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L-Erbgħa, 20 ta’ Ġunju 2007

VEF Chairman: new ideas can start in Vietnam


16:41' 20/06/2007 (GMT+7)


VietNamNet Bridge - Malcolm Gillis, former President of Rice University and Chairman of the Board of Directors of the Vietnam Education Fund, talked with VietNamNet on the occasion of his second visit to Vietnam.

Establishing and developing high-quality universities is a topic that is currently receiving much attention in Vietnam. As a former manager of a prestigious university in the US, do you have any suggestions?

You can learn from the experiences of American universities, or some young universities in Germany, for instance, the University of Bremen. In order to succeed quickly, a university needs to be established from scratch.

I’m saying this based on the experiences of the University of Bremen, and in the near future, a new university in Pyongyang. There are many ways to speed up Vietnam’s education system.

From my experiences of the past 50 years, I think in order to develop an economy and a country, we should invest in education. This is a fundamental thing that pushes up living standards.

In Vietnam, the subject of high-quality universities, which is often referred to as international-standard universities, was discussed as early as after former PM Phan Van Khai’s visit to the US in 2005. Yet, the ideas around this topic are now still somewhere on paper only. In your opinion, in order to have such universities, what is it that we should “kick-start”?

I think Vietnam has done the warm-up phase well. You’ve sent your outstanding students to developed countries to study sciences and technology.

The Vietnamese Government has developed plans to send from 3,000 to 5,000 students for post-graduate studies abroad within the next 10 to 20 years. Some of these will be supported by the Vietnam Education Fund VEF, and some will receive financial support from different sources.

In the meeting with the Ministry of Education and Training (MoET) held on the morning of June 14, we made an analogy, saying that you should consider each young student you send abroad an oil well.

Establishing good universities was likened to building a filtering system. In order to have profits from oil, not only will we exploit these wells but we’ll also need to build a good system linking them to our filtering one.

Each outstanding student after he or she returns home will be more valuable than an oil well. And to take advantage of and develop this resource, we must build not only good schools but also a good education system.

There is a famous sentence from Ho Chi Minh which I like a lot. He said, “Plant a tree for the sake of 10 years of interests. Plant a human being for the sake of 100 hundred years of interests.”

I hang this sentence in my office at Rice University. Many visitors coming to the office have been impressed by it. If this sentence was hung in every house and government office, it would be wonderful.

What is the particular development direction in your model of good universities?

Perhaps one should invest more in research. Up until now, Vietnam has been following the German and French models of research and teaching. According to these models, universities focus on teaching and research institutes concentrate on research.

There are dozens of reasons to show that this lack of interconnection is no longer suitable to the 21st century. Good teaching depends on research and vice versa. In science and technology, good research depends much on excellent graduates who can only be found at universities.

You will meet Vietnam’s PM to discuss the two countries’ education relationship after your meeting with the MoET. What do you want to say at this meeting?

I can’t talk about solutions. But rather, it is you who should affirm what it is that you want and need. You determine for yourselves your own priorities and we’ll support you. It’s because we come here to help you achieve what you want rather than offer answers to all of the problems you’re facing.

If you are consulted on setting priorities for higher education in Vietnam, what will you propose?

The first thing is to ensure good teaching and research at universities. And this depends on human resources. Higher education, I think, won’t need just one but several international-standard schools to solve problems and invent new scientific and artistic ideas right here in your own country.

In the future, the world will have 3 types of nations: smart countries, smarter countries and the smartest countries. The differences between them will depend on the way each country invests in education, especially higher education. Those countries with universities that can adjust to our rapid technological development will be the smartest.

You can see that in the US, the greatest ideas are created inside universities. The important element that brings about success for a university is emphasising the dominance of ideas. Do you want all of these new ideas to come from Tokyo, London, or Beijing? Or do you want at least some of them to come from Vietnam?

I’ve been in Vietnam twice and observed that your country has undergone many changes. Your country is very big and every invention can start right here. I’m going to Pyongyang to work on the new university project there. In Chile and Mexico, they are also establishing “outstanding centres”. If Pyongyang and Chile and Mexico can do things, why can’t such an active country as Vietnam?

