Students overflow training camp to seek chances  

More than 200 internship and job opportunities from international and Vietnamese companies were showed to higher education students at a training camp in Ho Chi Minh City Saturday, where about 500 people joined.

The Supply Chain Young Talent Training Camp, held by Vietnam Supply Chain, took place in the whole day at the Continental Hotel in District 1, with information sessions and interviews.

Companies offered internship and job opportunities included IBM, Dutch dairy products manufacturer Friesland Campina, Nielsen, Odyssey Resources, MTV Quang Minh, Ignite International Corp., HSBC, Generali Vietnam Life Insurance, Cathay Vietnam Life Insurance, Prudential Vietnam Finance Co., Sapporo, Parkson Vietnam, Denmark’s Sonion Vietnam, Dinh Phong Telecom, and some others.  

Participating students came from RMIT University, Polytechnic University, National University HCMC, University of Economics HCMC, University of Industry, Lotus Univ., Foreign Trade Univ. and some others, according to the organizer.

The organizer, a platform for supply chain professionals in Vietnam to learn, share, and network, brought supply chain practitioners and experts to the event as speakers to help the students with information and experience.

Ms. Dang Ngoc Khanh Van, learning and organizational development manager from healthcare goods producer Kimberly-Clark Vietnam, made a presentation on soft skills a career starter needs.

“Supply Chain: A whole new world” seminar in English was held for the students as part of the training camp.

Other sideline activities included an exhibition on internship and jobs, a supply chain competition for young talents, and English test: “Is your English good enough for the job?” on the computers at site.

The training camp was held mainly to find potential talents for the supply chain industry in Vietnam, said Vietnam Supply Chain managing director Quyen Nguyen.

HCMC Travel Expo to become national event  

The Ministry of Culture, Sports and Tourism has asked the government to make the annual Ho Chi Minh City International Travel Expo into a major national event. 

The 7th International Travel Expo 2011 entitled “Four countries, one destination” will be held at the Saigon Exhibition and Convention Centre in District 7 on September 14-17.

The Expo aims to introduce new travel destinations, world heritage sites and tourism products of four countries namely Vietnam, Cambodia, Laos and Myanmar. It is also a platform for domestic and foreign enterprises to meet and seek business opportunities.

The Expo has more than 300 display booths of local tourist companies and 347 foreign travel companies from 47 countries such as the US, Canada, UK, France, Germany, Russia, Australia, Japan, South Korea, China, Denmark, Sweden, Finland, India, Singapore, Malaysia, Thailand, Indonesia and the Philippines.

A seminar on tourism investment and promotion will be one of the highlights of the event which is expected to lure about 160 domestic and foreign investors.
 
Ministry sets 4-year target for fish farming in cages, ponds

The Ministry of Agriculture and Rural Development has set a target of farming 160,000 tonnes of marine fish species annually by 2015.

The ministry's programme to develop this sector through 2015 envisages breeding the fish in both small and industrial-sized cages in straits and bays as well as in brackish ponds.

Various species of fish will be farmed, with priority given to high-value species with large export potential like grouper, pomfret, snapper, cobia, and bass.

It will be combined with the farming of other marine species such as bivalve molluscs, sweet snails, and sea vegetables.

In the sea, the cages will not take up more than 10 per cent of the farm area.

The marine farms will have distinct clusters of cages, with each cluster not exceeding one ha and being 500-1,000 metres away from each other.

Farms using small cages will be developed at river mouths in bays in northeastern Quang Ninh, central Phu Yen, Khanh Hoa, and southern Kien Giang provinces.

Industrial-scale cages measuring 1,000-1,200 cubic metres and capable of withstanding very strong winds will be installed in large bays in central Phu Yen, Khanh Hoa and Da Nang, and Kien Giang provinces.

A national fisheries breeding centre will be set up in each of the southern, central, and northern regions to supply fish to the farms.

