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Article 9

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EastSea tensions – the centrepiece of Shangri-La Dialogue

(VOV) - EastSea tensions following China’s illegal placement of its drilling rig Haiyang Shiyou-981 in Vietnam’s exclusive economic zone were hotly debated at the recent 13th Shangri-la Dialogue in Singapore.
Most participating delegates voiced their support for Vietnam’s stance, condemned China’s move and asked it to immediately stop destabilising actions in the region.

 
Vietnamese Defence Minister Gen. Phung Quang Thanh attending the Shangri-La Dialogue (Photo:VNA)
Vietnamese Defence Minister General Phung Quang Thanh reiterated Vietnam’s consistent policy of settling the East Sea dispute by peaceful measures in accordance with international law, especially the 1982 UN Convention on the Law of the Sea (UNCLOS), the 2002 ASEAN-China Declaration o the Conduct of Parties in the East Sea (DOC), and ASEAN’s Six-Point Principle on the East Sea.
He demanded China that China immediately withdraw the rig from Vietnam’s waters and sit down at the negotiating table to maintain peace, stability, and relationships between the two countries.
Japanese Prime Minister Shinzo Abe, a keynote speaker at the regional security summit, supported Vietnam and the Philippines in reducing tensions in the East Sea, and stressed the use of force and intimidation the change the status quo is unjustifiable.
Japan will offer its utmost support for the efforts of ASEAN countries as they work to ensure the security of the seas and the skies, and thoroughly maintain freedom of navigation and overflight, he said.
US Defense Secretary Chuck Hagel accused China of carrying out acts that cause instability in the EastSea and warned Washington would not ignore such acts if the international order is threatened.
He said China has undertaken destabilising, unilateral actions to assert its claims in the EastSea. The US“will not look the other way when fundamental principles of the international order are being challenged".
He also made it clear that Washington firmly opposes any nation’s use of intimidation, coercion, or the threat of using force to assert those claims.
Hagel confirmed the US will continue to embark on its pivot policy in Asia, and Asia-Pacific nations need to cooperate with each other to maintain peace, prosperity and long-term stability.
Russian Deputy Defence Minister Anatoly Antonov said Russia’s main goal is to ensure peace and security in the Asia-Pacific region which is vital to sustainable economic development and prosperity of all nations.
Meeting security threats requires concerted efforts from all countries under the auspices of the United Nations and the UN Security Council, as well as regional and sub-regional structures such as the East Asia Summit, ASEAN Regional Forum, and ASEAN Defence Ministers Meeting Plus (ADMM+), he said.
French Defence Minister Jean-Yves e Drian asked parties concerned to soon reach a consensus conclusion of a code of conduct in the East Sea (COC), considering it an effective tool for preventing disputes and building an environment of peace, stability and prosperity in the region.
Singaporean Defence Minister Ng Eng Hen said reducing these threats by developing multilateral relations and frameworks to restore confidence through cooperation and consensus.
Meanwhile, the Chinese delegation failed to explain its groundless EastSea claim. Scholars asked head of the Chinese delegation, Lieutenant General Wang Guanzhong, to elaborate on China’s so-called ‘nine-dash line’ in the EastSea.
However, Wang, who is deputy chief of the general staff of the Chinese People’s Liberation Army, just said China is preparing for direct negotiations with each of the parties concerned. 
VOV

Article 8

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Social News Headlines 2/6

Lean pork paste proved to emit light

 seasonal diseases, Mekong Delta,  green building strategy

Information that lean pork paste was giving off light proved to be true and was witnessed by many people, said Truong Hoang Kien, deputy director of the Quang Ninh Food Safety and Hygiene Department.
Earlier on May 22, Do Van Tuan, a resident in Ha Long City, discovered that a piece of lean pork paste he had bought to use as fish bait was giving off a blue light and called his neighbours to see.
They washed the lean pork paste and cut it into many small pieces, but it continued to give off the blue light.
Later, food safety and hygiene agencies searched for the reason why the lean pork paste was emitting light, said Kien.
Vu Thi Hang, a lecturer at Ha Noi University of Agriculture, said the lean pork paste might be contaminated with phosphorus, which can be oxygenated, and give off light. People could suffer from food poisoning if they consume such food.
Hanoi to replace overhead cables
Authorities in Ha Noi are seeking to remove the enormous tangle of overhead electric lines, phone and television cables.
The move comes as part of efforts to meet the deadline called for in the city's plan in 2011 to bury all wires underground by 2015.
According to the municipal People's Committee, tangled wires are making the city ugly and posing a threat to people's lives.
Accordingly, the Lighting and Urban Equipment Company will work with the Ha Noi Power Corporation to remove all wires that are no longer in use. The corporation estimated that it would have to remove about 120km of low-voltage lines. It said one problem was determining which lines were still in use.
The municipal Department of Transport will also replace 784 electric and light poles.
Within this year, the city plans to re-arrange overhead wires in four areas in the inner city and clear up the communications lines.
The committee's Deputy Chairman, Nguyen Quoc Hung, said he had assigned the Department of Construction to work on the problem.
So far, the department has set up three options for the city. The first is to re-arrange the wires and tie into bundles, which is estimated to cost VND100 million (US$4,700) per kilometer. The second option is to add more poles and beams to support the wires, which will cost about VND2 billion ($95,200) per kilometre. The third is to replace all wires, which would be very costly.
The People's Committee will soon select a final option.
Illegal imported cigarettes seized
The Ha Noi Market Watch Department's Team No 5 on Saturday apprehended a coach that was concealing more than 3,400 packs of cigarettes from the central province of Quang Tri to sell in Ha Noi.
The illegally imported cigarettes, with the trademarks of Jet, Hero and George Karelias, were not enclosed with any papers designating their origin.
The cigarettes were hidden under the passengers' beds.
The driver, Tran Binh Trong, 39, admitted he was hired to transport the goods and was paid VND300,000 (US$14) for each trip.
Man seized while smuggling ecstasy
The Quang Binh Border Guards yesterday arrested a man who was transporting 600 tablets of ecstasy from Laos to Viet Nam.
The man, often called Son, 22, lives in Laos'KhammouaneProvince. He was apprehended at the Cha Lo Border Gate.
Son admitted to having transported the ecstasy to sell to people in the central provinces of Ha Tinh and Quang Binh.
Earlier last Friday, the Cao Bang People's Court on Friday handed down life sentences to two women, Le Thi Xuan, 42, and Hoang Thi Muot, 41, for selling heroin.
Xuan finished serving a sentence for selling heroin in 2008, but returned to selling the drug. Officials said she asked Be Van Hong, 42, a motorbike taxi driver, to contribute money and help sell heroin.
Xuan contributed VND100 million ($4,700), while Hong contributed VND200 million ($9,500), as they purchased more than 1kg of heroin from Muot.
Hong was arrested by the Ha Lang District Police while transporting the heroin to the border areas, as he intended to cross over to China to sell the heroin. She was sentenced to 20 years in prison.
Bike ride held for Environment Day
More than 500 people on Saturday took part in a bicycle ride in HCMCity's District 7 as part of activities to mark the World Environment Day this week (June 5).
The Bicycle Ride for a Green Environment event is organised by the Saigon Times Group and District 7 Sport Centre, and sponsored by the Consulate General of the US, HCMCity's AmericanCenter and Intel Viet Nam.
Participants were from all walks of life, including businesspeople, government employees, workers, diplomats and expatriates in HCMCity.
Rena Bitter, consul general of the US in HCMCity, who also joined the ride, said, "Climate change is a challenge shared by all people worldwide. One person cannot stop climate change, but together we can make a difference for the future."
The bicycle ride began and ended at Phu My Hung Financial Centre at Tan Trao Street, which was five kilometres and went through Tan Trao, Nguyen Luong Bang, Tran Van Tra, Nguyen Duc Canh and Nguyen Van Linh streets.
HCM City Buddhists pray for peace in East Sea
More than 1,000 Buddhist monks, nuns and followers in Ho Chi Minh City on June 1 prayed for peace in the EastSea following China’s illegal placement of its Haiyang Shiyou-981 oil rig in Vietnamese waters.
At the ceremony, which took place at Pho Quang Pagoda in Tan Binh district, the participants also launched a campaign to raise funds for fishermen, coast guard and fisheries surveillance forces who are constantly safeguarding national sovereignty at sea.
The Most Venerable Thich Tri Quang, Vice Chairman of the Executive Board of the Vietnam Buddhist Sangha cum Head of the HCM City Chapter, stressed that Buddhist monks and nuns always support the country in national construction and defence.
Also at the event, the Most Venerable Thich Duc Nghiep, Deputy Patriarch of the Vietnam Buddhist Sangha’s Patronage Council, delivered the Patriarch’s message for peace in the East Sea, calling on the Buddhist Association of China as well as Buddhist dignitaries and followers throughout the world to take concrete actions to support justice and urge the Chinese Government to implement its commitments under international law.
In his message, the Patriarch also asked China to implement its responsibility for protecting and preserving peace as well as respecting the independence, sovereignty and territorial integrity of neighbouring countries, including Vietnam.
HKI presents free eye care, glasses to 80,000 pupils
Helen Keller International (HKI) in coordination with the Vietnam National Institute of Ophthalmology (VNIO) provided free eye care check-ups and glasses for children in Quoc Oai district, Hanoi on May 31.
The benefits were part of a project on expanding eye care models for pupils under ChildSight programme that HKI has been carrying out in the district since September 2013.
The project has so far given free eye care check-up and glasses to 15,084 pupils in 27 primary schools and junior secondary schools in Quoc Oai. Around 1,440 pupils were found to be suffered from refraction disorder diseases, including 1,128 ones with short-sightedness.
It also presented some ophthalmologic equipment for Ha Dong Eye Hospital and some medical centres in Quoc Oai district.
In the near future, HKI will continue to support Quoc Oai GeneralHospital in developing a glasses installation department and HanoiEyeHospital in training 300 medical staff for schools and medical centres at wards and villages.
Thanks to initial success of a project on eye care project at schools under the ChildSight programme that HKI has implemented in Kon Tum province since 2011, HKI is expanding the model in some provinces and cities, such as Nam Dinh and Hanoi.
The programme has so far provided free eye care check-up and glasses for more than 80,000 pupils under 15 years old and conducted training courses on eye care skills for teachers and medical staff, and improved glasses installation skills for technicians.
It has also organized a number of communication campaigns to raise public awareness of the importance of eye care as well as the negative impacts of refraction disorder diseases among pupils.
HKI headquartered in the US has operated in Vietnam since 1990 through humanitarian activities, especially blindness prevention.
World Environment Day marks in Binh Duong
A meeting in response to the World Environment Day (June 5) was held Binh Duong province on May 31.
Addressing the function, Deputy Minister of Natural Resources and Environment Bui Cach Tuyen stressed that this year’s environment day, themed “Raise Your Voice Not the Sea Level”, offers a chance for Vietnamese people to join hands to cope with the difficulties and challenges posed by climate change and the rising sea level.
The measures taken by the community will also help prevent the increase of environmental pollution and degradation, thus ensuring the ecological balance and country’s sustainable development.
Tran Van Nam, deputy Chairman of the provincial People’s Committee, said together with developing the economy, Binh Duong has paid special attention to environmental protection.
Protecting the environment and coping with the consequences of climate change is an urgent and long-term task for the whole community, he stressed.
At the meeting, the committee presented certificates of merit to 59 organisations which have performed well in environmental protection.
Health sector takes action to stand by fishermen
The Ministry of Health has committed to standing by fishermen through a programme launched in Ly Son island district in Quang Ngai province, on May 31.
Minister Nguyen Thi Kim Tien said that the EastSea is the traditional fishing ground of the Vietnamese fishermen. Being in good health will help fishermen stay more frequently at sea, thus contributing to safeguarding the country’s sea and island sovereignty.
Through this drive, the ministry calls on the whole sector and social organisations to take practical actions supporting fishermen and officers in defending their sovereignty, she added.
On this occasion, the ministry presented medicine chests and first-aid kits to 300 offshore fishing vessels from Ly Son Island.
Free checks-up and eye surgeries were also offered to locals, while three courses are planned to equip fishermen with first-aid skills.
WFDY general council meeting concludes in Hanoi
The General Council meeting of the World Federation of Democratic Youth (WFDY) closed on May 31 in Hanoi after 5 days of working.
Sixty delegates from more than 20 countries and 30 youth organizations discussed political reports, reports on the 18th youth festival, major issues of member organizations, and future activities.
They also adopted a major resolution of the meeting which reiterated the federation’s position in the fight against wars, occupations, imperialism, as well as imperialist economic measures and intervention to maintain its control.
The organization of the WEDY General Council meeting in Vietnam shows Vietnam’s positive contributions to democratic youth movements and the global progress, as well as the federation’s members’ trust for Vietnam.
Haiphong ready for Sea and Island Week
The northern port city of Haiphong has established a 18 member organising board for Sea and Island Week 2014, led by Vice Chairman of Haiphong municipal People’s Committee Do Trung Thoai.
The city’s youth union has mobilized about 2,000 young people to participate in a meeting to commemorate the week in Do Son tourism area on June 7.
Cleaning and preparing the beaches in Do Son, Cat Ba and Bach Long Vi will be carried out after the meeting.
The event drawing the participation of 28 coastal cities and provinces is considered a chance to raise public awareness of protecting marine natural resources and defending the country’s sea and island sovereignty.
Provincial Department of Natural Resources and Environment Bui Quang Son said a Vietnam marine trademark forum in international integration is the highlight of the week which will also cover seminars and talks among scientists and experts.
South Africa, France mark ASEAN Sports and Family Day
More than 400 people including ASEAN embassy personnel and their families, along with members of the diplomatic community, came together in South Africa and France on May 31 for a day of camaraderie, friendship and fun.
At the event, Vietnamese ambassador to South Africa Le Huy Hoang emphasized that the event aimed to strengthen solidarity and cooperation among ASEAN countries.
A wide range of sports and cultural activities- football, table tennis- tug-of-war and jumping on bags, and Karaoke singing contest- were held,
Family Day was also celebrated in RisOrangisCity, Essonne province, France.
On the occasion, ASEAN countries introduced their special and traditional dishes. Vietnamese traditional dishes, such as sticky rice, roast pork and Nom (sweet and sour grated salad) attracted a large number of friends to taste.
HCMCity hosts Southern Fruit Festival 2014
As many as 40,000 visitors flocked to the opening ceremony of the 11th Southern Fruit Festival in Ho Chi Minh City on June 1, introducing visitors to the fascinating variety of fruits from southern Vietnam.
The week-long festival includes many activities, starting with a floating fruit market, selling more than 180 kinds of fruits on 70 boats at prices which are 20-40%lower than in the market.
The highlight of the event is the introduction of a collection of delicious and rare fruits from many localities nationwide.
Cooking demonstrations, folk games, and fruit-themed cultural performances are also organised for the fair.
Visitors to the festival also have a chance to enjoy southern amateur singing and participate in an exchange programme with art troupes from the Republic of Korea, Indonesia, Malaysia, Laos, and Cambodia.
Nguyen Thi Hong, HCM City People’s Committee Vice Chairwoman, said the festival running until June 8, aims to tighten the relationship among farmers, producers, distributors and consumers, increase trademark value and promote the image of Vietnamese fruits.
Nationwide activities mark International Children's Day
A myriad of activities to support children, especially those from disadvantaged backgrounds, have been held nationwide to mark International Children's Day on June 1.
A special art programme was held at the Ha Noi Children Palace on Saturday to entertain children with an aerobics performance and a fashion show.
Also, 18 children from poor homes but with outstanding academic records were presented with gifts, while five children with heart problems were granted free surgeries as part of the programme.
Elsewhere, a festival providing parents with knowledge to take care of their sons and daughters was held at the 23-9Park in HCMCity.
Further, municipal doctors and nurses performed free medical check-ups and distributed medicines for children, especially those with disabilities and HIV.
Meanwhile, the northern province of Ninh Binh organised a number of activities to equip children, particularly those from ethnic minority groups, with necessary skills for self-protection against social dangers.
The Central Highlands province of Gia Lai and the southern province of Binh Duong yesterday launched an official Action Month with the message of no violence and no harm to children.
That same day, local authorities from northern Ha Nam province visited and presented gifts to many children, and gave over 48,000 young children drinks containing Vitamin A.
On Saturday, staff of the Azerbaijan embassy in Ha Noi, together with the "Making Dreams Come True" Volunteer Group visited the children battling against cancer at the K Cancer Hospital in the city. The embassy donated various toys and books for more than 50 children aging from 1 to 16 years old.
HCMCity kindergartens tackle seasonal diseases
Kindergartens in HCMCity have taken preventive measures against diseases, especially hand, foot and mouth and dengue, which are heading for their peak season, and measles.
Anh Hong Private Kindergarten in Thu Duc District's Linh Xuan Ward cleans floors and toys with chemical disinfectants like Javel water and chloramine B each week. If the ward health centre announces that the kindergarten is situated in a region facing a risk of disease outbreaks, it will do so twice a week.
The kindergarten teaches kids to wash their hands to prevent diseases including hand, foot and mouth. Each classroom has lavaboes and soap for the children to wash their hands.
Posters explaining the causes of diseases and preventive measures and how to take care of children with diseases are stuck on notice boards.
Teachers ask kids' parents about their health every morning, and children with a high fever or illness are sent back home.
Kids who have not got two shots of measles vaccine are given the shots.
Huong Quynh Family-Based Child Care in Binh Tan District's Binh Tri Dong ward takes similar preventive measures.
Nguyen Van Ty, its owner, said that he has worked closely with the ward preventive health centre.
His teachers report any incidence of dengue or hand, foot and mouth disease to the centre.
Nguyen Huu Hung, deputy head of the city Department of Health, hailed the close co-operation between ward preventive health centres and kindergartens.
This has helped prevent diseases from spreading at schools, he added.
But he said kindergartens should put up more lavaboes and soap to ensure every child washes their hand.
Climate change starts to take its toll on Mekong Delta region
The effects of climate change are increasingly upon Viet Nam, especially in the southern provinces.
Nowadays, unlike in the past, at the end of May the climate in the region changes abruptly from hot and dry to very wet; the heavy rain is accompanied by thunderstorms and even hail.
This year this has killed shrimp on 10,000 hectares in the coastal provinces of Ca Mau, Soc Trang, Bac Lieu, and Tra Vinh.
"Last year 50 per cent of shrimp in Vinh Chau District, Soc Trang, died, causing a loss of VND110 billion (US$5 million)," Hai Nhiem, a local farmer, was quoted as saying in Sai Gon Giai Phong (Liberated Sai Gon) newspaper.
"This year we prepared very carefully but still lost 1,600 hectares."
Shrimp die of many causes like poor breeds and environmental pollution, but the major reason is drought.
In all coastal provinces like Ben Tre, Tra Vinh, Ca Mau, Bac Lieu, salt level in sea has been recognised to be higher than the same period last year. Especially, in Ca Mau, salinity level grows up to 30 per cent. The situation has caused the lack of fresh water and huge impacts to daily life and agricultural production.
In many places people are forced to buy a cubic metre of fresh water for VND200,000.
According to the Ministry of Agricultural and Rural Development, more than 100,000 hectares of cultivated land are threatened by saline floods now. Every year around 1.7 million hectares of land are threatened in this manner.
By the end of this century average temperatures in the region might rise by 1.3 - 2.8 degrees Celsius, rainfall by 4 - 8 per cent, and sea levels by 66 -99 cm.
And for every metre rise in the sea, 39 per cent of land in Mekong Delta will be flooded, seriously affecting 35 per cent of the population.
The Mekong Delta, the main rice, seafood, and fruit producing region for the country, is also the most vulnerable to climate change.
There are many plans to mitigate and cope with climate change, and most delta provinces have carried out projects, but they are not concerted and are instead mostly disjointed.
Concerted action is a crying need as are more studies to carry out comprehensive planning for the whole region. The role of protective forests is very important in coping with climate change but it has not been paid enough attention.
Recently thousands of mangrove trees were cut down in the Con Nang protective forest in Cau Ngang District, TraVinhProvince.
It made locals furious since mangrove forests help keep out the sea, prevent landslides, are a source of oxygen, and provide shrimp and fish a good habitat.
Clearly, local authorities in many places have yet to understand the role of protective coastal forests which act as a natural protection against the consequences of climate change.
VN adopts green building strategies
Representatives from Fairventures Worldwide FVW gGmbH and the University of Applied Sciences Stuttgart (Hft Stuggart) joined Vietnamese construction experts to introduce green building strategies at a workshop in Ha Noi last Thursday.
"Green building is an integral part of urban and rural sustainable development, contributing significantly to a country's sustainable development," said Pham Ngoc Dang, President of the Green Building Council Viet Nam and the Vietnamese Association of Construction Engineering and Environment.
During the workshop, the international audience was introduced to Viet Nam's national strategy framework for developing green buildings up to 2020. This framework covers nine major issues of green buildings, including environmentally sustainable building site planning and design, efficient use of energy, water and materials, air quality inside the building and waste minimisation.
By 2020, Viet Nam aims for 30 per cent of newly-built and renovated buildings using the State budget and about 10 per cent of those using private funds to qualify as green buildings. These numbers are expected to double by 2030.
"Green buildings are also fuelling a return to traditional materials and methods," said Andreas Loffler, Dean of the Hft Stuttgart‘s Architecture and Design School and Director of the Centre for Integral Architecture.
Loffler proved this point with a case study of buildings in the informal areas of Columbian big cities, which typically use adobe bricks and bamboo boards.
Pham Duc Nguyen from the National University of Civil Engineering and Tran Binh Minh, E4G's technical manager, introduced several appropriate architectural techniques for Viet Nam, where the climate varies considerably from region to region. These included passive design solutions like covering openings to protect the building from solar heat, changing the shape of the building and laying out interior spaces according to heating requirements.
Vietnamese in Canada protest China’s illegal acts in East Sea
More than 200 Vietnamese people in Canada on May 31 congregated in front of the Chinese Embassy in Ottawa to raise their objections to China’s illegal placement of its oil rig deep in Vietnam’s exclusive economic zone and continental shelf, which has seriously violated Vietnam’s sea and island sovereignty.
Holding up banners confirming Vietnam’s sovereignty over Hoang Sa (Paracel) and Truong Sa (Spratly) archipelagos, the demonstrators demanded China stop its illegal acts and withdraw the oil rig from Vietnam’s exclusive economic zone.
They also demanded China publicly apologise to Vietnam for its unilateral provocative acts that have caused injuries and compensate for the country’s economic loss.
At the beginning of May 2014, China illegally dispatched its oil rig Haiyang Shiyou-981, as well as a large fleet of armed vessels, military ships and aircraft, to Vietnam’s waters. The location was 80 miles deep inside Vietnam’s continental shelf and exclusive economic zone.
On May 27, China moved the rig to 15 degrees 33 minutes 22 seconds north latitude and 111 degrees 34 minutes 36 seconds east longitude. The new location is 25 nautical miles from TriTonIsland in Vietnam’s Hoang Sa archipelago and 23 nautical miles east-northeast from the old location, still completely within Vietnam’s exclusive economic zone and continental shelf.
With the move, China has kept on violating Vietnam’s sovereign right and jurisdiction.
At the same time, China’s armed vessels aggressively fired high-power water cannons and intentionally rammed against Vietnamese law enforcement and civil ships, causing damage to many boats and injuring many people on board.
“The major parade aims to draw attention from the local residents and international friends to the current situation in the EastSea and to advocate the protection of peace,” said Bui Quang Hien, an engineer from Montreal city.
He also expressed his hope that the Vietnamese Government will soon prepare its legal case to take China to an international tribunal.
China’s extremely dangerous acts have been directly threatening peace, stability and maritime security and safety in the EastSea .
Vietnam has exercised utmost restraint, shown every gesture of goodwill and exhausted all dialogue channels to communicate with the Chinese authorities of different levels for expressing protest and demanding China to immediately withdraw its rig and armed and military vessels from Vietnam’s waters.
Nevertheless, up to now, China has failed to respond to Vietnam’s legitimate demands. On the contrary, it has been slandering and blaming Vietnam while continuing to escalate the use of force and acts of violation in an increasingly dangerous and serious manner.
Da Nang students craft Hoang Sa, Truong Sa models
Students from secondary schools in the central city of Da Nang on May 31 crafted 26 replica models of ships, fishing boats and border markers to show their love towards Hoang Sa (Paracel) and Truong Sa (Spratly) archipelagos.
The models were then put on display together with nearly 30 prize-winning paintings by juniors, including some depicting scenic landscapes along the banks of the city’s Han River.
Mock-ups of Truong Sa archipelago and the entire Southeast Asia region were also among the exhibits.
The event is expected to encourage each student to safeguard national sovereignty over Vietnam’s seas and islands, said Vice Secretary of the municipal Ho Chi Minh Communist Youth Union Doan Xuan Hieu.
Source: VNN/VNS/VNA/VOV

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VAMC’s debt purchases hard to sell off

The Vietnam Asset Management Company (VAMC) has bought tens of trillions of dong worth of bad debts from commercial banks, but it has not made any considerable progress in selling the debts.

 VAMC, bad debt, debt purchase

The State Bank of Vietnam has released Circular No 09 on rescheduling the debt payment and maintaining the debt classification mechanism, which has led analysts to believe that VAMC still has huge debts to buy.
The chair of Eximbank, Le Hung Dung, said his bank would sell another VND1-1.5 trillion worth of bad debts to VAMC this year, following the sale of VND924 billion to VAMC in 2013.
Eximbank is the second biggest debt seller to VAMC so far, while the first position belongs to SCB, which has sold VND6 trillion and plans to sell more in the time to come.
Compared with banks with equal or higher total assets, Eximbank has the highest bad debt amount to be sold, analysts believe.
Sacombank and Vietcombank sold VND1 trillion last year, while ACB sold VND423 billion in 2013 and recently sold another VND80 billion in the first quarter of 2014.
Meanwhile, BIDV, which sold a record-high debt of VND1.4 trillion in 2013, plans to sell VND600 billion this year.
Analysts believe that Eximbank may want to sell more debts because of its rapid bad debt increase, though its bad-debt ratio is still not high enough to require the bank to sell debts.
The bad debt ratio of the bank had increased to 2.38 percent by the end of the first quarter from 1.93 percent late last year.
However, according to VAMC, the amount of bad debts it bought in the first quarter was very low.
It bought VND3.929 trillion from 10 credit institutions, which was much lower than the targeted level of VND10 trillion.
As such, VAMC has bought VND42.829 trillion worth of bad debts with VND35.448 trillion worth of special bonds issued.
Nguyen Quoc Hung, who has just taken office as chair of VAMC, said VAMC was trying to raise the total debt to be bought to VND70 trillion by the end of the year.
However, Hung admitted that VAMC needs to think more about how to sell the bought bad debts instead of trying to buy bad debts.
Analysts said that the VAMC’s debt settlement ability remains questionable because the unit still has not taken any considerable move to deal with the debts it has bought.
Hung would only say that VAMC had finished the bad-debt classification.
Regarding the plan for the immediate future, VAMC will sell debts worth VND1.4 trillion in a pilot program.
There are four expected debt buyers and all of them would be domestic investors because VAMC still cannot sell debts to foreigners, as the legal framework for such sales has not been created yet.
Hung also complained that, under current regulations, VAMC cannot sell big debts, and is limited to selling debts under VND10 billion, which, in effect, “clips its wings”.
Source: VNN/NCDT

