VN Business News 30/07/97

[Dam Son <son@u.washington.edu>]

Vietnam/T-Bills -2: Had Offered 150 Bln Dong 
Beta Vietnam Fund Takes 30% Stake In Indochina Juice Co. 
Vietnam Govt Pumping Out Flooded Rice Fields 
Asian Cash Rice Mixed; Thai 100%B Dn, Vietnamese 5% Up 
Asian Cash Coffee Steady; Traders Eye Vietnam Crop 
Vietnam has signed contracts worth US$860 million with Britain's 
Vietnam Post Reaches Phone-Network Accords 
Talks in Final Stages On Key Bond Issue To Boost Vietnam 
Market Brief: Vietnam Maritime Bank 
Nike eyes first Vietnam investment: report 
Europe entrusts 25 million dollar fund to Vietnamese banks 
Vietnam central banker calls for stable exchange rate 
Nike eyes garment production in Vietnam 
Vietnam's Car Sales Slump 
Vietnam PM Seeks Investment In Profitable State Cos - Paper 
Vietnam Floods Threaten Farm Land; Holes Found In Hanoi Dike 
Vietnam: 10,000 Tons Coffee Committed For Sept/Oct Shipment 
Cable car line to be built in Vietnam's tay ninh province 
Vietnam should be 1st nation admitted into apec: rafidah 
Vietnam urged to develop its antibiotics industry 
Vietnam machinery installation co earns $us60 mln in 1996 
Vietnam national seafood co posts 8 pct rise in revenue 

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Vietnam/T-Bills -2: Had Offered 150 Bln Dong 

Hanoi (AP-Dow Jones)--The State Bank of Vietnam, the country's central
bank, awarded 81.6 billion dong of 12-month Treasury bills at a yield
of 11.3% Wednesday.

It had offered to sell 150 billion dong but a bank spokesman declined
to provide an explanation as to why so little was sold.

On July 23, the Vietnamese central bank awarded 16.6 billion dong of
12-month bills at a yield of 11.0%.

Sucessful bidders were:

Bank for Foreign Trade of Vietnam

(Vietcombank) 45 B

Incombank of Vietnam 30 B

Vietnam Insurance Corp. (Bao Viet) 5.0 B

Petrolimex Joint Stock Insurance Co. 1.0 B

National Reinsurance Co. (VinaRe) 0.6 B

  _________________________________________________________________


Beta Vietnam Fund Takes 30% Stake In Indochina Juice Co. 

Hanoi (AP-Dow Jones)--Indochina Asset Management Ltd. said Tuesday its
Beta Vietnam Fund has taken a 30% stake in Indochina Juice Co., at a
cost of $3 million.

Indochina Juice Co. has a wholly owned unit, Delta Juice Company
Vietnam Ltd. which is planning to manufacture and sell 'ready to
drink' fruit juices, fruit drinks and fruit-flavored iced teas as well
as fruit concentrates and purees in Vietnam.

Indochina Asset Management didn't elaborate as to when the fruit juice
plant will open or how much it will sell.

The remaining stakes in Indochina Juice Co. and Delta Juice Company
Vietnam Ltd. are held by two groups of U.S. investors. A majority
investment of $6.02 million was made by one of the groups, with the
remaining stake held by the other unnamed group.

Indochina Asset Management Ltd. is a privately-held fund management
group with offices in Ho Chi Minh City, Hanoi and Bangkok. It has the
$68 million Beta Vietnam Fund and the $25 million Beta Mekong Fund
Ltd.

  _________________________________________________________________


Vietnam Govt Pumping Out Flooded Rice Fields 

Hanoi (AP-Dow Jones)--The Vietnamese government is using more than
4,000 pumps to try to save the rice crop in the north of the country
after days of torrential rain.

An Agriculture Ministry spokesman told Dow Jones Wednesday the rice
crop in the south has been largely unaffected, though the Mekong River
is rising in some places.

