Japan supports Cambodia’s education sector

Phnom Penh (VNA) – The Japanese government has agreed to provide nearly 228,700 USD for two education-related projects in Cambodia, the Cambodian news agency (AKP) reported.

The agreement on the aid was signed in Phnom Penh on August 20.

Under the agreement, about 56,600 USD will be spent for the school rehabilitation project in Kratie province, and the rest will be used for buying second-hand school equipment to primary and secondary schools in Phnom Penh and Prey Veng province.

This aid is a KUSANONE grant (the grant assistance for grassroots human security projects) to local authorities and non-governmental organisation, according to AKP. –

As telecom market heats up, users reap benefits

Thua Thien-Hue — Users are benefiting from tough competition among telecom companies operating in the central province of Thua Thien-Hue.

Thanks to the tight rivalry, the companies are offering more options for their customers to choose from, including operators, prices and service quality.There are four main telecom operators in the provinces – VNPT, Viettel, Mobifone and EVN Telecom.

VNPT was the first to come to the province. The company now has more than 155,000 subscribers, of which fixed phones account for 123,000, while their subsidiaries: Gphone has 10,791 users, Vinaphone has nearly 2,400 and Internet ADSL has over 19,000 clients.

Though Viettel arrived in Hue a little later than VNPT in April 2003, thanks to its 80 transmitters spread throughout the province, the military-run mobile phone network provider has become a major player.

Over the past six years, Viettel has provided services to 250,000 mobile phone subscribers, 2,000 fixed lines, 10,000 home phones and 2,000 Internet ADSL subscribers in Hue City.

In the first six months of 2008, the company earned VND100 billion (US$6 million). It’s aiming to gain a turnover of VND250 billion by the end of this year.Meanwhile Mobifone, a telecom operator, has been selected as the best telecom service provider in the country over the past four consecutive years, from 2005 to 2008.

Mobifone says that its primary objective is quality. With 99 transmitters and four base station controllers (BSC), the company has attracted 123,000 subscribers, mostly business people and students.

A question of quality

Tough competition among telecom operators in recent years has helped cut down on service costs.

In reality, service quality has been impaired by a rapid increase in the number of subscribers along with poor infrastructure. This problem is considered a key barrier to industry development.

To ensure higher quality services, telecom operators need to invest more in improving their infrastructure, as well as adding more BSCs.

To facilitate conditions for telecom companies to offer higher quality services, the Thua Thien- Hue Department of Information and Communications is in the process of formulating a post and telecommunications plan for the next two years to 2010. —

FDI trickles into delta region

A conner of Tra Noc IZ in the southern city of Can Tho, one of the industrial zones luring the largest quantity of foreign invested capital in the Mekong River Delta. Can Tho city has so far lured 144 projects so far with the total registered capital of US$625 million. — VNA/VNS Photo Hong Ky

HCM CITY — Foreign direct investment (FDI) in the Mekong River Delta region remains far short of its potential, Nguyen Thi Bich Van, deputy head of the Department of Foreign Investment in Ha Noi, said.

The delta is one of the country’s key economic hubs, accounting for 80 per cent of its rice and seafood exports.

But the FDI inflows are low compared to other regions. In the first seven months of the year, it has attracted just US$2.8 billion in 57 foreign projects, or 6.3 per cent of total FDI.

Furthermore, the investment is concentrated in some accessible areas such as Can Tho, Long An, and Kien Giang provinces, and in building golf courses and resorts rather than in agriculture.

Nguyen Minh Nhi, former chairman of the Kien Giang Province People’s Committee, said the region’s poor infrastructure and human resources and an agricultural system based largely on a household rather than a modern industrialised system precludes foreign investment.

Investment in agriculture is not lucrative because of risks like floods, storms, and diseases.

Van said the delta provinces should join hands with each other or south-eastern provinces, especially with HCM City, to attract investment.

They should closely co-ordinate to organise trade promotions to lure foreign money and avoid overlapping and competition.

Developing transport infrastructure – both on land and water – in the delta is extremely important, she said.

She urged the provinces to increase investment in developing human resources.

