VN Buss. News (Mar. 26, 1997)

[Vu Thanh Ca <vuca@envi.env.civil.saitama-u.ac.jp>]

Mar 26: Vivant Acquires Majority Interest In  Vietnamese Joint Venture
Mar 26: PetroVietnam CEO: Still In Refinery Talks With LG, Petronas
Mar 26: Vietnam moves to tighten press controls to protect banking secrets

Wednesday, Mar 26, 1997 

Vivant Acquires Majority Interest In  Vietnamese Joint Venture

Canadian Corporate News
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS   

CALGARY, ALBERTA--VIVANT IS PLEASED TO ANNOUNCE that it has acquired 72
percent of the issued and outstanding shares (subject to the Alberta Stock
Exchange approval) of AmViet Development Corporation (AmViet), the operating
company that owns 70 percent of the shares of AmViet Mineral Water Company
with the remaining 30 percent owned by the Quang Tri Beer Factory.  AmViet
Mineral has an existing infrastructure in place to bottle water and beverages
in  Vietnam.  Additionally, Vivant retains the option to acquire the remaining
28 percent of AmViet stock at a price equal to the greater of $784,000 and 3
times the net income before taxes, depreciation and amortization and Vivant's
management charges.  The option exercise price can be satisfied by cash, notes
or shares; the determination of which is at Vivant's discretion and subject to
ASE approval.

Vietnam is a rapidly emerging business center in Southeast Asia with its
proactive governmental business focus, and essentially untapped natural
resource base.   Vietnam has a highly educated and skilled workforce, and an
economically-improving population benefiting from increased foreign investment
and tourism.  Fusing this backdrop with the need for the country to import the
vast majority of its purified drinking water, management sees an excellent
opportunity for growth.  Additionally, domestic producers are exempt from
tariffs and this acquisition fills this requirement.   

 Vietnam, however, remains a socialist country with its commensurate risks
including a challenging and at times tedious bureaucracy; a legal and
accounting system that is inconsistent and not up to Western standards; an
unsophisticated financing methodology that favors hard currency over credit
notes and payment schedules; an underdeveloped distribution and infrastructure
system; and a complex tax regime.   

AmViet is a holding company designed to capitalize on emerging business
opportunities within  Vietnam through an experienced, professional and
entrepreneurial management team including Mr. Richard Hensel (President of
Construction Management Group, Inc.). Gerald Jensen (Chairman of Croff Oil
Company), Brian Dubey (Director of Plans & Review Office, Maryland State Dept.
of Health), and John Troha, (Director of  Vietnam Operations) living full time
in  Vietnam for the past 3 years.  This team has over 100 years of business
management and project development.   

For the 72 percent interest Vivant is responsible for the following:   

a:  to issue 3,000,000 common shares (subject to applicable hold periods and
escrow provisions) of Vivant at a value of $0.24 for an effective sum of CDN
$720,000.   

b:  to further fund the water bottling operation with CDN $540,000 over the
next quarter; proceeds of which will come from a future private placement.   

At the core of AmViet's operations are three licensing arrangements.  It
should be noted that the granting of licenses is restricted to those companies
passing stringent government scrutiny and possessing appropriate
relationships.  Vivant and AmViet have passed those requirements.  The first,
is the granting of a water license for an onsite natural source for bottling
water for domestic market and the exclusive distribution channels for the
product for an estimated 10 million litres.  As well, there is a license in
place for Natural Mineral Springs off-site as a separate water supply. 
Secondly, a PET license is also retained for full PET plastic bottle
production within the water and beverage plants with total volumes of 44
million bottles.  PET technology allows the production of preforms which are
the first stage of a two-stage process in the manufacture of finished
reheated, molded plastic bottles.  Plastic bottle production will be
implemented as product sales increase in order to provide on-site supply of
empty bottles.  Thirdly, and perhaps most significantly is the exclusive
license rights for the production of American based Monarch brands (i.e. Dad's
Root Beer, Bubble-Up, Kick-A-Poo Joy Juice, to name a few).   

Vivant is excited about the competitive advantage that AmViet holds over
competitors due to the recent discontinuance of any new beverage licenses
being granted by the  Vietnamese Government.  Vivant believes that there is for
considerable upside potential from the realization of congruent opportunities
including tapping plastic bottles sales within the central region of  Vietnam
and expanding plant capacities if demand warrants.   

The Vivant Group is a global food and beverage company actively involved in
exports and overseas production and consulting/project management.  Vivant
intends to be a fully integrated company concentrating on domestic and
overseas plastic container manufacturing and the marketing of Vivant's
proprietary and joint venture brands.

FOR FURTHER INFORMATION PLEASE CONTACT:   

Vivant Group Inc., The John Burdiga Senior Vice President (403)
974-0370 or Vivant Group Inc., The Gary Churchill Investor Relations
Dept. (403) 266-5331   


Wednesday, Mar 26, 1997 

PetroVietnam CEO: Still In Refinery Talks With LG, Petronas

HO CHI MINH CITY, Vietnam -- Vietnam Oil & Gas Corp. (PetroVietnam)
continues
to discuss with South Korea's LG Group (Q.LGG) and Malaysia's Petroliam
National Bhd 
(Petronas) (P.PET) about building the nation's first oil refinery, PetroVietnam
President and Chief Executive Officer Ngo Thuong San told reporters Wednesday.


