Probe ordered for foreign investment in forestry and fishery

Hanoi (VNA) – An inter-ministerial mission will examine the granting of foreign investment licences for forestry and aqua culture projects throughout Vietnam and report its findings to Prime Minister Nguyen Tan Dung. 

Dung has instructed provincial People’s Committees not to issue new investment licences or sign land rent contracts with foreign investors before the mission has completed its task. 

The Planning and Investment Ministry will have responsibility for the inquiry with the support of the Agriculture and Rural Development and Natural Resources and Environment ministries and other relevant agencies. 

The mission’s brief is to examine, inspect and assess the granting and use of foreign investment licences for forestry and aqua culture. 

Foreign-invested forestry and aqua culture projects have helped create jobs and increase worker income, the PM said in the Official Letter 405/TTg-KTN. 

But several aqua cultural projects had failed to meet their approved schedule and, as a result, had their licences revoked, the PM said. 

Elsewhere, land rented to foreign investors impinged on land local farmers had been given the right to use. 

Worse, parts of natural forest or sensitive zones had also been rented. These projects too have had their licences withdrawn. 

Figures posted on the Government web site show that ten provinces have licensed foreign investors to grow forest on 305,353 ha. 

But they have so far allotted only 33,824ha- equal to 11.1 percent of the total - to foreign investors and their joint-venture partners. 

Rented land accounted for 15,664ha while land allotted to joint venture between Vietnamese organisations, households and individuals and foreign investors totalled 18,160ha.

Hotel operator plans expansion

HCM City (VNA) - Accor, the largest international hotel operator in Vietnam, announced on March 10 its strategic expansion plans including additional hotels within the Novotel, Mercure hotel brand, launching of the ibis brand and MGallery label. 

It also plans to double the number of rooms under its management by 2012. 

“Vietnam has always been considered by Accor as one of the strategic markets in Southeast Asia. With signs of both economic recovery and a re-strengthening of tourism arrivals, we’re confident and ready to selectively expand our presence throughout the country,” said Patrick Basset, vice president of operations for Vietnam, the Philippines, the Republic of Korea and Japan. 

Accor plans to expand the number of brands on offer in Vietnam to include upscale products to more economical brands. 

“The coming 12 months is sure to be an exciting period for Accor in Vietnam, with many new developments in the pipeline. Pullman Vung Tau will be the first for the brand in the country, while Hotel De L’Opera Hanoi will be the second hotel of the highly distinctive upscale MGallery label,” said Basset. 

The fourth Mercure hotel, Mercure Hado Hanoi, is scheduled to receive guests by this year’s end. 

On April 1, Le Belhamy Hoi An Resort and Spa, a 131-room resort hotel located on Ha My Beach and near Hoi An, will receive its first guests. 

Novotel Imperial Hoi An, Novotel Resort Phu Quoc and Novotel Saigon Centre are also going to be built. 

In addition, the first two ibis hotels in the country will be in HCM City, ibis Saigon and ibis Saigon South. These hotels represent the first two international economic hotels for Vietnam. 

Accor currently has 13 hotels under the Sofitel, MGallery, Novotel, and Mercure hotel brands, with 2,147 rooms in operation throughout Vietnam and more than 2,000 additional rooms committed through ongoing development. 

“Accor has confidence in Vietnam’s continued economic stability and growth, and therefore is determined to remain the largest international hotel operator in the country, with a hotel brand portfolio covering the spectrum of luxury to economy,” he added. 
Accor, a major global group and the European leader in hotels with brands including Sofited, Pullman, MGalleory, Novotel, Mercure, Suitehotel, Adagio, ibis, all seasons, Etap Hotel, Formule 1, hotelF1 and Motel 6, manages 4,100 hotels of almost 500,000 rooms in 90 countries.

Petrolimex to publicise petrol price calculator

Hanoi (VNA) – The Vietnam National Petroleum Corporation (Petrolimex) plans to announce ways the public can calculate its petrol and oil retail price, according to the corporation. 

From next week, Petrolimex’s website petrolimex.com.vn will show how to calculate the retail price based on Decree No84/ND-CP on trading petrol and oil issued last December. It will carry details about import prices, taxes, fees, commission for sales agents and costs for ports, ware-houses and tanks. 

The corporation increased petrol prices by 590 VND per litre on February 21 because the world average petrol price had increased to around 83 USD per barrel (1 barrel is 159 litres) for a month-long period. 

The corporation said the increase was reasonable and that the price rise allowed the company to make a profit of 100 VND per litre of petrol sold. 
Last week, the Government called on the ministries of Finance and Industry and Trade to monitor adjustments in petrol retail prices. The two ministries plan to change petrol-trading regulations to control inflation.

Hanoi Exchange grows to 2 bln USD in market capitalisation

Hanoi (VNA) - From its humble beginnings five years ago as the Hanoi Securities Trading Centre, the Hanoi Stock Exchange has increased from just six listed shares to a total of 266, representing current market capitalisation of 37.5 trillion VND (2 billion USD). 

