Business - Vietnam eager to improve business environment

Vietnam eager to improve business environment

11:35' 31/05/2007 (GMT+7)

VietNamNet Bridge - Vietnam has sent a clear message that it is determined to increase the attractiveness of the domestic investment environment in order to satiate the needs of foreign investors into the country. Addressing the Vietnam Business Forum 2007, which opened in Ha Noi on May 30, Minister of Planning and Investment Vo Hong Phuc said, “Vietnam has been hard at work in preparing conditions to welcome a new wave of foreign investment, including implementing its bilateral and multilateral commitments.” The minister told delegates in attendance that the country is highlighting areas such as the fine tuning of the market mechanism, reform in administrative procedures and financial and banking systems, developing human resources, infrastructure development and establishing needed auxiliary industries. According to a Ministry of Planning and Investment (MPI)’s report, the GDP growth rate in the past five months hovered close to 7.9 percent and was the highest recorded rate for the last several years. Over the period, 19,300 new businesses registered for licenses with a total invested capital of 134 trillion VND (8.4 billion USD), an year-on-year increase of 140 percent. Sin Foong Wong, Vietnam Director of the International Financial Organisation (IFC), said Vietnam has with the Enterprise Law and Investment Law shown its readiness to form an equal playground for all businesses. However, the IFC Vietnam leader, who co-chaired the forum, urged Vietnam to further improve its investment environment in order to promote its image on the world arena. The Vietnam Business Forum is an annual event within the Consultative Group Conference of donors to Vietnam framework and was organised by the MPI, IFC and World Bank. This year’s forum attracted the participation of hundreds of representatives from diplomatic and international organisations and Vietnamese and foreign businesses. It directs dialogue with the government on the investment environment, financial-banking services, the implementation of World Trade Organisation (WTO) commitments, the Enterprise Law and the Investment Law, sea ports, tourism, mining, tax and land use. (Source: VNA)

Life in Viet Nam

The builders of “pottery road”

15:02' 26/05/2007 (GMT+7)