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BUSINESS IN BRIEF 3/6

Foreigners, OVs to get VAT refunds as from July 1
Foreign visitors and overseas Vietnamese (OVs) will enjoy valued added tax (VAT) refunds at seven Vietnamese airports and seaports following the PM’s decision on May 30.
Accordingly, VAT refunds will be paid at four international airports namely Noi Bai in Hanoi, Tan Son Nhat in HCMCity, Da Nang and Cam Ranh, and three sea ports - Khanh Hoi (HCMCity), Da Nang, and Nha Trang as from July 1.
The Finance Ministry is requested to cooperate with relevant ministries, agencies and localities to implement this incentive policy.
The PM also called for strict management and examination on VAT refund declaration of goods purchased in Vietnam.
Ford Vietnam gearing up to expand nationwide
Ford Vietnam Limited recently announced it is investing VND72 billion in a new distributorship in Can Tho city and some new branches to benefit from the rising demand in the country’s fast growing auto market.
It has plans to open two new branches in Pleiku city and Hanoi.
An additional VND8 billion is being infused into its existing distributorship in Can Tho to modernise its equipment and facilities.
The investment is part of a plan to expand the company’s presence in the Vietnam marketplace nationwide. It currently operates from a three-storey complex spanning an area of 3,746 square meters with a total staff of 56 in Can Tho city.
The company’s CEO Arias Metelo said that concurrent with the expansion into Pleiku city and Hanoi it will also be offering an increased and more comprehensive line of products and services to customers.
Specifically, the company will be launching a new Ford Ranger Wildtrak 3.2L, sure to be a smashing hit with Vietnamese customers, he said.
Singaporean investors eye Vietnamese real estate market
Vietnamese and Singaporean real estate investors on May 30 toured a number of real estate projects aiming to get a better understanding of the opportunities for investment in the country.
SLP Group from Singapore said that it is keen on investments in residential, commercial office buildings and industrial parks. It is also aware that the Vietnamese Government is striving to open the market to make it more conducive to the attraction of foreign investment.
Investors said they want to develop a better understanding of the impact of recent changes in the laws, particularly those that relate to allowing foreigners to own real estate.
In Singapore, the property market is nearly saturated, while bare land is limited. Investors that want to develop, must expand overseas markets, and are eying Vietnam as a potentially lucrative target.
SLP Group CEO Tricia Teo said that housing prices in Vietnam are attractive and balanced with investment capital of businesses. In addition, foreign companies often have available funds and private real estate investment funds, along with clear strategies of development and professionalism.
The group wants to seek projects for investment cooperation and help the Vietnamese real estate sector with professional training and investment consultation.
Vietnam Real Estate Association Deputy General Secretary Tran Ngoc Quang also spoke highly and in detail about the investment cooperation opportunities in Vietnam for Singapore’s investors.
“The Vietnamese market is developing and all market forecasts confirm that this is a market with great potential,” he stressed.
Phu Yen selected as site for US$2.5 billion marina
Singapore-based marina club and property developer, ONE°15 recently has announced it has selected Vung Ro Bay in the central coastal province of Phu Yen to make its first-ever overseas investment.
It signed a memorandum of understanding (MoU) on May 26 with Vietnamese company Vung Ro Petroleum to develop a US$2.5 billion integrated marina resort in Vung Ro Bay.
The joint venture aims to transform the marina into one of the world’s finest yachting havens offering a comprehensive range of luxurious private club amenities catering, including a docking point for 350 yachts.
Plans also include for development of a 650-meter long shopping road in the centre of the project, providing luxury residential housing units for lease including ample space for schools, healthcare stations, outlets and entertainment.
As one of the world’s finest marine resorts, it will offer many kinds of the customary sports under-water activities.  
7th Kohler showroom opens in Vietnam
Kohler – the world’s leading kitchen & bath equipment design and manufacturing company – opened its 7th showroom in District 10 in Ho Chi Minh City on May 31.
The showroom spans over 400 sq.m, displaying roughly 1,000 kitchen and bathroom products.
At an inaugural ceremony, David Kohler, the company’s CEO, expressed his surprise at the changes and upbeat atmosphere in Ho Chi Minh City– the most dynamic city in Vietnam.
He said the event marks long-term development of the Kohler brand name in Vietnam and shows the company’s commitment to expand its investment in the Vietnamese market.
Kohler said his firm pledges to produce quality high-tech products with the Made-in-Vietnam label and attractive designs.
Dong Nai attracts US$600 million in FDI
In the five months leading up to June 1, southern Dong Nai province has garnered US$588.2 million in foreign direct investment (FDI), according to the provincial Department of Planning and Investment.
The Department reported that newly committed FDI for 28 new projects amounted to nearly US$248 million while supplemental capital for 25 existing projects tallied in at more than US$340 million.
FDI capital for the five-month period equates to 140% of that for the same period last year and amounts to 70% of this year’s plan
The investment license for a single US$4.3 million FDI project was revoked due to slow implementation during the period.
In total, 1,424 FDI projects with cumulative committed capital of US$24.965 billion have been granted licences in the province.
Mai Van Nhon, Vice Director of the management board of Dong Nai industrial parks, said the province is working with relevant departments and agencies to conduct trade and investment promotion programmes in the US and he fully expects FDI to continue its upward trend for the remainder of 2014.
The delegation has plans to work with the US Walmart Corporation through the American Chamber of Commerce (AmCham) and to seek US investment in the retail industry, supermarkets and material production zones to serve the local garment and footwear sectors.
PM adds more exit points for tax breaks
Foreigners will enjoy value-added tax (VAT) refunds at more border gates when they exit from Vietnam starting July 1, following approval by Prime Minister Nguyen Tan Dung.
In his document issued on May 30, the Prime Minister agreed to increase the number of border gates accepting VAT refunds from two to seven. They include the four international airports of Noi Bai in Hanoi, Tan Son Nhat in HCMCity, Danang in DanangCity and Cam Ranh in KhanhHoaProvince. Three international harbours are also on the list, including Khanh Hoi in HCMCity, Danang in DanangCity and Nha Trang in KhanhHoaProvince.
The new regulation is in accordance with the Government's decree regulating that foreigners and Vietnamese residing in foreign countries and possessing passports or visas which are issued by foreign competent agencies, shall be refunded for goods purchased in Vietnam and taken along upon exit.
In 2012, a pilot VAT refund scheme for foreigners and overseas Vietnamese passing through the country's two largest airports of Noi Bai in Hanoi and Tan Son Nhat in HCMCity started on July 1. Four VAT stations and two checking stations in the two airports were set up as part of the scheme. So far, there have been 69 enterprises joining in the pilot programme, along with 268 shops nationwide.
After two years, the scheme has received positive results as the number of foreigners enjoying VAT refunds, as well as the refunds, have reportedly increased.
According to the Vietnam Customs statistics, as of February this year, there had been more than 8,600 people receiving the VAT refund. The total value of goods has been reported up to VND425 billion (over US$20.2 million), equivalent to VND32.9 billion (US$1.6 million) of VAT refunds. Of those, more than 8,000 cases were refunded in HCMCity, with the total value of goods up to VND390 billion (US$18.5 million), equivalent to VND30billion (US$1.4 million) of VAT refunds.
VAMC sets annual target for debt purchases
The Vietnam Assets Management Company (VAMC) plans to purchase between VND70 trillion (US$3.17 billion) and VND100 trillion (US$4.74 billion) worth of non-performing loans (NPL) this year, according to a source from Dau Tu (Investment) newspaper.
The paper quoted the State Bank of Vietnam's Chief Inspector Nguyen Huu Nghia as saying that the central bank outlines a NPL purchase and sale plan together with several measures to help VAMC reach the goal.
Nghia said the total NPLs that credit institutions want to sell to the VAMC climbed to VND30 trillion (US$1.42 billion). The number of NPLs is expected to increase after the issuance on June 1 of two circulars that provided classification of assets, the levels and methods of setting up of risk provisions, and the use of provisions against credit risks in banking activities of credit institutions and foreign banks' branches.
The two circulars contain detailed information on NPLs, and reveal that debts will increase.
Nghia, however, said the two circulars will also create a safe foundation for the credit institutions to better implement their risk administration work, and restructuring as well as settlement of NPLs.
"So far this year, the VAMC has bought more than 6.3 trillion worth of NPLs, thus increasing the total NPLs that the company has purchased to VND45 trillion. In addition, the banking sector itself has already settled NPLs worth about VND10 trillion," he said.
Recently, the central bank approved the volume of special bonds to be issued so the VAMC would be able to accelerate its purchase of NPLs in the coming time.
By the first quarter of this year many commercial banks announced that their potentially irrecoverable debts had increased strongly even though their NPLs ratio was under 3%.
For instance, Vietcombank's potentially irrecoverable debts had gone up by 10%, to VND3 trillion. Meanwhile, BIDV's irrecoverable debts had also been raised by 32% to VND5.56 trillion, and ACB's VND2.3 trillion.
In an attempt to increase the settling of NPLs, Nghia said one of the measures that the central bank will immediately apply is to ask the VAMC and credit institutions to jointly build debt purchase and sale plans each month.
Vietnamese industrial fasteners face anti-dumping lawsuit in US
US Mid Continent Steel & Wire, Inc has lodged complaints with the US Department of Commerce (DOC) alleging Vietnam and six other countries illegally dumped industrial fasteners on the US market causing material damages to US firms.
The Competition Management Agency (CMA) under the Ministry of Industry and Trade said that  US Mid Continent Steel & Wire asked the DOC to conduct an anti-dumping probe of industrial fasteners (screws, bolts and nuts) imported from 7 countries, including Vietnam.
This is the fourth anti-dumping lawsuits against products imported from Vietnam following similar suits involving P.E plastic bags, carbon welded steel pipes and steel wire garment hangers.
The DOC is scheduled to issue its decision on June 18, 2014.
According to the US statistics, Vietnamese metal fastener exports to the US reached US$41 million in 2013, an increase of 42% from a year earlier. They hit US$9.3 million in the first four months of this year.
Vietnamese products featured at Algerian fair
Vietnamese companies are showcasing their high-quality Made-In-Vietnam products and services at the 47th Algiers International Trade Fair, taking place in the Algerian capital from May 28 to June 2.
At the traditional ribbon cutting ceremony opening the fair, Vietnamese trade counselor Nguyen Van Mui and Algerian Prime Minister Abdelmalek Sellal toured the Vietnamese pavilions which featured an array of construction materials, plastics, leatherette, food, spices, and handicraft products.
Trade counselor Mui told PM Sellal that Vietnamese companies are specifically keen on partnering with Algerian companies in such fields as infrastructure, housing, consumer goods products, and aquaculture.
He highlighted the results of fruitful bilateral trade ties in recent years, noting that last year’s two-way trade turnover reached over US$280 million, up 37% compared to the figure recorded in 2012.
In the first four months of this year alone, two-way trade between the counties was estimated at US$124 million, up 39% from a year earlier, he said.
PM Sellal said that his nation could benefit tremendously from Vietnamese expertise and investment in the housing sector and production activities, as well as food processing, services, energy, electricity, electronics, garment and textile, and mechanical engineering.
This year’s event drew participation of about 680 businesses from 37 countries around the globe.
Vietnamese goods struggle to compete
The Vietnamese-To-Use-Vietnamese-Goods campaign plays an important role in building a consumer culture that learns to purchase Vietnamese products and manufacture more Vietnamese goods of high quality.
However, there remains many challenges in serving the local market and in exporting locally made goods. Business insiders and policy-makers have to seek solutions to handle these challenges.
It is reported that at least 80-90 per cent of Vietnamese goods are now on the shelves of many supermarkets. However, the Ministry of Trade and Industry said that distribution channels of Vietnamese goods in rural areas had not been stable and product promotion remains poor, resulting in low competition among local products.
A representative of Intimex Supermarket attributed the selling bottleneck of Vietnamese goods to poor market research and distribution channels. As a result, local consumers have difficulty accessing high-quality Vietnamese goods.
In addition, local consumers still prefer foreign trademarks, therefore, the question is what does the country do to change Vietnamese consumer habits?
Actually, Vietnamese consumers do not dislike Vietnamese goods, though they do not have enough information and often lack confidence in domestic producers.
Vu Kim Hanh, the chairwoman of the Association of High-Quality Vietnamese Goods Producers, said Vietnamese goods find it difficult to compete with goods produced in Viet Nam by multinational companies, adding that if distributors give priority to selling multinational companies' goods, Vietnamese goods will have no place in supermarkets.
Hanh said many local producers have now invested in upgrading their technology to manufacture high-quality products to meet local demands. Many of them have acknowledged the position and importance of local markets and work out strategic plans on distribution, marketing and advertising to raise their reputation and the quality of their trademarks for domestic consumers.
Le Viet Nga, Deputy Director of the Ministry of Industry and Trade's Domestic Market Department, said the ministry had proposed a scheme, known as "Viet Nam's Pride", to change consumer habits of local customers through the strengthening and diversification of communication and promotion campaigns.
This scheme has also set a target of increasing market share to at least 80–100 per cent of distribution channels in cities and provinces by 2020.
To reach this target, it required State authorised agencies, professional associations and mass media agencies to develop programmes to honour entrepreneurs, businesses, organisations and individuals who have obtained outstanding achievements in the campaign to give priority to use Vietnamese goods.
Deputy Minister of Industry and Trade Do Thang Hai said his ministry also worked closely with ministries and localities to determine market forecasts and supervise the real situation, to work out timely measures to intervene and stabilise the domestic market.
Hai also proposes the Central Steering Committee for the Campaign instruct relevant bodies and localities to continue raising awareness among the entire community about this campaign.
He said this year and next years, Viet Nam manufacturers would have to do their utmost to enhance product competitiveness against imported products of the same type. He noted that despite good communications, the quality of many products remains poor and it is often difficult to persuade consumers to purchase locally made products.
Trade programme aims to open up new markets
Trade promotion centres from southern cities and provinces met in HCMCity on Friday to enhance cooperation between provincial trade organisations.
The representatives of trade centres in the region signed an agreement on a trade and investment cooperation programme that will be carried out from now to the end of 2020.
The programme is focused on efforts to enhance trade promotion, expand local and overseas markets, and promote goods and services of each province.
They will also work together to exploit the potential of each locality for socio-economic development.
In addition, the provincial trade promotion centres will jointly hold seminars, forums and organise training courses to improve trade promotion skills of their staff, and enhance the areas of communications and information as well.
Trade promotion programmes for the domestic market will include "Vietnamese goods fairs" to be held in residential areas and industrial parks, helping to bring locally manufactured goods to remote and rural areas.
Provincial trade fairs will include the HCM City Hi-Tech Trade and Agricultural Fair 2014; and the agricultural, industrial and trade fair of the southeastern provinces to be held in Binh Thuan, and the international trade fair in Can Tho.
Also, there will be a trade fair in Lam Dong; an international trade fair in the Mekong Delta in Kien Giang; the Mekong Forum 2014 in Soc Trang; Ba Ria – Vung Tau Trade Fair; the southeastern provinces' trade fair – expo in Binh Duong; and the Tourism – Trade Fair 2014 in Da Lat.
Overseas trade promotion campaigns will include market study tours of ASEAN countries, including Cambodia, Myanmar; Laos, Singapore, Indonesia and others.
The HCM City Trade Promotion Centre will also take part in the Viet Lao Trade Fair 2014 and the ASEAN – India Trade Fair 2014 and organise seminars such as "Experiences for exports to ASEAN markets" seminar and exports forums.
The Can Tho Investment – Trade – Tourism Promotion Centre will conduct a market study tour of Dubai and join the Big 5 Dubai 2014.
The participating provinces include An Giang, Ba Ria – Vung Tau, Bac Lieu, Ben Tre, Binh Duong, Binh Phuoc, Binh Thuan, Ca Mau, Can Tho, Dong Thap, Hau Giang, Kien Giang, Lam Dong, Long An, Soc Trang, Tay Ninh, Tien Giang, Tra Vinh, Vinh Long, and others.
HCMCity suburb seeks investment
The Investment and Trade Promotion Centre of HCM City in collaboration with the city's Northwest Metropolitan Area Authority on Saturday organised a conference to call for investment in the city's Northwest Metropolitan Area.
Located in Hoc Mon and Cu Chi districts 30km away from the city's centre, the NWMA connects directly with many strategic transportation roads that link the city with Long An and Tay Ninh provinces as well as an international seaport and airport.
It is also a gateway to the Trans-Asia Road, an integrated freight railway network across Europe and Asia.
The 9,000ha area is planned to become an ecological and modern urban area of the city, increasing development of the city's northwestern region as well as the adjoining provinces of Long An and Tay Ninh, according to Nguyen Van Thanh, chairman of the Northwest Metropolitan Area Authority.
It will contribute to the shift from an agricultural-based to services-based economy, creating more jobs and reducing traffic overload as well as population in the inner city.
As planned, the area is home to commercial and business services centres, shopping, hospitals, cultural and educational centres as well as sport and athletic training, entertainment centres, resorts, industrial parks and others.
Some projects under construction in the area included the Kenh Dong water plant, Tan Phu Trung Industrial Zone and Cu Chi Golf Course, said Huynh Minh Cuong, deputy chairman of the Northwest Metropolitan Area Authority.
Cuong said the area wanted to call for investment in building of inner roads, as well as projects to build residential areas, commercial and service centres, schools, universities and hospitals.
Investors will enjoy common incentives offered by the city such as land rental and tax incentives. For large projects, if asked, the area authority will petition the municipal government to offer more incentives.
The area, together with the Phu My Hung Urban Area and Thu Thiem New Urban Area, are the three major urban areas in HCMCity.
Gov't revises golf course plan
Prime Minister Nguyen Tan Dung has signed an order revising the government's development plan for golf courses until 2020 by removing nine from the list and adding 15 others.
Of the nine golf courses which are no longer part of the list, two were to be located in the northern provinces of Hoa Binh and Quang Ninh; four in the central provinces of Thua Thien-Hue, Binh Thuan and Khanh Hoa; and three in the southern provinces of Long An, Lam Dong and Dong Nai.
Of the 15 additional golf courses, seven would be located in the northern provinces and city of Hoa Binh, Phu Tho, Thai Nguyen, Quang Ninh, Yen Bai, Ha Nam and Hai Phong; six in the central coastal provinces of Thua Thien-Hue, Khanh Hoa, Binh Thuan; and two in the southern provinces of Tay Ninh and Long An.
Ninety-six golf courses will remain in the plan for development by 2020.
The Prime Minister asked the Ministry of Planning and Investment to formulate a plan to revise the criteria and conditions of constructing golf courses as well as the regulations governing the courses' operations and management. The ministry will be requested to submit it to the prime minister in 2015.
Central city ramps up PPP projects
The Japan International Co-operation Agency (JICA) will support Public-Private-Partnership (PPP) projects in the central city ahead of ramping up assistance for PPP projects through out Viet Nam in the future.
Assistant director of JICA's Private Sector Investment Finance division, Oyama Tomohide, made the pledge at a recent conference on capital mobilisation for PPP projects in Da Nang.
"JICA will give assistance to private companies in the city to improve skills and management of PPP projects. Most private companies in the city and Viet Nam have little experience in managing the investment model," said Oyama.
"JICA will negotiate with the Japanese government in providing the Project Development Fund (PDF) or Viability Gap Funding (VGF) for boosting the capacity of private sectors," he said, adding that nearly all of the private sector was seen as lacking skills and proper management when operating PPP projects.
He said JICA has been helping Da Nang complete the pre-feasibility studies (PFS) for two projects, the Hoa Lien Water supply plant and Khanh Son waste treatment plant, this year.
Vu Quynh Le, deputy director of the Procurement Management Agency under the planning and investment ministry, said Viet Nam's infrastructure was in need of more funding, but the country could only supply about 20 per cent of the total fund.
"It's a big imbalance between infrastructure and investment. Viet Nam needs at least US$40 billion, but can only supply around $8 billion. The dilemma is the result of Viet Nam's failure to provide a complete set of laws or instructive documents governing PPP projects, posing many challenges for the private sector," Le said at the conference.
"The government only launched decrees on Building-Operation-Transfer (BOT), Building-Transfer-Operation (BTO) and Building-Transfer (BT) projects as well as a decision on pilot PPP project," she explained.
She said only 300 BOT, BTO and BT projects, comprising 10 FDI projects, have developed since 2010. While no PPP projects had proceeded from 2010.
She added that Da Nang was a frontrunner in Viet Nam in deploying PPP projects, as they had co-operated with JICA on key projects.
Le Thi Phuong Lien, from the city's department of planning and investment, said the city had joined with the Asian Development Bank and the International Finance Corporation in conducting feasibility studies of some public transport and waste treatment projects four years ago.
"We positively co-operated with JICA in 2012 in preparation process for PPP projects. We hope to complete FS of two major PPP projects – the Hoa Lien Water Plant and Khanh Son Waste treatment plant next month," Lien said.
"We face too many problems including personnel training, skills of management and negotiation with PPP projects, while pubic investment is limited," she said.
She added the city had also inked co-operation deals with Singapore's Tamasek for capacity training in PPP projects, backed by a total fund of 324,000 Singapore dollars (US$258,000) for 2014-15.
Da Nang has also flagged 16 potential PPP projects relating to environmental sustainability, software parks, hospitals and infrastructure.
Two projects, the Hoa Lien Water supply plant and Khanh Son waste treatment plant, are estimated to be worth US$259 million.
Pilmico acquires Vietnamese feeds firm
The Philippines’ Pilmico International Pte. Ltd. has established a foothold in the booming local animal feed market with the purchase of a controlling stake in Vinh Hoan 1 Feed JSC.
Pilmico International and Vinh Hoan Corporation last week signed an agreement under which the former would acquire a 70 per cent stake from the the fourth largest aqua feed producer in Vietnam.
The transaction is expected to close in July 2014.
Pilmico International, a wholly-owned subsidiary of Aboitiz Equity Ventures Inc., will purchase the remaining 30 per cent within five years at a pre-agreed price set out in the agreement. The value of the transaction is approximately $28 million.
Business Development Asia (HK) Ltd. acted as financial advisor and Honor Partnership Law Company Limited acted as legal advisor to Vinh Hoan, while Indochina Capital Corporation acted as financial advisor and Gide Loyrette Nouel A.A.R.P.I acted as legal advisor to Pilmico.
Sabin Oboitiz, President and CEO of Pilmico noted, “We are delighted to have this opportunity to expand our feed business and enter Vietnam with such a strong and well respected partner as Vinh Hoan Corporation.”
AEV, through its subsidiary Pilmico Foods Corporation (Pilmico), manufactures and sells flour, feed and their by-products.
Truong Thi Le Khanh, chairwoman of Vinh Hoan Corporation said her corporation and Pilmico would conduct joint research in feed formulation in order to produce the highest quality pangasius, a type of catfish, products to customers worldwide.
Vinh Hoan 1 Feed JSC is a leading supplier of aqua feed based in Dong Thap province. Founded in 2007, it operates a 130,000 tonne a year aqua feed facility producing primarily pangasius feed. Its research and development team operates a pilot farm facility that continuously strives to improve pagnasius health and productivity. It is owned by Vinh Hoan Corporation, the largest producer and exporter of pagnasius in Vietnam.
S&P and Moody’s say Vietnam credit rating stable
Standard and Poor’s (S&P) and Moody’s have said they would maintain the credit rating for Vietnam despite tensions in the East Sea, short-term insecurity in some parts of the country and investor concerns over a possible fall in investment prospects.
The Singapore offices of the two credit rating agencies told the Saigon Times that the dispute regarding China’s placement of Haiyang Shiyou-981 oil rig within Vietnam’s exclusive economic zone and continental shelf would not impact credit rating prospects for Vietnam.
S&P explained China’s intrusion into Vietnam’s maritime sovereignty is a short-term move in a series of actions China has been taking as part of a long-term strategy to occupy the entire EastSea.
S&P said no one knows for sure how far China would push the situation but the company believed the governments of the two countries would practice restraint to prevent the situation from escalating into a military conflict.
Concerning the recent riots in some provinces of Vietnam, S&P said this was a short-lived reaction of some extremist protestors to China’s unilateral aggressive actions. This rating agency hailed the Government’s efforts to put the situation under control and prevent similar incidents from threatening the safety of foreign investors in Vietnam.
Regarding negative investor sentiment on the stock market, gold prices and exchange rate, which might indicate foreign capital outflows, S&P said any upheaval certainly caused negative investor reactions. Therefore, S&P is not worried about the situation in Vietnam.
According to the agency, the impact of EastSea tensions on Vietnam’s credit ratings is not as strong as that of other issues such as China’s economic slowdown which will directly or indirectly affect Vietnam’s gross domestic product (GDP) and export growth in the coming time. This is the very factor which S&P will look at when evaluating Vietnam’s credit rating.
Therefore, domestic and international investors in the near term can be confident in Vietnam’s stable outlook. However, it is notable that S&P and Moody’s made the comments based on the assumption that the situation would not escalate dangerously and pose higher risks for Vietnam.
Deutsche Bank names new CCO and head of Global Transaction Banking, Vietnam
Deutsche Bank on May 28 announced the appointment of Jens Ruebbert as chief country officer (CCO) and head of Global Transaction Banking (GTB), Deutsche Bank, Vietnam, effective immediately.
In his capacity as CCO, Vietnam, Ruebbert will report to Gunit Chadha and Alan Cloete, co-chief executive officers, Asia Pacific, and members of the Group Executive Committee, Deutsche Bank AG. As head of GTB in Vietnam, he reports to Lisa Robins, head of Global Transaction Banking, Asia Pacific, Deutsche Bank AG.
Ruebbert has held various senior positions in Deutsche Bank during his career. Most recently he was managing director and chief operating officer, Deutsche Bank (China) Co., Ltd. He has extensive senior management experience across functions and geographies having worked in Germany, Hong Kong, Singapore, Turkey and China.
Banks reluctant to lend to small firms
Though liquidity in the banking sector is high, Ho Chi Minh City-based banks are not lending to small and medium-sized enterprises.
Outstanding loans to this category of borrowers have not increased for the last six months, Do Minh Toan, general director of Asia Commercial Bank, admitted.
He said this was mainly because small and medium companies mainly borrow against property and since property values have slumped, banks are no longer willing to accept them as security.
Phan Huy Khang, director general of Sacombank, said short-term credit has grown slowly, especially to SMEs.
His bank’s credit grew by just 4.5 percent in the first four months this year to VND116 billion (US$5.45 million), with SMEs accounting for 2.5 percent.
An Agribank spokesperson also said the bank found it very difficult to lend amidst the economic crisis.
Banks prefer to lend to well-performing businesses that do not need their loans and close their doors to loss-making companies, a manager at a major bank admitted.
SMEs are mired in difficulties and the number of them closing down and bad debts at bank are on the rise, he said.
Adding to the problem is the fact that the property market has not recovered, he added.
Credit growth at HCMC banks this year is 8.14 percent, with outstanding loans going up to VND965 trillion ($45.36 billion), according to To Duy Lam, director of the State Bank of Vietnam’s city office.
According to Lam, 80 percent of banks’ loans were for production or trading and the rest for buying property and stocks and consumption.
Banks reluctant to lend to small firms
Though liquidity in the banking sector is high, Ho Chi Minh City-based banks are not lending to small and medium-sized enterprises.
Outstanding loans to this category of borrowers have not increased for the last six months, Do Minh Toan, general director of Asia Commercial Bank, admitted.
He said this was mainly because small and medium companies mainly borrow against property and since property values have slumped, banks are no longer willing to accept them as security.
Phan Huy Khang, director general of Sacombank, said short-term credit has grown slowly, especially to SMEs.
His bank’s credit grew by just 4.5 percent in the first four months this year to VND116 billion (US$5.45 million), with SMEs accounting for 2.5 percent.
An Agribank spokesperson also said the bank found it very difficult to lend amidst the economic crisis.
Banks prefer to lend to well-performing businesses that do not need their loans and close their doors to loss-making companies, a manager at a major bank admitted.
SMEs are mired in difficulties and the number of them closing down and bad debts at bank are on the rise, he said.
Adding to the problem is the fact that the property market has not recovered, he added.
Credit growth at HCMC banks this year is 8.14 percent, with outstanding loans going up to VND965 trillion ($45.36 billion), according to To Duy Lam, director of the State Bank of Vietnam’s city office.
According to Lam, 80 percent of banks’ loans were for production or trading and the rest for buying property and stocks and consumption.
Hoa Phat to increase production line
The Ministry of Industry and Trade has green-lighted the proposal from domestic steel maker Hoa Phat to increase the production of iron billet at its existing factory in Hai Duong province, which the ministry has included in its master plan to 2020 with a vision to 2025.
Specifically, the Hoa Phat complex will add a capacity of 550,000 million tonnes of steel billet with an estimated capital of VND2.5 trillion ($119 million). The expansion is expected to run to early 2016 after starting construction at the end of this year.
Hoa Phat is one of the leading private steel-makers in Vietnam. It started building the first phase of its Hai Duong steel factory in 2007. Two years later it was operational. In 2012 it built the second phase, which went into operation at the end of 2013 with a capacity of 500,000 tonnes a year.
The People’s Committee of Hai Duong, in a document sent to the Ministry of Industry and Trade, said the province supported the project because Hoa Phat was already ensured material input sources, power supply and was planning to apply advanced production technology. Additionally, the expansion would not require any additional land, as the current site has room to spare.
Amid difficulties in the steel sector, Hoa Phat Group has had a very successful first quarter, according to its annual report.
Chairman Tran Dinh Long said, “While many enterprises have cut down on the number of employees, in 2013 the grup directly employed 10,000 and had another 20,000 indirect employees nationwide.”
Steel production continues to be the chief contributor to the group’s total revenue and profit. In 2013, its steel output was 727,000 tonnes, an increase of 17 per cent compared to 2012, while sales of construction steel grew to 699,000 tonnes, an increase of 14 per cent from 2012.
Hoa Phat has set a production volume target of 800,000 tonnes of construction steel for the domestic market while it has continuously expanded its base export market. In other segments of its industrial manufacturing, the group is aiming for a 15-20 per cent growth in revenue.
VAMA irked over slow online customs system
The Vietnam Automobile Manufacturers’ Association last week expressed its concerns over potential difficulties resulting from changes to customs procedures on imported cars.
According to the association (VAMA), since April the Vietnamese customs authority has applied a new E-customs system called VNACCS/VCIS in many provinces and cities nationwide.
According to Jesus Metelo N. Arias Jr, chairman of VAMA even though the new system has many advantages, it also has limitations.
He noted that the system has difficulties when it is overloaded with users because the inner transmission line is not fast enough to handle all the traffic.
“Invoices from VAMA members on importing spare parts for cars can include thousands of different items, and the new system only allows a maximum of 50 items per declaration paper. Therefore, importers have to fill out dozens or even hundreds of the same forms to complete the process,” he said.
Also, under the new system, after completing customs declarations at the local Customs Office, VAMA members have to do procedures at border gates before having the goods passed over to them. There, they wait for customs officers to print out their declaration papers from the network and check the list. This process takes considerable time due to the aforementioned repeating of forms and slow transmission speed.
In reality, many VAMA members said it takes around 3 to 5 minutes per document to print, therefore if the importer has 100 forms due to thousands of parts, this process could take from 5 to 8 hours.
This length of time does not include situations where the information and figures have not reached customs, even if importers show up with copies of the required dossiers.
“This takes much more time for processing, up to 2-3 days compared to before. Even customs officers have tried their best to help and support importers,” said Jesus Metelo N. Arias Jr, chairman of VAMA.
According to Arias Jr, since the new customs procedures were applied, some VAMA member factories have had to shut down for several hours at times due to a lack of spare parts.
“This hurts business and drives up manufacturing expenses,” Jesus said.
To rectify the situation, VAMA has suggested the Ministry of Finance and the customs authority instruct customs officials to allow VAMA members with declaration papers signed and sealed from local customs to receive their goods at border gates, regardless of the information coming through the online system.
VAMA added that this would give customs time to resolve current issues such as the slow transmission time.
VAMA raised this concern in April this year when it saw an increase in sales revenue of 5 per cent against the previous three months.
VAMA expects its members to have a capacity of 125,000 cars this year. By the end of April its members had domestically assembled 30,585 cars, an increase of 24 per cent on-year. Imported car purchases in 2014 have risen 89 per cent compared to the same period last year.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR

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Ministry urged to hasten support to riot-affected workers

 
Illustrative image (Photo: VNA)

Deputy Prime Minister Vu Van Ninh has asked the Ministry of Labour, Invalids and Social Affairs to continue instructing localities to assist workers who had to stop working due to recent social disorders.

The workers will receive wages during their days-off between May 12 and July 1, the day before those enterprises are scheduled to resume their normal operation.

The payment is equivalent to the wage level agreed upon by affected enterprises and labourers or their representatives, but not below the minimum level prescribed by the Government. The expense used to pay workers would be deducted from corporate income tax later.

The disturbances in some localities, including central Ha Tinh and southern Binh Duong and Dong Nai provinces, erupted during workers’ rallies against China’s illegal placement of its oil rig Haiyang Shiyou – 981 in Vietnam’s continental shelf and exclusive economic zone from early May.

Some extremists incited others to destroy the property of foreign firms, as well as some national businesses and individuals, and acted against law enforcement officials, disrupting social order and business activities.

