Beach beautiful, but travelers don’t loosen purse-strings

16:55' 30/07/2007 (GMT+7)

VietNamNet Bridge – Vietnam has many beautiful beaches, among which, Da Nang beach has been recognised by the US Forbes magazine as one of the most wonderful beaches on the planet. However, this is not enough to lure travelers and persuade them to spend money. While people in the world now tend to travel by sea, the number of foreign tourists coming by cruise ship to Vietnam remains modest. It is estimated that European travelers spend 50-70% of their time in Vietnam relaxing on beaches. According to Truong Nam Thang, Director of OSC travel firm, most foreign tourists stay in HCM City for one night only, and then travel to the central region to enjoy the fresh atmosphere and wonderful beaches there. Statistics of the Vietnam National Administration of Tourism (VNAT) show that Vietnamese sea areas attract 70% of foreign tourists. Lacking… ways to beaches While people in the world now tend to travel by sea, the number of foreign tourists coming by cruise ship to Vietnam remains modest. According to VNAT, the number of foreign cruise tourists just accounts for 6% of the total number of travelers visiting Vietnam. The tourists only stay in Vietnam for two or three days on average; therefore, they do not have much time for sightseeing, entertainment and shopping. Most of the cruise ships dock at merchandise ports, while there are not specialised ports for tourism ships in Vietnam. Many big ships cannot go far into the port, while travelers have to be ferried ashore, which takes time and discourages tourists. The Institute for Transport Development Strategy under the Ministry of Transport has acknowledged that the seaport development strategy does not mention the port system for tourism. An official said that the situation would be improved once the ministry drew up a plan on developing a port system modern and capable enough to receive big cruise ships at key tourism points like Ha Long Bay, Hue, Da Nang and Nha Trang city, HCM City, Vung Tau and Phu Quoc Island. Beaches beautiful, but still need advertisement Analysts have said that Vietnam has never paid appropriate attention to the advertisement of its seas and beaches. In fact, VNAT published bulletins with special issues on Vietnam’s sea landscapes, but they just provided general information. Vietnam has never participated in conferences and trade fairs with the focus on sea traveling and cruise traveling. Only recently, when working with the US CNN television, did VNAT mention advertisement for Vietnam’s seas and beaches with Ha Long Bay being the focus. The strategy on tourism development by 2010 and vision to 2020 also did not mention sea travel development. Meanwhile, Vietnam now has to compete with regional countries including Thailand, Indonesia and Malaysia in terms of attracting tourists. Director of the Tourism Department of Binh Thuan Ngo Minh Chinh has asked VNAT to build standards for types of sea travel: which sea areas should be reserved for rehabilitation travel, which ones for sea sports and entertainment, and which for open air sea travel. Local authorities would refer to the standards to programme their tourism development strategy. VNAT plans to submit to the Government a project on sea and island travel development by 2010 with a vision to 2020. One day, Vietnam will also have its trademarks for sea travel as other regional countries have, like Indonesia’s Bali and Thailand’s Phuket. (Source: Tuoi tre, Viet Nam Net)

HSTC’s strict requirements to create sub-licences?

17:11' 30/07/2007 (GMT+7)

VietNamNet Bridge – Newly set up securities companies have expressed concerns since hearing the news that the HCM City Securities Trading Centre (HSTC) will inspect their capabilities before granting HSTC membership. HSTC has set up a new rule, under which securities companies, after getting operation licences, must go through a process of being inspected in terms of technical conditions and material facilities before getting HSTC membership. A council to be established by the trading centre will examine the companies to find out if they are technically capable of being granted membership. What worries securities companies most is that the new regulation by HSTC will create the ‘ask-and-grant’ mechanism and the so called ‘sub-licence’, a big social problem that needs to be cleared up. Meanwhile, HSTC’s Deputy Director Le Hai Tra affirmed that HSTC acted within its authorised power and in accordance with international practice. Mr Tra said that a licenced securities company did not automatically become a member of HSTC. He said that the New York Stock Exchange only recognised the membership of 1,336 securities companies out the several tens of thousands of securities companies in the US. “It is not difficult to give more tables and seats for securities companies’ staffs at the centre. However, we need to examine securities companies to see if they can meet requirements in terms of technology, service quality and a lot of other requirements,” said Mr Tra. However, the explanation by Mr Tra does not help dispel the worries of securities companies. A lot of questions have been raised: Why didn’t HSTC inspect the securities companies which were set up before? Will the previously established companies be inspected? The chairman of a big general corporation which is applying to set up a securities company belonging to the corporation wondered if HSTC was setting stricter regulations because it wanted to stop licencing new companies. It is clear that the announcement by HSTC on setting up stricter requirements on new securities companies has put investors, who are applying to establish 50 securities companies, on the edge. Securities companies have to do a lot of things to get an operation licence, and after getting the licence, they still have to exert more effort to get HSTC membership, which they called a kind of ‘sub-licence’. If a company cannot be granted membership, it means that it will go bankrupt, because no client will use the services of companies which are not recognised by HSTC. Yen Trang, Viet Nam Net

