An Giang to boost tourism sector

 

The southern province of An Giang will invest around VND26 billion (US$1.2 million) in boosting tourism this year, an increase of 15 per cent against 2010.

 

Of the total, VND11.1 billion ($516,000) will come from the provincial budget.

 

Deputy chairman of the provincial People's Committee Huynh The Nang admitted investment attraction to the province's tourism sector had remained restricted due to the delay in several transport projects including the An Giang Highway and Vam Cong Bridge.

 

Besides speeding up the projects to improve traffic infrastructure, the province this year would also pay attention to environmental protection to attract investors and tourists.

 

Lower floor prices for rice set

 

The Viet Nam Food Association (VFA) announced lower floor prices for export rice late last week.

 

The floor price of 5 per cent broken rice will be reduced by US$20 per tonne to $500 per tonne as of Saturday. The 25 per cent broken rice will drop $10 per tonne to $480 per tonne. This is the fifth time this year that VFA have adjusted the floor price of export rice.

 

Software Awards 2011 to begin

 

Viet Nam Software Association has begun the vote for the Sao Khue 2011 title. The contest will select the best products, solutions and services in the IT and software industry.

 

The votes will fall into five categories, including products for specialist use, e-commerce, new products, IT and software services and products developed abroad and used in Viet Nam.

 

The selected products will be given star ratings. Businesses wishing to participate can register until April 25.

 

Germans hype textile technology

 

German machinery and technology solutions and the latest developments and technical innovations by textile-machinery manufacturers will be showcased at an exhibition to be held in HCM City on April 6 and 7.

 

The two-day German Technology For the Vietnamese Textile Industry exhibition will be held by the Textile Machinery Association of Germany at the New World Hotel.

 

It will be supported by the German Ministry for Economics and Technology and the Association of Garment Textile Embroidery – Knitting, HCM City.

 

City hosts first HR supply chain forum

 

The first forum to promote supply chain careers and connect talents and employers in the industry will be held in HCM City on Friday this week.

 

The half-day supply chain human resources forum would feature experts and executives who will present and share through panel discussions and interactive debates the most pressing challenges faced by companies operating in Viet Nam today, organisers said.

 

The Viet Nam Supply Chain Community also said that the event would include a supply chain career expo in the afternoon, aiming to help companies find talented personnel for their operations.

 

For students attending the event, the expo would provide more than 500 job opportunities at leading supply chain companies.

 

The event would include many other activities promoting the supply chain industry, which has a lot of growth potential in Viet Nam, organisers said.

 

Savills appointed marketing contract

 

Savills Viet Nam has been officially appointed as the sole agent for marketing and leasing retail space in the central city of Da Nang's Dragon Vinh Trung Shopping Centre.

 

The 24,500sq.m Dragon Vinh Trung retail centre cost VND400 billion (US$18.6 million), and is expected to open in June.

 

Electronics retailer's profits soar

 

Electronics retailer Tran Anh Digital World Joint Stock Co has announced revenue of VND87.5 billion (US$4.17 million) in the first two months of this year, up 52 per cent year-on-year. The company's two-month profit also increased 41 per cent to VND23.6 billion ($1.12 million).

 

It targets a VND1.72 trillion ($82.3 million) revenue by the year-end, a 31 per cent increase against last year.

 

Builder to list shares in HCM City

 

HUD3 Investment and Construction Joint Stock Co has received approval from the HCM City Stock Exchange to list 10 million shares on the bourse. The reference price will be VND25,000 (US$1.12).

 

HUD3, an affiliate of the Viet Nam Housing and Urban Development Group, has a charter capital of VND100 billion ($4.8 million).

 

It has set a target of reaching VND900 billion ($43 million) in revenue and VND100 billion ($4.8 million) in post-tax profits this year.

 

PetroVietnam Finance earnings up

 

The HCM City-listed PetroVietnam Finance Corp announced 2010 earnings of about VND4.1 trillion (US$195 million), of which the fourth quarter accounted for VND1.3 trillion ($62 million).