Provincial authorities plan to seek investment from domestic and foreign sources, especially from countries with a strong agricultural sector, like the US, Canada, Japan, France and Australia. —

State group supervision won’t restrict business

State group supervision won’t restrict business

A new regulation on the establishment and operation of State-owned economic groups is expected to increase business transparency and ensure the groups’ contributions to the national economy. Head of the Research Board for Enterprise Development under the Central Institute for Economic Management (CIEM) Tran Tien Cuong spoke to Viet Nam News’s reporter Ha Phuong about this issue.

Determining basic criteria for an economic group is said to be difficult. In your opinion, what should these criteria be?

We are working on this issue. Personally, I think that at the very least, the business sectors of an economic group should be named, as with the eight pilot groups: Vinashin (shipbuilding), PetroVietnam (gas and oil), Vinacomin (coal and minerals), Vinatex (garments and textiles), Viet Nam Rubber Corp, Vicofa (coffee and cacao), VNPT (communications) and Bao Viet Group (insurance) and Electricity of Viet Nam (EVN).

Moreover, an economic group should run a major business to help boost development of other business sectors.

What is the definition of a “major business sector”?

Major business sectors are sectors in which the State still holds a ruling stake, or sectors which play important roles in national security.

CIEM proposed a 21-sector list for major economic groups: telecommunications, information and technology, postal communications, shipbuilding, maritime transportation, textiles and garments, electricity, oil and gas exploration and distribution, petrol and oil, services coal and minerals, rubber, coffee and cacao, finance, insurance, food, aviation, cement, tobacco and cigars, paper and pulp, fertiliser and chemicals, and state capital investment.

CIEM proposed that related business must not affect the performance and development of the major business; and revenue from related businesses must be reinvested in the major business. If an economic group directly or indirectly via another subsidiary invests in sectors risky to core business performance, the parent company must get the Prime Minister’s approval.

Another essential aspect of the regulation is the supervision of economic groups. Some groups have suggested that supervision will restrict space for business operations, instead of creating favourable conditions. What do you think?

The regulation aims to guide corporations on how to legally and effectively conduct business. It specifies ownership, business implementation and rights. There is no limitation or tightening here.

The supervision will be conducted by State ownership representatives at the economic groups.

The representatives will have to monitor group businesses and then report to the Government and the Prime Minister.

All issues related to business strategy, which are discussed in shareholder meetings, directors board meetings and executive board meetings, must be submitted to the Prime Minister before a vote.

The Ministry of Planning and Investment will have to monitor business expansion of economic groups, and the Ministry of Finance will monitor the financial businesses of parent companies and subsidiaries.

What challenges does the regulation face?

There are some technical difficulties, like establishment, capital and labour source criteria. We have to review some specific regulations in order to bring them in line with existing laws. Major businesses are also being thoroughly considered.

By 2010, State enterprises are expected to have completed the equitisation process. What management mechanism will these enterprises need to run businesses?

I think at that time, we will have to build additional legal regulations that guide ownership of State-owned enterprises. Regulations related to this issue are presently part of other documents. —

HAGL hires assets experts before listing

HA NOI — Hoang Anh Gia Lai Joint Stock Co (HAGL) has signed contracts with KPMG, CB Rechard Ellis and Ernst&Young in order to evaluate assets before HAGL’s planned share listing in October.

Under the contracts, KPMG will assess HAGL’s assets in several fields, including rubber, hydro-electricity, mining and the company’s hotel business, while CB Rechard Ellis will assess HAGL’s 30 real estate projects across the nation and Ernst&Young will audit the accounts for the company.

Chairman of HAGL, Doan Nguyen Duc, said that the company still had to carry out a comprehensive evaluation of assets after having changed from a private enterprise to a joint-stock company in June of 2006.

That has left HAGL with only an estimate of its total asset value, said Duc, who added that company assets are probably much higher than the old estimates. Now the new auditing contract will provide for a full evaluation.

A professional audit by international standard auditors will help HAGL’s managing board to control and improve managing and accounting systems and internal control.

Detailed, precise and reliable information is also needed to build investor confidence and gain strategic shareholders.

According to the plan, the asset valuation will be completed by the end of September, before the listing of shares on the HCM City Stock Exchange in October.

Hoang Anh Gia Lai posted pre-tax profit of approximately VND915.7 billion (US$55.5 million) during the first six months of this year, accounting for 36.6 per cent of annual target, equivalent to VND2.5 trillion ($151.5 million).

The company targets an annual growth rate of between 30 and 50 per cent from now until 2012, said Duc.

