UNHCR looks at Viet Nam’s ethnic minority policy

09:43' 08/06/2007 (GMT+7)

Photo; amateras.com VietNamNet Bridge - A representative of the United Nations High Commissioner for Refugees (UNHCR) has said that Vietnam is making progress in its work relating to the care and protection of ethnic minority groups. Hasim Utkan made the remark at his working session with Lu Ngoc Cu, Vice Secretary of the provincial Party Committee and Chairman of the People’s Committee of Central Highlands Dak Lak province on June 7. The UNHCR representative has just completed a tour of several hamlets in Dak Lak's Ea H’leo and Ea Sup districts, which are inhabited by minority groups and people who had illegally immigrated and then returned home. Utkan said he was pleased with the condition of the returnees, who seemed to be living without discrimination and were receiving aid from local authorities to improve their living conditions. The UNHCR representative also spoke of his visit to the Dak Lak Vocational Training School for Ethnic Youth. The school is a large-scale training establishment that has a roll of over 2,000 young people from 31 ethnic groups and provides training in trades such as information technology, embroidery, carpentry, art and motor repairs The UNHCR official went on to suggest that the province should introduce the school to the international community as an example of what is being accomplished throughout the country. He also suggested the local authorities to pay more attention to education for ethnic minority people. (Source: VNA)

Central coastal Binh Thuan steps up for tourism

10:08' 08/06/2007 (GMT+7)

Photo: unep.org VietNamNet Bridge - The central coastal province of Binh Thuan is looking to stamp itself as a tourism Mecca on the back of the breathtaking natural beauty of the area. Provincial authorities are touting the new strategy as a cornerstone of economic development in a region where sun, sand and surf have attracted more than 60 resorts to its coconut palm lined coastline. Coco Beach Resort was the first to be built in 1994. Since then beach hotels in the area have mushroomed to the point that nearly 70 percent of the country's seaside resorts are now found in Binh Thuan. It is not all sun and sea that has tourists flocking enmasse to the province however. Eco-tourism has also witnessed massive growth over the last decade. Tours to hot springs, forests, adventure tourism and the exploration of Binh Thuan's diverse culture that is home to over 30 ethnic minority groups have all been in high demand. Director of the provincial tourism sector, Ngo Minh Chinh, reported that local and foreign businesses have invested nearly 11 trillion VND (687.5 million USD) into the hospitality sector, which has been driving the industry's average revenues up by 31 percent a year. Keen to cash in on the promise of more, provincial authorities have pledged to build recreation centres, super markets, restaurants and entertainment complexes at the provincial centre to provide visitors with a greater array of products and services from which to choose from. In 2006, the province welcomed close to 1.6 million holidaymakers, including 150,000 foreigners. In the first quarter of this year alone, the provincial tourism sector received 500,000 tourists out of whom, 67,000 were foreign visitors. (Source: VNA)

Worries over investment costs in Vietnam

18:24' 06/06/2007 (GMT+7)

VietNamNet Bridge – Compared to 2005, monthly wages of Vietnamese workers and engineers in foreign-invested companies in 2006 increased by only 16% and 25%, respectively, but they were still competitive against the average of the region, 28% and 11%. The transport fee to Japan’s Yokohama Port fell remarkably against the average of the region, a reduction of around 13% in 2006 compared to 2005. The monthly wage of medium-level managers rose very highly, 40% more than 2005 while it was 7% on average in the region. The average office leasing fee was $34.7/sq.m/month, only lower than Singapore. Moreover, HCM City is considered one of the most expensive cities in Southeast Asia based on total expenditures. This is the result of a survey by the Japan External Trade Organisation (JETRO) conducted in 30 big cities of Asia in late 2006. JETRO’s expert K. Ishwata warned at the Vietnam Enterprise Forum that Vietnam would gradually lose its competitiveness in investment costs if the country couldn’t control the stability and correlation between prices and quality of services. “The control not only comes from policies but from the operations of enterprises providing services in Vietnam. Therefore, competition among service providers needs to be further strengthened,” he said. Mr K. Ishwata also said that other kinds of expenses like telecom, power, tariffs, and sub-expenditures in Vietnam were still stable compared to those of the region. In particular, the change of corporate income tax in Vietnam to make it equal to the average of the region has been highly applauded by investors. Actually, calculable investment costs in Vietnam are still considered low but business-related problems that create costs are unknown to foreign investors. In JETRO’s survey, besides inadequate developed infrastructure facilities, investors still complain about troublesome administrative formalities, unstable and unclear policies, underdeveloped system of economic laws and management and application of regulations on arbitration. Truong Van Doan, Deputy Minister of Planning and Investment, said that Vietnam was still weak at popularising its information about investment policies and rules. When foreign investors meet with Ministry of Planning and Investment officials they often ask about details of regulations that they could easily get from websites and their embassies. The slow development of supporting industries also causes difficulties for investors in seeking sources of supply of component parts and materials on the spot. Only 23.6% of Japanese investors in Vietnam can rely on the local supply of component parts compared to the average of 40% in the region, JETRO’s survey reveals. Japanese investors continue to praise Vietnam’s political and social stability and its competitive production costs in comparison with those of China. Japanese investors in ASEAN said that labour and production costs in some fields like electronics, electrics, of Vietnam were cheaper than those of China. 100% of producers in the metal production area agreed with this. Similarly, in a recent survey of the Korean Chamber of Commerce and Industry in Vietnam, most Korean investors said that they came to Vietnam for its attractive labour force, both trained and untrained. Lee Ku Taek, Chief Executive Officer of Korea’s Posco group, said that Posco Vietnam’s contingent of qualified Vietnamese employees who were able to assume major tasks had helped Posco save expenditures since it didn’t have to use Korean experts. This is one of the reasons that Korean investors highly appreciate Vietnam’s general competitiveness compared to other Southeast Asian countries. (Source: VNNet)