Despite the recent collapse of the second foreign consortium that had
planned to build the refinery, LG and Petronas 'say they are always
interested' in continuing to investigate the project, San said.</p>
But he noted that LG and Petronas still 'want to have privileges to increase
the rate of return' on the project from the level Vietnam is now prepared to
offer. He specifically mentioned tax breaks and the right to sell refined
products domestically as two of the benefits the companies are seeking.</p>
LG and Petronas both had participated in the second failed consortium of
foreign companies that had discussed building the refinery. That consortium
was formally terminated in February.</p>
PetroVietnam says it would like to open the planned $1.3-$1.5 billion
refinery in 2000. The refinery is intended to have an annual capacity of 6.5
million metric tons and is scheduled to be located in Dung Quat, a remote
fishing village on the central coast about 900 kilometers north of Ho Chi
Minh City.</p>
Separately, San said PetroVietnam expects to award drilling rights for
offshore Block 15-1 'soon.' He said PetroVietnam is waiting for a consortium
led by Conoco Inc. of the U.S. to merge with Geopetrol SA of France.</p>
The Conoco consortium and Geopetrol had submitted separate bids for 15-1,
but PetroVietnam wants to work with both of them, San said.</p>
Asked why PetroVietnam wants the two bidding entities to form one
consortium, San replied, 'We want to cooperate with all companies.'</p>
The other participants in Conoco's consortium are South Korea's Korea
Petroleum Development Corp. and South Korea's Yukong Ltd. (C.YUK).</p>
Two other foreign consortia had also been short-listed for Block 15-1. The
block is regarded as the most promising that Vietnam has yet to award.</p>
Meanwhile, San said PetroVietnam is waiting for the Ministry of Planning and
Investment to formally approve a proposal that would make Petronas the
operator of the Dai Hung oil field.</p>
Petronas has agreed to take over the 43.75% stake of the current operator,
Australia's Broken Hill Proprietary Co. (BHP).</p>
San said Petronas will have the same production-sharing agreement as BHP. He
also said PetroVietnam is discussing lifting its stake in the field from its
current 15% level.</p>
San said Petronas will need to develop the field further than has occurred
already.</p>
BHP has said it is pulling out of the field because the production-sharing
contract with PetroVietnam isn't attractive, given the field's
lower-than-expect output.</p>
Turning to what is probably Vietnam's most promising oil or gas project, San
said he expects natural gas production from the Nam Con Son basin to begin
in 1999. The British Petroleum Co. PLC (BP), which will lead the development
of the basin, has estimated recoverable reserves of 58 billion cubic meters
in Block 06-1 and has also reported a 'significant' gas find in nearby Block
05-2.</p>
BP is also leading the development of the 365-kilometer pipeline that will
bring gas from the field onshore, where it is expected to be used by several
power and fertilizer plants. San said the 1999 goal for starting production
'isn't only BP's target, it is also ours.'</p>
Returning to the Dung Quat refinery, San said PetroVietnam is prepared to
put a large portion of its annual profits from the VietSovPetro joint
venture toward the construction of the refinery. He said more than $120
million a year of VietSovPetro profit can be directed to the refinery
project.</p>
A Russian-Vietnamese joint venture, VietSovPetro produces about 90% of
Vietnam's crude oil.</p>
The comment is notable because since the Vietnamese government indicated in
February that it is prepared to build the refinery itself, questions have
swirled about how the nation would fund the project.</p>
San made his comments following the opening of PetroVietnam '97, an oil and
gas industry exhibition, which began Wednesday and continues through Friday.

Wednesday, Mar 26, 1997

Vietnam moves to tighten press controls to protect banking secrets 

Hanoi (dpa) -  Vietnam has moved to tighten state control over the
domestic press coverage of the scandal-ridden banking sector, according
to a new government ``guidance'' document that came into effect
Wednesday.   

Protecting the ``state's secrets'' in the banking sector is a
particular objective of the new ``inter-ministerial circular'' which was
issued earlier this month by the central bank and the ministry of
information and culture.

State secrets are not defined in the circular, which itself has not
been made public.   

Both the central bank and state comercial bankers have come under
sharp criticism recently over revelations that the banking sector is
saddled with a worrying amount of bad loans through lax management and
corruption.   

The ministry of culture and information supervises the local press - a
function it shares with Communist Party organs - but the circular is
also likely to make it more difficult for the foreign press to report on
the banking sector as well.   

The circular exposes the already cosy relationship that exists between
the state-controlled press and government authorities and directs that
this propagandistic coordination be made even closer.   

Any press organization that wishes to use ``secret information'' about
the banking sector ``has to get approval from the head of the bank who
directly manage those secrets'', instructs the document.   

The central bank is responsible for informing the press about the list
of state secrets and to alert them to any changes so as to make them
``correctly comply'' with the regulations, the document added.   

It also directs that newspapers that want to reveal ``highly
professional information. .. should consult'' with the relevant bank or
the central bank.   

The document says ``good press'' organizations will be rewarded and
that other ``settlement'' will be made with those who do not cooperate. 

The circular also appears to direct state banking authorities to adopt
a more pro-active press approach by making them responsible for
``accurate, quick and timely supply of information''.   

``As the banking system has is own unique social characteristics, all
information related to its operation in the mass media effects not only
the banking service, the stability of the state's monetary system, but
also the  Vietnamese banking status in the international arena,'' said an
unofficial translation of the document.   

Officials recently revealed that state banks in Ho Chi Minh City were
carrying overdue loans of 64 million dollars and that more than half of
those were more than one year overdue.   

Vietnam's banking sector was rocked last month by reports, first
published by Asia Times newspaper - that VP Bank, a private bank which
was the first to have foreign shareholders, had defaulted on a deferred
letter of credit worth nearly three million dollars.