TransViet joins global travel management firm

HCMC - TransViet Travel, a member of TransViet Group, has partnered with GlobalStar Travel Management, a worldwide network consisting of more than 75 market leading enterprises around the world and representing over US$13 billion in sales.

The Taiwan Tourism Bureau stages a traditional dance show of Taiwan at a press conference held in HCMC on Monday to introduce the Charming Taiwan in Vietnam - Photo: Mong Binh

Doan Van Truong, sales manager of TransViet Travel, said his company had become the only entity in Vietnam to join the worldwide travel management company, and that this would enable the local firm to handle more inbound guests and those corporate customers of the network in Vietnam.

TransViet Travel now is able to use the GlobalStar brand to attract clients and win more guests via introductions and proposals by the global company, which can create solutions to fit individual needs and delivers quality services in a multinational environment, Truong told the Daily on the phone on Monday.

Truong said the name of TransViet had been widely recognized at home and overseas through United Airlines and other some 10 foreign airlines that have chosen the local business as their general sales agent in Vietnam.

TransViet Travel has emerged as a leader in business travel in Vietnam after over 15 years of existence on the domestic market.

TransViet Travel said in a statement that joining GlobalStar Travel Management would bring the company more opportunities to expand its corporate client base and strengthen the position of a Vietnamese company in the global front.

Mark van Iersel, director of marketing and partner recruitment at GlobalStar, said in the statement that the company had seen an increase in demand for a local travel management corporation in Vietnam. “We feel that with the addition of TransViet Travel we can now meet our client demands by adding the best national choice in Vietnam.”

* The Taiwan Tourism Bureau will organize a two-day festival in HCMC from on Tuesday to highlight tourist attractions among Vietnamese travelers who are looking for new destinations for their leisure and business trips.

Suzy Yeo, who is a representative of the bureau, told reporters in HCMC on Monday that Taiwanese and Vietnamese travel companies would participate in the event entitled “Charming Taiwan” at the Now Zone shopping center in the city.

The participating companies will introduce their tours featuring cityscape, white-sand beaches, resorts and spas, a wide selection of foods, and shopping malls in Taiwan. Visitors can watch video clips about Taiwan as well as enjoy its foods, tea, games and traditional dances.

Yeo said the bureau expected at least 1,000 Vietnamese people would come to the event on the two days to explore what Taiwan could offer to local travelers.

Tank Lin from the bureau told the Daily after the press conference that this agency promoted Taiwan’s tourist attractions in Vietnam as the number of Vietnamese leisure and business travelers was increasing.

Lin put the number of Vietnamese visitors to Taiwan at 20,000 a year. He said Taiwan was small but presented charming offers, from scenery to foods and culture.

Ben Young, chairman of the travel firm Simba, said week-long package tours to Taiwan cost around US$750. But, Yeo said the price would change depending on hotel accommodations and services included in the tours.

The bureau put on the two-day festival in order to gauge the market demand and map out plans to promote Taiwanese attractions in Vietnam.

Vietnamese consumers now say “no” to Similac formulas

VietNamNet Bridge – After Abbott Laboratories Inc. announced it is recalling Similac brand beetle-tainted powder formulas, Vietnamese consumers have become hesitant to purchase Similac brand products.

The milk shops on Hang Buom Street in Hanoi these days receive a lot of people who come to ask information about Similac brand beetle-tainted powder formula. Nguyen Thi Hien, a customer, looked for a tin of Similac Gain. She carefully read the information written down on the label of the tin, especially the information about the manufacturing plant. However, Hien still felt insecure about the product and she decided to purchase products of another brand instead.

“I am so worried after reading the information about the beetle-tainted powder milk, because my son likes drinking Similac formulas,” Hien said. Though the boy has got used to drink Similac products, Hien still decided to shift to use other formulas.

Minh Nguyet in Lieu Giai street also thinks this way. She has stopped feeding her boy with Similac brand formula after reading the information about beetle-tainted formula which may badly affect children’s digestion system.

Formula sales agents also feel unhappy these days. Hoa, the owner of a milk shop on Hang Buom street said people come to her shop these days not to buy formulas, but to ask information about Similac brand products. Parents now tend to use other kinds of formulas because they fear the bad products will badly influence their children.

Hoa said that previously, she sold 10-15 tins of Similac brand formulas each day, but she now can sell only two or three tins.

According to local newspaper VnExpress, the products available at formula shops on Hang Buom, Tay Son and at Dong Xuan Market are made in Singapore, Denmark and Ireland, distributed inVietnam by Abbott Vietnam. The products include Similac Mom, Similac IQ 1, Similac Gain IQ which have the sale prices between 117,000-382,000 dong per tin.

Not only the shops that distribute products imported through official channel, the shops that distribute products carried across the borders to Vietnam by travelers also complain about slow sale.

According to the owners of the shops on Nguyen Son, Tran Duy Hung, Sai Dong, Kim Ma, Hoang Hoa Tham, Hue and Nguyen Thai Hoc streets, the products available here have been sent from abroad by relatives or carried across the borders by travelers. There are many products of these kinds, including Similac GO & GROW 623 gr (510,000 dong), Similac Advance With Early Shield 963 gr (820,000 dong), Similac Neosure 363 gr (410,000 dong), Similac Isomil Advance 963 gr (840,000 dong).

Minh Anh, now living in Dinh Cong residential quarter said she still hesitated to purchase Similac brand formulas, even though the sellers tried to persuade her that the products are safe.