Vietnamese and foreign artists are discussing plans at the Son Ha pottery enterprise. VietNamNet Bridge – Joel Bennett, lecturer at the US’ Santa Rosa Junior Art University in California, has come to Vietnam for the ‘pottery road’ project. The husband of painter Nguyen Thu Thuy has to bury his ‘passion’ – old cars – to serve his wife’s project. Arriving at Bat Trang pottery village these days, asking for the road to the pottery painting station for the Red River dike path, locals will immediately introduce the Son Ha pottery enterprise. At the enterprise, journalist-painter Nguyen Thu Thuy and her collaborators (sculptor Do Quoc Vi, a lecturer at the Industrial Art University and some members of the Hanoi Young Painters’ Club) are passionately creating designs for the first pottery paintings for the Red River dike road. American artist comes to Vietnam for the pottery road Among artists who are working in Bat Trang these days to prepare for the pottery road project is a US man whose clothes are always smeared with clay, like his Vietnamese colleagues. That’s Joel Bennett, a lecturer at Santa Rosa Junior Art University in California, who came to Bat Trang in early May to assist with the pottery road project. Invited to participate in this ambitious project, Bennett at first couldn’t imagine how the road would be decorated. But walking on the dike road, one side of which is the Red River and the other side, peaceful Hanoi city, with the eyes of an experienced pottery artist he was able to envision the wall. Bennett visited Bat Trang pottery village to see pottery products produced by traditional techniques and he couldn’t hide his love for the pottery items with the cobaltic colour of the village. Bennett is now very busy with his job at the pottery enterprise in Bat Trang and Thuy and her husband have to bring clothes and belongings to Bat Trang for Bennett. Joel Bennett Bennett has taken part in a series of pottery exhibitions named “Summer Meeting” in Vietnam. In 2005, Bennett, a Cuban sculptor and Vietnamese sculptor Do Quoc Vi participated in a stone sculpture camp in Viet Tri City, Phu Tho Province of Vietnam and organised a stone exhibition in Bat Trang Village. Bennett said that he loved Vietnam and respected President Ho Chi Minh. He was arrested for two days in 1969 when he demonstrated against the Vietnam War. In his first visit to Vietnam in 1992, Bennett paid a condolence visit to President Ho Chi Minh’s Mausoleum. The organisation of an exhibition on the pottery road project at the Vietnam Museum of Ethnology on the occasion of President Ho Chi Minh’s birthday (May 19) was also the idea of this artist. Bennet will design the first pottery painting of 2m long for the pottery road project. He suggests turning the project into an international one through inviting some foreign artists to take part in the project without coming to Vietnam. He said that he will call for his colleagues in other countries to send one or two pottery paintings to Vietnam. Each work will have the name of the author, the name of their country and the pottery material. It is hoped that the idea of Bennett will make the pottery road a special one with pottery paintings from various countries in the world. Bennett said that in the three years of implementing this project he would come to Vietnam very often to directly make pottery paintings with Vietnamese colleagues and make pottery paintings in the US as well and send them to Vietnam by sea. Busy on the ‘pottery road’ Every week painter Thuy has to go to Bat Trang pottery village 3-4 times to directly make pottery paintings. The weekend is for writing as a journalist and the remaining time is for designing patterns to make pottery paintings. While the author of the pottery road project is busy running from Hanoi to Bat Trang village, her husband – Nguyen Huy Cuong – is also busy with his wife’s project. Painter Thuy makes the sketch of the first pottery paintings. Cuong is a journalist like his wife. Though Cuong is not a member of the pottery road project, he is an efficient assistant to his wife in carrying out the project. Thuy and her husband are sketching the first pottery painting, which reflects the Dong Son civilisation. Their house is now full of pottery samples. Involved in this project, Thuy doesn’t have much time to do housework but her family understands her job and helps Thuy to have more time for the project. Since the project was just an idea till it was about to become reality, Cuong was always the one who took care of the capital for the project. He sold his antique 1949 Peugeot 203 to get money for his wife’s project. This car has stayed with Cuong and Thuy’s family for over ten years and it has been used in three films, including the US film named “The Quiet American”. However, this is not the first time Cuong has sold a car to help his wife. Previously he sold a Citroen Traction Avant manufactured in 1937. Cuong said that if needed, he would sell two other Mercedes to support his wife’s project. It is very sad for a collector of old cars like Cuong when he has to say goodbye to his cars but he is ready to “sacrifice” his hobby to contribute to a meaningful project that his wife and artists are performing. “When I help my wife implement this project, I understand that I’m contributing my small part to a job of great meaning,” Cuong said. Viet Nam Net

National Assembly introduces new staff

National Assembly introduces new staff

09:29' 30/05/2007 (GMT+7)

VietNamNet Bridge - 493 deputies from all walks of life were elected to the 12 th National Assembly following the country's May 20 polls, said Elections Council Secretary General Bui Ngoc Thanh. Thanh, who is also a member of the Standing Committee of the National Assembly, announced the poll’s result at a press briefing on May 29, stating that tertiary educated deputies make up the backbone of the new legislature as virtually all hold either graduate or post graduate degrees (62.68 percent and 33.27 percent, respectively). Other statistics of note included the oldest deputy at 80 years-old and the youngest aged 24 years-old. Women made up 25.76 percent of the law making body and ethnic minorities took 87 seats or 17.65 percent of the Assembly. “Non-Party members won 43 seats, or 8.72 percent of the NA,” said the elections council leader. Thanh also said that the new National Assembly is slated to convene its first meeting on July 19 or 20 and focus on forming a new cabinet. “The new legislative staff will also review the progress made in implementing socio-economic targets in the first half of the year to adjust the targets for the entire 2007 year,” said the senior legislator. The recent elections were witness to high transparency and democracy, Thanh concluded.