US$ deposit interest rates and loaning up, why?

16:59' 30/07/2007 (GMT+7)

VietNamNet Bridge – Since mid March 2007, many joint stock banks have raised interest rates on US$ deposits by 0.05-0.57% per annum. Outstanding loans in US$ have also grown more rapidly than VND loans with the growth rates of 19% and 13%, respectively. Joint stock banks: lacking capital in foreign currencies US$ deposit interest rates and loaning up, why? The raising of US$ deposit interest rates was initiated by joint stock banks, especially banks in Hanoi like Military Bank, VIB and Techcombank. The move later was followed by HCM City-based banks like Phuong Nam and Nam A. Other banks, though they have not adjusted interest rates, have launched promotional programmes in order to attract capital in US$. Why are Vietnamese banks still raising deposit interest rates while the US FED has decided to maintain the US$ interest rate at 5.25% (the rate is expected to remain unchanged until the year’s end) and there are no big fluctuations in the international market? Analysts have said that local banks have to raise deposit interest rates because they lack capital in foreign currencies. In general, in Hanoi, the proportion of mobilised capital in use is not high, at 61.3%; however, the figure is high among joint stock banks, at 82%. The liabilities in foreign currencies of eight joint stock banks in Hanoi are VND12.9tril, while the assets have reached VND13.7tril. Since the end of 2006, joint stock banks have been largely unsuccessful at raising mobilised capital. In Hanoi, the mobilised capital in foreign currencies has even decreased by 2%. Joint stock banks have not been able to mobilise much capital in foreign currencies from the public because people prefer depositing in VND to get more interest. Meanwhile, companies which can supply big sums of foreign currencies only have relations with state owned banks. In order to raise more capital in foreign currencies, joint stock banks have no other choice than raising deposit interest rates. Enterprises prefer loans in US$? The growth rate of loaning in US$ remains relatively high because of two reasons. First, enterprises try to import more goods and it is the time for disbursement for big projects. However, many experts say that this is not the main reason behind the interest rate increases. As for big projects, disbursement always goes in accordance with a scheduled roadmap, while it does not come in the second quarter only. Moreover, enterprises that have high demand for capital in foreign currencies contact state owned banks rather than joint stock banks. Meanwhile, state owned banks all said that the demand for foreign currencies had not increased considerably in the last three months, and that they could still supply enough foreign currencies. In fact, state owned banks have not raised their US$ deposit interest rates. As for the demand for foreign currencies to make payments for import deals, bankers have said that the demand always decreases to the deepest low in the second quarter and that the demand only increases at the end of the third quarter. Bank officials have pointed out that loaning in US$ increases because enterprises prefer borrowing in foreign currencies. It is to enterprises’ advantages to borrow in foreign currencies in comparison with VND, and in the current context of the exchange rate. The sharp increase of loaning in foreign currencies has raised doubts about loaning to the wrong subjects. Under current regulations, credit institutions can only provide loans in foreign currencies to clients which have turnovers in foreign currencies for paying debts, and clients which do not have turnovers in foreign currencies but have permission from banks to sell foreign currencies for paying debts and can show contracts on buying foreign currencies. As for banks, they are ready to lend money, no matter in VND or foreign currencies, if they can make profit on the deals. The director of a bank even said that banks could get more profit when lending in foreign currencies as enterprises use derivative products of banks, from which banks can collect fees. State owned banks drawn into the game? Though only joint stock banks have joined the move of raising deposit interest rates, state owned banks may get involved in the game. State owned banks are considering raising interest rates because they fear that joint stock banks will attract their traditional clients. The escalating deposit interest rates will certainly lead to the increase of lending interest rates. This will make credit contracts signed in previous years difficult to be disbursed (medium- and long-term interest rates are never fixed, but always floating). Meanwhile, expenses for paying debts in the medium term will be higher for the credit contracts signed at this moment. Experts have also warned that the increased interest rates would be a burden on small- and medium-size enterprises, a sector that plays a decisive role in export growth and national economic development. (Source: Lao dong, Viet Nam Net)

