Vietnam retail market to expand over next two years, say experts

Vietnam’s retail market is forecast to explode over the next two or three years, with the appearance on high streets of many foreign retail companies, including shopping centers and large sized supermarkets, said Fabrice Carrasco, general director of TNS WorldPanel Vietnam on October 30.

Shoppers in a supermarket in Vietnam

Speaking at a retail and distribution conference held in Ho Chi Minh City, Mr. Carrasco said Vietnam’s retail market is smaller than that of other countries in Southeast Asia, such as Thailand, Malaysia and Philippine, however, Vietnam’s consumer habits are changing sharply.

According to RNCOS, a global market research company based in the US, retail turnover in Vietnam will top US$85 billion in 2012.

Vietnam’s retail turnover was $23.7 billion in 2008 and is expected to rise to $39 billion by the end of this year.

Bui Ngoc Hong, a law consultant at Indochina Counsel, said foreign firms have been eyeing retail and distribution business in Vietnam.

Indochina Counsel has alone supported seven foreign retail companies, which will appear on Vietnam’s high streets in the next two years, Mr. Hong said.

2009 is considered an important milestone year for trading and distribution sectors in Vietnam. Distribution in Vietnam is set for a shake up, as foreign companies move in following the country’s commitment to open the market in 2009, on the back of World Trade Organization accession in 2007.

As a result, firms from abroad have been setting up shop here since early this year, particularly firms from Japan, though no official statistics are currently available.

Japanese sewing machine manufacturer Brother International recently won a license to set up a distribution company with an initial investment of $2 million.

Stainless steel and construction material producer Sojitz opened an import, export and distribution branch in March.

Car manufacturer Nissan and electronics producer Sharp have both started distributing their own products.

According to the Ministry of Industry and Trade, Vietnam’s annual retail turnover has increased by 20 percent, on average, over the last few years and is forecast to maintain the same growth for the near future.

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Japan faces three years of deflation: central bank

Japan’s economy faces three years of deflation as it claws back from its worst slump in decades, the central bank warned Friday, even as it moved to end some of its recession-busting measures.

Customers dressed in traditional kimonos look at Hello Kitty character goods as they look at the world’s largest Sanrio character goods shop upon its opening in Tokyo on October 29. (AFP Photo)

The Bank of Japan painted a slightly more optimistic picture of the outlook for economic growth in a twice-yearly report, but warned that prices would keep falling until at least the year to March 2012.

“Japan’s economy has started to pick up, and in the second half of fiscal 2009 it is likely to improve gradually on the back of improvements in overseas economies as well as the effects of economic policy measures,” it said.

But the pace of recovery is likely to remain “moderate” until late 2010 because it will take time for the global economy to rebound and the effect of pump-priming stimulus measures will wane, it added.

The world’s second-largest economy is set to shrink 3.2 percent in the current financial year to March 2010 before rebounding by 1.2 percent next year and 2.1 percent the following year, the Bank of Japan predicted.

Consumer prices are expected to fall 1.5 percent in the current financial year, followed by a further decline of 0.8 percent next year and 0.4 percent the following year, the BoJ said.

The Bank of Japan said it was a “critical issue” whether the decline in prices results in a deflationary spiral that depresses economic activity.

But with the pace of deflation expected to gradually slow, that appears unlikely to happen, it added.

Earlier in the day the central bank announced that it would end some of its emergency measures to fight the financial crisis at the end of the year as Asia’s biggest economy emerges from a deep recession.

The BoJ has been tackling the credit crunch with super-low lending rates and other steps to support struggling companies, such as purchases of corporate debt, which will finish at the end of December.

Japan was stuck in a deflationary spiral for years after its asset price bubble burst in the early 1990s, hitting corporate earnings and prompting consumers to put off purchases in the hope of further price drops.

The current global economic downturn and a slump in commodity costs pushed the country back into the deflationary doldrums.

Core consumer prices have now fallen year-on-year for the past seven months, although the pace of decline eased to 2.3 percent in September, after a record 2.4 percent slump in August, the government reported Friday.

 

Source: SGGP Bookmark & Share

Pig farm has polluted Binh Duong spring for many years

BINH DUONG — Not too long ago, the water in Ben Van Spring was so clear that one could see the bottom teeming with a large population of fish.

Now it is only the memory of long-time residents that is clear.

“I’ve been living here since my childhood,” said Nguyen Van Danh, chairman of the Association of Farmers of Lai Hung Commune in southern Binh Duong Province’ Ben Cat District.

“The spring was once clear to the bottom with lots of fish. But now it’s so dark and filthy no ones dares to step into it.”

The stream has turned black and rancid over many years by untreated waste released by a Philippine-invested pig farm, but residents’ complaints to local authorities have never been adequately responded to.

“We have had to shift from rice to rubber crops,” Danh said, adding that locals have raised the issue with relevant authorities for more than 10 years.

“Nothing has changed much ever since, despite fines being imposed on the company.”