Authorities have arrested and brought to trial hundreds of rioters.-VNA

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Workers hospitalised due to suspected food poisoning
About 170 employees of Nienshing garment company in northern Thai Binh province have been admitted to hospital with suspected food poisoning.
The victims were sent to Thai Binh provincial hospital and near-by Hoang An and Lam Hoa hospitals on June 2 after showing symptoms of food poisoning, such as stomachache and vomiting.
They were reported to have eaten dinner at their work place on June 1 before being hospitalised the next day.
Thai Binh provincial Department for Food Hygiene and Safety head Le Van Dien said poisoned workers purchased their meals at Dung Hop business, which was also attributed to a previous large-scale food poisoning case involving 160 workers from Phuc Khanh industrial zone in Thai Binh, in August 2012.
The cause of the suspected food poisoning is currently under investigation.
Chinese citizen supports Vietnam’s sovereignty over Hoang Sa
Xisha islands - Hoang Sa (Paracel) archipelago – should belong to Vietnam as both mainland China and Taiwan have never actually controlled this territory, said Chinese citizen Zhang Pei Qiang.
In a comment sent to VOVWorld website of Radio the Voice of Vietnam (VOV), Zhang Pei Qiang expressed his hope that the situation in the South China Sea (EastSea) will not detrimentally affect relations between Vietnam and China.
He said both countries should settle the issues through peaceful negotiations to ease tensions and prevent another violent conflict like it was in 1979, in which  the two countries suffered bad consequences.
Bulgaria-Vietnam parliamentarians’ group backs Vietnam in EastSea issue
The Bulgaria-Vietnam Friendship Parliamentarians’ Group has voiced its backing for Vietnam in the EastSea issue after China illegally positioned its oil rig deep inside Vietnam’s waters in early May.
After being briefed by Vietnamese Ambassador Le Duc Luu, the group’s President MP Dimitar Dubov said that as a European Union member, Bulgaria totally supports the May 8 statement by the EU High Representative for Foreign Affairs and Security Policy, which said that unilateral actions could affect security in the region.
The group called on China to refrain from any unilateral act that can damage peace and stability in the region, while respecting the 1982 United Nations Convention on the Law of the Sea and the 2002 Declaration on the Conduct of Parties in the EastSea, to which China itself is a signatory.
It also asked parties involved to carry out negotiations to settle disputes in peaceful ways and ensure safety, security and freedom of navigation in the EastSea.
In addition, the Vietnamese community in Sri Lanka on June 1 gathered to show their support for officers and soldiers who are conducting their law enforcement tasks around the area China’s drilling rig is illegally standing.
At the beginning of May, China illegally dispatched the rig Haiyang Shiyou-981 as well as a large fleet of armed vessels, military ships and aircraft to Vietnam’s waters, and positioned the rig at 15 degrees 29 minutes 58 seconds north latitude and 111 degrees 12 minutes 06 seconds east longitude. The location is 80 miles deep into Vietnam’s continental shelf and exclusive economic zone.
On May 27, China moved the rig to 15 degrees 33 minutes 22 seconds north latitude and 111 degrees 34 minutes 36 seconds east longitude. The new location is 25 nautical miles from TriTonIsland in Vietnam’s Hoang Sa archipelago and 23 nautical miles east-northeast from the old location, still completely within Vietnam’s continental shelf.
China’s armed vessels aggressively fired high-power water cannons at and intentionally rammed against Vietnamese public-service and civil ships, causing damage to many boats and injuring many people on board.
Mongolia-Vietnam Friendship Association condemns China's actions
The Vietnam-Mongolia Friendship Association (VMFA) has issued a joint statement expressing concern about the current EastSea situation after China put the oil rig Haiyang Shiyou-981 in Vietnam’s exclusive economic zone and continental shelf.
A Vietnam-Mongolia Friendship Association delegation led by its Chairman Ho Xuan Hung visited Mongolia from June 1-6 as part of the celebration for the 60th anniversary of Vietnam-Mongolia diplomatic ties (1954-2014).
To mark the event, the Vietnam-Mongolia Friendship Association (VMFA) and the Vietnamese Embassy in Mongolia have hosted a business roundtable discussion.
At the seminar, the two sides agreed that unilateral actions by China in the East Sea is a serious violation of the sovereignty, sovereign rights and jurisdiction of Vietnam stipulated by the 1982 UN Convention on Law of the Sea (UNCLOS) and the 2002 Declaration on the Conduct of Parties in the East Sea (DOC). China’s blatant acts of escalation in the EastSea are causing grave concern to China’s neighbors.
They described the seminar as a good opportunity to enhance understanding and mutual trust, mutually benefiting cooperation between Vietnam and Mongolia.
Both sides agreed to strengthen cross-cultural exchange, education, boost economic and trade cooperation, and support the Vietnamese community in Mongolia and the Mongolian community in Vietnam.
Within the framework of the event, the Vietnamese delegation paid a courtesy visit to the Chairman of the Mongolian Union of Peace and Friendship Organizations and visited a School no 14 named President Ho Chi Minh in Ulanbato.
Blaze destroys forest in Nghe An Province
A fire destroyed more than 90ha of a forest yesterday in the Nam Loc Commune, NamDanDistrict, in the central Nghe An Province.
The district People's Committee vice chairman Le Khanh Hoa said that the fire reportedly broke out in a pine forest in the ThienNhanMountain in Nam Loc Commune at around 11.30 am yesterday. It then spread to the keo (acacia auriculiformis) and eucalyptus forests.
The fire was extinguished around 8am today.
Hoa said that the heat wave and strong winds made firefighting difficult. One person was injured when the fire was being extinguished.
The local authorities are investigating the cause of the fire.
According to the Forest Protection Department under the Ministry of Agriculture and Rural Development, the risk of forest fires has increased in the central provinces.
The provinces which are reported to be facing the highest risk of forest fires are Binh Dinh, Ha Tinh, Ninh Thuan, Quang Binh, Quang Ngai, Da Nang in the central and the northern LaoCaiProvince.
Vietnam to experience prolonged hot spell
A long spell of hot weather is forecast to cover the northern and central regions during June, with the average temperature forecast to range between 25-30 degrees Celsius.
According to the National Hydro-meteorological Forecast Centre, the severe weather will bring with it heavy showers and storms. There will be around three bands of heavy rain in the regions during the month, mainly in northern mountainous provinces.
Experts have also warned that June is the rainy season in the north, so localities there should be on the alert against dangerous weather phenomenons such as thunderstorms, hail and whirlwinds, and especially landslides and flash floods caused by heavy rains.
In the northern, central and Central Highlands provinces, the average temperature in June is forecast to be between 0.5 and 1 degrees Celsius higher than in previous summers.
Meanwhile, the average June rainfall in the northern central coastal and southern localities will be 20-50 percent lower than in previous years.
More unusual weather is predicted this year, with heatwaves and storms likely to hit the country earlier than in previous years.
The centre also said hot weather will continue in provinces in all regions across the country for longer than usual, as the rainy season may arrive later than in previous years.
Red bauxite sludge covers farms in northern province
Toxic red mud from an nearby bauxite mine forced Dao Van Tuyen, a resident of Dong Ben 2 Village in Thuong Am Commune in northern TuyenQuangProvince, to abandon his 1,000-square-metre field for more than a year.
His field is near a bauxite project run by the Hoa An Company, which uses a large earthen reservoir to store the mud waste.
The waste is the main solid waste produced when alumina is extracted from bauxite.
Tuyen said every time it rained, the red mud spilled over into the rice fields, killing everything. He said his and other families in the area had lost their fields under a sea of red mud.
Phan Thi Tan, another resident, said she could not raise fish any more because of the toxic mud. She said she had to spend more than VND20 million (US$900) to build an 80 metre stone-fence around her house to protect it from the mud.
According to a Vietnam News Agency reporter's investigation, Hoa An Company is exploiting bauxite from an area much larger than has been authorised.
The reporter said the company was not treating the mud correctly and so it created a huge environmental problem.
Dam Thi Tham, a resident of Dong Ben 2 Village, said the company signed a contract to hire one acre from her family for two years in 2009, but had not returned it.
"They said they're losing money so they can't return the land and they can't compensate me," Tham said, adding that there were 20 other households in the same situation.
Pham Van Tinh, head of the Mineral Natural Resources Unit in Tuyen Quang, said the department would "carry out an examination in the coming time and will impose suitable punishment".
HCMCity takes steps to tackle rising salinity
The HCM City People's Committee has told local district authorities to take steps to prevent saline-water intrusion and drought for this year's crops in suburban areas.
Under the order, the Department of Agriculture and Rural Development will closely monitor saline-water intrusion in rivers and canals at the city's stations, including at Nha Be, Cat Lai, Thu Thiem, OngThinBridge and Kenh Xang – An Ha Canal.
The agriculture department will also check irrigation works and sluice gates to ensure water supply for farming and aquaculture production, the committee has said.
The department will also be responsible for training farmers in how to use water efficiently.
As part of the plan, the Department of Natural Resources and Environment will inspect waste water discharge at Le Minh Xuan, Tan Tao and Tan Phu industrial parks and other production establishments.
To prevent pollution of irrigation canals, the city will fine any company that does not treat waste water or does not meet waste water-treatment regulations.
The People's Committee said that rural districts would have to monitor water usage to prevent shortages, and plant drought-resistant plants.
The People's Committee has told the HCM City Irrigation Service Exploitation Management Company to maintain irrigation works, store irrigation water in fields and canals, and prepare pumps and fuel in case of drought or forest fires.
According to the National Centre for Hydro-Meteorological Forecasting, the rainfall in the Central Highlands and southern regions in May, June and October is forecasted to be lower than average, while rainfall from July through September will be about the same as in previous years.
WB helps upgrade fishing port in Binh Dinh
Deputy Director of the Coastal Resources for Sustainable Development Project (CRSD) Tran Van Vinh, announced the World Bank (WB) has granted VND47 billion to help the central coastal province of Binh Dinh upgrade its De Gi fishing port in Phu Cat district.
The project aims to create favourable conditions for around 3,000 ships docking at De Gi port every year, most of them are off-shore fishing ships. It is also expected to increase the quality of post-fishing services, generate jobs for 400-600 local workers, and protect the ecological environment around the port.
Approximately 2.4ha will be subject to site clearance to pave the way for transport networks, waste treatment plants, electricity services, buildings, and expanded fishing port.
Phu Cat District People’s Committee Deputy Chairman Luong Ngoc Anh said the upgrading of De Gi port will contribute greatly to local socio-economic development.
It will help off-shore fishing vessels anchor safely in adverse weather conditions, and encourage local fishermen to engage in fishing activities, thus contributing to the protection of Vietnam’s sea and island sovereignty.
As scheduled, the project will be completed and put into operation in 2016.
Transnational drug trafficking bust leads to one arrest
Border guards in collaboration with customs forces from Quang Binh province on June 1 arrested one suspect, seizing 600 tablets of drugs.
The suspect accused of illegally transporting the drugs from Laos to Vietnam via Vietnam’s Cha Lo border gate is a 22 years old man named Son, living in Khi Lec town, Nhom Ma Lat district, Khammouan province in Laos.
Law enforcement officials also confiscated one black Wave motorcycle, LAK260,000 (the Lao currency) and one cell phone.
Son reportedly admitted he engaged in the transportation of narcotics through the border gate to sell in Ha Tinh and Quang Binh provinces.
Officials are continuing their investigation into the case.
Islanders enjoy same power price as mainland counterparts
Electricity prices in islands have been reduced to the same level as those in the mainland as of June 1.
Residents in rural and mountainous areas which have not been connected to the national power grid are also entitled to the new adjustment.
Earlier, people living in these areas had to pay much higher prices for electricity, with the prices in islands as high as 10,000 VND per kWh, compared to the average 1,508.85 VND per kWh applied for areas connected to the national grid.
The Government’s price support is aimed at helping improve local living standards, drive economic growth and ensure security.
In addition, welfare beneficiary households of certain categories as stipulated by the Prime Minister also become entitled to the same power subsidy amount as poor families as of June 1.
Families living under poverty line will continue to enjoy subsidy equivalent to the cost of 30 kWh at the lowest level in the electricity price frame.
The Electricity of Vietnam group has been making efforts to expand the national electricity network to remote areas and islands.
On February 2, PhuQuocIsland in southern Kien Giang province was connected to the national electricity grid.
Meanwhile, works are also being stepped up to bring power from the grid to Ly Son Island, the central province of Quang Ngai, early this October.
Nation-wide day to celebrate loving families
The Ministry of Culture, Sports and Tourism will launch a campaign calling on people across the country to enjoy a two-hour family meal from 5pm on June 26 to mark the 2014 Vietnam Family Day.
Through the programme, the ministry hopes many Vietnamese people will respect warm moments with their families, appreciating the immeasurable value that exists in Vietnamese families.
The event will honour the cultural traditions of Vietnamese people who consider the family meal as an ideal time for family members to discuss morality, lifestyle and their educational or working lives. Jointly held annually by the ministry, the Vietnam Women’s Union and the Central Committee of the Ho Chi Minh Communist Youth Union, the day aims to raise public awareness of family values, and honour good family traditions.
The organisers also plan to promote and educate families on patriotic tradition during this year’s event, contributing to safeguarding the country’s sovereignty over its sea and islands.
Campaign launched to end violence against children
A campaign to end violence against the young has been launched in northern Hoa Binh province, starting the national Month of Action for Children, which runs through June.
The aim is to raise awareness and encourage people to speak out and take action on behalf of children.
“I fully support Vietnam’s wish to share its voice and join with the world to end all forms of violence against children. Let’s make a commitment to end violence so every child can grow up to in a healthy and safe environment,” implored Minister of Labour, War Invalids and Social Affairs Pham Thi Hai Chuyen at the launch.
There is significant evidence that violence, exploitation and abuse can affect children’s physical and metal held, impairing their ability to learn and socialise as well as their transition to adulthood, with adverse consequences developing later in life.
Between 2006 and 2011, violence and abuse against approximately 5,600 children in Vietnam was reported to police.
To mark the national action month, the National Fund for Vietnamese Children presented 1 billion VND (47,000 USD) to its Hoa Binh chapter.
School quality project helps reduce school drop-outs
The rate of dropout has reduced remarkable to almost zero at primary schools in mountainous areas in the central province of Quang Nam thanks to a project to enhance school quality funded by foreign donors.
According to Nguyen Tan Tu, head of the Primary Education Section of Quang Nam province’s Education and Training Department, the School Education Quality Assurance Programme (SEQAP) has been implemented at 48 primary schools in 8 poor mountainous districts since March 2010.
Under the project, the target schools received assistance to shift from half-day to full-day attendance, including training and guidance materials for teachers.
In particular, more than 5,800 students at the schools, who are mostly from ethnic minority groups, have been provided with free lunch in order to keep them at school. At the same time, more classrooms and other facilities have been built to serve the needs of students during full-day school attendance.
As a result, the rate of attendance has increased at these schools while no students have quit school since the project began. Study results have also improved among ethnic minority students.
The SEQAP project has been carried out in 36 cities and provinces nationwide and will continue until December, 2015 with an investment capital of 186 million USD, of which 27.9 million USD came from the Vietnamese government and the rest financed by the WB, the UK Department for International Development and the Belgian Development Agency.
It is designed to improve the quality of primary education, raise ethnic minority children’s study results and create equal education opportunity for all children.
Free surgeries for children with harelips, cleft palates
Fifty-nine children with harelips and cleft palates in the Central Highlands received free surgery worth nearly 900 million VND (43,200 USD) from May 30 to June 2.
Most of them are from disadvantaged families and ethnic minority groups in Dak Nong, Dak Lak, Lam Dong, Gia Lai and Kon Tum localities.
The programme, the 3 rd of its kind in Dak Nong province, was held by the Hanoi-based Centre for Researching and Aiding Smile Operation (OSCA).
The centre has so far provided free operations for over 500 children in the region.
Meanwhile, the Children’s Fund in the northern mountainous province of Ha Giang on June 2 provided money to support 41 poor ethnic children with the defects.
Averagely, one out of every 700 babies in Vietnam was born with cleft lip and palates. This is relatively high compared with the global rate of 1/1,000. However, if promptly treated, most babies with the defects can make a full recovery.
Cao Bang succeeds in protecting rare gibbons
More than 129 Cao Vit gibbons, one of the world’s rarest primate species, are being protected in Trung Khanh district of the northern mountainous province of Cao Bang, as part of a project launched by Fauna & Flora International (FFI) in 2004.
According to elderly people in Ngoc Khe, one of the three communes preserving the gibbon community, the no-tail and black or yellow species were seen in thick forests long ago. Local residents called them “Cao Vit” or “Cao Huyt” as these words sounds like their howls. However, as time passed by, the primate population decreased due to deforestation.
In 2002, the FFI discovered the gibbons still inhabiting the Ngoc Khe, Ngoc Con and Phong Nam communes of Trung Khanh district. Two years later, the organisation found around 37 individuals, and set up a project in March to restore and expand the habitat for the primates.
In 2007, FFI helped Cao Bang province establish the Cao Vit Gibbon Conservation Area, which covers nearly 3,000 ha in the three aforesaid communes.
Nong Van Toa, director of the area’s management board, said since the 2004 project was activated, local residents have been supported with effective ways to improve their living standards. They no longer have to go to forests for firewood, Toa added.
Livestock interest groups have been developed to reduce farmers’ dependence on forest resources. Additionally, over 200 households have been equipped with breeding and cultivating techniques.
Besides Cao Vit gibbons, the conservation area is home to many other rare animals such as monkeys, bears and deer, all of them well protected by local people.
Pooling Vietnamese resources in France
A meeting of Vietnamese experts and intellectuals was held in Paris on June 1 to examine ways of bringing into full play their contributions to the homeland.
Addressing the gathering, Vietnamese Ambassador to France Duong Chi Dung affirmed that Vietnamese intellectuals are a critically important resource for Vietnam.
He emphasized that the Party, State and Government are always highly appreciative of the contributions of Vietnamese intellectuals overseas, including those inFrance, to the cause of national construction and defence.
At the meeting, delegates expressed hope that they would like to share professional and managerial skills with their peers in Vietnam, while promoting research, sci-tech, and education & training development in the country.
They made recommendations to the Party and State to attract more Vietnamese intellectuals overseas to national development.
Attendees with unanimity strongly condemned China’s abhorrent violation of Vietnam’s territorial waters when it located the Haiyang Shiyou-981 oil rig illegally in Vietnam’s exclusive economic zone and continental shelf.
They offered carefully thought-out conceived and developed suggestions on approaches to resolve the dispute on the basis of international law. They also praised the soldiers who are protecting the national sovereignty of the country and proffered a variety of programmes to assist them.
Oil& gas companies support children in Mekong Delta
A group of the nation’s leading oil and gas companies on June 2 donated VND3 billion to the National Fund for Vietnamese Children (NFVC) to support education and provide scholarships for children in the Mekong Delta.
The oil and gas companies include Chevron Vietnam, PetroVietnam Exploration Production Corporation (PVEP), Mitsui Oil Exploration Company Limited (MOECO) and PTT Exploration and Production Public Company Limited (PTTEP).
The funds were donated as part of an ongoing programme begun in 2009 supported by these same companies which has provided over 3,800 academic scholarships and funds to enhance education in schools located in Can Tho and the provinces of Ca Mau, Kien Giang, Bac Lieu and Hau Giang.
Addressing the signing ceremony, President of Chevron Vietnam, Barry Andrews emphasized that Chevron and its partners focused on supporting the community in three fields-health, education and economic development.
NFVC Director Hoang Van Tien said that this is the sixth year that donors have cooperated with his organization to support its educational programs and reflected their strong commitments to make further contribution to Mekong Delta region’s the development.
Meanwhile, the Centre for Researching and Aiding Smile Operation (OSCA) has co-ordinated with the Dak Nong provincial Red Cross Society and Dak Nong General Hospital to provide health check-ups for 77 children and free surgeries for 59 disadvantaged children with harelip and cleft palate.  Total funding for the surgeries to date has amounted to VND900 million.
Student Association in US celebrates 1st founding anniversary
A ceremony was held in Washington DC on June 2 marking the first founding anniversary of the Vietnamese Youth and Student Association in the US (2013- 2014).
Addressing the event, Ambassador Nguyen Quoc Cuong called on Vietnamese students and youth to uphold their traditions – enthusiasm, dynamism and creativity.
The Association is home to more than 16,000 Vietnamese students and youth in the US who consistently show their strong solidarity and support for those Vietnamese living far away from home.
It has officially launched its website www.sinhvienusa.org, and organized many significant events, such as US journey, US hand circle, and charitable programmes in support of flood and storm victims and poor outstanding students who pursue overseas study, The Vietnamese diplomat said.
He described Vietnamese students as “itinerant ambassadors” representing a Vietnam of renovation and international integration.
Cuong asked the Association to strengthen connectivity between overseas Vietnamese students in the US and those in other countries to make further contributions to national development in the homeland.
Sixth grader wins AIP’s photo contest about traffic
Sixth grader Ha Dieu Linh in the northern province of Ha Nam won a photography contest for junior high school students.
The photography contest “Safe Walking” was launched by the Ho Chi Minh City Department of Education and Training and the Asia Injury Prevention Foundation for junior high schools nationwide.
The two month contest received 4,175 entries. Sixth grader Ha Dieu Linh of Kha Phong Junior High School in Ha Nam Province won the first prize.
100 photos that entered the final round will be displayed in Dam Sen Entertainment Park to the end of June.
Heavy rain uproots trees in HCMC
An hour heavy rain uprooted many trees across Ho Chi Minh City on June 1, which caused traffic jam, power cut in a large area.
A tree toppled over at the junction of Nguyen Trai and Phung Hung Streets in District 5, causing blackout in the district.
The tree fell on a fast food restaurant near the junction. Fortunately, pedestrians were not injured.
Many trees at the crossroad between Tan Da and An Duong Vuong were also uprooted by strong wind, heavy rain.
The heavy rain also flooded several streets in HCMC like Tan Hoa, Hong Bang, Nguyen Trai.
114 works win 2014 National Press Awards
The 2014 National Press Awards will be offered to 114 outstanding works of the media from 183 entries of the finalists, announced by the awards Jury Board on Sunday.
There are eight A- Class prizes, 27 B- Class prizes, 41 C- Class prizes and 38 consolation prizes.
Chairman of the Vietnam Journalist Association Thuan Huu said that total of entries selected into the final round of this year competition accurately and timely reflected the economics, politics, social problems and national defense of the country.
The 2014 National Press Awards Competition received total of 1,665 entries from 151 press agencies, 271 freelances and 45 individuals.
The award ceremony will take place in Hanoi on the 83rd anniversary of the Vietnam Revolutionary Press Day (June 21).
Schools asked to prevent food poisoning
Education authority in Ho Chi Minh City has asked to increase food poisoning prevention at schools.
A document issued by the city’s Department of Education and Training said that schools in the city need to prevent food poisoning, ensure sanitation safety at canteens
Those schools that do not have canteens should sign contracts with food providers that can deliver meals within two hours to ensure freshness, the document said.
A school official or medical staff must be available to test meals before students and they should not deliver meals to students if finding unsafe signs, the document added.
In case that schools cook for students, it must buy food with clear indication of origin and legal companies. School management boards and medical staff should check hygiene practices in food safety management, food storage, preparation and serving.
There should be daily report of all steps.
Source: VNN/VNA/VNS/VOV/SGGP/ND

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Russian news agency removes article slandering Vietnam

Russian news agency RIA Novosti has removed an article by Dmitri Kosyrev with content that allegedly slandered Vietnam, after the article was criticized by readers.

 RIA Novosti
The article has been removed.

The article, "The agreements between Moscow and Beijing better than any statement" by Dimitri Kosyrev was posted on the Ria Novosti website on May 19.
The article caused tempers to flare in public, especially those who have close relations with Russia since it gave a subjective analysis, distorting the history of Vietnam.
In the article, Dimitri Kosyrev had one-sided, misleading arguments about the sovereignty and history of Vietnam and the developments in the EastSea.
One of the most serious mistakes in the article is the statement that the HD-981 oil rig of China is just 27 km from the coast of China and 241km from the coast of Vietnam.
In fact, the drilling rig is anchored completely illegally in the territorial waters and exclusive economic zone of Vietnam and only 130 nautical miles from Vietnam’s coast.
Many readers were very angry about the article. The article has been removed from the website of RIA Novosti.
Tran Cham, VietNamNetBridge

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 Art & Entertainment News Headlines 3/6

Photo book features Viet Nam's islands, seas
Journalist Gian Thanh Son will release a photo book featuring the beauty of Vietnamese islands and seas that he has photographed during the last 20 years.
The photo book titled Viet Nam's Islands and Coastline Seen from Above is expected to be published in September. The book will be compiled as a pictorial chronicle of the islands and seas of Viet Nam.
"I have decided to print the book on this occasion because I want to contribute to the affirmation of Viet Nam's sovereignty over its sea and islands," stated Son of the Ho Chi Minh City's Police newspaper. "I also wish to publicise the photos depicting the natural beauty of the islands and seas of Viet Nam, which I have had an opportunity to fly over."
"I hope the beauty of the islands and seas that I have captured through my lens will inspire and strengthen patriotism among the Vietnamese."
The photo book will also be a milestone marking the 20th year Son has been taking aerial pictures. Son will consult with experts to provide an introduction to each photo.
The idea of taking aerial pictures flashed across his mind while he was on a field trip in the ConDaoIsland in 2003. Viewing through the plane's windows, he was amazed by the natural beauty of the country below.
Since then he has taken good use of flying trips to capture the country from above. In addition, Son is allowed to appear for flight training by 917 Aviation Regiment, where he can take pictures of every corner of the country.
"Viet Nam has a long coastline with thousands of islands, which cannot be captured comprehensively in a few years," Son noted, adding: "I hope more colleagues have the same purpose like me in taking photos of the islands and seas of Viet Nam."
Born in 1957, the photo journalist has launched several publications including Politician Portraits, Integration Milestone and Nick Ut - A Simple Legend.
He has also set the national record of being the photographer who has taken the highest number of aerial landscape photos.
Damaged historical Hue site restored
The left corner of Phu Van Lau, a well-known building within the Hue Royal Citadel in the central province of Thua Thien-Hue, has been being consolidated to preserve the stability of the site.
According to director of the Centre for Preservation of Hue Monuments Phan Thanh Hai, the provincial People’s Committee has worked with the Ministry of Construction’s Institute for Construction Science and Technology to repair the section of the building which collapsed on May 15.
Hai said construction units have partially reinforced the system of wood columns, which were rotten and could not sustain the pressure of the roof, which partially collapsed.
Phu Van Lau is located on the main axis of the Imperial Citadel of Hue, facing the Huong (Perfume) River. It was built in 1819 under Emperor Gia Long and used as a place for listing the important edicts of the king and the royal court and analysing the results of examinations held by the court.
Before 1975, Phu Van Lau was restored, using concrete frames combined with a number of wooden pillars. Since 1993, the building has been restored a few times, but only on a small scale due to funding difficulties.-
Indian artists give life to Buddha's teachings

 buddhist painting exhibition, photo book on marine sovereignty

Twenty six painters from India are providing a deep insight into the life of Buddha through a special event that opened yesterday in Ha Noi.
The exhibition Enlightenment Lord Buddha was organised by India's Embassy in Ha Noi.
It showcases 74 paintings displaying various aspects of the Indian philosopher who has influenced most of Asia for 25 centuries.
The paintings were done by artists from an organisation titled International Eminent Modern Art of India who explored Buddhist aesthetics and spiritualism.
Indian Ambassador to Viet Nam Preeti Saran said the display had been prepared with a vision to contributing to a better world.
"Vietnamese have lots of devotion for religious and spiritual matters, especially the Buddhist message of peace, love and harmony," she said.
"We think that many Vietnamese Buddhists and people will be fond of the paintings and have decided to bring them to Ha Noi so that Buddha's message of non-violence, tolerance and compassion can spread to more and more people."
The event, a continuation of the Festival of India held in Viet Nam in March, is the first of its kind in Viet Nam.
"I organise hundreds of exhibitions each year, but this is the first event on Buddhism," said painter Ngo Van Cao, director of the Exhibition Hall, 16 Ngo Quyen Street, which hosts the event.
"Each exhibit vividly portrays a face of Buddha. In my own opinion, the artists are highly professional," Cao added.
"They successfully display their spirit through work which comes from the heart."
According to the founder of International Eminent and Modern Art, Amandeep Singh Vaseer, related events are often held in India.
"We work a lot on Buddhism, spiritual life, the soul ... everything. But this is the first time we have had an opportunity to present work in Ha Noi," said Vaseer.
"With this type of art, painters need peace through meditation. They meditate while painting."
Art has its own language, so the paintings speak for themselves. They believe that the sacred meaning and morality of the paintings take viewers deep into Buddha's message of love, peace and compassion.
The exhibits are on display on the third floor of the Exhibition Hall, 16 Ngo Quyen, until Saturday. 
Future Now Music Festival slated for Saturday
Future Now Music Festival, an electronic dance music (EDM) event, will be held for the first time in Vietnam on June 7 in HCMC’s District 7, featuring DJ Afrojack and hiphop band Far East Movement.
Afrojack is a Grammy-winning producer and DJ from the Netherlands. He ranked 9th in the world’s top 100 DJs by DJ Mag in 2013 and has had some hits with popular artists, including “Last Night” (Ian Carey, Snoop Dogg), “Give me everything” (Neyo) and “Run the World (Girls)” (Beyoncé). His latest hits are “Ten Feet Tall” and “Keep Our Love Alive” at the Ulltra Music Festival 2014 Miami.
Far East Movement is an American hiphop band quartet based in Los Angeles. The band was also the first Asian-American group to earn a #1 hit on the Billboard Hot 100 in the U.S. in 2010 for their hit Like a G6.
Some popular local DJs joining the event are DJs SlimV, Nimbia, Mike Hao, Duy Duy, Looze Khuong and Brian Vo.
The event is expected to attract over 10,000 spectators. Tickets are priced from VND350,000 to VND1.35 million. For further information, visit http://ticketbox.vn/event/future-now-music-festival-3335 or www.facebook.com/FutureNowMusicFestival.
Phuot.vn hosts photo contest on landscapes
A photo contest ‘Theo canh Hai Au’ (Following Seagull Wings) was organized by the tourism forum Phuot.vn from May 29 to June 1, with participating Vespa riders traveling to coastal cities such as Long Hai, Phan Thiet, Cam Ranh and Nha Trang to take photos.
Entries will be posted on the forum Phuot.vn and voted by the public. The winner will be awarded a Vespa worth VND70 million.
The best photos will be displayed in Hanoi and HCMC from late June to the end of July.
Source: VNN/VNS/ND/SGGP/SGT

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Bus driver fell asleep in Thai accident that killed 12 Vietnamese: police


The site where a bus collided with a truck in the northeast of Thailand in early morning on June 2, leaving 13 dead - a Thai driver and 12 Vietnamese. Photos courtesy of Wichai

 Thai police confirmed with Thanh Nien that a bus-truck collision that killed 12 Vietnamese people in northeast of Thailand on Monday happened when the bus driver was falling asleep.
The Thai driver was also killed on the spot, Col. Panas Boonyanyao, chief of police department in ChaiyaphumProvince’s Kaeng Kro District, said. The province is some 350 kilometers from Bangkok.
Three other Vietnamese passengers along with the Thai truck driver were seriously injured, he said.
The accident happened in early morning when the bus, which was bound for NongBuaLamphuProvince that borders Laos, crashed into the 18-wheeled truck that was moving in an opposite direction.
A fire broke out and soon burned down the bus.
Wichai, a Vietnamese-Thai who lives near the accident site, said he heard a big explosion before the fire started, adding that the truck driver rescued the injured Vietnamese passengers.
He also said the truck driver kept honking to warn the bus driver, but the passenger vehicle did not stop.
All the dead victims have been identified and their bodies are now being kept at KhonKaenHospital in KhonKaenProvince, awaiting repatriation.
In the meantime, two of the three Vietnamese survivors are recovering, while the other is still in intensive care, KhonKaenHospital’s doctors told Thanh Nien.
Boonyanyao said the ill-fated bus was part of a five-vehicle caravan that departed Bangkok on Sunday night for a seminar and youth camp at a church in Nong Bua Lamphu's Muang district.
The four other buses had already past Chaiyaphum province when the last one, driven by Weerachai Phromsakul, 36, collided with the truck, he said.
According to the Order of Preachers Vietnam, a Catholic religious order, the victims were among 64 of its members who were on their way to the camp.
The BanKijjanukhrohChurch's three-day youth camp is an annual event for 120 Thai and Vietnamese students from Bangkok, Khon Kaen, Udon Thani and Sakhon Nakhon. This year's event was cancelled following the tragedy, Phuket Gazette reported Tuesday.
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Minh Quang, Thanh Nien News

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Chinese vessels widen illegal operation range in Vietnam’s waters


A Chinese vessel (L) fires its water cannon at a Vietnamese ship in the Vietnamese waters, where China's illegal oil rig Haiyang Shiyou 981 has been placed since May 1, 2014. Tuoi Tre
Chinese boats that are protecting China’s illegal oil rig Haiyang Shiyou 981 in Vietnam’s waters expanded Monday their ranges of operation around the platform to 18 nautical miles, the Vietnam Coast Guard (VCG) said the same day.

The new range is about twice of the previous scope of 8-10 nautical miles, VCG said.

Along with expanding their range, Chinese vessels, including military ones, continued to intimidate Vietnamese ships that were trying to enter as near as possible to the illicit rig to demand that the platform and its escort ships leave the Vietnamese waters.

Yesterday morning, Vietnam Coast Guard boat CSB 2016 was heading towards the rig when it was pursued by a Chinese boat which tried to approach the local vessel to fire water cannons at it.

After being chased for a distance of three nautical miles, vessel CSB 2016 managed to get rid of its rival.

The same Vietnamese boat suffered heavy damage after being rammed by Chinese coast guard vessel 46105 on June 1, but the crew of the local ship managed to repair it the same day.

Along with vessel CSB 2016, many Vietnamese fisheries surveillance boats also faced continuous threats from Chinese ships on Monday.
One of such threats occurred at 1:00 pm when three Chinese coast guard ships surrounded and attempted to fire their water cannons at Vietnamese fisheries surveillance ship 635.

At the same time, Chinese coast guard boat 46101 at a distance of only ten meters got close to a Vietnamese counterpart, CSB 2015, for about an hour.

By expanding the range of the guarding vessels, China may continue to relocate its illegal rig in a few days to come, some naval officers on board vessel CSB 2016 said.

According to a report of the Vietnam Fisheries Resources Surveillance Department, China increased spying activities yesterday by using five fighter jets above the area where the rig is located.

Yesterday 120 Chinese vessels were arranged in the waters, including four military ships, about 38-40 coast guard boats, 15-20 tugboats, 10-14 transport vessels, and 42-47 fishing boats.

As previously reported, China has had the oil rig stationed in the Vietnamese waters in the East Vietnam Sea since May 1 and has maintained the platform there, despite strong protests from Vietnam, which has repeatedly demanded that China withdraw its rig from the sea waters immediately.

The rig has been relocated two times since that date and it is now located at 15°33’22’’ North latitude and 111°34’23’’ East longitude, still in the Vietnamese waters.
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BUSINESS IN BRIEF 4/6

