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Home  Vietnam Daily Brief Vietnam Brief, 2010 Feb 27 |
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Vietnam Brief, 2010 Feb 27 |
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Saturday, 27 February 2010 |
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Vietnam regards India strategic partner, says NA leader
New Delhi (VNA) – Vietnam always considers India a strategic partner and an indispensable part of the world’s current development as the country has actively participated in regional and international forums, said a Vietnamese leader.
National Assembly Chairman
Nguyen Phu Trong made these remarks in an interview granted to India ’s
Express newspaper during his ongoing visit to India as a guest of the
House of the People (the Lok Sabha) Speaker Meira Kumar.
Asked about India ’s role
in Vietnam ’s foreign policy, Trong said Vietnam and India have a
time-honoured f riendship, that has its roots in age-old culture and
trade ties.
In modern history,
President Ho Chi Minh and Indian Prime Minister Jawaharlal Nehru laid a
firm foundation for the relations that have now grown into a
comprehensive cooperative and strategic partnership, he said.
Regarding Vietnam ’s
experience in shifting its centralised economy to a market economy,
Trong said Vietnam has built a socialist-oriented market economy, which
operates in line with the rules of the market economy while following
the socialist orientation.
This means that economic
growth must go hand in hand with addressing social issues to ensure
social equality and narrow the gap between the rich and the poor, the
lawmaker elaborated.
He explained that Vietnam
’s market economy is neither a free market economy nor a socialist
market economy as the country is in a transitional period.
Vietnam has to deal
carefully with issues related to supply and demand and State policies
and strategies, the relationship between economic growth and social
progress, the preservation of national cultural identity amid
international integration, and environmental protection. By doing so,
Vietnam will be able to ensure sustainable development and the
socialist orientation.
Vietnam has reaped initial
results, particularly in ensuring social policies and reducing the
number of poor households to under 10 percent from 48 percent
previously, which can be said to be the success of the country’s
renewal process over the past 20 years. Vietnam has shed its
underdeveloped status and greatly improved the people’s living
standards.
After being closed for many
years, Vietnam has opened its doors to nations around the world.
Vietnam has to date established diplomatic ties with 177 countries and
relations with 224 economic and trade organisations. The country’s
status in the international arena is increasingly rapidly.
In reply to the question
that whether it is time now for Vietnam to have a multiparty system,
Trong said Vietnam ’s policy is economic development should go along
with step-by-step and firm reform of the political system. “It is our
experience that economic reforms should synchronise with the renovation
of the political system,” he said.
According to Trong, a
socialist-oriented market economy requires a corresponding political
system. Vietnam is now in the renewal process and has to well deal with
the tripartite relationship between renewal, stability and development,
of which stability is the prerequisite, renewal provides the driving
force and development is the target.
He went on to say that in
Vietnam there is political and social stability and the citizens are
the real masters of the country. The National Assembly operates
democratically. Mass organisations are monitoring the society and the
country is developing strongly. “Seen from the real situations in the
country, we think the one-Party system is the most effective way,”
Trong said.
“I do not think that the
more parties there are the more democratic a country is. Different
countries have different histories and situations. The most important
thing is whether society improves, whether citizens have prosperous and
happy lives, and whether the country is stable to facilitate
development,” the chairman said.
“I do not think that the
market economy must have a multiparty system and in Vietnam , such a
system is not necessary,” Trong stressed.
As part of his visit, NA
Chairman Trong on February 26 visited Bodh Gaya in the state of Bihar
and Bangalore in Karnataka sate – an IT and software industry centre of
India.-Enditem
Demand for urban retail space likely to skyrocket
Hanoi (VNA) -- Demand for
retail space in Vietnam 's large cities is expected to soar in 2010
after the country officially opened the door to international retailers
and agreed to abide by WTO commitments.
More international
retailers, brands and franchises would be present in Vietnam this year,
said CB Richard Ellis Co Vietnam (CBRE), a real estate consulting firm.
In recent months, international brands have scrambled to secure scarce
retail space in downtown commercial centres while restaurant chains are
being opened on major streets nationwide.
International consulting
group AT Kearney said that Vietnam 's sixth position in worldwide trade
growth last year had placed the country on the map as an attractive
destination for international distributors.
A preference among
consumers to shop at modern shopping centres rather than traditional
markets was another factor contributing to demand.
The CBRE said average
occupancy rates in HCM City and Hanoi 's retail spaces now stood at 95
and 83 per cent, respectively. With the rising demand for retail space,
prices have been forecast to continue climbing in 2010.
