Stocks continue to rise on positive news

This week's stock trading began with gains on both national exchanges yesterday, extending the winning streak to a second straight day, following positive information from National Assembly meetings.

Deputy Prime Minister Nguyen Xuan Phuc said the Government would pump about VND21 trillion (US$1 billion) a month into the economy in the latter half of this year in order to push credit growth up by 2 per cent per month, which aims to keep growth at 6 per cent.

On the HCM City Stock Exchange, the benchmark VN-Index advanced another 0.58 per cent to close yesterday at 435.59 points, but trade value decreased 32 per cent from Friday's level, totalling only VND900.4 billion ($42.9 million).

Blue chips still performed well as amongst the 30 largest shares by market value and liquidity, 17 climbed and only eight sank. Both PetroVietnam Finance (PVF) and Refrigeration Electrical Engineering Corp (REE) hit the one-day rise of 5 per cent while forth largest listed lender Sacombank (STB) rose over 4 per cent.

The VN30 Index, which measures the performance of the top 30 shares, also increased 0.57 per cent to stand at 510.81 points.

Tan Tao Investment Industry (ITA) remained the most active code on a total trade of 3.5 million shares, closing yesterday up 1.33 per cent at VND7,600 a share.

On the Ha Noi Stock Exchange, the HNX-Index managed to close in the green during the afternoon at 74.90 points despite rising to nearly 76 in the morning.

Market volume was still modest, reaching 47.8 million shares, worth over VND493 billion ($23.5 million). PetroVietnam Construction (PVX), with 5 million shares changing hands, was the most active code, closing unchanged at VND10,600 ($0.5) a pop.

While stock indices climbed two days in a row, many analysts felt confused about investors' "indifferent reaction" to recent economic information revealed by declining market volumes and values.

"With economic information quite positive, it seems incapable of boosting investor sentiment," said Ha Noi-based independent analyst Pham Viet Hung, noting domestic companies were still bemoaning hardships.

Foreign investors were net sellers in HCM City, responsible for VND5 billion ($238,000), but were net buyers in Ha Noi, having spent over VND1 billion ($52,000).

Deputy PM lauds result of price stabilisation effort

Price-stabilisation programmes had shown positive results over the past months and their practical effects should be further promoted, Deputy Prime Minister Hoang Trung Hai said on Saturday.

Chairing an online conference at the Government headquarters, Hai said price-stabilisation schemes had provided interest-free or low-interest loans to companies so they could offer essential items at lower-than-market prices.

"These were among extremely important measures of the Government to control inflation and stabilise the economy and it had positive impacts on social welfare targets," Hai said.

He said the number of localities, companies and selling points involved in the schemes had significantly increased and prices had been regularly stabilised, which he said was good news, especially for rural and remote areas.

So far, 36 provinces and cities had lent a combined VND1.65 trillion (US$79.33 million) to enterprises and there had been about 6,400 price-stabilisation selling points nationwide, the Ministry of Industry and Trade reported on Saturday.

HCM City was leading in implementing the schemes, having lent VND446 billion ($21.44 million) to 20 companies.

Prices of articles sold under the programmes were around 5-10 per cent lower than those of similar items on the market, and they had kept the consumer price indices in two major cities – Ha Noi and HCM City – lower than the nation's general levels over two consecutive years.

The schemes had also helped boost consumption of domestic goods with the launching of "Vietnamese people use Vietnamese products" campaigns.

Initially only focusing on several food products at Tet (Lunar New Year), the programme had been expanded to other essential goods, including writing paper, medicines and milk, and carried out during the year.

Many firms had joined the schemes without financial aids.

"An important task is to encourage the spirit of enterprises. Joining hands with the community also helps them, especially in the current context of economic difficulties and declining purchasing powers," Hai said.

Buyers return to capital city's housing market

Investors and buyers are beginning to return to the capital city's real estate market after a long period of sitting on the sidelines, say local real estate dealers, attributing the interest in the market to recent State Bank of Viet Nam policies aimed at lowering financing costs.

Nguyen Tien Dung, director of Van Phuc Real Estate Trading Floor in the capital's Ha Dong District, said that trading in some segments, including residential parcels, had surged in past week. The number of properties offered to find buyers had risen to 20 per cent, up from a the recent period in which no properties were finding buyers, Dung said.

