Climbing tours of Fansipan Mountain to be launched

11:06' 11/06/2007 (GMT+7)

VietNamNet Bridge - The People’s Committee of Lao Cai is surveying Fansipan Mountain in order to develop two climbing tours to the “Roof of Indochina”. Departing from the Tram Ton mountain pass, the first tour will follow a 20-km route and will be intended for people of average health and ability. Departing from the foot of Cat Cat Mountain, the second route, at 14 km, will require both high levels of physical fitness and endurance and a willingness to take risks. Provincial leaders will support the building of rest stops and the improvement of roads for climbers. Local authorities have also tried their best to protect the natural environment there and in Hoang Lien national park. Fansipan Mountain is located 9km south-west of the town of Sapa in the Hoang Lien Mountain Range. At a height of 3,143 meters, Fansipan has been called "the Roof of Indochina". Regarded as one of the few genuine eco-tourist facilities in Viet Nam, the area boasts some 2,000 plant varieties and 327 species of animals. (Source: SGGP, ND)

PM Dung calls for action to speed up capital disbursements

11:40' 11/06/2007 (GMT+7)

VietNamNet Bridge – Prime Minister Dan said yesterday he appreciated the country's efforts in reaching a gross domestic product growth rate of 8% during the first five months of the year. Construction on the Dung Quat Oil Refinery Plant is being sped up to ensure it is operational by February 2009. But Dung said many projects were progressing slowly because of shortcomings in management, especially complicated administrative procedures that have hindered investors. He presided over a conference to review the implementation of investment plans during the first half of the year and ways to implement plans for the last six months. Cumbersome mechanisms, disparate guidelines from ministries and regional governments, weak consultation regimes and slow site clearance all hampered investment, he said. The PM asked ministries and business leaders to find solutions to construction delays, especially for key projects. He asked the Ministry of Finance to review capital sources, State bonds and development aid to assure money for construction. He also asked the Ministry of Planning and Investment to work out mechanisms for investors and strengthen its management of basic construction projects. According to the ministry, total social spending in the first six months of this year rose to VND195tril, accounting for 43% of yearly targets and 38.4% of GDP. Of this figure, the State budget accounted for VND42.4tril and capital from credit sources was VND10.3tril. Record investment Vietnam posted a record, US$5.2bil in foreign investment during the first five months of this year, according to the Government's website. The country also recorded a growth rate of more than 30% in fields like capital investment, exports and tax collection. According to economists, the Government's decision to open 'sensitive' sectors, including seafood, garments and electronics import and export, to foreign investors helped drive the boom. More than 400 foreign investment projects have been licensed in the first half of this year, including several in poorer regions such as Thai Nguyen, Ha Giang, Cao Bang and Son La. During the first five months of 2007, foreigners also invested $2.1bil to build workshops and equip new facilities, an increase of 30% compared to the same period of last year. The Ministry of Planning and Investment is to ask the Prime Minister to issue an instruction on attracting foreign investment and issue a call for domestic investment capital for 2006-10. Oil and gas deadlines Dung has urged Technip, the general contractor of the Dung Quat Oil Refinery plant, to do everything possible to ensure the plant starts operation in February, 2009. The PM also instructed various ministries, agencies and contractors to implement various projects and ensure that the country's key oil and gas projects finish on time in Government Office Official Letter, No 2999/VNCP-DK. Technip needs to co-ordinate with the project management consultants to monitor closely the manufacture and installation of equipment for the oil refinery plant in accordance with the required standards, including the country of origin of the equipment. They should provide the design blueprints to the Vietnamese sub-contractors as soon as possible, so they can keep up with their deadlines. The winning contractors of packages 5A and 5B must discuss and co-ordinate their projects so that construction is completed with minimum inflation to their approved budget. The COMA contractor are to organise the bid for Engineering Procurement Construction Contract (EPC) No 7 as soon as possible, procure the necessary equipment as well as complete its contracts. Vietsovpetro contractor must complete the equipment installation as soon as possible at Ca Mau gas fired electricity and fertiliser project, so that it will begin generating electricity from December 2007. Finally the Prime Minister asked the Ministry of Labour, Invalids and Social Affairs to consider and approve a proposal to grant bonuses, equivalent to half a month salary, to employees working at the Dung Quat Oil Refinery Plant. (Source: Viet Nam News)

Vietnam’s 114 couples get ready for vows

23:17' 10/06/2007 (GMT+7)

Da Lat (photo: transitionsabroad.com) VietNamNet Bridge - The mass wedding of 114 couples to be held in the resort city of Da Lat in December will be entered in the Vietnam Records Book. Nguyen Van Binh, director of the Ho Chi Minh City-based media company New World, the organisers of the event titled “Happiness Itinerary,” said the company thought of 114 couples to mark the 114 th anniversary of Da Lat’s establishment. The newlyweds will take part in the annual Flower Festival parades and parties following their wedding at the city’s five-star Palace Hotel. The three-day wedding tour, departing from Ho Chi Minh City’s Cathedral Church in District 1, will cost each couple 310 USD. The wedding tour was first organised in 2004. (Source:VNA