“No one can say for sure if the products contain beetles or not. Abbot has announced the recall of five million tins, which is really a high number of products,” she said.

Thu, the owner of a shop on Hue street, said customers do not know exactly which kinds of products contain beetles, therefore, they hesitate to buy all kinds of products.

“Previously, I could sell 50 tins of formulas per day, while now I can say only several tins per day, even though I have reduced the sale prices by 20 percent,” she said.

Representative of Abbott Vietnam recently affirmed that Similac brand products sold in Vietnamare the products distributed by 3A Pharmaceutical Company which are made in Abbott’s plants inSingapore and Ireland, and that the products are not the subjects of the product recall campaign in the US.

Meanwhile, the Ministry of Health has affirmed that Similac brand products sold in the US, Puerto Rico, Guam Island and some countries, in which beetles found, have not been officially imported to Vietnam. To date, all Similac brand products distributed by 3A Company have been examined and certified as meeting the food hygiene requirements.

Source: VnExpress

HCM City: Hundreds of residential areas face power cuts

VietNamNet Bridge – The HCM City Power Corporation has announced electricity cuts of 30 minutes to five hours in 300 residential areas from September 29 to October 5.

The power cuts will be mainly from 8am to 1pm or from 9am to 2pm. In some areas in 50 wards and communes, electricity will be cut off at night for 30 to 90 minutes. Some residential areas in Binh Chanh, Cu Chi and Thu Duc will endure power outages several times next week.

HCM City Power Corporation explained that it would cut power to repair its transmission lines and also because of the power shortage.

“If the source of supply is in shortage, the system will automatically cut off power. We can’t control it and don’t know which areas will be out of power beforehand,” admitted Nguyen Anh Vu, the corporation’s chief of Public Relations Department.

Another official from HCM City Power Corporation commented that, since it is the rainy season, electricity consumption has lowered, but there is still a power shortage. Recently, some residential areas in HCM City had blackouts 7-9 times a day or every evening of the last month.

The corporation confirmed that power outages in HCM City have no relation to Hanoi’s 1000^thanniversary. The shortages are mainly caused by the repair and overhaul of some thermo-electric plants and unfixed incidents at some turbines of Hai Phong, Quang Ninh and Cam Pha thermo-power plants. Water levels at reservoirs are also lower than the average of previous years.

While some provinces are suffering power cuts, more electric lights are being hung on Hanoi streets. An official from the Ministry of Industry and Trade confirmed the Prime Minister’s instruction on power thrift is still effective, but Hanoi had priority to Hanoi because the city will celebrate its 1000^th anniversary, a great cultural and political event for Vietnam.

According to Electricity of Vietnam Group (EVN), Hanoi uses around 30 million kWh a day. The output for HCM City is up to 43 million kWh per day while it is only 16.2 million kWh a day for the central region, including 3.6 million kWh a day for Da Nang city.

EVN confirmed priority for Hanoi during its great anniversary. However, a deputy general director of EVN told the press that it is unreasonable when many places are dark and yet some Hanoi streets have up to four lines of electric lights.

EVN has asked the Ministry of Finance and the State Bank of Vietnam to issue international bonds worth $1 billion to have reciprocal capital for its thermo-electric projects. It also asked related ministries to approve its scheme early to issue 5 trillion dong ($263 million) domestic bonds to have capital for some power projects.

Vietnam’s economic growth quickened to 7.16 pct

Vietnam’s economic growth accelerated in the third quarter indicating full-year expansion may be the fastest since 2007, boosted by gains in industrial production

Gross domestic product advanced 7.16 percent in July through September from a year earlier, according to figures released Tuesday by the General Statistics Office in Hanoi. The economy expanded at a 6.4 percent pace in the second quarter.

Industrial output, retail sales and credit growth have fueled Vietnam’s recovery from last year’s global recession. The economic expansion may exceed the government’s 6.5 percent target for 2010, with the ruling Communist Party aiming for a 7.5 percent increase in GDP next year even as inflation quickens and the trade deficit widens.

The nation’s third-quarter acceleration “contrasts with just about everywhere else” in Southeast Asia as the region is losing growth momentum, Kevin Grice, a London-based economist at Capital Economics Ltd., said in a Sept. 27 note. “On the output side, the upswing is being led by industry and construction.”

The State Bank of Vietnam weakened the dong’s reference exchange rate by 2 percent in August in a bid to curb the trade gap. The shortfall widened to $1.05 billion in September even after the devaluation, while inflation accelerated for the first time in six months to 8.92 percent, more than the government’s 8 percent goal, recent reports showed.

The dong traded at 19,490 per dollar at 3 p.m. Tuesday in Hanoi from 19,099 before the devaluation was announced. The Ho Chi Minh City Stock Exchange’s VN Index rose for a second day, closing up 1.1 percent to 455.13.

‘Strong growth’

The economy grew 6.52 percent in the first nine months of 2010 compared with a year earlier, Tuesday’s data showed. A full- year gain of more than 6.2 percent would be the fastest since 2007’s 8.5 percent.

“The economy continues to show strong growth momentum,” Johanna Chua, the Hong Kong-based head of Asian economic research at Citigroup Inc., said in a note this month. “Domestic demand remains resilient.”

Vietnam’s government has been urging banks to cut interest rates to bolster lending, which increased 16.3 percent in the first eight months of 2010 from the end of last year, according to central bank data.