Land prices in the northern area of the capital have accordingly begun to rise by about VND1 million (US$48) per square metre. A square metre in the An Hung Residential Area has surged to VND52 million ($2,470), while land prices in the Geleximco and Van Phu developments have also increased to up to VND40 million ($1,900) per square metre.

The same trend could also be seen in Gia Lam District, said Do Ngoc Tan from the Urban Area and Trading Development Co. Customers were mainly interested in finished apartments and homes in the VND2-3 billion ($96,000-144,000) range, as most were end-users with a real demand for accommodation, Tan said.

Vu Xuan Thien, deputy director of the Ministry of Construction's housing and real estate market depart-ment, concurred that current prices being offered by developers were more appropriate for end-users.

To seize the moment amid signs that the frozen market might be thawing, developers have recently re-launched some delayed projects at reduced prices to woo customers.

A few weeks ago, Mai Linh Investment Co offered property at less than VND30 million ($1,430) per square metre, a reduction of VND2-9 million, in its Golden Palace apartment complex in My Dinh District. Meanwhile, the HUD Real Estate Transaction Centre offered over 100 apartments in the New Skyline project at prices from VND27 million ($1,290) per square metre, while Maxland Real Estate Transaction Centre last week began selling apartments in Ha Dong District's Sun Garden starting at VND14.5 million ($690) per square metre.  

Cocoa growers target global market

Viet Nam hopes to become a major supplier of cocoa beans in the world market, with production of 50,000 tonnes of fermented beans by 2020.

It plans to have 50,000ha under cocoa cultivation, of which 42,000ha would yield the fruit.

The cocoa sector in Viet Nam is showing signs of rapid growth, according to Phan Huy Thong, director of the National Agriculture Extension Centre, who spoke at a forum on sustainable cocoa development in Binh Phuoc Province last week.

Total cultivated land is now about 20,100ha, yielding 5,100 tonnes last year. There were only 2,000ha of land planted with cocoa trees in 2005.

Cultivation exists mainly in 10 provinces, including Ben Tre, Tien Giang, Dak Nong, Dak Lak, Binh Phuoc and Ba Ria-Vung Tau, mostly grown under the shade of other crops, including coconut palms and cashew trees.

Phan Van Don, deputy director of Binh Phuoc Province's Department of Agriculture and Rural Development, said cocoa could be an attractive crop to smallholder farmers, both in intercropping and monoculture systems.

Cocoa has the advantage of lower labour costs to coffee and rubber, less water requirements compared to coffee.

Intercropping with cashew gardens in the province has been successful as well.

Nguyen Khac Thuoc, a farmer in Bu Dang District of Binh Phuoc Province, said that intercropping with his 5ha under cashew cultivation had helped him raise his income substantially.

Nguyen Van Hoa, deputy head of the Cultivation Department, said there was an increasing demand for the high-nutritive valued bean in the global and domestic markets. Cocoa supply globally was much lower than demand.

Viet Nam has to import more than 10,000 tonnes of cocoa powder for local production annually.

Cocoa was not expected to face strong price fluctuations as other farm produce, Hoa said.

The price of cocoa as well as other farm produce in the domestic market has fallen this year due to a drop in price in the world market, but compared to other agricultural products like rubber and cashew, cocoa prices have not fallen much.

Despite the potential of the sector, many delegates at the forum agreed that the sector had not yet reached its potential due to poor farming practices, limited technological transfer, poor planting materials and outbreaks of pests and diseases.

In addition, the planting was scattered and small-scale, causing difficulties to production and consumption, Hoa said.

Since cocoa is still a relatively new tree in Viet Nam, little research has been conducted on the plant in the country.

With less experience in planting cocoa compared to other trees, farmers are still hesitating about planting the tree, according to Thong.

He said that, to meet the planning target, the Ministry of Agriculture and Rural Development should review zoning plans for cocoa cultivation in the country.

Each locality should identify the amount of cocoa cultivation and then draw up appropriate plans.

He said that scientists and agricultural research institutes should focus more on research to create new high-quality seedlings, better cultivation techniques, and measures to prevent and control pests and diseases.

The Government is encouraging co-operation between concerned agencies and the private sector to develop the cocoa industry.

