Shedding light on Hai Phong’s Cat Ba Island
Construction of two power transformer stations started on June 30 in Cho Roc, Yen Hung district, Quang Ninh province and Tran Chau commune, Cat Hai district, in the port city of Hai Phong , to supply more power to Cat Ba island.

Once completed in February 2010, the 200 billion VND project, funded by preferential loans from the World Bank, is expected to supply power to 6,800 clients on Cat Ba island, a favourite tourism site which is part of the port city of Hai Phong, and enhance the island’s socio-economic development.

Currently, Cat Hai district’s power supply depends much on the 35KV power line from Yen Hung district of neighbouring Quang Ninh province.

Nissan plans to start production at Vietnam venture at year end
Nissan Motor Co., Japan’s third-largest automaker, will begin production in Vietnam as part of a joint venture at the end of the year, the company said on its website Tuesday.

The venture with Kjaer Group A/S is expected to begin selling Vietnam-assembled vehicles in 2010.

The Japanese carmaker holds a 26 percent stake in the venture, Nissan Vietnam Co., and Kjaer owns the rest, the release said.

Flemming Eltang, general director at Nissan Vietnam Co., said his company’s understanding of Vietnamese culture and consumers had led the firm “to believe that the Nissan brand will be a good fit here.”

“The offering of locally assembled products will accelerate our business in Vietnam and lay the foundation for further growth,” said Shinya Hannya, Nissan’s corporate vice president of global overseas markets (GOM) planning department, GOM marketing and sales (Asia, Oceania).

The venture opened in December 2008 and has begun importing and distributing Nissan vehicles, parts and accessories through its dealers.

Nissan, 44 percent owned by Renault SA, increased 1.38 percent to 586 yen at the 3 p.m. close of Tokyo Stock Exchange trading Tuesday.

Seventeen automotive producers or assemblers already have operations in Vietnam, including Ford of the US, and Honda and Toyota of Japan.

Their total vehicle sales in May were 8,761, down from 11,494 a year earlier, according to the Vietnam Automobile Manufacturers' Association.

In May, Nissan announced its first annual loss in almost a decade and said it expected to stay in the red this year because of slumping sales. The company is cutting 20,000 jobs to cope with the global crisis.

Coffee export turnover gains US$1.1 billion
741,000 tonnes of coffee were exported in the first six months this year with the export turnover of US$1.1 billion, up 23% in terms of volume and down 12.07% in terms of value, reported the Ministry of Agriculture and Rural Development.

In June, the national volume of exported coffee was only 90,000 tonnes worth US$129 million. The coffee price is now put at US$1,324 a tonne, a drop by US$1,433 a tonne in comparison with the highest price level in March 2008 at US$2,757 a tonne.

In the past six months, top-ranking countries importing Vietnamese coffee have changed. Specifically, Belgium is ranked first among the countries importing Vietnamese coffee, accounts for 15.68% of Vietnam’s coffee export turnover, up 3.62 times and 2.52 times in terms of volume and value against the same period last year; followed by Germany (10.91%) and the US (0.67%).

ADB funds quality enhancement of agricultural products and biogas development
Governor of the State Bank of Vietnam Nguyen Van Giau and ADB Country Director for Vietnam,Ayumi Konishi signed today a US$95 million loan to improve the safety and quality of Vietnam’s commercial food crops, and provide alternative and clean energy supply to households through biogas development.

The project aims to improve food regulations and quality control systems to ensure the safety and quality of food products for domestic consumption and export. The project will also help build biogas plants which both reduce health hazards from livestock waste and provide an alternative energy source for about 40,000 households.

The project is expected to directly benefit around 3.6 million farmers in 16 provinces and generate about 1.4 million jobs in post-production work. As a result, the project will contribute to reducing rural poverty in these 16 provinces where poverty level is higher than the national average.

Addressing the signing ceremony, Governor Nguyen Van Giau said, although agricultural sector has contributed only 20% of Vietnam’s gross domestic product, 70% of the Vietnamese population are living in rural areas and the sector is making an important contribution to the country’s export.

Vietnam has always given priority to improving quality of agricultural products so that these products could meet demand not only in domestic but also foreign markets, he emphasised.

At the ceremony, Mr. Konishi said: “The demand for safer, higher quality agricultural products become more and more critical as cases of food poisoning from microbiological contamination and excessive pesticide residues in vegetables, fruits and tea account for about 30% of biological and chemical poisonings. It is essential for Vietnam to improve quality and safety to enhance competitiveness of Vietnam’s agricultural products in the global market, and also to ensure a better quality of life for the people”.

ADB is also providing a technical assistance (TA) grant of US$1.5 million to provide startup support for the project management and to design a strategy to expand the national biogas programme. The Government is contributing US$300,000 to the TA. The Ministry of Agriculture and Rural Development is the executing agency of the project expected to complete in June 2015.

1,600 cooperatives close as crisis bites deep
More than 1,600 cooperatives across the country have shut down since last year due to the global economic crisis, an official from the Vietnam Cooperative Alliance (VCA) said Tuesday.

The loss of export orders, including signed contracts that were cancelled, have hurt many, VCA Vice Chairman Nguyen Xuan Hien said.

Meanwhile, many cooperatives are finding it very difficult to access the subsidized credit offered by the government as they do not have property to offer as collateral. Commercial banks are also not interested in providing loans for cooperatives.

In Ho Chi Minh City, for example, only four of 468 cooperatives have been able to benefit from the loans.

The VCA plans to hold the Small and Medium-sized Enterprises-Cooperatives Fair 2009 from December 2-7 in Hanoi in a bid to help members connect with more buyers and land export orders.

Vietnam currently has nearly 18,300 cooperatives that are employing 14.5 million workers.

Vietnam’s investment in Laos increases 10-fold
Vietnam was one of the biggest foreign investors in Laos during the 2008-2009 fiscal year, Vietnamese Ambassador to Laos, Ta Minh Chau, said at a meeting in Hanoi Monday.

Vietnamese investors were licensed for 15 projects worth US$1.2 billion in the first half of this year, the diplomat said.

The figure had risen 10-fold from $120 million in the last year according to 2007-2008 fiscal year figures from the Laos Ministry of Planning and Investment – with Vietnam’s 21 projects in Laos making it the top foreign investor followed by China, Thailand and South Korea.

Over 60 Vietnamese investors in Laos attended the meeting and proposed that a Vietnamese Business Club be set up in the country and it also be a member of the Vietnam-Laos-Cambodia Association for Economic Cooperation and Development.

