Refurbished gas cylinders flooding market  

Nguyen Sy Thang, chairman of the Vietnam Gas Association claims that about 40 percent of gas cylinders available in the market are fake brands, with more poor quality cylinders appearing in the market due to management negligence and lack of awareness by consumers.

A preliminary study by the Market Management Department under the Ministry of Industry and Trade showed that over 3 million out of 10 million gas cylinders have been appropriated by smaller gas companies.
 
Small companies collect gas cylinders of large companies, replace valves and handles, clean old logos and repaint their own. This then reduces the cost of manufacturing own cylinders.
 
A good quality cylinder costs about VND600, 000, whilst it is only VND300, 000 to refurbish one. Units manufacturing fake cylinders have therefore flourished, regardless of the law.  
 
A 12-kilogram fake gas cylinder is usually 0.5-1 kilogram underweight, which means that consumers are cheated out of VND30, 000 per cylinder.  
 
Recently Dong Phuong Production Company was caught with fake gas cylinders. At the company factory, Police of Hoc Mon District in Ho Chi Minh City found many cylinders of branded gas companies.  
 
Dong Phuong Co. collected nearly 2,000 empty gas cylinders of branded gas companies, who had lent them to gas agents on a security deposit basis, and refurbished them with their own name.
 
Le Thi Anh Man, chairman of the Southern Gas Association, said this method was most unsafe for users. It also caused losses for companies of these cylinders as they had spent over VND400, 000 to produce one 12-kilogram cylinder, while gas agents only deposited VND200, 000 as security.
 
Some industry experts say that consumers pay little attention to gas brand names and just exchange the old cylinder for a new one, rarely noticing the volume of gas or the safety of the cylinder.
 
Mr. Thang said consumers usually go for the cheaper offer.
 
He thinks consumers should become more aware and buy brand names, not go for cheaper options. This will help in preventing the circulation of fake products.
 
Another reason is lax management and light fines on violators who clear the fine if caught and continue regardless. Until now, gas companies have not come up with an effective means to counter this problem.

Infomercial firm fined, fake products seized

Ho Chi Minh City government has issued a fine of VND451 million (US$22,550) on Happy Shopping, a company that sells products on TV infomercials, and seized tens of thousands of fake or illegally-imported products.

In April, authorities found Happy Shopping, headquartered in Go Vap district, had smuggled products, illegally imported and sold fake ones, traded in cosmetics without clear origins, and hiring a Chinese CEO without registering with authorities.

The government also confiscated and destroyed over 13,000 product units belonging to 33 categories ranging from cosmetics, utensils to jewelries including vegetable cutters bearing the brand of Kitchen King Pro, ‘Swivel Sweeper’ cordless vacuum brooms, multi-purpose knives branded Contous Pro Knives, and ‘Spin Spa’ bathroom accessories.

Vietnamese carmaker open new bus manufacturing facility

Truong Hai Auto Joint Stock Co (Thaco) has recently opened a new bus manufacturing plant in Chu Lai Truong Hai complex in Nui Thanh District in central Quang Nam Province.

The company has officially introduced its new Thaco commercial buses to the public.

The work on the VND600 billion facility covering 15 hectares was started in May 2010.

In the first phase, Thaco's plant, equipped with bare chassis assembly line deployed from Korean Hyundai-Kia, will have designed capacity of 1,500 complete-built units (CBU) per year, providing jobs for over 600 laborers.

It will produce new bus lines specific products such as Thaco Mobihome, Thaco County, Thaco Aero, Thaco Universe from 18-51 seats, and other urban buses of 30-80 seats.

Some 40-46 percent of bus parts assembled there is produced domestically, said Thaco.

By mid-2012, the auto maker expects to export its products to Asean markets.

Thaco continued to take the lead in the number of CBU in May and sale in January-May with 2,672 cars and 13,001 cars, up 8 percent and 43 percent year on year respectively, according to the Vietnam Automobile Manufacturers Association (VAMA).

