VN/News-VET-092299

[bich dao <daotb@yahoo.com>]

Wednesday, Sep 22, 1999 Vietnam becomes the world^Òs third largest cashew
exporter

(VET)- After rice, coffee and rubber;
cashew has now become a key revenue earner for Vietnam.  And this year
Vietnam has become the world third largest cashew exporter. 

In 1991 Vietnam exported 33,000 tons of cashew nut earning US$ 133
million.  Sixty cashew processing plants are in operation and capable of
reaching the output of 220,000 tons, but the output this year is
estimated at only 70,000 tons. 

In order to develop cashew processing industry between now and the year
2010 the Government focuses on investment for farmers and setting up
cashew insurance fund and applying an appropriate tax policy, so that
cashew becomes one of the key revenue earners for the country. 



40 hours workweek officially approved

(VET)- On September 17 Prime Minster
Phan Van Khai signed Decision No 188/QD-TTg on the 40 hours work week
beginning from October 2, 1999.  The decision will be applied in
administrative sectors, political social and mass organizations. 
Businesses will make their own decision and hold responsibility for the
reduction of workweek hours for their staff and workers. 



The first products of Yamaha Vietnam

(VET)- Yamaha Sirius motorbikes (102
cc) at the price of US$ 2,000 each manufactured by Yamaha Motor Vietnam
(YMV) have been introduced into the market since September 22. 

YMV is a joint venture between Vietnam Forestry Corporation (Vinafor)
and Yamaha Motor Company of Japan and Hong Leon Industries Berhard of
Malaysia licensed by MPI in 1998.  The total capital of the JV is US$ 80
million, in which US$ 24 million serve as the legal capital.  The
project located in Soc Son District of Hanoi has a duration of operation
for 40 years. 



Dong Tam Company builds a new factory in central VN

(VET)- Anticipating a market of great
potential in the central region, Vo Quoc Thang, director general of the
Dong Tam Company in HCMC has decided to build an enameled and roof tile
factory in the Dien Nam-Dien Ngoc Industrial Zone of Quang Nam Province
with an estimated cost of VND234 billion, or equivalent to US$17
million. 

The factory with a capacity of 500,000 sq.m of colored roof tiles and
5.6 million sq.m of enameled tiles a year is regarded as Vietnam's
largest in this industry.  The factory is expected to be operational by
October of next year.  Dong Tam is regarded as a successful private
manufacturer of floor and roof titles in HCMC. 

Thang said the central region was a market of great potential for
construction materials as the demand for housing construction and urban
rehabilitation was huge.  Moreover material supply was abundant in the
province.  And Thang expected to export its products to Laos and
ambitiously produce a new product, artificial ashlars, to export to the
US. 



Security deal signed between Vietnam and Thailand

(VET)- Colonel General Le Minh Huong,
Vietnam's Minister of Public Security has concluded his four-day visit
to Thailand by signing with his Thai counterpart Deputy Prime Minister
and Interior Minister Major General Sanan Kachornprasart an agreement in
Bangkok on Monday on the cooperation in fighting drug trafficking, crime
and terrorism.  Besides they discussed measures to strengthen
relationships between the two ministries and exchanged experiences on
national and regional security activities (including measures taken
against drug smuggling, international crime and threats of terrorism). 



Nissei Electric of Japan expected to be operational soon

(VET)- The HCMC EPZ and IZ Authority
(HEPZA) has granted a license to the Japanese
owned Nissei Electric Co Ltd (or Vietnam Nissei) in Linh Trung EPZ in
the city. 

Vietnam Nissei is designed to produce electrical wiring and optical
cables to export to South Korea, Taiwan, Hong Kong, Thailand, Europe and
the US.  The project with the capital of US$ 20 million is expected to
be put into operation in the third quarter of the year. 



Four more affiliates of Vinalines to be equitized

(VET)- Vu Ngoc Son, director general of
the Vietnam National Shipping Lines Corporation
(Vinalines) was quoted as saying that
four more other affiliates of Vinalines including the Cargo and
Passenger Transport Service Enterprise, the Hai Au Shipping Company, the
Import Export and Service Supply Enterprise and the Northern Container
Company in Danang have been registered for equitization. 

He added these four affiliates would not sell shares to foreigners. 
Earlier five affiliates of Vinalines had completed the process of
equitization, which prove to be well performed.  The incomes of their
staff have doubled that compared to the levels in the pre-equitization
period.  Son said Viconship Saigon was the corporation's first affiliate
to sell shares to foreigners recently.  The stake sales aimed to
mobilize more capital for business, learn from foreigners' managerial
experiences, expand operations abroad and prepare for its integration
into the regional economy. 