“Bank credit growth has picked up again, after slowing sharply at the beginning of 2010, and is now expanding at a pace close to the 25 percent” government target for this year, Capital Economics said last week. The nation’s GDP may increase 7 percent in 2011, the UK-based company said.

IMF analysis

While the government is concerned that high lending rates could affect industrial activity, “premature” monetary loosening may cause a “deterioration” in the trade deficit and boost inflation, the International Monetary Fund said in a report this month.

Such an outcome may lead to “sharp tightening measures at a later date with high costs to the economy,” the IMF said.

Inflation has remained above the government’s target for eight straight months, while the trade deficit reached $8.58 billion for January through September.

Industry and construction, which accounted for 41 percent of GDP, grew 7.29 percent in the first three quarters, the statistics office said today. Construction by itself expanded 10.25 percent during the nine-month period.

Services, which comprised 38 percent of the economy, grew 7.24 percent in the first nine months. Hotels and restaurants expanded 8.28 percent, as the number of foreign visitors to Vietnam advanced 34.2 percent from the same time a year earlier. Financial services gained 7.94 percent.

Agriculture, forestry and fisheries, which made up the remaining 21 percent of the economy, expanded 2.89 percent in the first three quarters. Vietnam is the world’s second-biggest exporter of both rice and coffee

Source: Bloomberg

Ban on listing real estate prices in foreign currencies an unfeasible task

Violation of regulations in listing real estate prices in foreign currencies by investors, brokerage companies has become a common occurrence.

Under the Ordinance on Foreign Exchange issued by the National Assembly (NA) Standing Committee, all transactions and payments in Vietnam must be conducted in the Vietnam dong not in foreign currencies.

However, many real estate business projects are currently being transacted in US dollars. This takes place openly more often than not which have negatively affected buyers due to the ever-rising price of the US dollar against the Vietnam dong, while businesses and investors easily make huge profits without being fined by functional agencies.

A typical case in point is the high-rise apartment building project run by a Korean group Keangnam Landmark Tower in Tu Liem, Hanoi. The price of Keangnam Landmark Tower apartments listed at CBRE Vietnam and Savills Vietnam stands at US$2,800-3,300/m2 regardless of changes in US dollar-Vietnam Dong exchange rates. Property market reports from these agents give detailed information on selling prices, rental prices and service costs for various apartments, offices and retail space in US dollars and all transactions in the Vietnamese currency are not acceptable.

Similarly, apartments at the Indochina Plaza Hanoi project in Cau Giay district, Sky Tower, Mulberry Lane and Park City projects in Ha Dong are listed at prices, ranging from US$1,800 to US$3,000/ m2.

More surprisingly, some real estate projects run by Vietnamese investors also use US dollars for transactions. For instance, urban projects such as Usilk in Ha Dong, Mipec Tower in Dong Da district and Thanh Cong Tower in Thai Ha list selling prices in US dollars, from US$1,000-2,000/m2.

Early last month, the State Bank of Vietnam (SBV) asked its Hanoi and HCM City branches to strictly ban construction businesses and investors from listing real estate prices in foreign currencies as many of them often sign apartment sale contracts in foreign currencies, primarily in US dollars.

According to a report of the SBV, the act not only violates legal regulations on foreign exchange management but also directly affects citizens’ rights,.

Years ago, the Ministry of Industry and Trade (MoIT) issued a circular on guidance and management for price listing. Accordingly, listing prices of goods, services or payments in foreign currencies without authorisation will be fined VND20-30 million.

Although the ban on listing prices and payment in foreign currency was issued several years ago, almost no real estate businesses have got fined. On the other hand, the maximum fine of VND30 million is quite small compared to the huge profits real estate businesses have earned after the SBV adjusted the Vietnam dong/ US dollar exchange rate.

Because payments are in US dollar, real estate buyers are always concerned about the exchange rate between the Vietnam dong and US dollar.

Since the third quarter of 2008 when the Keangnam Group sold their flats at the Keangnam Landmark Tower, the average inter-bank Vietnam Dong/US dollar exchange rate has increased by 12 percent. This means that from the first payment in US dollar until the flat is handed over to the buyers, the investor and sales agent can earn hundreds of millions of Vietnam dong from the buyers.

On August 17, 2010, the SBV increased the exchange rate from VND18,544 per US dollar to VND18,932 per dollar. One day later, the exchange rate on free market rose from VND19,270 to VND19,500.

As a result, for a 100sq.m flat sold at US$3,000 per sq.m, buyers had to pay tens of millions of Vietnam dong to the investor overnight. People’s rushing to buy US dollar made its price rise sharply on the free market. The slower they pay off the flat the greater their losses are. This explains in part why commercial banks are always short of US dollars to sell to businesses. With a boom in real estate projects across the country there is no doubt that billions of US dollars fall into the hands of investors every year.

VOV

Japan ICT companies back to Vietnam for business

HCMC – Japanese information and communication technology enterprises are coming back to Vietnam to grasp business opportunities after an interruption caused by the financial crisis since end-2008, heard the Vietnam Japan IT Day in the city on Monday.

Kenji Ogawa (L), vice chairman of the Information Technology Promotion Agency (IPA-Japan), and Pham Tan Cong (R), general secretary of Vinasa, congratulate each other on the signing of the MOU on development of the human resource valuation system applicable to Vietnam ICT enterprises - Photo: Hien Nguyen

The event, organized by the Vietnam Software Association (Vinasa) and Vinasa Japan IT Cooperation Club, is attended by about 50 Japanese enterprises like NEC, GDS and Cybozu, Pham Tan Cong, general secretary of Vinasa, told the Daily on the sidelines of the event.