On July 25, some 92,281 hectares of rice paddies in the north were
under water, down from 128,280 hectares under water July 23. Ha Tay
province was the worst hit, with 29,760 hectares flooded July 25, down
from 40,000 hectares July 23.

Some 1.45 million hectares of Vietnamese land are being used for the
current rice crop. Of these, 1.15 million hectares are in the north of
the country. Each hectare has an average yield of 3.4 metric tons of
rice.

The south produces more rice than the north because generally it has
three crops a year, compared to the north's two.

Some 120 to 220 millimeters of rain fell in the Red River Delta
between July 19-23, while the provinces of Hai Duong, Phu Tho and Ha
Tay received rainfall of 300 to 500 millimeters. In the northern hill
region, rainfall was between 80 to 100 millimeters, the government
said in a report.

  _________________________________________________________________


Asian Cash Rice Mixed; Thai 100%B Dn, Vietnamese 5% Up 

Dow Jones Commodities Service
07/30/97

SINGAPORE (Dow Jones)--Asian cash rice offers are mixed late
Wednesday, with Thai 100%B rice quoted lower, and Vietnamese 5% broken
rice pegged higher, market sources said.

Quotes for Thai 100%B rice now range from as low as $322/ton to as
high as $330/ton, compared with $328/ton Tuesday, according to a
source with a major exporter in Bangkok. Thai 10% broken rice is
largely hovering around $300/ton.

'There are big orders. Everyone's waiting and look at the economic
situation in Thailand,' he said.

In Vietnam, offers for 25% broken rice are largely stable around
$222/ton, while offers for the 5% broken rice are quoted at $260/ton,
up from $255/ton Tuesday. The 10% broken rice is offered at $250/ton.

In the South of India, offers for 25% broken rice are still at
$245/ton while the 10% broken rice is quoted flat at $285/ton. A
trader with a major exporter in Andhra Pradesh said he foresees
continued demand from Yemen and Somalia for Indian parboiled rice, and
from Senegal for 100% broken rice.

According to the trader, some 12,500 tons of 100% brokens, contracted
at $191/ton, FOB, will be shipped to Senegal in early August.

Offers for Indian 100% broken rice, now pegged around $190/ton, are
seen declining, while the Indian 10% broken parboiled rice is offered
at $257-$260/ton.

The previous shipment of 12,000 tons of 10% broken parboiled rice to
Somalia was traded at $261.00, FOB, said the trader in Andhra Pradesh.

-By Joyce Teo +65-421-4825

  _________________________________________________________________


Asian Cash Coffee Steady; Traders Eye Vietnam Crop 

SINGAPORE (Dow Jones)--Asian cash coffee prices are steady late
Wednesday, while traders eye the Vietnam crop as the possible solution
to an anticipated shortfall in Indonesia's 1997-98 output, traders in
Asia said.

Indonesia's benchmark robusta, EK 1 grade 4 (80 defects) is quoted
steady at $50/ton under the September contract on the London
International Financial Futures and Options Exchange for prompt
shipment, FOB, traders said.

'We're hoping Vietnam will fill the gap created by lower production in
Indonesia,' a Singapore-based trader with a leading local trade house
said.

Indonesia's 1997-98 production is expected to be 40% lower than
1996-97, at 270,000 metric tons in the 1997-98 crop year. The
resulting supply tightness is seen pushing Liffe prices higher in the
coming weeks, traders said.

Vietnam is expecting a bumper harvest of around 320,000 metric tons,
of which officials estimate 10,000 metric tons already have been
committed for export in September and October.

The expectation of a bumper crop is going some way to alleviate
traders' fears of supply from Indonesia drying up more quickly than in
previous years.

Liffe July and September finished $53/ton higher Tuesday at $1,563/ton
and $1,668/ton, respectively, on supply concerns.

In New York, the September contract on the Coffee, Sugar & Cocoa
Exchange edged up 0.55 cent/lb to 188.90 cents/lb, while the December
position moved up 1.65 cents/lb to 166.05 cents/lb, supported by
expectations of tightening supplies of arabica beans.