Seven or eight feed plants will be built or upgraded around the country to produce 50 tonnes each daily – or four such plants with a daily capacity of 100 tonnes – to supply feed to the fish farms.

US-Vietnam trade hits US$10 billion

Two-way trade turnover between Vietnam and the US in the first half of this year reached US$10 billion, an increase of 21 percent over last year’s same period, said the US International Trade Commission (ITC).

Accordingly Vietnam imported nearly US$7.92 billion and exported US$2.07 billion.

Garment topped the list of items (US$3.04 billion), followed by footwear (over US$967 million), furniture (US$837 million), electric applicants and audio devices (US$403 million) and seafood (US$332.6 million).

US exports to Vietnam included cotton (more than US$262 million) followed by steel (second at US$132.6 million) and machinery and vehicles (US$186 million).

The Vietnam Trade Office in the US estimated the two countries’ two-way trade in 2011 at US$20 billion, 10 percent higher than last years’ record figure of US$18.321 billion.

Garment export target raised after good year

The country's textile and garments sector has had its annual export forecast upped by US$500,000, based on performance this year.

The Ministry of Industry and Trade changed the sector's forecast for 2011 from the previously announced $13 billion to $13.5 billion.

The new figure was announced after textile and garment exports rose to $7.56 billion in the first seven months of the year, up 29.4 per cent over the same period last year.

The US remains the largest buyer, accounting for over 50 per cent of the sector's exports, followed by the EU with 17 per cent and Japan with 12 per cent.

The ministry estimates that exports will rise to $774 million to South Korea in 2011, a year-on-year increase of 80 per cent, making the country the fourth largest buyer of Vietnamese textiles and garments.

However, in addition to ongoing challenges, including high material prices and production costs, the sector would face tougher times when major markets cut orders due to lower demand, said Dang Phuong Dung, deputy chairwoman of the Viet Nam Textile and Apparel Association.

The increase in minimum wage beginning in October would also affect the operations of many enterprises in the sector, industry insiders have said.

While the move aims to help workers hit hard by inflation, it will also increase production costs in labour-intensive industries, including the textiles and garment industry.

Many members of the association have cut electricity consumption, management and operational costs, and have reduced stocks of materials in order to cope with the situation.

Than Duc Viet, managing director of the Garment Company No10, said his company had cut input costs by economising on water and power consumption, and re-organising its production lines to improve quality and enhance the company's competitiveness.

VN to have 118 golf courses

The former Minister of Planning and Investment, Vo Hong Phuc, has affirmed that the country would have 118 golf courses under a new master plan for golf-course development toward 2020, submitted by the MPI and approved by Prime Minister Nguyen Tan Dung.

One day before stepping down from his post, Phuc said that among 118 projects, 20 were new ones, and 98 others were based on the former golf-course development plan.

He said the number of 118 golf courses was equivalent to the number of golf courses in neighbouring countries that have the same development level as Viet Nam.

The Philippines has 100 golf courses; Malaysia, 230; Thailand, 256; and Indonesia, 152, according to MPI figures.

Early this year, the People's Committee of northern Bac Ninh Province asked the Government to add the 36-hole Hap Linh golf course project to the national golf-course development plan approved by the Government in 2009.

Central Quang Ngai Province recently set up a plan to establish Van Tuong Golf Course.

Thanh Hoa, Thai Nguyen, Thai Binh, Dak Lak and Quang Ninh provinces as well as Hai Phong City also have plans to open more golf courses.

Phuc said the new plan was co-prepared by the ministries of Planning and Investment, Natural Resources and Environment, Construction and the Government Office after these agencies had sent officials to localities for study tours.

He added that golf courses would help Viet Nam in the competition with neighbouring countries in attracting foreign investors and tourists from the developed world.

Of the 90 licensed golf courses in the country, only 28 are under operation.

VND3,500 billion needed for Cau Gie-Ninh Binh highway

The Ministry of Finance has sponsored the issuance of bonds worth VND2,400 billion and needs to guarantee another VND5,774 billion.