Vietnam to build more thermopower plants

07:49' 08/06/2007 (GMT+7)

VietNamNet Bridge – Water, “white coal”, is being exhausted, while the demand for electricity is growing alongside the national economy. Therefore, building thermopower plants, which have big advantages (low installation costs, short construction times) will be top priority. By the end of 2006, the total capacity of power sources had reached 12,270 MW, 57% of which (6,586 MW) came from thermopower plants. Besides the expanded power plants belonging to the Electricity of Vietnam (EVN), including Pha Lai, Uong Bi, Ninh Binh, which help raise the capacity from 645 MW to 1,550 MW, Vietnam also has electricity sources from foreign invested plants like Cao Ngan (100MW), Na Duong (110 MW), Formosa (150 MW). Gas-run thermopower plants in the south, including Ba Ria (389 MW), Phu My (4,014 MW), and Ca Mau (480 MW), have also been put into operation. It is estimated that the structure of power sources in Vietnam will see big changes after 2010, with the focus to be on thermopower development. A series of big thermopower plants will open, including ones in Quang Ninh (1,200MW), Hai Phong (1,200MW), Vung Ang (600 MW), O Mon (600 MW), Ca Mau (1,400MW), Nhon Trach (450 MW), Nghi Son (1,200 MW), Mong Duong (2,200MW) and others. According to the power development strategy for 2006-2015, the total installation capacity of power sources will be 15,497 MW by 2011, and 27,261-27,811 MW by 2015. How to develop thermopower plants effectively? While affirming the importance of focusing on thermopower development, experts said that solutions should be found to tackle the disadvantages of this source of power. The biggest disadvantages of thermopower plants are high regular expenses, the impact on the environment, and limited sources of materials (coal, oil and gas). The current capacity of power generating units of coal-run thermopower plants is 300 MW at maximum. In the future, Vietnam will have to use modern technologies for coal-run plants, which ensure high productivity and acceptable investment capital. Moreover, the plants should have a high capacity of power generating units (300, 600, 1,000 MW). The gas-run power sources will only use mixed turbine engines with high capacity (150-250 MW). (Source: VNN)

Exploring the forest and relaxing at the sea

14:21' 07/06/2007 (GMT+7)

VietNamNet Bridge – HCMC-based Ben Thanh Tourist is offering a four-day tour named “Forest and Sea combination” to give visitors time to explore the customs of ethnic people, take in the primeval forests in the highlands region and relax on a beautiful beach. Tourists in the Orchid Stream Island in the coastal city of Nha Trang. The tour, which starts in HCMC, takes tourists by car to the mystical region of Daklak in the central highlands and to the coastal city of Nha Trang, the land of sunshine, white sand and blue ocean. During the two days in Buon Ma Thuot, the capital town of Daklak Province, tourists will take trips through the primeval forest, ride on elephants along the Lak river to view the landscape of the village and visit some communes, such as Jun Commune, a typical commune of M’Nong people, in Ako Dhong village. The elephant ride around Lak lake is very popular among adventurous travelers, although those who are less daring may feel uneasy being so high on the back of a large elephant. A one-night home stay in the long-houses of Don Village is an option on the tour. Guests can eat, play traditional musical instruments like gong, or sing with ethnic people. Most of the programs are designed to give visitors a chance to learn about the daily life of ethnic people. Not far from Buon Ma Thuot, on the way to Yok Don National Park, are the Dray Sap Falls, the most impressive waterfalls on the Serepok River. The area around the waterfall is covered with primitive forests, through which runs a small path leading to the falls. Even in scorching hot weather the water here will be very cold. This is a good place for organizing some team building activities, playing games, or just sitting on the big tree roots to enjoy the sights. After two days exploring the secrets of nature in the central highlands, tourists will go to the coastal city of Nha Trang, which is well-known for its beaches, islands, aquarium, sea sport, and mineral hot mud baths. Tri Nguyen Aquarium looks like an old ship and is home to live corals of many different colors and shapes, and thousands of rare and precious fish that live in this mysterious world. Several kinds of water-sports are available in Nha Trang, and tour groups may request excursions to other attractions in the coastal city, such as the Orchid Stream Island. (Source: SGT)

