No more A/H1N1 outbreaks in Vietnam, says health official

At a meeting reviewing the flu epidemic situation in Hanoi on March 31, Deputy Director of the Department of Preventive Medicine and the Environment Tran Khac Phu confirmed that 11,208 people in the country had been infected with the virus as of March 31 of which 58 died. 

Regarding the A/H5N1 flu, Phu said that there were no more confirmed cases last week, and the total number of such cases so far this year stands at five, including two deaths. 

The A/H1N1 virus epidemic appears to have subsided and the country has not detected any mutations in the virus, said Associate Professor – Dr. Nguyen Tran Hien, Director of the Central Institute of Hygiene and Epidemiology. 

However, Hien urged localities to closely monitor for the A/H5N1 virus as it is still being found on poultry in several areas. 

According to the World Health Organisation (WHO), by March 30, there had been 492 confirmed cases of A/H5N1 infection in 15 countries, resulting in 291 deaths.

Finland to continue boosting cooperation with Vietnam

Hanoi (VNA) – Finnish President Tarja Kaarina Halonen affirmed that Finland will continue boosting cooperation with Vietnam .

President Tarja Kaarina Halonen made the affirmation while receiving newly-accredited Vietnamese Ambassador to Finland Doan Ngoc Boi recently.

The President said she gained a fine impression of the Vietnamese people and land during her visit to Vietnam in 2008.

Ambassador Boi stated that Vietnam attaches importance to developing friendship and comprehensive cooperation with Finland , especially in trade, investment, education and labour.

The ambassador expressed thanks to Finland for support to Vietnam in national construction and development over many years。

RoK PM pleased with ties with Vietnam

Seoul (VNA) – RoK President Lee Myung-bak said he is pleased with progress in his country’s relations with Vietnam , especially the agreement on upgrading their relationship to the level of a strategic partnership.

Receiving the new Vietnamese Ambassador to the Republic of Korea (RoK) Tran Trong Toan in Seoul in March 31, President Lee said he was hopeful that with efforts from both sides, friendship and cooperation between the two countries will grow even further.

He lauded Vietnam ’s increasingly strengthened role and position in the international arena and its assumption of the Chair of the Association of Southeast Asian Nations in 2010.

Recalling his impressions of Vietnam during his official visit last October, the RoK leader said he believed the Southeast Asian country will develop more strongly in the coming time.

Ambassador Toan conveyed the greetings and best regards of President Nguyen Minh Triet and Prime Minister Nguyen Tan Dung to the RoK President.

He pledged to do his best to contribute to realising all agreements reached by the two countries’ leaders, especially the contents of the bilateral strategic cooperation partnership.

The diplomat wished the RoK government great success in holding the first G-20 Summit in Asia , which will take place in November。

Experts contribute ideas to Labour Law

Hanoi (VNA) – The National Assembly’s Committee for Social Affairs (CSA) and the Friedrich Ebert Stigtung (FES) Institute jointly held a seminar for domestic and foreign experts to contribute ideas to the amended Labour Law, in Hanoi on March 31. 

According to CSA Vice Chairman Dang Nhu Loi, under the 2010 law-making programme, a draft amended labour law will be submitted to the NA in its session in May this year. 

The FES Institute Chief Representative, Joerg Bergsterman, said Vietnam ’s Labour Law, adopted in 1994, should be revised to catch up with the modernisation and industrialisation process in the country. He added his institute will support the building of the law in the direction of protecting the rights of labourers. 

The draft law should focus on issue related to labour relations as the existing law failed to deal comprehensively with those issues, resulting in strikes, said Deputy Minister of Labour, War Invalids and Social Affairs (MoLISA) Pham Minh Huan. 

Regarding the outline of the draft law, Prof. Dr. Wolfgang Daeubler, an expert from Germany , the draft law should put issues on jobs and labour contracts before other issues, including salary, relaxing conditions and professional skill training.

Fred Hollows supports eye care in Thua Thien-Hue

Thua Thien-Hue (VNA) – The Fred Hollows Foundation from Australia will grant almost 547,700 USD to provide operations and care for eye patients in the central province of Thua Thien-Hue . 

The project will conduct surgery on at least 1,500 patients of cataract and other eye-related diseases, said Chief of the Thua Thien-Hue People’s Committee Office Phan Ngoc Tho. 

It will also improve the quality of eye care in the province by enhancing the professionalism of health workers and upgrading equipment at eye hospitals and a number of commune-level infirmaries. 

As part of the project, as many as 35,000 local pupils will be examined and provided with counselling about eye refractions. Of them, around 1,000 poor pupils will be presented with glasses to treat their eye refractions. 

The two-year project is estimated to cost nearly 602,500 USD, with the rest contributed by the provincial budget. 

The Fred Hollows Foundation is inspired by work of the late Professor Fred Hollows, whose vision was for a world where no one is needlessly blind. 


Treatment of cataract blindness has come a long way in Vietnam since Professor Fred Hollows first visited in 1992. Fred had been invited by the government to demonstrate modern surgery techniques with local doctors. 