Nha Trang Bay not Khanh Hoa’s asset

Nha Trang Bay not Khanh Hoa’s asset

Deputy Minister Tran Chien Thang. VietNamNet Bridge – Deputy Minister of Culture and Information Tran Chien Thang said that Khanh Hoa province was not a kingdom and Nha Trang Bay was not its asset. A successful social-economic model never accepts development at any cost. What do you think about Khanh Hoa wanting to remove Nha Trang Bay from the list of national landscapes? This is perhaps the only case in the world. The whole world is trying to preserve and have their landscapes and heritage sites recognised by reputed national and international organisations and to keep the recognitions. Only Khanh Hoa province doesn’t want that. I haven’t directly heard about it from any official of Khanh Hoa but I think when they made that statement they forgot that their province was part of the nation, not a kingdom, and Nha Trang Bay is not Khanh Hoa’s asset, but the asset of the nation, even of mankind. Many local officials and investors have complained that it is very difficult to do business in areas where there are many national relics, let alone development. What do you think about it? Why don’t they feel lucky that Vietnam has many relics? We have had many landscapes and valuable heritages but they have been heavily damaged because they have not been preserved properly for a long time. It is time to preserve the remaining things. The contradiction between preservation and development is a problem of every country but experiences from the most successful social-economic models show that they never accept development at any cost. Developing to let the environment be destroyed and to bury traditional values – so what would development mean? If Khanh Hoa officially asks for the withdrawal of Nha Trang Bay from the list of national landscapes, what will the ministry do? As I’ve said that there is no precedent for this case and Nha Trang Bay is not the asset of Khanh Hoa, the ministry will make public all information about the case and hold a referendum. But I still hope that the ministry will not have to do that job. Paul Stoll, General Director of the Celadon International Tourism Service Consulting Company: Khanh Hoa should not think of immediate benefit: I think Khanh Hoa’s administration should not think of immediate benefit to neglect the potential that not all localities own. During the development process, it should know what it wants to achieve in the future. If selecting a long-term development plan, it can’t immediately gain profit. Economic success can’t be measured by money, but the cleanness of the living environment and the happier lives of the people. What is the value of economic development if the environment becomes worse? If only focusing on economic development, would the environment and scenery of Nha Trang Bay be better than now? (Source: Tuoi Tre)

News - Manpower exports need trademark

VietNamNet Bridge – Along with expanding the market, it’s time for Vietnam to think of building a trademark and prestige for labour exports through raising labour quality and tightening management.

From raising awareness of labourers…

According to the Ministry of Labour, War Invalids and Social Affairs (MoLISA), last year Vietnam sent more than 78,000 workers abroad, exceeding the annual goal, including 37,950 to Malaysia and 14,120 to Taiwan. This year the country aims to send 80,000 workers abroad.

However, labour quality has become an urgent issue as importing manpower countries are raising standards on imported labour, said Nguyen Xuan Vui, Director of the Airserco Labour Export Centre.

According to Mr Vui, Vietnamese workers have basically met requirements of foreign employers but in some markets, they are no longer ‘favoured’.

In Malaysia, local employers previously praised Vietnamese workers for their intelligence, work ethic, and agility but now they often complain of male Vietnamese workers being undisciplined and many companies refuse to hire Vietnamese labourers.

Vietnam currently accounts for a large part of the Middle Eastern market for manpower with more than 3,000 workers in the United Arab Emirates and 2,000 in Qatar. The Middle East is considered a market with great potential for Vietnamese labour, especially Qatar with many favourable conditions for Vietnamese workers.

However, According to Tran Luc, Director of the Labour Export, Trade and Tourism JS Company, Vietnamese workers’ lack of discipline could lead to the failure of Vietnam in this market since countries in the Middle East are Muslim nations with strict rules.

Deputy Minister of Labour, War Invalids and Social Affairs Nguyen Thanh Hoa said that this year the ministry would focus on manpower training for exports and the ministry was considering training under the requirements of foreign partners.

… to managing Vietnamese workers abroad

The MoLISA reported that there were 50 companies exporting manpower to the Middle East, but only three of them had representative offices in this region. This says that manpower export companies are working in the style of “bringing their children to leave at the market”. They only collect fees and send labourers abroad; they don’t bear any responsibility after that.

It is the same for other markets, which leads to problems associated with Vietnamese workers abroad. Without being ‘managed’, many workers live and work in an unorganised manner and are expelled and those cases are not seen to by any Vietnamese representative agency.

Deputy Minister Hoa said that the government’s labour export scheme to 2015 was being implemented, under which labour exporters would be strictly controlled.