VietNamNet/ND, TN, VNA

Nhan Dan Online – The domestic gold prices on May 26 saw a slight increase by VND 10,000 a tael against the previous prices to hit the ceiling of VND 20.77 million a tael.

This morning, Saigon Jewelry Holding Company (SJC) listed its buying and selling prices in Hanoi at VND 20.70 million and VND 20.77 million a tael respectively. Accordingly, buying price was increased by VND 10,000 a tael and selling price stayed unchanged compared to the yesterday’s prices.

Gold prices listed by Bao Tin Minh Chau Jewelry Company were VND 20.68 million a tael for buying and VND 20.74 million a tael for selling which stayed the same as the former prices.

Currently, the world gold price is fluctuating around US$954 an ounce and it is predicted to continue to increase this week.

NhanDan Online

Mountains of non-contained cargo are stuck at Ho Chi Minh City-based Saigon Port due to a sudden surge in imported shipments and the port’s hesitation in unloading, which earns much lower profits than unloading containers.

Le Cong Minh, general director of Saigon Port , said that the number of imported shipments in the first four months of this year has risen by 43 percent year-on-year, of which the amount of bulk cargo accounts to 80 percent.

 

 

In the middle of April, up to 50 ships wanted to unload at Saigon Port on the same day, while the port is only able to receive around 25 ships, he said.

 

 

Some ships are spending days lining up to wait to enter the port. According to the Saigon Port ’s docking schedule, there are nine ships waiting to enter the port by May 15.

 

 

The question is why goods keep arriving to Saigon Port while there are a lot of other ports in the area, such as Ben Nghe, Lotus, Tan Thuan Dong and Dong Nai.

 

 

Some shipping experts said that unloading bulk cargo takes a lot time and effort but makes only a small profit. According to the Vietnam Seaports Association, the cost for unloading and packing a ton of bulk cargo is from VND44,000 to VND48,000. The port’s profits are around VND1,400 per ton. Meanwhile, it earns around VND7,500 for each ton from unloading a 20-foot-container weighing 20 tons.

 

 

The port would choose to unload highly profitable shipments instead of the lower ones. The state-owned port, however, can hardly refuse these kinds of goods, as it has unloaded bulk cargo for years.

 

 

Goods, such as cassava, fertilizers, cattle-feed and rice bran, are piling up and has caused huge losses to many businesses. The port’s management said May 13 that it will exempt the firms from paying storehouse rent.

 

 

Questions have been raised as to whether this is the right solution.

 

 

will concentrate on building deep-water ports for container ships in the coming decades, said Pham Anh Tuan, project manager of Portcoast Consultant Corp., which is developing ’s ports by 2050, adding that the number of seaports receiving bulk cargos would be reduced.

 

 

Meanwhile, as an agricultural country, always has a demand for imported fertilizers and pesticides and exports agricultural produce, so it also needs more seaports that accept bulk cargos.

 

 

Only the ministries of Transport and Planning and Investment, and other relevant ministries, can control the activities of the seaports to make them suitable for the country’s economic situation, experts said.

 

By Ng.Khoa, Th.Tuyet – Translated by Thuy Doan

Gold prices top VND20 million mark.

 

Gold prices on Saturday climbed to VND20.12 million (US$1,177) per tael (1.2 ounces), prompting more people to sell.

An employee of the sales department of Bao Tin Minh Chau Gold Trading Company in Hanoi said more customers came to sell gold than buy it.

 

 

Most customers said they were selling because the price was high now and they expected it would fall again.

 

 

Gold traders in Hanoi said prices in the global market rose to $934 per ounce on Friday before dropping to $928 per ounce later, causing gold prices to rise in .

 

 

Vietnam Gold Business General Director Tran Thanh Hai said, “People have reasons to expect gold prices will drop because the stimulus policies of the governments of the and other countries might help the global economy recover, sending prices down.”

 

 

Longer morning stock market hours aim to promote liquidity

 

Stock market trading hours will be extended by 15 minutes in the morning from next month following the State Securities Commission approval.

 

 

The longer trading hours will help activate transactions and promote market liquidity, commission Market Development Department head Nguyen Son said.

 

 

The commission is working with stock exchanges and the securities depository centre to revise the capacity of technical and payment systems for the longer trading hours, Son said.

 

 

Previously, the commission planned to lengthen the trading hours to the whole afternoon which would have helped investors catch up with what was happening in the world market, he said.

 

 

"But the extra session needed more advancing technical and payment systems which take time to get working well."

 

 

In the attempt to promote investment activities in equity market, the commission submitted a draft on a trading method to the Ministry of Finance in which it allowed investors to open more than one account and sell or buy in the same session.

 

 

At present, an investor has only one account open in one securities firm and each investor is allowed to sell or buy shares in a single session.

 

 

PetroVietnam gets government green light for gas price hike

 

Vietnam Oil and Gas Group, or PetroVietnam (PVN), has received the government’s approval to raise the price at which it sells gas to power plants to counter a slowdown in its earnings caused by higher maintenance costs.

 

 

With effect from June 1, PVN said it would increase its gas price from US$2 to $2.80 per one million BTU, or British Thermal Unit, a measure of thermal heat energy.

 

 

The increase follows a slide in PVN’s margins from selling to power plants in the southeastern region, with the return on investment in gas production declining from 21.7 percent in 2007 to 18.7 percent last year.

 

 

The rate is expected to drop further to 10.3 percent this year.

 

PVN said higher maintenance costs and a tax hike of 2.2 US cents to 7.2 cents per cubic meter this year is the main cause of the falling margins.

 

 

The new price is reasonable, Thoi bao Kinh te Saigon said, citing the Ministry of Industry and Trade.

 

 

Power plants’ operating costs are expected to increase by an average of around VND238 billion ($13.4 million) this year, Tuoi Tre newspaper said.

 

 

The average power price was increased by 8.9 percent to VND948.5 for a kilowatt-hour on March 1.

 

 

The state power company Electricity of Vietnam, the country’s biggest gas consumer, has yet to respond to the news of the gas-price hike, Thoi bao Kinh te Saigon reported.

 

 

Slow payers worry tea exporters

 

Tea exports reached 32,000 tonnes worth a total of US$40 million in the first four months of the year, according to the Viet Nam Tea Association.

 

 

The figures represent an increase of 116 per cent in volume and 114 per cent in value against the same period last year.

 

 

Tea is one of the country’s few products which have seen an increase in export value this year despite the global economic recession, according to the association.

 

 

However, tea producers are also facing difficulties as most export contracts have delayed payments.

 

 

Several importers have also proposed prolonging the delivery of export contracts.

