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VN Bus. News (Apr. 17-18, 1997)
April 18: New Vietnam-China passenger rail link opens
April 18: French television channel to launch service in Vietnam, Laos, Cambodia
April 18: Asian Cash Coffee Up, But Not Enough To Lure Vietnam Sellers
April 18: Asian Cash Rice Flat-Dn; Thai Market Abandoned For Vietnam's
April 18: Vietnam Finds Offshore Oil Field; Initial Output 25,000 B/d
April 18: Hyundai Motor Expects To Build Cars In Vietnam Soon
April 18: Moody's Assigns Ba3 Foreign Currency Ceiling To Vietnam
April 18: Vietnam's First Sovereign Rtg Welcomed By Investors
April 17: Marubeni Equips Vietnam Plant To Make Work Clothes
April 17: Japan's NIDEC Begins HDD Motor Parts Production in Vietnam
April 17: Vietnam's Luc Ngan District Well Known For Its Orchards
April 17: Vietnam's Shipping Industry Is Looking For Investors
Apr 17: Border trade between Guangxi and Vietnam goes up
Apr 17: U.S. Copyright Pact With Vietnam Criticized As Weak: Analysis
Apr 17: U.S. Company Hopes to Sell Satellites to Vietnam
New Vietnam-China passenger rail link opens
HANOI (AFP) - Vietnam and China will officially open a second border
checkpoint to passenger rail travel late Friday, a Vietnamese railway
official said.
The border crossing between Vietnam's Lao Cai province, 350 kilometers
(220 miles) northwest of Hanoi, and China's southwestern Yunnan
province is scheduled to open late Friday, the official from Vietnam's
railway authority said.
The formal opening ceremony is due to take place in both Hanoi and the
Yunnan provincial capital of Kunming late Friday.
The passenger service will be operated every Friday and Sunday from
each country. It will take ten hours to travel from Hanoi to Kunming
and passengers will not have to change trains at the border gate, the
official added.
One-way fares would be around 30 dollars for locals and 40 dollars for
foreigners.
China and Vietnam reopened their first cross border railway in Lang
Son province in February 1996, linking Hanoi to Beijing for the first
time in 17 years, as they pledged to set aside past animosities for
the sake of future economic ties.
Links were cut after a brief border war between China and Vietnam in
1979.
The reopening of the rail route came five years after normalisation of
Vietnam-China relations in 1991 and has already allowed a boom in
two-way trade between the two neighbours.
___________________________________
French television channel to launch service in Vietnam, Laos,
Cambodia
HANOI (AFP) - Canal France International (CFI), the French television
channel, announced Friday it is to launch a French-programme service
in Vietnam, Laos and Cambodia.
CFI is able to launch the service following the digitalising of the
Intelsat 704 satellite.
The service will include films, series, sports, youth programmes and
information broadcasts, the channel said in a statement at the end of
a visit to the three countries this week by its president Philippe
Baudillon.
The new service, which comes seven months before a summit of
French-speaking nations in Hanoi, will also offer coverage of major
sporting events, including the Roland-Garros tennis tournament and the
1998 football World Cup.
CFI will also be able to broadcast programmes from partner stations in
the region.
___________________________________
Asian Cash Coffee Up, But Not Enough To Lure Vietnam Sellers
SINGAPORE (Dow Jones)--Asian cash coffee prices are higher late Friday
as sellers in Vietnam hold back their remaining stocks in the hope of
still higher prices, traders in Asia said.
Vietnamese grade 2 (5% black and broken beans) is quoted at
$1,400-$1,420/ton for May shipment FOB, a Ho Chi Minh City-based
trader with a Japanese trade house said.
'The remaining coffee is in the hands of rich farmers who don't need
or want to sell,' the trader said.
Procurement of coffee in any large quantities in Vietnam is extremely
difficult Friday because of the reluctance of farmers to sell to
exporters, traders said.
'The most we could get would be three to five containers at the
moment,' the Ho Chi Minh City-based trader said.
Indonesian markets are closed Friday for the Hari Raya Haji holiday.
In India, domestic prices are being pushed higher on a daily basis
while a major European coffee roaster buys around 500 tons almost
every day, a Bangalore-based trader with an Indian trade house said.