More importantly, if the Government is really determined, Vietnamese communities abroad will be willing to contribute. But I have to say that establishing good universities is like gardening in Japan. It is a very beautiful and minute task but it will never end. Thus, our efforts must be constant.

Viet nam Net

Vietnam, bright star of world economy: US businessmen


16:34' 20/06/2007 (GMT+7)

VietNamNet Bridge – Vietnam is creating the most favourable conditions for foreign investors. Vietnam will be surely a trustworthy address for effective investment. That’s the strong message that was sent by the Vietnamese President to American investors at the “Financial investment in Vietnam” forum held in New York on June 19.

President Nguyen Minh Triet at the forum.
President Nguyen Minh Triet at the forum.

The Vietnamese President and his entourage attended the forum and witnessed the signing of many financial investment cooperation documents between Vietnamese and American companies.

The forum, held by the AIG insurance group, Credit Suisse financial group, and the Vietnam Chamber of Commerce and Industry (VCCI), drew the attendance of senior officials of big groups in the US.

Mr Triet delivered a speech at the forum and hailed the efforts of the three organisers. In his speech, Mr Triet introduced Vietnam as a rapidly developing economy and said that Vietnamese people were hardworking and friendly. Vietnam needs capital to develop its economy and all foreign investors are welcome in the country.

On behalf of the Vietnamese state, the President delivered a message to American businessmen: “Vietnam is creating the most favourable conditions for American investors as well as foreign investors to do business in Vietnam. Vietnam will surely be a trustworthy address for effective investment.

“Today, talking about Vietnam is no longer talking about war, but a dynamic, promising and developing economy in Southeast Asia. Talking about Vietnam is talking about the more trustworthy investment environment, attractive investment-calling programmes and policies. The Vietnamese Government and related agencies always attach importance to the interests of investors. Go to Vietnam to see a friendly country, friendly people and you will want to invest more. Go to Vietnam to see with your own eyes what I’ve told you. Vietnam expects to welcome investment from American businesses,” Mr Triet emphasised.

“President Bush on his visit to Vietnam last year was impressed by Vietnamese people. In the talk with me, he said that he was surprised that Vietnamese people are so friendly and hospitable. Seeing the friendliness of Vietnamese people and good security in Vietnam, President Bush didn’t worry about stretching his body over the car door to wave his hands at Vietnamese people. Australian Prime Minister John Howard wore sportswear to run around Hoan Kiem Lake. That’s the image of today’s Vietnam and the Vietnam of the future,” President Triet added.

Mr Triet also praised the US people as open, dynamic and hospitable people and the US as a developed country with highly developed science and technology. “American investors will have many conditions to bring into play their advantages in Vietnam,” he said.

Jeffrey Shafer, Vice Chairman of Citigroup, on behalf of American financial investors, hailed the visit of President Triet to the US. The presence of Mr Triet at the forum is the clearest evidence for the attention of the Vietnamese government to investors. He also said that the visit would pave the way for international financial investors to strengthen their presence in Vietnam.

“Vietnam is expanding this market to the world and we believe that Vietnam will record impressive results. The Vietnamese government has made a strong commitment to supporting economic development. Vietnam is a rapidly developing and dynamic economy, a real player, and a bright star of the world economy. As a new star, Vietnam’s predicted growth rate this year is 8.5%. American financial investors are really impressed by Vietnam’s achievements,” Mr Shafer said.

“We, financial investors, are ready to go with Vietnam in the cause of development… We are proud to contribute to the development of Vietnam and participate in development programmes. Investors are wiling to invest more into the developing stock market of Vietnam,” he added.

Before going to the forum, President Triet witnessed the signing of many important cooperation agreements worth more than US$2 billion with American partners and other partners.

Specifically, the Bank for Agriculture and Rural Development of Vietnam (Agribank) signed four cooperation agreements worth $1.55 billion with Wachovia Bank, the UK’s Standard Chartered Bank, and Austria’s RZB Bank.