As part of the Vietnam Blindness Prevention Programm, the foundation currently works in the provinces of Quang Binh, Quang Tri, Quang Nam , Binh Dinh, Phu Yen, Vinh Long, Dak Lak, Quang Ngai, Thua Thien-Hue and Da Nang city.

Vietnam, Laos tighten cooperation in combating human trafficking

Vientiane (VNA) – Concrete measures to combat human trafficking and provide assistance for its victims topped the agenda of a workshop between Vietnam and Laos on March 30 and 31. 

An agreement on human trafficking between the two governments has also been drafted at the event. It is expected to be signed by the end of this year. 

The Vietnamese delegation to the workshop, which was held in the Lao capital of Vientiane, was headed by major-general Vu Hung Vuong, deputy head of the Crime Prevention General Department under the Ministry of Public Security, and the Lao delegation was led by Thummali Vongphachan, Chief of the Secretariat of the Laos National Steering Committee on Human Trafficking. 

Addressing the ceremony, Vu Hung Vuong underlined the adverse impacts of human trafficking on people, especially women and children. 

He also called on the two countries’ high-ranking committees and other relevant ministries and agencies to closely cooperate in the combat against human traffickers, especially those operating across borders, and providing aid for the victims.

Vietnam, US cooperate in curbing climate change

Hanoi (VNA) – The US – Vietnam Climate Change Working Group gather in Hanoi on March 31 for a three-day meeting to discuss combating climate change in Vietnam along with drawing up future plans for the group. 

The group will map out its activities based on research into the effects of climate change, the capacity of Vietnam’s agricultural sector to adapt to it, and solutions for natural disasters in the Mekong Delta region, said Dr Tran Thuc, Director of the Vietnam Institute of Meteorology, Hydrology and Environment. 

During the three-day event, the participants will conduct field trips to study climate change in the coastal district of Hai Hau, Nam Dinh province. 

The meeting contributes to increasing US-Vietnam cooperation while showing the American country’s role in dealing with the global issue, said US Ambassador to Vietnam Michael Michalak. 

The joint working group was established in late 2008 as part of a cooperation agreement between the two countries.

Project to phase out persistent organic pollutants

Hanoi (VNA) – A project designed to minimise and eliminate the production and use of persistent organic pollutants - Polyclobyphenyls, or PCB’s - was launched in the capital city of Hanoi on March 31. 

The project is funded by the Global Environment Fund via the World Bank and jointly carried out by the Ministry of Natural Resources and Environment, the Ministry of Industry and Trade, and the Electricity of Vietnam Group. 

The project aims to help Vietnam complete a legal framework and a national action plan on the management of PCBs and improve its capacity in this field. 

In line with commitment to the Stockholm Convention on Persistent Organic Pollutants, Vietnam pledges to phase out the use of PCBs in 2020 and conduct the safe destruction of the substance by 2028. 

The country has performed a series of activities to realise the plan, including a pilot project to control PCBs in electric equipment, the application of technologies for treating waste contaminated with it, and assessing the relevant legal framework.

Mekong countries, Japan step up cooperation

Hanoi (VNA) – Delegations from Japan and five Mekong countries, namely Cambodia , Laos , Thailand , Myanmar and Vietnam , gathered in Hanoi on March 31 for the fifth Mekong-Japan Senior Officials Meeting (SOM). 

The meeting focused on the outcomes of the first meeting between Japan and the Mekong region countries which took place in Tokyo on November 6-7, 2009, and the discussions to implement the Tokyo Declaration and the Mekong-Japan Action Plan 63. 

At the meeting, the Japanese delegation gave a presentation on the implementation of the Mekong-Japan Action Plan 63 and introduced the Green Mekong Decade initiative, which aims to build a Mekong sub-region that can be developed sustainably. 

Meanwhile, the Vietnamese delegation gave an in-depth presentation of Prime Minister Nguyen Tan Dung’s initiatives on the Mekong-Japan vocational training centre and a project to effectively and sustainably manage and utilise the Mekong rivers water sources. 

The fifth Mekong-Japan SOM also recognised the new developments in the working relationship between Japan and the Mekong region countries and reached a consensus on more ways to further enhance cooperation mechanisms. 

Those attending the meeting also agreed to hold the third ministerial conference and the second summit meeting between Japan and the Mekong region countries on the sidelines of ASEAN conferences in Vietnam later this year.

Deputy Foreign Minister visits China

Beijing (VNA) – The Vietnamese and Chinese foreign ministries have agreed to effectively implement previously signed border and territorial agreements and speed up the settlement of maritime issues. 

The agreement was reached at talks between Chinese Deputy Foreign Minister Zhang Zhijun and his Vietnamese counterpart Pham Binh Minh, who is currently on a four-day visit to China . 

The two ministers also agreed to step up coordination in activities to mark the Vietnam-China Friendship Year 2010, prepare for the reciprocal visits by both countries’ high-ranking officials later this year and promote bilateral cooperation in economics, trade and investment. 

Both ministries spoke in unison about enhancing collaboration in multilateral forums, especially when Vietnam holds the ASEAN chair and holding regular exchanges between the two Parties on theoretical work. 

Both parties expressed their delight at the series of new and important developments in various fields since the Vietnam-China relationship was lifted to a comprehensive strategic cooperative partnership. 