An Giang province to build airport

The Minister of Transportation has approved an airport construction project with a total investment of more than 3.4 trillion VND, in the southern province of An Giang .

Under the adopted plan which covers until 2020, with a vision to 2030, in the first phase from now to 2020, the airport construction will need a total of over 1.4 trillion.

On a total area of 235 ha, the civil airport area will occupy 34.2 ha while 31.2 ha will be allocated for a military airport area and 169 ha for other purposes.

The airport will boast a 3,000 sq.m. passenger and management terminal and will have an 1,850 metre long runway designed to serve ATR72 aircraft./.
 
Da Nang denies charge of dubious land sales

In an interview last week, Tran Van Minh, Chairman of the Da Nang People’s Committee, denied Tuoi Tre’s charge that it had dubiously sold land at dirt cheap prices.

In a document sent to Tuoi Tre, Minh said Da Nang had openly invited investors to bid for its Chi Lang Stadium project by posting ads on two local newspapers in September before officially giving the project’s land use right to Thien Thanh Corporation on October 6, 2010.

Tuoi Tre, however, had found out that in an official document numbered 4889 signed on August 10, 2010, the municipal People’s Committee had already agreed in principle to give the project to Thien Thanh.

This means that Da Nang had eyed Thien Thanh before openly calling for investments.

Minh, however, denied this charge, saying the official document No.4889 was to approve Thien Thanh’s research for possible construction of a trade and service complex on the land.

Minh said nowhere did this document mention the handing of the Chi Lang project’s land use right to Thien Thanh.

As for a project located at 209 Truong Chinh Street, Minh said it would cost VND70 billion (US$3.5 million) and the city had provided Military Region 5, which had previously owned its land use right, with VND30 billion (US$1.5 million) and Thien Thanh would have to pay VND40 billion (US$2 million) to carry out the project.

The city had transferred this project’s land use right without an auction to two enterprises Thien Thanh Corporation and Bac Nam 79 Corporation, a move which Minh said was legal as it was approved by the Ministry of Defence and the Ministry of Public Security.

There are no government regulations that require that all land must be auctioned off, he said.

Many investors of residential area projects such as Golden Hill, Phuong Trang, and Tuyen Son have not finished their infrastructure construction, though they have already been granted land but Minh said this was understandable since banks have tightened their lending in this economic slowdown, investors couldn’t get the large sum of capital necessary to finish construction of infrastructure for their projects.

Thus, investors have to raise capital and this totally follows the law, he said.

Japanese tourists return to Vietnam

Tourism arrivals from Japan are picking up again after slumping since March in the wake of the disastrous tsunami and earthquake that hit the country, major travel agencies in Ho Chi Minh City said.

Vietravel said from July 4 to 6 it will organize tours for three batches of 700 Japanese visitors.

They will visit popular destinations in HCMC before going to Cambodia to Angkor Wat – Angkor Thom.

APEX travel said it has received bookings from two groups of 150-160 people each.

This year Vietnamese travel agencies are using chartered flights to bring visitors from Japan, a key market for Vietnam.

Visitor numbers from the country had been expected to rise by 10-15 percent this year before the disaster plunged the number by 40 percent in March, April, and May.

In June and the following months, the numbers registering to tour Vietnam have recovered to 70 to 80 percent of that of the same period last year, the Vietnam National Administration of Tourism said.

Vietnam, Zhengzhou businesses seek stronger ties

Vietnamese businesses and their counterparts from Zhengzhou city in the Chinese central province of Henan sought ways to promote bilateral cooperation at a seminar in Hanoi on June 21.

Jointly organised by the Vietnam Chamber of Commerce and Industry (VCCI) and Zhengzhou municipal Bureau of Commerce, the event aimed to increasingly develop Vietnam-China economic and trade cooperation.