Robusta cherry AB is quoted at a $200/ton premium to the July contract
on the London International Financial Futures and Options Exchange,
the Bangalore-based trader said.
Washed arabicas are trading at level money with the July position on
New York's Coffee, Sugar & Cocoa Exchange, he added.
Worldwide demand for robustas is increasing, he said. 'London should
move up while New York is overdone and could well move down,' he said.
Liffe May finished $3/ton higher Thursday at $1,615/ton while the July
contract moved up $9 to close at $1,643 on strong technical
indications.
In New York, CSCE May gained 1.75 cents/lb to settle at 209.80 cents
while the July contract gained 2.20 cents, closing at 187.50 cents, on
light fund buying.
Liffe coffee futures are seen opening Friday unchanged to $5/ton
higher, traders said.
-By Sarah Moore 65-421-4823
___________________________________
Asian Cash Rice Flat-Dn; Thai Market Abandoned For Vietnam's
SINGAPORE (Dow Jones)--Asian cash rice offers are flat late Friday,
with buyers abandoning the Thai market in favor of Vietnam's lower
prices to fulfill their requirements, traders in Asia said.
' Vietnamese exporters are benefiting from the higher prices in
Thailand,' a Bangkok-based trader with a Thai export house said. 'The
paddy price (in Thailand) hasn't come down, so rice offers are still
high.'
The paddy price is quoted at 3,600 baht/ton, traders said. ($1=26.075
baht.)
Thai 100% B is quoted at $300-$305/ton, the Bangkok-based trader said.
Prices haven't changed in Thailand over the last week because markets
there have been closed since last Friday for the Songkran holiday.
Few trades are expected in Thailand Friday because many traders
haven't yet returned to work, and those who have are in a holiday
mood, traders there said.
Bids for Vietnamese 25% brokens are heard at $190-$195/ton, down from
$208-$210/ton Thursday, a Ho Chi Minh City-based trader said. Bids are
abundant, but exporters aren't willing to transact, believing the bids
are too low, he said.
Eventually, buyers will be willing to go higher because they will need
to cover urgently, he said.
No firm quotes are heard from India. Pakistan's markets are closed for
a holiday.
-By Sarah Moore 65-421-4823
___________________________________
Vietnam Finds Offshore Oil Field; Initial Output 25,000 B/d
Hanoi (DJ) -- Vietnam Petroleum Corporation has discovered a new oil
field off southern Vietnam's coast, a state-controlled newspaper
reported Friday.
The oil company says the new field is the fourth-largest for Vietnam
and will have an initial output of about 25,000 barrels per day, the
Saigon Newsreader reported.
Output from the offshore Bunga Kekwa field is expected to increase
when full commercial drilling begins in July.
The new oil field is located off the coast of Vietnam near the
Malaysian peninsula, the newspaper said.
___________________________________
Hyundai Motor Expects To Build Cars In Vietnam Soon
SEOUL (AP,DJ) -- South Korea's Hyundai Motor Co. (Q.HMC) expects to
receive an approval from the Vietnamese government soon to open a
joint-venture company to build its subcompact Accent cars, an official
said Friday.
In July 1996, the auto maker applied to establish a car company in
partnership with the Vietnamese government, but its bid was delayed
under the Vietnamese government's effort to avoid excess investment by
foreign auto makers in Vietnam.
Hyundai Motor's plans call for the auto maker and the Vietnamese to
invest a total of $200 million to produce annually 20,000 commercial
and passenger cars beginning second half of 1998, according to the
auto maker.
Yonhap News Agency said the Vietnamese government is expected to
approve Hyundai Motor's bid soon in the wake of the decision by
Chrysler Corp. (C) to give up its bid to build cars in Vietnam.
The Hyundai Motor official refused to provide further details.
Hyundai Motor Co. is South Korea's largest automobile maker,
controlling some 60% of the nation's auto exports and about 46% of
domestic sales. Hyundai Motor, the flagship of the nation's leading
business group, Hyundai Group, produces 1.65 million vehicles a year
at three domestic plants in Ulsan, Asan and Chunju. It also produces
300,000 units abroad.
Headquarters: 140-2, Kyedong, Chongno-ku, Seoul.