They confirmed their determination to further develop the traditional friendship between the two Parties and States and consolidate the mutual trust and understanding. 

While in China from March 29 to April 1, Deputy FM Minh met with Chinese FM Yang Jiechi and the Head of the Communist Party of China’s Central Committee’s International Liaison Department Wang Jiarui.

VN supports nuclear disarmament, non-proliferation

New York (VNA) – Vietnam supports nuclear disarmament and non-proliferation and the role of the UNDC with its mandate as the sole specialised, deliberative body within the UN multilateral disarmament machinery, a Vietnamese minister counsellor has said. 

Pham Vinh Quang, who is also deputy head of the Vietnamese mission to the United Nations (UN), made the statement at the substantive session of the UN Disarmament Commission (UNDC) in New York on March 30. 

Although the world has exerted efforts in nuclear disarmament and non-proliferation, challenges are enormous and there still exists a nuclear stockpile capable of destroying the entire world many times, he said. 

“ Viet Nam is of the view that multilateralism, with central role of the UN, remains essential to any effort to find sustainable solutions to the challenges to peace and security,” the Vietnamese diplomat stressed. 

He went on to say Vietnam attaches importance to enhancing the effectiveness of the Treaty on the Non-Proliferation of Nuclear Weapons (NPT), that is the cornerstone of the nuclear disarmament, nuclear non-proliferation and peaceful uses of nuclear energy. 

Therefore, Vietnamese State President Nguyen Minh Triet made a proposal at the Security Council Summit on nuclear non-proliferation and nuclear disarmament last September to convene an international conference on the use of nuclear energy for peaceful purposes, Quang said. 

“We believe that the 2010 NPT Review Conference will offer an opportunity for member states to review the progress in implementing the Treaty’s provisions and renew their commitments to the principles and purposes of the NPT as well as to find practical measures to strengthen the Treaty in all its three pillars,” he said. 

Vietnam remains committed to fulfill all obligations and responsibilities under the NPT to which it is a party, he said, adding that Vietnam has concluded with IAEA the Additional Protocol to Nuclear Safeguards Agreement and supported the establishment of nuclear-weapon-free zones (NWFZs) while working hard with other ASEAN countries to ensure the Southeast Asia region free from nuclear weapons. 

The nation also supports all initiatives to genuine disarmament, including those by the Non-Aligned Movement, the Secretary-General in his five-point proposal, the Security Council Summit on nuclear non-proliferation and nuclear disarmament last September as well as the coming Nuclear Security Summit in early April, Quang added. 

He called upon all UN member states to work in a cooperative, problem – solving spirit in order to get a breakthrough and achieve agreement on recommendations based on the agenda of the UNDC’s session.

Tu Dam Pagoda restoration completed

HCM City (VNA) – The Thua Thien-Hue Buddhist Association on March 30 held a ceremony to mark the restoration of the Tu Dam Pagoda. 
The restoration of one of the biggest pagodas in the central city of Hue cost 13 billion VND (685,000 USD) and took four years to complete. 
The restoration work, beginning in July 2006, included restoration of the main sanctuary, the conference house, service hall and a monastery. 
A new 27m high seven-storey tower was also built. Each storey has a Buddha statue. 
Known was An Ton Pagoda when it was built in the late 17 th century, its name was changed in 1841. 
Located in the city’s Truong An ward, it is now a major spiritual centre for Buddhists in the city and the central region.

Monastery hosts festival

Vinh Phuc (VNA) – The annual Tay Thien Festival opened on March 30, the 15 th of the second lunar month, at the Truc Lam ( Bamboo Forest ) Tay Thien Zen Monastery in the northern province of Vinh Phuc. 
Located in Dai Dinh commune, Tam Dao district on Tay Thien Mountain, 85km west of Hanoi, it is considered one of the most impressive and peaceful monasteries in Vietnam together with the Zen Monastery in Da Lat in the Central Highlands province of Lam Dong and the Yen Tu Monastery in the northern province of Quang Ninh. 
This year the festival was welcomed by a van (spiritual) singing festival featuring troupes from ten northern provinces that started on March 26. 
Various other traditional festivities and rituals were held to honour the Goddess of Tay Thien, observed by 30 researchers. 
Legend has it that the Goddess of Tay Thien is Lang Thi Tieu, Hung Chieu Vuong’s Queen (2450 BCE), who helped the king defeat invaders and teach the people how to grow rice and develop handicrafts. Apart from the Tay Thien Monastery, she is also thought to have worshipped at 71 other temples and pagodas in the local area. 
Dang Van Bai, former director of the Ministry of Culture, Sports and Tourism’s Heritage Department, said that worshipping the Goddess of Tay Thien was part of the Holy Mother Religion of the Vietnamese, a long-standing religion that has a powerful influence over a large area. He also emphasized two intangible features of the religion including van singing and hau dong (mediumship). 
During three-day festival, various activities will be held such as displays by the San Diu ethnic group, folk singing contests, cooking rice and folk games. 
Built on ruins of an ancient pagoda, Truc Lam Tay Thien Zen Monastery sits majestically on the apex of the mountain, where from below the red tips of its tile-covered roof can be seen peaking through the pine trees. The Zen Monastery was officially inaugurated on November 27, 2005. It is very ornate, from the carved pictures on the doors to the embossed works on the walls, ceilings, and pillars, every detail was considered. 
In addition to the monastery, there are support buildings constructed in the ancient architectural style including a library, museum, meditation house for monks, and temples in honour of the three founders of Truc Lam Zen. 
Walking around the buildings, visitors can almost taste the tranquility that is in the air of the mountainous landscape and holy temples.

