VET: Large capital for 4 state owned banks to deal with bad bank debts

[Dao Van <daotb@yahoo.com>]

Wednesday, October 20, 1999 Urban unemployment remains alarming

(VET)- A survey jointly conducted by
the Ministry of Labor, War invalids and Social Affairs and the General
Statistics Office shows that 614,700 people in urban area had been
jobless as of July 1999.  In other words in the 1996-99 period the
unemployment rises 16 percent a year on average or around 73,000 people
a year. 

In 1999 the rate of unemployment is estimated at 7.4 percent of the work
force in the urban area.  Hanoi's unemployment now stands at 10.3
percent and Dong Nai province has the lowest rate of unemployment, but
still stands at 5.9 percent. 



2,000 workers to be exported to Taiwan

(VET)- According to a frame agreement
signed between Vietnam^Òs Economic and Culture Office in Taipei and
Taipei Economic and Culture Office in Hanoi, in the last three months of
the year around 2,000 Vietnamese workers will be sent to Taiwan to work
there for a trial period, and after that the expansion of the frame
agreement would be considered.  The construction and electronics
industries, cares for the elderly and children and sailors for fishing
fleet are in great demand in Taiwan. 



Personal income tax for Vietnamese should be down

(VET)- According to the statistics from
the Price Waterhouse Coopers, a foreign consulting company on tax and
auditing in Vietnam, in order to pay the monthly salary for a Vietnamese
staff around US$ 2,000 foreign companies actually have to pay up to US$
8,800, US$ 5.400 of which to pay for his or her personal income tax. 
Most of foreign investors in Vietnam maintain that the rates of personal
income tax in Vietnam remain too high and unreasonable, therefore in
order to lower the cost foreign investors tend to recruit foreign staff
directly. 

Mr.  C.Burkard of the German Businessmen Association advised Vietnam to
lower down the personal income tax by 30 percent for the Vietnamese
people.  According to the Price powerhouse and Coopers the personal
income tax for the Vietnamese is the highest in the world, which has
discouraged skilled Vietnamese staff and foreign investors. 



66 Industrial Zones and EPZs in Vietnam

(VET)- As of the end of September
Vietnam had established 62 industrial zones and three export processing
zones (Tan Thuan, Linh trung and Hai Phong) and one high- tech zone in
Hoa Lac.  Over 200 domestic companies have been in operation in the IZs
and EPZs with the total capital of VND 2,000 billion and over 500
foreign invested projects with the total registered capital of US$ 6.2
billion, in which US$ 2.7 billion have been realized. 



11 million tons of crude oil produced in 9 months

(VET)- The production of crude oil
during the last nine months of the year rose 20.8 percent over a year
earlier to over 11.24 million tons.  The exports rose 27.3 percent from
last year to 10.982 million tons.  Petro Vietnam also pumped 766 million
cubic meters of gas to Ba Ria and Phu My gas power plant. 



American firm grants high-tech equipment to Universities

(VET)- The HCM City Technical College
and Ha Noi University of Technology have been donated US$23,100 worth of
automation equipment from The American Rockwell Automation Group.  Mr. 
Y. S. Loh, Rockwell Automation regional director of Southeast Asia said,
"The students from these two institutions will benefit from hands-on
workshops on our Programme Logic Controllers (PLCs).  They will learn
how to programme and apply the PLCs in various industries". 



Samsung holds risks management seminar in Hanoi

(VET)- At a seminar jointly held by
Samsung and the Vietnam Re-insurance Corporation
(Vinare) in Hanoi, Samsung Fire and
Marine Insurance Co.  has advised domestic insurers to set up their own
risk management research centres. 

The seminar was mainly focused on the sharing of methods for identifying
and evaluating common hazards in the electricity, chemical, plastics,
garment and construction industries. 

About 100 of the 500 Korean companies operating in Vietnam have been
provided with the insurance services from Samsung, 80 percent of which
based in HCM City and 20 percent in Ha Noi and other cities. 