According to the Ministry of Transport, 84 percent of the Cau Gie-Ninh Binh highway project has been completed. However, the project needs VND3,500 billion more to finish construction work and handle stimulus package loans.

The 56 km-long project started in early 2006 at an initial total cost of VND5,422 billion sourced from the issuance of bonds under the Government guaranty.

Due to price fluctuations and other arising problems, the total level of investment in the project has been raised to VND8,974 billion.

Vietnam saves US$1.8 billion from fertilizer import

PetroVietnam Fertilizer and Chemicals Corporation with the brand name Dam Phu My (DPM) has produced 5 million tonnes of urea fertilizer after seven years of operation, helping the country save US$1.8 billion from not importing fertilizer.

To acknowledge this achievement, Prime Minister Nguyen Tan Dung presented DPM a certificate of merit.

Addressing the ceremony in HCM City on August 14, Minister of Industry and Trade, Vu Huy Hoang, praised DPM’s efforts to ensure the safe operation of its plant and meet nearly 50 percent of the country’s agricultural fertilizer demand, thus contributing to ensuring national food security. The company has also successfully implemented the Party’s guidelines on boosting agricultural and rural development and encouraging Vietnamese people to use Vietnamese goods, Mr Hoang noted.

He asked DPM to maintain its output, increase the quality and diversify fertilizer products, and work closely with relevant agencies in the fight against fake fertilizers.

DPM General Director Cao Hoai Duong said the company will expand its business operations to boost the fertilizer trade and its investments abroad, aiming to become a leading fertilizer and chemical producer in the region.

DMP is expected to earn VND8,000 billion in revenue and VND2,000 billion in pre-tax profits this year.

Sea fish output set to hit 260,000 tonnes by 2020

The Ministry of Agriculture and Rural Development (MARD) has approved a plan for developing breeding sea fish through 2015, with orientations for 2020.

Under the plan, the output of sea fish raised in salt water and shrimp ponds is expected to reach 61,000 tonnes by 2015 and 98,000 tonnes by 2020.

Sea fish raised in small cages is estimated to hit 44,000 tonnes by 2015 and 51,000 tonnes by 2020, while the output using industrial farming methods will be 55,000 tonnes by 2015 and 111,000 tonnes by 2020.

As a result, the total output of sea fish will hit 160,000 tonnes by 2015, equivalent to US$1.04 billion in value, and nearly 260,000 tonnes by 2020, valued at US$1.8 billion.

Vietnam urged to develop support industries

In recent years, the development of science, technology and related support industries has contributed significantly to the economy of ASEAN member nations, including Vietnam.

However, Vietnam’s support industries have faced many challenges and the country's advantages have not been fully tapped. Delegates shared this view at a forum co-organized by Reed Tradex (Thailand), the Japan External Trade Organization (JETRO) and the Hanoi Department of Industry and Trade (HTPC).

Hanoi is one of the biggest cities and has great potential for developing distribution and subsidiary industries. It has taken measures to stimulate the development of support industries and major industrial products to help businesses use modern technology to improve their productivity, quality and competitive edge.

According to the Ministry of Industry and Trade (MoIT), Vietnam’s support industries depend on imports for nearly 80 percent of their raw materials. For example, the automobile industry uses only 5 to 10 percent locally produced materials and components.  

In an interview with reporters, Luu Tien Long, director of the HTPC, emphasized that Vietnam’s support industries are not effective because of their poor competitive edge and outdated technologies.

Mr Chainarong Limpkittisin, Director of Reed Tradex said, in order to develop its support industries, Vietnam needs to carefully consider such factors as quality, production cost, delivery time and production skill. He also added that the Vietnamese Government has paid special attention to support industries and that local producers must strengthen cooperation to improve their competitive edge and increase productivity.

