HCM City TV to discover South America

15:04' 07/06/2007 (GMT+7)

VietNamNet Bridge – HTV filmmakers will embark on their first 66-day journey ever throughout South America to collect materials for a large-scale documentary titled Amazon Chronicles. The film team will travel to 5 countries in the Amazon River valley including Brazil, Venezuela, Colombia, Peru and Bolivia. Through Amazon Chronicles, Vietnamese filmmakers want to show a panorama of life along the Amazon in the past and present, cultures that have disappeared or are still flourishing, as well as historical and cultural values and the environment of these 5 countries from a Vietnamese perspective. Before Amazon Chronicles, HTV has also carried another ambitious international travel and cultural project called Train Chronicles, in which for the first time, a team of Vietnamese filmmakers, traveled to 15 countries in Asia and Europe by train to film a series of reports for TV. Like in Train Chronicles, while the Amazon Chronicles film team is in South America, brief reports of 8 to 10 minutes will be sent through the Internet back to Vietnam to be broadcast at 9 pm from Monday to Thursday on HTV7 as of July 2. About 70 reports during the journey and a documentary of 40 20-minute episodes after the journey are expected to be broadcast. After Amazon Chronicles, HTV will continue to travel abroad for its Discovery Chanel-style documentaries including one on the island country of Vanuatu in July and another called Ganges Chronicles in November. (Source: Tuoi Tre)

Higher tax on mineral exports creates difficulties for enterprises

13:49' 07/06/2007 (GMT+7)

VietNamNet Bridge – Enterprises complain that their profit has been decreasing since the Decision No 67 on raising the tax rates on mineral exports came into effect. The decision, which was promulgated one year ago, set higher export tax rates on export minerals. For example, the tax rate on copper ore has been raised to 10% from 0%, while the rate on nickel ore rose to 5% from 0%. According to the Ministry of Finance’s Tax Policy Department, the imposition of higher tax rates aims to protect natural resources and avoid the bad impacts on the economy and the environment. Besides, the ministry aims to encourage investment in ore processing industries instead of exporting raw materials Nevertheless, the decision by the ministry has been facing opposition from foreign invested enterprises (FIEs). There are two problems in the Decision 67 that FIES have been complaining about. The Canadian Chamber of Commerce in Vietnam said that enterprises’ products now bear the double taxation as they have to pay export taxes in accordance with the Decision 67, and the natural resource tax in accordance with the Ordinance on Natural Resource Taxation The second problem is that the decision did not clarify the method to define the taxable value, and method of tax calculation. Therefore, even taxation agencies do now know how to tax the export mix of nickel, copper and cobalt, because they cannot define the percentage of nickel, copper and cobalt in the mix to impose taxes. FIEs said that taxation agencies should only calculate taxes after defining the exact ratio of every metal in the mix of metals. FIEs will export ores, and then foreign refineries will inform Vietnamese taxation agencies about the ratio of metals after the refinement, which will be referred by the agencies to calculate tax. FIEs’ representatives said that Vietnam should build up the mechanism on export tax refunds. For example, while exporting a consignment of ore, exporters will have to pay a temporarily defined tax sum. After foreign refineries inform about the ratio of collected metal, taxation agencies will know how much to tax ore exporters, and they will either to collect more taxes or make refunds to exporters. However, the suggestion has not been accepted by Vietnamese management authorities, and there has been no solution to the mineral taxation matter. (Source: Viet nam Net)

Investment funds hunting wooden furniture companies’ shares

18:23' 06/06/2007 (GMT+7)

VietNamNet Bridge – Investment funds are now eyeing wooden furniture companies’ shares since the wooden furniture processing industry proves to be the one which has seen the highest growth rate in the last few years. According to the Ministry of Trade, Vietnam-made wooden furniture products are present in 120 countries throughout the world. 28% of exports go to Europe, 24% to Japan, and 20% to the US. Tran Quoc Manh, Deputy Chairman of the HCM City Fine Arts and Wooden Furniture Processors’ Association, and Director of Sadaco, said that the industry had been witnessing the growth rate of 40-50% per annum in the last few years. Vietnamese companies can export products directly and not go through third parties. “It is the right time for investment funds to inject money in wooden furniture companies, which have a high growth rate and low risk,” Mr Manh said. Sadaco, for example, has signed a cooperation agreement with VinaCapital, while another fund is also seeking to buy Sadaco shares. In February 2007, Aureos decided to make a $3mil investment in Truong Thanh Wooden Furniture Industrial Company to become the biggest strategic shareholder. Truong Thanh later received a lot of other offers from both domestic and foreign funds, including VinaCapital, Indochina Capital and Bao Viet Securities. Truong Thanh had the total turnover of VND170bil 9$10.62mil) in 2005, and the figure rose to VND326bil ($20.37mil) in 2006. In the first quarter of 2007 alone, the turnover was VND173bil ($10.81mil). The Denmark-based Penm has also signed an agreement on strategic cooperation with the Duc Thanh Wooden Furniture Processing Company. The deal was inked just two days after the fund set up a representative office in HCM City. Prior to that, Duc Thanh had a foreign strategic shareholder, Mekong Enterprise Fund Ltd. The Thuan An Wooden Furniture Processing Company, which is going to list on the bourse in June, has reported that the company has signed an agreement on investment in the company with two foreign based funds. (Source: Viet Nam Net)