German NGO brings smiles to children with facial deformities

Hanoi (VNA) – German non-governmental organisation Deviemed, in cooperation with the Hue Central Hospital , has offered free surgical operation for more than 60 disadvantaged children with harelip and cleft palate. 

The organisation also supported travelling and accommodation costs for families of the patients, who come from a number of central provinces . 

Last March, Devimed conducted surgeries for 100 harelip and cleft palate children. 

Vietnam launches multi-level marketing association

Hanoi (VNA) – The Vietnam multi-level marketing (MLM) association made its debut on March 31 in Hanoi with an expectation of creating a professional system of MLM companies.

Truong Thi Nhi, President of the association, said the organisation will focus on improving the capacity of MLM companies in Vietnam and improving connections among local firms operating in the arena. 

The association, she added, will work with state management agencies in the process of building mechanisms and regulatory policies concerning MLM activities in order to create a healthier and more equal environment for competition.

In addition, it will carry out support and cooperation programmes with regional and international MLM associations.

Addressing the launching ceremony, Deputy Minister of Industry and Trade, Le Danh Vinh said since the adoption of the Law on Competition in 2004, MLM has been recognised as a legal form of business in Vietnam .

The MLM market, joined by 45 local and foreign firms, has developed significantly in Vietnam over the last five years. 

According to statistics updated by the end of 2009, there are 32 operating MLM companies with 700,000 distributors in the market, offering around 1,000 product lines, mainly nutritional supplements, cosmetics and household utensils. 

With 2.1 trillion VND in sales (109,2 million USD) in 2009, or a 150 percent rise against the figure in 2008, these firms contributed nearly 660 billion VND in taxes to the state budget and donated five billion VND to humanitarian causes.

UNDP helps Vietnam build 2011-2020 socio-economic strategy

Hanoi (VNA) – The UNDP has conducted a series of studies on a wide range of socio-economic issues in Vietnam to aid the country in outlining its socio-economic development strategy in the 2011-2020 period.

The results of these studies were presented to attendees of a conference jointly held by the Ministry of Planning and Investment and the United Nations Development Programme (UNDP) in Hanoi on March 31.

As part of the UNDP-funded project on “assistance to the making of the socio-economic development strategy for the 2011-2020 period”, the studies analysed economic development trends around the world and in the region together with their possible impact on the Vietnamese economy in the next decade.

The studies have provided insight into the competitiveness of State and private companies as well as international experiences in sharpening the competitiveness of businesses.

They also focussed on ways to boost farming productivity and incomes for rural people, along with forecasts on the labour market, employment and urbanisation in Vietnam by 2020.

Addressing the conference, UNDP Resident Representative John Hendra affirmed that the UNDP is willing to discuss and share with Vietnam the views and experiences it has gained to assist the country in making its socio-economic development strategy.

He spoke highly of Vietnam ’s openness and sharing during the course of building its 2011-2020 socio-economic development strategy, describing it as an important document, which will enable donors and international organisations to define priorities in Vietnam ’s policies in the next ten years for later use in their national cooperation programmes with Vietnam .

Between 1991-2010, from an agriculture-based economy, Vietnam has risen to attain growth in a wide range of fields and has also integrated broadly in the regional and world economies, the UNDP official said, urging the country to make wise choices in shaping its future in the coming period in the context of new economic and social challenges.

Improving the quality of investment, the effectiveness and skills of the labour force, and creating a stable environment for businesses to develop are extremely important for Vietnam in its next phase of development, the UNDP official said.

The conference, the first of its kind, brought together representatives from relevant ministries and sectors, international organisations, and foreign embassies, as well as experts on development.

Foreign CEOs urge VN to tap internal strengths

HCM City (VNA) – Vietnam needs to muster all of its internal forces to remain competitive, especially in the transport sector, to attract more foreign investors. 

The remark was made at the Vietnam Manufacturing Summit in Ho Chi Minh City on March 31, which drew the participation of over 100 Chief Executive Officers (CEO) from foreign groups and companies operating in Vietnam. 

According to Mike Gildea, a CEO from Agiliti South East Asia Company, investors in Vietnam have to pay a higher cost for the transport of goods compared with that paid in other countries in the region due to poor traffic and infrastructure systems and other obstacles caused by its human resources. This chips away at Vietnam ’s key advantage in terms of cheap and abundant labour. 

Small and medium sized enterprises in Vietnam have shown a shortfall in unity coupled with a limited financial budget and poor access to modern science and technology as well as global economic information, said Nguyen Tri Dung, a senior expert in Japan , who is also head of Tri Dung Business School . 

He suggested that Vietnam ’s CEOs concentrate on concrete measures to help their enterprises survive and develop in the midst of the global economic and financial crisis. 