Delegates suggested that the Government establish standards for cocoa quality, and develop more agricultural extension programmes to provide farmers with skills and techniques in growing, harvesting and processing cocoa.

They also recommended that modern technologies should be used for processing cocoa beans to achieve higher quality.

Hoa said Viet Nam would increase the value of the bean by meeting standards for certificates granted for high quality cocoa production.

Organised by the Central Agriculture Extension Centre, the forum attracted policymakers, scientists and agriculture experts as well as more than 300 farmers from 10 provinces.

Gas company invests in new equipment

PetroVietnam Low Pressure Gas Joint Stock Co (PGD) said it had used VND69 billion (US$3.32 million) to invest in the Nhon Trach gas supply system and expected to spend VND30 billion ($1.44 million) on buying another gas system.

The amounts, totalling VND99 billion ($4.76 million), were raised from an initial public offering in 2010 by which the company raised its equity from VND330 billion ($15.87 million) to VND429 billion ($20.63 million).

Vingroup increases charter capital

Vingroup (VIC) has increased its charter capital from VND5.49 trillion ($263.94 million) to over VND7 trillion ($336.54 million) through the issuance of additional common shares. The company's management board has appointed Le Thi Thu Thuy, who used to be a vice chairwoman of Lehman Brothers in Japan and Thailand markets, as the general director of Vingroup. The company has been approved by the State Bank of Viet Nam to issue $115 million worth of international bonds on the Singapore Stock Exchange.-

Wood export orders reach $6.7 million

Duc Thanh Wood Processing Co (GDT) has reached a total export order value of about US$6.7 million so far this year, with nearly $1 million in contracts signed this month alone. In the first five months of this year, the company has earned a turnover of VND87.9 billion ($4.23 million), increasing 25.3 per cent over the same period last year. It is expected to advance dividends in July at a rate of 10 per cent.

Top trademarks recognised

The "National Selection Competitive and Famous Trademarks" prize has been presented to the country's 50 top trademarks.

Among the winners were HD Bank, Petrovietnam Urban Development Joint Stock Company (PVC Mekong), Khuong Duy Pharma Co, VPBank, and Traphaco.-

Gia Lai exports earn $170 million

The Central Highland province of Gia Lai generated US$36 million from exports in May, bringing its export turnover over the first five months total up to $171.2 million in total, according to the provincial Department of Industry and Trade. This was a nine-per-cent decrease against the same time last year.

Among exports recording significant turnover slump were latex (52 per cent) and wooden goods (15 per cent). During the period, the province also imported $24 million worth of goods such as cassava, timber and raw materials such as cashews.-

Ha Noi to host auto show

The 9th International Auto Exhibition (Viet Nam AutoExpo 2012) will open its door next Thursday in Ha Noi.

The four-day event, which is expected to attract 200 domestic and foreign carmakers, would be a good chance for enterprises to seek new business opportunities and establish new partnerships, they said.-

Tax relief helps 70,000 small firms
 
More than 70,000 small- and medium sized enterprises (SMEs) in the capital have benefited about VND5.15 trillion (US$245.24 million) from the Government's tax relief policy this year.

The package included the extension and reduction of land use fees and corporation income tax payments, according to the deputy director of the city's Tax Department Thai Dung Tien.

"It will help ease the financial burden on enterprises as well as maintain and develop production to overcome tough economic times while boosting recovery of the city's economy," Tien said.

Economic difficulties have forced more than 7,740 city firms to shut down during the first five months of this year, more than 80 per cent higher than the quarterly average figure of last year and equal to 68 per cent of last year's total number of bankruptcies.

Tien stressed that his department has enhanced inspections to ensure the efficiency of the tax policy and prevent tax fraud.

As a result, from the beginning of this year, the Ha Noi Tax Department collected VND472 billion ($22.47 million) in arrears for the State budget while preventing the loss of hundreds of billions of dong in revenues, he added.

Vietnam introduces goods in Myanmar

The Ho Chi Minh City Trade and Services Fair 2012 opened in Yangon, Myanmar, on June 15.

At the opening ceremony, the Vice chairwoman of the HCM City municipal People’s Committee, Nguyen Thi Hong, stressed that Myanmar is a key market for Vietnamese businesses.

Since 2010, HCM City has organized seven task forces to promote Vietnamese products in the Myanmar market, she said.