Sports and culture festival of ethnic minority people opens

08:35' 07/06/2007 (GMT+7)

The impromptu parade. VietNamNet Bridge - More than 350 artists and athletes representing tens of thousands of Ca Tu, Van Kieu, Ta Oi, Pa Hy ethnic minority groups have participated in a cultural and sporting festival for ethnic minorities in mountainous areas in Nam Dong district, Thua Thien Hue province. Prior to the opening, all the artists and athletes took part in a one kilometre parade. Though it was just an impromptu event, it left a fine impression among the locals. After the opening, people took part in traditional games such as tug of war, pole pulling, crossbow shooting and art performances. Also during the festival, the Ho Chi Minh Museum, the Revolutionary History Museum and the Hue Library organised an exhibition of objects and documents relating to President Ho Chi Minh and ethnic people in mountainous areas. The Hue Library also introduced 800 books and part of these was presented to Nam Dong people. (Source: Viet Nam Net)

Local firms lure talents with stocks

18:26' 06/06/2007 (GMT+7)

From the left: Luu Duc Khanh, Huynh Dai Thang, Han Ngoc Vu, and Nguyen Quoc Sy. VietNamNet Bridge – A high wage is no longer decisive in attracting qualified personnel, but stock ownership is. One day in mid 2006, Luu Duc Khanh, strategic manager of the Hong Kong and Shanghai Banking Corporation (HSBC) in HCM City, received a call from Hanoi: “Khanh, do you want to work for us?” After several months of thinking and some sleepless nights, Khanh decided to quit his job at HSBC to come to An Binh, a rural joint stock bank that had just been upgraded into an urban bank. Khanh is one of the people creating the opposite wave in the human resources market in which high-ranking personnel leave foreign firms to work for local companies under the influence of the bustling stock market of Vietnam. Foreign banks like HSBC, Citibank, Mizuho and some multinational companies have become unwilling training centres in the ‘stock fever’ of Vietnam. Many qualified personnel have left foreign firms. Headhunters said that foreign companies had everything to keep qualified employees, from high wages to active working environments and opportunities of promotion – but not stocks. Seeking the difference According to Luu Duc Khanh, going from HSBC to An Binh Bank is like going from sitting in a Mercedes running down a highway to being on a motorbike threading through a narrow road. However, with over 10 years of experience at HSBC, Khanh quickly understands what he should do to blow a new wind into An Binh in the position of General Director and a member of the bank’s management board. “I really don’t pay attention to my current wage. The thing that ties me and An Binh is the volume of stocks that I’m holding. That’s my commitment to the bank. Working for the bank is working for myself,” Khanh said. Nguyen Quoc Sy, former manager in charge of local companies of HSBC, had a more risky choice. His current office is a small room in an apartment block on Phung Khac Khoan street, District 1, HCM City, which is completely contrary to the luxurious building in HCM City’s heart where HSBC office is based. Sy is now Deputy General Director of the Western Rural Joint Stock Bank, which is based in Can Tho city. Sy and his colleagues are working at full capacity to prepare for the day their bank becomes an urban bank, issues shares to increase capital and expands its operations in HCM City. “Dinh Ngoc Son – General Director of the Western Rural Joint Stock Bank – is my veteran friend. He asked me to re-organise the structure, seek personnel, call for investment to develop the bank together, which I have not done before. It is a good opportunity for me to develop my ability, isn’t it?” said Sy. Also leaving HSBC after ten years working there, Huynh Dai Thang, customer relations manager of the enterprise finance department, has become director of an IT company. Thang originally was an IT expert who worked as the technical manager of HSBC. “I want to bring all of my knowledge of financial operations to build my own company. I’m now not a normal employee. With my capital contribution, the success of this company is my success as well. That’s the essential difference,” Thang said. HSBC has also lost a deputy director of its Hanoi branch. At first, this woman was hunted by the Saigon Securities Trading Company but then she changed her mind to develop her own business. What direction is the wind blowing? The opposite end of the high-class human resources market is being formed. VIB Bank has just hired a new general director, Han Ngoc Vu, who was previously director of the Hanoi Branch of Citibank. “I planned to work for a local bank several years ago. The development and professionalism of local banks is the foundation of my decision. I want to bring my experience from foreign banks to serve VIB Bank and I believe that I will have a favourable environment to entrust my devotion,” Vu said to the press. He said that local and foreign banking systems were now running quite smoothly but the challenges at his old and new positions are different and the scopes of work are different as well. According to human resources experts, the attractiveness of local companies is that they are ready to share their stocks to lure qualified personnel. More importantly, local firms give those personnel key positions which allow them to freely apply their creative ideas and visions, things that they can’t do in foreign firms. “Foreign companies are at high level of professionalism. The one who is in charge of a field will only focus on his field. Meanwhile, if he becomes a leader at a local firm, he will have a broad view, develop strategies and have the right to make decisions that influence the development of the firm. This challenge is a factor that attracts them,” said a banker. The banker also said that a business that wants to keep its talents must have three conditions in satisfactory order: income, working environment and promotion opportunity. The most important condition is that income must encourage employees, meaning income must be equal to labour, and stock proves its preeminence in this aspect. However, this kind of stock is not the everlasting gift. This type of stock is often not allowed to be transferred in under three years. If the owner quits his job before this time, he has to return the stock to the company. However, in some cases, stock can’t keep talents. A food processing firm on the stock market has said goodbye to its public relations manager. This man returned his stocks to work for a multinational group. Asked why he didn’t wait for several months more to have his full three years to own the shares, he said that opportunity wouldn’t wait for him. He said he is still young and he wants to experience a working environment with challenges and opportunities that are near to what he studied in Australia. How long will the opposite flow of brainpower exist? A human resources expert affirmed that it would continue but only for those who have worked for a long time in foreign firms and have hoarded enough experience and knowledge to take initiative to say goodbye. For young people, working for foreign firms is still their dream because they will have opportunities to develop a fast and keen working style. (Source: Viet Nam Net)