The MoLISA has recently asked labour exporters to open representative offices in the markets where they export over 100 workers. Exporters which send less than 100 workers can cooperate with others to open joint representative offices to manage Vietnamese workers abroad.

Deputy Minister Hoa also said that the ministry would soon establish the Overseas Labour Management Board in Dubai. The ministry’s goal is to have such boards in all countries where there are Vietnamese workers.

Viet Nam Net

News - VIS acted lawfully, but action not to be encouraged

VietNamNet Bridge – The fact that VIS ordered a Chinese steel mill to make steel under the VIS trademark does not violate the law, but this should not be encouraged, the Prime Minister has concluded.

Does VIS violate the laws?

The Government’s office on May 29 released dispatch No 2909, announcing the Prime Minister’s conclusion on the VIS case, responding to the appeal of the Vietnam Steel Association (VSA) about the case.

The Prime Minister said that VIS’s move did not violate the law. However, in the current context, when the steel supply has exceeded the demand, the move has had bad impacts on local production. The Government does not encourage enterprises to follow VIS’s move.

The conclusion by the Prime Minister has put an end to the prolonged dispute on whether VIS violated the law. VIS’s move has been facing strong opposition from local steel producers, who said that the move would kill local production. If all steel producers ordered foreign steel mills to make steel under their trademarks there would be no more steel producers in Vietnam.

Before the Prime Minister gave the final conclusion about the case, the Ministry of Trade and the National Office of Intellectual Property (NOIP) had expressed their viewpoints that VIS’s move was legal. However, VSA, which represents many domestically owned and foreign invested enterprises, did not accept the ministries’ viewpoints, and decided to lodge an appeal directly with the Prime Minister. VSA’s members said that if VIS’s move was tolerated, no investor would inject money in steel projects any more.

The Prime Minister has asked the Ministries of Trade and Finance to consider adjusting taxes on steel in case the overly high imports caused bad influences on local production. The two ministries have also been asked to consider measures to prevent steel dumping, which may affect local production, and prevent price escalation, which is unbeneficial to customers.

The Prime Minister has asked the Ministry of Science and Technologies to instruct the Vietnam Directorate for Standards and Quality (Stameq) to keep strict control over imported steel to ensure the quality of imports.

The General Department of Customs (GDC) has to examine the quality of steel imports at border gates. As for the import of steel which bears Vietnamese trademarks but is produced in other countries, importers will have to show a certificate of product quality granted by competent agencies of these countries.

The Ministry of Trade will be responsible for inspecting the labeling of imported products before they are circulated on the market

News - Only 20% of Vietnam’s population own mobile phones

VietNamNet Bridge – The Petroleum Services and Tourism Company (PetroSetco) on May 28 signed a framework contract with Nokia to become its official distributor in Vietnam.

PetroSetco Director Nguyen Huu Thanh said that the company would develop a professional mobile phone distribution network covering both rural and urban areas before Vietnam opened its distribution market in 2009 under its WTO commitments.

According to Mauro Montanaro, Business Manager of Nokia in Asia-Pacific, Vietnam is one of the markets with the greatest potential for Nokia in Southeast Asia.

“Mobile phone users account for around 20% of Vietnam’s population only compared to over 50% in other Southeast Asian countries like Indonesia and the Philippines. In Singapore, this ratio is even higher than its population. So up to 80% of the market has not been exploited yet,” he said.

To become Nokia’s partner, PetroSetco has established a subsidiary, PV Telecom, to distribute Nokia products. The firm aims to cover the markets of Hanoi, HCM City and rural areas. Besides Hanoi and HCM City, PV Telecom has opened branches in Hai Phong, Da Nang, Buon Ma Thuot, Nha Trang and Can Tho.

The mobile phone distribution market has long been ruled by big companies. With the participation of PV Telecom, this market is forecast to be much more fiercely competitive.

Viet Nam Net

Travel - Da Nang-Hoi An attract investment

VietNamNet Bridge – Foreign investors are injecting a lot of money in projects in coastal areas from Da Nang to Hoi An which promise to be lucrative investment deals.