 

 

To deal with the problem, the association says the Government should have incentive policies, including credit policies, to support tea producers and traders.

 

 

The association estimates that tea exports will continue to increase this year, with a target of 117,000 tonnes, up 13 per cent against last year.

 

 

To reach this target, tea producers need to improve the quality of tea, its hygiene and food safety, says the association.

 

 

The association says tea producers should replace traditional processing facilities with advanced technology to help improve the quality and value of tea products and reduce production costs.

 

 

Besides maintaining its current markets, the tea industry needs to expand its outlet to other countries, including , , , the , and , according to the association.

 

 

now exports tea products to 110 countries and territories under the trademark of CheViet.

 

 

The country has 35 provinces which grow a total of 131,500ha of tea with an annual average output of 6.5 tonnes of fresh tea per hectare.

 

 

HCMC people want income tax law delayed until 2010

 

 

Ho Chi Minh City ’s people have suggested delaying implementation of the 2007 Law on Personal Income Tax until January 1, 2010, according to the city’s National Assembly (NA) delegates.

 

 

They feel the prime minister should order the Ministry of Finance in coordination with the Ministry of Labor, Invalids and Social Affairs to study the real situation on the ground and submit to the government a report seeking the NA’s opinion on delaying the law.

 

 

Voters have also petitioned the NA and its agencies to increase their supervision and suggested the government present a report on the performance of the Law on Social Insurance at the seventh-tenure NA’s fifth meeting scheduled to begin next Wednesday.

 

 

The petitions from city voters have been collected and will be presented at the upcoming NA meeting.

 

 

Spanish architectural firm opens office in HCM City

 

Spanish architectural firm Global Architecture Local Office opened an office in HCM City , its first in Asia , on Wednesday.

 

 

GALO Viet Nam would focus on city planning and living space, including hotels and resorts, accoring to the company’s general director, Carlos Garcia Lorente.

 

 

"To prepare one’s personal vision for the urban design and development of a city, one must have a good sense of what the city currently is," Lorente said.

 

 

The firm opened the office after several trips to assess ’s economic performance and its design and construction industry last year.

 

 

Lorente said the description of one’s personal image of a city was important as a means to determine differences in perceptions of images.

 

 

"While I might find HCM City to be a very stimulating intensive environment, my neighbours might think [it] is too messy and chaotic.

 

 

"It is these differences in perceptions that are important to lay out and explore to determine the basis for change in the environment that people can agree upon and make happen."

 

 

GALO did not have any favourite projects or sectors when it came to undertaking work in this country, he said.

 

 

"We will not consider office buildings because it’s a bad time to invest in projects of this sort due to the global recession," he said, however.

 

 

Bernando de Pablo, general director of GALO Architects International, said the company would help bring Spanish investors to in the next few years.

 

 

Chau My Anh, deputy president of the HCM City Architecture Association, said Vietnamese architects would now have the opportunity to learn from their Spanish colleagues’ experience.

 

 

Property network to help investors

 

A network of real estate trading floors in the north which opens in Ha Noi today was tipped to be a strong force in the domestic market.

 

 

Establishment of the network was based on five firms, including Viet Nam Vreex Real Estate Trading Floor Joint Stock Company, Housing Group, Viglacera Land, Thang Long Aviation Service Joint Stock Company and Eurowindow Holding.

 

 

The network’s management board would be responsible for organising activities for the 52 members who had joined so far.

 

 

Vreex chairman Phan Thanh Mai, who is head of the board, said establishing the network was timely.

 

 

It would develop under State standards and had the capacity to help real estate investors and traders share information and reduce risks.

 

 

The State could check trading processes and legal procedures of property on the network, he said.

 

 

Thang Long Aviation chairman Pham Ngoc Thanh, who is the board’s secretary, said a proliferation of real estate trading floors existed with many associated problems.

 

 

The network would solve the troubles, connect the trading floors and boost trading activities between businesses, investors and customers, Thanh said.

 

 

Former national resources and environment deputy minister Dang Hung Vo said the network would ensure the property market developed transparently.

 

 

Unfinished paper mill sends farmers broke

 

Farmers in three districts in southern Long An Province say they have lost more than VND40 billion (US$2.2 million) after growing jute since a paper mill that contracted to buy it remains unfinished two years after the original deadline.

 

 

In 2006 work began on the Phuong Nam Paper Mill in Thanh Hoa District, and it was to have been finished in 2007.

 

 

Equipped to produce 100,000 tonnes of paper powder annually from jute, it committed to buy 600,000 tonnes of jute every year. For the purpose, farmers in Thanh Hoa, Tan Thanh and Moc Hoa districts planted the crop on 9,000ha of exhausted rice paddies in 2006.

 

 

They expected a yield of 50–60 tonnes and an income of VND5-7 million on every hectare.

 

 

But at harvest time, the mill was still under construction and farmers had to sell to traders at much lower prices than those promised.

 

 

Many farmers stopped growing jute and returned to growing rice. As a result, by May 2008 the whole province had had only 1,500ha under jute.

 

 

Meanwhile, the delay continued due to lack of funds and the paper mill is now due for completion only in September this year.

 

 

It has already used up the entire budget of VND1.9 trillion (US$112 million) but is only around 70 per cent complete. A further VND500 billion is needed to finish it.

 

 

The provincial People’s Committee has asked the Government for funds from the stimulus package or lend the money on easy terms.

 

 

Prime Minister Nguyen Tan Dung has ordered the ministries of Science and Technology, Industry and Trade, Agriculture and Rural Development and Finance to evaluate the project.

 

 

From a problem of plenty it is now headed towards a shortage — to supply the mill with 600,000 tonnes of jute annually, the province needs to have 15,000ha under jute. But it has just 1,500ha.

 

 

PM asked to okay $292 mln loan for new urban area

 

The Ho Chi Minh City administration has asked the government to allow the Bank for Investment and Development of Vietnam to grant a VND5 trillion loan (US$292.4 million) loan to a new urban development project.

 

 

The funds are to be used to pay compensation for properties taken over by the Thu Thiem New Urban Area Investment and Development project in District 2.

 

 

People’s Committee Chairman Le Hoang Quan has said city authorities will direct concerned agencies to manage and carefully supervise the use of the capital in compliance with regulations.

 

 

The city will also collect income from the project to repay the loan on schedule, Quan said.

 

 

 

The city has spent more than VND3.47 trillion ($202.92 million) to compensate for 6,244 properties since 2002. This year it needs about VND20 trillion ($1.17 billion) to complete the compensation payments for the project, according to the committee.

