Small banks out on financial climb

Hanoi (VNA) – The nation’s small commercial banks are struggling to raise their charter capital to 1 trillion VND (59.17 million USD) by the end of the year to meet new State Bank of Vietnam requirements or face closure.

Many of these banks have only recently transformed themselves from small rural credit institutions to urban commercial joint-stock banks and face nearly insurmountable hurdles raising additional capital during the global financial crisis.

Under Decree No 141, issued by the central bank in 2006, all commercial joint stock banks must have at least 1 trillion VND in charter capital by December 31, 2008, and 3 trillion VND by December 31, 2010.

As of early this month, according to State Bank data, nine banks had yet to comply with the requirement, including De Nhat Bank, Gia Dinh Bank, Pacific Bank, My Xuyen Bank, PG Bank, Kien Long Bank, Vietnam Thuong Tin Bank, Dai Tin Bank and Dai A Bank.

Collectively, the banks need to raise about 4 trillion VND in additional capital over the next 40 days, considered a tall order in times of tightening credit and shrinking pools of capital globally.

A number of banks, nevertheless, have sought to raise capital by selling shares to strategic partners, to existing shareholders or even to employees.

PG Bank will fulfill its goal to meet the new charter capital requirements with support from its two leading shareholders, the Vietnam National Petroleum Corporation (Petrolimex) and Saigon Securities Inc.

Kien Long Bank has plans to sell 42 million shares, with 40 million offered to existing shareholders and 2 million to bank employees, while Dai A Bank is preparing to sell shares to its existing shareholders.

But, cautioned Nguyen Huy Duong, a market analyst with Hoa Binh Securities, “issuing more shares to strategic partners, existing shareholders, and staff is a mission impossible for these banks at this time.”

Vu Duc Nghia, deputy director of Bien Viet Securities, agreed with Duong.

Finding foreign strategic partners might also be problematic at a time when many banking giants were suffering and Vietnam had begun to allow foreign banks to set up wholly-foreign invested banks.

Finally, a few financial industry observers said that mergers might be the only key to survival for some of these small banks.

Theoretically at least, nine of the current banks struggling to raise capital could recombine into four banks meeting the minimum capital requirement of 1 trillion VND.-

Foreign investors, lower rates buoy market

Hanoi (VNA) – The VN-Index marched in place on Nov. 11, closing up a negligible 0.01 percent to end the day at 366 points.

A total of 16 million shares were traded on the day at a value of 518 billion VND (30.8 million USD).

Foreign investors were net sellers on the day, with 710,000 shares bought and 1.87 million units sold, for a net sales figure of 79.2 billion VND (4.7 million USD).

Hoang Thi Hoa, director of the analysis department at Viet Capital Securities, said supply and demand on the market were now in relative balance, with liquidity being well maintained.

In the three final trading days of last week, foreigners were net buyers with net buys worth 140 billion VND (8.3 million USD), Hoa noted.

Hoa said that lower interest rates and renewed foreign investor interest were helping sustain a market still challenged by the psychology of domestic investors, world market fluctuations, and the impact of the US economic crisis on Vietnamese exports.

Analysts in general were predicting that many listed firms would report lower profits in the fourth quarter and that more bad economic news was on the way, including higher inflation in the final two months of the year due to recent heavy rains and flooding.

In Hanoi on Nov. 10, the HASTC Index added 1.99 points, or 1.71 percent, to close at 118.35. About 9.57 million shares changed hands for a total turnover of 273 billion VND (16.25 million USD).

Asia Commercial Bank’s listing of 200 million additional shares would present some challenges for the market this week, EuroCapital Securities said in a report.-

Swiss corp. builds second factory in Vietnam

Hanoi (VNA) – Switzerland-based Automation and Power Technologies Group ABB on Nov. 11 officially launched the construction of its second factory in Vietnam with an investment of 30 million USD.

The new factory, located in northern Bac Ninh province, is expected to produce power equipment and medium and high voltage power systems and 80 percent of the total output will be exported.

ABB General Director Gary Marler said the new factory will lay the foundation for the corp.’s long-term operation in Vietnam .

One of the reasons ABB continues to expand its investment in Vietnam is the availability of labour which helps the company produce quality products with competitive price, he added.

ABB began its operation in Vietnam in 1993 and currently has a 500-employee factory in Hanoi.-

PM approves upgrade of Phu Quoc int’l airport

Hanoi (VNA) – The Prime Minister has approved the development plan of Phu Quoc International Airport in the resort Phu Quoc island in southern Kien Giang province till 2020 with orientation to 2030.

Under the plan, the airport will be upgraded to meet the grade 4E standards of the International Civil Aviation Organisation (ICAO) and the second level for a military airport with a combined capital of 16 trillion VND (941.1 million USD).