NA backs measures for growth
National Assembly (NA) deputies yesterday agreed in principle with socio-economic development solutions proposed by the Government - maintaining macroeconomic stability, accelerating economic restructuring and revamping the current growth model.
At the plenary debate in Ha Noi, the lawmakers expressed general agreement with salient features of the Government's report as well as the NA Standing Committee's verification report on socio-economic development in 2013.
They also noted progress made in the first months of this year.
The lawmakers acknowledged efforts made by ministries and local authorities in ensuring macro-economic stability, easing difficulties for businesses, maintaining security and improving people's lives.
Minister of Industry and Trade Vu Huy Hoang informed the session that Viet Nam has set up trade ties with over 180 countries, signed eight free trade agreements and is conducting negotiations on six others.
Hoang said Viet Nam was also pursuing a policy of protecting farmers to help them gain economic growth benefits.
He said talks on the six trade agreements will be tied to the principle of respect and non-interference in Viet Nam's internal affairs as well as the imperative of narrowing the development gap.
Many NA deputies proposed that the Government assesses the potential impacts of the current EastSea situation on socio-economic development in 2014 and the coming years. They said a mechanism was needed to continue attracting investment while ensuring national sovereignty.
Most of the deputies expressed their agreement with plans to balance central and local budgets for 2013; and invest more in law enforcement forces at sea including the coast guard, fisheries administration agency and offshore fishermen.
The EastSea situation continued to dominate discussions in the afternoon session, with most NA deputies trying to anticipate possible impacts thereof on socio-economic development targets set for the year.
They also pointed out shortcomings in implementing development plans in the first months of this year, stressing the need to increase demand, boost the economy's internal strengths, ensuring social welfare, security, social order and safety, and firmly safeguarding national sovereignty.
Voter Do Thi Kim Loan, General Director of Sao Viet Timber Company said the meeting session reflected the voice of voters nationwide, emphasizing the country's determination to protect its sovereignty.
She also backed the Government's plan to spend VND16 trillion (US$756 million) supporting fishermen expand their fishing efforts further ashore and to improve the equipment of marine police defending Viet Nam's sovereignty.
Loan said that while raising the people's voice to demand China remove its oil rig, Viet Nam should also focus on developing production and trade.
Voter Pham Thu Hang, a software expert at FPT Joint Stock Company in Ha Noi, agreed, saying that the fight to protect Viet Nam's sovereignty over its seas would take a long time. Meanwhile, the country needed to prepare itself by building capacity, restructuring its economy and reducing dependence on trade with China, she said.
Exporters yet to apply for priority treatment
Few Vietnamese exporters have applied for Authorised Economic Operator (AEO) status, which would allow them to benefit from expedited customs procedures.
Vice head of Post-Customs Clearance Examination Department under the Viet Nam General Administration of Customs Le Thu said that in 2011, Viet Nam started allowing certain businesses to be prioritised during customs procedures. These businesses would have to submit fewer documents to customs offices and undergo fewer tests and inspections.
An exporting enterprise can earn the priority status if it has yearly export value of at least US$200 million.
Enterprises specialising in exporting farming products, aquaculture products, textiles or footwear with yearly export value of at least $50 million are also eligible for the title.
A hi-tech enterprise recognised by the Ministry of Sciences and Technology can receive the status regardless of export value.
So far, 16 enterprises have gained prioritised enterprise status: ten foreign direct investment companies and six domestic ones. Their export value last year was over US$40 billion, accounting for 25 per cent of the total export value of Viet Nam.
Thu said that while many companies met the criteria, most—especially textile and footwear companies— were not ready to apply for the prioritised status.
Foreign enterprises usually had better accounting and internal auditing practices, so they were more prepared to apply.
She said that this year, Customs General Administration planned to recognise nine enterprises as prioritised enterprises.
It would also review preferential procedures to match with the newly-launched Viet Nam Automated Cargo and Port Consolidated System/Viet Nam Customs Information System (VNACCS/VCIS).
Thu suggested that Viet Nam expand the programme's scope so that more enterprises could qualify. She also recommended that the country pursue mutual recognition agreements with foreign countries so Viet Nam-based AEO firms could benefit from customs priorities in those countries.
Firms bond to decrease dependence on imports
Vietnamese companies were advised at a recent seminar in HCMCity to improve cooperation to reduce their dependence on imported raw materials.
Speaking at the seminar late last week on "Connecting Material Supply in ASEAN ++" , Pham Ngoc Hung, deputy head of the HCM City Enterprise Association (HEA) said that such co-operation was still weak and that big and small companies should start to work together.
To make one product, companies should not have to produce all of the components, and instead should share jobs with each other, he said.
Hung said that co-operation among companies would help all of them and would reduce the need to import parts that they cannot produce.
Hung and other participants agreed that co-operation was necessary, especially if the country becomes an important player in the ASEAN Economic Community.
At the seminar, representatives said that the price of raw materials produced in Viet Nam was expensive, and consequently, companies preferred imports.
They said that it was not too late to develop the industry that produces raw materials.
Companies should invest in technology, and produce raw materials at cheap prices if they can, representatives said, this would enhance Vietnamese companies' competitiveness.
To strengthen co-operation, the HEA suggested several solutions.
Hung of HEA said that they needed clear guidance about where they could buy raw materials in Viet Nam.
"It takes a lot of time and money for companies to find an address selling commodities that they need," he said.
Trade promotion activities should also be organised regularly, he said, adding that building confidence in the business community was necessary.
Vietnamese producers currently have to rely heavily on imported raw materials, especially in the sectors of garments and textiles, footwear, feed, aquaculture and plastics.
This reliance has contributed to a trade deficit with many Asian countries, including China and South Korea.
Viet Nam targets a localisation rate of 55 per cent by 2015 and 65 per cent by 2020. It has set a goal of 70 per cent by 2030.
SBV plays key role in financial system: forum
The State Bank of Viet Nam's (SBV) key role in stabilising the monetary and financial system topped the agenda at a recent seminar in Ha Noi.
Recognising the SBV's role in overseeing the financial system, participants at the forum noted that banks and financial companies managed by the SBV made up 90 per cent of the total assets of financial organisations in Viet Nam.
Central banks around the world are aware of the importance of financial stability, which serves as an essential condition for macroeconomic stability, they said.
Affirming the State Bank's role in stabilising the financial system, economist Vu Dinh Anh said it was necessary to create a mechanism to coordinate information on the financial sector, to improve oversight.
If all relevant agencies recognised how vital monetary and financial stability was, there would be significant potential for collaboration, he said.
Sharing the same view, banking expert Can Van Luc said there was no perfect financial and monetary stabilisation model but that the central bank was playing an increasingly important role.
He also emphasised the need to coordinate policy between the State Bank and the relevant ministries, and build a transparent deposit insurance tool in case of a crisis.
He also proposed the establishment of an international financial and monetary council with the State Bank as the main actor.
Participants also suggested the SBV closely follow the financial system's developments and recommend suitable monetary policies.
Quoc Cuong Gia Lai outlines share sale plans to tackle debts
Quoc Cuong Gia Lai Joint Stock Company (QCG) has unveiled plans to issue 150 million shares worth VND1.5 trillion (US$71.1 million) this year to help pay its debts, said chairwoman Nguyen Thi Nhu Loan.
Loan told a shareholder meeting on Sunday that the company needed to raise funds for on-going projects, including the Phuoc Kien residential development, Ben Van Don project and two hydropower plants.
In addition, the capital hike would help alleviate the company's interest payments, said Loan.
The real estate company is expected to raise a charter capital between VND1.3 trillion ($61.6 million) to VND2.8 trillion ($132.7 million).
Total debts have swollen to nearly VND1.24 trillion ($58.8 million), of which VND136.5 billion ($6.5 million) were convertible bonds from VinaCapital.
Loan said the company was in negotiations with lenders over converting the debts into shares at a rate of VND10,000 a share.
"The company doesn't necessarily issue shares worth up to VND1 trillion to pay lenders. If existing shareholders want to buy more shares, the company will negotiate with lenders to reduce the number of shares offered to them while increasing shares sold to shareholders," she said.
"However, I don't think there are many shareholders willing to pay VND10,000 to buy QCG shares at present," Loan admitted. QCG has recently traded at around VND9,000-10,000 a share.
Ending 2013, the real estate developer earned nearly VND973 billion ($46.1 million) in revenue and more than VND6 billion ($284,400) in after-tax profit. The company decided not to set up a provisional fund and will use the profit to cover losses from previous years.
QCG has set ambitious business targets for the year, with revenue increasing 150 per cent during last year to VND1.5 trillion ($71 million), while the pre-tax profit goal has been set at VND100 billion ($4.7 million), up 700 per cent from the previous year.
$50m footwear factory kicks off
A ground-breaking ceremony for the first stage of a plant manufacturing footwear for export was held by King Riches Footwear Viet Nam at the Viet Nam-Singapore Integrated Township and Industrial Park (VSIP) in the central province of Quang Ngai yesterday.
The plant, which covers an area of 25.39ha with an investment of US$30-50 million, will be operational by May 2015.
King Riches, a subsidiary of Kingmaker Footwear Group, opened its first plant at VSIP Binh Duong in 1999.
Construction on VSIP Quang Ngai, the fifth of its kind in Viet Nam, started last year. The park has drawn eight projects from seven investors with total investment capital of nearly $200 million.
VN, Romanian city ink co-op pact
The central city of Da Nang and Timisoara, Romania, signed a co-operation deal on investment, trade, tourism, high-tech, information technology, culture and education last week. The deal aims to boost co-operation between the two cities in various fields.
Timisoara is the second largest city in Romania after Bucharest, but two-way trade between Da Nang and Romani remains small, around US$50,000. The central city, situated at the end of the East-West Economic Corridor, has drawn 286 FDI projects with an investment of $3.3 billion.
Forum to boost VN-Poland business
A Poland-Viet Nam Business Forum will be set up in HCMCity to enable businesses from both countries to explore partnership opportunities.
It will include 50 Polish companies from a range of industries like agro-food, finance, ceramic tiles/sanitaryware, environmental protection, IT, mining, real estate, and shipbuilding.
Barbara Szymanowska, the Polish ambassador to Viet Nam, Katarzyna Kacperczyk, Polish undersecretary of state for foreign affairs, and Monika Piatkowska, vice president of the Polish Information & Foreign Investment Agency, will speak at the inauguration to be held at the RexHotel on June 13.
Retailer wins Independence Order
The Saigon Commercial Co-operative Union, or Saigon Co.op, which runs supermarket chains, has been conferred the Independence Order, second class, for its contribution to economic development on the occasion of its 25th anniversary.
After 25 years of development, Saigon Co.op has become a leading retailer in Viet Nam and been among the top 500 Asian retailers for many years, said Le Thanh Hai, secretary of HCM city Party Committee,
The co-opertive now runs 70 Co.opmart supermarkets, 77 Co.op Food stores, 175 Co.op shops, the Co.opXtraPlus Thu Duc hypermarket, a trade centre named SenseCity, and the HTVCo.op shopping channel.
VietJet Air receives three new Airbus
Leading low-cost airline, VietJet Air welcomed three new aircraft to Tan Son Nhat airport on June 1, bringing the airline’s total number of planes to 15.
The new additions are modern airbus A320 aircrafts namely VN-A690, VN-A691 and VN-A692. With the exploitation of the new aircraft, VietJet Air will provide over 37,800 seats per week, meeting passengers’ growing demand for flights this summer.
The airline’s bold move also aims to expand its network, increase its number of flights and provide passengers with various options on air routes and flying times.
Exports to the UK reach over US$1.16 bil in four months
Vietnam earned US$1.16 billion from exporting goods to the UK in the first four months of the year, up 4.7% against the same period last year, according to Vietnam’s trade office in the UK.
It’s worth noting that Vietnam’s exports to the UK hit just US$808 million in the first three months, down 5.3%  from last year’s same period, but fetched over US$350 million in April alone.
In the reviewed period, major exports to the UK earning high value include plastics (nearly US$32 million), wood and wooden products (over US$72 million), seafood (US$38 million), coffee (nearly US$39 million), garment and textiles (nearly US$150 million), footwear (over US$160 million), mobile phones and components (over US$440 million).
Meanwhile, commodities posting negative growth were means of transport, components, computers, and pepper.
Super-jet Boeing 787 Dreamliner premieres in Hanoi
All eyes at Noi Bai international airport in Hanoi on June 1 were focused on the first landing of the stunning Boeing 787 Dreamliner aircraft carrying 169 passengers from Haneda, Tokyo.
The magnificent aircraft has an overall body length of 57 meters, wingspan of 60 meters, and flying range from 14,170 to 15,200 kilometres.
It is the third largest wide-body aircraft manufactured by Boeing, after Boeing 747SP and 777-200LR.
Japanese All Nippon Airways (ANA) said that as from June 1, the airline will officially utilize the Boeing 787 Dreamliner aircraft for all daily flights between Hanoi and Haneda.
Each day the flight departs Haneda at 8.55am and arrives in Hanoi at 12pm. On the same day, the return flight from Hanoi departs at 2pm and arrives back in Haneda at 9pm.  
Vietnam, US move to hasten TPP negotiations
US Secretary of Commerce Penny Pritzker began a one-day visit to Vietnam on June 2 in a bid to accelerate Trans-Pacific Partnership (TPP) agreement negotiations.
Pritzker, who is accompanied by leading retail giants including ACE, Qualcomm and Mead Johnson Nutrition, is scheduled to meet with the State President, Prime Minister and Minister of Industry and Trade.
US business representatives will hold discussions with the President of the Vietnam Fatherland Front Central Committee and leaders of the Ministry of Finance, Ministry of Planning and Investment, and Vietnam Chamber of Commerce and Industry.
Alexander Feldman, President of the US-ASEAN Business Council, said on June 1 that the visit demonstrates the US business community’s trust in economic development prospects in Southeast Asia, including Vietnam and the Philippines.
It also reaffirms US businesses’ long-term investment commitment in Vietnam and the Southeast Asian region.
US businesses seek investment opportunity in Vietnam
Representatives of leading US businesses met with Vietnam Fatherland Front (VFF) Central Committee President Nguyen Thien Nhan on June 2, expressing their desires to deeper penetrate the Vietnamese market.
The businesses including those operating in insurance, energy and education and training said during their one-day visit, they are scheduled to discuss with government officials and the local business community measures to boost bilateral trade relations and accelerate the Trans-Pacific Partnership (TPP) agreement negotiations.
They expected to work with ASEAN governments and business partners, to speed up the establishment of the ASEAN Economic Community (AEC) in 2015 as planned.
VFF President Nhan briefed the guests on Vietnam’s socio-economic development, its competitive advantages, and major development goals and orientations by 2020.
Nhan and US executives examined Vietnam’s economic situation, its investment opportunities, ASEAN community building efforts, and TPP negotiations.
The US delegation’s visit to Vietnam is conducted by the US-ASEAN Business Council which is the leading organisation in promoting US-ASEAN trade relations. Its members include the US’s largest groups which are operating in ASEAN member states.
US businesses acknowledge Vietnam’s potential
Vietnam boasts great potential for cooperation with US companies and the US pledges to support Vietnam’s economic development for prosperity.
US Secretary of Commerce Penny Pritzker made the remark at a press conference in Hanoi on June 2 as part of her visit to Asia which focuses on developing the economy, promoting US technologies, and heightening the importance of environmental management.
Ms Penny Pritzker said that 20 years of Vietnam-US normalization has witnessed a significant milestone with two-way trade increasing by 50 times from US$225 million to US$30 billion.
Prizker said that Vietnam has experienced remarkable growth which has been maintained for many years. Last year, the US exported goods worth more than US$5 billion to Vietnam, up 8% against the previous year and imported US$24.6 billion from the country , up 21.6%.
The US’ economic goal is to promote long-term and sustainable development with ASEAN countries, boost the US’ economic development, and demonstrate its commitments to cooperative trade activities. This visit has also contributed to developing both software and hardware infrastructure to support US businesses in cooperating with ASEAN.
Prizker said that Vietnam has great advantages in joining the Trans-Pacific Partnership (TPP) Agreement which benefited to the relevant parties, as the Asia-Pacific region has accounted for 40% of  global GDP.
The US official said that this is a wonderful time to strengthen trade ties between the two nations,, when the final TPP negotiation round is expected to take place soon and many US businesses are keen on investing in Vietnam and have committed to their long-term operations in Vietnam and ASEAN countries.
Regarding China’s illegal positioning of oil rig Haiyang Shiyou-981 in Vietnam’s exclusive economic zone, Prizker stated that this is a intentionally provocative act which has escalated tension in the EastSea. The US’ tasks are to maintain peace, stability and ensure safety and freedom of navigation in the region.
US businesses want to do long-term business in Vietnam and the ASEAN market which has a population of 600 million. US businesses have advantages of technologies, energy, tourism, insurance and financial services.
They see great potential in Vietnam and ASEAN and want to make their stronger presence and long-term development in Vietnam and the regional grouping.
HCMCity, Japanese region further industrial cooperation
The Ho Chi Minh City People’s Committee and the Economy, Trade and Industry Department of Japan’s Kansai region on June 2 signed a framework agreement on cooperation, under which they will enhance connections in support industry.
The two sides will also speed up the establishment of a business environment that can facilitate Kansai enterprises’ investment in the support industry in Ho Chi Minh City.
The city has assigned its management board of industrial and export processing zones to set up a division in charge of connecting ties with Kansai and providing consultations for its enterprises.
At a meeting with the Japanese guests earlier, Chairman of the municipal People’s Committee Le Hoang Quan said that Vietnam in general and Ho Chi Minh City in particular, commits to creating all favourable conditions for foreign investors, considering them part of the country’s economy.
Toshinori Kobayashi, head of the Kansai department, the region’s businesses, especially those operating in the support industry, are paying much attention to boosting investment in Ho Chi Minh City and its surrounding areas.
Japanese company confident in Vietnam business climate
More and more Japanese businesses are flocking to Vietnam, said Japan’s Foval Corporation Chairman and CEO Hideo Okubo, who is also Chairman of the Supporting Committee for Globalisation of Japanese small and medium enterprises (SMEs).
Japanese investors have confidence in the country and consider Vietnam their most attractive destination. However, a few Japanese businesses raised concern over the recent disturbances in some Vietnamese industrial zones, Okubo said.
Most Japanese firms understand Vietnam’s stance on the EastSea issue and show their sympathy with the country, he added. Okubo highly valued the Vietnamese government’s effective solutions for dealing with the chaos, supporting affected foreign businesses and ensuring social order and security.
The Foval Corp CEO predicted that the number of Japanese investors to Vietnam will continue rising. They will either directly invest in overseas markets or pour money in the form of authorised production, he said.
Okubo also highlighted the role of the Vietnam Chamber of Commerce and Industry (VCCI) and the Japan Chamber of Commerce and Industry (JCCI) in creating a close link among businesses from both countries.
HCMC FDI soars
Between January and May, Ho Chi Minh City reported an increase of over 356 per cent in investment capital of new foreign-invested enterprises against the same period last year.
A total of 120 new FDI projects were licensed with a combined capital of more than $724 million in the southern economic hub over the first five months, down 8 per cent in project number in comparison to last year’s first five months, but with a very significant value increase.
In addition, 40 existing foreign invested enterprises increase their capital by $69 million in the period, putting total FDI inflow to the city at $793 million, up 119 per cent, according to the Ho Chi Minh City Department of Planning and Investment.
A report issued by the department on May 26 showed that 9,566 Vietnamese enterprises were licensed in the city with combined capital in dong equal to almost $2.53 billion over the first five months of this year, up 26 per cent. However, the number of enterprises decreased by 2 per cent.
Addressing a five-month review meeting on May 26, city chairman Le Hoang Quan remarked that both FDI and local investment flows to the economic hub were positive. He added that in the remaining months of the year, the city would give priority to business loans for agriculture, manufacturing for export, support industry, small and medium-sized enterprises, and hi-tech companies.
PM orders tougher management of guest workers in RoK
PM Nguyen Tan Dung has tasked inferior levels to work with the Republic of Korea (RoK) to tighten management of Vietnamese guest workers in the Northeast Asian country.
The move aims to prevent Vietnamese guest workers from breaking contracts and illegally residing in the RoK.
The PM requested the Ministry of Labor, Invalids and Social Affairs (MoLISA) to cooperate with other ministries, agencies and localities to provide adequate information on policies and regulations for guest workers.
The MoLISA directs localities and labor export companies to raise the quality of selecting and training for guest workers.
Each year, Viet Nam sends around 90,000 guest workers abroad, including 10,000 to the RoK.
Experts call for fruitful linkages
Developing close links between stakeholders involved in fruit production and consumption is one of the measures required to sustainably develop fruit production in the Cuu Long (Mekong) River Delta, a forum heard last Saturday.
The delta, which has conducive climatic and soil conditions for fruits, has more than 466ha of orchards that yield 4.6 million tonnes of fruits annually, accounting for 62 per cent of the country's total output, according to the National Agriculture Extension Centre.
The region has in recent years developed zones for growing specialty fruits like Hoa Loc Mango in Dong Thap, dragon fruit in Tien Giang Province, Nam Roi pomelo in Vinh Long, and green skin pomelo in Ben Tre, ensuring a stable source for local consumption and exports and significantly improving farmers' incomes, Phan Huy Thong, the centre's director, said.
But fruit production and distribution in the region still face many problems, with farmers often hit by falling prices in case of bumper crops, delegates said.
Besides, the small scale and scattered nature of farming, huge post-harvest losses, inconsistent quality, unreliable outlets, diseases, and lack of tie-ups with businesses threaten sustainable development, they said.
The small scale of production precludes mechanisation and the region is unable to supply large quantities with similar size, colour and quality for exports, they said.
According to the Southern Fruit Research Institute, 90 per cent of the region's fruit output is consumed in the domestic market, with only the rest exported, mainly to China.
Other markets like the US, EU and Japan have approved import of a few Vietnamese fruits like dragon fruit, pomelo, banana and rambutan.
These market have a large demand and offer higher prices, but also have strict hygiene and food safety requirements, it said.
To sustainably develop fruit farming, each province should restructure production and link up production and consumption, delegates agreed.
Local agricultural extension centres should ensure farmers use good agricultural practice (GAP) standards to add value to their fruits and enable exports to choosy markets, they said.
Proper planting techniques should be adopted to control diseases, they said.
Nguyen Van Hoa, director of the Southern Fruit Research Institute, said training is needed for human resources, especially those who analyse fruit production and demand.
Global fruit demand is expected to continue rising in the coming years, giving the region an opportunity to boost exports, he said.
The forum, organised by the National Agriculture Extension Centre, saw nearly 500 policymakers, scientists, business executives, and farmers from the delta take part.
Manufacturing continues to rise
Overall business conditions in the manufacturing sector strengthened in May amid an ongoing increase in client demand as output increased for the eighth consecutive month amid another solid expansion in new business, according to the HSBC Vietnam Manufacturing PMI report.
The report released yesterday said headline seasonally adjusted Purchasing Managers' Index (PMI) - a composite indicator designed to provide a single-figure snapshot of operating conditions in the manufacturing economy - posted 52.5 in May from 53.1 in the previous month.
The PMI is based on data compiled from monthly replies to questionnaires sent to purchasing executives in around 400 manufacturing companies. An index reading at 50 indicates a neutral level, above 50, a positive level, and below 50, a negative one.
Growth of new orders was recorded for the sixth successive month in May, with the solid rate of expansion only slightly weaker than April's record high.
Panellists reported that improving economic conditions had helped to support client demand.
New export orders also rose in May, albeit at a slight rate.
Higher customer demand led to another rise in production during the month, the eighth time in a row. Some panellists reported that purchase of materials in recent months had enabled them to raise their output.
Backlogs decreased modestly following a rise in the previous month.
The recent changes to transportation rules again had an effect on the manufacturing sector in May as suppliers' delivery times lengthened to the largest extent in the survey's history as new tonnage rules meant that suppliers had to make more trips to deliver the same amount of goods.
The rules also impacted the cost of shipping, in turn pushing the rate of input cost inflation up for the second month running to the fastest since March 2012.
Despite the sharp rise in input costs, manufacturers left their output prices largely unchanged during the month. While some panellists reported having passed on higher cost burdens to their clients, others indicated that efforts to stimulate demand had led them to reduce their charges.
Employment increased for the second month running in May, though the rate of job creation slowed and was only slight. Higher production requirements led some panellists to raise staffing levels.
Increased output requirements also led to a rise in purchasing activity during the month. Input buying has now increased in each of the past nine months, with the rate of growth remaining solid despite easing from that seen in April.
Stocks of purchases decreased modestly as inputs were used in the production process. Stocks of finished goods also fell marginally following a rise in the previous month.
Commenting on the Vietnam Manufacturing PMI survey, Trinh Nguyen, Asia Economist at HSBC, said: "The latest PMI shows that the manufacturing sector in Viet Nam is competitive, with activity still expanding, albeit at a slower pace.
"The concern really is the added costs to manufacturers, which come at a time when exporters already incur high logistic costs.
"Profit margins are being squeezed, as weak domestic demand makes it hard for manufacturers to raise output prices despite rising production costs.
"We expect the SBV to keep rates steady to support domestic demand."
Experts urge banks to lower cost of lending for local businesses
There is a need for banks to cut the lending interest rates further to make bank loans more accessible, and to rethink the implementation of the real interest rate policy.
This message was delivered at a workshop held by the State Bank of Viet Nam in Ha Noi last Saturday.
"Vietnamese enterprises are bearing too high capital costs that reduce their competitive and productive capacities in exports and domestic markets," said Luu Duc Hai at the Development Strategy Institute under the Ministry of Planning and Investment.
Although Vietnamese exporters have privileged interest rates between 8 and 10 per cent yearly, the borrowing costs are estimated to be 1.4 to 2 times higher than in some regional countries. The exporters in China pay only 6.6 per cent per year, while those in Thailand and Malaysia pay 6.9 per cent and 4.9 per cent respectively.
On the other hand, Vietnamese producers in non-priority sectors are paying between 10 and 13 per cent. This is a big disadvantage if they have to compete with foreign direct investment (FDI) enterprises in the domestic market.
The FDI enterprises from the US, Japan, South Korea and Taiwan have to pay only between 1.5 and 4.7 per cent annually to gain financial sources for their business in Viet Nam.
Hai said that if the lending interest rates are not cut, it would be hard to score high and achieve sustainable economic growth in the medium and long term.
Experts said that a practical implementation of the negative real rate of monetary policy was likely to be the answer.
The real interest rate is the rate of interest a depositor or an investor expects to receive after allowing for inflation. It is used to measure the purchasing power of interest receipts and is calculated by adjusting the nominal rate charged by taking inflation into account.
Accordingly, a positive real interest rate is a situation when the nominal interest rate is higher than the inflation rate. A negative real interest rate occurs when the nominal interest rate is lower than the inflation rate.
Implementing a real interest rate is supposed to balance the interests of depositors or the investors and the credit system.
Viet Nam has followed the positive real interest rate, but it's unlikely to help the economy in practice because of the high accumulation of gold and foreign currencies, and the overall inflation.
Hai said that using the overall inflation rate to decide the positive real interest rate unnecessarily pushed up deposit interest rates in the banking system.
When the inflation rate was still high, maintaining the policy of positive real interest rate would further fuel the growing lending interest rate. This kind of practice would harm enterprises, experts said.
Under the current circumstances, experts said a negative real interest rate policy would cut the lending interest rate, and create agreement and sharing among depositors, banks and enterprises.
In 2008, Viet Nam maintained a negative real interest rate policy to deal with the 22 per cent inflation rate. A similar situation happened with the US in 2004 and with China in 2004 and 2008.
The credit growth of Viet Nam's banking system reached 1.31 per cent between January and May 23; the total supply was an estimated 5.28 per cent higher than the end of last year; and the total mobilised capital increased by 4.2 per cent.
The country's consumer price index in May inched up 0.2 per cent against the previous month amid rising supply and low demand, according to the General Statistics Office. Compared with the first five months of 2013, the index rose by 4.72 per cent.
Garment, textile sector seeks out new suppliers
Garment and textile companies have been actively seeking material suppliers to reduce dependence on imports from China, due to complicated changes in the market.
Cao Anh Dung, Director of the Ministry of Industry and Trade's Light Industry Department, told reporters at a press briefing in Ha Noi yesterday to review the country's economy in the first five months of the year, that exports of businesses in the light industry including garment and shoes had shown a positive trend.
In addition, imports of materials for the garment and textile sector have been normal at the border gates.
Statistics from the ministry showed that cloth production from natural fibre in May was estimated at 27.2 million sq.m, reducing 5.4 per cent over the previous month. The total production in the five-month period was 129 million sq.m, posting a 17 per cent year-on-year increase.
The sector's export turnover in May was US$1.45 billion, reducing 8 per cent against April. However, total turnover in the first five months of the year was $7.44 billion, up 17 per cent over the same period last year.
Deputy General Director of the Viet Nam Garment and Textile Group (Vinatex) Hoang Ve Dung said the raw material market for the garment and textile sector has not been changed much though several companies in the group imported materials from China.
The Viet Nam Garment and Textile Association asked enterprises to actively seek materials from Thailand, South Korea, Indonesia, Malaysia and India.
Rice exports increase
Phan Van Chinh, Director of the ministry's Import-Export Department, said rice exporters have signed export contracts worth 4.3 million tonnes, an increase of 17 per cent as compared to the same period last year despite the difficulties in the market. By the end of May, rice exports reached 2.7 million tonnes while another 1.6 million tonnes are awaiting shipment.
Asked whether the Ministry of Industry and Trade would remove floor prices on rice exports, Chinh said the issue was being discussed with ministries and relevant agencies.
The Government has told the ministries of Industry and Trade, and Agriculture and Rural Development, to consider the impact of pilot removal of the floor prices on rice exports and propose appropriate management measures to facilitate export activity.
The Viet Nam Food Association (VFA) proposed to allow local firms to export rice to their clients at prices agreed upon by the two sides, instead of the floor prices set by the association.
The FOB floor prices set by the VFA are $410 per tonne for 5 per cent broken rice, $375 per tonne for 25 per cent broken rice and $365 per tonne for 35 per cent broken rice.
No power tariff rise
Speaking further, Deputy Minister Do Thang Hai affirmed that electricity tariff would not be increased in the near future. Instead, the sector would ensure power supply to production and consumption in the summer months.
In a recent decision, Prime Minister Nguyen Tan Dung had ruled that electricity retail prices will apply to six price levels instead of the current seven levels.
The decision, which will take effect as of June 1, stipulates that power tariffs for households consuming 0 to 50kWh will be 92 per cent of the average price, 95 per cent for households consuming 51 to 100kWh, and 110 per cent for those in 101 to 200kWh bracket. It would be 138 per cent for those consuming 201 to 300kWh, 154 per cent for the 301 to 400kWh bracket and 159 per cent for households consuming more than 401kWh of power.
Dinh Van Phuc, Deputy Head of the Electricity Regulatory Authority of Viet Nam (ERAV) said the new calculations did not mean an increase in power tariffs. The average retail price was VND1,508.85 per kWh.
The ministry's figures showed that power output in the first five months of the year was 52.42 billion kWh, increasing 11.1 per cent over the corresponding period last year.
Ministry urged to hasten support to riot-affected workers
Deputy Prime Minister Vu Van Ninh has asked the Ministry of Labour, Invalids and Social Affairs to continue instructing localities to assist workers who had to stop working due to recent social disorders.
The workers will receive wages during their days-off between May 12 and July 1, the day before those enterprises are scheduled to resume their normal operation.
The payment is equivalent to the wage level agreed upon by affected enterprises and labourers or their representatives, but not below the minimum level prescribed by the Government. The expense used to pay workers would be deducted from corporate income tax later.
The disturbances in some localities, including central Ha Tinh and southern Binh Duong and Dong Nai provinces, erupted during workers’ rallies against China’s illegal placement of its oil rig Haiyang Shiyou – 981 in Vietnam’s continental shelf and exclusive economic zone from early May.
Some extremists incited others to destroy the property of foreign firms, as well as some national businesses and individuals, and acted against law enforcement officials, disrupting social order and business activities.
Authorities have arrested and brought to trial hundreds of rioters.
Vietnam heeds aquaculture sector restructuring
Vietnam will boost restructuring its aquaculture production in the coming time in a bid to raise the added value of products and promote sustainable development in the sector, the Ministry of Agriculture and Development has said.
Accordingly, the model on the linkage of farming, processing, distribution and production will be developed for the aquaculture field in order to improve the quality of products, thus meeting requirements and standards for export.
Meanwhile, in the field of exploitation, models of offshore fishing teams will be intensified in connection with fishery logistics services.
Under the Action Plan for implementing the restructuring issued by the ministry, the sector will also allocate money from its budget to building fishing ports and shelters for fishing boats, and developing concentrated production and farming areas.
Vietnam is now the third largest aquaculture country in the region and among the top 10 exporters of aquatic products in the world.
Particularly, the country accounts for 90 percent of the world tra fish supply, with its products being sold to 149 countries and territories.
The European Union, ASEAN, the US and China are now major importers of Vietnamese tra fish, making up 77.5 percent of the country’s total exports in 2013.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR

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Farming imports up 20% this year
 
Employees work on a shrimp processing line at Minh Phu Seafood Corp in southern Ca Mau Province. Experts have urged the country's agriculture sector to attract more investment. - VNA/VNS Photo Huynh The Anh
HA NOI (VNS) - Viet Nam's agriculture, forestry and fisheries sector had a year-on-year increase of 20.1 per cent in imports in the first five months of this year.
This announcement was made by the Ministry of Agriculture and Rural Development, adding that the increase was a total US$8.56 billion in imports of material and products for production.
During the first five months, Viet Nam imported pesticide worth a total of $337 million, 5.6 per cent higher than the same period last year.
Almost all the pesticide products used in the domestic market were imported, with an annual volume of 70,000 tonnes, stated Bui Si Doanh, deputy head of the Plant Protection Department.
Imports of animal feed products material for producing animal feed had a light surge of 0.1 per cent to $1.2 billion against the same period last year. Of which, imports had a year-on-year increase of 49 per cent in volume to 809,000 tonnes and also the same percentage in value to $474 million for soybean.
Imports of corn surged by 3 times in volume to 2.24 million tonnes and 2 times in value to $576 million compared with the same period last year.
Viet Nam must pay $200 million each year to import varieties of plants, including fruit, vegetable and rice, the ministry said.
Meanwhile, in the first five months of this year, imports of fertiliser had a reduction of 14.9 per cent in volume to 1.31 million tonnes and 35.8 per cent in value to $405 million against the same period last year because the domestic supply increased to meet the demand at home market.
Experts reported that the agricultural sector should reduce imports of products and materials for production to gain sustainable development of the sector in the future. To achieve the target, the sector should promote attraction of investment from both domestic and foreign enterprises with modern technology for increased output and quality of farming products to avoid dependence on imports. - VNS