Liffe coffee futures are seen opening $10/ton lower Wednesday, a
second Singapore-based trader said.

'Until New York opens we're not going anywhere,' he said. The
September contract 'will probably climb 10 (dollars) higher before New
York opens, and close around $1,700/ton,' the trader said.

-By Sarah Moore 65-421-4823

  _________________________________________________________________


Vietnam has signed contracts worth US$860 million with Britain's 

South China Morning Post
07/30/97

Vietnam has signed contracts worth US$860 million with Britain's Cable
and Wireless, NTT of Japan and France Telecom. The foreign companies
will spend money expanding Vietnam's telecoms infrastructure and then
recoup their investments through revenue-sharing agreements.

  _________________________________________________________________


Vietnam Post Reaches Phone-Network Accords 

The Asian Wall Street Journal
07/30/97

Hanoi -- After months of discussions about bids from foreign companies
who wanted to install telephone lines in Hanoi and Ho Chi Minh City,
Vietnam Post & Telecommunications Corp. has reached agreements with
the U.K.'s Cable & Wireless PLC and France Telecom.

Cable & Wireless signed a 15-year, $900 million business cooperation
contract for the installation and operation of a telephone network in
Hanoi, a Vietnam Post official confirmed.

The official also confirmed a newspaper report that France Telecom has
signed a similar contract to invest $500 million to develop 540,000
lines in Ho Chi Minh City.

The newspaper also said Vietnam Post is about to sign a deal with
Telstra Corp. of Australia for the installation of lines in Hanoi, but
Telstra spokesman Philip Jones said the company is still in
negotiations.

The government would like to have 5% to 6% phone penetration by 2000,
up from the current 1.29%.

  _________________________________________________________________


Talks in Final Stages On Key Bond Issue To Boost Vietnam 

The Asian Wall Street Journal
07/30/97

Hanoi -- Talks on the issue of Vietnam's first Brady Bonds are in
their final stages, but the parties involved are divided over when the
bonds will actually be issued.

Sources in the State Bank of Vietnam said they hope to issue the bonds
next month while a source outside the country said he expects the
agreement to be finalized in September.

"We are reaching the last step," a source in the State Bank of Vietnam
said.

The issue will be in keeping with the term sheet for the restructuring
of Vietnam's London Club commercial debt finalized in January. The
details are being ironed out by an advisory committee representing
Vietnam's commercial bank creditors, which is headed by both Bank of
Tokyo-Mitsubishi and Australia & New Zealand Banking Group Ltd.

ANZ, Bank of Tokyo-Mitsubishi and Vietnam's central bank are
conferring by fax and telephone on the final points of the agreement,
and will be talking again next week, sources close to the talks say.

Still to be signed is the exchange agreement on redenomination of
nondollar debt into dollars, the formal signing of the fiscal agent
agreement -- which includes the hiring of Citibank for the job -- and
the collateral pledge agreement under which the Federal Reserve of New
York will be the collateral agent. The collateral used will be
30-year, zero-coupon U.S. Treasurys.

"There are not a lot of problems ahead but a lot of documentation to
get through. The whole process takes a lot of time," the source
outside of Vietnam said. "We are aiming for the early part of
September, realistically."

The bond issue would go toward paying off part of the principal and
arrears on Vietnam's $900 million commercial debt. The debt was built
up before 1985 when the country borrowed from abroad, through the
state-owned Vietcombank, to buy capital goods such as equipment and
machinery.

  _________________________________________________________________


Market Brief: Vietnam Maritime Bank 

The Asian Wall Street Journal
07/30/97

Vietnam Maritime Bank said it is in talks with several potential
foreign buyers after receiving permission a week ago from Vietnam
State Bank for a partial sell-off of its shares.