By 2020, the airport will be capable of receiving B767 and B747-400 planes with a runway of 3,000m x 45 m.

The airport’s annual capacity is projected to reach 2.5 million passengers by 2020 and 7 million passengers by 2030, while its cargo throughput is designed at 14,300 tonnes a year by 2020 and 27,600 tonnes by 2030.-

Fashion fair targets domestic market

Hanoi (VNA) – More than 100 domestic and foreign businesses will showcase their products at the Vietnam International Fashion Fair 2008 (VIFF) to be held in Hanoi from Nov. 19-24.

Speaking at a press conference in Hanoi on Nov. 11, the Deputy General Director of the Vietnam Garment and Textile Group (Vinatex), Le Tien Truong, said that in addition to strengthening the relationship between domestic and foreign enterprises, the fair aims to achieve the garment and footwear sectors’ goals in the domestic market in the context of increasing competition in the global market.

The latest garment and footwear fashion products will be displayed at the fair’s 300 stalls. Of particular note is a new collection of designer spectacles showcased by the Global Optic JS Company.

A number of seminars regarding the development of the domestic market and solutions for the garment industry will be held during the fair, which takes place annually in Ho Chi Minh City in July and in Hanoi during November.

Garments have traditionally been considered one of the country’s key export staples with an average annual growth rate of 32 percent. In the first ten months of this year, garment export turnover reached 7.64 billion USD, representing a 20 percent increase over the same period last year. The figure is expected to reach 9.5 billion USD by the year-end.

In 2007, Vietnam was listed in the world’s top 10 garment exporters. The country has set a target of being named in the top five by 2015.

Experts, however, have warned that Vietnamese garment businesses are at risk of losing a share of the domestic market due to high-volume, low-cost imports from China and Thailand.-

Compulsory English classes planned for primary schools

English will be compulsory for 20 percent of third graders from the 2010 academic year.

The Ministry of Education and Training intends to begin its pilot programme with four periods of English in Ho Chi Minh City , Hanoi and Da Nang each week, said its Educational Science Institute deputy director Nguyen Loc.

The ministry expects English to then become compulsory in other cities, depending on their socio-economic development, and in rural Vietnam during 2018, he said.

But obstacles to its introduction will have to be overcome.

Primary Education Department director Le Tien Thanh cautions that only primary schools that now have morning and afternoon sessions each day are likely to join the programme.

These schools now account for only 35 percent of the target schools.

It is almost impossible to arrange four periods of English in schools that have only a morning or afternoon session each day, while the skills of many teachers are substandard and the necessary English-language textbooks are lacking, he said.

The ministry calculates 15,000 skilled teachers of English will be needed in 15,000 different schools for the introduction of the programme. But Vietnam has only 6,000 such teachers and only 500 graduate a year.

It will take years to supply enough teachers for the primary schools, the director says.

Phuong Nam Primary School headmaster Chu Kim Thoa said her school has just one official English teacher available for its more than 300 third graders, English has been optional.

“If it becomes compulsory, we’ll face a serious shortage of qualified teachers. My son studies English for an hour and a half each week, but still needs a tutor,” complained Le Ha whose child attends Binh Minh Primary School .

“I’m afraid four periods each week will be too much for him.”

Another parent, Huong Son, whose child attends Le Van Tam Primary School, said “I think primary students should focus on their mother tongue instead of learning a foreign language.”

“How can they speak a foreign language fluently, when they have not mastered their own mother tongue?” she asked.

But English teacher Giap Thu Thanh of Chu Van An Primary School argued that third graders are at the most suitable age to learn English provided their text books are attractive, interesting and suitable.

“Children should be relaxed while studying English, or it will bring a bad, rather than a good, influence,” the teacher said.

Primary Education Department director Le Tien Thanh agreed that effective measures are needed to relieve student overload.-

Parents worry kids too young for sex education

Hanoi (VNA) – Some parents are reacting with raised eyebrows to schools providing sex education to their children as early as the fifth grade, even though many psychologists claim it is the right time for kids to begin learning about this issue.

Nguyen Bich Hong, a Ho Chi Minh City Teachers’ Training College lecturer in psychology, said Vietnamese children are entering puberty earlier than ever and education on sex and reproductive health is necessary by the fifth grade.

”Fourth- and fifth-grade students can now go on the internet themselves or read the mass media to get information about sex. But they are unable to understand the issue in the right way,” she said. “It will be very dangerous if they don’t receive clear guidance from adults and teachers.”

Dr Nguyen Viet Dung, a psychologist and sex education expert, agreed, saying that many children at age 10 already have signs of puberty, including menstruation and body hair. Sex education for children starting at age 10 is appropriate, Dung said.