Quang Nam: Investors must pay security when registering investments

17:20' 06/06/2007 (GMT+7)

VietNamNet Bridge – Tran Minh Ca, Deputy Chairman of the Quang Nam People’s Committee, said that the province would not accept massive investment in the recently recognised national landscape – Cu Lao Cham (Cham islands) – and would pay appropriate attention to environmental protection. Cu Lao Cham recognised as national landscape Could you please tell us about the viewpoint of the provincial authorities in developing tourism on Cu Lao Cham? It is good news for Quang Nam that Cu Lao Cham is recognised as a national landscape. However, this will put a lot of pressure on the protection of the environment, and require more efforts to protect the invaluable natural resources that nature has awarded Quang Nam. Quang Nam authorities will be cautious about the development of the tourism industry on Cu Lao Cham. The biggest advantage of Cu Lao Cham that attracts tourists is the natural landscapes; therefore, there will be no big construction works there. Currently, in order to avoid bad impacts on the environment, we will try to limit the number of visitors on the islands. As far as I know, Quang Nam authorities have allocated several land plots on Cu Lao Cham to investors. How will the matter be settled? It is true that provincial authorities have accepted several investment projects on the islands, but the investors did not obey the regulations on environmental protection so the province has stopped licencing projects and allocating land. Now on the islands only the Cu Lao Cham Tourism and Trade Joint Stock Company is carrying out the project on building a wharf, which will help tourism boats moor more easily. You have said that the province will try to limit the number of visitors coming to Cu Lao Cham. Why is the province still allowing the wharf to be built? In the long term, a port will be very necessary to develop tourism. Currently, as there is not a specialised port, tourism boats still have to use fishing ports. Moreover, the port which is being built will also serve some residents on the islands. It is imperative to have good infrastructure to make Cu Lao Cham a real national landscape. Quang Nam authorities have revoked a lot of investment licences in tourism. What are the reasons for your decisions? We have revoked eight licences on tourism projects, and we are going revoke another 10 licences. There are two main reasons. First, investors have not carried out the projects though the projects were licenced a long time ago. Second, investors cannot wait any longer as the site clearance process has been prolonged. How will you deal with the revoked projects? They will be given to other investors. New investors will be responsible for paying the expenses the previous investors incurred. Quang Nam authorities will ask investors to pay security deposits when they register investments ($10,000/ha). This aims to prevent investors from appropriating land (in many cases, investors just make investment registrations to get land plots). What solutions will Quang Nam authorities apply to ensure harmonisation between accommodation development and heritage preservation? We will set strict requirements on investment projects. The construction and repair of houses in the ancient town must be approved by local authorities. Moreover, accommodation development will not be allowed in the ancient town, only in coastal areas. Accommodation projects must meet the standards for four-star accommodations at least, and cover an area of 5ha. The construction density of the projects must not be higher than 20%, while the buildings must not have more than three storeys. (Source: TBKTVN)