Significant developments: A plant shutdown in a money-losing plant in
Canada caused the auto maker to see a 45% decline in the 1996 net
profit to 86.8 billion won.
Hyundai Motor sold a total of 1.31 million vehicles in 1996, up from
the previous year's 1.24 million units. Of the total, it exported
570,195 units in 1996, an increase from 491,608 cars a year before. It
set 1997 annual sales target at 13.5 trillion won, up 17% from 11.49
billion won in 1996. It expects to sell some 1.5 million units in
1997, which include an export of 675,000 units.
In February 1996, it introduced a revamped version of the midsized
Sonata II, with plans to export more than 100,000 units annually.
It currently manufactures autos in such countries as Thailand, the
Philippines, Indonesia and the Netherlands on a complete knockdown
basis. It also expects to set up plants in Taiwan, Turkey and
Malaysia.
All figures are in won.
FY FY FY
Ended Ended Ended
12/31/96 12/31/1995 12/31/1994
Net Profit86.80 bln 156.67 bln 136.79 bln
Sales 11.49 tln 10.34 tln 9.05 tln
Dividend 500 600 600
-
Currency history (won vs. U.S. dollar)
12/31/96 12/31/95 12/31/94
Closing Avg 844.60 778.40 788.70
___________________________________
Moody's Assigns Ba3 Foreign Currency Ceiling To Vietnam
NEW YORK (DJ) -- Moody's Investors Service has assigned a Ba3 country
ceiling for ratings on long-term foreign-currency bonds and notes of
issuers domiciled in Vietnam and a 'not prime' ceiling for short-term
obligations.
Accordingly, Moody's expects to assign a Ba3 rating to the forthcoming
Eurobond issue of the Socialist Republic of Vietnam. In line with its
view that bank deposits are generally riskier obligations than bonds,
the rating agency also assigned a B1 country ceiling for ratings of
foreign currency-denominated bank deposits.
'The ratings are supported by Vietnam's track record of structural
reform and macroeconomic stabilization, its robust investment- and
export-led growth, and success in restructuring its external debt
burden. The government's commitment to integrate Vietnam into the
international economic system is demonstrated by its progress in
normalizing economic and political relations with the U.S., its
accession into ASEAN and its intention to join the WTO,' Moody's said.
'Constraints on the rating include the low domestic savings rate, weak
legal and administrative systems, massive infrastructure needs, a
fragile financial sector and undeveloped capital markets. Moreover,
the rapid buildup in short-term debt has been accompanied by certain
payment irregularities within the financial system. This raises
concern over the relatively low level of official foreign exchange
reserves and the overall strength of the country's external payments
position,' the ratings agency said.
'Reforms initiated in the late 1980s have liberalized the investment
and trade regimes, freed most prices and sharply reduced subsidies to
the state enterprise sector. Fiscal adjustment, a restructuring of
state enterprises and tight credit policies have sharply reduced the
government's budget deficit and the inflation rate.
'Agricultural price reforms as well as changes in land use have
markedly improved agricultural output, leading to an exportable
surplus of rice. Structural reforms combined with the rise in crude
oil production have together enabled Vietnam to avoid the collapse of
output characteristic of other countries undergoing a transition from
command to market-driven economies. Since 1992, Vietnam's rate of real
GDP growth has averaged almost 9% and it is expected to reach 9.5% in
1997,' Moodys said.
Moody's continued: 'Merchandise exports have increased at a brisk
pace. The growth of manufactured exports is strengthening the
country's diverse export base, but Vietnam's access to the potentially
large U.S. market remains impeded by the lack of most-favored-nation
trade status.
'The more rapid increase in imports, however, has led to very large
current account deficits. These deficits have been financed largely by
foreign direct investment. Large current account deficits will likely
persist over the near-to-medium term, making Vietnam vulnerable to
external shocks and/or shifts in creditor confidence.
'Progress in regularizing long-standing arrears on external debt
includes: a restructuring with official, Paris Club creditors which
involved some debt forgiveness; an agreement in principle with
commercial bank creditors for restructuring about $0.9 billion in
interest and principal arrears; and a rescheduling of non-convertible
(Russian) ruble debts owed to several Central European countries.