An official confirmed that Vietnam Maritime Bank is allowed to sell up
to 30% of its shares valued at about 80 billion dong ($7.2 million) so
as to raise its total registered capital to 250 billion dong.

If the partial sell-off goes through, Vietnam Maritime Bank would
become the largest joint-stock bank in the north of Vietnam, the
Saigon Times Daily reported. According to the newspaper, the bank's
foreign partners in Thailand, Taiwan and the U.K. wish to buy the
shares. (AP-Dow Jones)

  _________________________________________________________________


Nike eyes first Vietnam investment: report 

Hanoi, July 30 (AFP) - US sportsware giant Nike International may
build a 10 million dollar garment factory in the central Vietnamese
city of Danang, a report said on Wednesday.

The Saigon Times Daily reported that Nike official Ernie Rose met with
city officials on Monday to discuss developing a factory in An Don
Industrial Park.

Nike officials would not confirm the report.

Rose is also reported as saying construction could begin as early as
1998 in a project that would employ up to 1,700 workers.

Currently Nike has no direct investments in Vietnam but has exclusive
sub contracting deals for shoes with five South Korean and Taiwanese
factories in southern Vietnam employing more than 35,000 workers.

Nike's suppliers have recently become embroiled in a number of labour
disputes, including one incident which resulted in the imprisonment of
a Taiwanese supervisor for worker abuse.

Although Nike sub-contracts the manufacturing of shoes to these
companies, it maintains close control over actual working conditions
at its suppliers.

Nike has its own people overseeing the assembly lines to ensure proper
conduct, and last year appointed a labour practices manager to ensure
supervisors toe the line countrywide.

Nike's exclusive suppliers were singled out in a report by New
York-based labour activitist group in April for instances of low pay
and corporal abuse.

fb/djw

  _________________________________________________________________


Europe entrusts 25 million dollar fund to Vietnamese banks 

Hanoi, July 30 (AFP) - The European Union (EU) said Wednesday it was
giving a 25-million-dollar fund to Vietnamese banks to promote small
and medium enterprises, despite troubles in the banking sector.

"Despite the problems the banks have now they are very well equipped
to manage this," said Ricardo Ravenna, EU ambassador to Vietnam. "We
see no need for direct oversight for the banks," he added.

Ravenna told a media conference the EU would sign an accord with
commercial banks in August, with funds to be released by September.

The 25-million-dollar fund would be provided to state owned and joint
stock banks who would lend it to small and medium sized enterprises
(SMEs) at three-to-four percentage points below commercial rates.

But the EU would have no direct supervision over loan allocation,
which the programme's critics say could be a problem.

"It's a big joke. They aren't aware of what's going on here. There's a
banking crisis in this country," said one international accountant who
works with local banks.

The banking sector has been fraught with problems this year, including
several frauds that have been linked directly to defaults on
international letters of credit.

But despite the widespread criticism of the Vietnamese banking
community by the international community, the EU ambassador said he
was confident in the program.

"We are not here to criticise the banking system," he said.

Ravenna said the programme had no specific targets for the amount of
money which should go to the non state sector.

"It is not necessary to ... set a percentage of loans to state owned
or private companies or joint ventures. This is a responsiblity of
commercial banks," said Ravenna.

Other international organizations such as the UN Development Programme
have criticised commercial banks for giving preferential credits to
state-owned companies.

The EU programme is aimed at SMEs having legal capital of between
15,000 and 300,000 dollars who can borrow between 25,000 and 500,000
dollars for periods of up to five years.

Earlier this month, the State Bank of Vietnam called a media
conference to assure the international community that the banking
sector was sound.

It then admitted that about five percent of outstanding letters of
credit amounting to 65 million dollars were overdue.

The problem stems from shoddy practices by even the best run state
commercial banks, said the accountant.

Standard practices such as bad loan provisioning, credit risk
management and auditing are almost non existent, he said.