 

The corporation's gross profits in the final quarter hit VND388.7 billion ($18.5 million), contributing to an annual profit of VND1.03 trillion ($48 million). The securities arm of the business made a loss of VND425.5 billion ($20 million).

 

PetroVietnam Finance has targeted earnings of about VND5 trillion ($238 million) and a post-tax profit of VND490 billion ($23 million), which would result in a dividend payment of 7 per cent.

 

New resort to open doors in Hoa Binh

 

Construction began on the Archi Reeno Hoa Binh Company's VND800 billion (US$37.2 million) Lam Son Resort in northern Hoa Binh Province on Saturday.

 

The resort, covering an area of 66ha in the province's Luong Son District, will have 160 villas, 78 bungalows and a 4-star hotel with 80 rooms.

 

The resort will be located near the satellite cities of Hoa Lac and Xuan Mai and Hoa Binh tourism complex as well as the 54-hole Phoenix golf course, Southeast Asia's largest golf course.

 

Chairman of the provincial People's Committee Bui Van Tinh said the Lam Son resort would contribute to the province's future focus on tourism.

 

Archi Reeco Hoa Binh Company's director Le Ngoc Binh said the resort was expected to come into operation in 2015.

 

Archi Reeno Hoa Binh Company is an affiliate of Archi Invest Corporation, with the core business of developing real estate projects for tourism in Hoa Binh and neighbouring areas.

 

HCM City targets high growth, low inflation

 

Many members of the HCM City People's Council are worried the 12-per-cent economic growth target may be out of reach this year since the city will have to cut public investment to fight inflation.

 

But chairman of the municipal People's Committee Le Hoang Quan has rejected this, saying the "big strategies and targets" set by the 9th HCM City Party Committee must be reached.

 

Measures and plans would be adjusted periodically to achieve these targets, he told them.

 

Thus, HCM City would maintain the 12-per-cent growth target while also giving priority to inflation control.

 

"Through efforts and measures to tap the city's potential, boosting administrative reforms, and practising thrift, we can achieve the targeted 12 per cent growth," he said.

 

Addressing a joint meeting of the People's Committee and People's Council last week, Council chairwoman Pham Phuong Thao said to both curb inflation and achieve the growth, the city must identify and complete large public works that remained unfinished from past years.

 

"We must concentrate our efforts on these projects to finish them as early as possible, and thus save spending on them," she explained.

 

She listed infrastructure projects like Ring Road No 2, Cat Lai Port, Go Dua Overpass, Tan Son Nhat – Binh Loi Ring Road, and the first two metro.

 

World's top rice producer?

 

Thailand, the world's largest rice exporter, is likely to lose market share in ASEAN member countries to Viet Nam when the ASEAN Economic Community comes into being in 2015, a Thai researcher has warned.

 

Once the 10 ASEAN members scrap import tariffs on rice, Viet Nam will surely make inroads into the Philippines and Malaysia, two major buyers of Thai rice, English daily Bangkok Post quoted Dr Aat Pisanvanich, director of International Trade Studies at the University of the Thai Chamber of Commerce, as saying.

 

Viet Nam, the largest rice exporter to ASEAN countries since 2005 and the world's second largest exporter, achieved exports of US$1.3 billion to the bloc in 2009 compared to $316 million by Thailand.

 

The quality of Thai and Vietnamese grains was not much different but Vietnamese traders charged around $125 less per tonne, he said.

 

So, Thailand would be better off aiming for the high-end market and creating awareness of the quality of its rice so that potential buyers could detect the difference.

 

According to another Thai newspaper, The Nation, the country's Commerce Ministry expects rice sales through government-to-government channels to the Middle East, Africa and Asia to increase dramatically to 700,000-800,000 tonnes this year.

 

Manat Soiploy, director-general of the Foreign Trade Department, said China, the Philippines and Indonesia had greater need for rice imports since they were starting to face supply uncertainties due to natural disasters.

 

The Philippines was expected to import an additional 1.5 million tonnes in the current and third quarters while China was facing a drought in the south and might need to import more rice soon, he said.

 

Thailand would benefit from falling rice supply in many major producing countries, especially China, due to drought, while India had banned export of non-basmati rice.

