S&P revises Vietcombank’s outlook to stable

Standard & Poor's Ratings Services (S&P) said today that it had revised its outlook on the long-term rating on Bank for Foreign Trade of Vietnam (Vietcombank) to stable from negative.

Meanwhile, it has also affirmed its 'B+/B' counterparty credit ratings on the bank and revised the stand-alone credit profile (SACP) of the bank to 'b+' from 'b'.

"The outlook revision reflects Vietcombank's improved SACP after Mizuho Corporate Bank Ltd (MCB) acquired a 15 percent stake in the bank," said Standard & Poor's credit analyst Ivan Tan.

"We revised Vietcombank's SACP to reflect the bank's improved capital position after the MCB deal."

However, Tan said in S&P’s view, Vietcombank's capital and earnings are weak.

S&P may lower the ratings if Vietcombank's nonperforming loans increase sharply and its operating performance is poor, or capitalization weakens substantially.

The Ho Chi Minh Stock Exchange (HoSE) has given the green light to Vietcombank (coded VCB) to list additional over 347.6 million shares offered to Mizuho Bank on the southern bourse starting January 17.

But since the additional shares will not be traded within 5 years, the new listing can only raise the influence of VCB shares on the final calculation benchmark VN-Index.

There are about 182.78 million VCB shares listed on the southern bourse HoSE accounting for 1 percent of HoSE’s total value.

After the listing, the number of VCB shares will be over 530 million shares worth VND11.1 trillion in value, accounting for 2.81 percent of HoSE’s total value. Its ranking will be revised to No.7 from the current 15.


Trades mixed before holiday
 
Shares fell on the Ha Noi Stock Exchange yesterday, with the HNX-Index losing 0.8 per cent of its value from the previous day's session before concluding the day at 56.55 points.

The value of trades on the Ha Noi bourse decreased 18.7 per cent to VND158.1 billion (US$7.5 million) on a volume of nearly 19.4 million shares. Decliners outnumbered advancers by 121-85.

VNDirect Securities Co (VND) surpassed Kim Long Securities (KLS) to become the most-active share with around 2.1 million changing hands.

"Investors had hoped KLS would improve during today's session due to its positive earnings report, but it didn't happen," said Bao Viet Securities Co analyst Pham Van Khoa.

On the HCM City Stock Exchange, the VN-Index began to lose gains towards the end of the session, finally closing at 358.86, a mere 0.3 per cent increase over Monday.

Volume plunged by nearly 57 per cent to just VND348.76 billion ($16.6 million) as volume reached 23.7 million shares. Losers outnumbered gainers by 125-91.

Among blue chips, insurer Bao Viet Holdings (BVH) and Vietinbank (CTG) hit their ceiling prices, but the majority of large-cap shares retreated or closed unchanged. Food processor Masan Group (MSN) was at its ceiling price mid-way through the session but eventually closed down 2 per cent.

Along with software giant FPT, MSN and CTG were heavily favoured by foreign investors.

"Only a year ago, the VN-Index and investor psychology were able to reflect positive signals from foreign investors when they placed buy orders on blue chips," Khoa said. Now, such activity only shifted technical indictors, he said, predicting the HCM City market would remain in a modest rally until the end of the week.

Foreign investors were net buyers on both bourses yesterday, picking up shares worth a combined net of VND115 billion ($5.5 million). Net buys of software giant FPT (FPT) alone accounted for VND170 billion ($8.1 million) of this figure.

Shares rise but market value declines

Closing this morning's session, the VN-Index on the HCM Stock Exchange added nearly 1.1 per cent to 362.66 points.

Gainers largely outnumbered losers by 142-65.

The value of trades was essentially unchanged from yesterday's level, totalling VND346.9 billion (US$16.5 million). Meanwhile, trading volume reached only 76.4 per cent of yesterday's figure, standing at 18.1 million shares.

Insurer Bao Viet Holdings (BVH), one of the largest shares by capitalisation, hit its daily increasing limit of 5 per cent to VND48,500 ($2.3) per share. Many other blue chips rose by 0.6-3 per cent.