"I am not sure the Vietnamese banks are able to give proper credit. If
they do, it's probably by chance," he said.

fb/djw

  _________________________________________________________________


Vietnam central banker calls for stable exchange rate 

Hanoi, July 30 (AFP) - An official at the State Bank of Vietnam said a
stable exchange rate was essential to protect the interests of
investors, a newspaper said here Wednesday.

Vu Phuong Lien, vice director of the bank's Foreign Exchange Control
Programme told the Saigon Times Daily that " Vietnam needs to
stabilize foreign exchange relatively to safeguard investors."

The State Bank maintains a managed exchange rate system, which has
enabled the Vietnamese dong to remain stable while currencies in
neighbouring countries have been buffeted in recent weeks.

During the month ended July 25 the official exchange rate was
unchanged according to official statistics at 11,120 to the dollar. On
Tuesday it closed lower at 11,127.

As Vietnamese dong is not convertible outside of Vietnam, the currency
has been protected from the predadations of currency speculators
worldwide, economists say.

"If the dong was traded internationally, I think it would be under
seige. But as it is not, I think it's pretty safe," Jean Luc
Bernasconi, economist at the UN Development Programme in Hanoi said
earlier.

He said Vietnam's currency was not subject to the same speculative
forces that pressure Thailand to float the baht on July 2.

"It's difficult to speculate in the dong. There is no forward market,
Vietnam has no convertibility, there is no stock market and no
portfolio pressures. The pressure is not the same," said Bernasconi.

Bernasconi said the absence of hot money has helped Vietnam's central
bank manage its official exchange rate which has remained stable at
about 11,120 to the dollar for several weeks.

In early March, the State Bank of Vietnam widened the trading band on
foreign exchange to 10 percent, effectively allowing the currency to
depreciate five percent.

Vietnam's reserves stand at about two billion dollars but the country
maintains strict currency controls.

For example, foreign enterprises must be self sufficient in foreign
exchange and dollars may only be purchased for importation of
specifically authorised imports.

Bernasconi said the success of the managed rate of the dong belied an
underlying instability of the system in whcih there was a shortage of
dollars.

Several Vietnamese banks, including the largest state-owned commercial
bank, Vietcombank, have defaulted on letters of credit in recent
months.

"It's a nightmare. These banks are going to die. It's a banking crisis
in this country. It's unbelievable," one international accountant
familiar with Vietnamese banks told AFP.

fb/djw

  _________________________________________________________________


Nike eyes garment production in Vietnam 

Hanoi, July 30 (AFP) - US sportsware giant Nike International may
develop a 10 million dollar garment factory with local suppliers in
the central Vietnamese city of Danang, a Nike spokesman said on
Wednesday.

"We are starting to develop apparel business in Vietnam, said Martha
Benson, Nike's director of communications for the Asia-Pacific region.

Benson was speaking to AFP following a local report that a Nike
representative visited the central city of Danang to discuss a 10
million dollar apparel factory.

"This is part of an ongoing process to explore sites for manufacturing
development with subcontractors," said Benson.

She said that while Nike would not be investing directly in the
companies, "the majority of apparel manufactured would be for Nike, so
indirectly Nike is creating jobs."

Benson confirmed that Nike was discussing a possible deal with a local
state owned company in Danang that could employ up to 1,700 people.

Nike was exploring subcontracting deals countrywide with small
state-owned apparel companies, said Benson, speaking by telephone from
Athens, Greece.

Nike has no direct investments in Vietnam but has exclusive sub
contracting deals for shoes with five South Korean and Taiwanese
factories in southern Vietnam employing more than 35,000 workers.

Nike's shoe suppliers have recently become embroiled in a number of
labour disputes, including one incident which resulted in the
imprisonment of a Taiwanese supervisor for worker abuse.

Despite the clashes between supervisors at Nike's foreign owned
suppliers and local workers, Benson said Nike's preference for
domestic garment subcontracters "had nothing to do with" using local
bosses.