The fair, the largest of its kind by Vietnam in Myanmar, features 144 stalls representing 70 food, household appliance and tourism businesses. The event will last through June 19.

The two-way trade turnover between Vietnam and Myanmar in 2011 reached US$150 million, up 51 percent compared to 2010. In the first quarter of this year, the figure was US$45 million, a 17.8 percent increase over the same period last year.

Good year for timber exporters

Increases in export orders of wood products are likely to see the sector hit a value of US$4 billion in wood exports this year, slightly higher than last year's US$3.9 billion.

Nguyen Chien Thang, chairman of the Handicraft and Wood Industry Association of HCM City (HAWA), says almost all major wood processors have signed export contracts to be fulfilled by the end of this June.

However, he says many domestic wood processors are still facing difficulties in ensuring capital and in overcoming surging production costs.

"One important thing now is that local producers should improve marketing activities and the design of their products," he said.

Vo Truong Thanh, chairman of the Binh Duong Furniture Association (Bifa), said recently, export orders of wood products had increased in volume and value after a long period of sluggish exports.

Exports were held back in part due to a shortage of supply, as many small-and medium-sized wood producers had reduced production or closed due to difficulties in capital and short supply of raw materials, Thanh said.

The time was right for wood export producers in Vietnam to increase exports and selling prices, which will contribute to substantial revenue growth for this year, he said.

HAWA predicts that the major export markets for Vietnamese wood products this year would be Asian and South American countries. In particular, the export value of Vietnamese wood products to Japan has risen by 27 percent since the end of 2011 and will continue to increase due to high demand for wood in construction projects following last year's massive earthquake and tsunami in Japan, Thang said.

Meanwhile, American partners have signed contracts with local wood producers who offer competitive prices against Chinese products, said Thanh.

Therefore, the total export value of wood products is expected to top US$4 billion this year, higher than last year's level of US$3.9 billion.

The sector is also aiming to better ensure supply of raw timber. Nguyen Ton Quyen, chairman of the Vietnam Wood and Forestry Product Association, says that under the national development strategy for the forestry industry, by 2020, the sector will be able to meet domestic demand for wood as well as for export.

That meant until 2020, local producers will continue to still import raw materials for export processing, often at high prices.

"So they must seek solutions to increase their competitive capacity against wood product producers from other countries," Quyen says.

E-Biz index to boost online trade

The Vietnam E-Commerce Association (VECOM) plans to develop an e-commerce index to review progress in development of services across the country that enables business to be carried out online.

The new Vietnam e-Biz Index, part of the Government's master plan to develop the e-commerce sector, will help enhance the competitiveness of businesses and the country as a whole, according to VECOM.

The index will also accelerate the modernization of the economy, which had a GDP of US$119 billion last year, while helping concretize Vietnam's commitments on international integration to WTO, APEC and ASEM.

VECOM vice chairman Nguyen Thanh Hung said that to build the index, from July to August this year the association will survey e-commerce readiness at thousands of businesses in all 63 provinces and cities nationwide.

Results of the survey will be collected and processed to develop and complete the index, scheduled to be published in November this year, he said.

Under the master plan on e-commerce development for the next five years, the Government aims to ensure at least 80 percent of the country's businesses have their own websites while half of all public utilities providers (including those providing water, electricity, telecommunications and media) will accept online payments.

The Ministry of Industry and Trade reported that 60 percent of large companies offered e-commerce services during the 2006-11 period, of which 70 percent had websites, 95 percent received online orders and 96 percent used email regularly for their business activities.

Meanwhile, up to 85 percent of small and medium enterprises allowed their customers to place orders online and 80 percent of them considered email as a tool for business.

In addition, 49 percent of households in Vietnam have an internet connection and 18 percent make online purchases.

The Vietnam ICT index, another indicator relating to the information and technology sector, measures the readiness of ICT (information and communications technology) applications and development in provinces across the country.

The central city of Danang last year topped index for the third consecutive year, marking the sixth year it had been listed among the top five cities.

HCM City secured second place and the northern province of Bac Ninh ranked third.

Northern IPs lure over 3,000 investment projects

Industrial and economic parks in northern provinces have so far attracted more than 3,000 domestic and foreign invested projects with total capitalisation of over US$40 billion.

