122,000 employees including more than 19,000 engineers and scientists. It has hundreds of factories, R&D technology centers, sales offices and distribution warehouses in 27 countries.

 

ANZ opens Signature Priority Banking in Hanoi

 

ANZ on Monday opened a Signature Priority Banking branch in Hanoi, the second in Vietnam targeting high-income clients.

 

ANZ Signature Priority Banking is the selective service aiming at Vietnamese customers with the total value of each deposit, investment and insurance of over US$50,000. Those customers will be served through private and prioritized rooms with a 24 hours service line.

 

Joe Farrugia, head of retail banking and wealth management of ANZ Vietnam, said special incentives would be given to such clients.

 

Those customers who participate in Signature Priority Banking will be attended to by investment specialists, and will be invited to regular seminars on investment outlook as well as lifestyle events, he said.

 

Fruit orchards to adopt VietGap standards 

 

The Ministry of Agriculture and Rural Development held a seminar on May 24 to find ways to develop fruit orchards according to VietGap (Vietnamese Agriculture Practices) standards.

 

The seminar took place in the southern province of Tien Giang where methods for planning and providing financial support to farmers to help improve cultivation techniques were discussed.

 

Participants also discussed ways to maintain and expand the link chain between farmers, buyers, processors and distributors to produce and market fruits and encourage the application of Gap Song Tien, VietGap and GlobalGap.

 

According to the ministry, the southern region has over 400,000 hectares of orchards, which produce over four million tons of fruit per annum.

 

The region annually exports fruits worth US$22-23 million.

 

Cultivation of most fruits meets the VietGap and GlobalGap standards, including king oranges, Nam Roi pomelos, Hoang Hau dragon fruits, Tan Trieu pomelos, Lo Ren star apples and Hoa Loc mangoes.

 

The ministry said there were still many shortcomings in fruit cultivation, like small-specialized cultivation areas, quality differences and low international competitiveness.

 

VietGAP, based on the ASEAN GAP model, is designed to meet specific needs of the Vietnamese fresh fruit and vegetables industry.

 

VietGAP consists of twelve sections that cover practices in all four components of food safety, environmental management, workers health, safety and welfare and production quality.

 

Practices in VietGAP aim at preventing and minimizing hazards that

occur during the food production chain including species, soil, fertilizers, chemicals, water, environmental impact, workers and training.

 

VietGAP helps Vietnamese growers, central markets and retailers to supply domestic and international customers and consumers with credible fresh produce from the country.

 

Vietnam gets 81 more worldwide recognized accountants, auditors 

The UK-based Association of Chartered Certified Accountants (ACCA) has presented certificates to 81 new graduates in Vietnam at separate celebration programs in Hanoi and Ho Chi Minh City.

 

The new ACCA affiliates passed their examinations in June and December 2010.

 

The global body for professional accountants held the two celebration events in HCM City Tuesday and Hanoi Wednesday. Representatives of companies and organizations where the ACCA affiliates are working were among the guests.

 

Lucia Real-Martin, ACCA director for emerging markets, Asia handed over the certificates to the new members. 

 

“To reach this point, each of you has needed to display the highest levels of technical, practical and professional ability,” she told her new members in a speech she delivered at the HCM City celebration.

 

“By completing a demanding set of examinations and gaining high quality professional experience, you have earned the right to call yourself a professionally qualified accountant.

 

“With the ACCA qualification, you are fully equipped to take the opportunities that the global economy now presents, and of course you are in an enviable position to help shape the future of the accounting profession in Vietnam.”

 

A congratulation message from ACCA President Mark Gold reads, “In current global economic conditions, the flexibility and adaptability of the ACCA qualification paired with its lifelong learning and ethnics commitment could not be more relevant or useful.”

 

Pham Hoai Nam, audit partner with Deloitte Vietnam, said, “Over a hundred of our staff are now ACCA members or in pursuit of the ACCA qualification. This is testament to our focus on developing our people and the accounting industry as a whole.

 

His company is the local member firm of the leading global professional services company Deloitte.

 

ACCA is a global body for professional accountants with a network of 147,000 members, and 424,000 students across 170 countries and 83 offices, said Ms. Real-Martin, director for emerging markets, Asia.

 

ACCA currently has some 450 members in Vietnam.

 

Credit Agricole chips in for dam project

 

Credit Agricole Corporate and Investment Bank yesterday inked a long-term agreement worth US$178 million with Dakdrinh Hydropower Joint Stock Company to finance construction of the 125MW Dakdrinh Hydropower Plant.

 

The French banking group, acting as the sole mandated lead arranger and lender, arranged the 13-year term loan with provisions to finance up to 80 per cent of the plant's investment cost.