She said that whereas Nike uses foreign suppliers in Vietnam for
footware which requires large amounts of capital and sophisticated
technology, garment making is much simpler.

"Footware requires tens of millions of dollars and employs a minimum
of 4000 workers. Apparel is more fragmented and we usually work with
local companies," she said.

Although Nike sub-contracts the manufacturing of shoes to these
companies, it maintains close control over actual working conditions
to ensure its suppliers toe the line.

Nike's exclusive suppliers were singled out in a report by New
York-based labour activitist group in April for instances of low pay
and corporal abuse.

  _________________________________________________________________


Vietnam's Car Sales Slump 

HANOI (July 30) XINHUA - Car sales in Vietnam have slumped during the
first six months of this year partly due to the over saturation of the
market and a slowdown in the country's economy, according to local
press reports.

The Vietnam Investment Review said in its latest issue that all of the
country's automobile manufacturers have reported plunging sales for
the first half of the year with losses between 15-35 percent.

The sales figures in the industry have fallen dramatically compared to
those of last year, with all 9 operating auto manufacturing firms out
of the 14 licensed car joint ventures only selling 2,545 cars in the
period.

This is a 20 percent drop, the report said. The Vietnam Motors
Corporation, the only company that has reported a profitable turnover
for the last three years, said it would find it hard to go on this
year.

  _________________________________________________________________


Vietnam PM Seeks Investment In Profitable State Cos - Paper 

Hanoi (AP-Dow Jones)-- Vietnam's Prime Minister Vo Van Kiet has said
he wants the government to give money to successful state-owned
companies so that their products will be able to compete with imports,
the Vietnamese News reported Wednesday.

Vietnam's trade deficit stood at $4.0 billion last year and economists
frequently urge the Vietnamese government to boost its exports.

Vietnam has an import substitution policy in a number of areas and,
according to the state-run paper, Kiet said he wants fewer imports of
products that can be made at home.

  _________________________________________________________________


Vietnam Floods Threaten Farm Land; Holes Found In Hanoi Dike 

Hanoi (AP-Dow Jones)-- Vietnam's flimsy dike system is in peril as the
annual rainy season threatens the country with widespread flooding,
official media reported Wednesday.

Last year's months-long flooding claimed more than a thousand lives
across the country, and cost Vietnam millions of dollars in lost
property.

Weeks of heavy rain so far this month have raised water levels in
major rivers throughout northern Vietnam, threatening protective dikes
that hold back rivers and reservoirs, the Communist Party newspaper
The People reported.

At least 500 meters of river dikes in the Red River delta province of
Nam Dinh showed serious erosion or were washed away by torrential
downpours last week, the newspaper said.

In Hanoi, inspectors have found gaping holes in the city's main dike,
which helps keep the overflowing Red River from spilling onto the
capital's streets.

In Vietnam's southern provinces, water has been rising fast in the
lower end of the Mekong River where rain has fallen ceaselessly for
the last two weeks. In many places, water levels are higher than they
were at the same time last year.

Thousands of hectares of rice and vegetable crops have been flooded
and remain under water. Whole harvests may be ruined if the rain
continues and excess water doesn't run off quickly, the newspaper
report said.

Prime Minister Vo Van Kiet ordered local authorities this week to
draft emergency flood plans and to alert residents with updated
information on the threat of floods.

Touring the Mekong delta region to assess the risk of flooding, Kiet
said advanced warning and contingency plans could help avert a repeat
of last year's disastrous flooding.

  _________________________________________________________________


Vietnam: 10,000 Tons Coffee Committed For Sept/Oct Shipment 

SINGAPORE (Dow Jones)-- Vietnam's coffee shippers have committed
roughly 10,000 metric tons of coffee for September/October shipment,
Doan Trieu Nhan, chairman of Vietnam's Coffee and Cocoa Association
(Vicofa) told Dow Jones Wednesday.

Harvesting has begun in Dong Nai and Daklak provinces, Nhan said.
Exports will start in September and October, he predicted.