The chief representative of JETRO in Hanoi said that Japan will continue transferring new technologies to Vietnam, adding that Japanese businessmen have already visited factories in Vietnam, providing technical and managerial support for developing support industries.

Hoang Thach cement to expand production

Hoang Thach Cement Company, a subsidiary of the Viet Nam Cement Industry Corp (VICEM), plans to upgrade production lines 1 and 2, increasing their capacity by 15-45 per cent to 3,800-4,500 tonnes per day.

The company will also install another cement grinder with a capacity of 250 tonnes per hour and cement silos that can hold up to 20,000 tonnes.

Quality fair to open in Da Nang City

The Vietnamese high-quality products fair will take place at the Da Nang International Exhibition Centre from August 16-21, according to the Da Nang Trade Promotion Centre.

The fair is expected to have 500 stalls of 200 domestic enterprises which have been granted Vietnamese high-quality goods licences, including garments, electronics and food.

The annual fair was organised by the Centre for Business Studies and Assistance, the Business Association of High Quality Vietnamese Goods, the Sai Gon Tiep Thi newspaper and the Da Nang Trade Promotion Centre. It aims to support the commercial success of domestic goods.

Dai Hung oil field receives first flow

The oil rig DH-02, belonging to PetroVietnam Domestics Exploration Production Operating Co in Dai Hung oil field, welcomed its first oil flow of 7,600 barrels per day.

DH-02 has five small oil wells and is expected to reach a capacity of 18,000 barrels per day.

Yamaha Motor to expand Ha Noi-based factory

The Japanese motorbike manufacturer Yamaha has promised to invest US$26 million in its factory in Ha Noi to increase the capacity by 50 per cent to 1.5 million units per year. This effort is part of Yamaha's $90 million investment plan to meet high demand for motorbikes in Viet Nam and India.

Total profit from motorbike sales in Viet Nam grew 19 per cent in the first six months of the year compared to the same period last year.

Yamaha sales peaked at 6.96 million units globally last year, ranking second after Honda Motor Corp.

India bank to launch new branch in Viet Nam

Managing director of Indian Overseas Bank (IOB) Nupur Mitra has met with the State Bank of Viet Nam Governor to urge the upgrade of its current representative office to a new branch in HCM City.

The new branch would support bilateral trade between the two countries, which reached US$1.55 billion in the first five months of this year, an increase of 30 per cent compared to same period last year, said Mitra.

Bilateral trade between Viet Nam and India is expected to reach $4 billion by the end of this year.

Competitive energy market to go live
 
Deputy Prime Minister Hoang Trung Hai has called on the Ministry of Industry and Trade to put the Viet Nam Competitive Generation Market (VCGM) into official operation by the beginning of next year.

The VCGM is expected to create an equal playing field by erasing Electricity of Viet Nam's (EVN) market monopoly, lead to lower costs and ensure a better balance between demand and supply.

At the beginning of last month, 48 out of the country's 73 power plants signed up to take part in a piloted VCGM programme.

Hai asked the ministry to allow EVN to implement payments according to current prices to help boost the market, urging the setting up of a national electricity regulatory commission including representatives from State management agencies and major power companies.

The deputy PM also asked EVN to review the establishment of power generation corporations during this quarter.

Deputy head of the ministry's Electricity Regulatory Authority of Viet Nam (ERAV) Dinh The Phuc said that power plants which were eligible to participate in the pilot programme have offered direct prices.

"Most plants joining the market have completed price establishment, offering software and upgrading their websites," Phuc said.

He said that the market has been boisterous after a month of operation and that the calculation of electricity prices and the publishing of information have followed regulations.

"While initial figures have shown the market reflecting a real demand for electricity as well as differences between peak and non-peak times, some plants have found following regulations based on prices and updates related to operation and capacity confusing," he added.

In an effort to put the market into official operation by the beginning of next year, relevant agencies have been rushing to develop an effective information and communication infrastructure for the market.

