Vietnam opens consulate general in Houston

Prominent at the ceremony were Deputy Foreign Minister Ho Xuan Son, Vietnamese Ambassador to the US Le Cong Phung, Vietnamese Consul General in Houston Le Dung, and Betty H. McCutchan - representative of the US Department of State in Texas as well as Houston officials. 

The opening of the consulate general in Texas is expected to further foster Vietnam ’s economic, trade, investment, cultural and educational relations with the US in general and with Texas in particular. 

The office would also create a direct link between overseas Vietnamese in the US and their homeland as well as facilitate the settlement of issues related to Vietnamese citizens in the state. 

Speaking at the ceremony, Vietnamese Deputy Foreign Minister Ho Xuan Son said the opening of the consulate general in Houston city marked an important event in Vietnam-US relations, at a time when the two nations are celebrating the 15th anniversary of their diplomatic ties. 

Only a few months after the office started operations in the city, Vietnam and Texas have seen their understanding and multi-faceted cooperation much improved, while companies and businesspeople from Houston can now get easier access to information regarding their potential partners in Vietnam, Son said. 

The consulate general has made it easier for the overseas Vietnamese community in Texas and its neighbouring states in dealing with consular issues such as the grant of passports and visas. 

Many students from Vietnam who are now attending universities and colleges around Texas said they now feel they have a “home” at the consulate general office, the deputy minister added. 

For her part, Betty H. McCutchan said the US is happy to be marking 15 years of diplomatic ties this year with the opening of the new consulate general, and that it expects stronger relations between the two nations. 

Consul General Le Dung said Texas -- one of the largest states in the US -- is a big training centre and holds a wide range of potentials for cooperation with Vietnam . Texas is also home to a large community of Vietnamese-American, estimated at 450,000 people. 

In addition to consular issues, the consulate general will give top priority to promoting cooperative relations between Vietnam and Texas , and the US as a whole, he stressed. 

On this occasion, the consulate general introduced Vietnam ’s potentials and its investment environment, and called upon US investors to explore business opportunities in the Southeast Asian country.

Fishermen leave houseboats to live on land

Hanoi (VNA) – More than 500 households who lived on house boats around central Hue City have stepped ashore to live on dry land as part of a Government-backed resettlement project. 

Nguyen Cu from Lai Tan village said that moving ashore had been a dream of many generations of fishing villagers for years: “It is difficult for villagers to make ends meet, not to mention the prospect of house ownership,” he said. 

The Thua Thien-Hue provincial authorities had previously tried to entice villagers to move ashore two times, but had failed both times due to lack of research and long-term planning, according to Nguyen Van Cuong from the provincial People’s Council. 

He said, people had returned to their ships because they lacked work opportunities after resettling. 

But this time a comprehensive resettlement programme, covering poverty reduction, vocational training and job creation, had been planned to move all fishing villagers ashore. 

Ho Xuan Man, provincial Party Committee Secretary, said the lesson from earlier resettlement was that resettlement zones must be located close to rivers so residents could continue earning a living as they traditionally had from fishing. 

Since the programme started in 2008, 555 households have moved into three resettlement zones. Under the programme, villagers are provided with a choice between 15 million VND (780 USD) toward the construction of house on free land provided by the government or the purchase of an apartment valued at 150 million VND (7,800 USD). 

A concessional payment scheme allows villagers o repay their debts for apartment over 10 years. 

But for big families, coming ashore is still a hard move to make as allocated spaces cannot always accommodate ever family members. 

Nguyen Van Sim from Lai Tan village, for example, shares a resettlement area with 26 family members. But even after gaining permission to buy another land lot, the total living space was sill too small for Sim’s family: three couples and their children. 

The resettlement rules specify that households with 12 people or less will be provided with 81sq.m of land, and those with 13 people or more with 118sq.m. Families deemed to be unusually large are permitted to buy an extra land lot at a subsidised price. 

Hue City ’s Construction Works Management Board has proposed to allow households with between 10 to 14 members to buy extra land or an apartment at a discount price to deal with overcrowding, said Nguyen Dinh Cang, director of the board. 

All 1,090 fishing households in Hue City are expected to move ashore by October this year.

Meeting marks Thua Thien-Hue’s 35th liberation day

Thua Thien Hue (VNA) - The central province of Thua Thien-Hue organised a solemn meeting on March 26 to celebrate 35 years of its liberation. 

Minister of National Defence Phung Quang Thanh, National Assembly Vice Chairman Uong Chu Luu, Deputy Prime Minister Hoang Trung Hai, and the former Party General Secretary, Le Kha Phieu joined more than 10,000 local officials, soldiers and people at the event. 

Addressing the ceremony, Chairman of the provincial People’s Committee Nguyen Ngoc Thien said Thua Thien-Hue was one of the South’s pioneers in the resistance war against US aggressors. 