Tuan Nguyen (from New York)

US court holds hearing on Vietnamese AO victims’ lawsuit appeal


10:24' 20/06/2007 (GMT+7)

VietNamNet Bridge – The US Court of Appeals on June 18 held oral arguments on the appeal filed by Vietnamese AO/Dioxin victims in their lawsuit against 37 US producers and suppliers of toxic chemicals which cause durable harms on environment and people’s health in Vietnam.


The lawsuit was dismissed two years ago by a federal inferior court on the ground of insufficient legal evidence.

At the hearing, lawyers of the plaintiffs emphasised the high level of danger from Agent Orange/Dioxin sprayed by US troops on battlefields during the past war in Vietnam.

Moreover, a large quantity of the toxic chemicals were used over a period of 10 years even though the US authorities and chemical companies had been warned of the danger from the chemicals.

The lawyers stressed that AO/Dioxin has left paramount consequences on the environment and many generations of Vietnamese. They held that the case should be brought back to the court in the US for trial.

Lawyers representing the defendants argued that US chemical companies had not known about the high dangerous level of AO.

They said that even now science has not been able to prove the close ties between the toxic chemicals used by the US troops in Vietnam in the past and the serious diseases that the Vietnamese side said to be caused by AO/Dioxin.

The US Court of Appeal will decide if the case will be bring back to the US court in the near future.

A delegation of Vietnamese AO victims, led by Tran Xuan Thu, Vice President-cum-General Secretary of the Viet Nam Association for Victims of Agent Orange/Dioxin (VAVA), attended the hearing.

The delegation also met with the press before and after the hearing. Many press agencies, including the Associated Press and MSNBC of the US, Reuters of the UK and Ria Novosti of Russia, participated in these meetings.

Around 100 US people, many of whom were veterans, joined meetings in support of AO victims before the hearing. The participants wore orange ribbons and took with them orange balloons and boards demanding justice for AO victims.

Thu told the press after the hearing that as it is not a criminal but civil case, nobody will be jailed or accused, but Vietnamese AO victims are asking for justice and compensation.

The plaintiff’s representative, lawyer Konstantine Kokkoris, said US chemical companies should take responsibility for causing serious consequences to humans and the environment in Vietnam.

He also said he hoped that the judges would quickly bring the case to court for trial again.

Thu said if decision by the Court of Appeal falls short of the association’s expectation, it will take the lawsuit to the US Supreme Court.

(Source: VNA)

Lack of rooms, not small thing!


10:06' 20/06/2007 (GMT+7)

Foreign visitors in Hoi An town.
VietNamNet Bridge – Welcoming over 3 million international visitors a year, the tourism industry of Vietnam has been in a crisis for hotel rooms during the travel season. This year’s tourism season sees a big problem: the refrain of hotel-room shortage and room price increase may distort the ‘friendly smile’ of Vietnam’s tourism in the world market!

Foreign tour operators complain

The famous travel magazine TTG has recently published quite a heavy criticism of the business style of some hotels in Vietnam. Here are some quotations:

Australia-based Travel Indochina product manager, Mr Eric Finley, said: "We have been marketing Vietnam for more than 13 years and have never seen anything like this. When negotiating rates for 2008, we had some hoteliers insisting on immediate rate increases, and increases of 50% on existing bookings. Other companies report hoteliers have insisted on reducing allotments dramatically, some cutting allotments in high season altogether."

He said that if hoteliers continued with this strategy it would cost Vietnam’s entire tourism industry across the board, and recovery time from such trauma in other markets had "taken years".

Phoenix Voyages Groups president, Edouard George, said: "The behaviour of some leading hotels is seriously jeopardising the future of inbound agencies, both in terms of employment and profitability... The hotels should realise inbound agencies are working and preparing travel plans a year in advance.”

He said inbound operators were forced to quote "blindly" as a result, and had to turn down several groups "not because the hotels are full, but because they refused to sell their rooms to inbound agencies”.

Focus Asia’s sales and marketing director, Patrick Gaveau, said: "Vietnam has been successful at attracting tourists; it is a safe, exotic and price competitive destination. Now, we wonder if hotels’ outrageous price hikes and the declining appeal of the damaged environment combined with the poor maintenance of landmarks and sites may damage Vietnam’s credibility in the long run."