Hu Suojin, Economic and Trade Counselor of the Chinese Embassy in Vietnam, said that the embassy will do its utmost to foster the two countries’ cooperative ties and friendly relations.

Pham Quang Thinh, Deputy Director of International Relations Department of VCCI said that VCCI will serve as a bridge, creating the most favourable conditions for businesses from Zhengzhou city to expand investment and cooperation with Vietnamese partners.

The event also offered an opportunity for businesses to find out about the 17th Zhengzhou Commodity Fair and Consumer Goods Expo with pavilions designed for commodities from Southeast Asia, including electronics, machinery, chemicals, garment, pharmaceuticals, energy resources, minerals, household electronic appliances, construction materials and foodstuff.

The leader of Zhengzhou municipal Bureau of Commerce affirmed that municipal authorities would put forward incentive policies and services for Southeast Asian customers, including Vietnamese businesses, to help them expand markets from the central region to neighbouring provinces of Anhui, Shanxi, Hubei, Nei Mongol (Inner Mongolia) and Liaoning.

Seminar in Russia discusses Da Nang’s tourism potential

The Da Nang city authorities have always created favourable conditions for Russian travel agencies to cooperate, do business and develop tourism in Da Nang.

This was said by Vietnamese ambassador to Russia, Pham Xuan Son, at a seminar to introduce tourism potential in Da Nang and cooperative prospects for both Vietnamese and Russian travel agencies.

Addressing the seminar, Mr Son emphasised that the Government of Vietnam has paid special attention to developing tourism, simplifying visas and improving transport to ensure political security and safety for tourists. He added that Vietnam is more attractive to Russian tourists thanks to the Vietnam-Russia strategic partnership, the Vietnamese people’s hospitality, and the country’s climate as well as its beautiful landscapes, resorts and beaches.

Representatives from the Da Nang Department of Culture, Sports and Tourism, Hoang Dat Silver Shores Co, Ltd and the Vietnam Tourism Joint Stock Company introduced Da Nang and answered questions about its advantages and investment environment.

The seminar is a significant activity which will help Russian and Vietnamese businesses operating in Russia learn more about cooperating and investing in Vietnam, and contribute to promoting the Russia-Vietnam relationship.

The event was co-organised by the Da Nang People’s Committee and the Vietnamese embassy in Russia.

Vietnam, Lao boost cooperation in planting rubber

Vietnam’s southern province of Binh Duong and Laos Champasak province will step up cooperation in planting rubber trees and technical transfer to increase plantation areas in the next five years.

This is part of a nine-point agreement signed between the two provinces’ leaders on June 21 during a Vietnam visit by a high-level delegation from Champasak province, led by its Party Secretary and Governor, Sonsay Siphandone, who is also member of the Lao People’s Revolutionary Party Central Committee.

Under the deal, both sides also agreed to continue the exchange of high-ranking delegations and enhance cooperation in porcelain and construction materials production, as well as training students during the 2011-2015 period.

At the talks, participants reviewed outcomes of a project on planting 10,000 ha of rubber trees in Laos between 2006 and 2010, with 6,100 ha of rubber trees being planted across the country, of which 4,100 ha in Champasak province were maturing.

Host and guest exchanged experiences in building industrial parks and luring foreign investment.

Binh Duong invested nearly US$1 million into social welfare establishments in the Lao province, practically contributing to developing the fruitful friendship between the two localities.

The same day, the Lao delegation made a fact-finding tour of KumHo tyre manufacturing plant, My Phuoc Industrial Zone and Binh Duong New City.

Mekong delta needs to focus on rice

Bac Lieu province and other Mekong delta provinces need to maintain the rice-growing acreage, to ensure national food security and social welfare.

State President Nguyen Minh Triet issued this requirement during his working session with the Party committee and people of Bac Lieu on June 21.

He stressed the need to apply advanced technology in farming and described it as the best way to ensure sustainability in agricultural production and create conditions for farmers to increase their income.