 

The price of 5-per-cent broken white rice may increase to around $600 per tonne as a result.

 

Viet Nam began to offer 5 per cent broken rice at $500 from Saturday.

 

"Vietnamese rice production from its main crop is expected to be sold out soon, which will also drive up prices in the world market," The Nation quoted him as saying.

 

Thailand hopes to export 9 million to 9.5 million tonnes of rice this year for $5.6 billion, up from 9.05 million tonnes worth $5.34 billion last year.

 

Last year Viet Nam exported 6.75 million tonnes for $3.23 billion, according to the Viet Nam Food Association.

 

Stemming dollarisation

 

To ease the concern of people who have legitimate need to buy and sell US dollars, the State Bank of Viet Nam's Instruction No 1 on preventing the dollar use in the domestic market should be followed scrupulously, a veteran banker has said.

 

Cao Si Kiem, former governor of the State Bank of Viet Nam, told Tien Phong newspaper that banks should enable customers with demand for foreign currencies to buy them.

 

The central bank is also drafting plans to ban unauthorised trading in gold bullion.

 

They will be submitted to the Government by the end of March.

 

"When measures [to combat dollar use] are not thorough, ‘blocking' a market that has been active for several years will be a problem," Kiem warned.

 

In principle, commercial banks must meet people's demand for foreign currencies, according to Nguyen Phuoc Thanh, general director of Vietcombank.

 

Though the gap in dollar rates on the official and black markets had narrowed greatly in the last few days, foreign-currency deposits at banks had not increased much, he pointed out.

 

The greenback weakened by around 1 per cent against the Vietnamese dong on the unofficial market as unauthorised moneychangers refrained from trading for fear of surprise checks by authorities.

 

Most licensed foreign exchange dealers said the decline was due to the weak trading on the unofficial market. While it has almost ground to a halt in Ha Noi in the last two days, gold shops and moneychangers in HCM City have become suspicious of customers asking for dollars.

 

In March, central bank governor Nguyen Van Giau said on the Government website that new penal regulations against illegal money trading were being drafted.

 

Taxi company invests in multipurpose building project 

 

Mai Linh Investment Corporation has started the construction of a multipurpose project named Golden Palace at Me Tri in Tu Liem District, with a total investment of VND3,150 billion (US$157.5 million) on March 12. 

 

The project will cover 16,333 square metres and will have three blocks of 30-storey buildings with about 1,000 luxury apartments of around 85 to 128 square meters as well as a section for office space and for commercial services. The project will have 20 luxury penthouses as well.

 

The project has a modern and contemporary design, inspired by the lotus flower. The design allows for more space, natural light and ventilation.

 

The project to be built by Keangnam Enterprises of Korea and is expected to be complete by the end of 2013.

 

Customers prefer foreign currency transaction in banks 

 

Most foreign exchange points in Ho Chi Minh City stopped transactions in US dollar on March 11, due to fear of inspections from relevant authorities leading customers completing transactions in banks.  

 

Three days ago, foreign exchange points maintained normal operations while announcing trading at VND21.400 to US$1. They now refuse to buy the dollar and have stopped all dealings.

 

An employee at a gold shop said that since the authorities had been cracking down on foreign exchange traders for the last few days, gold shops dared not transact in dollars publicly any longer.

 

Many shops traded mainly in gold, especially gold jewellery and others suspended all foreign currency transactions.

 

The US dollar rate is quoted at VND20.401 per $1 for buying and VND20.875 per $1 for selling on the State Bank website, an increase of VND220 per USD compared to a day before.

 

US dollar rate in commercial banks is quoted at VND20, 860 per $1 for buying and VND20, 875 per $1 for selling a decrease of VND5 compared to a day before.

 

Customers said that although US dollar rates in banks are lower than the black market, they still come to banks to buy and sell foreign currency as they feel very safe.

 

Nguyen Hoang Minh, deputy director of the State Bank of Vietnam’s HCM City branch, said people have the right to possess foreign currency but are only allowed to sell them to banks and licensed moneychangers.