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Social News Headlines 4/6

Japan praises Vietnam’s JTC scandal settlement
Japan is appreciative of Vietnam’s rapid response and strict settlement of those involved in the alleged graft scandal of the Japan Transportation Consultants, Inc. (JTC).
Vietnam launched investigations and detained several transport officials after learning that these officials had engaged in a JTC graft scandal.
On March 20, JTC President Tamio Kakinuma admitted that the Tokyo-based railway consultant firm had paid "kickbacks" to foreign civil servants in Vietnam, Indonesia and Uzbekistan in return for orders for five ODA projects.
He revealed that JTC paid JPY 80 million (about US$780,000) to win a US$41 million urban railway bidding contract in Vietnam, funded by the Japanese Government's official development assistance (ODA).
At a meeting in Hanoi on June 2, Japanese officials acknowledged Vietnam’s efforts and briefed Vietnam on the progress Japan has made in investigating the case.
Both sides discussed measures to prevent malpractice and extortion in implementing ODA-funded transport projects in Vietnam.   
Vietnam offers modern medical equipment to Cambodia
Vietnamese Defence Attaché to Cambodia Nguyen Anh Dung on June 2 presented a modern medical equipment package worth over VND2 billion to a Royal Cambodian Army hospital in Preah Vihear province.
Military hospital Samdech Techo Hun Sen Sra Em was officially opened in late 2013 with total investment capital of VND4.5 billion, as a gift from the Vietnam Ministry of Defence.
Over the years the Vietnam Ministry of Defence has assisted Cambodia in building infrastructure and providing medical equipment, developing human resources at all levels, giving free medical check-ups and medicine, and treating military Cambodian officers and soldiers in Vietnam.   
In 2014, the Ministry plans to deploy medical care packages worth more than VND50 billion to the Royal Cambodian Army, focusing on military hospitals and healthcare centres across the country.
NA deputies discuss full and part-time roles
National Assembly (NA) deputies yesterday discussed a draft law on the organisation of full and part-time deputies at the National Assembly.
The focus of the discussion at the seventh session was about the number of full-time NA deputies, an outline of their work and their rights and responsibilities at central and local levels.
Most deputies agreed to increasing the number of full-time NA deputies from 25 per cent to 35 per cent of the assembly.
Deputy Pham Huy Hung from Ha Noi proposed that the number of full-time deputies should be increased term by term.
He added that the percentages of deputies from central and local levels should be clearly set.
He also proposed that the draft law stipulate the working time and the responsibilities and rights of part-time NA deputies before, during and after meeting sessions.
Deputy Nguyen Dinh Quyen, also from Ha Noi, said the draft law should clearly reflect the position and role of the National Assembly, which, he said, was the highest representative body of the people, the highest organ of State power - and a legislative body.
He said the draft law needed to clearly indicate the role and position of NA deputies and help raise the effectiveness of their activities.
Quyen also proposed that the age range for NA deputies should be clearly stipulated.
Deputy Huynh Van Tiep from the southern city of Can Tho said the responsibilities of the NA deputies in supervising the legal compliance of local People's Committees and People's Councils should also be clearly defined.
Viet Nam attends ICAPP party meeting
A delegation from the Communist Party of Viet Nam (CPV) took part in the 22nd meeting of the International Conference of Asian Political Parties (ICAPP) Standing Committee in Russia's Vladivostok city from May 30 and June 1.
At the event, delegates from the 23 major Asian political parties which are members of the Committee, reviewed the operations of the ICAPP since their previous meeting in Turkey, and discussed preparations for the ICAPP General Assembly, scheduled for September this year in Sri Lanka.
Mentioning the region's current situation, especially tensions in the EastSea, the Vietnamese delegation, led by Tran Dac Loi, deputy head of the CPV Central Committee's Commission for External Relations, stressed the urgent need to follow the principle of not taking unilateral action. He said all sides must comply with international law through negotiations and the use of peaceful means to resolve disputes.
He expressed his wish for ICAPP to play an active role in protecting peace and stability in the region.
On the sidelines of the meeting, the Vietnamese officials had meetings with representatives from the United Russia Party, the Communist Party of China and other political parties to exchange views on issues of mutual concern.
Cuba to train VN scribes
Cuban news agency Prensa Latina (PNL) will train more Vietnamese students in reporting and editing under commitments made in talks between top officials of the Vietnam News Agency (VNA) and PNL.
The two news agencies will also step up exchange of print and television news.
The measures to strengthen co-operation were agreed upon in meetings between Prensa Latina President Luis Enrique Gonzalez and VNA Director General Nguyen Duc Loi, who is on a five-day visit to Cuba that ends today.
Gonzalez informed Loi that Prensa Latina was paying attention to improving its audio-visual and other multimedia coverage.
He pledged to review and fully implement co-operation agreements reached by both agencies.
In his turn, Loi said that VNA was intent on improving the quality of its coverage on the way to becoming a multimedia group in its role as the Government's trustworthy information source.
He thanked Prensa Latina for helping VNA publish its Vietnam Pictorial magazine in Cuba and other Latin American nations, as well as supporting activities of the VNA bureau in Cuba.
Earlier, the Vietnamese delegation was received by head of the Cuban Party Central Committee's Ideology Commission, Rolando Alfonso Borges, who highly valued the partnership between the two news agencies.
He encouraged the two news agencies to continue sharing experiences and co-operating in dissemination of information regarding the nations' socialist-oriented construction and development.
Loi briefed the host on recent political and socio-economic developments in Viet Nam, especially tensions in the EastSea after China illegally deployed an oil drilling rig and various ships to operate in the exclusive economic zone and continental shelf of Viet Nam.
During the visit, the Vietnamese delegation held talks with the management board of the Cuban domestic news agency (AIN). The two sides agreed to boost cooperation and news sharing under signed agreements.
The AIN pledged to continue providing news on Cuba, especially socio-economic development in its localities.
The VNA delegation also visited and laid flowers at the Ernesto Che Guevara memorial in central Villa Clara province.
New habits prevent outbreaks
The number of measles and dengue fever cases has subsided as a result of local citizens' increased awareness of the need for vaccinations and preventive hygienic measures.
General Department of Preventive Medicine said that measles cases had hit a peak in February but had fallen in the last few weeks.
As of May 29, at least 96.3 per cent of people had received the necessary two measles shots, compared to 57.5 per cent as of April 19.
BinhPhuocProvince, where only 8.21 per cent of children had received shots as of April 19, was included on the department's list of provinces that had achieved a 95 per cent rate or above as of May 29.
Since the beginning of the year, the country has recorded 4,950 incidences of measles. Of those, 87 per cent did not get measles vaccinations.
Many parents thought that getting measles was not life-threatening, so they were not especially concerned about taking their children to get vaccinations.
Dr Truong Huu Khanh, head of the HCM City Paediatric Hospital No. 1's neurology and infectious disease ward, said they began paying more attention to preventive measures after seeing family members and friends contract measles and other diseases.
In the last few weeks, many centres have seen growing numbers of people coming to be vaccinated against measles.
Over the last four months, there have been reports in the media about deaths from measles.
Hearing the reports, Nguyen Thi Ngoc Han of Thu Duc District's Linh Xuan Ward said she had brought her 26-month-old son to the ward's health centre for the vaccination.
Phan Trong Lan, head of the HCM City Pasteur Institute, said that the disease-prevention habits of local residents would help stop the spread of measles and other diseases.
Many residents believed that the responsibility for prevention rested in the hands of health officials and authorities, Lan said.
"So they do not take the initiative to clean areas around where they live," he said.
Most active participants in the local environmental-hygiene programmes are health officials and local authorities in wards and communes.
Entering Alley No. 226 in Linh Xuan Ward with more than 30 rented rooms, I saw a plot of land covered with rubbish thrown there by people who live in the rooms.
When asked whether they know that rubbish like disposable containers can be home to mosquito larvae when it rains, they said they were aware but they had little time to clear the area. They assumed that local authorities would do so. And, besides, no one in the area had contracted dengue fever, they said.
Although many residents are given free bottles of Chloramine B chemical disinfectant for the prevention of hand, foot and mouth disease, they still do not use it because they do not have the habit of disinfecting their homes.
Diseases such as hand, foot and mouth disease are still breaking out because of these attitudes, Nguyen Huu Hung, deputy head of the city Department of Health, said.
Residents should also take the initiative and participate in local environmental hygiene programmes and not rely solely on local officials, he said.
Lai Chau suffers from serious lack of doctors
The northern province of Lai Chau is facing a serious doctor shortage in spite of numerous efforts made by authorities to attract more health professionals to the remote area.
Incentives have been offered to urban-based doctors, while the VND415 billion (US$19.7 million) Lai Chau GeneralHospital, considered the most modern provincial hospital in the northern mountainous area, has been built.
The hospital has 300 beds for in-patients and has the capacity to provide health checks to 500 patients per day. But only 30 of the hospital's 70 workers are doctors, with only 8 working in the paediatrics ward. The hospital's anaesthetic ward has two doctors among its 26 staff.
Do Thi Duong, a 27-year-old doctor in the anaesthetic ward, has been forced to work continuously without days off. Duong even rented a house closer to the hospital, to save time travelling from LaiChauCity.
"Once the hospital received too many patients that needed surgery, so I stayed awake for three consecutive nights," said Duong.
On average the ward helps about 10 patients per day. At the moment, Duong is the only doctor in the ward because the other doctor is at a training course.
During the past 10 years, the province has made a concerted policy push to attract more doctors, but only one or two come to work in the province each year. This is a far cry from the 300 doctors the province needs to meet demand.
Meanwhile, the doctor shortage has forced hospital management boards to rotate responsibility for conducting health examinations. The province has also had to cope with a massive brain-drain, with many district-level doctors seeking positions at upper-level hospitals after their training.
More than 20 doctors have moved from LaiChauProvince to work in urban areas during the past three years.
Many doctors forego certificates, qualifications, social and health insurance and additional allowances to relocate.
Doctor Do Quy Nhat, who previously worked at the Sin Ho District Medical Station, is among many who relocated to more populous areas and did not return, despite that he would have been promoted to lead a clinic in Sin Ho District.
Do Cong Danh graduated from ThaiBinhMedicalUniversity and worked at the Sin Ho District Medical Station from 2006. After being assigned to advanced training in 2008, he left the station in 2013.
Danh even changed his phone number so he couldn't be contacted.
Director of the Lai Chau Department of Health Nguyen Cong Huan said that low incomes and allowances were the main reason behind doctors becoming disillusioned working in the province.
To stem further losses, the department has established regulations that doctors must work in the province for at least five years after completing their studies, while the province has also looked to assert its right to manage their qualifications.
The province will assign children of ethnic minorities in the province in an attempt to foster local talent. Meanwhile, the province has also said it will support doctors with extra money and accommodation to reduce the strain.
Binh Dinh thirsts for potable water
The prolonged hot weather has caused a severe shortage of fresh water for nearly 600 households in the central coastal BinhDinhProvince's HoaHoiVillage since early this year.
Tran Thi Chanh, head of the village, said that because of insufficient rain and the prolonged hot weather since February, a majority of the local wells had run dry.
Tran Thi Gai, a local resident, said that her family's well had run dry despite being around 7 to 8 metres deep. Her family now has to buy water from another place, she said.
"We run a rest house and it costs about VND5 million or US$235 per month to buy water," she said.
Gai said that the high cost of buying water has affected her family's business activity.
The other households also buy water, with a cubic metre of water costing about VND75,000 or $3, including the cost of transporting it. Each household pays between VND1 million to VND4 million to buy water per month.
The same situation exists in the Nhon Hai Commune where the people had to contribute money for hiring men to dig 100 wells to irrigate 120 hectares of the summer-autumn rice crop.
In the meantime, hundreds of shrimp farmers in the two communes of Vinh Trach Dong and Hiep Thanh in the southern BacLieuProvince have been facing water shortage in their 1,000 hectares of shrimp farms for several months.
As many as 11 irrigation canals, which used to provide water to the shrimp farms, suffered a high degree of sediment collection, making the farmers unable to get water for their shrimps.
According to a Vietnam News Agency correspondent in the province, the authorities of the two communes did nothing to help the farmers.
The two communes' authorities claimed that they had not received any complaints from the local shrimp farmers.
Energy group funds schools upgrade
An energy group led by Chevron Viet Nam yesterday announced its would give US$150,000 to the National Fund for Vietnamese to upgrade 5 schools and provide scholarships to more than 800 students in the Mekong Delta this year.
The commitment forms part of the group's education programme that has provided scholarships to more than 3,800 students and upgraded 19 schools in the Mekong Delta region since 2009.
Police arrest two drug traffickers in Nam Dinh
The police in the northern NamDinhProvince today announced the discovery of a drug trafficking ring that extended from the northern border province of Lai Chau to Nam Dinh.
On Sundaymorning, they caught drug trafficker Le Thi Sinh, 47, of LaiChauCity who was carrying three cakes of heroin, weighing about 350 grams each.
After investigating further, they caught another trafficker, Tan Leng May, 67, of LaiChauCity for transporting 12 cakes of heroin by motorbike.
Colonel Vu Manh Tuong, head of Nam Dinhs Police Department for Drug Crime Investigation, said that the two arrested were part of a drug trafficking ring. The investigation is being intensified.
Earlier in April, the local police had caught a drug trafficker from the central Nghe An Province, who was carrying 10 cakes of heroin and 28 tablets of methamphetamine in the provinces Vu Ban District.
Students welcome real life questions
The first of the two-and-a-half-day high school final exams went smoothly, with students welcoming questions related to "real situations" they cared deeply about, local reports said.
A Vietnam News Agency report cited both teachers and students as saying there were "no problems" on the first day, and that they expected the same of the remaining days.
The finals began with a two-hour exam on literature in which students were asked to express their opinions on China's illegal placement of its Haiyang Shiyou-981oil rig in Vietnamese waters.
On Huyen Trang, a student at Ha Noi's NguyenTraiHigh School, said that she was very interested in the question about China's illegal actions in Viet Nam's waters because it was "hot news" and helped students express their responsibility and love for the nation.
She also said that the questions asked were related to lessons that they had revised prior to the examination.
More than 76,000 students in Ha Noi sat for the literature exams.
Hoang Xuyen, a literature teacher at the QuangKheHigh School in the northern province of BacKan, said some of the exam questions were close to relevant situations that people were deeply concerned about. They also matched the capacity of most students, she said.
The city had set up 149 exam centres and 20 inspector delegations to monitor the conduct of the examinations, and Deputy Chairwoman of the municipal People's Committee, Nguyen Thi Bich Ngoc, visiting several schools where the tests were held yesterday.
In the central province of Thua Thien-Hue, more than 14,300 candidates set for the exams at 34 centres.
Pham Van Hung, director of the provincial Department of Education and Training, said that the printing and transportation of question papers as well as the proctoring of examinations were done "seriously as per regulations."
More than 1,800 teachers were assigned proctoring duties and nine students in the province quit the exams without stating any reason, he added.
In the southern province of Dong Nai, two candidates and one proctor were injured in traffic accidents after the literature exam yesterday morning and could not attend subsequent exams in the afternoon.
Hung said his department will ensure the affected students' rights based on their academic performance to date.
Meanwhile, the Central Highlands province of Dak Lak reported that of almost 24,000 candidates sitting for the examinations, more than 5,300 belonged to ethnic minority communities.
Ambassador praises Vietnamese student association in US
Vietnamese Ambassador to the US Nguyen Quoc Cuong has urged Vietnamese students and youths living in the US to keep up their enthusiasm, dynamism and creativity, on the occasion of the first anniversary of the Vietnamese Youth and Student Association (June 1, 2013-June 1-2014).
Speaking on June 2, the Ambassador said the association’s foundation meets the expectation of a large number of Vietnamese students in the country, which has reached about 16,000. He noted that during the past one year, many chapters of the association were formed across the US, creating links not only among Vietnamese students studying in the country but also with their peers in other countries.
Ambassador Cuong said he is most impressed by the dynamism and creativity shown in the association’s activities, which included campaigns to raise fund for flood victims and poor youngsters in the homeland, a news website at www.sinhvienusa.org, as well as numerous contests.
The ambassador expressed his hope that the association will continue to serve as a bridge to forge links between students from Vietnam, US students of Vietnamese origin and their peers in Vietnam and other countries, thus further contributing to the homeland’s development.
“Each Vietnamese student in the US is an ambassador of a Vietnam of renewal and international integration,” he said.
Psychiatric health services must improve: ministry
Nearly 10 percent of the Vietnamese population, or nine million people, suffer from mental disorders which come in different forms, with symptoms including anxiety, insomnia and emotional and behavioural disorders.
The Ministry of Labour, Invalids and Social Affairs raised the statistic at a conference in Hanoi on June 3, attended by experts from the US, partially attributing the trend to the pressures of the open-door economy and the rapid growth of technology in Vietnam.
The conference provided an opportunity for Vietnamese delegates to get updated on international experience in mental health care and social welfare models for taking care of mentally ill patients.
There are about 26 centres across the country rehabilitating over 10,000 patients with serious mental disorders. These clinics have been gradually improving the infrastructure and enhancing the quality of services.
However, they are encountering a number of difficulties such as insufficient medicine, imperfect policies, low pay for staff and limited public awareness of mental health.
Participants suggested the ministry build a national strategic framework in the field to provide better services for the patients.
They said the State should have a key role to play in expanding the social welfare network, which needs the participations of organisations, businesses and local people.
Source: VNN/VNA/VNS/VOV/ND/SGGP

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BUSINESS IN BRIEF 5/6

Greenback rises to one-year high
The U.S. dollar rose to the highest level over the past year versus Vietnam dong on June 3, staying at VND21,220 per dollar.
Vietcombank in the afternoon on June 3 quoted the greenback at VND21,220 per dollar, up VND40 against the previous day. The currency increased by VND115 a dollar, or 0.5%, compared to a month ago.
According to the website of the central bank, the dong-U.S. dollar exchange rate on the inter-bank market was VND21,036 per dollar on June 3, still lower than the ceiling of VND21,246.
Meanwhile, the dollar was traded for VND21,370 on the unofficial market, which was unchanged from the previous day, according to the owner of a gold shop in HCMC.
At a meeting with representatives of banks in HCMC on May 22 after the dollar fluctuated on both official and black markets, Nguyen Phuoc Thanh, deputy governor of the central bank, said some banks might have raised dollar prices given concerns over further price increases.
However, the central bank will not intervene in the market if dollar prices are still moving within the allowable trading band of 1%.
Thanh said that there was no pressure on the forex rate as the nation’s exports in the first four months this year increased 19% against the same period of last year. In addition, incoming remittances and foreign reserves remain strong.
Meanwhile, Saigon Jewelry Company (SJC) quoted gold at VND36.28 million per tael on June 3, falling by VND40,000 against the previous day. This was the lowest over the past 10 days. A tael equals to 1.2 troy ounces.
Few Vietnamese businesses open to outsourcing study
Most Vietnamese companies are unwilling to use outsourcing despite its benefits like the reduction in management work and payroll without any impact on output, according to a report by business consultancy Grant Thornton.
The International Business Report, based on interviews conducted last November with more than 3,300 CEOs, managing directors, chairpersons, and other senior executives from all industry, reveals that only 12% of businesses in Vietnam are open to outsourcing.
The effectiveness and cost saving of outsourcing are not realised by many Vietnamese companies, and so the service providers need to increase access to these companies, a potential market, said Trinh Thi Tuyet Anh, director of outsourcing at Grant Thornton Vietnam.
In certain cases, enterprises think they could lose control over critical business processes if they outsource, she said.
For small- and medium-sized enterprises in Vietnam, the cost of professional outsourcing services will be a considerable expense, she added as a reason for the unwillingness of Vietnamese firms.
Globally too the majority of business leaders have no plans to outsource any business processes in the near future. While the cost savings and process efficiencies that outsourcing can provide are widely recognised, many business leaders are worried about losing control of key processes.
Around 60% of global businesses have no immediate plans to outsource a business process. Outsourcing is least prevalent in Southeast Asia (26%), Eastern Europe (31%), and the Nordic countries (33%).
By contrast, more than half of businesses in southern Europe (64%) and Latin America (51%) either currently outsource or plan to.
Trinh Thi Tuyet Anh, director of outsourcing at Grant Thornton Vietnam, said outsourcing is a helpful tool for restructuring manpower; freeing resources from administration, and re-allocating them to operations.
Among those businesses which currently (or plan to) outsource back-office services, 57% globally cited improving efficiencies — marginally ahead of reducing cost (55%) — as the key drivers. In Asia - Pacific, both figures are 37%.
Of those businesses with no plans to outsource, the requirements to find cost savings (41%) and process efficiencies (33%) are the main reasons that will encourage them to consider it.
Anh said the results clearly show that outsourcing is worthy of serious consideration. Aside from driving efficiencies and reducing costs, outsourcing can allow business to tap into skills and expertise offered by their providers that might not necessarily be as readily available in the local labour market.
More domestic consumers put purchases on credit
Consumer habits of Vietnamese are changing, with an increasing number looking to purchase their desired products through affordable loans.
Igor Prerovsky, General Director of Home Credit Vietnam, invested by PPF, said at June 3 conference on consumer finance that consumer credit, which helps consumers buy their desired items and pay later, is expanding in Vietnam.
Statistics released by Home Credit showed that around 20% of consumers in the country's southern part make purchases on credit while it accounts for around 10% in the north. These figures are showing signs of increasing.
Prerovsky pointed out that consumer finance is another way to contribute to economic development through boosting purchasing capacity and demand, while enhancing living standards of consumers.
This also helps consumers to form a habit of saving, he added.
In addition, financial companies targeted low-income earners rather than the middle-class, in comparison with retail banks.
Home Credit, with more than 5,000 points of sale in all 63 provinces and cities in Vietnam, said fast, simple and professional services are the core basis for competition in the consumer lending sector but credit safety must be ensured.
Vietnamese, Bulgarian firms look to the future
Vietnamese enterprises and their Bulgarian counterparts have inked a number of partnership deals at a recent business forum in Sofia, the capital of Bulgaria, after a record turnout of 180 attendees found many areas for cooperation.
The deals cover a broad spectrum of areas, ranging from tobacco, paper export-import, garment accessories to confectionery.
Deputy Minister of Industry and Trade Ho Thi Kim Thoa, gave assurances that the ministry will help bolster ties between the two business communities in every possible way.
In his speech, Vietnamese Ambassador Le Duc Luu highly recommended the new economic partnership model reached by both countries’ leaders.
Once active, it will become an exemplary model for Vietnamese and Bulgarian stakeholders, he said.
Many Vietnamese firms in Bulgaria have already poured their money into their homeland and shipped Vietnamese goods to other European markets.
Two-way trade between Vietnam and Bulgaria averages US$70-80 million annually.
The event was co-hosted by the Vietnamese Ministry of Industry and Trade and the Bulgarian Ministry of Economy and Energy.
Korean Dong-IL Group builds first textile factory in Vietnam
June 3 marked the start of construction by the Republic of Korea’s (RoK) Dong-IL group on its first textile factory in Vietnam at Loc An-Binh Son Industrial Zone in Long Thanh district, Dong Nai province.
The facility, to be built on 12ha at a cost of nearly US$52 million, will have an annual capacity of 9,000 tonnes of products.
Dong –IL leaders said when the Posco E & C Vietnam factory is put into operation in 2015 as scheduled, it will generate hundreds of jobs for local people and its products will be exported to Asian markets.
Phan Thi My Thanh, Vice Chairwoman of the Dong Nai provincial People’s Committee, said 31 out of 35 industrial zones have been built on nearly 10,000ha in the province. They attracted more than 1,100 foreign direct investment (FDI) projects with a combined capitalisation of nearly US$20.6 billion.
The RoK ranks second among foreign investors in the province with 276 projects capitalized at more than US$4 billion.
Thanh expressed her hope that Dong-IL group and other Korean businesses in the province will help lure more Korean investors to the locality.
20% of Australian seafood imported from Vietnam
Vietnam is the third largest supplier of seafood to Australia, after New Zealand and China.
According to the Vietnamese Trade Office in Australia, the country imports more than 200,000 tonnes of seafood worth US$1 billion annually.
Its demand is set to increase in the future, creating huge opportunity for Vietnamese seafood products.
Large volumes of shrimp are consumed in Australia, with over 50,000 tonnes every year. More and more Australians are choosing frozen shrimp imported from Thailand and Vietnam due to cheap prices and improved quality.
Last year, Vietnam’s shrimp exports to the country rose by 27.5% fetching over US$128 million. Australia is the sixth largest consumer of Vietnamese shrimp, after the US, Japan, the EU, China and the Republic of Korea.
As Australia imposes strict regulations on food hygiene and safety, Vietnamese businesses are advised to ship high quality products with clear origin if they want to break into this demanding market.
In addition, Vietnamese suppliers are encouraged to make fact-finding tours of Australia to better understand local consumers’ taste and devise proper solutions for the retail and wholesale systems there.
ASEAN Customs chiefs meet in Lam Dong
The 23rd Meeting of the ASEAN Directors-General of Customs opened in Da Lat City, Lam Dong province, on June 3, bringing together nearly 70 delegates from ASEAN, Japan, the Republic of Korea and China.
Participants discussed and proposed orientations, action plans and working programmes for ASEAN customs in the 2016-2020 period.
In recent times, ASEAN customs has achieved significant progress in building the ASEAN Economic Community (AEC) in 2015. They have signed an agreement on customs, created a legal framework for implementing the ASEAN customs transit system (ACTS), and initially established the single-door customs mechanism in all ASEAN countries.
2014-2015 is considered a pivotal time for ASEAN to enter a new period of cooperation, integration and connectivity towards AEC.
ASEAN Secretary General Le Luong Minh said the results of the meeting will be an important step towards forming an ASEAN Community in 2015 as scheduled and beyond. Customs cooperation must bring out more specific results in the future, he stressed.
This is the third time Vietnam has hosted such event after meetings in 1995 and 2004.
Vietnam Customs Director General Nguyen Ngoc Tuc took the occasion condemning China’s provocative actions in the EastSea, following its illegal placement of the oil rig Haiyang Shiyou-981 deep within Vietnam’s exclusive economic zone.
He called on participating delegates to voice opposition to China’s act and support Vietnam’s peaceful struggle for justice.
Secretary General of World Customs Organisations (WCO) Kunio Mikuriya said the current EastSea tension partly affects maritime transport in the region. He expressed his belief that parties concerned will settle the dispute peacefully to ensure maritime safety and promote goods circulation and trade liberalisation in the EastSea and Asia-Pacific as well.
Dubai group looks to invest in Vietnam
Representatives from the largest Dubai group, ICD, are due to make a fact-finding tour of Vietnam to seek investment opportunity, especially in real estate in Quang Ninh province.
The commitment was made at a working session between ICD executives and Quang Ninh leaders following the latter’ recent visit to the United Arab Emirates (UAE).
Quang Ninh leaders briefed their hosts on the provincial socio-economic development master plan, including turning its Van Don economic zone into a special economic zone in the future with preferential policies. It may coincide with Dubai ICD development of the “Future city” project.
Jawad Khan, Dubai ICD representative, affirmed that the group will send a delegation to Quang Ninh late this year to seek investment opportunity there.
Dubai ICD is the UAE investment fund. It currently manages a huge property portfolio worth US$120 billion, including Emirates Airlines, Emaar, Emirates National Bank and many other companies.
East Sea dispute encourages consumption of Vietnamese goods, deputy minister
The ongoing EastSea dispute between Vietnam and China is an impetus for Vietnamese to prioritize consumption of domestically made products, said Mr. Do Thang Hai, Deputy Minister of Industry and Trade during a press conference on June 2.
Hai said that in order to narrow the trade deficit with China, Vietnam needs to increase exports and reduce imports.
The growth rate of Vietnamese goods touched 28.4 percent in the first four months this year, showing that several domestic products have been able to compete with Chinese goods, Hai added.
“In addition, the campaign ‘Vietnamese prioritize consumption of Vietnamese goods’ is launching to be drastically implemented to take advantage of the 90 million people market”, he said.
Vietnam is consuming several products that are to meet with requirements from the US and EU markets.
China’s oil rig placing on Vietnam’s continental shelf in May has prompted Vietnamese businesses and authorized agencies’ determination to implement the campaign.
Consumption of Vietnamese goods is patriotic at this time, Hai concluded.
Customs work overtime to help foreign firms
The Vietnam Customs has instructed its agencies to work overtime in weekday, at the weekend and in holidays to clear customs procedures for foreign companies hit by anti-China protests.
The instruction said that customs departments in provinces and cities should arrange a division to directly receive and solve problems for businesses and provide them with specific contacts.
They should also send officials to work with the companies and authorized agencies to assess losses of businesses. This aims to calculate the exempt or reduced tariff on damaged commodities and to extend tax payment deadlines for them.
Customs officials must facilitate customs clearance for export and import consignments of businesses including those that owe taxes so that they can resume production and meet their orders.
Binh Dinh makes ODA call out for project wish-list
Located in the southern-central coastal region, Binh Dinh is a key gateway to the country’s highland provinces, southern Laos and northeast Cambodia and Thailand.
The province has rich maritime and other natural resources, and huge potential for tourism. However, like many other provinces in Vietnam, Binh Dinh is facing many challenges in its economic development. Those challenges include underdeveloped infrastructure and an economy that remains dependent on agriculture. Because the province is located in the central coastal region, it regularly suffers from natural disasters such as typhoons.
Binh Dinh has learnt the importance of utilising all available resources to develop. As investment from the private sector in transportation infrastructure, healthcare, and education lags behind demand, official development assistance (ODA) from international donors is vital to the province.
In recent times, international donors have provided $281.44 million in ODA to 21 projects in Binh Dinh. To call for more financial support from international donors, the province has completed a list of projects needing ODA from 2015-2020. The list comprises 32 projects with a combined investment capital of $361.82 million, with $334.38 million needing to be raised from international donors and the remainder coming from the provincial budget. All of the projects are in the fields of healthcare, education, transport infrastructure, environment, agriculture, irrigation, and water supply.
Specifically, there are two projects in the healthcare and education sectors, capitalised at $38.5 million, three infrastructure projects with $92.25 million in total, and six projects in the environment field with total capital of $41.15 million. The agriculture and irrigation sectors include 14 projects with $79.82 million in total investment and five projects in water supply with $73.65 million.
Binh Dinh is doing its utmost to develop the local economy, but needs the support of the central government and international donors to make these efforts become a reality.
Viettel’s switchboard for ethnic customers wins global prize
The Military Telecom Corporation (Viettel) has won a silver Stevie Awards in the category of New Consumer Service of the Year for its ethnic minority language mobile phone services, which made debut in January 2013.
The awards ceremony to honour the winners was held in Seoul, the Republic of Korea, on May 30.
The switchboard, the first of its kind in Vietnam, provides ethnic minority users with a wide range of entertainment services such as storytelling, music programmes, and farming guidance in their mother tongues.
With over 120 telephone operators and an automatically answer calls switchboard providing inquiry services in 10 ethnic minority languages, the telecom firm has served as many as 2.5 million customers over the past year, or an average 30,000 calls each day, according to the group.
Vietnam is home to about 12 million people of ethnic minority groups, accounting for 15 percent of the nation’s population. However, only 25 percent of them or three million people are using mobile services.
Viettel has so far operated customer care switchboards in the northwestern region, the Central Highlands, northern Thai Nguyen province, and the Mekong Delta localities of Can Tho and An Giang.
Initiated in 2002, Stevie Awards is one of the world’s leading prizes to honour active contributions by individuals and businesses to the development of community-based interests, including the fields of telecom and information technology.
Vietnam-Singapore business forum to bolster trade
More than 100 representatives from governmental agencies, enterprises and organisations will attend the 2014 Vietnam-Singapore Business Forum (VSBF 2014), which is expected to promote economic cooperation between the two countries.
Hosted by the Vietnam Chamber of Commerce and Industry (VCCI) in Ho Chi Minh City from June 4-6, the event will provide a business platform for enterprises from both countries to explore cooperation opportunities, particularly in the context of a strategic partner agreement adopted by the two countries in September last year.
It will also be a good chance for attendees to be updated on trade and investment policies of the two governments, thus helping them make appropriate business strategies in the future.
During the event, participants will focus their discussion on how to foster partnership between the two sides in the fields of financial services, agriculture and aquaculture production, tourism and hospitality, real estate and environment management for sustainable business development.
Two-way trade between Vietnam and Singapore in the first two months of this year enjoyed a year-on-year increase of 20 percent, reaching 2.2 billion USD.
Singapore is currently the third largest foreign investor in Vietnam with 1,258 valid projects worth more than 30 billion USD.-
Mongolia, Vietnam friendship associations hold business seminar
The Mongolia-Vietnam Friendship Association and the Vietnam-Mongolia Friendship Association have jointly organised a seminar for the two countries’ businesses in Mongolia.
Both sides agreed that the seminar offered a good chance for businesses to exchange experience and expand connections.
They vowed to continue helping the two countries’ enterprises strengthen their cooperation in order to boost bilateral economic and trade ties and enhance mutual trust and understanding between the two peoples.
During the seminar, the two associations also issued a joint statement voicing deep concerns over the current EastSea situation after China illegally placed its Haiyang Shiyou-981 drilling rig in Vietnam’s exclusive economic zone and continental shelf in early May.
Besides, Chinese ships deployed to defend the rig have repeatedly rammed and fired water cannons into Vietnamese coast guard and fisheries surveillance ships which are carrying out their law enforcement missions in the country’s waters, leaving many Vietnamese ships damaged and officers injured.
Participants agreed that China’s unilateral acts gravely infringe Vietnam’s sovereignty, sovereign right ad jurisdiction stipulated in the 1982 United Nations Convention on the Law of the Sea, violating the 2002 Declaration on the Conduct of Parties in the EastSea.
These acts are also worrying neighbouring countries of China, they added.
During its stay in Mongolia from June 1-6, the Vietnam-Mongolia Friendship Association delegation led by its President Ho Xuan Hung has visited the Mongolian Union for Peace and Friendship and the Ho Chi Minh high school in Ulaanbaatar capital city.-
Vinacomin sets high June target
The Vietnam National Coal and Mineral Industries Group (Vinacomin) expects to sell around 10 million tonnes of its products in the April-June period and export at least 1.5 million tonnes.
To realise the goal, the corporation has taken a number of measures to promote the production of high-quality coal, satisfying customer demand and ensuring good income for workers.
In the first five months of 2014, it sold 16 million tonnes, down nearly 11 percent year-on-year, and shipped over 3.7 million tonnes abroad, only 62.6 percent of the same period last year.
Despite an array of economic difficulties in 2013, the group earned more than 97 trillion VND (over 4.6 billion USD) from selling 39 million tonnes of products, including 11.6 million tonnes for export.
HCMCity, Japanese region further industrial cooperation
The Ho Chi Minh City People’s Committee and the Economy, Trade and Industry Department of Japan’s Kansai region on June 2 signed a framework agreement on cooperation, under which they will enhance connections in support industry.
The two sides will also speed up the establishment of a business environment that can facilitate Kansai enterprises’ investment in the support industry in Ho Chi Minh City .
The city has assigned its management board of industrial and export processing zones to set up a division in charge of connecting ties with Kansai and providing consultations for its enterprises.
At a meeting with the Japanese guests earlier, Chairman of the municipal People’s Committee Le Hoang Quan said that Vietnam in general and Ho Chi Minh City in particular, commits to creating all favourable conditions for foreign investors, considering them part of the country’s economy.
Toshinori Kobayashi, head of the Kansai department, the region’s businesses, especially those operating in the support industry, are paying much attention to boosting investment in Ho Chi Minh City and its surrounding areas.
New Binh Dinh fishing port to open in 2016
The World Bank has financed a 47 billion VND (2.2 million USD) project to upgrade De Gi fishing port in the central coastal province of Binh Dinh, a local official has said.
Tran Van Vinh, Deputy Director of the management board of the provincial Coastal Resources for Sustainable Development (CRSD) project, noted the upgrade will allow the port to handle around 3,000 boat arrivals a year, mainly following fishing voyages, and improve the quality of seafood processing.
Once finished in 2016, the expanded port, covering 2.4 ha in Phu Cat district, is expected to generate jobs for up to 600 local labourers.
It will have a clean water system designed to treat wastewater, along with other facilities.
Vice Chairman of the Phu Cat People’s Committee Luong Ngoc Anh emphasised the importance of the port as it will be able to serve as a safe shelter for boats in stormy weather, while bringing in many economic benefits.
Dong Nai continues export growth trend
The southern province of Dong Nai pocketed over 1 billion USD from exports in May, with a massive 931 million USD made by foreign-invested firms, a trade official has reported.
The state and domestic private sectors contributed 98 million USD and 13 million USD respectively, according to Deputy Director of the provincial Department of Industry and Trade Nguyen Van Quan.
In the first five months of 2014, Dong Nai recorded around 4.98 billion USD in export earnings, a yearly surge of 16.1 percent, driven by high-value garments, wooden products, iron, steel, machinery and coffee.
The high performance is in part due to a series of trade promotion events that the sector has hosted in and outside the country since the start of this year.
In the face of volatile business climate around the world, with the ongoing dispute in the EastSea and slow resilience of US and Japanese economies, Quan promised all possible support for domestic exporters, making it easier for them to access preferential loans.
Throughout the rest of this year, trade fairs and exhibitions in key economic zones in Binh Duong, Da Nang, Germany, Myanmar and the Republic of Korea will involve more local stakeholders, he vowed.
Bac Lieu aquatic exports see record high
Aquatic exports of the Mekong Delta province of Bac Lieu in the first five months of 2014 leapt by 68 percent from the year before to reach 170 million USD, the highest ever for the period.
Prices of aquatic exports have increased by 2-3 USD/kg on average, benefiting both farmers and businesses.
In recent years, local exporters have reportedly paid due attention to protecting their trademarks and ensuring the quality of products, while authorities have also facilitated their access to preferential credit sources to renovate production lines.
In the coming time, managerial agencies plan to help the Bac Lieu business circle expand its partnership with foreign enterprises to drive trade.
Businesses will also receive more assistance to build their own aquatic farms in order to ensure a stable and quality input.
Currently, Bac Lieu has more than 100,000 hectares of shrimp farm and 495 fishing vessels.
Great opportunity for Vietnam to develop supporting industry
Vietnam is facing a great opportunity to develop its supporting industry. However, proposals are needed regarding the best ways to take advantage of opportunities. Certainly, efforts of the government as well as Vietnamese businesses are vital, the Communist Party of Vietnam (CPV) Online Newspaper said.
This is the theme of the 10th supporting industry forum, titled “How to develop the supporting industry in Vietnam” held on May 22 by the Japan External Trade Organisation (JETRO), the Investment & Trade Promotion Centre of Ho Chi Minh City (ITPC) and Reed Tradex company.
Hirotaka Yasuzumi, Managing Director of the JETRO office in Ho Chi Minh City, said in 2013, total direct investment capital of Japanese enterprises licensed in Vietnam was 22.4 billion USD, with 500 projects, accounting for 26 percent of total FDI. The figures show that Japan is still the largest investor. Japanese companies continue to be highly active in Vietnam.
A difficulty for Japanese companies is the shortage of supporting industries in the domestic market. A 2013 JETRO Survey showed that the proportion of domestic supply for the Japanese companies was less than 32 percent in Vietnam compared to 64 percent in China and 53 percent in Thailand. Over the past ten years, JETRO has attempted to improve the sector through trade exchanges and exhibitions for supporting industry but it has not improved significantly.
Bui Quang Hai, representative of the Ho Chi Minh City Association of Mechanical Engineering (HAME), shared that Vietnam’s manufacturing enterprises only meet 11 percent of the needs of Japanese companies in Vietnam.
In recent years, Vietnam’s export of electronic products, computers and phones has achieved high revenue and increased to double digits, but these are products from FDI enterprises. Imports account for 58 percent of Vietnam’s total export value. This equates to about 40 billion USD of manufactured technology products. Phone components alone stand at almost 20 billion USD. These imports come mainly from China.
Many enterprises admit that their operations depend on materials sourced from abroad. “Currently, we are facing opportunities with Japan to build an industrial cooperation strategy between Vietnam and Japan through 2020 with a vision to 2030. In this regard, six industries stand out, including electronics, agricultural and agricultural product processing machines, environment, energy saving, shipbuilding and automotive parts manufacture,” said Hai.
More specifically, Hirotaka Yasuzumi said that this year JETRO plans to cooperate between private enterprises and the relevant state agencies for the development of supporting industries. The organisation has promoted technological transfer to Vietnamese enterprises by encouraging development of human resources and establishing close ties with Japanese companies.
Duangdej Yuaikwarmdee, Deputy Executive Director of Reed Tradex Company, which has co-hosted the supporting industry forum over the past ten years, commented that Vietnam is now an attractive investment destination for international manufacturers in the fields of automotive, electronics and supporting industries. Japanese companies are continuing to expand their production capacity in the domestic market in the near future. Finding suitable partners for business cooperation will also help to strengthen Vietnam’s industry and achieve long term profitability.
Garment enterprises tend to be largely dependent on importing raw materials from China, which does not participate in the Trans-Pacific Partnership Agreement (TPP). These companies are searching for new import markets in order to qualify for tax advantages when exporting to the US.
Chairman of the Association of Garment-Textile-Embroidery-Knitting in HCMCity (Agtex) Pham Xuan Hong said Agtex and its members are seeking raw material sources within the country as well as countries participating in the TPP. In the coming time, Agtex will send representatives to Malaysia to discuss cooperation with Malaysia’s Association of Textile and Garment with a view to exploiting the advantages of the businesses of the two countries.
“Since enterprises investing in Vietnam’s materials sector are few we need to adopt policies to attract more investment in this sector. There is a significant need for preferential policies in capital and land-rent price for domestic enterprises to invest in textiles and dye because the investment in these fields needs a big capital injection of thousands of billions of VND. Without preferential terms, there will not be sufficient private enterprise willing to borrow money for the relevant investment,” said Pham Xuan Hong.
According to the Chairman of the Board of Directors of Saigon Garment Manufacturing Trading Joint Stock Company (Garmex) Le Quang Hung, the domestic textile sector has not kept up with the growth of the garment sector in recent times. Domestic garment enterprises like Garmex have been searching for locally sourced raw materials to reduce costs, but many kinds of fabrics are not produced in-country. Meanwhile, most businesses in the sector are not sufficiently resourced in terms of capital and technology to produce raw materials for the garment sector, especially the textile and dye sectors. Moreover, many localities don’t want to grant license to build dye factories due to environmental impact.
“When negotiating TPP, we must sacrifice benefits of some sectors to receive the export tax exemption for the garment and textile sector. If we do not take advantage of the opportunity, it is insignificant to perform TPP, especially with regard to regulations on the origin of raw materials. Consequently, it is necessary to have policies to develop the sector providing the garment and textile materials clearly published from the Government,” Hung said.
VN's import, export policies remain unchanged
Most businesses which suffered damages in southern industrial zones have so far resumed their productions, according to the Vietnam Economic News on June 2.
The Ministry of Industry and Trade (MOIT) has provided timely guidance to stabilise investment and import, export activities, making foreign businesses feel secure about their operations in Vietnam.
The Formosa Group’s steel projects are in the process of overcoming the damage and gradually resuming operations while bauxite projects in Dak Nong and Lam Dong provinces are operating normally, the online newspaper said.
The Viet Trung Minerals and Metallurgy Company Limited produced its first batch of 50 tonnes of cast iron on May 26, 2014. The company said that experts were examining the quality of cast iron so that it could be refined to produce the first batch of steel billets. Chinese and Vietnamese experts and workers are working together in this project.
Foreign invested projects in the field of energy, including projects with the participation of Chinese contractors, are going on normally.
China is Vietnam’s one of the largest import and export markets. Therefore, many people expressed their concerns that developments in the EastSea would create pressures on the Vietnamese economy.
So far, however, according to the Agency of Foreign Trade under the MOIT, the volume of imports, exports in the southern region has remained equal to that in the time prior to China’s illegal installation of its Haiyang Shiyou-981 oil rig in Vietnam's exclusive economic zone and continental shelf in the East Sea. In the central region and CatLaiPort area, there has been a slight slowdown in import, export activities because businesses are overcoming damages to resume production.
The Agency of Foreign Trade has provided guidance for the export-import management divisions of Dong Nai and Binh Duong province to provide assistance for businesses which suffered damage. In Ho Chi Minh City, there has been false information that Vietnam does not allow domestic businesses to trade with Chinese partners, so some businesses did not dare open letters of credit (L/Cs). The Agency of Foreign Trade has released a notice affirming that Vietnam’s import, export management policies and mechanisms remain unchanged.
At border-crossings in Lao Cai, Lang Son and Quang Ninh provinces, there has been a slight slowdown in the circulation of goods due to concerns among some merchants and shop owners. However, import, export activities have been stabilised since they found no changes in Vietnam’s policies.-
Dong Nai aims for green development
The southern province of Dong Nai has approved an overall economic restructuring project in harmony with boosting green growth and raising its competitive edge by 2020.
Under the plan, as many as 95-100 percent of local enterprises and manufacturers will apply advanced waste treatment technologies. All waste generated from residential areas, hospitals and industrial parks must be treated.
To reach the goals, the province plans to prioritise environmentally friendly investment projects, said Le Viet Hung, Director of the provincial Department of Natural Resources and Environment.
Since 2012, the province has installed automated waste water observing stations in its industrial parks. This helps prohibit pollutants released by enterprises.
More than 77 billion VND (3.63 million USD) has been poured from the provincial budget into building 13 stations, while four others were invested by local businesses, Hung added.
As many as 25 out of the province’s 28 IPs are effectively running large-scale waste treatment systems, while in July, the Ong Keo and Thanh Phu IPs expect to put into operation their own waste treatment systems. The province aims for all of its IPs to have such systems.
Dong Nai has also been keen on tackling small-sized enterprises whose production causes serious harm to the local environment.
In addition to the existing seven waste treatment areas, the province is set to invest in building two more ones in the near future, aiming to treat all waste generated in the locality.
The province is focusing on tackling and wiping out 25 temporary dumping grounds by the end of this year, and building a system designed to track the generation of solid waste and stone exploitation.
It is expected that a global positioning system (GPS) programme will be put into operation to check the route of waste transporting vehicles, the official revealed.
He stressed Dong Nai will publicise strict measures to handle pollution and any information related to fines imposed on firms whose production activities harm the local environment.
Boosting sustainable development in central coastal region
A forum on sustainable development in the central coastal region was held in Hoi An ancient town, the central province of Quang Nam on June 3.
Deputy Prime Minister Nguyen Xuan Phuc, the World Bank (WB) Country Director for Vietnam, Victoria Kwakwa, and the Asia Development Bank (ADB)’s Country Director for Vietnam, Tomoyuki Kimura and representatives from relevant ministries and agencies attended the event.
Discussions at the forum focused on boosting regional sustainable development, strengthening connectivity of transport infrastructure for socio-economic development in the new context and developing water resources in association with mitigating natural disasters in the central coastal area.
The event also gave delegates a chance to share experiences in mobilizing human resources, managing risks of natural calamities and water resources sustainably to promote economic development and contribute to poverty reduction..
According to the overall goal, the central coastal region will be developed into a important hub with dynamic, and sustainable development to enhance international cooperation, maintain  political stability and social order, develop the marine economy  along with ensuring national defence, security and sovereignty over sea and islands.  
Three solutions to reduce imports from China
Vietnam needs to reduce its dependency on China by boost domestic production and exports, and increasing consumption of Made-in-Vietnam products and increasing exports.
Deputy Minister of Industry and Trade Do Thang Hai made the remark at his ministry’s at a recent press briefing. At present, Vietnam’s major exports to China include processed farm produce, seafood, cashew nuts and rubber while its major imports from China are materials relating to garments and textiles, leather shoes and aquaculture feeds.
Hai said that two most direct ways to reduce the trade deficit with China are to increase exports and reduce imports.
According to the Ministry of Industry and Trade, in the first four months of the year, Vietnam’s export turnover to China increased by 28.4%. This is an impressive figure and the best way to reduce the trade deficit, Hai added.
He also underlined the needto strengthen domestic production and encouraged Vietnamese people to use Vietnamese goods. If a population of 90 million priotize using Vietnamese goods, it will help generate a huge turnover to thus reducing imports from China.
Garment exports hit US$7.44 billion
Garment and textile exports increased 17% to US$7.44 billion in the first five months of this year, according to the Ministry of Industry and Trade (MoIT).
MoIT Deputy Minister Do Thang Hai reported that from January to May 2014, domestic garment production experienced a decline due to disturbances in industrial zones in a number of provinces and cities.
He suggested local firms seize opportunities offered by the Trans-Pacific Partnership (TPP) agreement to take a proactive role in ensuring adequate supply of input materials and reducing import value.
In the wake of tensions in the EastSea, the Vietnam Textile and Apparel Association (VITAS) has asked businesses to seek other potential markets to avoid reliance on imported input from China.
Garment producers should keep a close watch on such promising market as Thailand, Indonesia, India, Malaysia, and the Republic of Korea, said VITAS.
Reducing China's economic dependence by FTAs
Free Trade Agreements (FTAs) not only open up opportunities for Vietnam to stimulate the national economy but also reduce and gradually remove dependence on the Chinese market, towards ensuring a sustainable economic development.
Chamber of Commerce and Industry of Vietnam (VCCI) Chairman Vu Tien Loc told a recent discussion on socio-economic development in Hanoi at the current session of the 13th National Assembly (NA).
Many NA deputies stated that the illegal placement by China of its oil rig in Vietnam’s exclusive economic zone is a serious violation of Vietnam’s sovereignty. If the wrongdoing is not prevented, it would considerably affect trade relations between Vietnam and China.
VCCI Chairman Loc said that Vietnam is standing on the threshold of FTAs with the world’s largest partners. Trans-Pacific Partnership Agreement (TPP) negotiations between Vietnam and its partners are entering final periods while Vietnam-EU Free Trade Agreement (VEFTA) negotiations are expected to conclude later this year.
"Preparation for the country to seize opportunities and overcome challenges from FTAs at this time is more urgent than ever "Loc noted.
According to Loc, Vietnam is facing new demands for maintaining stable trade relations with China and intensifying measures to ease its reliance on the Chinese market. Taking advantage of opportunities from FTAs is an effective way to achieve this goal.
More than half of Vietnam’s garment and textile materials are imported from the Chinese market and up to 90% of Engineering, Procurement and Construction (EPC) contracts from thermal power projects are carried out by Chinese contractors. The main reason is due to the abundant and relatively cheap supply of credits, raw materials and goods from China.
With its commitment to remove and at least reduce tariffs and technical barriers to the lowest levels in FTAs with the world’s leading partners in the future, Vietnam will have a good chance to import machinery, equipment, input materials, consumer  goods from the US, the EU, Japan, the Republic of Korea (RoK), Australia, New Zealand and Russia
"Vietnam can take advantage of these opportunities to attract investment in developing support industry, so as to reduce imported inputs in key business areas of the Vietnamese economy" Loc noted.
In terms of economic output, according to official figures cited by Loc at the NA session, China accounts for about 10% of Vietnamese exports.  Despite not being the biggest export market, China is Vietnam’s biggest fruit and vegetable export market and consumes a large volume of rice and other agricultural products from Vietnam. Therefore, this market greatly affects income and a significant section of Vietnamese farmers and agricultural producers.
So, to invest enough in the output chain for goods, especially agricultural products in the demanding global markets, Loc stressed the need to find a way out for the national economy to avoid the current dependence.
“But the fact is that we are trading in a global trade and economy, where every business, every economy are bound and closely linked to each other. This is true for both Vietnam and China.” Loc said.
While many people are concerned about China’s retaliation against Vietnam amid escalating EastSea tensions by closing its border, stopping import and export activities with Vietnam, many others said that for the time being, it is not easy for China to stop trade activities at least on a large scale.
Trade activities with Vietnam are the main source of income for some of China’s poor provinces. Vietnam is also the largest market in Southeast Asia for Chinese contractors. Chinese investors are enjoying big or small benefits from direct or indirect investment projects in Vietnam. All this makes people think twice before considering what measures should be taken.
For Vietnam, though it wants to expand supply or diversify market outputs, the country can’t ignore the richest material resources and can’t help buying products at reasonable prices from China and selling products to the world's most populous market, Loc added.
Milk prices lowered in anticipation of price ceiling
Many shops and agencies have slashed retail milk product prices by 10% to 21% in anticipation of new regulations taking effect from June 1.
According to the Ministry of Finance’s regulation, the decrease in the wholesale milk prices will be applied from June 1, while the retail price cut will be no later than June 20.
Some anonymous retailers on Hang Buom Street, in Hanoi, admitted they are trying to take advantage of the price disparity between now and June 20.
Nguyen Trong Nghia, Director of the Ministry of Finance’s Department of Legal Affairs, said in the case milk product companies, they are currently complaining of potential losses from the new regulation, and the ministry will reconsider and properly adjust if the situation if this turns out to be true.
The owner of a milk shop in Hanoi said the new price ceiling was expected to attract more customers, which would bring more commissions.
There are 25 milk products which will be affected by the new regulations. In order to prevent loopholes or deceptive pricing methods by retailer or wholesalers, the ministry has requested that companies register their prices.
Five days after the submission of new regulations, the ministry will announce the new price ceiling.
New gold jewelry management ruling effective
Although many gold traders had suggested extending the effective date of a new circular on jewelry quality management, the Ministry of Science and Technology still insisted on applying the circular since early this month to protect the interests of consumers.
Circular 22/2013/TT-BKHCN, which was issued by the ministry last September and took effect on Sunday, regulates management and measurement policies for the gold trading business. Under the circular, the standards of quality and measurement of the gold jewelry items traded on the local market must be written in a code with the correct gold content.
The circular is aimed to help reduce substandard gold products on the market and serve as a more effective legal tool for managing agencies to tackle violations.
However, local traders claimed that they had been on tenterhooks as the time from the circular’s date of issuance to the date of coming into force was too short for them to make necessary preparations and manage their inventory.
Nguyen Hoang Linh, head of the ministry’s Directorate for Standards, Metrology and Quality, said Circular 22 did not mention the concept of ‘inventory’ and that all jewelry items available on the market must meet quality requirements set by the circular since early this month.
In the past nine months, gold traders should have finished preparations to meet requirements of the circular and solved all substandard jewelry items. Consumers had the right to choose the items with various gold content and prices and to buy those with the correct gold content announced by producers, Linh said.
In fact, most jewelry products on the market have been made without codes indicating clear gold contents. As a result, many people pay for the gold jewelry items they believe to have sufficient gold content but when they sell the products, they receive far less money than they expect because gold content is much lower.
For instance, most 18-carat jewelry whose at least 75% of the content should be pure gold but the real content is only 66% gold on the domestic market.
Therefore, Nguyen Van Dung, chairman of the Saigon Jewelry Association, said the circular was a legal foundation to restore order on the gold jewelry and fine arts market and to protect the interests of customers.
Dong Tam reports profits after years of losses
Dong Tam Group has announced its 2013 after-tax profit of VND125.7 billion after two consecutive years of losses.
At an annual shareholders meeting last week, shareholders of Dong Tam Group passed this year’s targets for VND1.8 trillion in revenue, VND135 billion in after-tax profit and a dividend of 5%.
Last year, Dong Tam Group obtained good business results with net revenue of over VND1.58 trillion, up 87.7% against 2012. It racked up losses of around VND35 billion in 2012 and VND191 billion in 2011.
However, experts attributed losses of Dong Tam Group to the huge loans it took for property projects, including industrial parks, seaports and residential areas in those years when the country’s real estate market was stagnant.
Experts said that the demand for building materials had improved much this year.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR

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Flappy Bird creator starts chasing down clones 

 
Nguyen Ha Dong, the author of the game Flappy Bird, at a coffee shop in Hanoi on Feb. 5, 2014. The Vietnamese developer behind the smash-hit free game Flappy Bird has pulled his creation from online stores after announcing that its runaway success had rui

Flappy Bird is perhaps the most copied game of the year, and the Vietnamese creator behind the defunct mobile app is finally going after the clones.
Apple has been contacting developers of Flappy Bird lookalikes on behalf of .Gears Studio, which made the original game, saying they may be infringing on the creator’s copyright. One such e-mail sent today that was obtained by Bloomberg was received by the developer of a similar-looking game called Duck Run.
"This game violated our copyrights for the character of our famous game Flappy Bird,” .Gears wrote in the complaint. Dong Nguyen and his Hanoi, Vietnam-based company didn’t respond to multiple requests for comment.
Todd Moore, who developed Duck Run, defended his game, saying it doesn’t infringe on .Gears’s intellectual property. Duck Run has been among the top 500 most-downloaded apps in 20 countries since it came out in February, according to research firm App Annie. Moore is also the creator of White Noise, a popular app to help users sleep.
“It’s a duck,” Moore says. “I’m not taking it down. In no way does my game infringe on anything that was in Flappy Bird when it was available.”
Nguyen, the 20-something creator of Flappy Bird, told Rolling Stone last month that he planned to take steps against clones, without elaborating. Before Nguyen removed Flappy Bird in February, millions of people were tapping their phones to guide a pixelated bird through green pipes, making it the most popular app in 137 countries, according to App Annie.
An employee plays the mobile game Flappy Bird at a smartphone store in Hanoi. Photo credit: AFP.
After Nguyen removed Flappy Bird, dozens of copycats proliferated in an attempt to ride the hit game’s coattails. Flappy Bird’s simplicity and addictivness turned it into a global sensation, not unlike Candy Crush Saga or another avian diversion, Angry Birds. However, once gamers couldn’t have at it anymore and started looking for their next fix, the formula proved extremely easy to copy.
On Monday, within hours after Apple revealed an entirely new programming language it had created for iPhone apps called Swift, a developer used it to write a Flappy Bird clone. Nate Murray, the programmer behind the FlappySwift project, says Flappy Bird is a great model for developers learning a new language because it’s easy to copy.
"Flappy Bird has a mystical addictiveness, and from a technical perspective, it's surprisingly simple,” Murray says.
Bloomberg

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Political News Headlines 5/6

Vice President Doan meets senior French officials on ties
Vice President Nguyen Thi Doan, in Paris for the 24th Global Summit of Women (GSW), met with President of the French Senate Jean-Pierre Bel and Foreign Minister Laurent Fabius in Paris on June 4.
 GSW, Law of the Sea, foreign businesses
Vice President Nguyen Thi Doan receives President of French Senate Jean-Pierre Bel (Photo: VNA)
During the meetings, the two sides shared the wish for closer cooperation between the two countries in the fields of energy, trade, science-technology, national defence-security, education, health care, tourism and climate change.
On the occasion, Vice President Doan informed the French side on the ongoing tension in the East Sea and affirmed that Vietnam will pursue the consistent policy of settling disputes via peaceful dialogue in line with international law, including the 1982 United Nations Convention on the Law of the Sea, the Declaration on the Conduct of Parties in the East Sea between ASEAN and China, rather than using force or threatening to use force.
She also thanked the French government, the France – Vietnam Friendship Parliamentarians’ Group and many French organisations for supporting Vietnam’s stance on this issue.
The French Senate President and many senators expressed concerned about the escalating tensions on the East Sea and voiced their hope that parties concerned will soon reach a peaceful solution via talks. They pledged that the French Senate will continue to raise a strong voice in this regard.
Foreign Minister Laurent Fabius agreed with Doan’s proposal to intensify joint efforts to implement the University of Science and Technology project in Hanoi.
He also invited the Vietnamese side to attend the 21st Conference of the Parties on Climate Change that France will host by late 2015.
The FM stressed that the two countries should increase talks on issues of mutual concern, adding that France is keeping close watch of the EastSea tension. France is concerned about the situation, he said, adding that the country will make efforts to together with Vietnam push for a peaceful solution for the EastSea issue in conformity to international law.
Vice President Doan is scheduled to attend and deliver a speech at the summit opening and a follow-up press conference on June 5.
The summit brings together delegates representing the three critical ‘legs’ of change – government, business and civil society – to assist in promoting greater economic opportunities for women.
NA deputies continue discussing revised laws
On June 4, National Assembly (NA) deputies discussed a number of draft revisions to the Law on Civil Aviation.
They focused on the role and missions of aviation authorities, aviation inspection and the management of flying activities.
During the day, they also heard government’s proposals and NA bodies’ verification reports on the bills on Citizen Identification and Civil Status, as well as draft amendments to the Laws on Investment, Vietnamese Nationality, Vietnam People’s Army Officers and People’s Public Security.
On June 5, the deputies will continue their plenary session.
Vietnam, Kenya promotes diplomatic ties
Vietnamese ambassador to Tanzania Vo Thanh Nam has presented his credentials to the Republic of Kenya’s President UhuruKenyetta.
The Vietnamese diplomat pledged his utmost efforts to contribute to consolidating and developing friendship and bilateral cooperation in fields such as economics, telecommunications and trade.
Ambassador Nam also conveyed regards and an invitation to visit Vietnam from President Truong Tan Sang’s and Vietnamese leaders to President Kenyetta.
President Uhuru Kenyetta accepted the invitation, saying that the visit will be arranged via the diplomatic channel.
Earlier, Nam also paid a courtesy visit to Amina Mohamed, Cabinet Secretary for Foreign Affairs and International Trade of Kenya and met some other Kenyan diplomats.
During these meetings, the ambassador expressed the Vietnamese Government and people’s desire to enhance traditional friendship and all-around cooperation with Kenya.
He said he hopes both nations will support each other at multilateral forums and create favourable conditions for businesses to promote trade and investment.
Vietnam attends Asia-Pacific Roundtable in Malaysia
Vietnamese representatives have joined nearly 400 delegates from 30 countries at the 28th Asia-Pacific Roundtable (APR) in Malaysia from June 2-4.
At the forum law-makers, scholars and diplomats participated in candid dialogue regarding the major challenges facing the region including security, defence, peace-keeping and economic development.
The agenda included disparate topics ranging from building peace and prosperity in the Asia-Pacific region to dealing with security challenges in the EastSea. They also examined issues related to economic and political reform in Myanmar, and the post election political landscape in Indonesia.
Many participating countries, particularly the US, Japan and India, strongly condemned China’s provocation in the EastSea, according to Tran Viet Thai, Vice Director of the Institute for Foreign Policy and Strategic Studies under the Diplomatic Academy of Vietnam.
Many delegates supported Vietnam’s stance towards settling the dispute peacefully, including asking China to withdraw its Haiyang Shiyou-981 drilling oil rig from Vietnam’s waters and sit at the negotiating table.
Congratulations sent to new Palestinian PM
Prime Minister Nguyen Tan Dung extended his congratulations to the newly-appointed Prime Minister of the Palestinian national unity government Rami Hamdallah yesterday.
The same day, Deputy Prime Minister and Foreign Minister Pham Binh Minh also sent a congratulatory message to the new premier.
Rami Hamdallah's appointment was announced by Palestinian President Mahmud Abbas on Monday.
Tensions in the EastSea affect Asian trade
The Secretary General of the World Customs Organisation, Kunio Mikuriya, told local media on Tuesday that the EastSea tension caused by the placement of a Chinese loil rig in Viet Nam's waters had affected cargo transportation through this area.
Speaking at the 23rd meeting of the ASEAN Directors General of Customs, Mikuriya said he hoped the incident would be settled peacefully so as to ensure navigational safety and promote free trade through the EastSea– one of the core shipping lines in the world.
The meeting, which was held in Da Lat City in the Central Highlands province of Lam Dong, drew nearly 70 officials from the 10 ASEAN countries, plus Japan, the South Korea, China, the World Customs Organisation (WCO) and some international institutions.
General Director of Viet Nam Customs, Nguyen Ngoc Tuc, voiced concern over China's placement of the oil rig and said it was guarded by many military ships and aircraft.
He said China's move violated the United Nations Convention on the Law of the Sea (1982), and directly jeopardised peace, stability, security and safety of navigation in the EastSea and free trade in Southeast Asia.
Tuc called on his counterparts to help solve the issue peacefully in accordance with international law.
The meeting reviewed ASEAN customs development plans from 2011 to 2015, and devised action plans and working programmes for the bloc's customs agencies in the 2016-20 period.
ASEAN has recorded some notable achievements on its way to building an ASEAN Economic Community in 2015.
It has built an ASEAN customs agreement, developed a legal framework for an ASEAN customs transit system, and established a one-door customs mechanism.
ASEAN Secretary General Le Luong Minh said that the meeting was an important step towards the ASEAN Community next year.
Viet Nam hosted similar meetings in 1995 and 2004.
PM Dung applauds efforts of reformed shipbuilding firm
Prime Minister Nguyen Tan Dung has spoken highly of the efforts being made by the Shipbuilding Industry Corporation (SBIC) to build fisheries surveillance vessels, making a practical contribution to safeguarding the nation's sea and island sovereignty.
 GSW, Law of the Sea, foreign businesses
Prime Minister Nguyen Tan Dung inspects a fisheries surveillance ship yesterday built by the Ha Long Shipbuilding Company during his visit to QuangNinhProvince
At a working session with SBIC executives in the northern coastal province of Quang Ninh yesterday, June 4, PM Dung said that Viet Nam was a coastal country with a sea area of more than a million square kilometres.
Its sea-based economic activities, which include aquaculture, fishing, oil and gas exploitation, and shipping, had benefited national construction and development, he added.
The leader noted that in the past years, the shipbuilding industry had taken great strides as Vietnamese engineers and workers created a large number of modern vessels.
Restructured from the Viet Nam Shipbuilding Industry Group (Vinashin), the SBIC now has eight affiliates which account for 70 per cent of the country's shipbuilding capacity.
PM Dung instructed the corporation to continue the construction of fisheries surveillance ships as scheduled, and stand ready to maintain and build more vessels for law enforcement forces.
He said Viet Nam was piloting a project to build steel fishing vessels for fishermen. He asked the SBIC to work closely with authorised agencies and fishermen to construct more steel vessels to fuel the fishing industry.
The same day, the leader inspected a fisheries surveillance ship built by SBIC's Ha Long Shipbuilding Company.
The vessel will conduct offshore patrols to support Vietnamese fishermen and uphold the law in the country's waters.
Also yesterday, PM Dung has asked the northeastern province of Quang Ninh to develop its industrial and service sectors.
At a working session with the province's key leaders in Ha Long city yesterday, the Government leader said the province should take measures to ensure the successful implementation of tasks set for 2014, creating a foundation for the province's development.
He said the province needed to focus on removing difficulties for businesses and provide concrete support policies for industrial production, tourism and services.
In addition to State funding, the province should actively mobilise other resources for urban and transport infrastructure development and new-style rural area building to provide momentum for its rapid and sustainable development.
In the face of complex developments in the EastSea, Dung emphasised the resolve to safeguard the country's sacred sovereignty by peaceful means in line with international law, including through the channels of diplomacy and public opinion.
He said Quang Ninh, which shares a border with China, must pay special attention to maintaining political security, social order and safety, and consolidate defence and security.
The PM added that at the same time, the province should continue economic co-operation activities with China for the common interests of both sides.
According to a provincial report, Quang Ninh has made high economic growth in recent years despite difficulties, reaching 7.5 per cent in 2013.
Its business and investment environment has greatly improved while progress has also been made in building new-style rural areas, ensuring social welfare, reducing poverty and raising living standards.
NA deputies discuss full and part-time roles
National Assembly (NA) deputies yesterday (June 4) discussed a draft law on the organisation of full and part-time deputies at the National Assembly.
 GSW, Law of the Sea, foreign businesses
Deputy Nguyen Dinh Quyen, also from Ha Noi, said the draft law should clearly reflect the position and role of the National Assembly, which, he said, was the highest representative body of the people, the highest organ of State power - and a legislative body. 
The focus of the discussion at the seventh session was about the number of full-time NA deputies, an outline of their work and their rights and responsibilities at central and local levels.
Most deputies agreed to increasing the number of full-time NA deputies from 25 per cent to 35 per cent of the assembly.
Deputy Pham Huy Hung from Ha Noi proposed that the number of full-time deputies should be increased term by term.
He added that the percentages of deputies from central and local levels should be clearly set.
He also proposed that the draft law stipulate the working time and the responsibilities and rights of part-time NA deputies before, during and after meeting sessions.
Deputy Nguyen Dinh Quyen, also from Ha Noi, said the draft law should clearly reflect the position and role of the National Assembly, which, he said, was the highest representative body of the people, the highest organ of State power - and a legislative body.
He said the draft law needed to clearly indicate the role and position of NA deputies and help raise the effectiveness of their activities.
Quyen also proposed that the age range for NA deputies should be clearly stipulated.
Deputy Huynh Van Tiep from the southern city of Can Tho said the responsibilities of the NA deputies in supervising the legal compliance of local People's Committees and People's Councils should also be clearly defined.
Hanoi leader asks citizens to show patriotism by simple good things
People in the capital city of Hanoi should show their love towards the country through simple good deeds, such as joining production movements and abiding by the laws of the land.
The statement was made by Hanoi Party Committee Secretary Pham Quang Nghi during a working trip to industrial zones in the city on June 4.
Speaking at the Thach That - Quoc Oai Industrial Zone, Nghi mentioned recent regrettable disturbances which occurred in some localities during public opposition to China’s illegal placement of the oil rig Haiyang Shiyou-981 in Vietnam’s exclusive economic zone. These incidents caused damage to businesses’ assets.
While stressing that it is a legitimate right of Vietnamese people to oppose China’s wrong doings and struggle for protecting their national sovereignty and territorial integrity, he said that they should not follow the words of instigators to create social disorder that damages the image of the country.
Talking to foreign business owners and workers, he shared that Vietnam is taking a series of measures to maintain peace and stability. As neighbours, Vietnam and China should sincerely foster their friendship.
Hanoi is also trying its best to build its image and investment environment to attract more foreign investors while implementing policies to ensure fair interests for all foreign businesses, he said.
According to Nguyen Xuan Chinh, head of the city’s management board of industrial zones (IZs) and export processing zones (EPZ), Hanoi’s eight industrial zones is now home to 550 projects worth 5.3 billion USD. They include 300 foreign invested projects, with a total registered investment of 4.7 billion USD.
Businesses operating in Hanoi’s IZs and EPZs are expected to post a combined revenue of 5.5 billion USD, up 11 percent against last year and accounting for 20 percent of the city’s GDP.
Congratulations sent to new Palestinian PM
Prime Minister Nguyen Tan Dung extended his congratulations to the newly-appointed Prime Minister of the Palestinian national unity government Rami Hamdallah on June 3.
The same day, Deputy Prime Minister and Foreign Minister Pham Binh Minh also sent a congratulatory message to the new premier.
Rami Hamdallah's appointment was announced by Palestinian President Mahmud Abbas on Monday.
Strong VN-US ties to promote peace, stability
National Assembly Chairman Nguyen Sinh Hung said on June 4 that Viet Nam treasures its ties with the United States and is determined to implement bilateral agreements in the spirit of comprehensive partnership.
This would be in the best interests of the people of both nations and would promote peace and prosperity in the region as well as the world, he told a delegation from the US House of Representatives headed by Congressman John Kline.
During the meeting, Hung referred to ongoing East Sea tensions, reiterating that China's illegal placement of the Haiyang Shiyou-981 oil rig in Viet Nam's exclusive economic zone and continental shelf was a seriously violation of Viet Nam's sovereignty and sovereign rights.
China's action was also in breach of international law, including the 1982 United Nations Convention on the Law of the Sea, and the Declaration on the Conduct of Parties in the EastSea, he said.
Furthermore, China's actions threatened stability in the EastSea as well as maritime and aviation activities in and over international waters, and was worrying countries in the region, the NA leader added.
The NA leader affirmed that the viewpoint of all Vietnamese people is to resolutely safeguard national sovereignty and territory on the basis of international law, while demanding China withdraw its rig from Viet Nam's waters.
He thanked the international community, including many US parliamentarians, for backing Viet Nam's stance on this issue.
Kline said that his delegation's visit aims to seek and expand co-operation opportunities between the two countries' parliaments and people.
The US wished to further strengthen bilateral trade ties and will actively speed up negotiations for the Trans-Pacific Partnership agreement, the US congressman said.
The US delegation expressed deep concern over China's provocative acts in the EastSea, wishing that the parties involved would settle the situation through peaceful means on the basis of respect for international law.
Dak Nong enjoys sound partnership with Cambodian province
The Central Highlands province of Dak Nong and the Cambodian province of Mondulkiri have enjoyed a growing relationship since they signed a comprehensive partnership agreement in 2010.
According to Le Duc Cuong from the Dak Nong Department of External Relations, the agreement, aiming to boost socio-economic agreement between the two localities in the 2010-2015 period, has seen a number of fruitful outcomes.
Thanks to the close coordination between local governments of both sides, the localities have finished border demarcation work as scheduled, with eight landmarks planted, he said.
Dak Nong has also handed over a 24 billion VND (1.128 million USD) vocational school as well as a public security headquarters building to Mondulkiri, said Cuong.
Meanwhile, trade exchange activities between the two provinces have been on the rise, mostly with consumer goods, construction materials, fertilizer and agricultural products, he noted.
At the same time, the two sides have also seen strong partnership in security and defence, particularly in preventing and combating violations of border regulations, drug trafficking and cross-border crimes, Cuong added.
Source: VNN/VOV/VNS/VNA