A small exhibition and discussions on the top ten issues in manufacturing also took place as part of the event to help the participants engage in exchange.

Vietnam rates as world’s 16th top emerging market

HCM City (VNA) – Vietnam holds 16th position in the latest Grant Thornton emerging markets opportunity index, which rates world markets in terms of size, development pace and economic growth.

In the Grant Thornton International Business Report 2010 released on March 31, the auditing and consultancy company said Vietnam has increasingly opened its economy and trade, especially after joining the World Trade Organisation in 2007, despite a large portion of its GDP--20 percent—being in agriculture.

According to the report, the top five countries in the emerging markets opportunity index are China , India , Russia , Mexico and Brazil .

Up to 57 percent of private businesses in 14 of the world's leading emerging markets indicated that they were optimistic about the prospects for their country's economy in the year ahead.

Emerging economies, the report said, occupy four of the top five places in terms of optimism for the year ahead, including Chile , 85% percent; India 84 percent; Vietnam , 72 percent and Brazil , 71 percent.

Ken Atkinson, Managing Partner at Grant Thornton Vietnam in Ho Chi Minh City , said the importance of the emerging markets to the world economy has been proved as the world emerges from recession. 

Not only have these economies been less severely hit, but they are also recovering more quickly, with growth rates over the next two years forecast to be double that of more mature economies, he added.

However, the survey also reports that businesses in emerging markets fear their growth prospects are being hampered by poor access to finances and a lack of highly-skilled workers. 

The Grant Thornton report was based on surveys of 7,400 managers of medium-to-large private companies in a broad range of sectors in 36 economies.

Vietnam-China trade turnover to hit 25 bln USD

Hanoi (VNA) – Vietnam-China bilateral trade turnover is expected to hit 25 billion USD this year based on a growth rate of between 20-25 percent in trade between the two countries in recent years.

The forecast was announced at the Shaanxi-Hanoi trade and investment seminar held in Hanoi on Mar. 31.

According to Nguyen Thanh Bien, Deputy Minister of Industry and Trade, the target of 25 billion USD is feasible as the two countries share a common border, have similar political institutions, and are in the process of national renewal.

The two countries are members of the World Trade Organisation (WTO), the Asia-Pacific Economic Cooperation (APEC) forum, the Asia-Europe Meeting (ASEM) and several economic forums. Moreover, the coming into effect of the ASEAN-China Free Trade Agreement is giving good opportunities to boost trade and investment in the coming time.

Also present at the seminar, Shaanxi provincial Party Committee Secretary Zhou Leji affirmed that with potential in science and technology, tourism and natural resources, Shaanxi and Hanoi can further boost cooperation to raise trade turnover between the two sides to a higher rate, above the modest figure of 48.9 million USD in 2009.

Zhou pointed out that Shaanxi has a population of 37 million and an acreage of 205,800 sq.m. The province lies in the western region of China and had a economic growth rate of 13.9 percent as against the national level of 8.9 percent last year.

At the seminar, businesses from the two countries signed three cooperation deals in automobile and engineering manufacture and import-export worth 25.5 million USD.

Festival helps build Vietnamese seafood trademark

Hanoi (VNA) – A Vietnam Seafood Festival will be held for the first time aiming to create a chance to boost cooperation and trade between domestic and foreign businesses, helping increase exports and build Vietnam ’s seafood trademark. 

At a press conference held in Hanoi on March 31, Vice Chairman of the Can Tho city People’s Committee To Minh Gioi, Head of the festival’s Organising Board, said that the festival, which will take place in the Mekong Delta city from April 24-27, is a large socio-economic and cultural event for the Mekong Delta in particular and the whole country in general. 

It will make an important contribution to increasing the competitiveness of Vietnamese agricultural products on the world market, he said. 

According to Deputy Minister of Agriculture and Rural Development Luong Le Phuong, the festival aims to seek new opportunities for Vietnam ’s seafood sector, especially as it is facing many challenges under the increasing competitive pressure that comes with international economic integration. 

Nearly 20 economic and cultural activities will be held during the festival, including a 500-booth fair exhibiting Vietnamese seafood products. To date more than 200 businesses and localities have registered to attend the fair. 

A seminar entitled “Vietnamese Seafood: Potential, Cooperation and Development” will focus on five topics, including aquatic farming in Vietnam, future offshore fishing, seafood exports, building up brand names and logistical services for the sector. 

The Organising Board will present the “2009 Outstanding Vietnamese Seafood Enterprise” Award to those which have shown excellence in overcoming difficulties stemming from the global economic crisis over the past year.

Stricter rules for commercial banks in the pipeline

Hanoi (VNA) – The State Bank of Vietnam is drafting a circular to tighten control over the expansion of commercial banks’ networks in a move to minimise risks to the banking industry. 

According to the draft circular, commercial banks will be permitted to open a maximum of five transaction offices and branches within their first year of operations. 

The new transaction offices and branches will also have to observe specific regulations regarding the efficiency of their business activities, operational safety, scale and financial capacity. 

Commercial banks must ensure adequate profits in the year before they plan to open up more transaction offices or branches and have bad debts of less than 3 percent. In addition, eligible banks must have effective management systems and a secure information technology infrastructure. 