During the struggle for national independence and reunification, the province saw more than 18,000 combatants lay down their lives, 11,000 others suffer from injuries, over 6,000 officials and Party members imprisoned and tens of thousands of people killed, Thien said. 

Thirty-five years after its liberation, Thua Thien-Hue has recorded rapid and comprehensive economic growth, he said, citing its budget collection of 2.7 trillion VND and per capita GDP of over 1,000 USD in 2009. 

Thua Thien-Hue is now striving to become a centrally-run city within the next few years, the chairman stressed. 

On behalf of Party and State leaders, Minister Thanh praised contributions made by Thua Thien-Hue’s Party organisation, soldiers and people in the anti-US resistance war. 

The minister urged the province to uphold the tradition of solidarity to reap greater achievements in economy, security and national defence, making it an economic, cultural, educational and health centre of the whole country.

Street kid training centre lands in HCM City

HCM City (VNA) – KOTO Saigon Training Centre, which serves street and disadvantaged youth from the central and southern provinces, has opened in HCM City. 

Attending the opening ceremony on March 23 in District 7 were Graeme Swift, the consul general of Australia, and representatives of the HCM City administration and the local business and non-government communities. 

KOTO (Know One, Teach One) is a non-profit hospitality training organisation that has trained over 300 street and disadvantaged Vietnamese youth in Hanoi over the past 10 years.

Call to stamp out footpath vendors received with caution

Hanoi (VNA) – Whether Hanoi should stamp out footpath vendors and street markets and expand supermarkets topped the agenda at a Public Service conference in Hanoi this week. 

Many conference delegates said supermarkets play an important role in urban life, but if small markets are stamped out, other temporary markets will spring up, making it difficult for authorities to keep control. 

This was not to mention the number of people whose livelihood depend on selling produce at such markets. 

Under a plan to upgrade and develop the city’s market system until 2020, Hanoi would have 489 markets, 162 commercial centres and 178 supermarkets. 

Participants also argued that footpaths in Hanoi have gradually lost their function for pedestrians. They are now used foe business purposes such as extensions to shop showrooms and food stalls and for street vendors, parking motorbikes or repair services, they said. 

Professor Ton Gia Huyen fron the Vietnam Land Science Association said the city’s development is outstripping its management. 

Huyen said the city People’s Committee’s decision to allow traders to use footpaths wider than 3m to do their business from September 2007 had created open slather with more than 2 million metres of footpath under districts’ management. 

However, head of the Ministry of Construction’s urban development management department’s planning office Tran Lan Anh said many countries permit multiple uses for footpaths, just that they needed to be kept under strict control to ensure order and security.

VN blasts Israeli resettlement plan

Hanoi (VNA) – Vietnam is worried about the rising tension in the Middle East and condemns Israel for its decision to build new resettlement areas in East Jerusalem , said Ministry of Foreign Affair’s spokeswoman Nguyen Phuong Nga on March 25. 

In response to a question about Vietnam ’s reaction to recent developments in the Middle East, Nga said: “ Vietnam supports the statement released on March 19 by the Middle East Quartet ( United States , Russia , European Union and United Nations) and calls for restraint from the concerned parties.” 

She said that Vietnam also calls on both sides to avoid unilateral action that might aggravate the situation in order to create conditions for the resumption of the peace process in the Middle East.

Japanese businesses support poor patients

Hanoi (VNA) – The Japanese Business Association in cooperation with Ho Chi Minh City Poor Patient Sponsor Association has donated 800 million VND for poor patients. 

The money, which was collected through charitable fairs in HCM City, was handed over to Children’s Hospital 2, Odonto-Maxillo-Facial Hospital, and the Orthopedics Hospital on March 25. 

It will be used to fund checks-up and treatment for poor patients. 

Vietnam’s business environment becomes more friendly

Tokyo (VNA) – Business environment in Vietnam has been becoming more friendly, affirmed Chairman and CEO of the Japan External Trade Promotion Organisation (JETRO) Yasuo Hayashi. 

Talking to a Vietnam News Agency correspondent in Tokyo on the occasion of JETRO’s announcement of its report on Japanese businesses’ overseas activities in the 2009 fiscal year, Hayashi stressed that more and more Japanese enterprises pay attention to Vietnam when they expand their operations overseas. 

According to a JETRO survey, Vietnam leaped up one rank from the previous fiscal year to stand at sixth among the economies Japanese businesses want to expand their sale activities in the next three years. It also jumped two places to stand at fifth among the markets where Japanese partners wants to expand research and development (R&D) activities. 

It now stands third in the list of the economies where Japanese companies want to expand their production and ranks ninth among the markets where the Japanese business circle want to expand distribution activities. 

The survey, conducted from November to December 2009 on 3,110 Japanese businesses, also shows Japanese companies’ attention to such areas as chemical, coal, oil and gas, IT equipment and electronic parts. 