With more than 77,000 shares changing hands, Sacombank (STB) was the most active stock in HCM City.

On the Ha Noi Stock Exchange, the HNX-Index also edged up 1.2 per cent to close at 57.22 points. Nearly 150 out of 393 listed codes went on in the green.

Trading was, however, more sluggish than yesterday, with market value fetching only VND128.1 billion ($6.1 million) – a decrease of 19 per cent – on a volume of 15.1 million shares.

VNDirect Securities Co (VND) was again the most heavily traded stock nationwide with 1.65 million shares changing hands.

$61,000 earmarked for consumer rights

The Ha Noi's People's Committee has decided to invest VND1.3 billion (US$61,900) on a three-month programme to raise awareness of consumer rights.

The programme will start at the beginning of March, aiming at enhancing the awareness of both enterprises and consumers about consumer rights and interests while also disseminating the Consumer Rights Protection Law.

A key event during the programme will be a sale week from March 16 to 23 where consumers will have the opportunity to enjoy sales incentives and evaluate the quality of goods and services offered by enterprise.

Firms issue shares under face value
 
If a small company wishes to raise more capital, it can issue additional shares below a face value of VND10,000 (US$0.47). However, this may not be feasible for these Vietnamese companies, according to Nguyen Thi Phuong Chi, FPT Securities Co's deputy head of corporate finance consulting division.

Speaking to the newspaper Dau tu chung khoan (Securities Investment), Chi said while issuing shares under their face value was not prohibited by law, it was difficult for enterprises to do.

Chi warned that companies planning to issue shares under their face value would need shareholder approval for the move, and getting this approval was difficult.

"In addition, a company's share prices will decline due to stock dilution," said Chi.

The director of a firm who asked to remain anonymous, said that for stocks traded at around VND8,000 per share, shares under face value could only be sold if prices fell to VND4,000-5,000. At this price range, companies would not be able to raise much money, and the pressure on the return on equity ratio would become great, he said.

Chi said shareholders looked at the future prospects as well as the business effectiveness of a company when it came to investment decisions.

"As companies issuing shares at below face value are considered as being in trouble, issuing these types of shares will discourage new shareholders," said Chi.

It also often took about two months to execute plans on issuing shares below face value, a period that is likely to see a sharp fall in the company's share prices. Although companies might benefit in terms of raising funds in the short term, small investors would be affected by stock dilution, said Chi.

"The danger is, when prices drop too much, the companies can become the target of take-overs," he said.

In 2008, beverage firm Tribeco (TRI) became the first listed company to issue 20 million shares at VND7,520, and move it survived as the firm's equity was at only VND5.3 billion ($252,400). Since then, no more companies have filed to sell shares lower than face value, according to an official from the State Securities Commission.

According to a semi-annual report from HCM City-based ceramic tile producer Vitaly, the firm's liability last year exceeded its total assets by VND31.3 billion ($1.5 million). Meanwhile, Vitaly is currently trading on the unofficial UPCoM market at only VND1,200 a share. Issuing shares below face value could be seen as a solution for Vitaly.

Although this plan encounters many challenges, it can still be a life buoy for businesses that are on the edge of bankruptcy. If securities authorities ensure clear guidance on issuing shares below face value, troubled enterprises can be saved.

Viet Nam raises 1.88 trillion dong in its first auction in 2012

Ha Noi: The Ha Noi Stock Exchange made its first auction of the year by successfully selling government bonds worth 1.88 trillion dong ( $89.4 million) on Thursday.

The Vietnam's State Treasury sold one trillion dong of three-year bonds at a yearly interest rate of 12.10 percent and 880 billion dong through five-year bond at a yield of 12.15 percent.

17 organisations participated at the auction. The volume of bidding was 2.5 time higher than the call for bid. The number of foreign bidders in the three and five- year bonds made up 15 percent and 11.56 percent respectively. According to the Ha Noi Stock Exchange, this is a good sign for Viet Nam's bond market in the year 2012.