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Social News Headlines 5/6

SBIC urged to build ironclad fishing vessels in response to fishermen’s needs
Prime Minister Nguyen Tan Dung asked the Shipbuilding Industry Corporation (SBIC) to work with relevant agencies and fishermen to build fishing vessels with iron hulls in order to enhance the development of the fishing industry.
PM Dung made the request at a meeting with the corporation’s leaders in the northern coastal province of Quang Ninh on June 4.
He stressed the necessity of providing fishermen with bigger, safer and more modern vessels while ensuring effectiveness and sustainability.
PM Dung also praised the quality of fisheries surveillance ships built by the corporation and required it to continue building and handing over other ships on schedule. He also requested that the SBIC work with the fisheries surveillance force to improve ship designs to meet new requirements and fulfill any assigned tasks of ship maintenance, reparation and construction to serve the fisheries surveillance and maritime police forces.
The Government leader urged the SBIC to push restructuring—especially in finance, production and job creation, as well as in affiliated enterprises, while enhancing business management capacity and ensuring production and trade efficiency.
PM Dung reiterated that Vietnam is a coastal nation with a large maritime area of over one million square kilometers, which is the nation’s living and developing space. Maritime economics has brought the interests to people and served effectively for national construction and development.
The Party and State have set a sound policy on growing the shipbuilding industry in a strategy on developing maritime economics to meet requirements of fishing, transportation, maritime security and national defence, PM Dung added.
PM Dung also visited KN781 fisheries surveillance ship, one of Vietnam’s largest coast guard ships.
Some contagious diseases likely to enter Vietnam

 contagious diseases, East Sea, overseas Vietnamese, fishermen, ships

A number of life-threatening highly communicable diseases, including the Middle East respiratory syndrome coronavirus (MERS-CoV), are likely to infiltrate into Vietnam, a leading health official warned.
At a June 4 workshop on epidemic prevention in HaiphongCity, Director of the Preventive Medicine Department (PMD) Tran Dac Phu reported that measles is essentially under control as the number of fatalities and new infections continues to decline.
However, he said there remains a considerable threat of epidemics breaking out for a number of highly contagious diseases.
The heat and humidity of the summer months create ideal conditions for many communicable diseases to gestate, such as hand-foot-mouth disease (HFM) and dengue fever. In addition, factors such as the increased travel in and out of country and bad environmental sanitation increase the likelihood of epidemics.
Health Ministry statistics show since early this year, the country has recorded 9,746 cases of dengue fever in 42 provinces and cities, including 7 fatalities in Ho Chi Minh City, Binh Duong, Ca Mau, Binh Phuoc and Phu Yen.
Around 24,730 cases of HFM disease have been detected in 62 provinces and cities, including two deaths in Long An and Ba Ria-Vung Tau provinces. Currently, the disease has primarily occurred in southern provinces, accounting for 78.5% of total infected cases nationwide.
Meanwhile, 5,031 people have been infected with measles in 63 provinces and cities. The disease seems to have declined over recent weeks.
The PMD stated that Vietnam has not recorded any case of MERS-CoV, or avian flu types A/H7N9 and A/H5N6. However, two people died of the deadly avian flu strain A/H5N1 in Binh Phuoc and Dong Thap provinces.
It warned that vaccination is the most effective way to prevent the disease. In summer, the healthcare sector continues to promptly monitor, detect and deal with outbreaks, as well as disseminating preventive measures to the public.
The workshop updated participants on the latest information about preventive measures against dengue fever, measles, HFM, flu, varicella, rabies and MERS-CoV.  
Part of motorbike fee revenues to go to rural roads
The Government has issued a new decree allowing communal authorities to use part of road maintenance fee revenues from motorcycle owners to build rural roads from August.
Decree 56/2014/ND-CP, which was issued last month with effect on August 20, says part of revenues from the fee will go to the budgets of communes for upgrading and constructing roads in rural areas.
The People’s Council of a locality will decide part or all the local allocation for communes to invest in rural roads. However, the decree clarifies the budget allocation ratio must be balanced between the needs for new roads in line with the national new rural development program and road maintenance depending on their spending and revenues to ensure the efficient use of the fee allocations.
At a seminar late last year, transport enterprises in HCMC voiced strong objections to allocating part of the road maintenance fund to communes to develop rural roads as part of the new rural development program. This seminar was held to gather comments on the draft amendments to a revised decree on fee collections for road maintenance.
Representatives of the firms cited Article 7 of Decree 18/2012/ND-CP as saying that the national road maintenance fund is used for maintenance and management of national highways while the fee allocation for localities is for maintenance and management of local roads.
They argued that it was the State budget which should cover investments in rural roads of the national new rural development program.
Despite suggestions and outcries of enterprises, Decree 56/2014/ND-CP still regulates that the owners of trailers and semi-trailers should pay road maintenance fees.
The owners of cars and trucks have had to pay road maintenance fees since January 1, 2013 while many provinces and cities have yet to collect the fee on motorcycles as they have not passed specific fee levels.
More vessels to be built for Fisheries Surveillance Force
The Prime Minister has decided to invest US$200 million in building four more large-scale vessels for the Fisheries Surveillance Force to allow them to better carry out their law enforcement missions in the country’s waters and supporting Vietnamese fishermen.
Prime Minister Nguyen Tan Dung made the investment decision at a June 4 working session with key officials of ministries, agencies and the Shipbuilding Industry Corporation (SBIC), following an inspection of a new large-sized ship built by Ha Long Shipyard for the force.
The ship, named KN-781, has a displacement of more than 2,000 tonnes, and is one of the largest patrol ships in the country. It will be handed over to the Fisheries Surveillance Force this month.
The Ha Long Shipyard is also putting final touch on another similar vessel for the force, which will be transferred in July.
The PM also agreed to the building of an additional 15 medium-scale ships, bringing the expected number of fisheries surveillance vessels to more than 50 in total, thus allowing the force to better perform its law enforcement and and rescue missions at sea.
HCMCity to bury over 1,000km of wires underground
The Ho Chi Minh City Power Corporation plans to bury more than 1,000km of electric lines and cables underground in 2014 and 2015, heard a conference reviewing the work in the southern hub on June 4.
From now to 2015, the firm will complete 36 ongoing projects installing 329km of power lines underground.
It plans to start 42 projects burying 394km of wires in 2014 while another 38 projects will begin in 2015 for 342km of power lines.
By the end of 2015, the city is expected to finish the rearrangement of 445km of middle voltage and 691km of low voltage lines along with 11.7km of 110kV cables.
The corporation attributed the great volume of work for 2014-2015 to the slow progress made from 2011 to 2013.
Vice Chairman of the municipal People’s Committee Le Manh Ha said that burying electricity wires and telecommunication cables underground has given a facelift to the city.
However, to ensure the work’s further progress, the corporation and managerial agencies, such as the municipal departments of transport, information and communications and industry and trade, need to devise measures to tackle existing problems, he added.
Presently, the city has buried 28 percent of middle voltage and 10.6 percent of low voltage lines. The respective figures are expected to reach 30 percent and 20 percent in 2015.
Ho Chi Minh City braces for MERS-CoV, H7N9
Medical stations in Ho Chi Minh City have been urged to increase inspections to promptly detect any patients who are suspected of having Middle East Respiratory Syndrome (MERS-CoV) or avian influenza H7N9, and swiftly contain them.
Director of the municipal Preventive Medicine Department Nguyen Tri Dung made the call at a meeting in the city on June 4.
The function heard that no cases of such diseases have been reported so far in Vietnam. However, there are high risks that these viruses may enter Vietnam as the country is expanding trade and tourism ties with foreign countries, including those where these diseases are developing unpredictably.
Passengers on flights from A/H1N1-hit countries, such as Cambodia, Egypt, Indonesia and Bangladesh, and those from China, which has recorded cases of both A/H1N1 and H7N9 viruses, and the Mers-CoV-hit Middle East nations must have their body temperature measured before entering Vietnam.
The city has seen a reduction in cases of prevalent diseases such as measles, chickenpox, foot-hand-mouth and dengue since May. However, preventive measures must be continuously taken to keep the diseases under control.
It will increase vaccinations for children aged 3-10 years old until July, while launching the Environmental Sanitation Month to mark the ASEAN Dengue Day (June 15).
Lai Chau struggles to clear opium poppy plantations
Opium poppy fields are still growing in the northern mountainous province of Lai Chau, despite efforts to eradicate them by local authorities.
The situation is particularly bad in Ta Tong Commune, Muong Te District, which is mainly inhabited by the Ha Nhi ethnic group.
Chairman of the commune's People's Committee Sung A Chu said that the area of poppy plantations had fallen, but locals continued to cultivate them.
Local authorities held campaigns to eradicate opium poppy fields twice a year, but local people still found ways to grow them illegally, he said.
In March this year, local authorities destroyed 55,000sq.m of poppy fields in the commune.
However, it was difficult to completely deal eradicate the problem, he said.
"Opium poppies are often planted in remote areas. There are fields that take two days to reach through the forests, and it was difficult to establish who was growing them" he said.
A lack of regulations to punish opium poppy growers was another challenge, he added.
The expansion of poppy fields has led to a high rate of drug addiction in the commune.
"Local authorities held detox programmes for drug addicts but they often relapse when they return home,"Chu said.
In order to completely eradicate opium poppy fields in the commune, local authorities plan to help local residents to improve production by introducing high-yield rice varieties and rubber plantations which can thrive in the commune's climate.
US, Sweden support disadvantaged children in Thua Thien Hue
The central province of Thua Thien Hue has received funding of nearly VND558 million from the US charity Aid To Children Without Parents (ACWP), to implement a project to support local orphans and disadvantaged children.
The project aims to improve local residents’ living conditions and raise orphans’ and poor children’s capabilities to earn their own living, contributing to the development of education and healthcare activities.
The project will be carried out in a year, in the districts of Quang Dien, Phu Vang and Huong Tra commune in Thua Thien Hue.
Meanwhile, the provincial People’s Committee received more than VND2.9 billion in a non-refundable aid from a Sweden’s Adoptions Centrum (AC).  
The money will be used to set up a project to increase vulnerable women and children’s involvement in family affairs and social activities.
Binh Duong helps disturbance-affected enterprises
The Department of Customs in the southern province of Binh Duong is making every effort to help import-export enterprises affected by recent disturbances normalise their production and business swiftly.
According to Nguyen Phuoc Viet Dung, director of the department, as many as 356 out of 369 businesses operating in Binh Duong have so far resumed their activities, maintaining contributions to the local budget.
He added that his agency helped 34 enterprises recover their lost data software and customs papers.
Branches of the department were also directed to work overtime to be able to quickly assist businesses.
The disturbances in some localities, including central Ha Tinh and southern Binh Duong and Dong Nai provinces, erupted during workers’ rallies against China’s illegal placement of its oil rig HaiyangShiyou – 981 in Vietnam’s continental shelf and exclusive economic zone from early May.
Some extremists incited others to destroy the property of foreign firms, as well as some national businesses and individuals, and acted against law enforcement officials, disrupting social order and business activities.
Authorities have arrested and brought to trial hundreds of rioters.
Hanoi leader asks citizens to show patriotism by simple good things
People in the capital city of Hanoi should show their love towards the country through simple good deeds, such as joining production movements and abiding by the laws of the land.
The statement was made by Hanoi Party Committee Secretary Pham Quang Nghi during a working trip to industrial zones in the city on June 4.
Speaking at the Thach That - Quoc Oai Industrial Zone, Nghi mentioned recent regrettable disturbances which occurred in some localities during public opposition to China’s illegal placement of the oil rig Haiyang Shiyou-981 in Vietnam’s exclusive economic zone. These incidents caused damage to businesses’ assets.
While stressing that it is a legitimate right of Vietnamese people to oppose China’s wrong doings and struggle for protecting their national sovereignty and territorial integrity, he said that they should not follow the words of instigators to create social disorder that damages the image of the country.
Talking to foreign business owners and workers, he shared that Vietnam is taking a series of measures to maintain peace and stability. As neighbours, Vietnam and China should sincerely foster their friendship.
Hanoi is also trying its best to build its image and investment environment to attract more foreign investors while implementing policies to ensure fair interests for all foreign businesses, he said.
According to Nguyen Xuan Chinh, head of the city’s management board of industrial zones (IZs) and export processing zones (EPZ), Hanoi’s eight industrial zones is now home to 550 projects worth 5.3 billion USD. They include 300 foreign invested projects, with a total registered investment of 4.7 billion USD.
Businesses operating in Hanoi’s IZs and EPZs are expected to post a combined revenue of 5.5 billion USD, up 11 percent against last year and accounting for 20 percent of the city’s GDP.
Art performance marks World Environment Day
An art performance to raise public awareness of environment protection and climate change adaptation was recently held in Ho Chi Minh City in response to World Environment Day (June 5).
Speaking at the June 4 event, Deputy Minister of Natural Resources and Environment Bui Cach Tuyen highlighted climate change and rising sea level as unpredictable ecological challenges which require global efforts to minimise their impact.
The performance aims to call on local people to protect the environment even with small deeds in their daily life such as putting the garbage into the right place, using power and water economically, and increase forest coverage, said Vice Chairman of the municipal People’s Committee Le Thanh Liem.
On this occasion, the Ministry of Natural Resources and Environment, the Vietnam Cinema Association, and the Vietnam Television held a ceremony to honour winners of the fifth Environment Film Festival, which received 119 entries.
Ho Chi Minh City is forecast to be one of the cities globally most vulnerable to the impact of climate change.
The United Nations General Assembly declared 2014 as the International Year of Small Island Developing States (SIDS), following the theme “Take actions to prevent rising sea level”.
It aims to underline the significance of protecting the environment and responding to climate change, especially in prone islands and coastal areas.
Dak Nong enjoys sound partnership with Cambodian province
The Central Highlands province of Dak Nong and the Cambodian province of Mondulkiri have enjoyed a growing relationship since they signed a comprehensive partnership agreement in 2010.
According to Le Duc Cuong from the Dak Nong Department of External Relations, the agreement, aiming to boost socio-economic agreement between the two localities in the 2010-2015 period, has seen a number of fruitful outcomes.
Thanks to the close coordination between local governments of both sides, the localities have finished border demarcation work as scheduled, with eight landmarks planted, he said.
Dak Nong has also handed over a 24 billion VND (1.128 million USD) vocational school as well as a public security headquarters building to Mondulkiri, said Cuong.
Meanwhile, trade exchange activities between the two provinces have been on the rise, mostly with consumer goods, construction materials, fertilizer and agricultural products, he noted.
At the same time, the two sides have also seen strong partnership in security and defence, particularly in preventing and combating violations of border regulations, drug trafficking and cross-border crimes, Cuong added.
Vietnam donates rice to drought victims in Angola
The Vietnamese Embassy in Angola recently handed over 23 tonnes of rice to the southern province of Namibe which was severely affected by the prolonged drought.
This was the result of a fund-raising campaign launched by the Embassy and the Vietnamese community in Angola in late 2013 to support Angolan victims of the drought, as well as flood victims in central Vietnam and Truong Sa (Spratly) islanders.
At the hand-over ceremony, deputy governor of Namibe province Alcides Cabral thanked Vietnamese people in Angola for helping Angolan people overcome the aftermath of the drought.
He said he believes the aid will contribute to promoting friendship between the two countries.
The rice volume, estimated at US$35,000, will be delivered to victims in drought-stricken areas soon.
In December 2013 the Vietnamese expatriates in Angola raised US$6,000 for flood victims in central Vietnam and Truong Sa islanders.
OVs in Poland raise funds for VietnamCoast Guard force
Overseas Vietnamese (OVs) in Poland on June 3 donated VND300 million to the Vietnam Coast Guard and Fisheries Resource Surveillance Forces who are protecting national sovereignty in the EastSea.
Another VND30 million was given to owners of the fishing boat DNa 90152 in Danang whose boat was sunk by a Chinese vessel in late May to help ease their suffering.
Vice Political Commissar of the Vietnam Coast Guard Maj. Gen. Hoang Van Dong expressed sincere thanks to the OV community in Poland for their support.
He confirmed that despite difficulties and dangers at sea, Vietnam Coast Guard and Fisheries Resource Surveillance Forces would stand firm to defend national sovereignty.
Over the past weeks, Chinese vessels which were deployed to protect its drilling rig Haiyang Shiyou-981 in the EastSea  have intimidated and rammed law enforcement boats of Vietnam Coast Guard and Fisheries Resource Surveillance forces, causing property losses.  
Climate change takes its toll on Tien Giang dykes
As many as 150 landslide-prone areas threaten a stretch of the dyke system in four districts of the Cuu Long (Mekong) Delta's TienGiangProvince.
Nearly 40 of the locations covering a length of 2.6km are said to be in serious danger.
Nguyen Thien Phap, head of the province's Irrigation, Storm and Flood Prevention and Control Department, said it would cost about VND16 billion (US$752,000) to repair and reinforce the trouble spots.
The extra rain and tidal heights caused by climate change together with rapid socio-economic development are partly to blame for the situation, he added.
Phap said the dyke in question was built too close to the river bank, which meant it was being quickly eroded in the flood season.
He said householders who lived near danger areas had been removed to safe places, adding that despite efforts, the situation was not fully under control.
According to Phap, the province has spent nearly VND86 billion ($4 million) in an attempt to remove 248 landslide-prone spots since 2005.
Patients give positive feedback on new hospital fee
Ho Chi Minh City hospitals run normally on the first day of application of new hospital fee, reported by SGGP.
Patients expressed satisfaction if hospital fee hike along with better services. Most of health insurance card holders did not worry about the new hospital fee because in reality the health insurance agencies cover most payment for their treatment and they are required to make copayment but not much for healthcare services.
Around 63,000 health insurance card holders registered in the DistrictGeneralHospital in District 2, said Dr. Tran Van Khanh, director of the hospital.
The new hospital fee rate does not affect them much, even some technique service increase slightly, he added.
Meanwhile doctors of the TumorHospital in District Binh Thanh where nearly 90 percent of patients are insurance card holders felt burden on patients from hike hospital fee.
Hospital Director Le Hoang Minh said that most of patients who suffer incurable diseases have to undergo complicated technique services, hence they have to pay a bit high differential margin.
So doctors try to apply best available techniques in treatment, Mr. Minh said.
Ho Chi Minh City is the final city to apply new hospital fee as per the ministries of Health and Finance instructed in 2012.
The new fee schedule will take effect in the 378 public hospitals and clinics in the city, with those for examination and checks, the daily cost of a sickbed, tests, and many other services rising to 75 percent of the rates that will come into effect in 2016.
Next year they will go up to 85 percent and 75 percent respectively, and a year later to 100 percent.
People join hands for national sea and islands
A wide range of activities have been held across the countries in recent days in response to movements towards national sea and islands and in support of fishermen, islanders and forces working and living on Vietnamese waters.
The Bank for Investment and Development of Vietnam (BIDV) on June 3 announced a credit programme worth VND150 billion (US$7.05 million) for local enterprises and fishermen in Binh Dinh province.
Under the programme, BIDV will provide loans with preferential interest rates for companies and fishermen to build 27 new fishing vessels, who will also engage in building a national flag tower on Cu Lao Xanh Island in Binh Dinh province.
BIDV also presented VND1.2 billion (US$56,400) for the Fund for Binh Dinh Fishermen, VND400 million (US$18,800) for fishing villages in Binh Dinh and VND100 million (US$4,700) to the family of Huynh Thi Nhu Hoa, owner of the fishing boat ĐNa 90152 sunk by Chinese vessels on May 26.
Earlier, the bank offered a credit package of VND3 trillion (US$141 million) to fishermen and enterprises to build, upgrade or repair their offshore fishing vessels.
On the same day, the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) also announced a credit programme for more than 3,000 members of Quang Ngai provincial fishery syndicate in the 2014-2018 period, to assist their careers.
Between June 1-3, the HanoiMedicineUniversity, in co-ordination with the General Police Department for Crime Prevention and Suppression and the Vietnam National Academy of Music, organised a programme named 'Joint efforts with fishermen' on Ly Son Island district in Quang Ngai province.
A delegation of doctors from the MedicineUniversity provided health check and free medicine for nearly 900 local people. They also presented 250 first aid kits, 500 life-jackets and 1,000 national flags for fishing boats from Ly Son and Da Nang.
The Club of Saigon Businessmen in Ho Chi Minh City on June 3 presented gifts worth VND8 million each to 40 ship owners in Da Nang city who catch fish in the traditional area of Hoang Sa and Truong Sa archipelagos.
The Huong Sen Health Care Centre under the National Hospital of Acupuncture called on its staff to send mobile texts to respond to the 'Joint efforts for national sea and islands' programme launched by the Ministry of Information and Communications and the Vietnam Red Cross Society. Nearly 1,000 officials of the centre sent texts to support the programme and contributed VND96 million to the Vietnam Red Cross Society.
By June 2, the SMS campaign has received more than 853,000 messages worth over VND15.3 billion (US$719,000).
Yesterday at Thanh Long temple in Thai Binh city, the Executive Board of Thai Binh provincial Buddhist Sangha held a ceremony to pray for peace in the EastSea and protest against China’s illegal placement of its oil rig in Vietnamese waters, attracting the participation of hundreds of Buddhist monks, nuns and followers.
New children’s hospital planned for opening in 2016
Authorities of HCMC expect a new children’s hospital will be up and running in 2016 as part of a scheme to open five new hospitals in the next two years to cope with chronic overload at hospitals.
In a recent document on major health projects submitted to the Prime Minister, the HCMC government proposed awarding no-bid contracts for the consultancy packages of the new hospital project.
The city wants to pick a consortium consisting of Construction Corporation No. 1 (CC1) and South Korea’s Yooil Engineering & Architects Co., Ltd. and a local partner as the engineering, procurement and construction contractor of the hospital project. This EPC does not include medical equipment.
The city will organize a public tender to select a capable and experienced contractor for the package to supply and install high-quality medical equipment at the new hospital with 18 months.
In January this year, the Prime Minister approved a scheme to build five new modern hospitals and institutes in HCMC, including the children’s hospital and allowed the city to appoint contractors for urgent cases. These facilities of regional standards will help ease increasing overload at the operational hospitals here in the city.
Earlier this year, the HCMC government planned to start construction of the new children’s hospital in July this year on 12 hectares in Tan Kien Commune in Binh Chanh District. This new 1,000-bed children’s hospital is expected to share patients with the heavily overloaded Children’s Hospital No.1 and No.2.
In addition, HCMC has plans to begin work on a second facility of OncologyHospital in District 9 next month.
Deputy Prime Minister Vu Van Ninh told a meeting with leaders of the HCMC government last year that the Government had approved some VND10 trillion for the two new hospital projects. This is part of the VND20 trillion endorsed by the Government for building key hospitals in the south.
Source: VNN/VNA/VNS/VOV/SGGP/ND/SGT/

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China wrong to seize Vietnam’s sovereignty by force: Vietnamese General


Vietnam’s Deputy Defense Minister Nguyen Chi Vinh is seen in this file photo. Tuoi Tre

What Vietnam needs is to keep independence and self-control, defend sovereignty, and maintain stability and a peaceful environment for development. No one is allowed to infringe on such sacred things, Vietnam’s Deputy Defense Minister Nguyen Chi Vinh has stated.
Senior Lieutenant General Nguyen Chi Vinh made this statement during a recent exclusive interview with Tuoi Tre (Youth) newspaper regarding the latest events in the EastVietnamSea.
Sr. Lt. Gen. Vinh has just returned to Vietnam from the 13th Shangri-la Dialogue, a multilateral forum mainly focusing on security issues in Asia, held from May 30 to June 1 in Singapore.
"It’s not unbiased that the international guests criticized China. They are just concerned that what happened to Vietnam could occur to another country in the future. If it occurs at sea today, it can occur on land tomorrow, and in the air the day after tomorrow," said Vietnam’s Deputy Defense Minister Nguyen Chi Vinh.
* More than one month has passed since China deployed its oil rig Haiyang Shiyou 981 to Vietnam’s exclusive economic zone. The Chinese have not hesitated to threaten the use of force and to use force, leading to serious consequences: Vietnamese ships tasked with requesting that China remove its oil rig from Vietnam's waters have suffered damage from attacks by Chinese ships; and, most recently, a Vietnamese fishing boat has been sunk by the Chinese. As one of the top leaders of the Vietnam People’s Army, what did you feel?
Sr. Lt. Gen. Vinh: I think it is a new attempt to gain advantages and interests in the nine-dash line they drew in the EastSea.
Their acts have threatened Vietnam’s sovereignty in particular and the country’s national security, independence and self-control, peace and stability in general. We are deeply concerned about their serious acts.
They made a mistake when they decided to infringe Vietnam’s sovereignty by force.
* Does anyone believe that Vietnam is provoking China?
Sr. Lt. Gen. Vinh: All witnesses can see that it is not true. Since we are transparent, we have invited local and international journalists to report at the scene. You know, they have reported and given comments without any restrictions.
Up to now, I haven’t heard any reporter at the scene saying that Vietnam disturbed or provoked China.

Vietnam Coast Guard ship # 2016 rammed by Chinese vessel #44101 in the waters of the Hoang Sa (Paracel) archipelago. Photo: Tuoi Tre
* Do you know why China took such actions, despite being a big country and a permanent member of the UN Security Council?
Sr. Lt. Gen. Vinh: As I guessed, they want to impose a new behavior in international relations. That means they use force and threaten the use of force to gain interests that do not belong to them.
However, such actions are unacceptable in the modern world. I would like to underscore that China will gain no benefit from such behavior. I want to ask neighboring China if some oil fields in that area will make China richer or tarnish its image?
As a neighbor, I want to tell China that they should stop what they are doing and follow a legitimate path for development. They can become a superpower and even the most powerful country in the world if they follow a peaceful path for development.
* China’s army and government leaders became furious as international guests showed support for Vietnam’s policy and solutions over the current EastSea situation at the Shangri-La dialogue 2014 held in Singapore. What are your comments?
Sr. Lt. Gen. Vinh: First, I would like to talk about the atmosphere of the Shangri-La dialogue this year. The defense leaders and scholars of many countries discussed many security issues but their main focus was still the EastSea problem.
I’ve yet to hear anyone saying what Vietnam did was wrong or Vietnam should do this or do that because Vietnam always complies with international law.
I think representatives of the Chinese side were angry because they did not understand the desires of the attendees at the dialogue.  
It’s not unbiased that the international guests criticized China. They are just concerned that what happened to Vietnam could occur to another country in the future. If it occurs at sea today, it can occur on land tomorrow, and in the air the day after tomorrow.
In a civilized world, it’s impossible for a country to trample upon justice and international law and unilaterally use force to bully another country.
* In general, there are three ways to deal with the current situation: political negotiation, military conflict, and legal action. For political negotiation, China did not show goodwill. Neither side wants the current situation to escalate into an armed conflict. So, is the third way the only option?
Sr. Lt. Gen. Vinh: No. You cannot have three options but choose only one. To defend our sovereignty, we must use many solutions concurrently.
First, we should reinforce the great national unity and the unanimity of all citizens in and outside the country under the leadership of the Party and the State.   
Second, we should continue to prove that Vietnam never ignores violations committed by China.
Third, we should strengthen our presence in international forums in order to ensure that the truth is being broadcast.
Fourth, many people have called on Vietnam to sue China in an international court. I think that is a peaceful solution based on international law.
We have to use all of the above solutions at the same time to force China to enter into negotiation with us and come up with a solution that both sides will agree with.  
About armed conflict? We will use all necessary measures to prevent it from taking place. There is clear evidence that although our ships have been intentionally rammed by Chinese vessels, we did not fight back with the same brutality. Furthermore, they attacked and sank our fishermen’s boats, but we did not do the same thing to their fishing vessels.
We remain unafraid of them. I think that is the power and humanity of Vietnam.
In the case that China or any country wants to start a war with us, we have no choice but to defend our country.
I believe that Chinese leaders will not choose to start a war. If they do so, it will be the biggest mistake of this century and will affect the world. 
China will never become a superpower or even a reliable and respected country if they wage a war against Vietnam.
Tuoi Tre