Many Japanese ICT firms shut down their Vietnam branches in the aftermath of the crisis, Cong said, and 2009 was a tough year for the Japanese ICT industry although Japan was a huge market with annual turnover of US$130 billion.

Vietnam’s software outsourcing sector also felt the impact of the Japanese ICT sector’s woes since it is recognized as the third largest partner of Japanese firms.

FPT, the country’s biggest ICT enterprise, was hurt when ICT companies of Japan left Vietnam; about 56% of its revenue came from Japan’s market.

“A tough period seems to be over. On Tuesday Japan ICT companies are back to Vietnam and they are searching for new partners and new business opportunities,” Cong noted.

Since early this year, he added, Vietnamese and Japanese ICT companies have exchanged many business matching trips and clinched a lot of high-value deals. “It’s a good sign for the Vietnam software outsourcing sector.”

Hiromi Sugiyama, vice chairman of the Japan Information Technology Service Industry Association, said the worst for Japan’s ICT industry was over and that it was time for it to explore new partners and business deals.

Vietnam’s software outsourcing segment is recognized as a key partner of Japan, Sugiyama said, adding embedded software development, business application software development and data entry were in need of Vietnamese firms.

He said Japan’s offshore outsourcing volume grew rapidly, from US$1.37 billion in 2004 to US$4.33 billion in 2008. Vietnam ICT enterprises are mostly likely to gain slice of this huge pie.

“Japan is a serious market. To win a contract from the market, Vietnam ICT companies should enhance the quality of IT developers’ skills and of services,” he noted.

On Monday saw Vinasa signing a memorandum of understanding with the Information- Technology Promotion Agency (IPA-Japan) to promote the human resource valuation system in Vietnam ICT enterprises.

IPA will provide technical support for Vinasa to build up the system and deploy it by early 2011.

In a related development, the Taiwan External Trade Development Council (TAITRA) in Vietnam on Monday launched a campaign to promote its information technology products here in the local market.

The Taiwan Excellence campaign is organized by TAITRA and supported by 17 selective Taiwan information technology brands including ASUS, MSI, D-link, BenQ, Genius and Optoma.

TAITRA said it would organize a Taiwan information technology expo in HCMC next month to promote its products locally.

The Ministry of Information and Communications reported that between 2000 and 2009, Vietnam’s IT industry grew at double digits, 20-25% a year.

By Hien Nguyen - The Saigon Times Daily

Sept dollar credit growth up strongly in HCMC

HCMC – Outstanding loans in foreign currency, mostly the U.S. dollar, at credit institutions in HCMC by the end of this month are forecast to expand 36% from late last year to VND186.1 trillion, according to central bank figures.

The figures from the central bank’s HCMC branch show September dollar credit growth at commercial banks in the city is seen reaching 6.1% month-on-month, up from the 1% recorded in August.

Banks have reported an 8.5% rise in September dollar mobilization from August after they hiked dollar deposit rates early this month. Meanwhile, the amount of dollars raised in August was down 4% month-on-month.

Therefore, banks in the city may have raised a total of VND181.25 trillion by late this month, up 8.4% from late 2009. So outstanding dollar loans continue surpassing mobilization in September and part of the reason is that foreign banks have ample cheap dollar funds from their mother banks and foreign institutions.

In contrast to the dollar mobilization, HCMC banks’ Vietnam dong fund raising in the first nine months this year has been higher than credit growth. By late September, the volume of dong deposits is projected to amount to VND530.7 trillion, up 21.7% from late last year, and outstanding loans VND463.3 trillion, up 9.4% from late 2009.

Trade promotion campaign scheduled in North America

Activities to promote exports to the North American region will be held in the fourth quarter of the year, the Ministry of Industry and Trade’s American Market Department (AMD) has announced.

The exports promotion programme jointly held by the AMD and the Vietnam Trade Offices in Mexico and Canada will involve textile and garment, footwear, seafood, furniture, handicraft and processed fruit and vegetable businesses.

The North American Free Trade Area (NAFTA) comprises the US , Mexico and Canada , all of which are important markets for Vietnam's goods, particularly fruits and vegetables.

Statistics from the General Customs Department show the total turnover of vegetables and fruits exported to the region reached US$2.8 million in July 2010, a year-on-year rise of 21.7 percent and is predicted to increase in the remaining months of the year.

Work starts on tourism property project in Vung Tau

HCMC - Hoa Anh Dao Tourist JSC held a ground breaking ceremony for a tourism complex project in the southern coast province of Ba Ria-Vung Tau over the weekend, adding to the province’s growing list of resorts under construction.

Ho Van Nien (2rd, R), vice chairman of the People’s Committee of Ba Ria-Vung Tau Province, celebrates the ground breaking ceremony of the Oceanami Resort & Luxury Home over the weekend - Photo: Dinh Dung

The developer said it invested some VND1,150 billion to develop the Oceanami Resort & Luxury Home project in Phuoc Hai Town in Dat Do District, near historic Minh Dam mountain, where the Vietnamese military base used to be.

The project, covering 21 hectares on nearly one kilometer of beach, is designed with a five-star hotel with 200 guest rooms, 28 bungalows, two blocks of five-story buildings with 100 apartments and some 180 luxury villas. The plans include a convention center, restaurant, spa, swimming pool and marina.