 

 

Saigon Co-op celebrates its 20th anniversary

 

’s leading retailer, Saigon Co-op, has been awarded the third-class Independence Medal by President Triet for its contribution to economic development and building socialism on its 20th anniversary held May 16 in Ho Chi Minh City .

 

 

Saigon Co-op has been developed into one of the biggest retailers in the country. After 20 years of building and development the supermarket has become a leading retailer in and been listed in the top 500 retailers in Asia .

 

 

Saigon Co-op has broadened its activity to many fields with a focus on retailing with 35 supermarkets and tens of convenience stores nationwide.

 

 

Saigon Co-op is planning to open a further 65 supermarkets in the country by 2015.

 

 

Also attending the anniversary celebrations were Nguyen Van Dua, deputy secretary of the HCM City Party Committee and Nguyen Thanh Tai, deputy chairman of the city People’s Committee.

 

 

Exports to increase sharply

 

’s export turnover to reached more than US$72 million in the first quarter of this year, up 37.5 percent compared to the same period last year.

 

 

Major export items are rice, milk, tea, garments and textiles, footwear and seafood, according to ’s trade office in . 

 

 

’s trade counselor in , Dang Ngoc Quang, said that is a large market and a traditional partner of . Currently, is in the process of national reconstruction and stabilization, so the country’s demand for imports will continue to increase.

 

 

Mr Quang added that will once again one of ’s leading import markets in the African- Southwest Asian region with major potential items such as rice, milk, tea and seafood.

 

 

Vietnamese enterprises had established relations with previously and they now only need to re-set up distribution channels and seek partners in , said Mr Quang.

 

PV

VietNamNet Bridge – It is still too early to talk about the recovery of the real estate market. However, experts say that the stronger credit flow is warming up the market.

Market warming up

The real estate market now has opportunities to improve liquidity.

Credit growth has been increasing steadily with the credit by early May having increased by 11% over the end of 2008. Nearly VND280 trillion worth of loans under the interest rate subsidy programme have been pumped into the national economy just in the last two months. It is expected that medium- and long-term outstanding loans under the interest rate subsidy programme will also increase in the time to come. Some of the capital will flow into the real estate market.

 

Moreover, the sum of VND49 trillion worth of capital for the social housing programme will be allocated by the government to localities. Some of the foreign direct investment in real estate will be disbursed. Individual investors will also inject their money in the real estate sector when they see the warming of the real estate market and believe that the market will escape from its depths.

 

Trinh, a real estate broker in Hanoi , related that the demand for real estate has become big since the beginning of the year. Houses and land plots in advantageous positions with prices of less than VND3 billion have been selling well. Trinh believes that if the VN Index keeps rising, a lot of investors will transfer profit from stock investments to the real estate market.

 

The current credit policies (interest rates, loan deposit) applied by commercial banks have become more flexible. Both joint-stock and state-owned banks plan to push up loans to fund individuals’ house and land purchases, especially apartments in the projects funded by the banks themselves.

 

Some experts believe that when the real estate market heats up, this will influence the stock market, thus making the real estate market cool down.

 

 

Short-term forecasts

Dr Tran Kim Chung from the Central Institute of Economic Management (CIEM) said that the real estate market in the time to come will see ups and downs, but no big fluctuations, though there will be different fluctuations in market segments.

Houses and apartments with medium prices at real estate projects will sell well.

 

The second market segment which is expected to be bustling in the time to come is lower-priced land plots and houses (less than VND1 billion). The products of the social housing programe will also be bustling, while the fourth segment, high-grade apartments, will be quiet, at least from now to the first quarter of 2010.

 

According to Associate Prof Dr Hoang Van Cuong from the Hanoi Economics University , when the real estate market is quiet, and real estate prices decrease, it is the time to develop the lower-priced housing programme. However, Cuong said that the final target of the real estate investment stimulus programme is to revive the market segments with high liquidity, and to prepare a supply of real estate for the future, when the economy recovers.

 

Cuong said that the investment stimulus should aim at subjects which have capital capability, while encouraging people with money to inject money in business. Meanwhile, low-income earners should not be seen as subjects who can help stimulate investment and curb economic downturn.

 

VietNamNet/LD

Commercial banks have lent businesses more than VND301.4 trillion (US$17 billion) as part of a government loan subsidy program aiming to boost the slowing economy.

The State Bank of Vietnam announced the information on its website late on May 22, stating that the figures were as of May 21. The amount grew 3.25 percent compared to a week earlier.

The government decided in January to use VND17 trillion ($956.13 million) from an economic stimulus package to provide a 4-percent interest subsidy on loans to companies that export, import or produce essential goods.

It later extended the program until the end of 2011, and expanded the list of beneficiaries.

The government has launched a package of economic stimulus measures worth about $8 billion. Vietnam is trying to accelerate growth in the economy, which expanded 3.1 percent in the first quarter, the slowest pace since at least 1991.

In another statement released last Friday, the central bank asked local banks to expand credit effectively in support of economic growth, but at the same time it warned the banking system against lowering lending standards.

The central bank urged commercial lenders to “tightly control” loans for property projects and stock investment to ensure the safety of the credit system, it said in the statement. Lending needs to be focused on production, small- and medium-sized companies and major government projects, it said.

Source: TN, Bloomberg

The difference in the growth rates shows that the domestic market significantly contributed to the economic growth. Even during the Southeast Asian financial crisis of 1997, retail sales remained on an upward trend.

It rose 5.7 percent in 1998 and 4.1 percent in 1999 against a GDP rise of 5.8 percent and 4.8 percent.
Retail sales between 2001 and 2005 rose by an average of 10.3 percent a year, far in excess of GDP growth which averaged a mere 7.5 percent in the period.

In 2006 and 2007, retail sales surged by an average of 14.5 percent annually, double the GDP growth of 8.4 percent in the period.

In money terms, it rose from US$10.8 billion in 1997 to $45.7 billion in 2007.

Sales of consumer products increased from 81.4 percent of total retail sales in 1997 to 83.4 percent in 2000.

But by 2007 they had slumped to 77 percent, but remained at a hefty $35.2 billion as the size of the overall retail market had skyrocketed.

The Red River Delta, Mekong Delta and southeastern region accounted for 75.9 percent of the retail market.

By Nguyen Van Son * Nguyen Van Son is an economist.

Source: SGTT

The VN-Index, Asia’s worst performer in 2008, may become one of the region’s biggest gainers this year as locals turn to stocks amid the country’s economic recovery, Kim Eng Vietnam Securities said.