Destination Asia’s managing director, Paul Levrier, said: "Within the space of this first quarter of the year, we are already seeing our long-term clients search for alternative destinations in the region after being frustrated with the hotels’ approach to business and the lack of ethics applied."

On TTG, many foreign tour operators said that Vietnam was now outside the market as some hotels announced they would apply the price of $100 for a three-star room for the 2008 tourism season.

What do local tour operators say?

June and July are the time for negotiating the prices and offering tours for the next travel season among local and foreign travel companies.

A representative of Saigontourist said: “Foreign partners always complain because the offered price increases 20% annually. It is very difficult to negotiate with them. The tour price increases continuously because the increase of room prices. Some hotels have announced a 50-60% rate increase for rooms in 2008. Some hotels in Hanoi even refuse to negotiate for tour travelers.”

A representative of DL Exotissimo, which focuses on European travellers, said: “The current room prices of Vietnam are higher than neighbouring countries like Thailand and China up to 20%-50%.”

DL Exotissimo’s Chairman Tran Khang Thuy said that as the political situation in Thailand was unstable, the number of foreign visitors coming to Vietnam was increasing clearly.

Holding this opportunity, Vietnamese hoteliers ought to join hands with travel agents to advertise Vietnam’s tourism but they allege the increase of power, water and food prices have pushed up room rates. They even neglect contracts that they signed with travel companies one year ago.

Director of the MICE Travel Centre, Le Hoang Yen, complained: “It is normal for hotels to increase room prices. For example the Legend Hotel offered US$80-90/person/night in 2006 but now the price is double ($120-180/night). At the Caravelle the price has gone from $120/night in 2006 to $200/night in 2007. At this pace, it is not strange to see the room price in Vietnam in 2008 at $300/person/night.

“Even when we had signed contracts already, hotels still canceled the contract with thousands of reasons or put our visitors into rooms of lower prices, breaking our contracts. It is too tiring for travel agents now when it is difficult for us to gain a big contract but our efforts may turn to zero if hotels announce they have raised room prices or have no rooms. How can international meetings change their schedule? Frequent room price changes also annoy travellers. Because of this we have had to recently cancel the tour of a group of nearly 400 visitors.”

(Source: Viet Nam Net)

Vietnamese President visits New York Stock Exchange


09:57' 20/06/2007 (GMT+7)

VietNamNet Bridge – Vietnamese President Nguyen Minh Triet paid a visit to the New York Stock Exchange (NYSE) at 11am, June 19 (New York time) and witnessed the signing of a cooperation agreement between the HCM City Securities Trading Centre and the NYSE.

President Triet writes some lines in the visitor’s book of the NYSE (Photo: AP)
President Triet writes some lines in the visitor’s book of the NYSE (Photo: AP)

New York is the first place that Mr Triet came to in his five-day visit to the US. This city is famous with the NYSE and the NASDAQ stock exchanges. New York is considered the capital of the world financial market and the NYSE is the heart of that capital. Two years ago, during his official visit to the US in June 2005, Prime Minister Phan Van Khai also paid a visit to the NYSE.

Also on June 19, representatives of the Citigroup, led by its Chairman Chuck Prince, came to greet President Triet. During the meeting with the Vietnamese President, the Citigroup Chairman expressed his admiration to Vietnam’s outstanding development. He said that along with the development of the Vietnamese economy, the country’s investment environment is very potential and Citigroup wants to participate in various fields of the Vietnamese economy.

After the meeting, under Mr Triet’s witness, Citigroup signed loan agreements worth more than US$400 million with the Electricity of Vietnam (EVN) group, the Vietnam Shipping Lines Corporation (Vinalines), and the Vietnam Coal and Mineral Group (Vinacomin).

Specifically, EVN will borrow capital from Citigroup to develop business. This is a new development in banking and finance cooperation between Citi and EVN. The fields of cooperation include electric and telecom charge payment service through bank, telecom services, forex trading and capital management, risk management, deposit investment and other payment services.