Speaking at the event, Ho Van Nien, vice chairman of the province, elaborated on Ba Ria-Vung Tau’s plan, saying the province has done everything possible to exploit its 100km coastline.

Nien said the investment environment has improved with a lot on offer to attract international investors to the province. There about 100 tourism property projects underway in the province, including the Oceanami Resort & Luxury Home.

The project is scheduled for completion by 2012, with villas priced between US$364,000 to US$1.3 million per unit.

By Dinh Dung - The Saigon Times Daily

Consumer price index leaps 1.31% in September

The consumer price index in September soared dramatically by 1.31 per cent over last month, a leap that was three times greater than forecasts by the Market Watch Team.

The CPI rise sparked concerns that the year would end with a high annual inflation rate.

Do Thi Ngoc, an expert from the General Statistics Office, said the high increase in CPI this month was part of a trend in annual cyclical inflation fluctuations in Viet Nam.

On aggregate, the CPI rose 8.92 per cent over the last 12 months, and 8.64 per cent in comparison with the first nine months of last year.

Ngoc said two of the reasons for the strong increase in CPI during September were a rise of 2.32 per cent in food prices and a hike of 12.02 per cent in education services, while school fees increased by three to four times in 36 cities and provinces.

Another reason was an increase of 2.1 per cent in the depreciation of the Vietnamese dong compared to the US dollar, which in turn, hit a series of imported products, including construction steel, fuel and gasoline.

In addition, outbreaks of blue-ear pig disease also caused food and meat prices to soar.

A long National holiday spurred consumption and domestic tourism, a sector that saw price rises of nearly 0.8 per cent in food and restaurant services.

Gold saw a robust increase of 3.58 per cent in price this month, a rise of 37.39 per cent in comparison with the same period last year. Meanwhile, the US dollar increased 1.61 and 7.08 per cent, respectively.

Only post and telecommunications groups saw a decline in prices of 0.07 per cent this month.

Several provinces saw a high CPI, including Khanh Hoa (2.79 per cent); Thua Thien-Hue (1.89 per cent) and Can Tho (2.97 per cent).

The GSO’s experts also predicted that from now until the end of the year, the CPI will fluctuate due to increases in essential commodities prices, a continuous depreciation of the Vietnamese dong compared to the US dollar and price hikes for input materials for production and import products.

Also, consumption will soar next month during celebrations of 1,000 years since the foundation of Ha Noi, along with Christmas and the new year. Therefore, CPI for the year will likely be higher than 8.5 per cent.

CPI rises in major cities

The CPI in HCM City increased by 0.97 per cent compared to last month, after two consecutive months of decline, according to the city’s Statistics Office.

The city’s CPI in September rose 7.59 per cent compared to the same month last year.

Since the beginning of the year, the CPI has increased 5.54 per cent.

September was also the only month of the year that the prices of all 11 commodity groups in the price basket increased against last month.

Of the 11 commodity groups, the education category saw the highest increase of 5.57 per cent as September is the traditional start of the new school year. Most schools have raised tuition fees for the new school year.

The culture-sports-entertainment sector had the second-highest increase with 1.51 per cent, followed by the transport with 1.13 per cent.

Meanwhile, the CPI in Ha Noi also increased by 0.96 per cent compared to last month, according to the Ha Noi Statistics Office.

Ha Noi’s CPI in September increased by 9.05 per cent compared to the same period last year.

In September, gold prices were up 3.57 per cent over last month and the US dollar rose by 1.35 per cent against the Vietnamese dong.

Dr Tran Hoang Ngan, deputy rector of the University of Economics in HCM City, said that if the trade deficit was not managed more effectively, the time period between the rise of the US dollar against the Vietnamese dong would eventually become shorter, affecting macroeconomic stability, production and trade.

VietnamPlas, Linkage exhibitions open in city

The 10th Vietnam International Plastics, Packaging, Printing and Food-tech Industry Exhibition, or VietnamPlas 2010, opened on Wednesday at the Saigon Exhibition and Convention Center in HCMC’s District 7.

Visitors view a machine at the show

The exhibition is attended by some 225 professional exhibitors from host Vietnam, China, Germany, India, Hong Kong, Japan, Malaysia, Singapore, the Netherlands, Taiwan and Vietnam among others.

On show are advanced, high-tech machinery and equipment such as plastic injection molding machines, plastic woven bag machines, turn-key equipment of mold and die manufacturing plant, and other equipment related to packaging, printing, and food processing.

Meanwhile, Linkage Vietnam is concurrently held with VietnamPlas 2010 with the participation of 130 exhibitors from 12 countries and territories.

Linkage Vietnam focuses on metalworking, industrial automation, energy and electricity, and environmental protection.

The organizers of the two events under one roof are Vietnam’s Vinexad, Vietnam Plastics Association, Vietnam Rubber Association, Taiwan’s Chan Chao International Co., Ltd, and two Hong Kong partners.

Making green money

Green products are becoming much more favored by consumers all over the world. That’s why green values, including the manufacturing process that leaves little impact on the environment and energy-saving products, are recognized not only as social responsibility but also a new promising area of doing business.

PEB Steel Buildings Co., Ltd., which came to Vietnam in 1994, is one among many enterprises that are promoting green products now that the awareness of environmental protection is rising. The company is the first pre-engineered steel building manufacturer in Vietnam to become a member of the U.S. Green Building Council. The firm’s commitment to environmental protection takes many forms in the design and use of materials for its projects.

