VET: Air flights to be expanded

[Dao Van <daotb@yahoo.com>]

Monday, October 25, 1999 New appointments

(VET)- According to the recent decision
by the Political Bureau Mr.  Thai Phung Ne was appointed the Party
Secretary for the Party Committee of Vietnam's central province of Phu
Yen.  Mr.  Thai Phung Ne has started his new party position since the
middle of the October.  Before being appointed the party chief of Phu
Yen Province Mr.  Thai Phung Ne was Deputy Ministry of Industry. 

The Political Bureau has also decided to appoint Mr.  Ho Duc Viet,
former chief of the Party Central Organization Commission as the Party
chief of the northern and mountainous province of Thai Nguyen to replace
Mr.  Ngo Hai, who was appointed as a deputy chief of the party central
Ideological and Cultural Commission. 



Exports in 1999 exceed the projected year target

(VET)- The Ministry of Trade estimated
that the exports in 1999 amounted to US$ 10.7 billion or up 14.3 percent
over last year and exceed the year target projected by the National
Assembly.  Most of the major export items increase considerably such as
rice with an estimated increase of 12 percent and crude oil with 21
percent; seafood with 11 percent, garment 14 percent, footwear 31
percent, electronics items and computers 15.5 percent.  The import
values are estimated at US$ 11.3 billion or a drop of 2 percent compared
with last year, thus the trade deficit will be around US$ 600 million in
1999 or equivalent to 27.5 percent of last year
^Ñs trade deficit. The Ministry of Trade also predicted
that the export values for the year 2000 is around US$ 12 billion or up
12 percent and import values around US$ 12.5 billion or up 10.6 percent
over this year. 



Protection of local sugar proposed

(VET)- Borbon - Tay Ninh Sugar joint
venture has submitted a formal proposal to the government for the
protection of locally refined sugar and measures to be taken to prevent
massive influx of imported sugar. 

According to a reliable source in the first 1998-99 sugar season this JV
with the total capital of US$ 95 million has suffered loss of over US$ 9
million due to the unpredictable changes in sugar prices in the market. 



VP Bank to buy additional VND 25 billion of the govt.  bonds

(VET)- A VP Bank source disclosed that
VP Bank expected to buy additional VND 25 billion worth of the
government bonds between now and the year end, raising the total values
of the government bond VP Bank expects to buy up to VND 50 billion.  The
price of bonds the VP Bank has offered to buy is ranged between 97.5
percent to 98 percent of the face value. 



Export of warm coats for dogs

(VET)- 10,000 sets of warm coats worth
US$ 23,000 have been shipped out by My Linh Company according to the
contracts signed with Poscat firm of France.  My Linh Company said the
warm coats were made according to orders from Poscat firm, and 50
material to make warm coats for dogs were locally supplied.  My Linh
Company is said to have exported these products for the last 5 years. 

Another company in Tan Binh district has also exported 6 containers of
12,000 beds for dogs and cats worth US$ 30,000.  All material for making
beds for dogs and cats on orders are locally supplied. 



Air flights to be expanded

(VET)- The national flag carrier,
Vietnam Airlines, is reported to discuss with Swiss Air of Switzerland
and Lauda Air of the Netherlands the expansion of HCMC City-Zurich
(Switzerland) and Vienna (Austria)
routes.  Vietnam Airlines has also intended to add one more round-trip
flight between HCM City and Manila every Saturday beginning next month,
raising the total number of flights to three a week. 



Green light given to border economic zones

(VET)- In a move to promote trades with
the neighboring countries the Vietnamese government has given green
light to eight key border economic zones in Vietnam, including Lang Son,
Mong Cai of Quang Ninh Province, Lao Bao of Quang Tri Province, Cao Bang
and Lao Cai in the north, Cau Treo of Ha Tinh Province in the center,
and Moc Bai of Tay Ninh Province and Ha Tien of Kien Giang Province in
the south.  They were selected for having border communication junctions
and encompassing traditional trading passes.  According to the
government^Òs decision enterprises operating in the zones will enjoy some
incentives such as tax benefits, simplified administrative procedures,
and priority in infrastructure construction. 



Vietnam - Saudi Arabia diplomatic relations established

(VET)- A joint communiqué on the
establishment of diplomatic relations between Vietnam and Saudi Arabia
was signed in New York City on October 21.  Mr.  Ngo Quang Xuan,
Vietnamese Ambassador to the VN mission at the United Nations said the
signing marked a historical event in the diplomatic relations between
the two countries and a major step toward promoting the bilateral
relations, especially the economic and trade relations between the two
countries. 



