VET/News - 080999

[bich dao <daotb@yahoo.com>]

Monday, Aug 09, 1999 Farmers get compensation worth VND 1 billion from
Viet Thai Poultry JV

(VET)- At the trial yesterday the People's Court of Binh
Duong Province decided that the Viet Thai Poultry Joint Venture Company
(VTP) would have to compensate VND 1,050 million for 40 farming
households for losses they have to suffered after a breach of contract
on the part of the VTP.  According to the contract during the 1995-1996
period the farmers would be responsible to raise chicken for VTP for
five years and they provided buildings, cages and all necessary
equipment; and the company would provide them with chickens, veterinary
medicine and pay for the labour.  However, VTP failed to abide by the
contract after supplying a few flocks, on the grounds that they could
not find sufficient chickens.  This resulted in heavy losses for the
farmers; hence they filed a lawsuit against the company. 



Green light to VN-French tar joint venture

(VET)- The Prime Minister has signed Circular
No.3370/VPCP-DK dated July 27, 1999 approving in principle with the
establishment of a tar production joint venture of the three partners
including the Vietnam Petrol and Gas Corporation- Petrovietnam; Ba Ria -
Vung Tau Production - Service and Trading Company and French Total
Group. 



Rural energy needs US$ 150 million

(VET)- The Prime Minister has approved of the total cost
of US$150 million for energy for rural area from the loan of the World
Bank (WB) and around VND 600 billion of the counter capital of the
Government.  The objective of this project is to bring electricity to
350 villages in the northern region, 221 villages in central region and
120 villages in southern region. 



Japanese loans to VN electricity industry worth US$ 5 billion

(VET)- According to the Vietnam Electricity Corporation
(EVN), the total loan from OECF of
Japan to the Vietnamese power industry will reach up to US$ 5 billion in
the coming period, this will the biggest loans to EVN.  EVN^Òs projects
that will use this loan include Dai Ninh hydro-electricity project (400
MW), the expanded Uong Bi thermal power plant (300 MW), Se San
hydropower project No.3 (250 MW).  EVN has so far owed OECF around US$ 2
billion. 



Four projects licensed in Hanoi in July

(VET)- According to Hanoi's Department of Planning and
Investment 4 projects were licensed in July with the total capital of
US$ 31.550 million.  Bourbon supermarket JV with France topped the list
of the four with the total capital of US$ 30 million; US$ 12.69 million
of which serves as its legal capital.  Other three projects belong to
the 100 percent foreign owned enterprises, mainly on the computer and
software industry. 



Sugar output: one million tons in 2000

(VET)- According to the Ministry Trade the sugar output
in the 1998-99 was estimated at 752,500 tons, and with this pace the
sugar output is expected to reach one million tons by the year 2000. 
According to the estimates of sugar experts after their balance of the
supply and demand Vietnam may have a surplus of 200,000 tons of sugar
each year, let alone a big amount of smuggled sugar from neighboring
countries at the low price; and in face of such a situation the Ministry
Agriculture and Rural Development MARD is considering working out a
scheme for sugar export in 2000. 



An inventory of 42,000 tons of coffee

(VET)- There is an estimated inventory of 42,000 tons of
coffee nationwide due to difficulty seeking its markets, 8.500 tons of
which belong to Vietnam Coffee Corporation
(or Vinacafe). In the first 7 months of the year Vinacafe
has exported 34,000 tons, earning US$ 47 million, or accounting for only
26 percent of the year target, and equivalent to 49.5 percent of the
same period last year.  Vinacafe also disclosed that apart from the
market problems, the coffee export turnover has also fallen due to the
reduction of 15 percent for coffee price on average in the first 7
months of the year compared with the same period last year. 



Rice exports earns US$ 630 million

(VET)- Vietnam has exported 2.8 millions of rice in the
first 7 months of the year, earning US$ 630 million or up 2 percent
compared with the same period last year or equivalent to 70 percent of
the year target.  Asia markets for Vietnamese rice accounted for over 50
percent; Africa 20 percent, Middle East 15 and Europe and America market
hold the rest of the percentage. 