PEB Steel Vietnam workers assemble a steel structure

Although PEB Steel Buildings has long supplied green pre-engineered buildings which help save on energy, only last year did the company begin to promote the green values of its products after winning a bid to supply structures for green industrial projects of Nike subcontractors in Tay Ninh Province. The factory covering 220,000 square meters is invested by Taekwang Vina, who requested that the Environment Conditions be satisfied by using materials which meet the Leadership in Energy and Environmental Design (LEED) requirements.

The LEED Green Building System was established in 1993 by the U.S. Building Council to provide criteria for rating the energy efficiency, public health benefit and low-impact design of new and existing structures.

“Last year, after winning the contract for the green projects, we realized that our products could meet the environmental requirements. So why not promoting the green values?” says Vo Hoang Dung, marketing manager of the company. She notes green values are being touted as an advantage of the company, and more environment-minded customers are coming.

To meet LEED green requirements, PEB Steel Buildings chooses environmentally friendly products and materials, including spangle galvanized lead-free purlins, non-chromate steel sheet for roofing and wall system, and wall system with high solar reflectance among others. Besides, the company’s buildings are designed to ensure fullness of natural lights, and little heat to limit usage of electric lighting and air-conditioners, thus saving on energy.

In another development, the company itself is trying to save the energy in its operations. Nabil Khalaf, plant manager in the PEB Steel Buildings factory in Ba Ria-Vung Tau Province, says the company cuts the electric bill by over 20% by reducing energy consumption through the use of energy-efficient lighting, high-performance building exterior walls with improved insulation, and high-efficiency mechanical systems.

Raising awareness of staff is also an important part of the energy-saving drive

“We always train staff and workers how to be environmentally friendly and use power only when needed,” says the manager.

Toshiba opens industrial motors plant in Dong Nai

Toshiba Industrial Products Asia Co., Ltd. on Wednesday officially opened a new plant in the southern province of Dong Nai, manufacturing high-efficiency industrial motors for export.

A worker lubricates a motor at the new factory of Toshiba Industrial Products Asia Co., Ltd. in Dong Nai Province

The tripartite joint venture grouping Toshiba Corp. (60%), Toshiba Industrial Products Manufacturing Corp. (30%), and Toshiba Industrial Products Sales Corp. (10%), will turn out motors of 100 horsepower or less at Amata Industrial Park in Bien Hoa City of the province.

Initial products will be exported to the U.S., which has made legislation for high-efficiency motors, and to China, the rest of Southeast Asia, Australia, Europe and Japan, according to the company.

A growing global awareness of the need for enhanced environmental protection has spurred demand for high-efficiency motors that consume less power and emit less CO2. Governments around the world are also responding to this trend.

Key features of Toshiba high-efficiency motors include low noise, high reliability, and achieving 30% reduction of energy loss, according to the company.

“The high-efficiency industrial motors made by Toshiba Industrial Products Asia Co., Ltd are used in many countries, including the U.S. as a solution for environmental protection and energy saving,” said Norio Sasaki, president and CEO of Toshiba Corporation.

This is the fourth manufacturing base of Toshiba worldwide, after the ones in Japan, the U.S., and China.

Toshiba Industrial Products Asia Co. has spent US$29 million for the first phase among the total investment capital of US$100 million. The joint venture will disburse more to reach some US$40 million next year.

Its construction began in April 2009 on an eight hectares. In 2015, the plant will ship up to 1.2 million motors a year to the global market, and is expected to provide employment for 500 people.

Papa

http://www.youtube.com/watch?v=3MTL7OMfFro

Vincomin wants the Red River’s coal

Vinacomin has its sights set on mining the Red River basin for coal with the help of Australian and Japanese companies.

Exploitation of the Red River coal basin mainly serves for power production

Vietnam National Coal-Mineral Industries Group (Vinacomin) said it plans to submit an exploitation plan for the Red River Coal Basin to the Ministry of Industry and Trade for approval. The firm is joining hands with Australian and Japanese partners to pilot coal mining at two mines at the basin with an initial cost of $10 million each.

Vinacomin General Director, Tran Xuan Hoa, said capital is the main factor for the coal exploitation pace at the basin, adding that cost for exploration to appraise the reserve can be $2.5 billion.

Hoa added that Vinacomin is also cooperating with authorities in the northern province of Hung Yen to define restricted areas for mining.

In an effort to save time, Vinacomin has also issued a proposal to the Ministry of Natural Resources and Environment to be given exploration rights after the ministry finishes its assessment on the basin’s geological condition. It would take between seven and eight years to build mines for exploitation, Hoa emphasised.

Once the mining plan is approved, Vinacomin will select suitable exploitation technologies for the Red River basin based on pilot results.

The general director estimated that Vietnam will be 6 million tonnes short of coal for power production annually from 2015 onward. Currently, coal exploitation mainly focuses on the coal basin in northeastern Quang Ninh Province with reserves of around 10 billion tonnes.

The Red River basin, covering 3,500 square kilometeres, stretches across the northern provinces of Nam Dinh, Hung Yen and Thai Binh, is estimated to have reserves of 210 billion tonnes of coal, a big material source for building thermal power plants.

New energy for Vietnam: Producing power from rice husks

VietNamNet Bridge – A top rice producer like Vietnam also produces lots of rice husks. In the Mekong Delta, entrepreneurs are learning how to turn this ‘waste’ into electricity.

’Waste’ rice husks enroute to a brick kiln in the Mekong Delta province of Vinh Long.