HAGL set an annual dividend payout ratio of 49 per cent on July 20 for last year’s shares, meaning that investors will receive an additional 49 shares for every 100 shares they hold.

With more than 7,000 employees, the company is one of the nation’s largest private firms, operating in a range of fields including processing and exporting wood furniture, rubber and granite production as well as owning a football team bearing the company’s name. —

VN-Index tumbles on big sales

HA NOI — Huge sales pushed the VN-Index down yesterday with the index closing at 508.47 after sliding 2.06 points, or 0.6 per cent, although market liquidity and trading value remained high.

Trading volume reached 32.38 million shares and fund certificates for a turnover of VND1.2 trillion (US$72.7 million). The HCM City Stock Exchange (HOSE) saw 49 winners and 100 losers at the end of the day.

Huge sales were seen yesterday, with investors likely cashing in their profits after 10 straight days of increases leading up to Tuesday, and the daily trading band loosened for the domestic stock market on Monday.

Experts expected the move late last week, saying the expanded trading band, now 5 per cent for the HCM City market and 7 per cent for the Ha Noi bourse, would enable investors to reach expected profits.

Sacombank (STB) had another record 7.1 million shares traded yesterday, followed by Phu My Fertilisers (DPM) with 2.2 million shares and Saigon Securities Inc (SSI) with 2.1 million units.

Showing similar activity, Cables and Telecom Materials (SAM) saw about 1.6 million shares change hands, and Hoa Phat Group (HPG) saw 1.4 million units.

Foreign investor transactions slowed yesterday, with more than 3 million shares bought and about 2 million units sold. The figures were 5.88 million and 2.67 million on Tuesday.

At the Ha Noi Securities Trading Centre, the HASTC-Index slipped 2.73 points or 1.71 per cent to end at 156.78. Trading volume fell by 18 per cent to 13.95 million shares with a total value of VND601.8 billion ($36.47 million).

Asia Commercial Bank (ACB) continued to lead the market in terms of trading volume with around 2 million shares changing hands, followed by Kim Long Securities (KLS) with 1.35 million units.

Tien Phong Plastic (NTP), Petroleum Technical Services Corp (PVS) and Song Da No 10 Joint Stock Co (SDT) were also active with about 750,000 shares traded of each.

“It’s obvious that the market will adjust downwards after a succession of escalating days,” said Bui Quang Hai, an investor with APEC Securities. “This is an opportunity for those who haven’t been able to buy their desired stocks over the last two weeks.”

Ken Tai, an expert with Kim Eng Singapore, remained cautious. “The VN-Index may increase to 557 points, but it’s still on a downward trend,” he told a meeting of investors on Monday.

“With the current situation, investors should buy shares in moderation,” he suggested.

Pham Thanh Thai Linh, an analyst from Bao Viet Securities’ Analysis Department, said at a seminar on Tuesday that the stock market should develop steadily within the next month, with the VN-Index hovering at around the 500 point mark.

“The economy has stabilised and is expected to see more positive developments in the coming months,” he said, citing domestic petrol prices having eased and the bank’s deposit interest rates having stabilised at between 17-17.3 per cent.

The analyst expected the consumer price index (CPI) in the final months of the year to be considerably lower than first and second quarter’s figures, with August’s index possibly reaching 1.7-2 per cent and September’s approaching 1 per cent.

“A remarkable thing is that foreign investors have had quite great net purchase values over the past few weeks, with significant amounts of blue chips such as DPM and SSI bought in July,” Linh said.

So far this month, overseas clients’ total net purchase value has reached VND412.38 billion ($25 million), according to HOSE statistics. —

Viet Nam, insular Palau celebrate diplomatic ties

MANILA — Viet Nam and the Republic of Palau officially established diplomatic relations on Monday.

With authority granted by the Government of Viet Nam and the Palau Government, Vietnamese Ambassador to the Philippines, Vu Xuan Truong, and Palau Ambassador to the Philippines, Ramon Rechebei, signed here a joint declaration establishing diplomatic relations between the two countries.

According to the statement, the nations officially established diplomatic relations at the ambassadorial level on August 18.

The Vietnamese Ambassador in the Philippines will serve as non-permanent ambassador to Palau, and the Palau Ambassador to the Philippines also serves as non-permanent ambassador to Viet Nam.