In good company

16:29' 29/07/2007 (GMT+7)

VietNamNet Bridge - If you’re looking to do a bit of team building a company retreat is the perfect challenge, discovers Duong Kieu Whether your staff is stressed out or is in need of a bit of bonding, you might be interested in new packages now available for company retreats with a focus on team building. Company retreats, also referred to as professional development seminars, are growing in popularity in Vietnam. Looking to capitalise on this growing demand, numerous travel agencies in Ho Chi Minh City have created team building packages. An itinerary will be devised incorporating games or services based on the requirements of each client that, whether indoors or outdoors, will energise the group, illuminate the issues at hand, and provide a welcome break from their sedentary jobs! “Our clients are mainly colleagues, loyal customer teams, directors or marketing agents with potential strategic clients, who usually combine internal meetings or business events with games to help them all relax and get to know each other,” says Minh Phuong, the marketing director of Vietmark travel agency. “We are tired of merely going sight seeing. What is interesting is heading out into nature then sharing the highs and lows with our colleagues and bosses,” says Huynh Nguyet Thu from SV technology after a successful teambuilding trip. Depending on the clients’ time, budget and trip’s main purpose, the agencies brainstorm the most suitable package. “Games could be indoor or outdoor but most prefer outdoor activities,” says Phuong. Such team building trips usually revolve around physical activities but more intellectual challenges are also used. The games help people work together. Office positions are left behind. Hidden talents are encouraged to emerge. “I really found it such fun and so encouraging to do this. On the trip there was no distance between us – juniors and seniors were side by side. We were all in the same boat, fighting, yelling and living life together!” says Le Tran Huong Lan, from Atlas Copco. “I was a little bit worried when I first heard the games explained but it was a great experience to have with my colleagues.” “We have to survey suitable places to organise each specific game package, in which we aim not to harm the environment and protect participants by providing medical support and rescue boats,” says Phuong. “I would never have believed that I could swim across a sea like I have just done on tour, which, I think, is down to being able to explore myself and realise everyone’ else’s strengths,” says Thu. Recommended Companies Vietmark, 166D Tran Hung Dao, D1, Ho Chi Minh CIty 08 404 3939 Lua Viet, 677 Tran Hung Dao D1, Ho Chi Minh CIty 08 923 2148 Saigon Tourist, 49 Le Thanh Ton, D1, Ho Chi Minh City 08 829 8914 (Source: VIR)

Legislators vote on leaders, members of NA bodies

16:21' 29/07/2007 (GMT+7)

VietNamNet Bridge - National Assembly deputies on July 28 voted on the posts of heads, deputy heads and members of the NA Council of Ethnic Minorities and other NA Committees and the Secretariat in charge of NA sessions. Ksor Phuoc was elected as Chairman of the Council of Ethnic Minorities and Nguyen Van Thuan was voted as Chairman of the Law Committee. Le Thi Thu Ba was elected to the post of Chairwoman of the Judicial Committee, while Ha Van Hien was voted as Chairman of the Economic Committee. Phung Quoc Hien was elected as Chairman of the Financial and Budgetary Committee and Le Quang Binh was voted for the position of Chairman of the Defence and Security Committee. Dao Trong Thi was elected as Chairman of the Committee for Culture, Education, Youth and Children and Truong Thi Mai was voted to the post of Chairwoman of the Committee for Social Affairs. Dang Vu Minh was elected as Chairman of the Committee for Science, Technology and Environment, while Nguyen Van Son, Chairman of the Committee for External Affairs, and Tran Dinh Dan, Head of the Secretariat in charge of NA sessions. As scheduled, the legislature will hold a plenary session on July 30 to hear reports presented by Prime Minister Nguyen Tan Dung on the number of Deputy Prime Ministers, the establishment and dissolving of ministries and ministerial-level agencies. (Source: VNA, Viet Nam Net)