Hue traditional craft festival to pave new road

15:58' 06/06/2007 (GMT+7)

Building traditional Hue houses for exhibitions VietNamNet Bridge – On June 8, Hue City will open its 2007 Traditional Craft Festival, through which organisers hope to find new opportunities for Hue’s moribund handicraft and fine art industry. Besides parades during the opening and closing ceremonies, the festival will include other notable programmes such as a jewellery and Vietnam traditional dress exhibition organised by the Vietnam Fashion Design Institute on the evening of June 9, which aims to affirm the exquisite talents of artisans and goldsmiths. And from June 8-10, 12 traditional Hue wooden houses will be in place for the exhibition of works of silver and gold jewellery, copper casting and engraving by 200 artisans from 13 professional villages in 9 cities and provinces throughout the country. Like the first Hue professional village festival held in 2005, which introduced traditional embroidering and palm hat making, this year’s festival, according to Nguyen Duy Hien, Head of the Culture Department of the city, will not simply be a celebration of traditional crafts, artisans and villages. Through the Hue Traditional Craft Festival, which takes place every 2 years, alternating with the bigger Hue Festival, organisers hope to explore ways to revive and develop traditional craft villages which are very much on the verge of becoming obsolete. "Organisers hope that through meetings and exhibitions, and especially through access to antique and photo collections, handicraft and fine art producers in Thu Thien-Hue province will somehow find new directions for their profession,” said Nguyen Duy Hien, who is also a member of the festival organisation committee. “In the near future, they may think about producing old-style souvenir products, which tourists love. Yet, in Hue, this idea hasn’t been thought of though it is a common direction for Vietnam as well as many other countries. Hoi An, for instance, has followed this road and has been successful so far,” added Nguyen Duy Hien. (Source: Viet Nam Net)

MoT: Enterprises should not sign more rice export contracts

17:12' 06/06/2007 (GMT+7)

VietNamNet Bridge – Vietnamese rice exporters have signed contracts to export 3.5mil tonnes so far this year, and they have been advised not to sign more contracts. Major task: ensuring rice output Nguyen Dang Chi, Deputy Director of the Import-Export Department under the Ministry of Trade, said that Vietnam had exported 1.8mil tonnes of rice so far this year. With the current rate of delivery, by the end of June 2007, Vietnam will have exported 2.2mil tonnes of rice, while the Government previously decided that rice exports would be 4.5mil tonnes this year. In fact, the volume of export rice in the signed contracts has nearly reached the targeted level. The most important task now is to ensure smooth production to get stable output, and try to obtain high productivity to fulfill the export plan. Though rice exporters still have quotas for export, they should not sign more contracts at this moment, as the yield of the next crop remains uncertain. Paddy cultivation depends heavily on the weather. Meanwhile, the rice export price fluctuates and domestic prices now remain at high levels, equivalent to that of Thailand’s. This will make Vietnam’s rice less competitive. Enterprises are not being guided in signing contracts on rice exports for the fourth quarter at this moment but no one can know for sure about the rice price and output at that time. The Government is keeping cautious about rice exports; therefore, it will only consider adjusting the rice export goal in the third quarter of the year. Which prices? If halting signing export contracts, the rice price will decrease, which will badly affect farmers. What does MoT say about this? The paddy price in the north increased by 12% in the first five months of the year, while it rose by 22% in the south, which means an average increase of 18%. The price increases have brought about the profit of VNDF5,100bil to farmers. If noting that the production cost is VND1,450/kg, and farmers can sell paddy at VND2,750/kg right in the field, it is clear that farmers can make the profit at 80% of the production cost, a satisfactory result. The effectiveness of rice exports in the last few years proved to be not as high as expected. Should we maintain rice exports in the way like they have been carried out? The rice price in both the domestic and international markets will keep rising for many reasons. First, the area for paddy cultivation in Vietnam has been narrowed due to industrialisation and urbanisation. Second, many farmers in the north have given up growing paddy due to low profit. Third, the population increase results in higher demand for rice, while the supply remains unchanged. Fourth, changeable weather, calamities always affect cultivation, thus affecting food prices. The fifth reason is a completely new issue. In the world, people now can generate alcohol from maize and cassava which can be used for engines. Experts have forecast that a big volume of maize and cassava will be consumed to generate alcohol, which will impact global food supplies. It is estimated that maize and cassava prices will increase by 10% right in 2007. International food experts said at the conference in Thailand held on May 11-12 that the world’s price may increase by $45-50/tonne. It is estimated that 1bil people in the world will be ill-nourished, and Vietnam should think of its food safety. (Source: Viet Nam Net)