Yuichi Bamba, Deputy Director of the Asian and Ocean Division under JETRO’s Overseas Research Department, said the business environment in Vietnam has been improved thanks to the Vietnamese government’s efforts and the implementation of the Vietnam-Japan Joint Initiative on improving Vietnam ’s business environment and strengthening its competitiveness. 

However, Hayashi said that several Japanese enterprises are still concerned about business risks in Vietnam , especially risks from the country’s poor infrastructure and uncompleted legal system.

VN-Index declines on inflation fears

Hanoi (VNA) – Inflation concerns made a comeback on March 25 with a decline of 1.7 per cent in the VN-Index to 503.39 points. 

Daily value was brisk with 51.5 million shares, generating a turnover of 2.2 trillion VND (115.8 million USD). The southern market witnessed 168 decliners and 24 advancers, while Sacombank (STB) returned to be the heaviest-traded stock, with 2.8 million shares changing hands. 

In Hanoi , the HNX-Index fell 2.7 percent to 163.68 points, with 202 losers and 48 gainers. 

Value of day trades rose to 986.4 billion VND (51.9 million USD) on total of 30.9 million shares traded. 

Foreign trader followed the market trend to become net-sellers in the south on March 26, selling off nearly 800,000 shares while they remain net-buyers in the north with a net-buy of 100,000 shares.

Prime are to remain at 8 percent

Hanoi (VNA) – The State Bank of Vietnam on March 25 announced that it would keep the prime rate unchanged at 8 percent for a fifth month, surprising experts who had expected an increase as part of the Government’s efforts to reduce inflationary pressures.

The decision came one day after the General Statistics Office released data showing inflation had risen by 0.75 percent in one month in March and 9.46 percent over the same period last year. The consumer price index increased by an unexpectedly high 4.12 percent in the first quarter alone.

Vietnam’s inflation had reached “worryingly high” levels, as the Southeast Asian region overall began to see resurgent price pressures amid the economic recovery, HSBC Holdings Plc said in a report released on Wednesday. The report had predicted that the inflationary pressures would force the central bank to add a percentage point to the prime rate.

In response to concerns that inflation in 2010 might surpass the National Assembly’s target of 7 percent, Minister of Finance Vu Van Ninh said that the Government would implement measures to curb inflation while ensuring economic growth, and that these measures would include consistent market pricing policies to avoid irrational pricing.

Some stock investors cheered the central bank decision and expected a market rally.

Exchange-rate doubts discourage dollar loans

Hanoi (VNA) – Exchange-rate risks are discouraging most enterprises from taking out US dollar-denominated loans, despite the rising costs of borrowing in Vietnamese dong.

Lending rates for dollar loans from commercial banks currently range from 5.5 to 8 percent per year, compared to a whopping 16-19 percent per year in negotiated rates for medium-to long-term dong loans.

“The difference between the two is huge, about 10 percent,” said Asia Commercial Bank deputy director Nguyen Thanh Toai. “So, it is quite understandable that a number of enterprises are borrowing in dollars.”

But dollar loans are also harder to come by. Most lenders only take exporters and major borrowers into consideration for such loans. 
And most enterprises contacted by Vietnam News said that exchange rate risks were sometimes spookier to them than high interest rates.

“We have borrowed 400,000 USD at 6.5 percent to import machines,” said Duc Viet Foods Co general director Mai Huy Tan. “The interest is endurable now, but exchange-rate risks remain an ongoing concern because it’s something we can’t gauge for ourselves.

“We only borrow dollars minimally,” said Asian Food Co general director Nguyen Van Tan, who complained that foreign exchange fluctuations had already caused the renegotiation of some contracts and made Vietnamese goods less competitive on international markets.

The central bank has depreciated gradually the Vietnamese dong against the US dollar by over 10 percent since the beginning of 2009 and one dollar now costs about 19,000 VND through commercial banks and 19,250 VND on the black market.

A senior State Bank of Vietnam official, who asked to remain unnamed, told Vietnam News, “We definitely want to stabilise the rate to support businesses and that’s what we are trying to do. But it’s really a big question because exchange-rate policy has to consider other economic factors like the wide trade deficit, smaller foreign investment capital inflows and inflationary pressures.

Monthly minimum salary to increase to 730,000 VND from May

Hanoi (VNA) – The monthly minimum salary for State employees in Vietnam will increase to 730,000 VND (38.4 USD) from the present 650,000 VND as of May 1. 

According to a Government decree issued on March 25, the new salary will be applied in State-owned agencies, armed forces, political and socio-political organisations and non-productive units. 

Employees working at enterprises established under the Law on State-owned Enterprises, and one-member limited liability companies wholly owned by the State will also benefit from the change. 

The minimum salary will serve as the base for calculating salaries, allowances and welfare benefits in line with the law. 

Also the same day, the Government issued another decree to adjust pensions, welfare benefits and monthly allowances with an increase of 12.3 percent from May 1.