Besides, he urged Bac Lieu province not to develop industry at any cost, saying that to develop the industry, the province needs to consider its areas of strength in labour, land and human resources.

Bac Lieu should focus on tertiary training units in the province to provide skilled human resources for plants and enterprises in the coming time, he suggested.

The President emphasised social welfare for all local residents, particularly the implementation of the Party and State’s policies to those who rendered services to the nation and their families. The province should consider it a consistent guideline and a responsibility of the entire society for them, he said.

Hanoi attracts US$875 million FDI in six months

Hanoi lured US$875.1 million foreign direct investment (FDI) capital in the first half of this year, up 6.7 times compared to the same period last year, according to the Hanoi Statistics Office (HSO).

The capital comes from 140 FDI projects, including 107 new projects with registered capital of US$414.4 million and 33 old ones with additional capital of US$460.7 million.

The HSO said that in the reviewed period development and investment capital reached VND77.154 trillion, up 12.6 percent over the same period last year.

HSO Head Cong Xuan Mui said since the first quarter of this year Hanoi has conducted strict supervision to cut and expand many public investment projects. The capital city has increased funding for technical infrastructure, social and civil projects aimed at building houses for workers at industrial zones, students and low-income people in urban areas.

It has also accelerated the implementation of some waste treatment projects to improve the environment around the city.

HCM City ad agency wins world contest

A team from HCM City-based advertising agency G2/Grey Group has created history by becoming the first from Viet Nam to win the global issue cover design competition held by US magazine Ad Age.

Creative planner Nguyen Tuong Luan, art director Nguyen An Hoa, and copywriter Do Duy Thien now go to the renowned Cannes Lions International Festival of Creativity this year.

Ad Age, a global magazine providing news, trends, data, and analyses for the marketing and media communities, had called for ideas and designs for their global cover issue.

Entries had to convey the topic of Ad Age's Global Issue published each June focusing on the international advertising and marketing scene, multinational marketers and their strategies, and how brands connect with consumers in regions around the world.

G2/Grey Group, a global ad agency, said after hours of brainstorming in the office, the three had still been stuck for an idea and decided to go out on the street for change at 11pm one night when they chanced upon a stained-glass façade of a cathedral with its multiple colours dancing through a prism.

It sparked off a chain of visuals, and "the kaleidoscope" was born.

Luan explained the concept: "The patterns in a kaleidoscope are multiple and diverse and the chance of seeing the same [again] is very small.

"Our world is the same; each individual is different. But we observed that individuals while differing by outlook, aspirations, values and cultures, share a special affinity and common ground with others via brands.

Malaysia seeks to woo more Vietnamese travelers

Tourism Malaysia on Tuesday held a travel mart titled Make It Malaysia in the capital city Kuala Lumpur as part of the country’s effort to woo more travelers from within the ASEAN region, especially Vietnam.

The event, which attracted over 100 travel and hospitality representatives of six nations in Southeast Asia including Vietnam, was the last program after week-long activities in Kuala Lumpur, Sabah, Sarawak, Penang, Langkawi and Melaka. The trip for these representatives was made at the invitation of Tourism Malaysia and its national air carrier Malaysia Airlines, with an aim to promote new destinations.

Mohd Akbal Setia, director of Tourism Malaysia’s office in Vietnam, said that besides familiar shopping packages, his country wanted to promote golf courses, islands and beaches for newly-weds and incentive travel to Vietnamese tourists.

“Malaysia has around 200 golf courses but the cost of a round is cheaper than in Vietnam, while many young couples love islands and beaches for their honeymoons and MICE (Meetings, Incentives, Conferences, and Exhibitions) tourists from Vietnam are a potential market to Malaysia,” Setia added.

Last year, 123,000 Vietnamese tourists visited Malaysia, while arrivals from Malaysia to Vietnam ranked eighth in the top ten tourism markets to Vietnam, according to Tourism Malaysia’s office in Vietnam.