Sea Festival 2007 opens in central province

23:35' 10/06/2007 (GMT+7)

Photo: VNE VietNamNet Bridge - Thousands of local people and visitors flocked to the Sea Festival 2007 opened in Nha Trang city, central Khanh Hoa province, on the evening of June 9. More than 500 artists entertained the audiences with special performances, showing the charm of Nha Trang’s sea as well as Khanh Hoa’s openness in the context of international integration. The Sea Festival 2007, the second of its kind hosted by Nha Trang city, introduces potential of Khanh Hoa’s sea-based economy and features of its land and people. The festival is part of the province’s efforts to attract more tourists. According to the organisers, seven national records are being displayed during the week-long festival, including a salangane-shaped statue made of 73,000 pieces of coconut shells. The salangane statue, 4.5m in length, 2.5 m in height and weighing 600kg, represents the desires for peace, wealth and immortality of the locals in Khanh Hoa province where is home to the special bird. (Source: VNA)

Vietnam, the Asian choice for US companies: Industry Week

22:27' 10/06/2007 (GMT+7)

Granting investment license to Intel’s project in Ho Chi Minh City VietNamNet Bridge - Vietnam has quickly become a leading recipient of foreign investment by US companies, said Alex Bryant, President of the East West Associates (EWA), in his article run by the online Industry Week on June 6. The article notes that: “As a result of favorable governmental policies, a well-educated workforce and concern about China's rising costs, Vietnam has experienced a significant rise in direct foreign investment. These companies view Vietnam as a real alternative for establishing manufacturing and distribution centres, primarily for export. Recent investments include Intel's project in Ho Chi Minh City with a total investment of US $1 billion. This investment is being followed by other hi-tech investments as well as prospective Intel suppliers. Vietnam attracted more than US $10.2 billion in registered capital to carry out foreign investment projects in 2006 -- nearly $8 billion went toward 800 new projects and more than US $2.2 billion to 440 applications for capital expansion of existing projects. During the last 2 years, Vietnam has yielded robust economic results and showed up strongly on investors' radars following WTO entry, hosting of the APEC meeting and the US government's approval of permanent normal trade relations. The article outlines 6 key characteristics of the Vietnamese market for manufacturers considering establishing businesses in Vietnam as follows: Reasonable labour rates and well-trained workforce In comparison to many of its Asian neighbors, Vietnam has a relatively inexpensive labor rate. For factory operators, the average salary is US $200/month while key managers and senior engineers are paid US $1,500/month. Vietnam has a 48 hour work week and the government-mandated social programmes are approximately 25% of the salary costs. In comparison, China has a 40 hour work week and social costs are 50-60% of the operator's salary. The Vietnamese workforce is well-educated and ambitious. The average age of an worker is 24 and a growing percentage of the workforce is comfortable with English as a second language due in large part to the availability of English language centres. Tax incentives In terms of economic development, Vietnam is now where China was 10-12 years ago, with the noted exception that policy makers in Hanoi have learned valuable lessons from the Chinese model. The government has implemented an aggressive program of corporate income tax incentives. This program involves up to 4 years of tax holiday following (and including) the first year of 'carried forward' profitability. Thereafter, the tax rate is 1/2 of the nominal tax rate for a period of up to 7 years, with a total application period of up to 15 years. The nominal tax rate can be 10%, 15%, or 20% - depending on the industry sector, investment classification and location. The standard tax rate is 28%. When a company is selecting the site for their investment, the various business parks should be visited and tax incentives of each discussed, as well as the criteria for obtaining preferential tax treatment. There are also duty free programmes for the importation of capital goods (new and refurbished). "The Vietnamese government's tax incentives are among the best in Asia and companies recognise the financial impact these incentives will have to their bottom line revenue", says Mr Charlie Blocker, managing director, Gannon Pacific Group. Infrastructure Vietnam's infrastructure is developing rapidly to meet this new influx of foreign direct investment. While behind China, the Vietnamese government is committed to developing infrastructural balance, especially electricity and water supply, seaport services and telecommunication. Bilateral lenders and grants continue to be plentiful. In the last 2 years, Vietnam has invested some 10% of GDP into its infrastructure. By 2012, Vietnam will have completed a major logistical milestone via deep water ports and surface transport -- this development will give Vietnam a huge competitive advantage and allow them to further support investors supply chain initiatives and exports to ASEAN, China and North America. Intellectual property and legal infrastructure In addition to meeting IP and legal requirements for WTO admission, the Vietnamese government has taken steps to protect IP and enacted laws providing specific protection for investors. The judicial system of laws affecting foreign investment has continued to see improvement, creating a more transparent and open legal framework for investment activities. Last year, the government issued decrees to guide the implementation of the Investment Law and the Procurement Law. The National Assembly also approved new laws to make the legal framework more synchronic to investors: the Securities Law, the Technology Transfer Law, the Intellectual Property Law, and an amended Labor Code, which has new stipulations on strike issues. Availability of existing manufacturing facilities Vietnam has developed a relatively large number of Business Parks. The lease rates for land are generally less expensive than China, averaging US $20-25 per square metre for a 50 year lease. Lease rates in existing, more established parks are more expensive and are approximately US $40 per square metre. Statistics from the Industrial Zone (IZ) and Export-Processing Zone (EPZ) Management Department of the Ministry of Planning and Investment show that in 2006, US $5.68 billion went to IZs and EPZs. This investment was for new projects and capital increases in present projects and was nearly twice the inflow in 2005. Ba Ria-Vung Tau, Binh Duong, Dong Nai and Ho Chi Minh City were most attractive to investors with 213 projects and total registered capital of nearly US $2.58 billion - approximately 60% of the total FDI in IZs and EPZs. One of EWA’s clients, a US metal fabricator, wanted to establish a manufacturing facility near Ho Chi Minh City in order to take advantage of the seaport and ease of customs. Of the approximately 55 Business Parks located in the area, we narrowed the list to 3 qualified sites which met the client's needs. These parks were competitive in their services and are a good place for companies establishing business entities. The author concludes by stressing that “Vietnam offers investors great economic potential and is a leading alternative for companies wanting to diversify their Asian investments. With an inexpensive labor force, exceptional tax incentives and a growing infrastructure, Vietnam will continue to offer investment opportunities for US companies.” (Source: Industry Week Online)