At the signing ceremony, the two ambassadors said they hoped the new diplomatic relations would lead to new co-operation in many aspects between the two countries, especially in the economy, contributions to consolidating peace, stability and common development in the region.

Palau consists of 340 islands, with a population of 20,000 residents, located between The Philippines and Papua New Guinea.

The Republic of Palau was established on October 1, 1994.

Its economic sectors include tourism, agriculture and fisheries. Last year, its GDP was US$162 million and it received 93,000 foreign tourists. —

VN, Uzbekistan agree to co-operate in many areas

HA NOI — A meeting of the Inter-Government Committee between Viet Nam and Uzbekistan on economic, trade, scientific and technological co-operation was held yesterday in Ha Noi.

Deputy Minister of Industry and Trade Le Danh Vinh led the Vietnamese delegation and Deputy Minister for Foreign Economic Relations, Investments and Trade Nasridin Nazhimov led the Uzbekistan delegation.

At the meeting, the two sides exchanged information on socio-economic development, and introduced the investment environments and potential of each nation.

The two sides said they wanted to cooperate in light industry, leather tanning, footwear, silk production, and the construction of materials and other commodities.

The two sides agreed to co-operate in agriculture, and expressed the two governments’ wishes to co-operate in oil and gas exploration, banking, culture, sports, tourism and training.

The two sides agreed that with bilateral trade turnover last year gaining only US$6 million, it did not meet the potential and demands of each side. Viet Nam now imports cotton, fibre, silk, equipment and fertiliser from Uzbekistan and exports fishery products, fruits, vegetables, medicines, rice, tea and coffee.

The two sides agreed to exchange information on their investment environments, foreign trade, as well as the export capacity of each country.

The meeting ends today. —

Diplomat praises US-Viet Nam ties

HA NOI — US-Viet Nam relations have experienced a good time of development, according to US Ambassador Michael Michalak.

Meeting with the press in Ha Noi yesterday on his first working year in Viet Nam, the diplomat stressed that over the last 12 months, Viet Nam and the US exchanged a number of visits by governmental, parliamentary and trade delegations.

During Prime Minister Nguyen Tan Dung’s visit to the US in June at the invitation of President George W. Bush, the two leaders agreed to place importance on economic and trade relations. The two sides also signed important co-operation agreements on education and climate changes.

He expressed his pleasure at the growing bilateral trade in the first half of 2008, which exceeded the US$12.53 billion level made in 2007. Remarkably, US export value to Viet Nam during the period reached $1.61 billion. US investment in Viet Nam strongly developed, he said.

Thanks to an education agreement signed during the Vietnamese PM’s tour of the US, a bilateral committee on education would be set up to expand co-operation between the two countries in the field as well as assist more Vietnamese students to study in the US, the diplomat said.

Regarding joint efforts in dealing with Agent Orange/Dioxin, the ambassador revealed that a $3 million project on overcoming the environment and health would be started in the next two or three weeks. He also talked about the need of mine clearance.

Ambassador Michalak hailed Viet Nams success at the UNSC which helps to increase the country’s role and prestige in the world arena. —

VN helps activate regional links

Singapore — Viet Nam has been actively and responsibly participating in the ASEAN Inter-Parliamentary Assembly (AIPA)’s activities, helping to boost co-operation and sustainable development in the region and the world.

Vice Chairwoman of the National Assembly Tong Thi Phong made the statement at the 29th AIPA General Assembly which opened in Singapore yesterday.

“Integration and regional linkage is a path for development which requires contribution and close co-operation by law making and enforcement bodies as well as the people,” she said.

The legislator expressed her pleasure at the enhanced solidarity, friendship and multifaceted co-operation among the Association of Southeast Asian Nations (ASEAN) member countries, which, she said, were vividly reflected in the signing of the ASEAN Charter late last year.

She also said in conjunction with efforts made by the Governments, the parliaments of ASEAN member countries have made important contributions to the regional linkage process.

To better its role, the senior official said AIPA should further perfect its operation mechanisms and structure, including improving the efficiency of its Secretariat.

Phong is leading a Vietnamese delegation to the AIPA meeting, which is being attended by eight member countries, including Cambodia, Indonesia, Laos, the Philippines, Malaysia, Thailand and the host Singapore.

Representatives from Brunei and Myanmar are attending the event as special observers while others from Canada, Russia, China, the Republic of Korea, Papua New Guinea and the European Union are observers. —