Golf investors to the rounds of Long An

16:27' 29/07/2007 (GMT+7)

VietNamNet Bridge - Scores of investors are clubbing together to take a swing at winning golf projects in Long An province. Nguyen Huu Tuan, deputy director of the Long An Department for Planning and Investment, said nine investors were looking at golf and tourism blueprints for the Mekong Delta province. “We are happy to receive many projects in this field because these are highly benefitable,” Tuan said. However, Tuan said it was unclear whether the province had sufficient room to accommodate all the projects. While most of the projects would be located on the outskirts of the province, most of them each require 150 to 200 hectares. Tuan also voiced some environmental concerns. “Therefore, we need guidance from the Ministry of Planning and Investment about this,” Tuan said. Four of the projects come from South Korea, Hyoil, DM Lee, Genuwin D&C and the Viet-Han Join Stock Company while the rest are backed by domestic investors. Hyoil is the only firm which has been granted an investment licence. The company will build a $58 million, 36-hole golf course and resort in Thu Thua district’s My Phu commune. The first phase of the project is expected to be completed in 2010, with the entire 280ha complex slated for completion in 2015. DM Lee company is also processing procedures to build a golf course, villas, hotel and restaurants on a 300ha site in Can Giuoc district, while Genuwin D&C has signed an agreement with the local People’s Committee to build a golf course complex on 337ha in Thu Thua district. Meanwhile, Phu Quang New Residential Area Join Stock Company wants to build a residential area in Phuoc Lai district. The province is the ninth most successful in attracting FDI projects with 132 projects worth $1,134 million having arrived up to last month. (Source: VIR)

Western bride helps protect Vietnamese nature

16:19' 29/07/2007 (GMT+7)

Bettina and her mother back in Germany are playing traditional Vietnamese instruments VietNamNet Bridge – People in Na Hang district in the northern province of Tuyen Quang are all familiar with Bettina, a Vietnamese painter’s wife, who has worked to protect wildlife for 10 years. Ten years ago, from her home province of Baden Wuntemberg in Germany, Bettina first came to Vietnam to take part in a project to protect snub-nosed monkeys endemic to Tuyen Quang. At first, the sight of a blond girl was rather strange and unfamiliar to local residents. But Bettina was determined to learn Vietnamese in order to meet and mobilise local people to protect forests. Her efforts paid off. Local residents said they began to realise what was happening: a foreigner came from far away just to protect their own forests which they themselves had been destroying by felling trees and killing wildlife. To forestry officials in particular, she was like a sister who used to accompany them on their forest surveillance tours and never failed to tell local residents not to kill wild animals in an imperfect Vietnamese accent wherever she went. “If I didn’t know something, I asked. If I didn’t hear things clearly, I asked again. I spoke to people, and if they didn’t understand me, I explained until they understood,” said Bettina about her efforts to communicate with Vietnamese people in Vietnamese. So when Bettina recently returned to Na Hang, Tuyen Quang with a team from the University of Forestry to work on an agricultural support project she had persuaded Schmitz Stiftung Organisation to sponsor, she was instantly recognised and warmly welcomed. Since her first trip to Vietnam, Bettina has taken part in other wildlife protection activities. Protection seems to run in her blood. Once on her way from Tuyen Quang to Hanoi, Bettina happened to see a wild cat being sold on the road. She immediately called the Tuyen Quang Forestry Department’s head and told him to send somebody to pick it up. Yet, life in Vietnam means more than just wildlife to Bettina. Married to painter Tuan Anh, who won the first prize at the 2003 Vietnamese Art contest, she is also part of a Vietnamese family and fulfils the role of a Vietnamese wife, doing her share of cooking meals for her in-laws during Tet. “My heart belongs to Vietnam,” she said, smiling, and taking out a traditional two-chord fiddle to play a song. (Source: Tien Phong, Viet Nam Net)