"EVN has mobilised its resources to improve connecting units to the system while transferring electricity purchasing contracts among power plants and building a standard price frame to act as a base for power plants to adjust their prices," Phuc said.

However, he said that one of the largest current difficulties facing the market centred on providing fuel to natural gas-fuelled power plants.

"We have been struggling to calculate an appropriate sales price due to little previous criteria," EVN Deputy General Director Duong Quang Thanh said.

EVN has asked the ministry to hire a consultancy firm to help choose a plant which could be used as a foundation in calculating prices based on capacity and cost.

The market would be developed into a wholesale competitive market by 2014 and a retail VCGM after 2022.

Sailing Amidst A Sea Of Rules

Given meticulous preparations and thorough consideration of Vietnam’s circumstances, ratifying international sea conventions will allow local marine transport firms to foster deeper global integration, enhance competitiveness and expand market share

Vietnam is considering whether to join international conventions on sea transport such as the Hague-Visby Rules, the Hamburg Rules and the Rotterdam Rules. Several experts contend that, judging by international standards, Vietnam’s marine transport industry is relatively weak. Ratifying international sea conventions will therefore pave the way for greater capabilities in the future.

Ngo Duc Minh, a legal expert from the Ministry of Industry and Trade, says that 80% of Vietnam’s import-export products are transported under the form of FOB (free on board). Other Asian countries remain the main trading partners, accounting for over 50% and almost 80% of Vietnam’s export revenue and import spending respectively. The impacts on the local sea transport industry is therefore significant.

Despite encouraging growth in 2000-2010, the revenue that local firms reap from sea transport remains dismal compared with import-export value. Local sea transport firms have not been able to ship cargo to faraway destinations such as American and European countries. There is certainly much room for improvement in this aspect.

Moreover, international sea conventions will help Vietnam harmonize domestic and global norms, nurture trust among partners and reduce risks. Transaction costs will also drop, paving the way for more efficient dispute resolution and maritime trading.

At present, woeful maritime development has hampered the growth of export insurance, which is still dominated by foreign firms and a few giant domestic companies. Local insurers make up merely 20% of the import-export insurance market.

An in-depth discussion among experts on the opportunities and challenges arising from Vietnam’s ratification of international sea laws offers myriad insights. Many participants concur that Vietnam should steer clear of hasty decisions.

Dr. Nguyen Minh Hang from the Foreign Trade University sheds light on the legal aspects of this move. To begin with, the Rotterdam Rules will help to align Vietnam’s maritime law with global norms and establish a more comprehensive legal framework for transport contracts between Vietnamese firms and their foreign counterparts (via sea routes or a multitude of channels). Besides, these rules are regularly updated to reflect new developments such as e-receipts. However, it is advisable for Vietnam to embark on thorough research into the strengths and shortcomings of each set of rules and to ratify only one convention. An alternative is to adapt the rules to better Vietnam’s maritime law without ratifying any international convention.

Meanwhile, a representative from the Pepper Producers Association says that as sea transport conventions remain controversial, emphasis should now be placed on rectifying the shortcomings of Vietnam’s maritime law. It is suggested that Vietnam should ratify international conventions only when it has developed a powerful shipping fleet.

David Luff, a founding member of Appleton Luff - International Lawyers, a law firm, and an expert with the Multilateral Trade Assistance Project Vietnam II (MUTRAP II), says that there has not been a one-size-fits-all international sea convention. The Hague-Visby Rules tend to favor transport firms while the Hamburg Rules are advantageous to clients. The Rotterdam Rules blend these two conventions and suit Vietnam’s needs better in view of the ferociously competitive and flexible nature of sea transport, as well as the rise of containerized shipping, multimodal transport contracts and e-commerce. The downside, according to Luff, is that the number of signatories is still limited and the rules are considerably complex.

This being the case, Luff believes each country should stringently enforce the rules it has ratified and accept the principle of direct effect. In Vietnam’s case, the optimal strategy entails harmonizing local laws and those of its main trading partners.
 