Meanwhile, Vinacomin selected Citigroup as the consulter for its first bond issuance in Vietnam. For Vinalines, the loan from Citigroup will be used to develop its flotillas and port projects. Under its development plan from now to 2010, Vinalines will double its vessels and develop large-scale seaports so it needs huge sources of capital for those projects.

According to Jeffrey Shafer, Vice Chairman of the Citigroup, who is in charge of global banking services, the Vietnamese economy is growing very rapidly and is integrating into the world market. Vietnamese companies, thus, will seek to increase foreign capital and foreign financial sources to raise their competitiveness. Citigroup is willing to assist Vietnamese companies in this significant period of development.

Also on June 19 morning, President Triet met with the representatives of the Ford Foundation and overseas Vietnamese in Canada.

At the same time, the Vietnam – US business forum was held in New York. In the afternoon of June 19, Mr Triet visited the headquarters of the American textile-garments group, met with the United Nations Secretary General Ban Ki Moon and US financial investors.

American groups hail Vietnamese President's visit

The Washington Post, the US's major newspaper, on June 19 ran a half-page letter by 10 American groups, describing the visit as a milestone to further deepen Vietnam-US ties.

The letter said that exports from the US to Vietnam increased by 300 percent since the two countries signed the Bilateral Trade Agreement in 2000. Joining the World Trade Organisation earlier this year, Vietnam has became a full partner in the world business community.

In their letter, the American businessmen praised Vietnam's economic reform, that turn the country one of fastest growing economies and potential markets in the world. Also on the June 19 issue, Washington Post covered President Triet's photo and flags of Vietnam and the US.

During the visit to the US by President Triet from June 19-23, the CNN everyday repeatedly broadcast a video clip on "Vietnam: A New Horizon", highlighting achievements of the "Doi moi" (Renovation) process in Vietnam over the past 20 years in all fields.

Viet Nam Net

Building near White House evacuated ahead of Bush-Omlert meeting


17:09' 19/06/2007 (GMT+7)

A building near the White House was evacuated Monday for 90 minutes due to a bomb scare, just ahead of the meeting between U.S. President George W. Bush and Israeli Prime Minister Ehud Olmert on the next day.


The building, namely the White House Conference Center, temporarily houses the White House press room during a renovation of the White House's West Wing that includes its usual place, U.S. media outlets reported.

In early afternoon, reporters were evacuated from the White House Conference Center at Jackson Place across the street from the main White House grounds after a bomb sniffing dog highlighted a car parked nearby.

The building reopened about 90 minutes later.

Police units are still examining the vehicle, which was reportedly driven by a member of the Israeli delegation that was staying across the street from the White House at the Blair House, the White House guest quarters.

Even before the incident, the area was already under heightened security because Olmert is staying at Blair House before a meeting with Bush on Tuesday.

Olmert is in town for talks with U.S. officials on the recent dissolution of the Palestinian government.

There was no indication that the executive mansion where Bush lives and works was affected.

The president and his staff inside the White House are sticking to their schedule as usual, U.S. officials said.

VietNamNet/Xinhuanet

Tam Dao forest to become entertainment site


14:50' 19/06/2007 (GMT+7)

A road is building in Tam Dao (photo: KH&DS)
A road is building in Tam Dao (photo: KH&DS)
VietNamNet Bridge – Some 200ha of land in the core of Tam Dao National Park may become a complex of high-class inns, villas, a golf course, and casino under a plan of the People’s Committee of Vinh Phuc Province.

“This place will become a paradise and a unique tourist site for high-class visitors,” said Vinh Phuc’s Chairman Nguyen Ngoc Phi.

Two foreign investors are willing to spend nearly US$300 million to turn this site into a paradise. According to the plan designed by consultants for the US’ Belt Collin Hawaii Ltd and Vietnam’s Patrers LLC, the Tam Dao 2 region will become a complex of three building and one entertainment zones in the centre. This entertainment centre will comprise high-class inns, conference centres, casinos totalling 200-400 rooms, a 19-hole golf course, and a 2,000sq.m villa area. Two other plans also include similar works but their positions are changed.