'Uncertainty remains, however, on the settlement of subsantial
transferable rouble debt arrears owed to Russia.
'The Eighth Congress of Vietnam's ruling Communist Party held last
year reaffirmed the government's commitment to economic reform.
Vietnam enjoys political stability, with the government seeking to
ensure that rapid development does not lead to severe regional growth
imbalances.
'The integration of younger leaders into the top echelon of
policy-making, however, is still at an early stage, raising some
concern about the eventual generational transition presently underway.
___________________________________
Vietnam's First Sovereign Rtg Welcomed By Investors
HONG KONG (DJ) -- Vietnam's first sovereign credit rating Friday - by
Moody's Investors Service - was hailed by bankers as a positive step
for the country because it could open doors to the international
capital markets.
Most analysts were pleased with the rating, which puts Vietnam's
creditworthiness - rated at Ba3 - above that of Argentina, Brazil and
Pakistan, all rated one to two notches lower, and on a par with
Turkey.
'I think a Ba3 rating is not bad for them. After all, how can you say
they're better than Argentina or Brazil?,' said Barry Field, director
at ANZ Investment Bank, which is one of the heaviest traders of
defaulted Vietnam loans, he added.
Moody's cited Vietnam's track record of structural reform and
macroeconomic stabilization as a reason for the rating. It also lauded
its 'robust investment- and export-led growth and success in
restructuring its external debt burden'.
The country is in the process of issuing Brady bonds, bonds backed by
zero-coupon U.S. Treasurys, as a means of settling about $900 million
of commercial bank principal and arrears. Vietnam's Brady bonds are
expected to be issued in June. A roadshow for the bonds took place in
February.
A term sheet to settle the commercial bank principal and arrears was
finalized in January. Vietnam achieved about 50% debt reduction in the
deal.
Constraints on the rating include the low domestic savings rate, weak
legal system, fragile financial sector and heavy infrastructure needs,
Moody's said.
An official at Standard & Poor's in Melbourne would not comment on
whether or not they were in the process of rating Vietnam as well.
Bankers said getting the credit rating, which Vietnam lacked till now,
was also an indication that the country may be moving ahead with
longstanding plans for an inaugural sovereign Eurobond or global bond.
Merrill Lynch and Nomura International were awarded a mandate to
jointly lead manage such a bond some time ago, but the bond has been
on hold.
An official involved in the deal said Friday that there was nothing
new with the Eurobond, and that no timing had been set for its launch.
But Moody's said it 'expects to assign a Ba3 rating to the forthcoming
Eurobond issue of the Socialist Republic of Vietnam', fanning
speculation that the bond might indeed be on its way.
Field predicted that a $150 million to $300 million global or Eurobond
would be likely. But he said he doubted it would be launched before
1998, since the Brady bonds will have to be launched first. Also, the
World Bank and International Monetary Fund have publicly disapproved
of the planned bond, which could continue to slow the process, he
noted.
Officials at Merrill Lynch and Nomura were mum about specific details.
But the rating is definitely a positive for the bond's prospects, said
Cleo Kawawaki, debt syndicate manager at Nomura International (Hong
Kong) Ltd. in Hong Kong.
'For the bond, I think it would remove the uncertainty and be very
good for it. It's a very good rating for an emerging market country,'
she said. 'It's easier to assess the credit now, and a lot more people
will be interested in the country.'
The rating could also make the pricing of the bond easier for the lead
managers.
For example, dealers could look to the pricing of bonds from
similarly-rated countries in setting a price for Vietnam's first
international bond offering.
Kazakstan, for example - also rated Ba3 - launched a $200 million
three-year Eurobond in December 1996 at a spread of about 350 basis
points over U.S. Treasurys. That issue narrowed to about 220-230 basis
points over Treasurys, according to one fixed-income trader.
___________________________________
Marubeni Equips Vietnam Plant To Make Work Clothes
TOKYO (AAP) -- Marubeni Corp. has equipped a factory in Vietnam to
make work clothes, partnering a local firm, Marubeni sources said
Wednesday. The trading house will order 50,000 garments a month from
the factory starting in August. Fabric will be shipped from a Marubeni
facility in Thailand, and all the clothing will be shipped to Japan,
where demand is growing.