The economy expanded 3.1 percent in the first quarter, according to the Hanoi-based General Statistics Office. The market has rallied 81 percent since reaching a four-year low on February 24, becoming Asia’s best performer in the period. The measure had dropped 66 percent in 2008.

Cheah King Yoong, head of investment research at Ho Chi Minh City-based Kim Eng Securities, said, “The country is awash with domestic liquidity because of wealth creation due to its strong economic growth.”

The interest rate cuts have helped trigger the advance in stocks this year, he said. Total outstanding loans increased 15 percent from January to mid-May, Vietnamese Deputy Prime Minister Nguyen Sinh Hung said on May 20.

“We may be one of the few nations to have positive growth, and fundamentals are not that bad,” Cheah said.

Domestic money is “trapped” in the country with the currency controls, and those funds have been invested in the stock market, Cheah said. It is difficult to estimate the volume of domestic funds since fewer than 20 percent of Vietnamese have bank accounts.

Where’s the VN-Index headed?

“We cautiously expected the VNIndex to end this year at 450-470,” said Johan Nyvene, general director of the Ho Chi Minh City Securities Co.

The VN-Index on the Ho Chi Minh Stock Exchange has gained 35.7 percent so far this year.

He said the market is unlikely to fall back into negative territory since the economic turmoil was not as severe as investors had expected and corporate earnings in the early part of the year only fell slightly.

Many investment funds are sitting on a pile of cash and recent surges in gold prices would cause a large amount of cash to pour into stocks, he said.

But Nyvene warned that the upward trend may not last long.

“Most listed companies’ first-quarter results have been released. There is only some news that can support the market’s winning streak. The VN-Index has broken above the resistance level of 420, but we expect the market to make a sharp correction from now until the end of the year,” he said.

Domestic investors are withdrawing from the property and gold markets to jump in stocks, according to State Securities Commission Vice Chairwoman Vu Thi Kim Lien.

The number of new trading accounts at brokerages has surged by more than 20,000 this year, she said.

Foreign investors have meanwhile started buying heavily after dumping shares early this year, she said. They bought for a net US$21.6 million through last month and in the first week of this month.

“The rallying market is reflecting investor speculation of a domestic and international economic recovery this year. But the recent surge on the market seems to come from over-optimism,” she said.

Nyvene said long-term investors should buy blue chips making consistent profits, such as dairy firm Vinamilk, oil firm PV Drilling and PetroVietnam Fertilizer and Chemical.

“If you opt for short-term buying, financial, property and technology stocks are the best choice as they usually move up sharply during a rally,” he said.

Source: Bloomberg, DTCK

Vietnam will probably produce an average of about 400,000 barrels of oil a day until at least 2030, the US government said, suggesting Vietnam will halt a four-year decline in output.

The projections accompanied the 2009 International Energy Outlook that the US Energy Information Administration released in Washington Wednesday.

A report on Vietnam last month by the International Monetary Fund cited an anticipated drop in oil production “in the longer run,” while the World Bank last year identified “production capacity constraints” as hampering the country’s industry. Vietnam is opening new areas to exploration as it attempts to reverse the production decline.

“There are some doubts about Vietnam’s ability to maintain its peak production level,” said Victor Shum, a Singapore-based senior principal at oil industry consultants Purvin & Gertz Inc., in a telephone interview Thursday. “The EIA projection is an optimistic outlook.”

Vietnamese oil production has declined each year since peaking in 2004 at about 427,000 barrels a day, according to BP Plc. Through the first five months of this year, Vietnam produced about 6.95 million tons, or about 345,000 barrels a day, according to preliminary estimates from the General Statistics Office in Hanoi.

Other scenarios

Vietnam could maintain production of 400,000 barrels a day through 2030 in a low oil price scenario, according to the Energy Information Administration. In a high oil price scenario, Vietnamese production would be expected to slip to about 300,000 barrels a day by 2025, said the organization.

Vietnam’s major oil field, operated by a Russian -Vietnamese venture, has been declining in output after more than two decades of production.

But last year, ConocoPhillips, Nippon Oil Corp., Soco International Plc and Talisman Energy Inc. all began production from new Vietnam oil fields in which they hold shares. Premier Oil Plc, Soco and Talisman are among companies planning new output.

“There’s a fair amount of exploration going on in Vietnam and no one has really started with the deepwater areas yet,” said Tony Foster, Hanoi-based Vietnam managing partner for the law firm Freshfields Bruckhaus Deringer, whose clients include oil companies. “A lot depends on the outcome of China’s power play in the area.”

BP said in March that it would withdraw from a Vietnamese exploration area. The government in Hanoi said in 2007 that projects involving BP off its coast are in Vietnamese territory, after China cited concern over “actions” by its neighbor in the area. BP declined to comment in March on whether the territorial dispute influenced its decision.

Source: Bloomberg

VietNamNet Bridge – The information that many articles of clothing and children’s toys made in Guangdong, China contain toxic substances might have startled Vietnamese consumers, since goods from Guangdong are selling everywhere in HCM City.

Made-in China products here, there and everywhere…

 
China-made are selling at a supermarket in HCM City.

Chinese media recently reported the results of a survey made by Guangdong authorities which said that 46.5 percent of clothes produced in the province have been found as containing excesses of toxic substances, including formaldehyde, which can cause skin and respiratory infections. Thirty-two percent of clothes have been found as containing too much formaldehyde and toxic heavy metals.

Reporters of the Vietnamese newspaper Nguoi Lao Dong made a quick survey of the market in HCM City right after the news was released and found out that China-made products, especially ones made in Guangdong, are flooding the HCM City market.

According to petty merchants at markets in HCM City, no less than 40 percent of the clothes targeting medium and medium-high income earners are sourced from China. These include trousers, jeans, T-shirts and many other products, which have the same prices as locally-made products.

Saleswomen at Tan Binh Market said that China-made products are favoured by domestic consumers because their prices are ‘soft’. The price of every model decreases by a half after just a few months. For example, a model of T-shirt now favoured by the city’s youth was initially priced at 150,000 dong but is now selling like hot cakes at 80,000 dong. Vietnam-made products of the same kind are selling at 50-60,000 dong, but domestic consumers seem largely indifferent.

Thien Phuong, the director of a HCM City-based garment company, said that she frequently drops into markets and supermarkets to keep an eye on clothes sales and she can see China-made goods selling very well because they have diverse colours and designs, especially the products priced at over 150,000 dong.

“Sellers say the products are made in Hong Kong, Thailand or South Korea, but I know 80 percent of the products are made in China,” Phuong said.