Average rental prices for
retail space in Hanoi and HCM City currently stand between 60 USD and
100 per square metre per month. In central business districts, rents
have even risen to 250 USD per square metre per month.
In HCM City 's Vincom
Centre, rents now average 200 USD per square metre per month and 80 per
cent of available retail space has already been leased, even though the
centre is not due to open until the end of April.
According to Savills
Vietnam , a real estate consulting firm, Hanoi 's retail space will
grow to reach 1 million square metre over the next two years, more than
double its current supply. The projected growth has been attributed to
completion of major projects such as the Hang Da, Mo and Nga Tu So
markets, and the Grand Plaza and Sky City Tower .
Meanwhile in HCM City a
further 740,000sq.m of retail space will be developed over the next
three years, doubling current supply.-Enditem
Mekong Delta takes action against salt water intrusion
HCM City (VNA) -- Provinces
in the Mekong Delta are strengthening measures to mitigate salt water
intrusion as the region faces severe drought this dry season, according
to local officials.
Many residents in the region are already struggling with a lack of fresh water for daily use and for irrigation purposes.
Saline water with a salt
content of 0.4 percent and above, which can damage crops, has entered
30km inland in Tien Giang, Ben Tre, Tra Vinh, Soc Trang, Ca Mau, Kien
Giang and Hau Giang provinces, according to the Southern Institute of
Water Resources Research.
The drought had caused
deeper encroachment by salt water via river mouths as water levels in
the Delta's rivers fell rapidly, said the institute.
Nguyen Thien Phap, head of
Tien Giang's Sub-department of Irrigation, said salt water had
encroached 30-35km inland in the province, threatening 6,000ha of
winter-spring rice crop in Go Cong District.
The province has closed it Vam Giong sluice gates early in order to protect the crop.
In Ca Mau province, the
provincial People's Committee is mobilising local residents to build
more than 40 dykes to protect crops.
Nguyen Van Khang, deputy
chairman of the Tien Giang People's Committee and director of the
provincial Department of Agriculture and Rural Development, said his
department was looking at ways to restructure crop cultivation schedule
to avoid damage caused by salt water.
Meanwhile, agriculture
officials in Ben Tre province have instructed farmers in coastal
districts not to use river water to irrigate their crops during high
tide because of the high salinity.
Salt water can encroach on
more than 60km inland in Ben Tre province during peak drought periods
in April and May, the provincial Hydro-Meteorological Bureau has
warned.
In fact, salt water
intrusion will worsen all over the delta during peak drought times,
according to the Central Hydro-Meteorological Bureau.
Phan Van Khong, director of
the Ben Tre Agriculture and Aquaculture Extension Centre, said in
addition damaging crops, salt water intrusion also had its good side as
it was beneficial to shrimp and oyster breeding as well as salt
production.
There was a need to
strictly monitor the situation of salt water intrusion and carefully
research measures to prevent its impacts and exploit its benefits,
Khong said.
It is necessary for the
Delta provinces to redesign cultivation schedules of crops and
aquaculture for suitable with the annual intrusion of salt water to
mitigate its damage and exploit its benefits, according to experts.
Dam Hoa Binh, deputy head
of the Ministry of Agriculture and Rural Development's Irrigation
Department, said his department would next week inspect the situation
of salt water intrusion in every Delta province in order to come up
with measures for reduce its impacts.
The ministry's Cultivation
Department has also warned Delta's provinces to close sluice gates to
prevent further salt water intrusion, and to preserve fresh water in
reservoirs and canals for farming. Salt water intrusion will affect
about 800,000ha of rice in the Delta in March when the plants need a
lot of water
Viettel conquers Cambodia's mobile market
Hanoi (VNA) -- Viettel
Cambodia , a subsidiary of Vietnam 's military-run telecom service
provider, now owns 42 per cent of the base transceiver stations (BTS)
and 88 per cent the optic-fibre cable in Cambodia .
In terms of subscribers, it now holds the second place just six months after becoming operational.
The telecom provider aims
to obtain a turnover of 250 million USD this year. It also plans to
have 3,000 BTS for 2G services and 1,500 BTS for its 3G network. It is
also looking to increase its optic-fibre cable network to between
15,000 and 16,000 kilometres.
Viettel said it was looking
to have a 46 per cent share of the fixed-line subscriber market, and 90
per cent of the mobile phone and ADSL markets.
The group is now the leading Vietnamese investor in foreign countries.
This year, it plans to invest in Bangladesh , while expanding its market share in other foreign countries.