Vietnamese firm Garmex Cholon has provided a building on 7,500 sq.
meters of land and Marubeni has equipped it with 150 sewing machines
and high-pressure press equipment. The facility will start work with a
staff of 650.
The Japanese market for work clothes is calculated at 200 billion yen
a year. Nissho Iwai Corp. and Sumitomo Corp. have also starting
ordering garments from Vietnam.
___________________________________
Japan's NIDEC Begins HDD Motor Parts Production in Vietnam
TOKYO (AAP) - Nidec Corp. plans to begin outsourcing small motor parts
production for hard disk drives (HDD) through a Vietnamese subsidiary
of Tosok Corp., company officials say.
A total of 1.5 billion yen (roughly 12 million dollars) will be spent
to expand Tosok's auto parts factory in Ho Chi Minh city, enabling it
to also process coil wire and other parts for use in HDD spindle
motors.
The parts will be shipped to Nidec's HDD processing plant in Thailand.
Nidec took a 30% stake in Tosok last month. Officials said it was more
cost efficient to expand the Tosok unit than to set up an entirely new
HDD production base in Thailand.
___________________________________
Vietnam's Luc Ngan District Well Known For Its Orchards
Hanoi (VNA) -- In recent years, Luc Ngan has become famous nationwide
as one of the most thriving districts restructuring its agricultural
economy and rural development.
Luc Ngan, a mid-land district of Bac Giang province, north of Hanoi,
has 101,149 ha of natural land, including 52,760 ha of forest, 28,760
ha of denuded hills and 15,000 ha of arable land. A 30,000 ha denuded
area has been turned into cultivated land planted with a variety of
fruit trees and cash crops from which thousands of billions of dong
have been earned annually.
Like any other districts across the country, Luc Ngan centralised all
its efforts on food production. However, due to poor soil and
irrigation conditions, the district's food output reached only 36,000
tonnes per year, which was just sufficient for the local population.
Prompted by the renovation of economic management in agriculture, the
district authorities developed a policy aimed at encouraging all
locals to boost the garden economy by transforming denuded hills into
fruit tree orchards.
The district determined the expansion of gardens and forests as the
key to hunger elimination and poverty alleviation for all ethnic
communities living in Luc Ngan. Hence 28,760 ha of hill land were
cleared for cultivation, including more than 7,000 ha for litchee, one
of Vietnam's special fruits.
Apart from areas earmarked for food production, large acreage has been
marked for livestock breeding with numerous meadows for cattle
raising.
Many land areas have been allocated to local residents, farmers and
public employees, to develop the garden economy.
A variety of fruit trees has been grown in these allocated gardens
such as litchees, longan, oranges, lemons, Japanese persimmon, plums,
apricots, and custard-apples.
Luc Ngan has become widely known for its litchees and custard-apples.
The district now has the largest acreage of litchee across the
country. In 1995, the district earned tens of billions of dong from
more than 4,000 tonnes of litchee harvested on 2,500 ha. Each hectare
of litchee in Luc Ngan can give local people nearly VND 20 million
(over US$1,800), or more than six times the value of food crops
(manioc or sweet potato) grown in the district.
The garden economy now makes up more than 70 percent of the annual
income of many local households. At present, Luc Ngan has nearly 200
farms involved in the gardening economy with more than 50 farms owners
earning over VND 50 million (US$4,500), and some grossing VND 120
million (more than US$10,000) per crop.
___________________________________
Vietnam's Shipping Industry Is Looking For Investors
Hanoi (VNA) -- Vietnam has more than 3,200 kilometres of coastline,
more than 1 million square kilometres of exclusive economic zones and
dozens of thousands of kilometres of river routes.
They provide ideal preconditions for a strong ship-building industry.
Based on its current strength, between now and 2005, Vietnam can
provide about US$100 million for shipbuilding and repair each year.
This means that the industry will have to strive hard if it wants to
make full use of the market. In other words, this market offers ample
opportunities for domestic and foreign companies looking to venture
into it.
The weekly Vietnam Courier has quoted Mr Le Loc, deputy general
director of the Ship-Building Industry Corporation (Vinashin) of the
Ministry of Transport and Communications, as explaining how the
industry is going to tap this market.