In 2007, Vietnam produced nearly 36 million tons of rice, over half of it in the lush, sprawling Mekong Delta. It also ‘produced’ 7.5 million tons of rice husks.

About half the volume of rice husks is used to feed cattle or make fertilizer or plywood. Some of it fuels brick kilns. However, about half is just wasted.

The redundant rice husks are a headache for many rice millers because they have no place to put it. During the harvest seasons, some pay a lot of money to have the heaps of husks carried to rubbish dumps. Some just dump the rice husks into rivers (which is of course illegal).

Not surprisingly, it has occurred to entrepreneurs and renewable energy experts that rice husks can be used to generate electricity. The experts say that 1.6-2.2kg of rice husk is enough to create 1kWh of power.

Tran Quang Cu of the International Finance Corporation (IFC, an arm of the World Bank) advocates that Vietnam set up medium-sized power plants fueled by rice husks of 160-180 megawatts (MW) in capacity near rice growing areas. By burning 1.5 million tons of rice husks a year, Cu says, Vietnam can produce 1-1.2 terawatt hours of power.

In the Delta, a kilo of rice husks currently costs only 200-300 dong – that is, it’s practically free to anyone who will haul it away. Rice mills in the Mekong Delta are mainly located along rivers so it is convenient to transport rice husks to thermo-power plants.

In Southeast Asia, experimentation with rice husk power plant projects started in the mid 1990s. Two projects implemented in Thailand demonstrated their feasibility. Project developers in Southeast Asia gained confidence by visiting these projects. Today, many more such projects are in various stages of development and implementation.

From the technological perspective, in the last 10 years, most problems have been solved. Today the plants are fully automated and, for well designed plants, the efficiency of the boiler and the overall efficiency of the power plant are very good.

There has also been considerable reduction in the total investment cost, mainly due to the competition of a dozen boiler suppliers who have mastered the technology.

Most plants are much smaller than the power plants suggested by the IFC’s Cu. In Thailand, they range from 22 MW down to two MW. A 50 MW plant was studied, but due to the problem of fuel security, that project did not materialise. A 30 MW power plant was studied in Philippines and it also was abandoned due to fuel collection and transportation issues.

By contrast, an average-sized coal-fired power plant will produce about 600 MW of power.

With advancement in technology, some of the projects produce high quality silicate ash that’s valuable as fertilizer. It is exported to Europe, Japan, Korea and other countries for as much as $400/ton. Some projects focuses more on rice husk ash than power. This solves the ash disposal problem, as rice husk contains up to 20 percent ash.

Vietnam hops on the bandwagon

Nearly a dozen rice husk-fuelled power plants are underway in the Mekong Delta. They include two in An Giang province - one in the Hoa An industrial zone in Cho Moi district and the other in Thoai Son district.

The first plant is built on an 18 hectare lot with 10 MW capacity and total investment of over $10 million by Dong Thanh, a local company. The second plant also has 10 MW capacity and is built by a local firm, with a reported investment of $15 million. These two plants will consume around 240,000 tons of rice husks a year.

In Tien Giang province, the local authorities have approved a 10 MW rice-husk power plant worth $18.6 million.

In Dong Thap province, Duy Phat JS Company is licenced to build a 10 MW factory in Lap Vo district, at a cost of 296 billion dong ($16.4 million).

Kien Giang province is searching for a good place to build an 11 MW factory. By building this factory, the investor aims to earn emissions reductions offsets of over 27,000 tons of CO2 and CH4.

In Can Tho City the Dinh Hai Thermo-power JS Company has built a rice-husk power factory in Tra Noc industrial zone. This company is also cooperating with J-Power (Japan) to build another 10 MW plant in Thot Not district that will use around 80,000 tons of rice husk a year.

J-Power said that if this plant operates successfully, it will joint-venture 10-15 husk-fuelled plants in the Mekong Delta.

Vietnam’s mooncakes ‘grease wheels of commerce’

Vietnam’s appetite for mooncakes is rising as adults use the annual treats, traditionally enjoyed by children, to grease the wheels of commerce.

Mooncakes are a sweet, round delicacy given to youngsters and offered to ancestors during Vietnam’s Mid-Autumn Festival, which falls on Wednesday.

But in Vietnam’s rapidly developing economy they have taken on increased importance for grown-ups who use gifts of mooncakes to build business relationships.

Boxes of mid-autumn moon cakes are displayed at a shop in downtown Hanoi.

Most of the cakes sell for about one dollar but others, sometimes elaborately packaged and made with expensive ingredients like birds nest or crayfish, can retail for almost VND2 million (US$101).

That is almost three times the official minimum monthly wage for civil servants.

“Those are for the rich, and for bosses,” Nguyen Thi Hoai, 42, who makes her living collecting used paper products, said outside one of the many temporary mooncake shops which have opened around Hanoi.

High-priced mooncakes “are for someone who wants to show off,” a housewife who gave her name only as Huong said as she passed a shop where cakes sold for between VND200,000 and 700,000.

One boxed gift contained eight small mooncakes, their traditional accompaniment of tea, and the modern twist of a bottle of wine – all for VND1.5 million.

Tran Hung Lam, 38, a motorcycle taxi driver, said he saw some people carry out five or even 10 big boxes of high-end cakes from a shop near his parking spot.

“Not worth the money,” Lam declared.

For many people, though, they are.

One woman who works for a large private firm said mooncakes are a way to thank clients, business contacts and bosses for their support.