Previously, in 2005, the central bank issued Decision 888 to limit the number of branches and transaction offices opened by commercial banks. However, the outcomes from this have to date experienced many shortcomings. 

Industry analysts say that expanding networks helps domestic commercial banks gain an advantage. However, this could reduce the efficiency of their operations and even undermine the entire banking system if any expansion is beyond their capacity in terms of capital and administrative abilities.

Economy recovers in Q1, but challenges remain

Hanoi (VNA) – The strong development of key economic sectors has been attributed to the country’s 5.8 percent GDP growth in the first quarter of this year, which has created a basis for the economy’s sustainable recovery. 

According to the General Statistics Office (GSO), the three major components that have contributed to the growth in GDP are agro-forestry-fisheries, industry and construction and the service sector. They all experienced a fairly high growth compared to the same period last year, with the services sector achieving the highest rate of 6.64 percent. 

Agro-forestry-fisheries and industry and construction saw growth rates of 3.45 percent and 5.65 percent, respectively, during this period, which far exceeded the corresponding 0.4 percent and 1.5 percent for the same period last year. 

Both the GSO and the National Centre for Socio-Economic Forecasting and Information (NCSEFI) agreed that industrial production and the thriving services sector clearly indicate a recovery in the economy. 

In the first quarter, total industrial production increased by 13.6 percent year-on-year to 173.5 trillion VND, while retail sales rose 24 percent rise to 364.5 trillion VND. 

However, the Director of the NCSEFI, Dr. Le Dinh An, said that no breakthrough in economic growth was made in Q1 as expected. The above-mentioned 5.8 percent growth only represents a modest rise over the same period last year, when the economy was at “rock bottom.” 

Despite the recovery, the economy still faces many difficulties and challenges, with the biggest threat being the possible reappearance of inflation, said An. 

GSO statistics showed that the consumer price index (CPI) in the first three months of this year increased continuously, helping it to jump by 8.51 percent against the same period last year. 

While exports faced difficulties, imports surged, resulting in a trade deficit for this period of 3.5 billion USD, or 25 percent of the total export value. Despite having taken measures at the beginning of the year, the results have been limited and have put more pressure on the balance of payments. 

To create a firm foundation for the economy’s recovery, Dr. An stressed on the necessity to monitor the macro economy, by implementing flexible monetary policies and increasing exports. 

According to the GSO, in order to reach a yearly GDP growth rate of 6.5 percent, the GDP growth rate in the remainig three quarters will have to reach 6 percent, 6.5 percent and 7.3 percent, respectively.

Timber exports likely to face difficulties in US, EU

Hanoi (VNA) – Vietnam ’s timber exports are in danger of losing their market share in the US and the European Union (EU) markets when the US enforces the Lacey Act on forestry on April 1 and the EU implements its Forest Enforcement Law in 2011. 

The Vice President of the Vietnam Timber and Forest Product Association, Nguyen Ton Quyen, said that both the Lacey Act and the EU law require timber exporters and retailers to prove the origins of its timber and related materials. 

This decision poses a number of difficulties for Vietnamese businesses when sourcing quality legal timber at reasonable prices as the bulk of Vietnam ’s wooden products comes from imported timber, said Quyen. 

To minimise the negative impacts of both these regulations, Quyen said that his association is preparing for the opening of timber transaction centres in the northern, central and southern regions of the country. Once operational, these centres will help to reduce the prices of products by 10 percent, cut production times and guarantee the timber’s origins. 

In the meantime, for the European market, the Ministry of Agriculture and Rural Development (MARD) has set up a working group to help businesses buy wooden products with clear origins and provide consultations on the necessary procedures when applying for Forest Stewardship Council (FSC) certification. 

A number of EU timber importers have already been assisting Vietnamese businesses to abide by both laws. 

The association’s heads have suggested that businesses work together to increase their competitiveness and focus on manufacturing products that meet the requirements of both markets. They also emphasised the necessity for businesses to diversify their outlets to avoid a drop in sales in individual markets when global prices fluctuates. 

MARD said that Vietnam ’s timber exports brought in almost 655 million USD in the first three months of this year, a year-on-year rise of more than 16 percent. Timber exports to the US and the EU accounted for more than 50 percent of the country’s total.

Vietnam cancels Viva Macau Airlines’ operation

Hanoi (VNA) – The Vietnam Aviation Department has revoked a licence for operating flights in Vietnam of China’s Viva Macau Airlines, said Vo Huy Cuong, head of the department’s air transport division.

The department received an announcement from the Macau-based low cost carrier on March 29 saying it could not conduct flights from Macau to Ho Chi Minh City and Hanoi and vice versa as its AOC (An Operating Certificate) was revoked by the Macau aviation authorities, Cuong was quoted reportedly by Nhan Dan daily on March 31 as saying.

According to the Vietnam aviation law, the carrier is not permitted to operate flights in Vietnam without AOC. Viva Macau Airlines said on March 29 all flights between Macau and Hanoi had been cancelled from March 27, and the Macau – HCM City flights cancelled from March 28 to April 1. 

It attributed the delays and cancellations to its “inability to reach an agreement with the sole fuel supplier in Macau .” 