The above newspaper also reported that China-made toys are selling everywhere in HCM City, from pavement shops to Binh Tay, Kim Bien, Tan Binh and Ba Chieu markets.

Tran Thai Hung, the owner of a toy shop on February 3 road, said that 100 percent of toys on sale at his shop are made in China. Hung said that other shops are also selling Chinese toys. “Salesmen say the products are sourced from Japan, US or South Korea because they want to sell them at high prices. In fact, these are made-in-China toys,” he added.

Cuc, a toy merchant next to Binh Tay Market, also affirmed that nearly all the toys in the area come from China, while there are only a few toys from the US or Japan which are very expensive. Similarly, products for children’s use like nipples, feeding bottles, cups and footwear also come from China.

How are China-made goods getting to markets?

Thanh, a petty merchant at An Dong Market, related that most China-made goods available in HCM City are from Guangdong. Traders either go directly to Guangdong to bring goods to Vietnam for resale, or get goods from wholesalers in the border province of Lang Son.

“Big merchants always make deals directly with suppliers in Guangdong,” Thanh said.

She went on to say that she gets goods once every one or two weeks from wholesalers, totalling 200-300 million dong worth each time. At first, merchants go to Guangdong to meet suppliers and visit their shops, but after that, they just place orders by phone.

Vietnamese merchants all say that Guang Zhou, the chief city of Guangdong, is considered the ‘paradise’ of imitation brand name goods. Products carrying brand names of Louis Vuitton, Prada and Burbery are produced there and then carried to neighbouring countries, including Vietnam. Previously, goods from Guangdong went to Hanoi first and then moved on to HCM City. However, over the last six months, merchants in HCM City themselves have been going to Guangdong to bring goods directly to HCM City for resale.

VietNamNet/NLD

VietNamNet Bridge – Phu Quy island, in the Phan Thiet sea, lies between the mainland and Truong Sa Archipelago, 120 kilometers from Phan Thiet city. It is one of the most-visited destinations in the area as the island’s stunning beaches, forests and pristine landscapes offer an ideal summer getaway.

A stunning beach of Phu Quy island of the central coastal province of Binh Thuan.

Phu Quy is surrounded by nine islets. Among them, Hon Tranh is an attractive eco-tourist venue with white-sand beaches, turquoise waters and thriving coral reefs. Hon Chim is home to a kind of bird named mo. In breeding season, this islet is covered with birds. Hon Ran is a habitat for many kinds of snakes, some of them rare. Hon Trung is a real work of art with thousands of colorful rocks sparkling under the sun.

Phu Quy is one of the most important fishing grounds in the central coastal province of Binh Thuan. Squid, snapper, grouper, tuna and shark are the most common marine animals here.

The island is home to nearly 25,000 residents. Most of them earn a living by fishing and cultivating marine products.

On the island, tourists may choose to get lost for a time among the endless green casuarinas trees.

Seafood prepared in indigenous styles of the island is another attraction that tourists should not miss.

VietNamNet/SGT

Nhan Dan Online-The first four star hotel in Dak Lak Central Highlands province, Swiss-Belhotel Dakruco hotel, started its operation yesterday.

Together with the four-star hotel, another three-star hotel,  Dakruco Hotel, also owned by the Dak Dak Rubber Company (Dakruco) and the Swiss-Belhotel International, opened to receive its first guests.

Swiss-belhotel Dakruco is one of the six hotels of international standard managed by the Swiss-Belhotel International. From now, tourists to Dak Lak not only can enjoy wonderful waterfalls of Đray Nur, Gia Long, Krong Kmar, Thuy Tien and big lakes of Lak, Ea Kao, Ea Đon but also can stay in a luxury hotel. The hotel is built on 3.6 hectares including hotel, wedding center, sport center as well as all other modern facilities and only seven minutes drive from the airport.

Nhan Dan Online

VietNamNet Bridge – About 50 kilometers from HCMC, the Can Gio Mangrove Forest, a world-class biological reserve recognized by UNESCO in 2000, is proving to be a top tourist destination with its system of canals, its spectacular ocean scenery and its tranquility.

Tourists on a canoe in Can Gio Mangrove Forest.

From the center of HCMC, there are two ways to the eco-tourist site. The first is biking or motor biking to the Binh Khanh Ferry which crosses the river and lands at Can Gio Street. A short ride down this street gets you to the Vam Sat Ecological Tourist Area in the Can Gio Mangrove Forest. The second, and more interesting way, is to board a canoe at the Bach Dang Wharf and glide down the Saigon, Soai Rap, Dinh Ba and Lo Ren rivers.

Can Gio conforms to the wishes of many tourists who want an easily-reached ecological area with features like history, culture and especially a vast wilderness. The Can Gio Museum displays antiques dating back 2,000 years, the astounding Rung Sac Revolutionary Base which represents a page of national history and an animal circus with tamed and untamed beasts, including crocodiles, excites visitors. There is a troupe of 1,000 monkeys that are always ready to have fun with tourists. Typical dishes of the area can be had at Rung Sac Restaurant and eateries that line the river.

The Vam Sat Ecological Tourist Area is one of the world’s Salt-Marsh biosphere preserves and is ideal for canoe trips to swampland where rare flying foxes and bats live high in the trees and crabs are caught for their succulent meat.

Tourists can also enjoy the local sport of teasing hungry crocodiles with food from the canoe. Floating on a top of a saltwater pool, visitors do not have to worry about drowning because the salt concentration is 10 times higher than seawater and the crocodiles do not come here.

The three-star Can Gio Resort is recommended with its 80 rooms and proximity to 30/4 Beach and is offering couples one night in a superior room for only VND500,000, a 50% discount for a second night and a 60% discount for a third night. Tourists will be discounted 10% entering Lam Vien Park (monkey island) which offers bicycling, tennis, karaoke, body massages and sauna-steambath services. The program runs from June 20 to September 20.

Can Gio Tourist Area is in Long Hoa Commune, in HCMC’s Can Gio District, tel: 3874 3335. The office of Can Gio Ecotourism Company is at 68A Nguyen Hue Boulevard, in HCMC’s District 1, tel: 3829 2969.

VietNamNet/SGT

VietNamNet Bridge - Visitors to the Xin Man Ancient Rock Yard in northwestern Ha Giang Province will find an area of wild, natural beauty, full of hidden secrets of an ancient culture.

The Cu Thach boulder in the Xin Man Ancient Rock Yard.

Located on a rambling mountainside in Nam Dan Commune around 1,350 meters above sea level, the trail to Xin Man crosses over a picturesque, babbling stream and opens into a mossy 15-hectare field.