Nhan said his estimated figure for commitments already made for the
1997-98 crop was based on information from a meeting Tuesday with
Vicofa board members.

Prices for new-crop robusta coffee committed by private companies for
shipment in the fourth quarter of 1997 are 15,000 dong a kilogram,
Nhan said.. ($1=11,682 dong.)

'I think this crop is a very good one, but I'm afraid of the rainy
season,' Nhan said. 'There's too much rain in our country.'

In the 1996-97 harvesting period, wet weather caused severe delays to
Vietnam's exports and slowed the drying process. Some moldy coffee
resulted from inadequate drying facilities.

As reported, Vietnam is expecting a bumper harvest of around 320,000
tons in 1997-98.

-By Sarah Moore 65-421-4823

  _________________________________________________________________


Cable car line to be built in Vietnam's tay ninh province 

Hanoi, July 29 (VNA) - Ground has been broken for the construction of
a 1.3 km long cable car line in the Ba Den (Black Lady) Mountain
Resort in the southwestern province of Tay Ninh.

The Tay Ninh Tourism Company is developing the US$2.7 million project,
while China's Chong Qing Technology Company is responsible for
supplying equipment to the project.

Ba Den, 986m high, is the highest mountain in the province and the
entire southern region. From a distance, the mountain looks like a
conical hat surrounded by tropical forests.

Under the leaf canopy, there are a number of beautiful caves and
pagodas.

Recognised as a national historical and cultural site by the State in
1989, Ba Den Mountain receives a great amount of funds every year for
upgrading infrastructure facilities.

In a bid to preserve the eco-system in the area, the province plans to
reforest 200 ha of war-devastated forest over the remainder of the
year, so that the goal of "regreening" 1,185 ha in the mountain area
can be completed by the year 2000.

Ba Den Mountain, together with such scenic spots in the locality as
Vam Co River, Tay Ninh Holy See, Binh Thanh Ancient Tower, Dau Tieng
Reservoir and the An Thoi tunnel form a core of tourist attractions in
Tay Ninh province.

The Tay Ninh Tourism Company is expected to receive one million
tourists a year once the cable car project is completed.

(VNA)

29-07 1341

  _________________________________________________________________


Vietnam should be 1st nation admitted into apec: rafidah 

LANGKAWI ISLAND, Malaysia, July 29 (Bernama) - Vietnam, which was
admitted into Asean in 1995, should be admitted first into the Asia
Pacific Economic Cooperation (APEC) forum before other countries are
allowed in.

Minister of International Trade and Industry Rafidah Aziz said Asean
has reached a consensus it does not want its members to be left out
when other countries are allowed in.

"We hope that by the next Apec summit in Vancouver at the end of this
year, Vietnam would be formally accepted into Apec," she told
reporters when met at the Langkawi International Dialogue in this
island resort, situated in northern Kedah state Monday.

Rafidah, who was responding to proposals to let Russia into the
grouping, said Apec should be careful about admitting members as
Israel wants to join the bandwagon as part of the Special Working
Group in Apec.

On the dialogue where she chaired a session on "Inter-Governmental
Organisation-WTO and Asean," Rafidah urged developing countries to
follow Asean's footsteps to develop smart partnerships, leading to an
international trade regime which guarantees fairness among trading
countries.

"It (the smart partnership) will also ensure that countries will not
impose actions unilaterally....that a country cannot take action which
will jeopardise international trade," she said.

She said in the World Trade Organisation (WTO), there already exists a
new partnership among smaller groups which often brought up matters
not relevant to trade.

Rafidah said they raised political issues, human rights, environmental
issues and workers' rights issues and others, which should be opposed
by developing nations.

(Bernama)

29-07 1340

  _________________________________________________________________


Vietnam urged to develop its antibiotics industry 

Hanoi, July 29 (VNA) - Health authorities have called for a growth in
Vietnam's antibiotics industry as contagious diseases and parasites
now account for 30 percent of all patients in the country.

