More on VN business news (July 16)

[van <van@rock.civil.saitama-u.ac.jp>]

Vietnam targets 3.4 phones for every 100 people
Vietnam unveils updated petrochemical masterplan
Vietnam Finance Minister Calls For More Jt-Stk Cos - Report
Vietnam Forex Association To Implement Code Of Conduct
NZ Spectrum: Vietnam Nickel Reserves Outlook Improved

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Vietnam targets 3.4 phones for every 100 people

Hanoi, July 15 (VNA) - The Vietnam Post and Telecommunications General
Department (VNPT) achieved revenue of VND 4,000 billion (US$363 million)
in the first six months of the year, an increase of 28 percent over last year.

During the same period, 240,000 more telephones were installed, bringing
the country's total number to 1,468,000 phones, or a rate of two telephones
per 100 people. Another 500,000 telephones will be added in the second
half of the year, raising the rate to 2.4 phones per 100 people.

The post and telecommunication industry plans to invest VND 7,726 billion
(US$700 million) during 1998, an increase of nine percent over 1997,
to upgrade facilities and expand services, increasing earnings to VND
12,000 billion (over US$1 billion). The 1998 targets include installation
of 750,000 telephones, or 3.4 telephones per 100 people. The number of
communes with access to telephone lines will be increased to 6,877 from
6,551 in 1997, and post offices to 3,100 from 2,900.

Priorities will be given to business cooperation contracts signed with
Australian, Japanese, French and British companies that will develop
local telecommunication networks, build a local satellite information
network, upgrade existing earth satellite stations, and participate in
the installation of an international optical fibre cable system linking
Vietnam with China, Thailand, Laos, Malaysia and Singapore.

Two national mobile telephone networks, VMS and Vinaphone, and the Ho Chi Minh 
City based Call-link attracted over 100,000 subscribers by the end of June, 
according to statistics from the VNPT.

VMS, a joint venture company between Sweden's Crorvik International VN-AB
Industriforvkltings AB Kennevik and the VNPT, is taking the lead in terms
of service users with more than 70,000 subscribers at present.

The company has extended telephone coverage to 32 provinces and cities
across the country and expanded its services include virtual fax, mailbox
to mailbox messaging, family mailbox service, message delivery and short
message service.

It planned to invest US$50 million to erect 100 more relay stations to
broaden its telephone coverage to 40 provinces and cities in 1997.

Vinaphone, the second company providing national mobile telephone service
in Vietnam, is a wholly VNPT invested company set up in June 1996, one
year after VMS. The company has about 15,000 subscribers at present,
with telephone coverage to 26 provinces and cities, which is expected
to increase to 50 by the end of this year.

Call-link, the first mobile telephone network to begin operating in the
country, has some 15,000 subscribers exclusively in the south. Using
analog technology, Call-link is facing tough competition from VMS and
Vinaphone which use modern digital technology.

Sources from VNPT said that a fourth mobile phone company under the Sai
Gon Telecommunication Stock Company has been licensed and is expected
to start operating next year.

Compared to the country's population of nearly 77 million, the number
of 100,000 subscribers is still small since many people cannot afford
an average fee of US$70 per month to use mobile phones.

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Vietnam unveils updated petrochemical masterplan

Three sites have been named for the development of Vietnam's petrochemical
industry.These are Haiphong in the North, Dung Quat in the centre and Phu My in 
the South.

Vietnam is to undertake a refinery project without outside partners, having 
rejected schemes by both Petronas and LG International.

Proposals for joint ventures for production of polypropylene have been put 
forward by Amoco, Mitsui Petrochemical Industries, LG Chemical and Mitsubishi 
Chemical. In all of these, the foreign company would hold 70% of the venture.

An MTBE facility with a capacity of 60,000 tonne/y is being proposed by LG 
Chemical and it has also proposed a 30,000 tonne/y facility for production of 
carbon black.