Most local officials affirmed that it was necessary to build the above ecological tourism site because there was nothing in Tam Dao 2 region to preserve. According to Nguyen Dam, Deputy Director of the Vinh Phuc Department of Construction, who has surveyed this area two times, the Tam Dao 2 region is a flat area which doesn’t have old trees, just gnarled trees.

Scientists suggest Vinh Phuc consider carefully

Professor Bui Cong Hien, Director of the Entomology Application Centre under the University of Natural Sciences, said that just several days of surveying couldn’t reveal what remained for preservation.

Dr. Tran Hong Ha, Head of the Environmental Protection Agency under the Ministry of Natural Resources and the Environment, said that some countries also developed ecological tourism at national parks but they clearly defined which were the sites for absolute protection, the buffer and development. He said that the project in Vinh Phuc needed the State’s consideration and must be submitted for public opinion and comments from related associations and scientists.

Dr. Nguyen Ngoc Sinh, Chairman of the Nature and Environmental Protection Association, proposed an immediate halt to the project, saying that the exploitation of part of Tam Dao National Park would surely adversely impact the remaining area, from ecological systems, genetic sources to the only mountainous wetland ecological system in Vietnam.

Dr. Sinh also said that the construction of entertainment works, including casinos in a holy land like Tam Dao, would cause social-spiritual issues.

Professor Nguyen Van Truong, Director of the Ecological Economic Institute, said that projects to develop the Tam Dao ecological tourism site catered more to business than environmental protection. The area devoted to the golf course, hotels and roads is too large.

“A tree in Tam Dao has different value than trees in other areas. Everything left in Tam Dao 2 is all natural so we have to maintain it,” he said.

Tam Dao National Park, located about 70km north of Hanoi, was recognised in March 1996. With a total area of about 36,900ha it is one of the largest national parks in Vietnam and one of the last natural areas close to urban Hanoi which has not been transformed into agricultural land.

Situated on the northern fringe of the Red River delta, the Tam Dao mountain range forms a unique ecological island of about 80km in length, containing dense tropical rainforests with species from the tropical forests of Southeast Asia, the temperate forests of southern China and the alpine forests of the eastern Himalayas.

Rising steeply from densely populated lowlands to a peak of 1529m above sea‑level, the forests support a large variety of ecosystems and micro‑habitats of high biodiversity, varying with altitude, aspect and the degree of human disturbance. In its original state, Tam Dao had one of the highest levels of species richness of any tropical forest with about 1,300 plant and 1,200 animal species, many of which are rare and/or endemic to Tam Dao or northern Vietnam. (Source: GTZ Vietnam)

(Source: Viet Nam Net)

VN educator responds to US experts’ assessment of higher education


16:17' 18/06/2007 (GMT+7)

Doctor Nguyen Duc Nghia
VietNamNet Bridge – Doctor Nguyen Duc Nghia, Vice President of HCM City National University, talked about the US-based Vietnam Education Fund’s recent report of the 5 problematic areas it observes in Vietnam’s university education.

Experts carrying out the Observations on University Education project say that our current university curricula are made up of too many subjects and undergraduate students need to complete more than 200 credits in order to graduate, and in general, our programmes require too much from students but provide them with too few options. What do you think?

These observations are both accurate and inaccurate, since study loads wouldn’t be too great if our current 45-minute class periods were converted into 60-minute ones. But it is indeed essential to curtail our programmes.

As for the suggestion that we deliver more optional courses, this will help to make our curricula more interesting and flexible. But courses with less than 5 students will be difficult to open for financial reasons.

According to the report, it is difficult for students to change their majors. Why is this so?

This observation is completely accurate. At the moment, different departments within a university recruit their own students and each department has its own admission grade.

Many universities require students to follow their original majors throughout their undergraduate years and few allow students to change their majors.

On the contrary, in foreign countries, it takes students only 5 minutes to complete paperwork to change their majors. The fundamental reason is that our universities aren’t capable of recruiting all those who want to pursue university education.

If students were freely allowed to change their majors, this might lead to the phenomenon that students would apply for an uncompetitive department in order to be accepted into college and later move into a different department.