They make up nearly 40 percent of the total number of projects invested in industrial and economic parks across the country, according to a conference of management boards of these parks held in Haiphong city on June 15.

Major parks that have operated efficiently include Dinh Vu-Cat Hai (Haiphong city), Nghi Son (Thanh Hoa province), Van Don (Quang Ninh province) and Chan May-Lang Co (Thua Thien-Hue province).

Delegates made an in-depth analysis of the existing policies and mechanisms barring land clearance, compensation, and investment attraction that reduce the attractiveness of these parks.

They proposed preferential policies for housing projects for employees, investment promotions, and development of industrial parks in disadvantaged areas.

Danang hosts conference on cooperative fisheries

Fisheries should work together and share valuable knowledge in order to overcome industry challenges, claimed the International Cooperative Fisheries Organization (ICFO) at a recent conference hosted in Danang.  

Held on June 15, the ICFO conference brought together professionals from East Asia to discuss global issues that affect local fisheries.

The ICFO, an organisation that aims to improve the social status of the world’s fisheries and protect the rights of its fishermen through international regulations on independence, democracy and equality, highlighted sea water pollution, sharp increases of oil prices, a notable decline of resources and global warming to be among the uphill challenges that mar the industry.

The ICFO concluded that international fisheries should work together to overcome these challenges.

The ICFO’s  Korean Chairman Lee Jong Koo hailed the Vietnam Cooperative Alliance (VCA) for organising the event. He stressed that it will serve as a forum for discussing solutions to sustainable development of fisheries in the future.

Participants heard reports from representatives from the Republic of Korea, Japan, India, the Philippines and Vietnam.

Last year, Vietnam produced 5.3 million tonnes of fish and earned a total export value of more than US$6.1 billion. The fisheries sector generates works for nearly 5 million people nationally.

The country now has more than 4,200 offshore fishing groups with over 25,200 vessels operating in  provinces and cities such as Thanh Hoa, Quang Binh, Quang Nam, Binh Dinh and Ben Tre and Danang.

Diageo tops up stake in Vietnam's Halico

Drinks giant Diageo raised its stake in Vietnam's biggest spirits company Halico to 45.5 percent on Friday as part of the group's strategy to increase its sales in fast-growing emerging markets.

The London-based Smirnoff vodka and Captain Morgan maker said it had spent around 14 million pounds (US$21.8 million) acquiring a 10.6 percent stake through a public offering as it looks to tap into the rapid growth of the Vietnamese branded spirits sector.

The world's biggest spirits company is being attracted to Vietnam by the nation's growing population, its emerging middle class and Halico's strong position in local premium spirits led by its main Vodka Hanoi.

Halico - or Hanoi Liquor Joint Stock Company - was founded in 1898 and is still controlled 54 percent by the state-owned Hanoi Beverage Company. Diageo has acquired its stake through a number of purchases since January 2011 through public offers and from private equity group VinaCapital.

Diageo's Chief Executive Paul Walsh is aiming to get 50 percent of the group's sales from emerging markets by 2015, from around 40 percent currently, and has recently made acquisitions in China, Turkey, Ethiopia and Brazil to help it to that target.

It is also looking to buy or take a stake in the world's number one Mexican tequila Jose Cuervo and sources close to the situation say it hopes to complete a deal by July with the brand's owning Beckmann family.

Long-term savings interests soar after cap removal

Commercial banks are jostling to increase deposit interest rates on savings of above 12 months since the State Bank of Vietnam has removed the cap slapped on deposits under that category.

The ceiling rate for long-term deposits of above 12 months was removed on June 8, following the central bank’s circular no. 19 which stipulates that credit institutions are allowed to set interest rates on savings under that category through their own initiatives.

The circular also lowers the interest rate cap on savings with terms between 1 and 12 months to 9 percent a year.

Savings with a term of less than 1 month are subject to a 2 percent rate, accordingly.

The cap removal, which the central bank said was made as a bid to help banks restructure their capital sources and to pave the way for another removal of deposit interest rates on all terms, has ignited a wave of banks rushing to set high interest rates to attract depositors, with common rates standing between 11 percent and 12 percent a year.

For instance, ACB has so far increased deposit rates twice, sending rates from terms of 12, 13 and 24 months from 9 percent to 11 – 11.5 percent a year. Savings under a 36-month term are now subject to a high rate of 12 percent a year.