From resorts, golf courses…

Hoi An Royal Bay project

VinaCapital and the Sai Thanh International Travel and Investment Company will cooperate to initiate VinaCapital’s plan to establish VinaCapital Hoi An Company Ltd, which will build Hoi An Royal Bay resort with the investment capital of $16mil in Dien Ban district in Quang Nam province. The resort will cover an area of 7.3 ha, which will include a swimming pool, restaurants and clubs.

However, Hoi An Royal Bay is just a small project of VinaCapital in the Da Nang-Hoi An coastal area. The group is planning to invest $150mil in a resort project which includes a five-star 350-room hotel, 15-ha area of villas and 16-hole golf course on Non Nuoc beach. Moreover, it is also planning to inject $200mill in a five-star hotel, a four-star hotel, 1,000 apartments, international school and a shopping centre on the Son Tra peninsula.

Meanwhile, Kingdom Hotel Investments belonging to Saudi Arabia’s Prince Alwaleed Bin Talal Abdulaziz Alsaud has brought back the licenced project on a 15 ha area in front of Ngu Hanh Son mountain. The group plans to spend $65mil on building a 450-room hotel (150 VIP rooms), 15 villas (600 sq m for each), international convention centre, luxury spa area and tennis court.

The 20 ha land plot adjacent to the 15-ha plot has been allocated to Indochina Capital. The investor will inject $80mil to build a sea tourism complex, comprising 250 five-star hotel rooms, 150 luxury apartments, 40 villas and many other entertainment facilities. The project is expected to be kicked off at the end of 2007 and become operational in mid 2009.

On the bank of the Han River will arise Indochina Riverside Towers. In addition to 95 high-grade apartments and a 10-storey office building, there will be modern shopping centre on an area of 6,564 sq m. The project is designed by Shanghai-based Benwood Studio and Hong Kong-based Gravity Partnership

Now Indochina Land, belonging to Indochina Capital, is promoting a project on a yacht wharf and a trade-service area on Son Tra peninsula which will serve international yacht tournaments.

Prior to that, the group decided to invest $50mil in The Nam Hai resort. On March 23, Indochina Capital got a licence to build and develop an 18-hole golf course in Dien Ban district.

At the same time, the Quang Nam People’s Committee granted a licence to Britain’s Qudos Hoi An Company Ltd, which will run the high-grade ecological tourism complex, Qudos Hoi An.

… to “Crescent Moon” new urban area

The investor of “Crescent Moon”, Da Phuoc new urban area, is a famous name, Yamasaki Company, which designed the twin towers of the Trade Centre in New York, the 40-storey bank tower in Seattle in the US, and many other well-known works in Madrid, Seoul, Dubai.

Yamasaki’s partner in the project are Jina, which is well known for new urban area designing, and now is programming the new capital of the RoK, Orange Engineering, specialising in golf courses, which built a famous golf course in the RoK, one of the 100 best golf courses in the world, and Handong E&C, specialising in infrastructure items.

Tae Sun Hong, the project chief, said that 30 designs were made before the official one was selected.

What will Da Phuoc be in Da Nang? This will be an urban area, trade centre and resort complex. “We want to build a symbolic work, like the Sydney Opera House in Australia, while creating an image of an urban area-golf course that can be seen by satellite,” said Mr Hong.

The complex will have the image of a crescent moon. According to Chinese geomancy, the crescent moon symbolises development: on its way to becoming a round moon.

“Da Phuoc will be an urban area of dynamism, dreams and romance,” he said.

Viet Nam Net

Education - First day of graduation exam goes smoothly

VietNamNet Bridge – The first test of the 2007 high school graduation exam has been carried out with security and order and without any serious problem, according to the Ministry of Education and Training.

This morning, May 30, about one million high school students nationwide took the literature test, the first test of the 6-subject high school graduation exam, which education officials are closely monitoring to root out cheating.

Minister of Education and Training Nguyen Thien Nhan personally inspected exam activities at Phung Khac Khoan High School in the northern province of Ha Tay, where last year occurred the phenomenon of throwing test questions and answers in and out of testing rooms during the graduation exam.