The cakes are a way to “expand relations,” added the woman who declined to be named. She said her company bought its mooncakes from a luxury hotel, not an ordinary mooncake shop.

The Vietnam News on Friday quoted Nguyen Xuan Luan, deputy director of a major national bakery firm, as saying orders of its luxury Golden Moon cakes were up 20 percent on last year.

Large companies order the cakes to present to staff “and partners”, said Luan, of the Kinh Do company.

Thang Long-Hanoi brand mooncakes had also sold well, even at VND1.8 million for a box of four, he was quoted as saying.

More down-to-earth cakes, which can look something like an Australian meat pie, often contain a green-bean paste and come in a cheap plastic wrapper.

They are commonly given to teachers during the festival, which originated as a way to mark the end of harvest and is also celebrated by Chinese communities around Asia.

Mid-Autumn Festival, one of the most important celebrations in Vietnam’s Chinese-influenced culture, is a time for children to receive toys and is marked with colorful lanterns and lion dances as well as mooncakes.

“It is traditional that one offers a box of these special cakes to someone that you want to please or owe a favor, like your landlord or the local police,” said a supplement to the Vietnam Economic Times.

Gift-giving is part of the culture in Vietnam, but the country is also rated as one of the world’s most corrupt.

Everyone from traffic police to health workers and teachers are widely alleged to receive payoffs.

Gift-giving is not necessarily corruption but could be, said Matthieu Salomon, international senior adviser to Towards Transparency, a local non-governmental organization acting as the “national contact” point for Transparency International, the German-based global anti-corruption network.

“It depends on the value of the present,” said Salomon, whose group is not a chapter of Transparency International.

“It also depends on how people perceive the present, especially whether they feel obliged to offer it and whether people who receive it think they have to give something in exchange.”

Nguyen Thi Tham, 39, who earns about VND60,000 a day, said she did not know whether giving cakes constitutes bribery.

“But Mid-Autumn Festival is the time to show gratitude to certain people,” she said.

Lending rate almost beyond enterprises’ reach: report

HCMC – Many local enterprises are taking out short-term loans with interest rate of more than 12% a year, which they say they can’t afford for a long time, according to a survey report released on Thursday.

The organizers of the survey Vietnam Business Insight Survey announce the results at a conference in HCMC

The Vietnam Business Insight Survey, conducted among nearly 400 enterprises in the country, shows the current interest rate of short-term loans is nearly touching the unaffordable level for many local companies. It means many of them are hardly able to burden the high rate any longer.

The survey is made every quarter by the Vietnam Chamber of Commerce and Industry (VCCI) in co-ordination with the General Statistics Office and Asia Competitiveness Institute, under the financial support of the Asia Foundation.

In details, two-thirds of nearly 400 corporate respondents are borrowing short-term loans at an annual interest rate of more than 12%. About 60% of these enterprises say the lending rate is unreasonable, and 36% of them can’t afford the high capital cost loans in the long term.

Therefore, instead of borrowing from banks, they resort to other capital sources to support their operations and production, which negatively affects their investment strategy. According to the survey, about 94% of business respondents say under-12% lending rate is reasonable for them.

Besides the expensive loans, the survey found many local companies are facing challenges from lack of electric power and skilled labor, and traffic congestion.

In addition, local companies are coping with obstacles from the current business environment, said Vu Kim Hanh, vice chairwoman of Leading Business Club, at a conference to release the survey in HCMC.

Hanh explained that they suffered fierce competition from fake, cheap and smuggled goods. Hence, some of them stopped their production and were having their products outsourced to China then labeled “Made in Vietnam” to reduce costs of the products.

“Even some companies recognized as producers of high-quality Vietnamese products are outsourcing to China and label the goods as domestically made,” she said.

Hanh added that local enterprises also told her that they were burdened by un-official fees but didn’t give any details. Costs for after-sales services, promotion and environment protection are challenging local producers.

The survey also shows local enterprises’ trade and production improved in the second quarter of this year compared with the first quarter.

Low wages result in shortage of manpower

HCMC employers offer a wage which is 30-40% lower than what potential employees expect.

This has caused a huge gap between the demand and supply of employment.

Many enterprises located in Ho Chi Minh City and in several of its industrial zones in the North are complaining about the shortage of workforce, especially skilled labourers.

However, according to the Ho Chi Minh City Centre of Forecasting Manpower Demand and Labour Market Information, over half of the labourers who hold bachelor’s degrees and have over one year’s experience working as well as qualified expertise demand VND5 million ($254) per month. However, on average, most employers agree to pay them only VND3 million ($152) per month.

Labourers looking for jobs at a recruitment centre

Manual labourers want to be paid about VND2-3 million ($101-152) per month whereas their wages are offered to be only VND1.5-1.8 million ($76-91) per month.

Employers and employees cannot come up with mutual agreements on wages, leading to the manpower shortage and an increase of unemployment rates.

As a result, employers continue facing difficulties in recruitment and many labourers cannot find jobs with satisfying wages.

According to experts, in the past, many labourers did not have enough information on recruitment options. Therefore, they did not have many choices to apply for jobs and they were forced to work at companies that paid them lower wages than expected.

In the past two years, labourers have had access to more information channels on recruitment so they, especially qualified labourers, can have a chance to compare wages and working conditions among different companies.

Many labourers from the North now do not want to move to the South for work, putting industrial zones in the South in shortage on manpower.

Realising this change, several big companies have decided to offer higher wages to employees along with more strict requirements on their expertise.