 

The loan will be insured by Nippon Export and Investment Insurance (NEXI) under its untied loan insurance programme and guaranteed by the Ministry of Finance.

 

The VND4.9 trillion (US$237.8 million) Dakdrinh Hydropower Plant is invested and operated by Dakdrinh Hydropower JSC, a subsidiary of PetroVietnam Power Corporation (PV Power).

 

Vu Huy Quang, general director of PV Power, said the plant was the biggest hydropower plant in central Quang Ngai and Kon Tum provinces and, together with the Dung Quat Economic Zone, played a critical role in the economic development of Viet Nam's central region.

 

Quang said the plant was one of the critical power plants noted in Master Power Plan No 6. Upon completion, which is estimated for late 2013, the plant is expected to generate an average power output of 540 million kWh per year.

 

"Therefore, Credit Agricole's financing plays an important role in helping keep construction of the power plan on schedule," he said.

 

Minoru Kaneko, chief representative of NEXI in Singapore, also said completion of the plant would help ease power shortage for enterprises operating in the region, including 400 Japanese companies, as well as contribute to Viet Nam's economic growth.

 

To date, Credit Agricole CIB has financed many projects in Viet Nam, including the Ca Mau-PM3 gas pipeline, Dung Quat Polypropylene Plant, hydropower plants, coal projects, sea port developments and other industrial projects.

 

Sai Gon-Ha Noi Bank opens Cambodia branch

 

The Sai Gon - Ha Noi Commercial Joint Stock Bank (SHB) was allowed to open a new branch in Cambodia yesterday, according to the State Bank's Regulation 4081/NHNN-TTGSNH.

 

The branch, located in Phnom Penh, will operate under Cambodian regulations.

 

SHB needs to complete all litigation procedures and prepare for material facilities as well as human resources within 18 months in order to receive a licence.

 

Vincom breaks ground on ‘Village' project

 

Property developer Vincom Group on Tuesday launched its Vincom Village project. The company is pumping VND10 trillion (US$476.2 million) into the 183.5-ha ecological construction in Long Bien District.

 

The village project includes villas, apartment blocks, trading centres, a school and a hospital.

 

Developers expect to complete the first phase of construction at the end of this year. Investors will begin receiving their villas from September and all villas will be handed over by December.

 

Doosan builds giant cranes in Viet Nam

 

Doosan Heavy Industries Viet Nam (Doosan Vina) successfully prepared three rail mounted quay cranes and four rubber tired gantry cranes for export to Singapore and India by sea yesterday.

 

The cranes, with a loading capacity of 40-50 tonnes, are set to bring in US$15 million in turnover.

 

World Bank back's public investment

 

The World Bank on Tuesday pledged US$350 million to improve Viet Nam's public investment reforms.

 

The reforms will include strengthening the four stages of the investment cycle – selection, implementation, financial management and oversight – to avoid the adverse impacts of the global economic crisis.

 

"Since the country is facing enormous demand for infrastructure development in the coming years, strengthening the project cycle will play a key role in ensuring a high quality of public investment," said World Bank director for Viet Nam Victoria Kwakwa.

 

"We encourage the Government to continue the reform programme, especially in the State-owned-enterprise sector, in order to achieve higher productivity of state invested capital."

 

The major part of this year's financing – $262.7 million – will come from the bank's International Development Association and the rest will come from the International Bank for Reconstruction and Development.

 

A $500 million package for the nation's Public Investment Reform was approved in December 2009.

 

Technology reigns at bank conference

 

Optimising technology infrastructure and diversifying banking services are the focus of the two-day Banking Viet Nam Conference 2011.

 

The conference would look at information technology solutions in the finance and banking sector as well as concrete solutions to optimise technology infrastructure and improve banks' capacity in dealing with risks, said State Bank of Viet Nam Governor Nguyen Van Giau.

 

This year's conference, which is organised by the SBV's IT Department and the International Data Group (IDG), will also address the issues of human resources, product streamlining and improving service quality.

 

The annual Banking Viet Nam information technology event updates industry players on communication applications in all fields of banking activities with the aim of helping construct Viet Nam's modern, integral banking system using the schedule set by Government and the sector.

 

Le Manh Hung, director of the department, said the bank would focus on optimising infrastructure and promoting IT applications for the State Bank from 2011-15.

 

Hung added the bank would develop IT and communications by working toward concentration, multi-services and users.

 

The department would also reorganise the central bank's professionalism by working toward concentration and unification from central to local levels.