Luong Duy Khiem, sales manager of Hanoi-based ANZ Travel, told the Daily on the sidelines of the travel mart that in spite of the economic downturn, the travel demands of Vietnamese and Asian people are rising.

“They want to come to Southeast Asian countries for their vacation because of similar culture, short-haul flights and cheap airfares,” he said.

Vietnam’s tour operators had networking opportunities as well as the chance to promote Vietnam’s tourism to other regional countries at the travel mart.

During a three-day trip Vietnam-based travel firms experienced an island and sea tour in Sabah, located on the northern portion of the island of Borneo.

Khiem said his company would consider opening new tours for more Vietnamese tourists to visit Sabah.

“In the future we will focus on high-end tourists who want to play golf in foreign countries as well as enjoy a relaxing break,” he said.
 
Consortium to buy up surplus rice
 
The Viet Nam Food Association (VFA) plans to purchase 1 million tonnes of summer-autumn rice between July 15 and August 30, but enterprises are concerned over a lack of capital for purchasing activities.

The association's 80 member enterprises will purchase 1 million tonnes for temporary stock in order to maintain the price of rice at VND5,500-6,000 per kilo and ensure farmers are making a profit.

The price of rice had started to fall in the Cuu Long (Mekong) Delta provinces of Dong Thap, Tien Giang and An Giang, said the association.

Duong Nghia Quoc, director of the Dong Thap Department of Agriculture and Rural Development, said the VFA's plan was a good sign for farmers, but a lack of capital would affect purchasing activities and exports.

"High interest loans will affect purchasing activities because exporters are reluctant to take them out at the moment," said Cao Thi Ngoc Hoa, deputy general director of the Southern Food Corporation.

"Only those that have already signed export contracts will purchase now," Hoa said.

"If enterprises are still waiting to sign export contracts, they will be forced to take out high interest loans with interest rates of up to 20 per cent in order to purchase rice for future export," said Tran Van Hung, deputy director of a rice exporter in the southern province of Dong Thap.

High interest loans would also affect investment in warehouses and drying facilities that were needed to increase the value of rice in line with new Government standards for rice exporters that become effective on October 1, she said.

Only the An Giang Import Export Joint Stock Company (Angimex) has reached the standards necessary to be awarded a certificate by the Ministry of Industry and Trade under Decree 109 on trading and exporting rice.

"It is true that rice trading and exporting enterprises have lacked capital to trade and export rice, or build warehouses and drying facilities, but they should still meet the regulations outlined in Decree 109 to ensure a transparent rice export market in Viet Nam," said Cao Van Hoa, deputy director of the Tien Giang Department of Agriculture and Rural Development.

According to the VFA, Viet Nam expected to export 3.9 million tonnes of rice in the first half of this year.

Nghi Son steel maker cooperates with Tenova, Danieli

Nghi Son Cast Iron and Steel Joint Stock Co. on Saturday inked a deal with two Italian groups Tenova and Danieli to supply equipment for its steel mill in Thanh Hoa Province.

Under the agreement, Tenova will provide the plant with Constell technology to help reduce refining time and cut energy by 20%. Meanwhile, Danieli Group provides a refining furnace to speed up automation and stability for the production line.

Nguyen Bao Giang, chairman and general director of Nghi Son Co., said the plant has the total investment of VND3 trillion. The project has a refining furnace and a deep-water port with the capacity of two million tons each year.

The project is expected to start operating in the second quarter of 2013.
 
Vietnam to sign FTA with Chile in end-2011

Vietnam and Chile are expected to sign a bilateral free trade agreement (FTA) in November this year as negotiations have concluded in a meeting in Hanoi last week, said an official of Ministry of Industry and Trade.