 

The SBV, in coordination with the police, is cracking down on illegal trading and has specified that inspections will be carried out every two or three weeks instead of every month as was the case earlier.

 

On March 11, the world gold price was $1,414 per ounce (1.2 tael), decreased by $20 compared to a day earlier.

 

SJC, PNJ and SBJ gold prices also decreased to VND36.85 million per tael buying and VND36.95 per tael selling, a decrease of VND850,000 per tael compared to last week.

 

To meet customer demand, VietABank has issued a short-term certificate of deposit for gold. The issuance period lasts till April 28.

 

The bank expects to issue 65,000 taels during this issuance. The minimum value for each certificate is one tenth of tael in SJC gold. VietABank applies competitive post-paid interest rates for each deposit term.

 

Agribank also launched a program to mobilize gold with interest rate of 3.5%. Each customer has to send at least 1 tael in SJC gold.

 

State Bank of Vietnam and ADB sign loan agreement 

 

The State Bank of Vietnam and the Asian Development Bank signed a US$540 million loan agreement to build an underground rail linking the city centre with District 12 on March 11.

 

Daily chaotic congestion in front of Bau Sen primary school in District 5.The southern city has signed a loan agreement with the Asian Development Bank to finance the construction of a mass transit system in the city.

 

Metro Line No.2 will be built as a Mass Rapid Transit (MRT) system in two phases. In the first phase, the line will be built along the three streets of Pham Hong Thai, Cach Mang Thang Tam and Truong Chinh to link the Ben Thanh Terminal in the city’s central area with Tham Luong Depot in District 12.

 

There will be a one-kilometre feeder line leading to the Tham Luong Depot, a 9.3 kilometre underground rail and an elevated section of almost one kilometre.

 

Metro Line No.2 is designed with three carriages able to carry about 810 passengers in the first stage, to be expanded by another three carriages in the second stage.

 

According to the schedule, the project will be built from 2012 – 2015. It is expected to operate by 2016.

 

The project is estimated to cost more than $1,374 billion, of which ADB will loan US$540 million, the EIB $195 million and KfW will provide $313 million and the remainder to be provided by the Vietnamese government.

 

On the same day, a loan agreement for the first stage of the project worth $40 million of the $540 million was signed between Ayumi Konishi, director of ADB in Vietnam and Nguyen Thanh Tai, permanent deputy Chairman of Ho Chi Minh City People’s Committee.

 

Cautious with Spanish firms: Vietnam embassy

 

The Vietnam Trade Office under the Embassy of Vietnam in Spain has just recommended Vietnamese exporters to carefully study Spanish partners first before signing contracts with them to avoid being cheated.

 

The office has previously received many letters from Vietnamese firms seeking support in recovering debts from Spanish firms.

 

There have been many cases where Spanish businesses cannot afford payments but still signed contracts, the office warned.

 

They usually paid even earlier than required for the first batch to create confidence, and then demanded D/A payment for a larger shipment later on.

 

But they then vanished after receiving shipping documents and goods from Vietnamese exporters.

 

D/A, standing for Documents against Acceptance, is a form of payment agreement between an exporter and importer.

 

Upon delivery or shipment of items the exporter prepares shipping documents like bill of lading, commercial invoice, packing list, bill of exchange or bank draft. These documents are sent to the bank of the importer. Upon arrival of goods to the country of the importer, the importer will get the shipping documents.

 

When the importer accepts the shipment and signs the bill of exchange or bank draft, then the exporter can collect the payment and the importer pays the bank.

 

Vietnam to boost trade with Africa

 

Vietnam will open a showroom to display its goods in Africa this year as well as have various promotions in an effort to boost exports to the second-largest and second most-populous continent.

 

The showroom, to be set up at the country’s trade office in South Africa, is likely to be opened in the second or third quarter this year.

 

Vietnamese exporters interested in sending their catalogues or samples there can directly contact the trade office or the Ministry of Industry and Trade’s African-Southwest Asian Department.

 

Besides, promotions will be held in November this year in the West African country of Nigeria with various exhibitions focusing on apparel, footwear, electronic goods, FMCG goods, and cosmetics among others.