Said Mr Le Loc: "We have designed a strategy for developing our
ship-building industry up to 2005 with the aim of increasing our
output value to VND 4,000 billion in 2000 and to VND 10,000 billion
(about US$1 billion) in 2005.
"Technologically, we are aiming to be able by 2000 to build ships for
transport, construction, sea fishing and military purposes and also
for export. We will also strive to be able to repair ships of 400,000
tonnes and manufacture substitutes for imported ship parts."
Mr Loc elaborated the input required for this strategy saying: "The
industry will need an investment of nearly US$1.7 billion between now
and 2005. This investment will be made in three phases.
"In the first phase which is this year, the industry needs US$17
million from domestic and foreign sources to invest in upgrading our
existing facilities, such as the Bach Dang, Ha Long and Song Cam ship
yards, the Pha Rung Ship-Repair Yard, and the facilities in Ho Chi
Minh and Vung Tau cities. The aim is to enable us to build ships of
10,000 tonnes and repair ships of 15,000 tonnes.
"In the second phase which is to last from 1998 to 2000, the industry
needs an investment of US$170 million to expand our main ship yards,
enabling them to build ships of 30,000 tonnes and repair ships of
400,000 tonnes.
A 20-million-US$ floating dock of 16,000 tonnes to repair ships of
30,000 tonnes will be built in the Cai Lan Port in the northern coal
province of Quang Ninh. A 10-million-US$ joint venture with foreign
partners to build plastic-hull high-speed boats will be set up in the
northern port city of Hai Phong. A new ship-building yard which is
estimated to cost US$100 million will be built in the central coastal
city of Nha Trang. And a 20-million-US$ 15,000 tonne dry dock will be
built at Sai Gon Port in Ho Chi Minh City.
The investment will be most intensive, US$1.5 billion, the third phase
which is to end in 2005. Facilities in all the three parts of the
country - North, Centre and South - will be upgraded and expanded
considerably.
At present, Mr Loc said, Vinashin is a partner to three
foreign-invested joint ventures which include the 95-million-US$ joint
venture with Hyundai of South Korea.
The Hyundai-Vinashin joint venture is Vietnams biggest ever
ship-building joint venture. Vinashin's joint venture with ACFES of
Russia to refurbish three big ocean-going ships has an investment of
US$5 million. Its joint venture with SEL of the UK to dismantle ships
has an investment of US$11 million.
Vinashin has also signed contracts for business cooperation with
investors and businesses in more than 30 other countries and
territories.
By the Government's decision, Vinashin is to be the main Vietnamese
partner to any foreign-invested joint venture projects in the
ship-building industry. Therefore in calling for foreign investment,
Mr Loc added: "We have been particularly selective, looking for
foreign partners who are especially strong in finance and
ship-building technology. In the upcoming period, we will be
continuing our efforts in this direction."
___________________________________
Border trade between Guangxi and Vietnam goes up
Xinhua News Agency
Nanning (CEIS) -- Border trade between South Chinas Guangxi Zhuang
autonomous region and Viet nam rebounded in 1996 after years of dull
business.
According to related sources, Guangxis total import and export trade
with Vietnam reached a record high of 3.14 billion yuan last year, up
17.9 percent from 1995.
Guangxis 1996 border trade with Vietnam shows the following
characteristics, according to the sources:
1. The imports by Guangxis social and institutional organizations
constituted a big proportion of the regions import, totaling 918
million yuan, accounting for 55 percent of the total import and up
21.8 percent from 1995.
2. The import and export trade between people along the two sides of
the border showed high increase. The import stood at 588 million yuan
and export 751 million yuan, up 61 percent and 46.4 percent from the
previous year respectively.
3. Border trade at key land ports kept growing. Of the nine border
cities, counties and districts, the border trade volume of pingxiang
city exceeded one billion yuan for the first time in 1996, which
accounted for 33 percent of the regions total trade volume, up 23.9
percent from 1995; the border trade volume of dongxing city also
topped 545 million yuan, 75.3 percent more than the previous year.
4. The product mix of import and export commodities has improved with
the varieties increased and the quality upgraded.