Vodafone: “big opportunities come from equitisation

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13:22' 07/06/2007 (GMT+7)

VietNamNet Bridge – By opening its first representative office in Vietnam on June 6, 2007, Vodafone, the world largest mobile phone network operator, has committed to a long-term investment in Vietnam. Warren Finegold, Vodafone’s Chief Executive of Global Business Development, said that there are many investment opportunities in Vietnam, especially when the equitisation process of mobile phone networks is clearer. What opportunities for Vodafone do you see in that equitisation process? Our goal is to become one of the strategic investors of mobile information companies. And when becoming a strategic investor, we will benefit Vietnam’s mobile information operators. What are the benefits that Vodafone will bring to Vietnam? Vodafone is the world’s largest mobile phone network operator with significant operations in newly emerging markets. Along with large investment, Vodafone can bring experience in working with state shareholders in many mobile information joint ventures of Vodafone in Egypt, China, Kenya and South Africa. Vodafone can bring international products and services to Vietnam as well as its sole services for individual markets as what we have performed in the world. Vodafone always has its way of accession and respects new markets: we are a good partner and we are always sensitive to the native culture. How is the Vietnamese market appraised in Vodafone’s overseas expansion and development strategy at present? Vodafone previously only focused on Western Europe but we now reach to many other markets. Vietnam has two factors to attract foreign investors. Firstly, the growth potential of the Vietnamese economy is very large. Secondly, we see the potential for developing the mobile information market. Vietnam is one of several markets which has a big population (84 million) and low percentage of mobile phone use (10.5% of the population in 2005), and high potential for development (28.6% of the population is young). Vietnam’s population and the potential to develop the mobile information market in the future has made Vietnam an important country for Vodafone. How much will Vodafone invest in Vietnamese companies? It is a little bit early now to talk about specific numbers. We have just opened our representative office in Vietnam. However, Vodafone has a strong financial potential and is able to invest in Vietnam. Vodafone’s tradition is investing in national leading mobile information companies in the countries that we will invest in so Vodafone’s policy is investing in companies at the first, the second and third position at the most. Vietnam is part of the Asia – Pacific region and Vodafone has established its strong presence through the ownership of the Hutch Assar network in India, stocks at the China Mobile company, and through its branches in Australia, Fiji and New Zealand. As Vodafone is seeking its direct presence in Asia, the equitisation programme in Vietnam is the way of accession that we want to learn to invest in this country. (Source: VNN)

Porsche to enter Vietnam

17:26' 07/06/2007 (GMT+7)

VietNamNet Bridge – German sports car manufacturer Porsche has decided to select HCM City as the place to enter Vietnam. After surveying the market, Porsche assigned PSC Prestige Sports Car Company Ltd to act as the distributor of its products in Vietnam. A member of the project said that the model in which the manufacturer and distributor put high hopes was the Cayenne sports utility model. Other models like Cayman and Boxter are also hoped will become favourites. Porsche will not only open a showroom to sell its products like other manufacturers, but will set up the Porsche Centre, which will function as a sales agent, repair service provider, and provide spare parts which meet Porsche’s standards worldwide. A source said that the Porsche Centre had got a contract to lease land for 13 years, and it might be launched by the end of this year in district 7 in HCM City. Porsche was established in 1931. It is now the most successful manufacturer of luxury cars. In 2006, Porsche sold 11,910 cars, gaining the turnover of $7,273bil. Porsche cannot sell many cars, but it has a very high profit level as the ratio of faulty products which require recall is very low. It does not have factories abroad. A survey conducted by the Luxury Institute in 2006 showed that rich people like Porsche’s cars most thanks to their attractiveness and energetic looks. It is interesting to note that Porsche can satisfy different classes in society, while Maybach only targets old people, Rolls Royce targets stately persons, and BMW’s main clients are youth. (Source: VNE)