Garment Exports earn US$ 900 million

(VET)- Garment industry has earned US$900 million since
the beginning the year worth of its export of garment, up 7.6 percent
over the same period last year.  According to the estimated from both
the Ministries of Trade and Industry the total export values for the
whole year may reach up to US$ 1.55 billion or an 18 percent increase
over last year.  The industry officials said the garment exports this
year have some encouraging signs, namely, EU market still remains
stable, Japanese market has sign of recovery; besides there have been
positive signs in the new markets including CIS, Eastern Europe and the
Middle East. 



Tourist projects invested by a private company

(VET)- Dong Ha Tourist Company, a private owned based in
the northern coastal province of Quang Ninh's Cam Pha Township, is
reported to have invested VND 1.9 billion to attract tourists aimed to
restore Vung Duc Cave and upgrade a beach in Bai Tu Long Bay. 



Hai Phong exported 1.2 million pairs of sports shoes

(VET)- In the first 7 months of the year Le Lai footwear
enterprise under company Dinh Vang Company Limited of Hai Phong has
exported to EU market 1.2 million pairs of sports shoes of various
types.  The company has expected to export 2 million pairs of shoes and
created jobs for 1,800 workers. 



Vietnam qualified for a semi-final

(VET)- Vietnam beat the Philippines 2-0 in their final
Group A qualifier in Brunei yesterday.  So it holds the second place in
the Group after Thailand for goal difference, it means that Vietnam's
opponent at the semi-final would be the winner of today^Òs match of Group
B, either Indonesia or Singapore.  Vietnam coach Alfred Riedl said he
did not mind which team Vietnam will face in the next round.  Striker
Phuong Nam scored both goals at yesterday's match for the team- the
first one at the injury time of the first half and second one from the
penalty kick. 



Co-operation to find coal deposits in Hong River Delta

(VET-VNS)- Vietnam Coal Corporation (Vinacoal) and the
Japanese New Technology and Energy Development Organization (NEDO) have
signed an agreement to develop the second stage of a project this month,
exploring for coal deposits in the Hong (Red) River Delta).  The
Japanese Coal Energy Center (Jcoal) and Vinacoal will combine efforts to
research and evaluate the geological conditions and properties of the
coal reserve located 1,000m below the surface.  They will make
appraisals of the coal seams lying between 1,000m and 2,000m
underground, using seismologic methods.  The Japanese Government will
invest US$8 million in the project, with the balance of VND 15 billion
(over $1 million) provided by Vietnamese interests. 



Business Beat (Quoted by VNS)

1. The Government's recent efforts to streamline applications for land
transfer deals and construction permits have created a backlog for local
authorities, especially in HCM city. 

Accustomed to having to go through a complicated procedure when applying
for construction permits, people seem confused by the new and more
liberal regulations. 

Decree 52, effective since late July, cuts down the time needed to
process construction permits and states several instances, where a
permit is not needed.  But officials in charge of this area are afraid
that nobody will be held responsible in the event of building collapse
and that nobody will oversee the quality of construction if no permits
are required. 

HCM City authorities reached a compromise by asking their officers to
comply with the new regulations - as long as they are beneficial to
local people.  Pending detailed guidelines from the Government, which
will be issued in October, officials should abolish old rules that go
against the new decree. 

Perhaps another approach should be considered.  State management in
construction should also be overhauled so that the officials can feel at
ease with new administrative reforms and overcome their own inertia. 

2. In a similar situation, procedures for land transfer have also been
streamlined - so much I that HCM City Cadastre Office had to ask the
General Cadastre Department for guidance.  In its official
correspondence, the department confirmed that land users can transfer
their land, even when they do not have official land use certificates,
and that any certificates issued by local authorities will suffice, at
least until the end of this year.  By that time, easier registration for
land use certificates will be in use. 