The issue was surveyed and discussed by relevant offices and experts before the Ministry of Education decided to introduce sex education into the fifth-grade curriculum.

However, the general public may beg to differ, with a recent survey conducted by VNExpress.net showing that 70 percent of a total of about 16,000 interviewees thought that age 10 was too early for sex and reproductive education. The father of a fifth grader at HCM City ’s Le Van Si School was shocked when his son asked,” How does sperm get into the ovum?” and “what is a zygote?”

“There were sex terms and questions printed in the science textbook, that I thought were too difficult and beyond the ability or awareness of a fifth-grade student,” he said.

Pham Thanh Mai, a parent in Hanoi , complained that one textbook write, “The process of combination between sperm and ovum is called insemination. The inseminated ovum is called a zygote.”

“Seeing these images, I would not know how to answer my son’s questions,” said a Hanoi man, a father of two.

Responding to the concerns, Phung Khac Binh, a Ministry of Education official, said all contents of the curriculum were studied and discussed at great depth, before they were officially taught in schools.

Some developed countries have begun teaching sexual knowledge at an even earlier age, through teachers’ stories in class and comic books that are easier to understand, he notes.-

Jail terms upheld for foreigners on illegal money transport

HCM City (VNA) – The Ho Chi Minh City People’s Supreme Court on Nov. 11 upheld the lower court’s jail sentences given to three Congo citizens for illegal cross-border transport of foreign currencies.

According to the Supreme Court’s verdict, Kalala Mutombo Doris, 24, received six years in jail for transporting 213,600 USD from Vietnam to Cambodia through the Moc Bai border gate in southern Tay Ninh province on Dec. 27, 2007 without customs declaration

Kalonji James Fiston, 27, and Bukhete Nzau, 32, who were hired by Kalala to take a total of 100,000 USD through the same border gate that day, were sentenced to 3 years and 2 years in prison, respectively.

The court also confiscated the illegally transported money, and ordered Kalala to pay a fine of 10 million VND.-

Thua Thien-Hue receives boost from Japan’s development aid

Thua Thien-Hue (VNA) – Japan has so far provided a total of 236 million USD in development aid for central Thua Thien-Hue province to implement a series of projects on public services and social issues, said a provincial official on Nov. 11.

According to Vice Chairman of the provincial People’s Committee Ngo Hoa, the Japanese aid came in the form of grants and official development assistance (ODA) projects from the Japan Agency for International Cooperation (JICA) and preferential loans from the Japan Bank for International Cooperation (JBIC).

Prominent among Japan ’s assistance programmes was a 30 million USD project to provide equipment and build an intensive healthcare centre for the Hue Central Hospital .

Besides, Japan ’s non-governmental organisations have supported nearly 5 million USD for educational programmes and projects assisting street children in the province.

The WASEDA Heritage Institute has coordinated with the province to implement projects worth over 4 million USD in total to preserve the Hue ancient royal relics and the Hue court music, which has been recognised as part of the World Cultural Heritage.

Hue city has also established economic, cultural and tourism ties with several Japanese cities, including Shizuoka , Okinawa and Yokohama.-

Vietnam shares experiences in building One UN model

Hanoi (VNA) – The Vietnam National UNESCO Commission hosted a conference in Hanoi on Nov. 11 for pilot countries to share their experiences in building the One UN model.

Vietnam has taken the initiative to be one of the eight pilot countries for the UN Reform Programme at the national level, which aims to achieve One Plan, One Management, One Budget, One Leader and One House for all UN agencies operating in a country.

Nguyen Quoc Cuong, Chairman of Vietnam National UNESCO Commission, said it is a great honour for Vietnam to be the first among pilot countries chosen to host the conference on One UN, thus reflecting the UN’s high appreciation of the country.

Cuong noted that after two years of implementation, Vietnam has recorded significant achievements in all five pillars of the One UN Initiative.

He said to implement One UN Initiative effectively, countries need to participate more actively in all components of this initiative.

At the three-day conference, representatives of the National Commissions for UNESCO of the eight pilot countries and 19 members of the UN Development Assistance Framework (UNDAF) will discuss measures and make recommendations to promote the UN reform process.

The meeting will also review the implementation of the One UN Initiative over the past two years, and the role of UNESCO’s commissions in this process.

The One UN Initiative was introduced with the aim to avoid the overlapping of resources and save budget in order to improve the effectiveness, transparency and democracy in the UN agencies’ activities as well as to enhance linkages of the UN system in the headquarters as well as at the national and international levels.

In 2007, Vietnam and UN signed a joint action plan till 2010 aiming at optimising activities of this global largest multinational organisation in Vietnam.-