This year, however, security at Phung Khac Khoan High School in particular and at other high schools throughout the country in general is being rigorously strengthened.

At the school, for instance, local policemen are being stationed at 4 corners of the school to prevent people from coming near testing rooms; or at Thanh Oai B High School, well-equipped security forces were present in front of the school early in the morning to ensure order despite heavy rain.

And in Hanoi, the 2007 exam is also being carried out in a more serious and effective manner than in previous exams. Students have often brought materials for cheating and left schoolyards white with materials before and after tests.

Proctors, however, may be perplexed since this is the first time the high school graduation exam has been conducted in a professional way resembling what is done at the university entrance exam. At Yen Vien High School in Hanoi, for example, some proctors forgot certain procedures before and after tests.

As for the literature test itself, it is considered to follow closely the curricula though students had very different opinions after taking the test and the fact that the scores for the short-answer and essay sections were the same (5-5) took many by surprise, since the essay question has always carried greater weight.

Viet Nam Net

In-game advertisement: local companies indifferent

VietNamNet Bridge – A recent survey by the US Advertisement Association showed that 90% of US companies said that they would spend money on in-game advertisement (ad pieces placed on video games and virtual forums). Meanwhile, the new type of advertisement has not drawn much attention from Vietnamese enterprises.

Everything begins with Casual Game

The game business circle said that in-game advertisement in Vietnam first appeared on some MMORPG (Massive Multiplayer Online Role Playing Game), but did not draw attention. Only at the end of 2006, when Samsung and VTC signed an advertisement contract worth $200,000 on placing advertisements on Casual Game (a simple entertainment game), did the in-game advertisement market begin to become bustling.

Game distributors and the business circle have jumped on the bandwagon, and many kinds of Casual Game have been imported so far this year. These include Super Dancer Online, a ‘sister’ game with Audition provided by VTC Game and Netgame Asia; Boom by VinaGame, Extreme Soccer by Cyber World. It is said that FPT (the Corporation for Financing and Promoting Technologies) will import three games, including simple ones, this year.

Quang Anh, a staff from VDC Net2E, said that the simple Casual Game proves to be an ideal environment for advertisement. Meanwhile, several MMORPG are not suitable for the advertisement of modern trademarks. That explains why the in-game advertisement on MMORPG could not develop.

“As for ‘Extreme Soccer’, we can place ads by showing logos, and products’ trademarks on the standby screen, playing field, or banners around the field, or player’s uniforms,” Quang Huy, Marketing Director of Cyber World, said.

Local companies not only import games for domestic advertisement, they now think of producing games themselves, by the order of local enterprises.

Local companies still hesitant

“The biggest problem for us is to persuade local enterprises to choose in-game advertisement. In fact, local enterprises keep hesitant when placing in-game ads as this type of ad proves to be unfamiliar,” said Tra My, Head of the Game Flash project on socvui.com, said.

Socvui has got contracts on producing games and advertising for Pepsi, Coca-Cola, and Honda, according to Ms My. “The world’s market has been 20-30 years in advance of us, therefore foreign companies are familiar to in-game advertisement,” said Ms My, explaining why Socvui’s clients were foreigners.

Not only socvui, other well-known websites like ongame.com.vn (by VDC Net2E) or trochoiviet.com.vn also have not seen the participation of local companies. According to VDC Net2E, Vietnam does not have good skills in making games for advertisement; therefore, in-game advertisement has not attracted clients.

Yankee Group has estimated that the in-game market will see strong growth. In-game ads brought $56mil in turnover in 2005. The figure rose to $100mil in 2006 and it is expected to bring $732mil by 2010. However, AdWeek estimates that the total turnover will be $2bil by 2010.

Tran Manh Long, representative of the Vietnam Advertisement Association, said that in order to pave the way for the in-game ad industry, the first thing that needed to be done was to build up a perfect legal framework for the online games market. The overlapping in concepts, regulations and procedures in legal documents have led to the underdevelopment of the market.

If game producers cannot make products attractive enough for gamers, local players will only play foreign made products. If so, the local game production will lose the home market to foreigners, analysts said.

Nguyen Nga - Viet Nam Net