Governor of the State bank of Viet Nam, Nguyen Van Binh on Thursday said Vietnamese dong had increased its attractiveness because of the SBV's monetary policies.--

PetroVietnam unveils geophysical survey branch

PetroVietnam Technical Services Corporation (PTSC) unveiled a new company branch yesterday which specialises in geophysical exploration services for the oil and gas industry.

The new branch, a 51 per cent and 49 per cent joint venture between PTSC and CGG Veritas (CGGV), provides 2D&3D (two dimensional and three dimensional) seismic acquisition services.

The joint venture will operate for 20 years, according to PTSC, a subsidiary of Viet Nam's leading oil and gas company PetroVietnam.

The company said the joint venture would help it to provide full technical services packages for petroleum exploration and development in Viet Nam as well as in the regional market.

PTSC, which owns VND17 trillion in total assets and employs 9,000 personnel nation-wide, provides diversified technical services for the oil and gas industry inside and outside Viet Nam.

Headquartered in Paris, the 79 year old CGGV boasts 50 years of seismic survey services in Viet Nam.

Hai Phong EZs and IZs target US$500 million in FDI

Industrial zones (IZs) and Economic Zones (EZs) in the northern port city of Hai Phong aim to boost both foreign and domestic investment significantly this year.

Specifically, they aim to attract US$500 million in foreign direct investment (FDI), a 42 per cent increase over last year, while domestic direct investment (DDI) was expected to reach VND8 trillion ($381 million), a 21 per cent increase over 2011, said the city's head of IZs and EZs Management Board Pham Thuyen.

FDI enterprises operating in the EZs and IZs would strive to achieve $1.38 million in turnover, 20 per cent more than last year. An 82 per cent increase in DDI was expected, equivalent to VND10 trillion ($476 million), he said.

This year, the global economy was forecast to continue coping with difficulties while the domestic economy would also have a tough year, Thuyen said, adding that the set targets would be achieved despite of the challenges because the city had attracted a huge inflow of FDI, especially from Japan.

Local products target overseas supermarkets

The Ministry of Industry and Trade has set an ambitious plan to help locally – made products penetrate overseas supermarkets.

This move was conducted as part of the ministry's export strategy for 2012.

Dang Hoang Hai, an official from the ministry, said helping locally-made products in global retail and supermarket chains would be integral for the country's export plan. This strategy was designed to gradually generate opportunity for domestic export activity, especially for major exports like farm produce, fish, food, garment and textiles, and handicraft products.

Although, export has always been important to the economy, experts noted that the country's exports were not sustainable and failed to reach their potential. Domestic products are mostly exported through middlemen.

The increasing presence of Vietnamese products in overseas supermarkets not only limit the cost for intermediate stages but also raise product value and stabilise exports to avoid risks. Strict requirements for exporters serve to enhance product quality and help them integrate into a global distribution network, said Hai.

In addition, Nguyen Canh Cuong, Viet Nam's trade counsellor in France said that although the European market was a large one, across it were many similarities and common standards for product quality. Therefore, if Vietnamese products entered hyper supermarkets like Metro or Casino, it would be a "passport" allowing them into other global supermarket chains.

According to experts, Viet Nam is emerging as a prestigious exporter in place of Chinese exports thanks to products like coffee, tea, pepper, fruits, fisheries and handicraft products. Some said if taken at full advantage, these products will become more valuable to importers globally.

However, the major problem posed to exporters who wanted to penetrate global supermarket chains was the maintenance of stability in both quantity and quality.

Hai said global supermarket chains often made large orders which Vietnamese businesses did not satisfy. Domestic exporters would always export a first round of good quality and sufficient quantity, but they could not maintain it in their next batches.

Many companies made every effort to sign orders with foreign partners but their contracts were cancelled after they failed to meet the importers' quality and quantity requirements.