Ben Van Spring flows around San Miguel Pure Foods Vietnam, the pig farm and animal feed producer whose wastewater lake broke in the middle of last month, releasing hundreds of thousands of cubic meters of untreated waste directly into the spring that runs into the Thi Tinh River.

But Danh and other residents said pollution in the spring caused by the pig farm’s production activities that had killed marine life long preceded the incident.

Nguyen Kim Tien, another resident living upstream of the spring, said the company had let untreated wastewater out into the spring for many years, well before the reservoir was breached.

“It [black fluid water] comes out once a week, flooding the whole spring,” said Tien, pointing to a culvert covered in luxuriant bushes that was releasing dirty water into the spring.

Nguyen Xuan Tinh, a village chief, singled out San Miguel Pure Foods Vietnam as the main polluter, saying it was the only company surrounded by the spring.

“The stink from the spring is blown by winds into our houses, while the black water levels rise during heavy rainfall and overflows into local fields,” he said.

Le Minh Chau, chief of the province’s Environment Police, said a recent inspection had found the company’s waste treatment system was no longer functional.

It also found that the reservoir bottom was not laid with concrete in the first place, allowing the contaminated wastewater to penetrate into the ground.

The wastewater reservoir breach last month affected around 10,000sq.m of fish ponds, some of which lost up to 90 per cent of their stock, according to the Ben Cat District People’s Committee.

The company has said it is mobilising workers to repair the reservoir and build a stronger embankment around it. —

Source: vietnamnews.vnagency.com.vn

Viet Nam faces severe power shortage for next few years

Technicians inspecting a transformer. Electricity of Viet Nam (EVN) is predicting a 1,400MW shortfall of electricity for the next few years. — VNA/VNS Photo Ngoc Ha

HCM CITY — Viet Nam imported about 2.2 billions kWh of electricity from China in the first seven months of this year, 13.2 per cent more than in the same period last year, according to Electricity of Viet Nam (EVN).

EVN said the country is facing a severe power shortage of about 1,400MW or 10 per cent of total capacity at rush hours.

Its experts have also forecast the shortage will persist over the next few years. Breakdowns at electrical plants nation-wide, as well as the delayed operation of new plants have been blamed for the shortage.

In an effort to increase supply sources, EVN has increased purchases from China and local power stations outside its grid. EVN bought 15.6 billion kWh in 2009 from local power stations, 22.79 per cent more than in the same period earlier. The output of conventional commercial power went up to around 41,1 billion kWh in the first seven months, an increase of more than 8.83 per cent.

Since it is the rainy season, hydropower stations are running at maximum capacities. EVN has asked the Hoa Binh Hydropower Plant to keep up water in its reservoir at the highest level and prepare to hoard water for the next dry season. Thermal and gas power stations are also running at maximum capacity.

EVN has said that power purchases from China will be based on actual needs.

Contractors have been asked to urgently expedite projects, complete pilot works and make them operational at the earliest. Eleven power stations are set to be linked to the national grid this month and three other projects are set to be launched.

The national daily output of electricity is expected to average 250 million kWh this month and the biggest output is estimated at 13,800 – 14,100kWh, according to EVN. —

Source: vietnamnews.vnagency.com.vn

Nuclear power likely for Viet Nam within 10 years

HCM CITY — A nuclear power plant is expected to be built in Viet Nam by 2020, Deputy Minister of Science and Technology, Le Dinh Tien, has said.

Speaking at the eighth national conference on nuclear science and technology in central resort city of Nha Trang on Thursday, Tien said nuclear energy had been used in many fields, including medicine, agriculture, industry and environment, but the country’s atomic and nuclear development had not corresponded with its potential. The biennial conference was co-hosted by the Viet Nam Atomic Energy Commission, the Viet Nam Atomic Energy Association and Khanh Hoa Province’s Department of Science and Technology.

More than 240 domestic and international scientists and delegates were in attendance.

Vuong Huu Tan, head of the Viet Nam Atomic Energy Commission, said the conference’s many reports and presentations on the use of atomic nuclear technology “will contribute to reaching our nuclear energy goal, and help research and development in the country for years to come.”

Atomic nuclear technology in Viet Nam is currently being used in the fields of health, agriculture, industry and the environment.

Many leading experts in the field of atomic energy from the International Atomic Energy Association, and regional cooperation agencies from Japan, South Korea, France and the US took part in the conference. —

Source: vietnamnews.vnagency.com.vn

Former senior officials receive up to 30 years for smuggling

LAo Cai — The former deputy chairman of Lao Cai Province People’s Committee, senior customs and police officers and several company executives were yesterday sentenced to long jail terms.

This followed a month-long court hearing that found them guilty of being involved in a notorious tobacco smuggling case dubbed Thien Loi Hoa after the name of the company involved.

The longest jail terms, 30 years, were given to those accused of giving bribes, Nguyen Thi Ngoc Lien, former Thien Loi Hoa Company director, and her former deputy, Nguyen Huy Tan. Four others were sentenced to between two and nine years.

Vu Van Khoa, an ex staff member at Ha Long Port was given a two year- suspended sentence. The Supreme People’s Court meted out jail terms of between two and 16 years to customs officers found guilty on different counts of taking bribes.