Ha Noi plan may boost property market
 
The city's real estate market will be positively affected by the new general plan of capital development approved by the Prime Minister in July, according to experts.

As part of the plan, Ha Noi is set to add five new satellite cities including Hoa Lac, Son Tay, Xuan Mai, Phu Xuyen – Phu Minh and Soc Son, as well as many other eco-cities to its periphery.

Nguyen Dinh Toan, deputy minister of construction, affirmed that the plan would only have positive effects on Ha Noi's real estate market.

The new capital development plan will make it easier for real estate investors, traders and customers to make decisions due to comprehensive and accurate information regarding land development, he said.

Nguyen Huu Thang, head of the PetroVietnam Construction Investment JSC's Business Department, said that the plan would provide useful information related to the company's development strategy.

The plan would make the city's real estate market more transparent, Thang said, adding that investors would be able to study the market more carefully before investing.

Vu Cuong Quyet, general director of the Northern Dat Xanh JSC, a member of the Dat Xanh Group, said that the plan would warm up the city's market by the end of this year.

However, Dang Hung Vo, former deputy minister of Natural Resources and Environment, said that because the plan was aimed at long term development, no one could say for sure what its market effects would be in the short term.

Vo said that in future, property prices will fall to their real values, but no body could say when exactly this would happen.

"It's difficult to say how the city's property market will change after the approval of the general plan," said Dao Ngoc Nghiem, deputy chairman of the Ha Noi Urban Plan Association.

Currently, many investors have withdrawn their money from property projects that have not implemented infrastructure development in accordance with the city's general plan, Nghiem said.

Khuat Tuan Duong, deputy director of the Tac Vang Real Estate JSC, said that prices in some areas fell following the approval of the plan, meaning that it has yet to have an effect on the market.

Because the industry had suffered amidst the economic crisis, market circulation has been slow, even stopping in some instances, he said.

The general plan might effect the city's property market during the next 3-5 years, said a representative from the Hadico Real Estate Trading Floor.

Pham Trung Ha, general director of Hoa Phat Land, said that potential property areas set to heat up in the near future include the western and eastern parts of the city.

Auto parts importers evade tax
 
The Ministry of Finance is seeking to retrieve unpaid import taxes on automobile parts imported between May 2010 and August 2011.

The ministry alleges that some enterprises during that period evaded paying the 27-per-cent import tax on auto parts by declaring to customs that parts were components for assembling completed automobile units and therefore qualified for a zero-per-cent tariff.

The General Department of Customs, detecting the tax evasion, has retroactively levied penalty tariffs of 77-82 per cent on the parts in questions.

The ministry said there were five automotive parts firms found to have violated the import tax regulations and that unpaid taxes would be collected upon full investigation by relevant agencies.

The situation of wrong customs declaration was due to lower import tax rates for separate auto parts against completed units of auto, said the ministry.

Meanwhile, auto producers were urging authorities to review existing regulations on auto parts tariffs, asserting that existing tax rates were outdated.

Prices of imported automobiles have increased by an average 10 per cent this year, according to dealers, with many small auto importers ceasing imports altogether because of Circular No 20 issued by the Ministry of Industry and Trade, which required importers to obtain certificates of warranty and maintenance from the Ministry of Transport.

The circular has cut heavily into the supply of imported vehicles on the domestic market, said Dai Do Thanh Co director Nguyen Thanh Hoang. Monthly imports of completely built units fell from 3,000 units to 1,000 units between June and July, according to the General Statistics Office.

U.K. supports VN’s economic law reform

An agreement to support the revision of 16 economic laws in Vietnam was signed by the Vietnam Chamber of Commerce and Industry (VCCI) and the United Kingdom government in Hanoi on Thursday.