Large capital for 4 state owned banks to deal with bad bank debts

(VET)- Four State owned commercial
banks are expected to get VND 3,350 billion or equivalent to US$239.47
million from the government to restructure their bad debts owed by State
owned enterprises.  The government money will be pumped to the State
Bank of Vietnam to loan the four banks at 0.2 percent monthly interest
with the one-year maturity.  Of the four state owned commercial banks
the Industrial and Commercial Bank of Vietnam (Incombank) will receive
VND 2,020 billion, the Bank for Foreign Trade of Vietnam ( Vietcombank)
VND 530 billion, the Vietnam Bank for Agriculture and Rural Development
VND 500 billion and the Vietnam Bank for Investment and Development VND
300 billion. 

They are authorized to use the funding to make commercial loans and to
keep separate accounting books for these.  In addition, they will not be
taxed on the interest accruing.  The problem for the four banks is that
they failed to sell the collateral they had held for bad debts due to
difficulties in auction procedures and the snail-paced legal procedures.



PetroVietnam signs new PSC with Unocal and Mitsui

(VET)- Yesterday PetroVietnam signed a
production-sharing contract (PSC) with Unocal Southwest Vietnam
Exploration and Production Ltd.  (USA) and Japan's Moeco Southwest
Vietnam Petroleum Co.  Ltd.  a subsidiary of Mitsui Oil Exploration Co. 
Ltd.  US on the petroleum exploration and production of Block 52/97 at a
depth of approximately 60-70m.  The block covers 2,060sq.m located about
530km west Southwest off Vung Tau. 

This is the second PSC PetroVietnam has signed this year with the same
foreign partners, and the first PSC signed in July at Blocks 07 and
08/97.  Since 1988 PetroVietnam has signed 36 PSCs on the oil and gas
exploration and production. 



Staffordshire pottery producers seek Vietnamese partners in HCMC

(VET)- SGT reported that executives
from 25 pottery and porcelain businesses in the British region of
Staffordshire met with potential Vietnamese partners in HCMC early this
week to seek deals and presents the application of British technology to
this sector.  Clive Drinkwater, export promoter of Business Link
Staffordshire, was quoted as saying that the Vietnam trip was aimed at
exploring the local pottery and porcelain market and the technology
applicable to domestic sector.  Local producers expected the
Staffordshire businesses to help them with technology transfer and
training of their workers. 



Export rice price up

(VET)- SGT quoted an official from the
Vietnam Food Association's executive board as saying that the 25 percent
broken rice was quoted at US$185 a ton, FOB Saigon Port, up from US$177
to US $178 a ton from late last week, and the 5 percent broken rice at
US$205 a ton by local businesses, but foreign traders had asked for
US$202-US$203 a ton. 

The official said domestic rice prices had increased quite
satisfactorily.  The summer-autumn rice was traded at VND 1.550-VND
1,600 a kilogram in the Mekong Delta, which has allowed local exporters
to enjoy a sum of profits.  In addition, the State interest support for
rice purchase has also encouraged businesses to buy more rice for stock.
100,000 tons of rice has been exported in the first half of October,
raising the total export volume to 3.9 million tons so far this year. 



Students cram fair to seek US study places

(VNS)- Thousand of would-be foreign
students attended the first traveling US campus fair which toured Hanoi
and HCM City.  The fair, co-hosted, this week, by the Ha Noi University
of Technology and the US-based Institute of International Education
(IIE), was aimed at giving Vietnamese students more information on
potential courses abroad. 



State incentives sought for Vinasteel upgrade

(SGT)- Vinasteel-the Vietnam Steel
Corporation -has asked the Government to provide certain financial
incentives for a US$171 million upgrade of the Southern and Thai Nguyen
Steel companies. 

The corporation should be allowed to retain total accumulated capital,
depreciation funds and corporate tax and be given access to low-interest
State loans, according to Vinasteel's deputy director general.  Pham Chi
Cuong says the upgrade will help the two companies improve their
competitiveness for when Vietnam joins the ASEAN Free Trade Area. 

Southern Steel will receive the bulk of the funding, US$151 million. 
The company will close down those furnaces with capacities of fewer than
12 tons and will build modem facilities at a cost of US$140 million to
raise its annual capacity to 300,000 tons.  The extra US$ 11 million
will be spent on upgrading the company's steel-rolling facilities.  Thai
Nguyen Steel will spend US$20 million modernizing its plants to raise
product quality and reduce the consumption of electricity, fuel and
material. 



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