Former Lao Cai People’s Committee deputy chairman Nguyen Ngoc Kim, who was accused of abusing his power, will serve a three year-suspended term.

Big fines

Three former policemen Ta Manh Dung, Dinh Van Minh and Nguyen Xuan Son will be jailed for between one and 12 years

The court also ordered the defendants to pay fines of up to VND196 million (US$12,000).

According to the indictment, Nguyen Thi Lien established the Thien Loi Hoa Company which duplicated contracts with a Chinese company to import contraband tobacco leaf into Viet Nam after quotas were introduced in 2004.

The company imported at least 14,000 tonnes and avoided tax totalling VND7.2 billion (US$450,000) by smuggling it across the Viet Nam-China border.

Former Provincial People’s Committee deputy chairman Nguyen Ngoc Kim signed 14 import licences for the company and other businesses.

Police said the company paid him VND85 million ($5,300) and a further VND1.3 billion( more than $81,000) to 16 customs officers.

Kim, who became deputy chairman of the provincial People’s Committee, the second top position in Lao Cai northern province in 2002, was arrested in January last year. —

Flood tide in HCM City reaches record level over 49 years

HCM City (VNA) – The flood-tide in Ho Chi Minh City has reached alarming level 3, with the water level of Saigon river measured at Phu An station up to 1.5 m at 4 p.m. on Nov. 12 and 3 a.m. on Nov. 13.

This is the highest level of flood-tide over the past 49 years, according to the Southern Hydro-Meteorology Station.

The historical peak this year was attributed to a strong cold wave and northeast wind.

According to the municipal Steering Board for Flood and Storm Control, high flood-tide has caused bank breaks and overflows in five districts and precincts. About 39 m of embankments in the five districts and precincts has been broken and 32 embankment sections of over 3 km long overflowed.

To minimise the damages caused by the historical level of food-tide, which may also be accompanied by long heavy rain, the municipal People’s Committee and Steering Board for Flood and Storm Control have instructed districts and precincts to take necessary measures, keep watch on important positions, and prepare finance, materials and forces for timely handling of any incidents.

Meanwhile, floods have inundated all roads in the Mekong Delta city of Can Tho . At 3 p.m. on Nov. 13, a big flood-tide raised water level in the Hau river, flooding all streets in the inner city.-

Paper production expects highest growth over 20 years

Hanoi (VNA) – Paper production output is expected to reach over 1.3 million tonnes in 2008, a year-on-year increase of 18 percent, the biggest figure saw in 20 years, the Vietnam Pulp and Paper Association (VPPA) said.

Accordingly, the volume of newsprints will increase by 31 percent, while printing and writing papers up 16 percent, and packing-papers up by 25.6 percent.

The paper consumption volume meanwhile is expected to reach 2.2 million tonnes in 2008, an increase by 24 percent over the same period last year.-

Mekong river’s water level in Thailand hit peak in 30 years

Heavy rains and flooding have caused the water level of Mekong river that runs through Thailand’s northeastern provinces to rise to 12.6 m, the highest peak over the past 30 years.

The high water level overflowed the river banks, forcing thousands of households to evacuate and schools to close, and affecting crops. In Nong Khai province bordering Laos , many roads and structures were partially under water after heavy rains lashed the area on August 14 night, damaging at least 400 homes in Pak Khat district.

An initial survey found that about 128,180 people were affected by flood in Nakhon Phanom province. Traffic on several hundred roads was disrupted, seven dikes were damaged, thousands of hectares of farmland went under water and over 1,200 commercial fishponds were affected. Damage has been estimated at 193.8 million baht (5.73 million USD), according to Thai News Agency (TNA).

Thai Deputy Prime Minister and Interior Minister Kowit Watana made a field trip of the submerged areas to monitor evacuation and relief activities.

Besides, the Health Ministry sent medicines and medical instruments to natural disaster-hit localities.-

EU-ASEAN Minus FTA expected in three years’ time

Hanoi (VNA) – An EU-ASEAN Minus Free Trade Agreement (FTA) is expected to be established within the next two to three years, a European Commission official to Indonesia has said.

The FTA Minus will include member states that are ready to conclude the agreement first, and is likely to exclude Laos, Myanmar and Cambodia until they are prepared to join the pact, Malaysia’s Bernama news agency on August 6 quoted EU-ASEAN Cooperation counsellor of European Commission Delegation to Indonesia and Brunei, Vasilica Basil Constantinescu, as saying.

The FTA will be done in two phases, and EU is talking to all ASEAN member states; some of them are ready to get on with the negotiation process while some of them are not but the approach would be at a regional, at a group level, the official said.

“It will not be separate bilaterals, as it is not possible to negotiate regional FTA with (individual) member states,” he said after the briefing to journalists from ASEAN countries in the Commission office in Jakarta.

ASEAN, which comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam, is the fifth largest export market of the EU and also its fifth largest trading partner.

The EU is the second largest trading partner for most countries in ASEAN after the US, according to Bernama. –