The U.K. deputy ambassador to Vietnam, Kate Harrison, said at the signing ceremony this was a practical step in the bilateral partnership between the two countries to improve Vietnam’s economic law system, promote sustainable development of the business community, and enhance competiveness of Vietnam’s economy.

Under the agreement, VCCI would cooperate with the Government Office and experts to reassess 16 economic laws and related legal guidelines that have the greatest impact on the local business environment after two years of deployment, said Hoang Van Dung, vice chairman of VCCI.

Reports on the law reassessment and related information will be published on VCCI websites www.vibonline.com.vn or www.luatsuadoi.vibonline.com.vn. Meanwhile, many seminars will be held in Hanoi and HCMC to collect public opinions on these reports.

A comprehensive report on Vietnam’s business environment will be submitted to the Prime Minister with proposals on amendments to the current laws. The report will also be sent to different committees under the National Assembly and related ministries.

The project to amend 16 economic laws and related legal guidelines was kicked off in Hanoi on Tuesday to enable a more liberal business environment in Vietnam. The project is carried out by the Government Office, VCCI and the U.S.’s Star Project to reassess the law system between now and November 2011.

The 16 laws and guidelines being reassessed include the Enterprise Law, the Investment Law, the Trade Law, the Intellectual Property Law, the Civil Code, the Land Law, the Value-Added Tax Law, the Corporate Income Tax Law, the Tax Management Law, the Customs Office Law, the Audit Law, the Marine Law, the Construction Law, the Real Estate Law, and the Environmental Protection Law.

New Hopes From New Planning

A national plan for electrical power development in 2011-2020 with a consideration toward 2030 was ratified by the Prime Minister late last month. Shortly called Electrical Power Plan 7, the scheme is expected to remarkably relieve the pressure on ever-expanding power sources and coal supplies for thermal power plants if it can be implemented successfully. In relation to its predecessor, Electrical Power Plan 6, the new version has tackled the bulk of problems pointed out by energy scientists and economic experts over the past few years.

The most prominent change in the revised plan relates to a breakaway from catching up with demand at all costs. It focuses instead on the goal of upgrading technologies so that power can be more efficiently generated and consumed. In line with the new viewpoint, the ratio between energy usage and GDP will be reduced from the current 2 to 1.5 by 2015 and 1 by 2020. This change will drastically cut the investment needed to accelerate power generation after 2015. The Electrical Power Plan 7 sets the total additional capacity source for the 2016-2025 period at 62,376MW, way below the 212,424MW predicted in the previous plan.

Less electrical power demand will not only considerably relieve the pressure of capital needed to invest in the power sector but also effectively help solve the problem of coal supplies to thermal power plants. Despite the fact that coal-fired power plants will still account for 48% of the country’s total electricity generation by 2020, that also means coal demand for power generation will drop significantly. As outlined in the latest plan, the total coal volume required by the power industry by 2020 is 67.3 million tons which can be almost met by local supplies. Currently, Vietnam exploits some 45 million tons of coal every year. According to industry experts, with adequate investment in exploitation and waste reduction, Vietnam is able to raise her total yearly coal output to 55 million tons. If things go that way, by 2020, Vietnam’s coal import demand will be under 20 million tons instead of 44-56 tons as predicted previously by the Ministry of Industry and Trade.

Another new point is that policy-planners have embraced in their plans a roadmap for renewable energy development. The new strategy also takes into account the potential for power generation from waste materials and excessive energy produced by various industries, as well as power import from neighboring countries. Of these, renewable power—which includes wind, solar and biological (biogas) energy—is prioritized.

That said, by 2020, of the 330 billion kWh to be produced, 46.8% will come from coal-fired generators, 24% from natural gas-fired power plants (4% will be from imported liquefied natural gas), 19.6% from hydro-power plants, 4.5% from renewable energy, 2.1% from nuclear power, and 3% from imports.

To generate this volume of power, Vietnam will need US$48.8 billion from now to 2020 whereby she will be able to raise the total capacity to 75,000MW, 3.5 times higher than the current capacity. Another US$75 billion must be sourced to boost the total capacity to 148,000MW during 2021-2030.