The exchange director Tran Van Dung made the announcement at an anniversary ceremony on March 9, adding during its first five years of operations, the exchange has also seen 171 initial public offerings (IPOs). 

The exchange has hosted 158 bond auctions worth 41.1 trillion VND (2.2 billion USD) since they began on the exchange in 2006, holding its first auction of US dollar-denominated Government bonds last year, worth 460 million USD. 

The Hanoi market has performed far beyond expectations and lifted itself to a new level, commented Saigon Securities Inc chairman, Nguyen Duy Hung, noting that average daily trading values had increased by 220 times since the market’s inception, to 880 billion VND (46.3 million USD). 

In addition to the restructuring from a securities trading centre into a stock exchange, the Hanoi exchange has also launched dedicated bourses for bonds and unlisted public companies. 

The Hanoi exchange, along with the HCM Stock Exchange and the Vietnam Securities Depository Centre, will be further reorganised as a single-member limited liability company, pursuant to Ministry of Finance Circular No 29/2010/TT-BTC issued earlier this month. 

The regulation will enable them to raise capital from partnerships with financial institutions. 

It would also require them to release audited financial statements and maintain profitability. 
The Hanoi Stock Exchange had paid 27.2 billion VND (1.4 million USD) into the State budget since its inception, the exchange also announced on March 9.

Shares snap five-day streak

Hanoi (VNA) - The Ho Chi Minh Stock Exchange on March 10 underwent a corrective session, snapping five consecutive days of gains in the VN-Index, which closed down 0.3 percent to 525.67. 

Decliners outnumbered advancers on the day by 102-77. 

Value fell below 2.6 trillion VND (136 million USD) on a volume of 56.6 million shares, with General Forwarding (GMD) surprising the market as the most-active share of the day, with 3.4 million changing hands. 

While many financial blue chips lost value on March 10, including Vietcombank (VCB), Sacombank (STB), Eximbank (EIB), Saigon Securities Inc (SSI), and PetroVietnam Finance (PVF), property shares like Sao Mai Construction (ASM), Binh Duong Mineral and Construction (KSB), Dat Xanh Real Estate Service and Construction (DXG) all rose to their ceiling prices. 

On the Hanoi Stock Exchange, the HNX-Index also slid by 0.35 percent to end the session at 172.09 points. However, volume increased to over 38.2 million shares, worth a total of 1.28 trillion VND (67 million USD). 

Construction shares like PetroVietnam Construction (PVX) and Vinaconex (VCG) also posted gains on the northern bourse while banking shares like Asia Commercial Bank (ACB) and Sai Gon-Hanoi Commercial Bank (SHB) slumped. 

Kim Long Securities Co (KLS) remained the most heavily-traded share on the market with over 9.8 million traded. 
Foreign investors concluded the day as net buyers on the HCM City market, responsible for a net buy of just 457,000 shares worth a combined 35.3 billion VND (1.8 million USD). Meanwhile, they were net sellers on the Hanoi market with a net sale of 13.4 billion VND (701,570 USD.

Granting of salt import quotas suspended

Hanoi (VNA) – Vietnam has decided to temporally stop granting salt import quotas for enterprises amid decreases in the global and domestic salt prices. 

The decision was announced by the Ministry of Industry and Trade (MoT), the Ministry of Agriculture and Rural Development and the Ministry of Finance at a press briefing on March 9. 

This means the suspension of quota allocation for about 90,000 tonnes of salt out of this year’s quota of 260,000 tonnes. 

This is seen as a temporary solution to deal with the sharp decrease of domestic salt price. 

The world salt prices are also dropping to about 30-35 USD per tonne while salt prices in the southern and central Vietnam reduce to 350,000-1million VND (18-52 USD) per tonne and the price of industrial salt stands at 600,000-750,000 VND (31.5-39.4 USD) per tonne. 

The country’s annual salt output is expected to reach over one million tonne this year, basically meeting domestic demands. 

However, salt import will continue as part of the road map Vietnam has committed to the World Trade Organisation, according to the MoT. 

Vietnam mainly imports high-quality salt serving several processing industries. In 2009, the country imported 230,000 tonnes of salt.

Auto sales skid in February

Hanoi (VNA) - Car sales by the Vietnam Automobile Manufacturers’ Association (VAMA) members reached just 5,030 units in February, down 25 percent against the same period last year. 

VAMA said demand for SUVs (sport utility vehicles) and MPV (multi-purpose vehicles) declined sharply in the month. 

The association said domestic carmakers sold just 1,167 SUVs/MPVs and 1,612 commercial vehicles in February, a drop of 47 percent and 53 percent, respectively, against the same period last year. 

In February, Truong Hai performed best in terms of sales, down just 9 percent against the previous month. 

Toyota, meanwhile, saw sales fall by 18 percent against the previous month, while GM Daewoo’s sales declined 20 percent and Vinaxuki’s, 25 percent. 

Touring cars were the biggest sellers, with 1,615 units sold, a 57 percent increase over the same period last year. 

Among the best-selling models were the Camry, Vios, Corolla Altis, GM Daewoo Lacetti and the Kia Cerato. 