FDI goes hi-tech

22:05' 10/06/2007 (GMT+7)

At a plant of Nidec VietNamNet Bridge – A race to invest in Vietnam between hi-tech groups is taking place with capital up to billions of US dollars. Japanese-American technologies come to Vietnam Japanese investors are considered to have come to Vietnam the earliest and have the highest number of hi-tech projects in the country. Many reputed groups of Japan such as Sanyo, Matsushita, Sony, Fujitsu, Toshiba, Panasonic and Nidec have been developing plans in Vietnam for a long time and they are now continuing to pour in more capital to expand their facilities. The most outstanding example is the Canon group. After investing US$100 million in a printer plant in the Hanoi-based Thang Long Industrial Zone, Canon has spent hundreds of millions of US dollars on its new factories in the northern province of Bac Ninh, turning Vietnam into the world’s largest laser printer manufacturing centre. Canon’s $300 million laser printer factory in Vietnam can produce 700,000 units a month, equivalent to 80% of the total laser printers that Canon makes annually and meeting around 30% of the export market. Canon hopes to earn turnover of US$1 billion this year. Nidec came to Vietnam earlier than Canon and it has recently put into operation two new factories in the HCM City Hi-tech Park after investing nearly $100 million in its plants in the HCM City-based Tan Thuan Export Processing Zone over the past ten years. According to Nagamori, Nidec Chairman, the two new plants which manufacture electronic components and worth $50 million are part of Nidec’s $1 billion investment plan in the HCM City Hi-tech Park to 2010. This Japanese investor plans to build ten plants on 33ha of land in the park to turn it into its second largest base in Asia, after its one in China. Following Japanese investors in the hi-tech field are American businesses. Intel’s construction of a chipset plant with $1 billion of capital in HCM City has partly solidified the position of Vietnam as the new destination for hi-tech investors. The presence of Intel’s plant in Vietnam has been considered positive confirmation of Vietnam’s investment environment so only two months after Intel kicked off the construction of its plant, the US’ leading electronic group – Jabil – decided to invest in the HCM City Hi-tech Park with $100 million of capital. Many investors from Taiwan now consider Vietnam a safe destination where there are low labour costs, and they plan to pour billions of US dollars in the country. Taiwan’s Foxconn, a giant firm producing electronic products such as Ipod music players, Nokia mobile phones, laptops, Sony cameras plans to invest $5 billion in projects in the northern provinces of Bac Ninh and Bac Giang. Those projects will create jobs for around 50,000 workers and create export revenue of around $3.5 billion each year. This investment plan of Foxconn aims to disperse risks because it has invested a huge amount of money in China. Meanwhile, another group of Taiwan, TECO, has joined hands with SaigonTel to invest $1 billion to build a software centre in the Thu Thiem new residential area. This centre will be built after the model of the NanKang software centre in Taipei and will attract around 100 IT firms from the NanKang centre. Hi-tech investors come to Vietnam for many reasons: open policies in drawing investment, Vietnam’s accession to the World Trade Organisation, low labour costs and production costs. Developing R&D centres Foreign investors are not only investing in production but also in research and development (R&D) centres in Vietnam. After building two factories producing hi-tech electronic products in Hanoi, Matsushita Electric, the owner of the Panasonic brand name, has announced it will invest in a Panasonic R&D Centre in Vietnam. This will be the third R&D Centre of this group in Southeast Asia to design system chipsets, software for mobile phones and flat-screen television sets. The US’ Jabil group is also investing in a centre providing design solutions for global customers at low costs in Vietnam. Renesas Technology, Japan’s leading and the world’s third-largest semi-conductor and chipset producer, is about to put into operation an R&D centre in HCM City. Vietnam now has a big opportunity to attract foreign investment in the hi-tech industry and according to investment promoters, the country should quickly develop infrastructure and train human resources to serve investors. (Source: VNN)