The airline said in a press release that its shareholders had offered credit guarantees to the supplier, but “no agreement could be reached and therefore flights were stopped unexpectedly.” 

In addition to HCM City and Hanoi services, the termination of AOC affected flights to other destinations including Tokyo , Sydney , Melbourne and Jakarta . 

Thirty-three flights have been cancelled, affecting 4,739 passengers. 

The carrier has been in active contact with passengers and providing refunds in accordance with its “Conditions of Carriage.” 

Before the cancellation, Viva Macau was operating a daily service to HCM City and three weekly flights to Hanoi.

Maersk Line links to US west coast

HCM City (VNA) – The core shipping activity of the A.P.Moller - Maersk Group, Maersk Line, has announced the introduction of a direct service between southern Vietnam and the US West Coast with its premier Trans-Pacific 6 string (TP6). 

The first sailing will be with the Mathilde Maersk on May 12. 

The service will call at the SP-PSA International Terminal in Vung Tau, a deepwater facility located 80km south of HCM City near the mouth of the Cai Mep – Thi Vai river. 

It would have a Wednesday sailing at Vung Tau, providing an optimal Monday evening cargo closing for exporters, and a Sunday arrival into the APM Terminals facility in Los Angeles, California, with a transit time of just 18 days, a company press release said. 

Westbound port rotation for imports from the US West Coast will remain unchanged. 

“Our US customers have requested this direct call and the time is right to include a direct service from Vietnam in our network,” said Bill Woodhour, North America Sales Manager for Maersk Line. “This call will compliment our other Trans-Pacific products.” 

Maersk Line’s P6 service offers products covering the Far East and US West Coast. With a fleet of 14 vessels, ports of call eastbound will include Tanjung Pelepas, Malaysia; Vung Tau, Vietnam; Yantian, China; Hong Kong, China and Los Angeles, California. 

The westbound rotation will be Los Angeles, California; Yokohama, Japan; Nagoya, Japan; Shanghai, China; Ningbo, China; Xiamen, China; Hong Kong, China; Yantian, China, and Tanjung Pelepas, Malaysia.

Vung Ang economic zone lures investors

Hanoi (VNA) – The People’s Committee of the central province of Ha Tinh granted three investment licences for new operations at the Vung Ang Economic Zone. 

Two firms from the Republic of Korea, Vision Land Co Ltd and Humantech Co, received licences and will bring more than 50 million USD in investment capital in their first stage. 

Addition of these two new projects will bring total foreign direct investment (FDI) projects in the Vung Ang zone up to 60, with a combined investment capital of more than 180 trillion VND (9.5 billion USD), according to the zone’s website. 

The third licence was granted to the HCM City Trade and Production Company. 

The zone was expected to lure FDI firms this year from a wide range of sectors, including manufacturing, trade, vocational training schools, services, particularly port services, said Vo Kim Cu, deputy head of the provincial People’s Committee and director of the economic zone’s management board. 

A granting ceremony was held last week by the zone’s management board and Human Tech E&C Co in HCM City, which was also used as an investment promotion seminar. 

The event attracted 150 participants from the RoK, Taiwan, India and other countries and territories. 

Vung An was founded in 2006 under a Government decision. It was built on a total area of 22.780ha with competitive advantages in the fields of trade, services, eco-tourism and resorts.

Footwear exports tipped to grow

HCM City (VNA) – The country’s footwear industry expects robust export growth this year despite ongoing concerns about anti-dumping duties in the European Union (EU) market, a recent study finds. 

A survey by the US-based non-profit Kearny Alliance Foundation shows that 90 percent of footwear exporters anticipate export growth this year, and 47 percent will target the EU market. 

It also indicates that 60 percent of footwear makers would maintain their quotas for next year. 

While footwear makers are concerned about the EU’s 10 percent anti-dumping duty imposed on made-in-Vietnam products, survey respondents also noted that the 16 percent duty imposed on China gives Vietnam an advantage. 

“The Vietnamese footwear sector enjoys a number of competitive advantages, among which are an abundant supply of raw materials, favourable government support and the large pool of skilled suppliers with proven original equipment manufacturer capability,” said Alexander Boome, programme director of Kearny Alliance. 

“This is clearly supported by a number of well-established international brands entrusting their production to Vietnam suppliers. As a result, the country is the fifth-largest exporter of footwear in the world,” Boome added. 

Tran Duc Trieu, director of T&T Fashion Shoes, one of the suppliers featured in the report, said, “We are confident that Vietnamese footwear makers can meet the high demands of quality and budget conscious buyers worldwide.” 

The country’s footwear industry posted an export turnover of 147.8 million USD last year. 

The footwear sourcing report, which is one of series of the Developing Country Sourcing Reports, features profiles of 32 experienced large, mid-sized and emerging export manufacturers. 

Included in the report are 108 bestselling export products ranging from casual shoes and sandals to sports and formal shoes. 

Turnover from footwear exports reached more than 1 billion USD in the first quarter of 2010, up 10 percent over the same period last year. 

According to the General Statistics Office, the EU continues to be Vietnam’s largest importer of footwear with turnover reaching 326 million USD in the first two months of this year – 48 percent of total exports. It was followed by the US and Japan. 