City firm to focus on hotel projects

Developing and upgrading three- to five-star hotel projects will be one of the major focuses of the Saigontourist Holding Co., in the next few years, senior officials said at a company meeting last week.

Tran Hung Viet, general director of Saigontourist, said the firm would focus its strength on major areas including hotels, travel and restaurant services, which are posting good business results.

"œBetween 2012 and 2014, we will prioritise investments in these three fields, instead of other sectors like construction or food processing," Viet said.

The company is completing the paperwork for investing in dozens of hotel projects in HCM City and other localities across the country including Ha Noi, Nha Trang, Sa Pa, and Con Dao.

In 2011, the company achieved good business results with its hotel and restaurant services. Some 1.25 million of the total 1.6 million tourists going on tours operated by Saigontourist last year chose to stay in the company's hotel network, contributing to an average room occupancy of 65 per cent.

Saigontourist currently operates eight travel agencies, 54 hotels, 13 resorts and 28 restaurants.

Last year Saigontourist achieved a total turnover of over VND11.3 trillion (US$538 million), a year-on-year increase of 14.6 per cent, with gross profits of nearly VND3.5 trillion ($166 million), up 10.9 per cent over 2010.

Local banks keen to invest in Cambodia

Many Vietnamese banks are planning to invest in Cambodia because a more favourable climate for growth is expected this year.

Maritime Bank and Sai Gon – Ha Noi Commercial Bank (SHB) are setting up bank branches in Cambodia, with Maritime opening wholly foreign-invested branches this year.

The bank is also considering opening joint ventures that operate in securities, insurance, remittances and financial leasing sector in Laos and Cambodia.

SHB is completing final procedures to open its branch in Cambodia. A bank representative said the bank had studied in detail whether Cambodia was a potential market for bank operations.

Senior lieutenant-general Le Huu Duc, deputy minister of Defence and chairman of the management board of the Military Commercial Joint – Stock Bank (MB) said the bank had opened a branch in Cambodia last year, reflecting its development strategy for the Indochinese.

Martime Bank Phnom Penh is expected to become a financial bridge for Viet Nam, Laos and Cambodia, and contribute more added value to the Cambodian community.

Than The Hanh, director of MB Cambodia, said Cambodia had a rapid growth rate in recent years but credit and banking-service access of businesses and local residents were limited. The growth of capital mobilisation has been slow, and banking services have been poor.

In addition, card services and the inter-banking market are underdeveloped. Foreign exchange trading and the bond market barely exist.

However, Sacombank has had success in Cambodia, first establishing its branch in Phnom Penh in June, 2009.

In October of last year, Sacombank decided to set up a 100 per cent foreign-invested bank in Cambodia.

For 2010 and the first nine months of 2011, Sacombank Cambodia had total mobilised capital of US$40 million, outstanding loans of $58 million and tax-before profit of $2 million.

The International Monetary Fund forecasts that the GDP growth rate of Cambodia will reach 7-8 per cent this year.

Currently, Cambodia has about 503 businesses, of which 20 per cent are located in Phnom Penh.

According to Cambodia's Ministry of Commerce, Cambodia's import value from Viet Nam for eight months last year increased by 43 per cent to $976 million over the same period of 2010.

Its exports increased by 116 per cent to $105.2 million.

As a result of Cambodia's rising growth, Vietnamese businesses now face more competition from Cambodian companies.

Before Maritime Bank arrived, Cambodia had 25 foreign commercial banks and four branches, together with 21 local banks.

Foreign banks accounted for 65 per cent of the market share of the banking system, especially the most powerful and four largest banks, ACLEDA Bank, Canadia Bank, Campubank and ANZ Royal.

Three Vietnamese banks also have a presence in Cambodia, Agribank, BIDV and Sacombank, making the banking environment even more competitive.

More firms win preferences in customs procedures

Three more enterprises have been recognised as "authorised economic operator (AEO)" within 12 months by the General Department of Viet Nam Customs on, bringing the nation's total AEOs to 12.