 

Vietnam has trade with 53 African countries, with its exports topping US$2.1 billion last year, a 30 percent rise from 2009.

 

Agribank branch director arrested in loan scam

 

Doi Sy Thuy, director of the Vietnam Bank for Agriculture and Rural Development (Agribank)’s branch No 3 in Ho Chi Minh City was arrested yesterday on credit mismanagement charges.

 

In Arpil 2009, Thuy signed a document allowing Xuan Lan Company - which has no business activities - to loan VND39 billion.

 

The loan is backed by a house in Tan Phu district.

 

But in May last year when the company failed to pay back principal and interest, Thuy signed another contract to let Xuan Lan’s partner firm Trong Bang to loan VND40 billion.

 

The VND40 billion loan, also secured against the very same house mentioned earlier, is meant for Trong Bang to pay Xuan Lan so that the latter can finally have enough cash to settle the initial VND39 billion debt.

 

Trong Bang too has no business activities.

 

Police have so far detained three Agribank officials in the case including credit officer Huynh Trung Hieu, head of credit department Dao Phuong The and deputy director Nguyen Huu Long.

 

Tourists increase, infrastructure and services still poor

 

Local travel companies complain despite increasing numbers of foreign tourists, infrastructure and customer services at Vietnam’s seaports remain underdeveloped.

 

Saigontourist, Viet Excursions and OSC Travel said Vietnam should improve its seaport infrastructure and customer services if it wanted to accommodate the increasing number of international tourists arriving on cruise ships this year.

 

Up until now, Saigontourist has welcomed more than 20,000 passengers on cruise ships, a 5 percent increase compared to the same period last year.

 

Saigontourist said it expected the number of tourists arriving on cruise ships to increase by 20 percent by this year’s end.

 

Viet Excursion said in January and February, it received many international cruise ships including Queen Elizabeth, Queen Mary 2, Arcadia and Artemix, each of which carried 1,500 to 2,500 passengers.

 

International cruise ships arriving in Vietnam often dock at seaports in popular tourist destinations such as Ho Chi Minh City, Danang, Nha Trang and Ha Long Bay.

 

Unfortunately, however, these seaports aren’t catching up with increasing demands.

 

For instance, Queen Mary 2 couldn’t pass through Phu My Bridge at HCMC’s Saigon Seaport and thus had to dock elsewhere.

 

Similarly, at seaports in Ha Long Bay and Danang, transportation services were too limited to serve all of the foreign tourists upon their arrival.

 

Respected CEO sentenced to life for fraud

 

Nguyen Dinh Chien, 60, former general director of Bac Ha Corporation and who once was honored in “Today’s Person” VTV1 program, was sentenced to life imprisonment yesterday for “fraud to appropriate assets.”

 

The sentence was announced by the Hanoi’s People Court this morning, the fifth day of the first instance trial for Chien.

 

According to the indictment, since mid-2007 to his arrest in June 2009, Chien used counterfeit documents to boast to some organizations that he had strong financial conditions and that he could offer or seek for them huge loans.

 

He asked loan seekers to give him a certain amount of “counterpart capital” or an “interest payment” as a secure for the loans he gave them.

 

After receiving the money from them, he did not give them any loans and later used all of the money to pay for his company’s debts and for his personal needs.

 

One of his victims was Dai Vien Duong Company, which wanted to borrow US$20 million to build an ecological tourism zone.

 

The company paid Chien VND6.5 billion (now US$313,000) as interest, along with 12 certificates of land use rights as mortgage for the company’s loan.

 

Another victim of Chien’s was Nguyen Trai University, which transferred to Bac Ha VND20 billion (now $963,000) with the expectation of obtaining a loan of €100 million to build an education facility.

 

Similarly, Chien failed to give back the loan.

 

The Procuracy proposed a sentence of 18-20 years in prison for Chien, but after considering the nature and level of his crime, the court announced the life sentence.

 

The court also ordered him to give back to his victims all the money appropriated.

 

Chien was once honored as a successful businessman in “Today’s Person” program of the Vietnam Television Channel 1 (VTV1) in 2009.