At present, Vietnam’s footwear products, mainly sports shoes, cloth and leather shoes and sandals, are exported to 50 countries and territories worldwide. Total turnover from the sector comes just behind garment and crude oil exports. 

According to the Vietnam Leather and Footwear Association (Lefaso), Vietnam now ranks fourth among the world’s 10 leading footwear exporters.

Pepper prices rise despite drop in exports

HCM City (VNA) – Vietnam exported 23,000 tonnes of pepper worth nearly 66 million USD in the first quarter of this year. 

Though the volume declined 14.55 percent year-on-year, earnings were 1.54 percent higher due to higher global prices of the spice, according to the Ministry of Agriculture and Rural Development (MARD). 

The average export price this year has been 3,111 USD a tonne, 22.1 percent higher than in the first quarter of last year. The price is expected to increase further this year due to a global supply shortfall. 

The ministry said the recent unfavourable weather had caused a decline in pepper output and delayed harvests until mid-February. 

Vietnam has been the world’s largest pepper producer and exporter since 2001, with Germany, India and the US being the biggest buyers. 
Last year it exported a record 135,000 tonnes for 347 million USD, an increase of 49 percent in volume and 11.46 percent in value over 2008, according to the Vietnam Pepper Association.

VN Trade Counselor: US determinations on plastic bags unfair

Washington (VNA) – A Vietnamese commercial counselor to the US has said the US Department of Commerce (DOC)'s final determinations in the antidumping (AD) and countervailing duty (CVD) investigations on imports of polyethylene retail carrier bags (plastic bags) from Vietnam were unfair. 

Counselor Ngo Van Thoan told VNA on March 30 that though the Vietnamese side had provided the US with adequate information and data relating to its support for companies in accordance with the rules of the World Trade Organisation, of which Vietnam and the US are members, the US side still made unfair determinations based on their own views. 

On March 26, DOC announced its affirmative final determinations in the AD and CVD investigations on imports of plastic bags from Vietnam . 

DOC determined that producers/exporters from Vietnam have sold plastic bags at less than normal value in the United States at 52.30 percent to 76.11 percent. 

It also determined that Vietnamese producers/exporters have received net countervailable subsidies ranging from less than 1 percent to 52.56 percent. 

According to DOC's determination, in the AD investigations, 16 Vietnamese producer/exporters qualified for a separate rate of 52.30 percent. All other Vietnamese producers/exporters of plastic bags received the Vietnam wide rate of 76.11 percent, including the Vietnamese mandatory respondents, Advance Polybag Co., Ltd. and Fotai Vietnam Enterprise Corporation, as both companies have withdrawn their participation in these investigations. 

In the CVD investigations, the three mandatory respondents Chin Sheng Company, Ltd., Fotai Vietnam Enterprise Corp., and Advance Polybag received final subsidy rates of 0.44 percent, 5.28 percent, and 52.56 percent, respectively. All other producers/exporters from Vietnam received a final subsidy rate of 5.28 percent. 

DOC made known that as a result of the final AD determinations, it will instruct U.S. Customs and Border Protection to collect a cash deposit or bond on imports of plastic bags based on the final AD rates. Cash deposits of CVD on imports of plastic bags will not be required unless the U.S. International Trade Commission (ITC) reaches a final determination that the U.S. industry is being injured by imports of plastic bags from Vietnam . 

The petitioners for these investigations are Hilex Poly Co., LLC in South Carolina , and Superbag Corporation in Texas . 

The ITC is scheduled to issue its final determinations on or about May 10, 2010. If the ITC makes affirmative determinations that imports of plastic bags from Vietnam materially injure, or threaten material injury to, the US industry, DOC will issue AD and CVD orders. If the ITC makes negative injury determinations, these investigations will be terminated. 

Sources from the US Bureau of Census show that in 2009, imports of plastic bags from Vietnam were valued at an estimated 43 million USD compared to 79.4 million USD in 2008.

Late buys fail to save markets

Hanoi (VNA)-An accelerated sell-off of shares caused the HCM Stock Exchange to undergo a correction on March 30, with the VN-Index closing off by nearly 1 percent to 500.72 points. 

But, following Monday’s sluggish pace, the overall value of the day’s trades returned to a more active 2.22 trillion VND (116.8 million USD), on a total volume of 58.8 shares. 

Saigon Cable and Telecommunication Materials Co (SAM) became the most active share, with a volume of 4.8 million, after the company’s shareholders on Sunday voted to approve a target for this year of 1.31 trillion VND in earnings and 282.6 billion VND in profit. They also approved proposals to increase its charter capital this year and to rename the company SACOM Development and Investment Corporation. 

The Hanoi Stock Exchange saw its fourth session of declines on the same day and the HNX-Index closed down by 0.84 percent to 162.37 points. Volume reached 27.7 million shares, worth a combined 906.84 billion VND (47.7 million USD), with Kim Long Securities Co (KLS) reclaming the spot as the most active share, with a volume of 2.6 million changing hands. 

Foreign investors turned to be net sellers on the southern market by a net volume of about a million shares, worth a net of 36.9 billion VND (1.94 million USD), but they were net buyers on the Hanoi market, picking up a meagre 97,600 shares.