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BUSINESS IN BRIEF 6/6

HCM City hosts Vietnam- Singapore Biz Forum
The annual Vietnam-Singapore Business Forum 2014 (VSBF) opened in HCMCity on June 4, attracting more than a hundred representatives from the two countries’ leading businesses.
The three-day event aims to offer a platform to exchange business ideas, tackle current challenges and develop a bilateral strategic partnership.
Among participants were Singaporean giants AscendasProtrade, Mapletree, Victoria Hotels & Resorts, KeppelLand, Gold Roast, and Sagiko. Vietnam was represented by famous trademarks--Vietcombank, Thien Minh, and Dream House.
In the framework of the forum, delegates will visit a number of businesses, including Mapletree Business City, Ascendas-Protrade Singapore Tech Park, and Vietnam Singapore Industrial Park No.1 (VSIP I).
Many businesses showed their keen interest in priotized areas in the two countries’ strategic partnership - financial services, agro-forestry and fishery sectors, tourism, real estate, and the environment. Vietnam Chamber of Commerce and Industry (VCCI) Vice Chairman Doan Duy Khuong said both Vietnamese and Singaporean businesses are looking towards the establishment of an ASEAN Economic Community (AEC) in 2015.
“We hope that VSBF 2014 will help create bilateral business links and boost regional economic integration process,” he noted.
Tan Soon Kim, a senior official from International Enterprises Singapore (IE Singapore), highlighted that successful bilateral ties have offered many business cooperation opportunities for both countries.
In Asia, he said, Vietnam boasts an abundant labour force and mineral resources while Singapore’s services and expertise will help Vietnam capitalize on its advantages. Singaporean businesses will continue to play an integral part in Vietnam’s development process in the long run, he added.
By May 2014, Singapore ranked third among 101 foreign investors in Vietnam, with a total registered capital of US$30.32 billion, mostly focusing on processing and manufacturing industries, and real estate sector.
In May alone, Singapore invested in 29 projects worth more than US$363 million
in Vietnam.By April 2014, Vietnam poured US$196.4 million in 53 Singapore-based projects.
Vietnam looks to sharpen competitive edge
The government should help home enterprises enact a strategy on improving business climate and national competitive edge, first introduced in March, economic experts suggested at a workshop in Hanoi on June 4.
The event came as a mere one-third of localities nationwide have come up with plans to realise the strategy, known as Resolution 19, which lists a set of measures meant to enhance administrative reforms, helping firms save processing time and costs.
Director of the US Agency for International Development, Joakim Parker, said his agency is willing to assist Vietnam in implementing the strategy.
If successful, Vietnam will be able to strengthen its global trade commitments, including those made within ASEAN, the World Trade Organisation and the Trans-Asia Pacific deal, Parker said.
Under the strategy, the country sets the goal of meeting the standards of the ASEAN-6 group in terms of business licensing and insolvency, tax payment, customs formalities, access to electricity supply and credit, and investment protection by 2015.
The event was hosted by the Central Institute for Economic Management.
Haiphong guarantees safety for foreign investors
Leaders of the northern port city of Haiphong have pledged to continue ensuring safety to foreign invested enterprises in the locality.
During a meeting with representatives from local firms in Vinh Bao district and the Taiwan Business Association in Haiphong on June 4, Secretary of the municipal Party Committee Nguyen Van Thanh said the enterprises can put their worries at rest while operating in the city.
He vowed that the city will directly settle all obstacles arising during their operations.
According to Chairman of the municipal People’s Committee Duong Anh Dien, the situation in the city has remained stable thanks to joint efforts of the local authorities and residents, as well as the cooperation of foreign investors, including those from Taiwan.
Currently Haiphong is hosting 111 Taiwanese and Chinese enterprises, he noted, adding that the firms have made great contributions to the development of the city through boosting exports, creating jobs and conducting charitable activities.
Dien suggested that the Taiwan Business Association will further their cooperation with Haiphong authority, while helping the city attract more investors.
Representatives from the participating firms and the association thanked the city’ leaders for their close support, expressing their desire to expand their operations in the locality.
Binh Duong dishes out licenses for FDI projects
On June 4, the southern province of Binh Duong granted investment licenses to 41 projects totally capitalized at nearly US$155 million, mostly from foreign direct investment (FDI).
Nine of the newly-licensed projects are funded by Japan (US$35 million), nine by the Republic of Korea (US$28 million), and several from China and Singapore.
Chairman of the Binh Duong provincial People’s Committee granting investment license to Chinese businesses
Binh Duong provincial leader welcomed investors and encouraged them to expand operation in the province for mutual benefit.
Chief investors highly valued the favourable conditions and efforts by the Binh Duong provincial People’s Committee and relevant agencies to facilitate business operations in the province.
They pledged to disburse investment capital as soon as possible to enjoy fresh growth of the local economy in the coming time.
Over the past five months, Binh Duong attracted more than VND4,200 billion from domestic investors and US$978 million in FDI, fulfilling approximately 98% of its yearly target and 15% higher than the previous year.
Vietnam makes break-through in global energy sector
Doosan Vina announced that the eighth and final shipment of the first “Made in Vietnam” Supercritical-Once-thru power plant boiler has been loaded and shipped to Kudgi, India after fifteen months of manufacture.  
The two 800 MW super-critical coal-fired boilers weighing over 13,000 tons, represent a giant leap in Vietnam’s industrial development. It is the first power plant boiler of its type ever to be manufactured in Vietnam.
The two 800 MW Kudgi “Supercritical Once-Thru Boilers” will deliver 2,550 tons of high pressure steam per hour and operate under extreme temperatures of up to 569 degrees celcius and pressure levels of 271 kilograms per square centimeter.
Doosan Vina is one of only a handful of companies worldwide that are certified by ASME to manufacture these high tech power plant boilers.
The project required eight shipments in total and the 13,102 tons of coils, panels, headers and links will be assembled on site in India and then begin producing power to fuel India’s development.
“We’ve worked hard on this history making project and are proud that another Vietnamese made power plant boiler is out there generating power for our neighbors in India; each time we complete a boiler Vietnam’s reputation as a global player in the energy sector increases, bringing us more and more customers from around the world,” said To Lan Phuong, Manufacturing Engineering Section Manager.
Businesses urged to expand markets overseas
Diversifying markets overseas is an effective way to sustain Vietnam’s export growth and strike its trade balance with China, experts said in Hanoi on June 3.
Experts made the recommendation at a conference to address a fall in farm produce exports to China following tensions in the EastSea between Vietnam and China.
They agreed that the pressure from the territorial dispute has now directly spilled over into trade relations between Vietnam and China resulting in a sharp drop-off of Vietnamese exports and imports with China.
Agriculture ministry statistics show farm produce exports to China dropped more than 7% in May compared to April due to declining volumes of rubber and cassava.
The Ministry of Industry and Trade (MoIT) said that despite EastSea tensions, the trade exchange between Vietnam and China is returning to normal, but underlined the need to map out a new strategy for future trade relations with China.
MoIT Vu Huy Hoang said China is an important trade partner of Vietnam, and Vietnam needs to maintain and develop trade with this big neighbour.
However, he emphasised the need to diversify markets to reduce reliance on China as Vietnam’s trade deficit with China remains high.
The MoIT is currently working with Laos and Cambodia to prepare for the signing of agreements on border trade, significantly increasing Vietnamese exports to these markets, he said.
Vietnam and China signed a border trade agreement in 1999, and they agreed to renew it in late 2013. Yet, tensions in the EastSea are affecting the signing of the document.
The MoIT pledged to complete the signing process in the coming time.
RoK, Vietnam energy firms ink deals
Energy technology firms from Vietnam and the Republic of Korea (RoK) signed contracts totalling US$32 million at the 6th International Exhibition on Environment and Energy Technology (Entech) recently held in Hanoi.
Many State and private businesses of Vietnam showed their special interest in the RoK’s advanced technology in the energy sector and its competitive prices.  
During the May 21-23 event, big Korean companies such as Korea Western Power Co. Ltd, Taekwang Power Holdings Co. Ltd, and Korea Hydro and Nuclear Power Company organized workshops, introducing advanced technology to Vietnamese firms and their plan to penetrate the Vietnamese market.
About 90 stalls of at least 70 Korean companies operating in the fields of power production, energy saving, water supply and waste treatment drew thousands of visitors to the exhibition.
More domestic consumers put purchases on credit
Consumer habits of Vietnamese are changing, with an increasing number looking to purchase their desired products through affordable loans.
Igor Prerovsky, General Director of Home Credit Vietnam, invested by PPF, said at June 3 conference on consumer finance that consumer credit, which helps consumers buy their desired items and pay later, is expanding in Vietnam.
Statistics released by Home Credit showed that around 20% of consumers in the country's southern part make purchases on credit while it accounts for around 10% in the north. These figures are showing signs of increasing.
Prerovsky pointed out that consumer finance is another way to contribute to economic development through boosting purchasing capacity and demand, while enhancing living standards of consumers.
This also helps consumers to form a habit of saving, he added.
In addition, financial companies targeted low-income earners rather than the middle-class, in comparison with retail banks.
Home Credit, with more than 5,000 points of sale in all 63 provinces and cities in Vietnam, said fast, simple and professional services are the core basis for competition in the consumer lending sector but credit safety must be ensured.
Small and big firms meet to sound out business prospects
Large companies worked with small and medium enterprises (SMEs) in Vietnam at a speed meeting in HCMC last week to explore ways to boost business links.
The event attracted 17 big corporations in varied fields, most of them from Europe such as Big C, GameLoft, Bel, Schneider and Piaggio, and 27 local and foreign SMEs.
The meeting was organized by the EU-Vietnam Business Network (EVBN), the French Chamber of Commerce and Industry (CCIFV) and the European Chamber of Commerce in Vietnam (EuroCham) to help the participating businesses to look for suppliers and customers.
According to EVBN, CCIFV held a similar event last year and many participants said they had not known the products they were looking for were available on the Vietnamese market until that event took place.
The five-year project EVBN was initiated late last year with a budget of around three million euros by the European Union to facilitate operations of EU companies in Vietnam.
Mekong Delta grapples with slow agriculture modernization
The Mekong Delta, the country’s key rice growing area, is still struggling with the sluggish modernization of the agriculture sector, which experts said is due to inconsistent policies for agriculture and rural development.
Professor Bui Chi Buu, former director of the Institute of Agricultural Science for Southern Vietnam under the Ministry of Agriculture and Rural Development, told a recent seminar that post-harvest losses stayed high, at 12-14% of total output.
This is one of the reasons behind local farmers’ low incomes compared to the nation’s average.
The nation has concentrated much on food security but social welfare for those working in the field has been paid little attention, Bui said. Farmers have made great efforts to grow higher-yield crops and embrace intensive farming methods, their living standards have not improved correspondingly.
Ho Viet Hiep, vice chairman of An Giang Province, said farmers in the province are now able to harvest four tons of paddy a hectare and exported US$200 million worth of rice last year.
An Giang has made certain farming breakthroughs like the successful large-scale rice field and a stronger link between farmers and enterprises. But local farmers earn just over US$1,000 a year on average each.
Therefore, the sector needs comprehensive restructuring, Professor Buu said, urging more investments in the sector with a focus on adding value to farm produce and lowering exports of semi-processed products.
The agriculture sector in the Mekong Delta in general and in An Giang in particular has achieved lower-than-expected growth due to the absence of feasible strategies for modernization.
The average growth was 5.5% in 1986-2003 but dropped to 4% in 2011 and 2.67% last year.
Buu also proposed incentives for large-scale farming to turn out higher quality products at lower costs and for establishment of strong business-and-farmer cooperation.
Last year, the Mekong Delta region expanded large-scale rice production to 76,000 hectares.
Investors sought for Tay Bac Urban Area
The management of the Tay Bac Urban Area in HCMC’s outlying districts in collaboration with the HCMC Investment and Trade Promotion Center (ITPC) held a conference over the weekend to call for investments with a focus on infrastructure development and other important sectors.
Previously, many foreign and domestic investors had shown keen interest in Tay Bac Urban Area but the management was unable to accept their proposals as the 1/2000 scale plan of the area had not been approved.
Now the plan has been approved by the city government, paving the way for the urban area in Cu Chi and Hoc Mon districts to attract investors to infrastructure development as well as housing, residential, hospital and schools projects.
Among the major components in need of investors are Tam Tan Street stretching from An Ha Bridge to Provincial Road No.8, the streets by canals No.5, No.8 and No.7, the roads connecting canals No.5 and No.7, an intersection at An Ha Bridge, Diamond residential village, education and administrative-trade-service centers, and a resettlement area.
Investors will be provided with incentives in line with the city’s investment policy. For the prioritized projects, the management will ask the city government for special treatment for the investors.
Tay Bac covering more than 9,000 hectares and 30 kilometers away from the downtown area of HCMC is expected to be home to around 450,000 residents. It will be developed into an eco-area and connected to trans-Asia National 22 linking HCMC to Long An and Tay Ninh provinces.
The components under construction in Tay Bac are Kinh Dong Water Treatment Facility, Tan Phu Trung Industrial Zone and Cu Chi Golf Course.
Tay Bac is one the three major urban areas to be developed in HCMC. The other two are Thu Thiem and South Saigon.
PM approves 15 new golf courses in zoning plan
Prime Minister Nguyen Tan Dung has signed a decision approving 15 more golf courses in a zoning plan for development until 2020.
According to the decision signed last week, there will be nine golf courses and the second phase of one course will be removed from the country’s zoning plan for this field until 2020.
With the adjustments, Vietnam will have 96 golf courses planned for development towards 2020. The number includes 14 golf courses in the northern midlands and mountainous region, 19 in the Red River Delta, 30 in central Vietnam, seven in the Central Highlands, 22 in the southeastern region and four in the Mekong Delta region.
The Ministry of Planning and Investment has been to adjust and supplement the requirements for development of golf courses compared to those clarified in Decision 1946/QD-TTg issued in 2009 based on the actual situations in regions. The ministry will have to submit the new criteria to the Prime Minister next year.
The 15 new golf courses in the zoning plan until 2020 are Phuc Tien and Ky Son in Hoa Binh Province, Thanh Xuyen in Phu Tho Province, Yen Binh and Phu Binh in Thai Nguyen Province, Halong Star in Quang Ninh Province, Dam Hau Lake in
Yen Bai Province, Cat Ba in Haiphong City, Phoenix Hill in Ha Nam Province, Quang Cu in Thanh Hoa Province, Lang Co in Thua Thien-Hue Province, Ho Na-Van Phong in Khanh Hoa Province, Son My and Hon Rom in Binh Thuan Province, Vietsovpetro in Ba Ria-Vung Tau Province, Phuoc Dong in Tay Ninh Province and Hoan Cau in Long An Province.
Farming imports up 20% this year
Viet Nam's agriculture, forestry and fisheries sector had a year-on-year increase of 20.1 per cent in imports in the first five months of this year.
This announcement was made by the Ministry of Agriculture and Rural Development, adding that the increase was a total US$8.56 billion in imports of material and products for production.
During the first five months, Viet Nam imported pesticide worth a total of $337 million, 5.6 per cent higher than the same period last year.
Almost all the pesticide products used in the domestic market were imported, with an annual volume of 70,000 tonnes, stated Bui Si Doanh, deputy head of the Plant Protection Department.
Imports of animal feed products material for producing animal feed had a light surge of 0.1 per cent to $1.2 billion against the same period last year. Of which, imports had a year-on-year increase of 49 per cent in volume to 809,000 tonnes and also the same percentage in value to $474 million for soybean.
Imports of corn surged by 3 times in volume to 2.24 million tonnes and 2 times in value to $576 million compared with the same period last year.
Viet Nam must pay $200 million each year to import varieties of plants, including fruit, vegetable and rice, the ministry said.
Meanwhile, in the first five months of this year, imports of fertiliser had a reduction of 14.9 per cent in volume to 1.31 million tonnes and 35.8 per cent in value to $405 million against the same period last year because the domestic supply increased to meet the demand at home market.
Experts reported that the agricultural sector should reduce imports of products and materials for production to gain sustainable development of the sector in the future. To achieve the target, the sector should promote attraction of investment from both domestic and foreign enterprises with modern technology for increased output and quality of farming products to avoid dependence on imports.
PM approves Vinacomin capital sale to VPBank
Prime Minister Nguyen Tan Dung has approved in principles to allow the Viet Nam National Coal and Minerals Industries Group (Vinacomin) to sell all of its charter capital at Vinacomin Finance Company (CMF) to Viet Nam Prosperity Bank (VPBank).
The State Bank of Viet Nam also agreed in principles on document No 3707/NHNN-TTGSNH dated on May 30 for the deal.
Deputy PM Vu Van Ninh asked Vinacomin and VPBank to follow laws on merger and acquisition while ensuring State-owned capital.
The two sides have been implementing further steps to complete the deal.
A representative from VPBank revealed that the bank will shift all credit activities at CMF to a new company with the aim of making the operation more professional and bringing better benefits to customers.
He said that the sale of share at CMF was to implement the divestment of state-owned enterprises from non-core businesses and restructuring credit system. In addition, it will also realise the bank's plan to focus on consumption credit services as part of its retail strategy to become one of the three leading retail commercial banks by the beginning of 2017.
Nguyen Van Bien, Vinacomin's deputy general director, announced at the press meeting in Ha Noi on Monday that the group would complete its divestment from non-core businesses by 2015.
Accordingly, Vinacomin will withdraw capital of more than VND400 billion (US$19.05 million) from four companies, including Sai Gon–Ha Noi Commercial Bank (SHB), SHB Securities Company (SHS), Sai Gon-Ha Noi Fund Management Joint Stock Company (SHF) and Hai Ha Industrial Zone.
Bien said that Vinacomin had also completed equitisation of two out of eight corporations.
Value clarification of three out of the six remaining companies has been completed and submitted to the Ministry of Industry and Trade. The equitisation plans will be submitted to the PM for approval. The companies include Minerals Holding Corporation, Power Holding Corporation and Viet Bac Mining Industry Holding Corporation, with a charter capital of VND500 billion ($23.80 million) each.
"Some strategic investors both inside and outside the country have expressed their interest in the corporations," he added.
Vinacomin expected to sell around 10 million tonnes of its products in the April–June period and export at least 1.5 million tonnes. To realise the goal, the corporation has taken various measures to promote the production of high-quality coal, satisfying customer demand and ensuring good income for workers.
In the first five months of 2014, Vinacomin sold 16 million tonnes, down nearly 11 per cent year-on-year, and shipped over 3.7 million tonnes abroad, only 62.6 per cent of the same period last year.
Despite an array of economic difficulties in 2013, the group earned more than VND97 trillion (over US$4.6 billion) from selling 39 million tonnes of products, including 11.6 million tonnes for export.
Commercial banks lift US dollar rates
The US dollar prices climbed in the domestic commercial banks and in the flea market on June 3, while the gold prices dipped slightly in Viet Nam.
While the State Bank of Viet Nam (SBV), which recently made a commitment to stabilise the gold and forex markets, has kept the rate of VND21,036 for US$1 unchanged for the last 11 months, most commercial banks increased the dollar's buying and selling rates between VND30 and VND50 yesterday.
Vietcombank yesterday added another VND40 to the dollar's selling rate, raising it to VND21,220 and was buying it for VND21,160, which was VND30 higher over Monday's last rate. According to Vietcombank, the US dollar rate increased between 0.28 per cent and 0.33 per cent during the last two weeks in the bank.
The same buying and selling rates of VND21,160 and VND21,220 respectively were applied by EximBank and VietinBank. The rates were VND21,180 and VND21,200 at the Bank for Investment and Development of Viet Nam, and VND21,170 and VND21,230 respectively at the Asia Commercial Bank.
According to SBV, commercial banks were allowed to apply an effective exchange rate + or -1 per cent from the official exchange rate set by SBV. Accordingly, the ceiling price for a dollar was VND21,246.
In the flea market, traders also raised their US dollar rate compared to June 2. At the Quoc Trinh Jewellery Company in Ha Trung Street, the most popular forex spot in Ha Noi, a dollar was listed between VND21,330 and VND21,350.
On the same day, the gold price fell by VND100,000 or $4.7 for one tael from the previous day. One tael of the State-owned SJC gold was selling at VND36.28 million, or $1,727, at the Saigon Jewellery Company. On the gold trading floor, Kitco.com, the gold price dropped by $4.4 per ounce and was listed at $1,242.9 per ounce or $1,497.6 per tael. Thus, each tael of gold in Viet Nam was nearly $230 higher than in the world market.
Vinamilk plans Polish subsidiary
The Ministry of Planning and Investment on Monday granted the Viet Nam Dairy Products Joint Stock Company (Vinamilk) a licence to open a subsidiary company in Poland.
With a registered capital of US$3 million, Vinamilk Europe Sp z.o.o will focus on the wholesale trade of animals, raw materials for making milk and milk products and food and beverages, according to NDHmoney.vn.
The company will be Vinamilk's seventh subsidiary, including one each in the US and Cambodia.
In the last one month, the stock price of Vinamilk, or VNM on the stock exchange, closed in the margin between VND120,000, or $5.7, and VND137,000, or $6.5, per share. The average volume of exchange was 410,748 units at an average price of VND53.5 billion, or $2.54 million, per section.
HCMCity, Kansai ink co-op pact
HCM City People's Committee and Kansai region's Economy, Trade and Industry Department on Monday signed a framework agreement on cooperation, under which they will enhance connections in support industry.
The two sides will also speed up the establishment of a business environment that can facilitate the investment of Japan's Kansai enterprises in the support industry in HCMCity.
The city has assigned its management board of industrial and export processing zones to set up a division in charge of connecting ties with Kansai and providing consultations for its enterprises.
At a meeting with the Japanese guests earlier, Chairman of the Municipal People's Committee Le Hoang Quan announced that Viet Nam in general and HCM City in particular commits to creating all favourable conditions for foreign investors, considering them part of the country's economy.
Toshinori Kobayashi, head of the Kansai department, and the region's businesses, especially those operating in the support industry, are paying much attention to boosting investment in HCMCity and its surrounding areas.
$9.4b earmarked for HCMCity works
The Sai Gon – Ha Noi Commercial Bank will provide a credit line for the Phu My Construction Development Joint Stock Company (PMC) to develop 14 infrastructure projects in HCMCity by 2020.
According to Nguyen Thanh Thai, general director of PMC, the company has plans to invest an estimated VND200.1 trillion (US$9.4 billion).
They include over VND6 trillion for a Southern Ring Road (through Districts 8, Binh Tan, and Binh Chanh), VND168 trillion for five elevated highways, and VND815 billion for the RachChiecBridge.
Thai said the projects would be undertaken in several forms like build-transfer, private – public partnership, and build – operate – transfer.
The two signed a contract on Monday for a loan of nearly VND4 trillion for a road to link the Eastern Ring Road with the Ha Noi Expressway (from District 2 to District 9) and widening Luong Dinh Cua Street in District 2.
Nguyen Huu Tin, deputy chairman of the HCM City People's Committee, confirmed that the 14 projects would have to be completed by 2020.
Central region growth in focus
Deputy Prime Minister Nguyen Xuan Phuc yesterday stressed the importance of the central coastal region in the country's socio-economic development process, saying its potentials should be exploited in a sustainable manner.
Addressing a forum on sustainable development held by the Ministry of Planning and Investment in collaboration with the World Bank, Phuc said the region has great potential in tourism, mineral resource exploitation and deep water ports.
He advised localities in the region to combine economic development with environmental protection.
Victoria Kwakwa, the World Bank's Viet Nam Country Director, also told the forum that localities should closely co-ordinate with each other to take full advantage of their potentials to develop infrastructure and diversify tourism products.
Other speakers shared their views on how to intensify socio-economic development while still protecting the environment, including strengthening transport infrastructure connectivity, using water resources in a sustainable manner and managing and mitigating the risks of natural disasters.
The central coastal region stretches from Ha Tinh to Phu Yen with a total population of about 9.9 million.
Phuc also met yesterday afternoon with leaders of Quang Ngai as well as several districts to talk about progress made in the project to expand and upgrade the National Highway 1 section that runs through the central province.
He asked the provincial People's Committee to strengthen its focus on supervising land clearance to ensure the process is completed by June 30.
He also asked the officials in charge to work responsibly in supporting residents who have to be relocated because of the project. The residents should be able to enjoy stable lives after resettlement, he said, adding that for this to happen, other work related to the construction of resettlement areas, such as electricity and telecom connections, water supply and provision of other utilities, should be done well and in time.
Phuc said the Government would give a temporary loan of VND50 billion (US$2.38 million) so that the province is able to expedite the land clearance process.
He also said the Transport Ministry would propose to the Prime Minister a 19-kilometre extension of the National Highway 1.
According to Le Quang Thich, acting chairman of Quang Ngai People's Committee, of the 197ha of land required for the project, 176ha have been cleared, which means 90 per cent of the land clearance target has been met.
Of the total of over 6,270 relocating households that need to be compensated, nearly 2,890, or 46 per cent, have already received their compensation.
He said the province was constructing 23 resettlement areas for the relocating families.
The National Highway 1 section running through QuangNgaiProvince is more than 91 km long.
Thich said his administration would focus on removing obstacles to ensure that the land clearance is completed by June 30, as ordered by the Deputy Prime Minister.
Exports post 15.4 percent increase in five months
Vietnam raked in some 58.51 billion USD from its exports in the first five months of this year, a year-on-year hike of 15.4 percent, making this year’s export target feasible, said Phan Van Chinh, Director of the Import-Export Department under the Ministry of Industry and Trade on June 2.
Domestic firms brought home 19.05 billion USD from their exports, while 36.39 billion USD was contributed by foreign-invested enterprises, a surge of 18.6 percent from the same period last year.
In May alone, the export turnover rose by 3.5 percent from the same month last year to 12 billion USD. The proportion of fossil fuels and minerals in the total exports reduced, while industrially-processed and agro-aquatic exports climbed. This trend is closely aligned to the national export strategy.
Notably, two-way trade between Vietnam and China soared in the reviewed period. Vietnamese products shipped to the market totalled about 6.1 billion USD in value, or 10.5 percent of the total export figure, while the country spent around 16.1 billion USD purchasing imports from China.
In addition to boosting exports to its traditional markets, including ASEAN, the EU, Japan and the US, Vietnam continues to diversify its exports and is maintaining effort in seeking new importers in Africa and the Middle East, said Deputy Minister Do Thang Hai.
This week, the ministry will discuss measures to further boost agro-aquatic exports through expanding markets for these products and reduce the fluctuation in prices for farmers.
New gold jewelry management regulations effective
Although many gold traders have suggested extending the effective date of a new circular on jewelry quality management, the Ministry of Science and Technology still insists on applying the circular from early this month to protect the interests of consumers, a local newspaper has said.
According to the Saigon Times Daily, Circular 22/2013/TT-BKHCN, which was issued by the ministry last September and took effect on June 1, regulates management and measurement policies for the gold trading business.
Under the document, the standards of quality and measurement of the gold jewelry items traded on the local market must be written in a code with the correct gold content.
The circular aims to help reduce substandard gold products on the market and serve as a more effective legal tool for management agencies to tackle violations.
However, local traders claimed that they had been on tenterhooks as the time from the circular’s date of issuance to that of coming into force was too short for them to make necessary preparations and manage their inventory.
Nguyen Hoang Linh, head of the ministry’s Directorate for Standards, Metrology and Quality, said Circular 22 did not mention the concept of ‘inventory’ and that all jewelry items available on the market must meet quality requirements set by the circular early this month.
In the past nine months, gold traders should have finished preparations to meet requirements by the circular and solved all substandard jewelry items. Consumers had the right to choose the items with various gold contents and prices and to buy those with the correct gold content announced by producers, Linh said.
In fact, most jewelry products on the market have been made without codes indicating clear gold contents. As a result, many people pay for the gold jewelry items they believe to have sufficient gold content but when they sell the products, they receive far less money than they expect because the gold content is announced much lower.
For instance, most 18-carat jewelry whose at least 75 percent of the content should be pure gold but the real content is only 66 percent gold on the domestic market.
Therefore, Nguyen Van Dung, Chairman of the Saigon Jewelry Association, said the circular was a legal foundation to restore order on the gold jewelry and fine arts market and to protect the interests of customers.
Pilot programme helps increase agriculture connectivity
The State Bank of Vietnam, the Ministry of Agriculture and Rural Development and the Ministry of Science and Technology are considering cooperation on a pilot programme for financing connectivity models between businesses and farmers in order to promote high technology application in agricultural production and exports, the Vietnam Economic News reported on June 3.
Director of the Credit Department under the central bank Nguyen Viet Manh said that there have been many agricultural production models promoting connectivity between businesses and farmers nationwide.
A number of those have proved successful, including the large-scale rice field model in An Giang province and other localities, the hi-tech vegetable and flower cultivation one in Lam Dong province, and the dairy farming and milk product production one in Nghia Dan in Nghe An province, among others.
With those models, businesses not only created large scale rice fields and mechanised agricultural production but also had stable raw material production areas and constructed trademarks and geographical indications for their products in both domestic and foreign markets. The models benefited both farmers and businesses.
At a Government's regular meeting in February 2014, SBV Governor Nguyen Van Binh suggested the construction of a credit programme for connectivity models and high technology application and farm export promotion projects.
Through its Resolution 14/NQ-CP, the Government assigned the central bank to work with the Ministry of Science and Technology and the Ministry of Agriculture and Rural Development to implement a pilot credit programme for connectivity models. These three institutions are working together to survey, research and construct experimental policies for a large scale application.
Manh said the pilot credit programme will reduce the input costs for the connectivity models’ products through offering preferential credit for the models. The programme could provide unsecured loans for businesses and farmers as members of a connectivity model.
With this pilot programme, the banking sector can not only increase credit growth related to agricultural production but also promote large-scale, competitive agricultural production, contributing to gradually improving farmers' living standards and constructing and developing new rural areas.
Manh said the bank, the Ministry of Science and Technology, the Ministry of Agriculture and Rural Development and credit institutions were expected to select about 20 connectivity models as the pilot credit programme’s beneficiaries.
These include the large-scale rice field model, the product value chain-based connectivity model and the high technology applying business model, among others, with priority given to rice, seafood, livestock breeding, vegetable and fruit.
About two years after the pilot credit programme finishes, the SBV will consider policy improvements and multiplication of the models.
Manh added that agricultural insurance policies, farm produce planning and its management, farm export promotion and law-based assistance and market information are important for the pilot credit programme’s success.
HSBC: Vietnam’s PMI drops in May
Vietnam’s Purchasing Managers’ Index (PMI) was 52.5 in May compared to 53.1 in the previous month, but still signaled operation improvements at Vietnamese manufacturing firms, according to a report released by HSBC Bank and Markit Economics on June 2.
HSBC said in the report that overall business conditions in the Vietnamese manufacturing sector strengthened in May amid ongoing improvements in client demand.
Output increased for the eighth consecutive month amid another solid expansion in new business. Some panelists reported that purchasing of materials in recent months had enabled them to raise their output.
Meanwhile, production growth helped firms work through outstanding business. Backlogs decreased modestly following a rise in the previous month.
However, HSBC said the recent changes in transportation rules again impacted on the manufacturing sector in May. Suppliers’ delivery times lengthened to the greatest extent in the survey’s history as new tonnage rules meant that suppliers had to make more journeys in order to deliver the same amount of goods.
The rules also affected the cost of shipping, in turn pushing the rate of input cost inflation up for the second month running to the fastest since March 2012.
Despite a sharp rise in input costs, manufacturers left their output prices largely unchanged during the month. While some panelists reported having passed on higher cost burdens to their clients, others indicated that efforts to stimulate demand had led them to reduce their charges, the report said.
Employment also increased for the second month running in May although the rate of job creation slowed and was only slight. Higher production requirements led some panelists to raise staffing levels.
Increased output requirements also led to a rise in purchasing activity during the month. Input buying has now increased in each of the past nine months, with the rate of growth remaining solid despite easing from that seen in April.
Stocks of purchases decreased modestly as inputs were used in the production process. Stocks of finished goods were also depleted following a rise in the previous month. The rate of decline was only marginal.
Trinh Nguyen, Asia Economist at HSBC, said the latest PMI showed that the manufacturing sector in Vietnam was competitive, with activity still expanding albeit at a slower pace. The concern really is the added costs to manufacturers, which come at a time when exporters already incur high logistics costs.
“Profit margins are being squeezed, as weak domestic demand makes it hard for manufacturers to raise output prices despite rising production costs. We expect the State Bank of Vietnam to keep rates steady to support domestic demand,” she said.
HCMCity announces urban design along major roads
The HCMC Department of Planning and Architecture has publicized a detailed urban architecture and landscape plan for the major streets in the city, including Pham Van Dong, Hanoi Highway and Mai Chi Tho-Vo Van Kiet.
The scale 1/2000 plan contains criteria for individuals and organizations when they plan constructions along the roads. The plan is considered an important basis for issuing the licenses for construction works along the roads in terms of height, color and architecture.
Under the plan, Pham Van Dong Street, which is also known as the Tan Son Nhat-Binh Loi-outer ring road route, stretches 15.33 kilometers and crosses Tan Binh, Go Vap, Phu Nhuan, Binh Thanh and Thu Duc districts. The design area covers 527.3 hectares.
The design plan for Mai Chi Tho-Vo Van Kiet route covers 650.96 hectares along a 13.54-kilometer section from Thu Ngu Flagpole near KhanhHoiBridge to the intersection between National Highway 1A and HCMC-Trung Luong Expressway. The route goes through districts 1, 4, 5, 6, 8 and Binh Tan.
The plan comprises 577.08 hectares along 14.83 kilometers of Hanoi Highway section from SaigonBridge in District 2 to Cultural and HistoricalPark in District 9.
Nguyen Thanh Toan, deputy director of the department, told the Daily last week that the urban design plan would be on display at the offices of the districts where these roads go through from this month for local residents to view. Construction indexes and the level number of buildings along the roads are also available in the plan.
Toan expected the urban design plan was introduced to help reduce the number of houses which have been built in different sizes and shapes along the streets in the past years.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR

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Lawyer: Vietnam needs int’l support in lawsuit against China

Lawyer Truong Trong Nghia has suggested Vietnam should not take up its legal struggle against China alone; instead it needs to take advantage of international support to ensure justice is on its side.

 ASEAN countries, international support, 14th Shangri-la Dialogue

Lawyer Nghia, who is vice president of the Vietnam Bar Federation and a National Assembly deputy, gave the advice when asked about the possibility of Vietnam using legal action against China’s illegal positioning of its oil rig Haiyang Shiyou-981 in Vietnam’s exclusive economic zone.
He granted an interview to press at the current National Assembly session.  
Is it possible to bring China to the International Arbitration Court?
It is certain that China’s claim of sovereignty over the Hoang Sa (Paracel) archipelago and its unilateral deployment of the giant floating rig Haiyang Shiyou-981 is a wrongful act. The archipelago belongs to Vietnam. China’s use of force to take control of Hoang Sa in 1975 is illegal but was never recognised internationally.
We have sufficient legal evidence to assert our sovereignty over Hoang Sa, and call on the international community, including international jurisdiction organisations and the United Nations, to reject China’s groundless claim. We should carry on the legal struggle at international forums.
China’s unilateral move goes against the 1982 UN Convention on the Law of the Sea (UNCLOS), and this is a legal basis for us to file a lawsuit against China.
Do you think the National Assembly will issue a resolution to clarify Vietnam’s stance?
As far as I know the legislature is ready to do everything in its remit to show it is the most powerful representative body of the people. However, it is still keeping a close eye on the situation and needs more time before making any decision.
A National Assembly decision must demonstrate the people’s will and aspirations, be influential, and support ongoing efforts to demand China withdraw its oil rig from Vietnam’s waters, in order to protect the country’s sovereign right and jurisdiction.
How long do you think the lawsuit will last?
It will certainly last a long time because it follows complex international principles and requires great expertise, both domestically and internationally. Even with a firm legal basis, we still need time to prepare ample evidence, persuasive arguments and supporting materials.
We cannot pursue this legal struggle alone, we need to follow the correct diplomatic channels in line with international law to show that justice is on our side. We also need to strengthen national defence, economic potential and national solidarity, because this is the struggle of the entire Vietnamese people.
In brief, this is a complicated situation that requires wisdom, skills and a high level of expertise, as well as experience from previous struggles. We have learned a lot from our past wars, especially the wars of resistance against French colonialism and American imperialism in the 20th century.
What will happen if Vietnam wins the lawsuit but China still violates Vietnam’s sovereignty?
Nghia: If we win the case, it will be a landslide victory. If China continues its wrongful acts, it will be put at a disadvantage. Chinese people themselves will also disapprove of their leaders’ wrongful acts.
Vietnam’s sovereignty over the Hoang Sa (Paracel) and Truong Sa (Spratly) archipelagos is recognised internationally. However, China, a world power and a UN Security Council member, occupied territory of another country. How can you view China’s move?
In comparison with China, Vietnam is a small nation in terms of economic and defence potential.  Reality shows that big countries intimidate smaller countries in defiance of international law. Vietnam is one of those countries that has fallen victim to this unfair game.
However, the enforcement of the 1982 UNCLOS is considered a victory of small coastal countries, enabling them to enjoy equal rights in disputes with bigger countries.
This requires smaller countries to unite in their struggle and gives Vietnam the chance and possibility to win this dispute. It is undeniable that progressive mankind has a huge strength. By defying international law, domineering countries and their people will be under mounting pressure; they will be boycotted and criticised eventually.
How will Vietnam present its stance at the coming 14th Shangri-la Dialogue? What do you expect from this conference?
I want to make sure that we have justice and the law on our side and that China’s action is illegal. We have to compile convincing arguments internationally, especially in big powers like the US, Russia, and China, and smaller countries like the Philippines and some other ASEAN countries.
Out plight for justice should be frequent and constant. Shangri-la 14 will be a good opportunity for Vietnam to present its case.
Since China placed its oil rig inside Vietnam’s exclusive economic zone, Vietnamese leaders have expressed their view at many international forums. At the recent World Economic Forum on East Asia in Myanmar, Prime Minister Nguyen Tan Dung reiterated Vietnam’s consistent policy of settling all disputes through peaceful means. He also said Vietnam will do everything in its power to defend its sovereignty if its sacred sovereignty is violated.
Source: VOV/VNN
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