The observers say we lack capable lecturers with updated professional knowledge. Do you feel “hurt” by this assessment?

It’s difficult for our lecturers to improve their own knowledge and capacity due to work loads that are too heavy. Thus, we’ll need to develop a teaching salary mechanism in which our instructors will be able to invest time in research and professional improvement.

What about another interesting observation that says the habit of universities’ recruiting their own graduates to teach prevents an active research environment from developing?

It’s good if those graduates are indeed better than their own professors. But it’s also true that instructors who have experiences in working in business, management and other social activities outside the school environment can make lectures more interesting.

As for the suggestion of increasing the number of universities while our teaching resources are still limited, is there any solution?

At present, only 25% of those of college age are able to go to college; there aren’t enough seats for the remaining 75%. So it’s necessary to have more universities.

We’ve also set the goal of having 600 universities by 2020. This means that every month, we’ll establish 2 more universities.

Considering our lack of instructors, we’ll have to engage in an intense socialisation process which allows foreigners to invest in education, helping to increase the numbers of schools as well as teaching staffs rapidly. Only by doing so can we hope to break up our university circle.

(Source: NLD)

Vietnamese fruit more expensive than regional produce


07:15' 20/06/2007 (GMT+7)

VietNamNet Bridge – The price of Vietnam-sourced fruit is much higher than the world’s price levels, and always fluctuates, according to Nguyen Minh Chau, Head of the Southern Fruit Research Institute.

Mr Chau said that Vietnamese Ri-6 durian was selling at VND25,000/kg, while Thai Mongthong durian was selling at VND7,000/kg only in Thailand, and VND10-15,000/kg in Vietnam. Similarly, Vietnamese Nam Roi pomelos are being exported to China at $2-2.5/kg, while China exports pomelos to the Netherlands at UScent50/kg only.

Experts said that the biggest challenges of fruit and vegetable produce as Vietnam has joined the WTO were price and quality.

Mr Chau said that Vietnamese farmers and producers should think of lowering selling prices otherwise they would lose the home market to foreigners as more and more foreign-sourced fruits would enter Vietnam in the near future.

The high price and low quality of Vietnam-grown fruit can explain why Thai fruit is dominating the domestic market.

May and summer months are the time for picking fruit in Mekong River Delta provinces. However, the domestic market is still flooded with foreign produce.

The Tinh Bien border district in An Giang province, for example, sees 1,000 tonnes of imported fruit every day. Most of the imports are Thai produce, including tamarind, durian, mangosteen and mango. Moreover, China-sourced fruit is also abundant. Consumers can also buy more expensive fruit like US grapes and oranges, and Japanese avocado and kiwi.

In Can Tho city, Thai mangosteen is selling at VND15-18,000/kg, while An Phu Tan-sourced mangosteen is selling at VND18-19,000/kg. Analysts said that farmers in the biggest mangosteen growing area, An Phu Tan, had to reduce the selling price by VND10,000/kg compared to last year’s level in order to make their produce competitive with Thailand’s.

Vietnamese durian now cannot find customers after people discovered that farmers in the south apply Carbendazim to durians in order to protect the fruit. Meanwhile, Thai durian is favoured by Vietnamese consumers as the product is thought to be safe as it can meet the GAP requirements.

What about mangos? In Hoa Loc, the area famous for delicious mangos, one kilogramme of mangos is VND10-15,000/kg, down from the VND22-24,000/kg level.

Domestically grown grapes are selling at VND20,000/kg, but sales are very slow. Consumers now prefer US and South America-sourced products though the imports have selling prices 3-4 fold higher than the domestic product.

Explaining why Vietnamese fruit is so expensive, experts said that small scale production led to high production costs. They said that Vietnamese fruit was the most expensive in the region, 30-40% higher than Thai fruit.

According to Tu Minh Thien, Director of the HCM City Consultancy and Agricultural Support Centre, Vietnamese fruit prices are high because of low quality and productivity. Meanwhile, preservation technologies are not professional enough to keep exports in good conditions. Mr Thien said that the percentage of spoiled fruit after preservation was relatively high, at 20-30%.

(Source: Viet Nam Net)

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