The Xin Man Ancient Rock Yard is filled with rocks of odd shapes and sizes thought to have been inscribed by an ancient ethnic civilization.

The first stone to be encountered in the area is called Cu Thach. The large, elliptical-shaped boulder tilts precariously on an angle, supported by two smaller rocks underneath it.

It is said that Cu Thach resembles an altar, so local residents have even placed an incense burner below it to complete the look.

The rock formation that arouses people’s curiosity the most, however, and which made Xin Man a recognized national historical and cultural relic last February, is the one inscribed with mystifying pictures.

Referred to as “na phau lai su” in the local ethnic Nung language, the stone’s surface area spans around 20 square meters and resembles a rounded cake. There are nearly 80 drawings including about 40 circular images, two rectangular ones, one square, four human figures, and five images of triangles.

The ancient symbols are thought to represent celestial themes, fertility figures, and the day-to-day activities of the ancient peoples who carved them, though researchers say there is still much to be learned about the peculiar rocks.

VietNamNet/TN

US-based Starwood Hotels & Resorts Worldwide Inc. will manage two five-star resorts the Saigon Investment Group (SGI) plans to build in Vietnam.

The Saigon Investment Group plans to build a five-star resort in Da Nang (seen in photo) in 2013 and has taken on board US-based Starwood Hotels & Resorts to manage it.

The two signed a contract June 9 for the US$100 million Le Meridien Da Nang Resort & Spa and $40 million Sheraton Da Lat Resort & Spa.

The 330-room Le Meridien will come up on Son Tra – Dien Ngoc Street in Da Nang and the Sheraton will have 150 to 200 rooms and will be located at the centre of Da Lat.

Work on the two properties is expected to start next year and finish in 2013.

SGI operates 20 industrial zones and high-tech industrial zones and has interests in real estate, information technology, telecom, banking and finance, tourism, and construction.

Starwood is one of the world’s leading groups in entertainment and hospitality, managing over 940 properties all over the world.

By Th.Hai – Translated by H.Mien

VietNamNet Bridge – Taking National Highway 1A through the Mekong Delta, about 210 kilometers from HCMC and 30 kilometers from Can Tho city, tourists can get to Phung Hiep district in Hau Giang province. Attractive Hau Giang province is a relative newcomer to tourism and is situated at the confluence of the Xeo Mon, Xeo Dong, Bun Tau, Lai Thieu, Cai Con, Mang Ca and Kenh Xang rivers.

A bustling ambiance in Phung Hiep Floating Markey in Hau Giang province.

 
Nga Bay Floating Market, Tay Do Ecotourism Park and Lung Ngoc Hoang Nature Reserve in Hau Giang Province’s Phung Hiep District make the trip worthwhile.

Nga Bay Floating Market, also called Phung Hiep Floating Market, is in the heart of Phung Hiep District’s Phung Hiep Town, 30 kilometers south of Can Tho. The market was built in 1915 and was called “Phung Hiep Star” by the French. Operations at this market begin early in the morning with hundreds of boats arriving with farm produce from every direction. Catching a boat bobbing on the waves in the early morning, visitors can witness the bustling ambiance and animated sounds and shop for diverse fresh fruit and produce. From seven branches of the Mekong River, hundreds of boats come to sell fruits, fried fish, salt, honey, potatoes and rice.

The Phung Hiep Snake Market is well-known to foreign tourists. Visitors from around the world come to taste the snake liquor.

Phuong Binh commune’s Lung Ngoc Hoang Nature Reserve, also in Phung Hiep district, has over 500 species of plants and animals, many of them rare. Covering nearly 300,000 hectares and extending from the western bank of the Hau River to U Minh National Park in Kien Giang province, the reserve is considered the “green lung” of the Mekong Delta. The reserve includes mangrove forest and 315 hectares of ponds and lagoons with diverse marine creatures.

Tourists can explore the forest by boat, climb a “watch tower” to watch birds and animals or sit in the shade of trees to fish. Endless lotus lagoons decorate the immense forest which is home to teal and white egrets. Local authorities are developing the reserve’s s ecotourism potential.

Tourists should not miss the 20 hectare Tay Do Ecotourist Park which offers accommodation, entertainment and restaurants. There are live shows of traditional southern music in the shade of fruit trees, fishing and a bonsai garden. Other places of interest in the province include Vi Thuy Cajuput Forest Ecotourism Park, and Tam Vu Ecotourist Park.

VietNamNet/SGT

VietNamNet Bridge – The Mekong Delta has become well-known for its floating markets, orchards, ancient pagodas, splendid islands and endless mangrove forests.

Tourists buy some products made from snake in Dong Tam Snake Farm.

Touring Tien Giang province, the gateway to the western region of southern Vietnam, tourists are advised visit Chau Thanh district to see the wild life of snakes at the Dong Tam Snake Farm, Vietnamese history in Rach Gam Xoai Mut historical relics and the ancient architecture of Sac Tu Linh Thuu pagoda.

Dong Tam Snake Farm, located about 10km from My Tho city in the direction of Vinh Long and under Vietnamese Military Zone No. 9, is one of the country’s largest snake-breeding centers and maker of anti-venom. The farm covers 11 hectares, including simulated wilderness areas, and is home to sheep, ostriches, yellow tortoises, tigers, crocodiles and of course snakes. The farm is also considered the country’s only snake museum and attracts local and foreign tourists with its special ecological characters and a collection of 52 types of snakes, including poisonous.

Visiting the farm, tourists will learn how to treat snakebites, how to remove venom and some of the uses venom has in making medicine.

Most of the snakes raised here are pythons and cobras. The king cobras are raised only for exhibit. They are aggressive and capable of spitting poison; don’t get too close to their cages. The largest cobra here is 18 kilometers long.

Tourists can buy snake wine, snake flour, glue and anti-venom.

From the snake farm, on Road 864 along the Tien River, tourists should stop by Rach Gam-Xoai Mut historical relics in Kim Son Commune to enter Vietnamese history and learn of the victory of the Tay Son army led by Nguyen Hue against Siamese invaders on the 19th and 20th days of the first month in 1785. The site covers 2 hectares and features exhibition house No.1 under the monument of national hero Nguyen Hue, exhibition house No.2 near the river and an ancient house.

The site is surrounded by the endless green of coconut trees, bamboo trees and colorful flowers. The bronze monument of national hero Nguyen Hue is 20 kilograms in weight, 8 meters in height and covered by bas-reliefs of meticulous and elegant patterns featuring the glorious victory of the Tay Son army. Meanwhile, the 225-square-meter ancient house is representative of the ancient style of architecture in the Mekong Delta. There is a restaurant built of bamboo trees and coconut leaves here that offers a cool place for tourists to sample the region’s specialties.