While most banks are now offering deposit rates between the average band of 11 – 13 percent, the Western Bank has recently shocked the market by sending its rate to as high as 14 percent a year.

The bank said the phenomenal rate is only applicable to savings of a 13-month term, according to economic newswire VnEconomy.

The Western Bank phenomenon has reminded insiders of the cases of SeABank and Techcombank, which also shocked the banking market by offering exorbitant interest rates for their deposits.

On June 11, 2008, when interest rates standing at 17.5 percent were already considered too high, SeABank announced a 19.2 percent a year rate, while Techcombank launched a three-day event to accept deposits at 17 percent a year on December 8, 2010, when other banks were aggressively competing with each other at only 15 percent a year.

However, as the above banks both had to stop offering the high rates within a day of their announcement, analysts are wondering if the same thing will happen to Western Bank, VnEconomy reported.

Technically speaking, Western Bank has not violated any regulations since the rate cap has been removed.

As the government and the central bank have constantly exerted effort to reduce lending rates, insiders are also concerned that the high deposit interest rates will discourage businesses and borrowers, who are longing for the chance to access cheap loans.

Understandably, a bank has to offer loans at exorbitant rates to balance, as it has mobilized deposit at high rates.

In fact, the highest lending rate recorded at Western Bank last year was a shocking 29 percent a year, according to VnEconomy.

Boat homes unsafe for stormy season

Quang Ninh Province People's Committee is boosting inspections and resettlement for residents living in unsafe boat homes ahead of the stormy season.

According to the provincial Waterway Police, at present, the province has nearly 4,700 residents living on 1,146 boat houses that fail to meet safety and fire prevention rules.

Most of the homes are used for shelter, to grow aquaculture products and as floating restaurants.

Property firms still face difficulties
 
Real estate firms are still facing significant obstacles in accessing loans despite recent Government efforts to ease conditions and improve the business environment, experts have told the Vietnam News Agency.

The State Bank of Viet Nam (SBV) has slashed the ceiling lending interest rate for short-term dong loans to 13 per cent per year.

The decision to loosen credit for the property market and remove it from a portfolio for which lending was restricted was extraordinary, said Nguyen Thi Hong, from the SBV Monetary Policy Department.

Under a resolution issued last month, the Government implemented a variety of measures, including a land rent and tax reduction, tax payment extension and price control, to help companies deal with difficulties.

Many commercial banks have launched preferential lending packages for property areas, including house construction, investment and trading.

CMC Tile JSC General Director Nguyen Quang Huy and Tu Lien Co Director Le Van Tu said it was not easy for enterprises and individuals to access these packages, however.

Individuals who wanted to buy a house ought to select projects financed by banks, besides having to negotiate with them about mortgage assets and borrowing terms with complicated procedures.

For construction firms or property dealers, showing practical business plans with good development prospects to qualify for loans was very hard at present in the face of a frozen property market.

According to a recent Viet Nam Chamber of Commerce and Industry (VCCI) survey, only about 60 per cent of local firms could currently bear interest rates of between 12 and 13 per cent, popular "preferential" levels now offered by banks.

This showed that current interest rates, though slashed, were still high compared to the practical abilities of many enterprises, Hanoi Land Co Director Nguyen Dinh Tung said, noting that this was a great barrier for construction firms.

He added that preferential packages drew little interest from businesses in the current stagnant property market, which had seen almost no measures to stimulate demand.

Tien Thanh General Trading Co Director Bui Duc Toan agreed that it was necessary to encourage demand, noting: "If purchasing power wasn't improved...firms wouldn't be able to continue production and investment activities and would have no profits for paying taxes."

Dinh Ngoc Son, director of Vietcombank's Lao Cai branch, said enterprises needed to use loans efficiently and assure their ability to repay debts.

"This must be closely considered and controlled," he stressed.

Hong said banks seeking to improve credit growth would not loosen standards of lending and would have to assure an outstanding loan ratio of no more than 16 per cent for this year.

She said it would take a certain period for the Government interest cut and tax reduction policies as well as commercial preferential packages to take positive effect among enterprises.

"Expected results may come in at least three months," said economist Le Dang Doanh.