Nguyen Duy Khien, head of the American Market Department under the ministry, said on Tuesday that the eighth round of negotiations took place in Hanoi on June 16-18, discussing many issues included in the free trade agreement. It is expected that the agreement will be signed on the sidelines of 19th APEC summit in Honolulu, Hawaii in November, 2011.

Khien told the Daily via the phone on Tuesday that the two sides initialed the agreement after the talks. He declined to give further details about the agreement.

The FTA is expected to boost trade and co-operation between the two countries.

According to Vietnam’s trade office in Chile, Vietnam last year exported US$104 million worth of goods to the South American country and imported US$215 million. In the first half of this year, Chilean imports from Vietnam are estimated at US$51 million.  

Vietnam mainly ships to Chile consumer products, such as footwear, textile and garments, plastic products, furniture, coffee and frozen fishes. Meanwhile, the ASEAN country imports materials, such as copper, wood, pulp, iron and steel.

In addition, Chilean wine is also penetrating the Vietnamese market.
 
More Japan tourists to go to HCMC on chartered flights

HCMC-based Vietravel and APEX Vietnam Co., LTD have said chartered flights will take hundreds of Japanese tourists to HCMC, the major groups to the city since an earthquake and tsunami hit northeastern Japan in March.

Bui Nguyen Tam Dang, head of the Inbound Department of Vietravel, told the Daily on Tuesday that three groups consisting of 650 guests would come to the city next month. They will be in neighboring Cambodia first before flying to HCMC for a three-day visit to the city and the neighboring Mekong Delta province of Tien Giang.

The market, Dang said, is recovering better than expected as tour bookings by Japanese guests have been on the rise since the disaster. The bookings for up to October are equivalent to 70-80% of the total number in the same period last year.

At the company, Japanese tourist numbers were down by over 40% shortly after the disaster. Then it forecast the market would need two to three years to recover. “Now we think it’ll take just one year,” he said.

Nguyen Van Tran, general director of APEX Vietnam Co., LTD said the company would receive two groups of Japanese guests to the city on chartered flights, with each having 150 to 160 people.

“The first group will arrive this month. We are in talks with partners to arrange tours for other groups, so there will be more chartered flights,” he said.

He, however, said the rise in bookings by Japanese travelers was not enough to match the figure recorded in the year-ago period. “The market is recovering but can’t reach the same level of last year,” Tran said.

According to a report of the HCMC Department of Culture, Sports and Tourism, despite the earthquake and tsunami disaster, Japanese visitors to HCMC in the first six months of this year would increase 19% year-on-year. Japan is still one of the top 10 source markets for the city’s tourism sector.

The Ministry of Culture, Sports and Tourism said the ministry was taking measures to bring Japanese tourists back to Vietnam.

The ministry will organize a culture and tourism festival in Japan in September and a big concert in Vietnam in October featuring performances by famous Japanese music bands.

The ministry expects around 2,500 fans from Japan will fly here for the event.
 
Group urges sugar price stabilisation

The re-import of sugar is necessary in order to stabilise prices in the domestic market, according to a proposal by the Viet Nam Sugarcane Association sent to the Ministries of Agriculture and Rural Development as well as Industry and Trade.

The proposal is based on current market demand and supply and not on official demand, the association's General Secretary, Nguyen Hai, explained.

According to association statistics, the country's total stockpile of sugar came to only 500,000 tonnes by the middle of last month, the current figure being much lower due to exports to China.

Hai confirmed that from April to the end of last month, around 70,000-80,000 tonnes of sugar had been exported to China, both legally and illegally.

Export was set to increase to 100,000 tonnes which a small market like Viet Nam would struggle to deal with as prices were pushed up, he added.

In Ha Noi and some northern provinces, wholesale sugar prices have increased by VND1 million (US$50) per tonne to around VND19.5 million ($950) per tonne.

Previously, due to falling prices and oversupply, the association called on the Ministry of Industry and Trade to extend the final date for import quotas past December 7, thanks to which the market has been sufficiently warmed up.