The new AEOs include the Vietsovpetro Joint venture; the Viet Nam Rubber Group and the Canon Viet Nam Ltd.

"The 3 AEOs are law-abiding enterprises with big ex-import turnovers and great contribution to the country's economic development," the customs deputy director general Nguyen Duong Thai at the ceremony on Saturday.

AEO enterprises will be given special preferences in customs procedures such as an exemption from inspections of detailed customs documents and goods or exemption from post-entry audits. Enterprises will be able to perform e-customs 24 hours a day, seven days a week and pay customs tax and fees monthly through banks, among other preferences.

"We are very honoured to be recognised as an AEO. It creates favourable conditions for our ex-imports as well as management and business," said Katsuyoshi Soma, CEO and General Director of Canon Viet Nam, a US3.17billion turnover company in 2010.

"AEO brings a lot of profits to enterprises. They save customs processing time, reduce costs and warehouse fees as well as human resources," said Director of the Customs Post-Clearance Inspection Department Pham Thanh Binh.

"AEO also helps increase the prestige of enterprises toward their business partners and through that, their business runs easier and more convenient," added Binh.

Representative of the Minh Phu Aquaculture Group, one of the first AEOs, said that in AEO recognition, the company could reduce customs time from seven days to one day and save between $80-100 per container of goods.

The 12 AEOs were selected from 23 candidates applying for AEO recognition since May 2010, when the customs sector started its pilot project. The sector opened applications for preferential custom procedures for enterprises meeting certain conditions. The pilot project was seen as an important step in reforming customs in preparation for the sector integrating into regional and international arenas.

Candidates for AEO must be on the list of lowest risk companies and satisfy various conditions, such as having an import-export turnover of at least $100 million per year for domestic aquaculture/agriculture and crude oil products and at least US$500 million per year for all other sectors. Turnover for high-tech companies would be decided on a case-by-case basis.

The AEO policies target a group of 250 big exporters and importers that have a turnover between $100-500 million, among the more than 40,000 enterprises operating in Viet Nam. The customs department would review the project after one year implementation, according to Binh.

The department said that more than 40,000 ex-importers had contributed ex-import turnovers totalling $200billion in Viet Nam by the end of 2011.

FPT gets deposit after acquisition fails

The FPT Joint stock Co last December took back a deposit worth VND708 billion (US$33.7 million) from the EVN Telecom Company after plans by FTP to acquire EVN fell through.

Concerns had been raised over difficulties in getting EVN to give back the deposit, which it had held for eight months, but these worries prove groundless.

FPT failed to acquire a 60 per cent stake of the EVN Telecom last year when Viettel officially bought the telecommunications firm.

The deposit will not impact FPT's financial balance because it was returned the same financial year of 2011. The deposit has helped FPT have VND3.5 trillion ($166.7 million) in total cash now, according to a report of the HCM City Securities Joint stock Co (HSC).

Also according to HSC's report, FPT is finalising its procedures to buy a wide-brand company of Cambodia. The acquisition's value is less than $1 million and it is expected to bring a total revenue of $4 million for FPT this year.

The Cambodian internet market still rather small; the acquisition is regarded as trial step for FPT to expand its business abroad. HSC suggested that FPT expand the telecommunication overseas via a merge and acquisition for further growth.

FPT reached a VND2.57 trillion before-tax profit last year, up 27 per cent from a year earlier. The high profit was the result of goods sales of Nokia when FPT officially became Nokia's sole distributor in the northern area; rising orders for software from Japan and its on-line services on advertisement and games; and education.

State reduces holdings in brewery

The Sai Gon Beer Alcohol and Beverage Corporation (SABECO) reduced State capital to 51 per cent from 89.51 per cent under an equitisation scheme approved by the Government.

SABECO now has a total charter capital of VND6.4 trillion (US$304.7 million), and is selecting strategic partners. After the equitisation, the corporation will list its shares on the stock market.

The corporation is also considering withdrawing capital from its affiliates to focus on its core business.