According to the sources, Guangxi mainly imports from Vietnam copper
ore, maganese ore, rubber, coke, timber and daily necessities and
local agricultural specialties totaling more than 40 kinds. Guangxi
exports more than 60 kinds of commodities to viet nam, including beer,
floor tiles, bicycles, sewing machines, diesel engines, walking
tractors, electric fans, cloth, sugar, battery, chemical fertilizers,
rolled steel and cement.
___________________________________
U.S. Copyright Pact With Vietnam Criticized As Weak: Analysis
Hanoi (AP-Dow Jones)--U.S. copyright owners and lawyers doubt the
bilateral copyright pact between Vietnam and the U.S. will do much to
curb rampant piracy in Vietnam - at least in the short term, reports
Friday's Asian Wall Street Journal.
Still, the deal struck Wednesday night is a step toward normalized
trade relations between the two former enemies.
'This historic agreement creates, for the first time, a legal
framework to protect the artistic, musical, literary, cinematic,
choreographic, computer software, and other works of both countries
from copyright infringement,' the U.S. Information Service said.
It will go into effect six months after signing, expected to take
place soon when both sides have approved Vietnamese and English texts.
But forging such a deal is only a begining. 'It's not like the
agreement has any real teeth in it...though it's a step in the right
direction.' said Harold Fiske, a partner in the Hanoi branch of legal
firm Russin and Vecchi.
Indeed, after this agreement is signed, yet another pact - on
enforcement - will then have to be worked out.
Martin Brown, finance director of software producer Oracle Vietnam
Pte., agrees. 'There are plenty of laws in Vietnam that are supposed
to protect us that aren't actually enforceable,' he said.
'Implementing (the agreement) will be a problem.'
Oracle Vietnam, which is affiliated with U.S.-based Oracle Corp.,
hasn't suffered as much from piracy as other software houses in
Vietnam, he said, because its business systems software requires more
technical support than other programs.
Nonethless, he's seen illegal copies of some of his company's
personal-computer database software for sale on the streets of Ho Chi
Minh City for 'a few dollars.'
That isn't an isolated case. Vendors on the streets of Hanoi openly
sell pirated copies of compact disks, books and software. An copied CD
of Swedish band Abba's hits, a local favorite, costs just $2 at a
local stationary shop.
A pirated CD-ROM collection of Microsoft software costs $10. A photo
copy of a Sidney Sheldon novel, translated into Vietnamese, sells on a
Hanoi street corner for $3.
The International Intellectual Property Alliance, a coalition of
associations representing U.S. copyright-based industries estimates
that piracy of copyrighted material in Vietnam costs U.S. companies
$50 million a year in trade losses.
'This piracy problem must be tackled immediately if U.S.- Vietnam
trade relations are ever to grow,' the group said.
But a U.S. official described that figure as 'pure conjecture,' based
on the value of pirated products in use; most Vietnamese consumers
simply wouldn't be able to af ford to pay for legal copies of
intellectual property if copyright was enforced.
Washington and Hanoi resumed diplomatic ties in 1995, but the former
enemies are still a long way from a full trade relations.
A U.S. delegation was in Hanoi this week to negotiate a trade
agreement with Vietnam. Joseph Damond, chief negotiator of the
mission, said the two sides made progress, but he couldn't say when a
deal was likely to be made.
___________________________________
U.S. Company Hopes to Sell Satellites to Vietnam
Xinhua English Newswire
Hughes Electronics Corporation of the United States is looking forward
to selling satellites and telecommunications systems to Vietnam on a
long-term basis, the local press reported today.
Hughes hoped to help with Vietnam's plan for operating its own
telecommunications satellites by the turn of the century, Ted
Westerman, a vice president of the world's largest supplier of small
satellites, was quoted as saying.
The cost of a satellite, including fees for its installation, launch
and operation, should largely depend on Vietnam's needs but would
likely cost the same as the satellite bought by Indonesia for about
100 million U.S. dollars, Westerman said.
Hughes has been working closely over the past three years with its
Vietnamese partners to help the country's infrastructure development,
he said, adding that the relationship has been very "successfully" and
is "still continuing."
"We are here for a long-term business involvement in Vietnam," the
senior Hughes official said.