Lending rate ceiling down

(VET)- On October 22 the State Bank of
Vietnam SBV issued two decisions, one on the adjustment of lending rate
ceiling in Vietnamese dong and another one on the adjustment of lending
rate for the re-supply of capital from the State Bank to credit
organizations.  According to the first decision the lending rate ceiling
of the credit organizations in urban areas in Vietnamese dong will fall
from 1.05 percent / month down to 0.85 percent/ month.  The lending rate
ceiling for the rural commercial joint stock banks will remain unchanged
at 1.15 percent/month.  According to SBV ^Ñs second decision lending rate
ceiling for the re-supply of capital from the State bank to the credit
organizations would fall down to 0.5 percent/ months and the decision
will be effective from November 1, 1999. 



Two JVs to be dissolved

(VET)- The Ministry of Agriculture and
Rural Development or MARD as it is known, has proposed to the relevant
agencies that the licenses of Viet - French JV and Viet - German
footwear JV be revoked.  MARD argued that the Viet - French based in
Hanoi was licensed in 1994 with the legal capital of US$ 1 million
operating in building the technical infrastructure.  However after three
years of its operation the JV has proved ineffective and suffered loss
consecutively; and it has actually decided to suspend operation for over
a year now. 

And the license of the second JV Viet - German footwear JV based in Ha
Tay province, which was licensed in 1996 with the capital of US$ 14.2
million, should also be revoked.  The reason for the revoke MARD argued
that in spite of the permit from MPI to extend the project till the end
of 1998 only some work was carried out related to the site clearance, no
progress was made in other aspects of the project.  The foreign partner
in this joint venture demanded that unless L/Cs were permitted to open
for the import of equipment, they would not realize the financial
contribution, however, this demand was unacceptable as I was beyond the
financial capability from the local partner. 



Big cash needed for HCMC communication projects

(VET)- HCM City authority has called
for investment in 33 key communications projects, which include subways
from Tan Son Nhat Airport to Ben Thanh market and from Ben Thanh market
to Long Thanh Airport, and the Thu Thiem - Long Thanh Airport express
way.  They are expected to be implemented from now to 2020. 

The cost for these projects estimated at between US$250 million to US $1
billion each, are expected to come from different sources. 



Australia funded bridge link remote delta commune

(VNS)- A new concrete bridge has been
built linking a remote commune in the Cuu Long
(Mekong) Delta with essential services
in the area nearly two years after storm Linda washed away the original
bridge.  The bridge, which gives residents of Hiep My Commune in Tra
Vinh Province access to schools, hospitals and markets, has been built
with Australian government funding. 

Australian Consul General Lisa Filipetto unveiled the 30m bridge, which
was funded by A$20,000 (VND182 million) and provided through the
Australian Agency for International Development (AusAID)'s Small
Activities Schemes.  The local community contributed to upgrading the
commune's main track leading to the bridge. 

The bridge will help some 15,000 Hiep My residents transport goods to
the district's main highway, about 17km away.  Bridges are crucial to
communes in the Cuu Long Delta, which are hemmed in by a criss-cross of
canals and other waterways making modern land transport routes virtually
non-existent. 



Business Beat (Quoted from VNS)

1. The Ministry of Health has just
-ordered hospitals to close pharmacies run by private
companies and to use State-owned pharmacy chains instead.  This strange
instruction stems from the reality that hospitals often give pharmacy
tenders on their premises to whoever pays highest commissions.  Also,
private pharmacists often sell over-priced medicine, and some even join
hands with doctors to ensure patients have to buy medicine at their
stores. 

Instead of closing the private pharmacies, the ministry could establish
price controls for hospitals' private pharmacies.  It is also possible
for Stated pharmacies, if unchecked, to raise their prices. 

2. HCM City tax collectors said 10 per cent, provincial taxmen said 5
per cent, and both of them said they were imposing the correct rate! 
This is not a riddle but a real argument relating to the value added
tax.  Previously the tax rate for steel pipes was 10 per cent, then in
September this year, the Government agreed to cut VAT on 18 commodities.
But the wording on these commodities leaves room for discrepancy.  HCM
City tax officials say steel pipes are not mechanical products and only
direct products from metallurgy like steel bars or steel rolls are
subject to the tax cut. 

Provincial tax people say that steel pipes are also entitled to the tax
cut, as they are
"metal products". No final word has
been received from the General Taxation Department. 





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