 

Nguyen Trong Duong, director of the IT Application Department of the Ministry of Information and Communications, gave participants background information on the country's plan to make the country strong in ICT. Duong said the country now needed to focus on developing human resources in ICT to meet international standards. By 2015, 30 per cent of graduate students would be qualified for the international labour market and the number of internet users should reach 50 per cent of the country's population, he said.

 

By 2020, the ICT sector hoped to have 80 per cent of graduate students qualified for international labour market and about 1 million ICT workers would be capable of working domestically and internationally.

 

Meanwhile, the number of internet users would reach more than 70 per cent of the country's population.

 

The country would develop ICT into an area of key economic activity, and focus on software, digital content and services. The ICT sector targeted a contribution of 8 to 10 per cent of the country's GDP by 2020.

 

According to latest statistics from the central bank, credit indices/GDP and deposits/GDP increased from 17.7 per cent and 13.6 per cent in 1991 to 115 per cent and 130 per cent in 2010, respectively.

 

The number of ATM machines and citizens' banking accounts had also increased. By the end of last year, the number of cards in the country reached 28.5 million. There were more than 11,000 ATMs and nearly 50,000 acceptance devices (POS).

 

Bank cards were becoming an increasingly popular way to pay in Viet Nam and commercial banks were focused on quick development on this front.

 

Participating at the Banking Viet Nam 2011 Expo are banks, credit institutions and international organisations with expertise in POS payments, mobile banking, internet banking and kiosk banking.

 

Reservoir comes on line in Quang Binh

 

The biggest reservoir in the central province of Quang Binh was put into use for the first time on Thursday.

 

The Rao Da Reservoir, costing more than VND347 billion (US$17.3 million), is located in Truong Xuan Commune, Quang Ninh District.

 

It has the capacity of more than 83 million cubic metres.

 

The reservoir includes a main dam, measuring 700m in length and 33m in height, with three auxiliary dams totalling 469m, plus flood mitigation and canal systems.

 

The reservoir will supply water for nearly 6,000ha of rice paddy in Quang Ninh and Le Thuy districts and ensure clean water for about 40,000 residents in five communes of Quang Ninh District. It will also help reduce flooding in the lowlands and increase the aquaculture area.

 

Speaking at the inaugurating ceremony, Quang Binh People's Committee chairman Nguyen Huu Hoai praised the the reservoir's quality and called for its operation to be well managed.

 

ADB helps Hanoi in transport, water projects

 

The Asian Development Bank (ADB) pays special attention to funding transport and environment projects in Vietnam and Hanoi in particular.

 

This remark was made by Ayumi Konishi, ADB Country Director in Vietnam, at a meeting with Vice Chairman of the Hanoi People’s Committee Hoang Manh Hien Tuesday.

 

During the talks, Hien proposed a number of transport and safe water projects as priorities in cooperation with ADB.

 

The projects cover urban transport development, focusing on management capacity enhancement for Hanoi’s railway sector and technical assistance for working out a project for the urban railway route No 3, as well as the sustainable development of the city’s transport sector, with priority to be given to building modern parking areas and developing environmentally friendly buses.

 

A project on delivering safe water from Da River waterworks to Hanoi’s western districts was also included in the list.

 

Ayumi Konishi pledged that ADB would actively coordinate with municipal agencies to prepare for the projects.

 

Japan makes grant for expressway project

 

The Government of Japan granted an US$2.2million project to help Viet Nam strengthening operation and maintenance system for expressway.

The 2-year project was signed yesterday between the Japan International Co-operation Agency (JICA) and the Ministry of Transport (MOT).

 

Under framework of the Japanese Government funded project, JICA will dispatch experts, provide equipment and organise training courses for Vietnamese personnel in Japan and in Viet Nam. Specifically, the Japanese experts will help prepare principles, standards, manuals related to operation and maintenance of expressway.

 

$200 mln for Dai Hung oil field development

 

PetroVietnam Exploration Production Corporation (PVEP) and Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), Hanoi branch has signed a $200 million loan for the oil field project, Lot 05-1(a).

 

Under the agreement, Vietinbank committed to extending a seven-year loan of $200 million to finance the second phase of Dai Hung oil-field development project, which has been approved by the Vietnamese Prime Minister based on its reserves and economic efficiency.

 

The project is expected to meet fuel demands of the market and develop the country’s economy.

 

According to Director of PVEP Nguyen Vu Truong Son, the Dai Hung field, Lot 05-1(a), is located in Nam Con Son sediment basin off the continental shelf of southern Vietnam.

 

Recent oil and gas exploitation activities in the field have substantially contributed to PVEP and Vietnam National Oil and Gas Group (PetroVietnam) accomplishing production and business targets.