Haiphong leads in attracting FDI

The Flamboyant Festival kicked off on the night of June 9 with a colourful parade involving thousands of residents and tourists, artists, and performers.

Floats were decorated with the red blossoms while people dressed up in eye-catching red costumes.

A contest for the ‘best red costume’ bought many smiles at the opening night, which also featured a fireworks display.

Many street performances highlighted the beauty of the city, especially the mass choir of 1,000 people which performed the city ‘anthem’ Thanh pho Hoa Phuong Do (The City of Red Flamboyant) by songwriter Luong Vinh.

Hundreds of people joined a bicycle parade along the main road where 4,000 flamboyant trees grow, connecting the city’s centre with Do Son beach.

The city also launched a walking street and a night market to mark the occasion.

The festival is an activity to kick-start National Tourism Year 2013, which highlights tourism in the Red River Delta region and promotes the city among tourists and investors.

Local authorities expect it will become a ‘trademark’ cultural and tourism product.

Emirates Airline recruits flight attendants in HCMC

After selecting 20 qualified candidates in Hanoi on April 28, Emirates Airline, an aviation firm in United Arab Emirates, will continue its recruitment of flight attendants in Ho Chi Minh City on June 24-25.

With support from its Vietnamese partner, the Labor Export-Trading and Tourist Company (Sovilaco), the firm will recruit 100 more attendants in the city.

During the 2-day recruitment, the firm will provide candidates with basic professional knowledge as well as detailed information about life in Dubai, the international city where the firm is headquartered.

“For the sake of Vietnamese passengers, we want to arrange at least one Vietnamese attendant for every flight departing from Vietnam,” Thierry Antinori, Emirates’ Executive Vice President, told Tuoi Tre.

Candidates can submit their applications via Emirates’ website at www.emiratesgroupcareers.com, he said.

A subsidiary of the Emirates Group that has over 50,000 employees, Emirates Airline is now the largest airline in the Middle East, operating over 2,500 flights per week.

The firm is also a fast-growing international airline with one of the youngest fleets in the sky and more than 400 awards for excellence worldwide.

Law body head indicted for causing damage to citizens

Police in Can Tho City have arrested Le Tuan Kiet, 50, former head of the civil verdict execution sub-department in Can Tho City’s Binh Thuy District, and his former deputy for causing a damage of US$124,000 to two local residents.

Kiet and 43-year-old Do Hoang Minh have been charged for “being irresponsible and causing serious consequences”, said the Supreme People’s Procuracy.

According to investigators, Kiet and Minh committed serious wrongdoings when they enforced a civil verdict issued by the city People’s Court in 2010.

Under the verdict, Nguyen Minh Chanh, a local man, had to pay VND4.7 billion ($225,000) to Ho Thi Thai Hoa, also in Can Tho. The two former officials then used two houses valued at the same amount and owned by Pham Hung Dinh and Ngo Than Thien, who were Chanh’s debtors, as a payment to Hoa.

Such a payment caused a damage of VND2.6 billion ($124,000) to Dinh and Thien, since they actually owed Chanh only VND2.1 billion.

Moreover, Kiet and Minh handed the houses over to Hoa without the presence of the houses’ owners and representatives of local authorities.

Kiet later asked the district People’s Committee to grant Hoa two certificates of house ownership and land use rights for the two houses.

After getting the certificates, Hoa sold the houses, making the case more complicated.

Banks reap hefty profits while firms suffer losses

While most local businesses have been struggling to escape from financial troubles, all seventy one commercial banks in Vietnam raked in a handsome sum of profits in 2011 and the first four months of this year.

The total revenues of local businesses in 2011, according to figures from the General Department of Tax, were some VND7,500 trillion (US$360 billion), but total expenses, including raw material and labor costs, and loan interests, were as high as VND7,200 trillion, or 97 percent of revenues, with expenses earmarked to clear bank loans worth VND466 trillion.

Meanwhile, contrary to the businesses’ hardship, the 71 commercial banks countrywide saw their 2011 profits soar dramatically, figures from the tax watchdog show.

The credit institutions’ profits from business operation in 2011 amounted to some VND97 trillion, up by 45 percent compared to 2010.

Moreover, according to the general department, in the first quarter of this year while as much as 70 percent of the 258,000 businesses incurred a massive VND40 trillion loss, banks were still earning fat profits.