Loan syndication to be undertaken by Hanoi banks

(VET)- Five banks based in Hanoi
including Techcombank, the International Commercial Joint-Stock Bank,
the Asia Pacific Commercial Joint Stock Bank, the Hanoi Housing
Development Joint Stock Bank and the Military Commercial Joint Stock
Bank have signed a syndicated loan contract worth US$5 million for the
Northern Food Corporation. 

The contract will have a term of eight months and the money disbursed
within two months.  The Military Commercial Joint Stock Bank, the Asia
Commercial Bank ACB and Vietindebank in HCMC are reported to have
discussed a syndicate loan worth VND10 billion for the project to widen
Hung Vuong Road in HCMC.  Syndicated loans have been provided by
State-run banks since last year, and joint-stock banks are doing so too
now.  Such loans help the banking sector minimize risks and reduce their
surplus deposits at a time the country lacks clear regulations on
mortgages. 



Germany now tops the list of VN's coffee clients

(VET)- Dao Thi Mui, General Secretary
of the Vietnam Coffee and Cacao Association disclosed that Germany now
replaced the US as the biggest importer of Vietnam's coffee with 16.5
percent of Vietnam^Òs coffee being shipped to this country in the first
11 months of the 1998-1999 crop, followed by the US with 15.5 percent;
Italy with 10.6 percent; Spain with 8.8 percent; UK with 7.7 percent and
Belgium with 6.3 percent. 

Vietnam has exported 362,000 tons of coffee during this period, earning
nearly US$500 million.  Coffee prices in the world market this year have
dropped about USS3 50-400/ton over the last crop, Mui said, adding the
price of R2 coffee had fallen from US$1,500/ton in the previous crop to
a little over US$1,000. 



Taxes to be imposed on Xe Om (motorbike taxis) riders

(VET)- The General Department of
Taxation is reported to have issued a decision, under which "Xe Om"
drivers (Motorbike drivers) will be subject to three types of taxes:
license tax, VAT and corporate income tax.  According to the decision
the drivers will have to pay all these taxes to the local tax
departments before they can register for the permits with the Department
of Transport and Publics Works.  And "Xe Om" permit is valid for a year
and will be renewable.  How much these three types of taxes to be
imposed on Xe Om will be decided after the investigation into the
revenues of drivers by the tax agencies. 



Woosung accused of illegally reproducing karaoke CDs

(VET)- SGT quoted Mr. Huynh Kim Phat,
deputy director of the HCMC^Òs Department of Planning and Investment as
saying that HCMC authorities will conduct a probe into the operations of
the Woosung /CAVS USA Inc Corporation, a South Korean-based subsidiary
of an American company for allegedly reproducing karaoke CDs without
permission. 

The inspection team would include police and culture, tax and investment
authorities.  When asked about a police report on the company's
operations in the city, he declined to comment but said, "That is the
result of the police investigation, so we cannot comment until an
inspection is completed."

The company is reported to have imported equipment and blank CDs and
distributed illegally recorded CDs through Cavina, a local trading
company in District 10.  In addition, Woosung has illegally turned out
77,000 CDs with the assistance of the local recording company Saigon
Audio since July 1997.  Saigon Audio will be inspected as well. 



Trades of the state bonds need to be regulated

(VET)- Pawnshops and gold shops have
joined commercial banks to trade the state bonds, in spite of the ban
imposed by the State Bank of Vietnam SBV; as they are not licensed for
currency trading like credit institutions.  However, the ban does not
seem to be effective. 


FULL TEXT



PM urges faster equitization

(SGT)- Deputy Prime Minister Ngo Xuan
Loc has urged ministries, relevant State agencies, provinces, and State
corporations to speed up the equitization of State owned enterprises
(SOE) to fulfill this year's target. 


FULL TEXT



Decline in rice prices continues

(SGT)- The drop in domestic and export
prices for rice is continuing, according to official sources.  The 25%
broken grade is quoted at US $196-197 a ton, FOB Saigon Port, down from
US$202-203 early last week.  Dao Huy Phuc, general secretary of the
Vietnam Food Association, said domestic and export prices were almost on
a par. 

Rice producers are not willing to accept a lower level while importers
have proposed slashing the price to US$190 a ton. 

Nguyen Van Tho, chief representative of the Government Pricing Committee
in HCMC, said the committee was devising several measures to deal with
the drop in rice prices.  Nevertheless, he said, the price slide had
resulted from falling world prices, not from the imbalance of supply and
demand. 




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