A methanol facility with a capacity of 660,000 tonne/y is being planned, with a 
30% stake being taken by PetroVietnam and Vinachem.Equity participation is being 
discussed with Ancom, Malaysia, and Finansa Thai.Technology is expected to be 
supplied by Lurgi.

Tomen's proposal for a floating methanol facility with a capacity of 500,000 
tonne/y is included in the petrochemicals masterplan, together with a diammonium 
phosphate facility with a capacity of 300,000 tonne/y.

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Vietnam Finance Minister Calls For More Jt-Stk Cos

Hanoi, July 15 (Dow Jones) -- Vietnam's finance minister Nguyen Sinh Hung said 
the government needs to establish more joint-stock companies with the majority 
of shares being sold to the general public, the Vietnam News reported Wednesday. 
He was also quoted as saying in some cases the government should sell off their 
holdings in these companies altogether.

Hung estimated that investment would have to make up at least 30% of gross 
domestic product in order to assure an annual growth rate of 9-10%, the 
newspaper reported him as saying.

According to the state-run newspaper, the minister said half of the capital to 
be invested should come from the population as the government needs to encourage 
people to invest their savings.

'If the Government wants to mobilize capital from the population, it must create 
a healthy investment environment safeguarded by a solid legal structure,' he 
stated.

He also reportedly said the government should establish new joint-stock 
companies and then sell off their shares in order to raise money for other 
projects.

'Apart from equitizing SOE (State-Owned Enterprises), we ought to establish
new-joint stock companies. I suggest that the government draw up investment
projects for people to invest their capital - indeed the Government owns a 
certain share in these projects - and when the enterprises can stand firm and 
operate smoothly, the government will sell its shares to the population and use 
this money to invest in newer projects,' Hung said.

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Vietnam Forex Association To Implement Code Of Conduct

Hanoi, July 15 (Dow Jones) -- The association of Vietnam foreign exchange
dealers (Vinaforex) has drawn up a new code of conduct expected to be
implemented within a few weeks.

The code is intended to bring local practise in line with international
norms and the practises of the Association Cambiste International (ACI).

It is part of efforts to strengthen domestic dealing in the dong. The central 
bank is now putting the finishing touches on a new dealing room and is 
discussing the training and licensing of domestic dealers, a source close to the 
bank said.

The six-page code of conduct includes sections on confirmation of trades,ethics, 
dealing hours, settlement differences, recording of phone calls, substance abuse 
and general dealing procedures.

One of the more important sections is the guidance on 'dealing at non current 
rates',which aims to prevent traders from covering up trading losses by rolling 
deals forward at old rates--a practise banned by western central banks.

'Deals at non-market rates should generally be avoided, as such practises may 
result in concealment of a profit or loss; in the preparation of a fraud; or the 
giving of an unauthorized extension of credit,' the code says.

'Where, however, the use of non-current market rates are necessary, they should 
only be entered into with the prior express permission of senior management, who 
should ensure that proper controls are in place for the monitoring and reporting 
of such transactions. Cash flow implications should be taken into account in the 
pricing,' the code says.

The code, which borrows heavily from ACI procedures, also recommends the taping 
of phone calls and calls on management to come up with guidelines on the 
acceptance of gifts.

It gives advice on avoiding fraud and money laundering and stresses the need for 
adequate safeguards at institutions where individuals are allowed to trade on 
their own account. Trade confirmation procedures are also outlined.

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NZ Spectrum: Vietnam Nickel Reserves Outlook Improved

WELLINGTON, July 15 (Dow Jones) -- Mineral exploration concern Spectrum
Resources Ltd. Wednesday said latest results from its 70%-owned exploration
license in Vietnam enhance the probability of the size of nickel reserves
being increased.

Spectrum has been conducting drill tests at Ban Phuc. They aren't yet
completed. But the latest batch of results contains intersections with
ore bodies which 'enhance the probability of converting the low grade
inferred resource into indicated reserves', it said.

Ban Phuc currently has a defined resource of around one million metric
tons grading 3.5% nickel, and a further inferred resource of four million
tons of 1.4% nickel, based on previous sampling by Vietnamese interests.

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