In Electrical Power Plan 7, the Government affirms that it will gradually raise retail power rates to reach 8-9 U.S. cents per kWh by 2020. The plan also confirms that the State will hold its monopoly of power transmission while leaving all other business fields open to all economic sectors.

Vietnam has also set ambitious goals for her electrical engineering industry, for instance, local manufacturers will produce 60-70% of equipment for thermal power plants by 2030.

The latest version of Vietnam’s power development shows a higher possibility of satisfying the power need of the economy. However, the core of the issue is whether these ambitious goals can be realized, the kingpin of which is how to reduce the ratio of additional charges of power plants. Failing to materialize this goal also means that all demand forecasts and planning will be shattered. Repercussions will be disastrous.

Aside from a complete overhaul of the power generation sector, the Government pins high hopes on higher power prices and gradual abolition of price subsidies which will exert a considerable pressure on household consumers and companies, compelling them to use power more efficiently.
 
Products recalled from U.S. hit record high

The number of Vietnamese children’s product recalls hit a record high last year as local exporters violated the U.S. goods safety regulations, according to a commissioner of the U.S. Consumer Product Safety Commission (CPSC).

Jeffrey G. Hilsgen, director of CPSC Asia-Pacific, said there were 18 Vietnamese children’s product lines recalled in the U.S. last year. As of August 4 this year, there had been seven cases compared to an average of 8-9 cases in previous years.

The major recalled products include beds with unsafe components and apparels with drawstrings or high lead content. There were 65 such product recalls in the U.S., among which 47 originated from China, in the period between October 2010 and March 2011.

These products have violated the U.S. Consumer Product Safety Improvement Act, or CPSIA. The regulations took effect from 2008 when Chinese harmful product recalls peaked.

CPSIA limits the permissible lead and phthalates content and requires tracking labels and safety certificates of products for children under 12 years old. Hence, the import of apparel products with drawstrings or bead-attached is completely banned in the U.S.

Richard W. O’Brien, director of International Programs and Intergovernmental Affairs for CPSC, said no U.S. importer comprehends the regulations. Therefore, Vietnamese exporters must master these rules and inform their partners if the order goes against the rules.

Vietnam’s exports to the U.S. reached US$14.2 billion in 2010, up by a quarter year-on-year and accounting for 20% of the national total export revenue.
 
Processors fret about new food safety rules

Food processors have voiced concerns over the new Law on Food Safety that took effect from July 1, saying new rules meddle into their business activity and spur costs, while enforcers also complained implementation was difficult.

Van Duc Muoi, general director of Vissa Limited Co., (Vissan), said that the law required enforcement agencies to monitor the whole process of food production while the old rules only required veterinary inspections on raw materials and finished products.

With the periodical supervisory activity, food processors face the risks of exposure of business secret and information, Muoi said. In addition, enterprises have to pay many extra fees, including the quarantine certification fee of VND5,000 per copy, and the quarantine fee of VND150 per kilo, which would cause the production costs to surge and cut into the competitiveness of companies, Muoi explained.

Vissan has to pay a monthly amount of up to VND200 million for the additional quarantine fee alone, he added.

The sales manager of a canned food trading company stated that products transported from nearby provinces into the city encountered the same problem.

Before the new law took effect, the HCMC Health Preventive Center had been in charge of taking product samples to check quality at the final step only.

According to an official of the HCMC Veterinary Agency, the supervision process of products throughout the process from acquiring materials to processing also place a heavier burden on the enforcement agency.

Instead of checking materials as earlier, related agencies have to monitor the whole production process and products, which is quite difficult, the source added.

Some households and small-scale processors fail to apply for business registration and food safety certifications, while others use materials from many different sources. Thus, relevant veterinary agencies find it hard to implement the new law, the source admitted.

PV