“Basically, banks are still operating with a gain from credit businesses, with profits increasing in both ratios and scales,” the General Department of Tax commented.

The tax authorities also said that during these hard economic times, when businesses have been scrambling to cut operation costs and tightened spending, operational expenses in banks still rose from VND54 trillion in 2010 to over VND76 trillion in 2011.

Accordingly, wages for those working at banks have rapidly soared over the years, from VND7 million per capita per month in 2007 to VND15 – 21 million in 2011, two to threefold the country’s basic wage.

“This is because the credit policies have allowed banks to reap whopping profits in the recent past,” the tax watchdog stated.

Banks said lending is the largest source of profits.

Le Duc Tho, deputy CEO of Vietinbank, said revenues from lending activities account for around 70 percent of the bank’s total profit.

The deputy CEO of a commercial bank in District 1 also confirmed that the policy allowing banks to negotiate lending interest rates with borrowers, while the deposit rate is capped, have created huge advantages for banks.

While the deposit rate cap has been constantly lowered over the last few months, banks are still able to earn profits from the old loans with high rates.

To date, the difference between the lending interest rate and deposit rate has amounted to 3.5 – 4.5 percentage points.

The Business Tax Management Agency and the General Department of Tax have thus called on the State Bank of Vietnam to restrict the gap to 2.2 – 2.5 percentage points to curb inflation and control credit growth.

Doctor Nguyen Dai Lai, former deputy head of the Bank Development Strategy Agency under the central bank, also urged banks to cut operation costs to reduce lending rates to assist borrowers.

Central Highlands to develop eco-tourism

The Dak Nong Central Highlands province plans to invest US$142.8 million to develop ecological tourism and traditional culture.

Under the eight-year plan, 20 areas connected with forest protection and culture will be developed, covering more than 30,000ha.

To achieve the goal, the province will use build-transfer and build-operate-transfer methods.

Farmers shun insurance project
 
The agricultural insurance programme that has been piloted since last July has yet to become popular.

The three-year programme, which seeks to help farmers overcome losses caused by natural disasters and epidemics, covers three main categories – rice, livestock (buffalo, cows, pigs and poultry), and aquaculture (tra and basa fish, black tiger shrimp, and white leg shrimp) – and is being implemented in 21 cities and provinces.

Under it, the Government fully subsidises insurance premium payments for poor farmers, 80 per cent for those living near the poverty line, and 60 per cent for those with an average income.

Production units buying agricultural insurance get 20 per cent support.

But despite the across-the-board subsidy, mainly poor farmers getting 80 and 100 per cent subsidy have signed up, many localities have reported.

For instance, in Vinh Phuc Province, 909 out of 991 households opting for the insurance were poor or near poor, said Bui Nhu Y, deputy director of the Department of Agriculture and Rural Development.

Pham Huu Lang, head of a hamlet in Thai Binh Province's Vu Thu District, said the commune steering committee sent officials to each resident's house to explain the importance of agricultural insurance and encourage farmers to buy it, but farmers had remained indifferent due to high fees and some unreasonable regulations.

Nguyen Phi Hung, head of the Nguyen Xa Co-operative in Thai Binh, said the insurance covered some diseases that farmers could themselves fight but not others that were deadlier.

Many local authorities, admitting to this, said some livestock-related provisions should be adjusted and other diseases affecting rice and livestock should be covered to attract more interest.

Besides, the programme should allow provinces to decide what assets would be covered by the insurance, they said. For instance, dairy cow breeding is an important activity in Vinh Phuc and farmers there want to insure their herds, but the programme does not cover it in the province.

The ministries of Agriculture and Rural Development and Finance have taken on board the criticism and agreed to amend provisions, regulations, and premiums.

Accordingly, MARD plans to add storms and prolonged droughts to the list of natural calamities covered by the programme.

It will also add more diseases affecting rice, cows, buffaloes, pigs, and poultry – including rice blast disease, pasteurellosis, cholera, typhoid, and gumboro – to the list.

The ministry wants insurance companies to popularise the pilot programme and subsidise vaccination and treatment costs.

Nguyen Quang Phi, deputy general director of the State-owned Bao Viet Insurance, said the central steering committee on agricultural insurance had reduced the premiums for pigs.

It was studying cuts in premiums for other animals too, he added.