According to the Ministry of Public Health, Vietnam uses about US$500
million worth of medicine every year, of which 40 percent are
antibiotics.

The amount is expected to reach US$1 billion by the year 2000 when the
country's population reaches 80 million.

In the past several years, the health sector has outlined plans to
produce antibiotics domestically. In 1996, a Vietnamese-Korean joint
venture was launched, the first in the country, with the name
Woopyung-Mekophar. The joint venture company, with the local
Pharmaceutical Enterprise 24, has produced 20 tonnes of amoxillin
materials.

At a recent conference the general director of the Vietnam
Pharmaceutical Corporation, Nguyen Trong De, said," Vietnam's pharmacy
sector needs to produce antibiotics materials."

Attendees at the conference also voiced concerns about the
availability of antibiotics in Vietnam. Many antibiotics were imported
legally, but others were produced by Vietnamese enterprises with
materials imported from France, Germany, Korea and India.

A recent survey by the Hanoi Medical College revealed that 81 percent
of people who used antibiotics bought the drugs without prescriptions
and were not aware of their negative side effects.

The unprescribed use of antibiotics has threatened the health of many
people.

To remedy the situation, the health authorities need to take strict
measures to control the troubled medicinal market.

Focus should also be given to the production and distribution of
antibiotics.

The industry has also been urged to reconsider the sale of antibiotics
only by prescription to ensure the safety and health of the public.

(VNA)

29-07 1356

  _________________________________________________________________


Vietnam machinery installation co earns $us60 mln in 1996 

Hanoi, July 29 (VNA) - The National Machinery Installation Corporation
is making intensified efforts to promote its business activities to
meet the growing demand in both local and overseas markets.

Since its establishment 30 years ago, the corporation has installed
machinery for more than 2000 major projects in Vietnam.

These projects include the hydro-electric power plants in Hoa Binh
south west of Hanoi (the biggest plant of its kind in Vietnam), and
Tri An (in the south), the thermo-electric power plants in Uong Bi,
Pha Lai, Ninh Binh (in the North) and Phu My (in the south) and dozens
of cement plants, paper mills, textile factories and fertiliser plants
across the country.

The corporation last year produced a great quantity of additional
equipment for the installation work and earned VND650 billion (around
$US60 million).

In addition to purchasing more advanced instruments to promote its
competitiveness, eighteen company members of the corporation have
diversified its business activities by entering into partnerships with
experienced firms to build and install large oil tanks, liquefied gas
warehouses and other facilities which require high technology.

The corporation recently established a ship building company, an
import-export company and a design consultancy company, which are
among its profitable firms.

Members of the corporation are engaged in construction projects to
build the Hoanh Bo thermo-electric power plant (in the northeastern
province of Quang Ninh), the Pha Lai No. 2 power plant near Pha Lai
town (east of Hanoi), the Dung Quat Oil Refinery (Central Vietnam) and
the Sao Mai Cement plant (in the southern province of Kien Giang).

(VNA)

29-07 1601

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Vietnam national seafood co posts 8 pct rise in revenue 

Hanoi, July 29 (VNA) - The Vietnam National Sea Product Export and
Import Corporation (SEAPRODEX Vietnam) earned import-export revenue of
$US114.2 million in the first half of the year, accounting for 48 per
cent of the yearly target or 8 per cent more than that of the sme
period last year.

The company's total revenue from sea product processing was $US42.5
million, or 59 per cent of the yearly target, up by 42 per cent over
the same period last year.

The corporation's progress was attributed to increased efforts made by
sea product export businesses to organise seminars and to participate
in exhibitions and fairs held locally and abroad with the aim of
seeking more outlets and and export contracts.

Vietnam's sea products are sold in 28 foreign countries, with shrimp
being sold in Asian and US markets. Vietnam's for-export aquatic
products are now competitive with its counterparts exporting to the
same countries.

(VNA)

29-07 1613

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