Urban dwellers can now buy farmland, which has been slated for suburban
development to build houses and gardens.  Land deals can be conducted at
market prices agreed by both parties and local authorities should take
no role in allowing or disallowing a deal.  Their job is to confirm the
deal as it occurs.  The correspondence also reminds that there is no
limit on how much land a person can buy. 

With these new regulations, one can expect to see a revival of a real
estate market that has been slumbering for the last two years.  And one
can understand the reluctance of local officials to part with the old
rules.  Simplified paperwork means less hassling power. 

3. There's another example of liberal policies from the central
Government being nullified by lower level of the apparatus.  The
State-owned Agriculture and Rural Development Bank, under order from the
Government, agrees that farmers can obtain loans of less than VND 10
million (some US$715) from the bank without having to mortgage their
land. 

But the bank still rules that farmers will get such loans only if they
submit their land use deeds to the bank.  To farmers, giving their land
deeds to banks for small loans is no different than using their land as
collateral. 

4. Most farmers' dream of getting land-use certificates.  But throughout
the country, thousands of certificates are waiting for collection by
their owners.  There are 50,000 certificates in Dong Nai, 13,000 in Binh
Duong, 19,800 in Ben Tre and 19,300 in Binh Thuan.  You may well ask
why.  It's because they don't have enough money to pay the registration
fee of two per cent of the value of their land.  Officials have said
that land registration is the responsibility of the State and farmers do
not have to pay to get registration documents on the land they have been
tilling for generations.  Many localities ask farmers to pay taxes and
other fees before handing over the certificates. 

The 20 per cent land transfer tax is also considered too high and plans
are in the pipeline to lower it to 5 per cent.  The Ministry of Finance
has already ruled that land transfer is not subjected to value-added tax
(or VAT). 

5. A new type of promotional service recently made its debut in HCM
City.  A service company will sell discount coupons with which the
holders can choose from a long list of discounts on goods at various
shops.  The company acts as a go-between linking consumers with shops. 
Students will work part-time on a commission basis selling the vouchers.
The only problem with this is that the discounts have to be attractive
enough to entice consumers to buy the products and that retailers will
not be fooled into paying commission if no consumers show up. 

6. It is hard to believe that an industrial park developer would block
the road into its own park, creating difficulties for tenants.  But that
is what happened in Da Nang-based Hoa Khanh IP. 

It turns out that one of its tenants, Foodinco, was producing concrete
pipes, which incidentally were the same products that the developer was
producing in a nearby factory.  The State-owned Foodinco had to close
its plant once in May because the developer said concrete pipe
production was not suitable with the master development plan of the IP. 
After getting the green light to resume production under certain
conditions, Foodinco found its road blocked with high dunes of earth. 
With the local authorities' intervention, the earth dunes were cleared
but problems remain.  This type of conflict can happen between
State-owned companies whose own short sightedness is revealed by
allowing its own short-term benefits to blur any long-term business
strategy. 



Public transport is answer to VN city traffic threat, experts recommend

(VNS)- Vietnam's major cities are in danger of becoming
choked by traffic unless more is done to encourage motorists to use
public transport, a conference in Hai Phong has heard. 


FULL TEXT



GE re-enters VN market after 25 years' absence

(VNS)- General Electric Appliances has officially
returned to the Vietnamese market after an absence of nearly 25 years. 


FULL TEXT



Korean Company lodges lowest tender for Hai Phong Bridge

(VNS)- A Republic of Korea Company has lodged the lowest
of five tenders for the building of a 504m-long bridge across the Luoc
River, Hai Phong, as part of the upgrading of Highway No.  10. 


FULL TEXT



Lower Japanese tax to boost aquaculture export

(VNS)- Exports of Vietnam's already substantial
aquaculture produce is expected to rise later this year because Japan
has dropped its import tax from four to one per cent. 


FULL TEXT
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