In the first two months of the year, total car sales reached 11,355 units, an increase of nearly 8 percent over the same period last year. 

Meanwhile, 5,900 cars were imported in the first two months of the year, worth 94 million USD, according to the General Statistics Office.

 
The GSO said it expects car imports to decline next month.

Nuclear energy to hold remarkable proportion in Vietnam

Paris (VNA) – Nuclear energy is expected to account for a remarkable proportion in Vietnam ’s power generation in the future, according to Minister of Science and Technology Hoang Van Phong. 

In an interview granted to a Vietnam News Agency correspondent on the sidelines of the International Conference on Access to Civil Nuclear Energy held in Paris from March 8-9, Minister Phong said that the application and development of atomic energy for peaceful purposes is one of the country’s socio-economic development objectives in the next decades. 

“Nuclear power plants will contribute considerably to the country’s annual electricity output, helping meet demands for production and daily activities as well as ensure the sustainable development of the national economy during the process of industrialisation and modernisation,” he said. 

Developing nuclear energy will create a favourable environment for the development of many other industries, including those requiring high scientific and technical standards, he added. 

According to Minister Phong, in January 2006, the Prime Minister approved the Strategy on Atomic Energy Application for Peaceful Purposes by 2020. The National Assembly also passed the Atomic Energy Law in June 2007 and approved a policy to build nuclear power plants in the country in November 2009. 

The Vietnamese government is focusing on building a full and consistent system of legal documents that meets international standards for the nuclear energy sector, including specific plans for each agency and each area as well as human resource training schemes, he said. 

The government is also speeding up education work to raise the awareness of people and the whole society of the importance of nuclear power plants as well as possible risks. 

Vietnam ’s first nuclear power plant is expected to be put into operation in 2020.

Vietnam, UK to spur multifaceted cooperation

London (VNA) - Vietnam and the UK have signed joint statements on the establishment of an international standard state university in Vietnam and enhancement of cooperation in developing public-private partnerships. 

Deputy Prime Minister and Minister of Education and Training Nguyen Thien Nhan reached agreement on a UK-Vietnam state university during his talks with UK First Secretary of State for Business, Innovation and Skills Lord Peter Mandelson on March 9. The two sides also agreed on the possible choice of Da Nang University for the plan. 

The officials informed each other of the situation in their respective countries and discussed directions and specific measures to strengthen bilateral ties in the years to come, focusing on education, training, economy, trade, investment and development cooperation. 

They lauded the results in education and training, considering it an important and potential cooperation field. The UK side pledged to create favourable conditions for Vietnamese students to study in the European country. 

Mandelson affirmed the UK ’s support for the Vietnamese government in its pursuit of internationalisation of tertiary education and applauded the co-hosting of a high-level conference on this matter in October 2009 by the Vietnamese Ministry of Education and Training and the British Council in Vietnam . 

Both Nhan and Mandelson emphasised the need to foster economic, trade and investment relations, promising better conditions for businesses from the two countries to beef up their linkages. 

Nhan said Vietnam will continue to speed up economic reforms and strictly implement its commitments to the World Trade Organisation (WTO). 

Vietnam will create good conditions for UK companies to make long-term and effective investments in the country, especially in the areas where they hold strengths such as oil and gas, finance, banking, telecoms and plane engines, he stressed. 

In return, the UK vowed to facilitate the flow of Vietnamese goods into the UK and the European market. The UK confirmed its backing for Vietnam ’s efforts to boost comprehensive cooperation with the European Union (EU), as well as for the recognition of Vietnam ’s market economy. 

Regarding public-private partnerships (PPP), Vietnam and the UK agreed to cooperate with other partners, including the World Bank, in making policies and developing PPP models which are suitable for Vietnam’s needs. 

Nhan held a meeting with Secretary of State for Energy and Climate Change Ed Miliband, during which the deputy PM asked for the UK support of Vietnam ’s endeavours to realise its national target programme on climate change through exchanging information and helping with capacity enhancement and assessment of clean technology demand. 

During his three-day visit, Deputy PM Nhan also met with Chairman of the House of Commons Foreign Affairs Select Committee Mike Gapes, Under-Secretary of State for International Development Mike Foster and the UK-Vietnam Parliamentarians’ League. 

The UK is now the EU’s biggest provider of non-refundable aid for Vietnam with around 50 million GBP a year during the 2006-2010 period. It is also the first bilateral donor in the world to sign official development assistance (ODA) commitments for Vietnam until 2015. 

At these meetings, the deputy PM said the UK ’s ODA capital has been used effectively in Vietnam ’s prioritised fields, including hunger eradication, poverty reduction, health care, education and administrative reform, thereby helping the country accomplish many of the UN Millennium Development Goals. 

On March 10, Nhan and his entourage visited the place where Uncle Ho worked and lived in London in early 20 th century. 

The deputy PM also met with Chief Executive Michael Gerrard and Project Director Edward Farquharson of the Partnerships UK and General Director of the British Council Martin Davidson. 

He also worked with leaders of leading universities and major economic groups such as Rolls Royce, visited the Embassy of Vietnam and met with Vietnamese students who are studying in the European country.