To raise the business effectiveness, SABECO will restructure its production process, sales systems and policies, organisation structure, personnel management and distribution systems.

This year, it will continue improving standards on the product quality and hygiene, equipping with advanced technologies.

SABECO and its affiliates have applied international standards, including ISO 9001:2008, ISO 14001:2004, and hazard analysis and critical control points (HACCP).

The International Bureau Veritas Certification Organisation granted certificates for quality management, food safety and environmental systems to three units of SABECO, including the corporation administration office, Sai Gon-Nguyen Chi Thanh Beer Co and Sai Gon – Cu Chi Brewery Co.

Tea sector looks to boost quality, profits
 
Tea producers can boost profits and raise standards by acquiring international accreditation such as UTZ or Rain Forest Alliance (RFA), industry experts said.

Nguyen Thi Nhai, deputy head of the Tan Huong tea co-operative in Phuc Xuan Commune in northern Thai Nguyen City, said the tea produced by her co-operative now sold for between 5-10 per cent more than the market price after they were granted UTZ accreditation.

UTZ certification requires farmers to cut down on the use of fertilisers and pesticides.

"The amount of pesticide used was reduced. That improved the tea's quality. It is now darker and clearer and has a more pleasant aroma," Nhai said.

Le Hong Van, from Solidaridad, a Dutch non-governmental development agency which promotes fair trade, said that to meet UTZ standards, farmers had to strictly follow its principles to protect the environment and reduce costs.

After applying the new method of cultivation, the tea trees grew stronger and were more productive, while the price of the tea also increased, Van added.

Bui Thu Huong, head of the External Relations Department at Unilever, said her company was happy to pay more than the market price for tea that had been granted international certification.

Meanwhile, RFA accreditation has been awarded to farmers in northern Phu Tho Province's Thanh Ba District and northern Tuyen Quang Province's My Lam tourism area.

Nguyen Luong Duyen, deputy director of Phu Ben Tea Company, which buys tea from the two areas, said growers began applying the RFA cultivation model in 2010.

The average price of the company's tea exported overseas last year was US$2 per kilogramme, much higher than the market price of $1.5 per kilogram.

Because of the greater profit earned, the company was able to pay a higher price to local growers, Duyen said.

According to the Viet Nam Tea Association, Viet Nam has 132,000ha of tea plantations that produce 185,000 tonnes of dried tea annually. The industry employs 400,000 farming households – 3 million workers in 35 provinces.

The total amount of tea exported in 2011 was estimated at 131,000 tonnes, worth $198 million, a decrease of 4.3 per cent in amount and 0.8 per cent in value against the previous year.

However, most Vietnamese tea is considered to be of only average quality. Despite that, Viet Nam is the world's fifth biggest tea exporter.

Doan Anh Tuan, chairman of the Viet Nam Tea Association, said the industry planned to launch a campaign entitled "Responsible production for safe tea products," to boost quality.

"To raise the value of Vietnamese tea, in addition to boosting trade promotion and branding, we need to change the conventional way we produce tea."

Tuan also said it was important to raise farmers' awareness about sustainable and safe production.

To achieve that goal, distributors need to provide farmers with technical support, he said.

Firms struggle to pay workers Tet bonuses

Many companies that had a slow year because of economic difficulties are struggling to offer Tet holiday bonuses for their workers this year.

The Allied Technologies (Sai Gon) Co. Ltd in District 9, for instance, said it could only give a bonus equal to 20 per cent of employees' monthly salary in addition to a one-month salary.

Although the bonus level was low compared to the general level, the company said it could not meet employees' requests that it raise the amount, a representative of the company said.

Another company, Tan Quoc Hung Co Ltd in Binh Tan District, will probably not give bonuses this year to employees because of a shortfall in orders and slow customer payments. The company director, however, said it would try.

Quan, an employee at a transport services company, said last year he got a very high bonus for Tet, but this year he received only one month of salary, or VND5 million (US$240).