In Chau Thanh district, tourists can escape big city noise pollution and admire examples of ancient architecture at Sac Tu Linh Thuu pagoda in Thanh Phu commune. The pagoda was built in the eighteenth century and rebuilt in 1992 in harmony with the original design with 79 pillars, statues of Buddha and 49 lights.

After visiting cultural and historical sites, visitors can kick back in a canoe and drift into orchards of indigenous fruits, of which the Lo Ren star apple is nationally famous.

VietNamNet/SGT

VietNamNet Bridge – The Hai Van Pass was featured on the BBC motoring programme Top Gear on December 28, 2008 as part of its Vietnam Special. Nguyen Quy Duong shared some moments from his time on the pass.

Hai Van Pass is a mountain pass on National Road 1A in Vietnam. The pass is located on the border of Da Nang and Thua Thien-Hue province, near Bach Ma National Park.
Translated into English, Hai Van means "ocean clouds", and thus the pass is known for its misty vapors rising from the sea, reducing visibility. The tortuous road on the pass was long a challenge for Vietnamese motorists, but nowadays, since the completion of the Hai Van Tunnel, traffic flow has been facilitated.

On the trans-Vietnam road, the Hai Van Pass is an ideal stop for visitors. This is the highest pass in Vietnam, around 500m above sea level, and is the last spur of the Truong Son Range reaching to the sea.
 

On the top of the pass is a vestige of long ago, a fortified gateway. The gate facing Thua Thien-Hue province is inscribed with the three words “Hai Van gate” and the other gate looking down on Quang Nam province is engraved: “The most grandiose gateway in the world”. These words were ordered inscribed by King Le Thanh Ton.
 

On the summit of Hai Van Pass, one can see Da Nang city, Tien Sa port, Son Tra peninsula, Cu Lao Cham and a long white sandy beach. This is Lang Co beach, one of the most beautiful beaches in Vietnam.
 

On August 27, 2000, the Hai Van Pass tunnel was inaugurated, opening a new chapter for the pass.
 

This blockhouse, named Don Nhat, was built in 1826 by French troops to protect the pass.

VietNamNetVNE

VietNamNet Bridge - High-flying trikes could soon be a common sight around Nha Trang on the central coast.

Mai Linh Group has been test-flying motorized hang gliders at Do Island in Nha Trang Bay and will make them available to the public soon. The trikes, as they are commonly known, can reach an altitude of 3,000 meters but will be restricted to 150 meters, according to a regional executive of Ho Chi Minh City-based Mai Linh.

Ho Minh Chau, Mai Linh’s general director for the south central region and the Central Highlands, said each test flight lasted less than 20 minutes.

Similarly, they can reach 70kph but will be restricted to 48kph for paying customers, he said.

Quite a few people have been invited to take a test flight.

One woman who claimed to be scared of heights described it as “sensational.” Another said flying in a motorized glider gave him a feeling of lightness and wonder.

The trikes have two seats (one for the pilot), a three-blade propeller and a boat-like bottom for sitting in the sea. The wingspan exceeds 11 meters and the fuel tank at the rear can hold 40 liters.

Donning a crash helmet and seat belt is a must before take- off. When everything is ready, the glider rolls down the sand into the water and lifts off when it reaches sufficient speed.

Chau says Mai Linh plans to operate five trikes for tourists in Nha Trang.

Anyone wanting to leave the pilot behind and go it alone will have to produce a flying certificate from the Vietnam Aviation Institute in Nha Trang.

To be certified requires completing a training course and getting in 21 hours of flying practice.

VietNamNet/TN

VietNamNet Bridge – Five years have passed since the day Vietnam put forward the plan on building and developing Phu Quoc Island into a large global tourism and trade exchange centre. But it seems that nothing considerable has been accomplished yet.

Only four projects operational

To date, the island development programming remains controversial. A lot of projects have been registered, but investors have made no moves. Many big infrastructure items on the island are unfinished. The Duong To International airport project, which kicked off construction in 2008, still has not finished main items, including a resettlement area.

According to the Phu Quoc Island Investment and Development Management Board, 33 investment projects have been licenced by Kien Giang People’s Committee. The projects are expected to cover an area of 1,157 hectares with the total capital of 31 trillion dong. 174 other projects have gotten agreement in principle, expected to cover an area of 7,855 hectares.

On October 5, 2004, the then Prime Minister Phan Van Khai signed a decision approving the master plan on developing Phu Quoc Island in Kien Giang province with outlook until 2020.

The master plan said that Phu Quoc will be developed into a big and modern international tourism and trade exchange centre in Cuu Long River Delta, which will be gradually turned into a large regional and global tourism and trade centre.

By 2010, there will be several high-quality tourism and entertainment complexes, attracting 300-350,000 travellers a year. It is expected that by 2020, it will receive 2-3 million travelers.
 
However, only four of the licenced projects have become operational, namely Berjaya Long Beach, Veranda, Cataco and Miramar resorts.

Eighty-eight projects of the said 174 projects which have got agreement in principle have not followed stipulated investment procedures for many reasons.

The projects registered by big names including Swiss Tructsse in cooperation with Vietnam’s Vinaconex (the Euro2 billion project on finance and tourism centre), the US-based Rockingham Group (the $1 billion high-grade tourism and entertainment complex), Starbay Veitnam ($1.8 billion Starbay resort complex) have not moved farther than asking for land.

Earning money from project trading

Hearing about the great potentials of Phu Quoc Island, a lot of people have rushed to lobby to get the right for investment in projects and rushed to commit fraud, totalling several billion dong.

Trinh Van Trung, former Head of the Economics Division under the Kien Giang People’s Committee, was arrested after reportedly receiving 500 million dong from Xa Huong Company and promising to allocate forest land to the company for a tourism project.

Phu Quoc Island

In early 2008, a Viet Kieu in France, Luc, met Ngoc, a land broker, and the two sides negotiated about Luc’s purchase of 11.3 hectares of land from Ngoc. In fact, the 11.3 hectares of land was national forest land, not Ngoc’s.

Ngoc promised to help Luc with the procedures in the project’s investment, but then ran off with 1.2 billion dong worth of Luc’s money.

A lot of government officials have been selling state-owned land and forest land as their own. The police are now investigating a case in Ham Ninh commune, in which local authorities are accused of selling state land to officials.

No one questions the potential of Phu Quoc Island, but even a paradise can’t be built in a day.

VietNamNet/TP

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