The group said its targeted
turnover this year was 75 trillion VND to 78 trillion VND (4-4.2
billion USD), an increase of 60 per cent to 70 per cent against last
year.
In the domestic market, its
BTS and optic-fibre cable infrastructure has increased by 50 per cent.
It has 26,000 stations for 2G and 3G services and 90,000 kilometres of
cable.
The telecom provider plans to have 7,000 operational BTS for 3G services in Vietnam .
Viettel deputy general
director Nguyen Manh Hung said the group would be responsible for
designing its products, while they would be assembled in mainland China
or Taiwan .
Hung said his company
decided to invest in producing made-in-Vietnam mobile phone products to
meet the demand of Vietnam 's 40 million subscribers. It is anticipated
that there will be 50 million subscribers by the end of this year.-
Renewables to supply 5 percent of nation’s energy
HCM City (VNA) – Vietnam
can generate 2,400 MW per year from renewable sources by 2020, or 5
percent of the total electricity production in the country, experts
have said.
However, this will need significant start-up capital assistance from the Government, they add.
“The percentage of
electricity generated from renewable energy sources will depend on the
funds made available from the State budget for this sector,” said Le
Tuan Phong, deputy director of the Ministry of Industrial and Trade’s
Energy Department.
Phong, who heads the
ministry’s renewable energy committee, said the sector would focus on
developing small-scale hydro-power plants, wind and solar energy, as
well as biogas projects.
The ministry had submitted
to the Government a master plan for the development of renewable
energy, including strategies, incentive policies and regulations to
encourage the development of this sector, he said.
Vu Dinh Tuan, CEO of the
German-Vietnamese Fuhrlaender Vietnam Wind Power Joint Stock Company,
said the incentive policies for businesses investing in clean energy
were not focused or detailed enough, and had been applied differently
in various localities.
He said there was high potential for developing wind energy in Vietnam , “but this sector requires much more capital.”
The American True Wind
Solution Organisation has said that Vietnam has the highest potential
for generating wind energy among Laos , Cambodia and Thailand .
Tuan said the Government
should create favourable conditions for the renewable energy to
develop, including rapid approval of land grants, pricing policies for
alternate energy and permission for different sectors to get involved.
While there are several
wind energy projects in the pipeline in the provinces of Binh Dinh, Lam
Dong, Ninh Thuan, only the last-mentioned has come up with detailed
development plans.
The Fuhrlaender Vietnam
Company is planning to build a 25 million USD factory for installing
wind power turbines, which has already been approved by Binh Thuan
authorities.-Enditem
Hanoi (VNA) – Significant
buys in the final minutes of February 26’s session on the Ho Chi Minh
Stock Exchange helped the VN-Index manage a gain of 0.39 percent on the
day to close at 496.91 points.
Trading value and volume
began to suggest a recovery from the doldrums surrounding the Tet
(lunar New Year) holiday, with activity totalling 1.5 trillion VND
(78.9 million USD) on a volume of 34.9 million shares.
The announcement by the
Ministry of Finance on Feb. 26 that electricity rates would rise 6.8
percent on March 1 helped make Vinh Son-Song Huynh Hydro-power (VSH)
the most-active share, with 2.3 million traded during the session.
“When electricity rates go
up, power plants will benefit, and it would be lucrative to start
investing in them now,” said Nguyen Thanh Huyen, an investor with
VPBank Securities Co.
On the Hanoi Stock
Exchange, the HNX-Index closed largely unchanged at 162.43, while the
value of trades remained modest at 438.3 billion VND (23 million USD)
on a volume of 13.9 million shares.
Kim Long Securities Co (KLS) continued as the most active share on the northern bourse, with 2.3 million changing hands.
Johan Kruimer, an analyst
at the Ho Chi Minh Stock Exchange, said that equity prices seemed to be
holding up quite well despite the reigning uncertainty, and that for
the moment it seemed that the downside risk was fairly limited.
“We mights be facing a
period of a couple of weeks which will be characterized by relatively
low volatility and consolidating prices,” he said, noting that the most
likely scenario still called for higher prices as soon as the
investment community saw “some light at the end of the consolidation
tunnel”.
Woori CBV Securities Co’s
research team concurred that a steep correction was unlikely thanks to
the steady improvement in trading volume and a repeated appearance of
high demand for shares for at least 15 minutes during each session,
helping erase other losses on the day.
Concerns remained among
investors over the rising costs facing domestic businesses, including a
rumour that the central bank might lift the cap on lending interest
rates, currently holding them at no more than 150 percent of the prime
rate.
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