Cu Chi District's Labour Union reported that many businesses in the district had encountered difficulties in production and trading, and would find it difficult to offer Tet bonuses.

According to the HCM City Department of Labour, Invalids and Social Affairs, many businesses have not reported their Tet bonus plan. Some companies, however, have given bonuses even under the current circumstances as an incentive to retain workers.

The department said it would keep track of the situation to ensure that Tet bonuses are handled fairly.

Rural construction reviewed
 
President Truong Tan Sang has affirmed that the nation's New Model for the Countryside was among the Party's major policies to create fundamental changes in rural development and narrow the gap between urban and rural areas.

He was speaking at a conference held yesterday to review new rural construction activities in the 2009-10 period.

After three years of implementation, 11 communes in the pilot phase of the programme were already showing positive results, according to Minister of Agriculture and Rural Development Cao Duc Phat.

About 80 per cent of rural roads had been upgraded and 60 per cent of small alleys had been paved. More than 100 irrigation works received upgrades. Most households had access to electricity for agricultural production and their incomes increased by up to 60 per cent.

Total investment for activities in the 11 pilot communes was estimated to be VND2.5 trillion (US$120 million), of which 31 per cent was funded by the State budget. The remainder was contributed locally.

Phat said many communes had formed a practical model for new rural areas although some shortcomings remained: infrastructure development was incomplete, agricultural production proved to be small scale and people still faced financial difficulties.

In his conference address, President Sang said the programme had basically achieved the nation's goals. Nine out of the 11 pilot communes had met nine out of 19 criteria for new countryside.

The current model was unsustainable, he said, and stressed that the role of local people should be further promoted in the future.

President Sang noted that some criteria should be re-examined and adjusted to make them suitable for localities and information about the programme should be enhanced to help locals understand that it was a comprehensive economic development programme, not an investment in infrastructure.

The President asked the provincial Party Committees to continue to improve and complete the model.

At the meeting, 10 collectives and 14 individuals were presented with certificates of merit from the Prime Minister for their excellency in contributing to the programme.

Firms lose licences for substandard petrol

The deputy chairman of the HCM City People's Committee, Le Manh Ha, has signed a decision to fine the Sai Gon Passenger Transport Co, Ltd VND30 million (US$1,420) for selling substandard petrol with an octane rating lower than regulated.

The committee also revoked the company's licence for petrol trading after the city's Department of Science and Technology tested petrol samples.

The test results showed that the company sold petrol with an octane rating of 93.8, even though it was advertised as 95.

Seven petrol trading enterprises have been asked to pay fines for the same violations, and their licences have also been revoked.

Inspectors uncover fraud worth $408m

Inspectors in 2011 discovered economic violations worth more than VND8.5 trillion (US$408 million) through 75,600 inspections in State and socio-economic management, said Deputy Chief Inspector of the Government Inspectorate Le Tien Hao.

They found more than 286,000 hectares of violated land, he said at a workshop held on Thursday to review inspection work in 2011 and plan inspection for this year.

Inspectors proposed a revocation of more than VND5.1trillion ($244.8 million) and 11,845ha of land for the State, as well as administrative punishments for 166,151organisations and individuals.

Regarding the anti-corruption task, inspectors found 150 cases and 320 people getting involved in corruption with a total property worth more than VND267 billion ($12.8 million) and 9.4ha of land.

In 2012, Government inspectors will focus on the State management responsibility of ministries and localities in areas such as construction planning and investment and on collection budget at processing and export zones and businesses.

Inspection will also focus on mineral resources and land use management, construction investment management, land and forest allocation in a number of localities, activities of banks and the use of capital at some corporations.

Deputy Prime Minister Nguyen Xuan Phuc said the inspection sector should increase inspection and punishments to ensure results. Proposals by ministries and agencies should be seriously heard.

He asked inspectors to increase dialogues with people, listen to their recommendations and promptly deal with their complaints and denunciations.

The inspection sector should also pay attention to improving inspectors' quality, capacity and professional skills and knowledge, Phuc said.