Thread: Latest news on the Dong!

Ha Noi's banking system has recorded strong growth rates in all fields, especially in network development, capital mobilisation, investment and loan provision since the beginning of this year, assessed by the State Bank of Viet Nam, Ha Noi branch.

Banking network in the city consists of 149 credit institutions, including 13 branches of industrial and commercial bank, a transaction bureau and six branches of the foreign trade bank, and two transaction bureaus and 10 branches of investment and development banks.

The joint-stock commercial banking system has eight banks and 14 branches.

Thirteen branches of foreign banks, and three branches and two banks in forms of joint venture have been operating in Ha Noi.

By early October, via the banking system, the city has mobilised a combined capital of VND219.913 billion.

State faces extensive business reforms before WTO accession
16:28' 13/10/2006 (GMT+7)
VietNamNet Bridge – Tran Quoc Khanh, director of the Multilateral Trade Department of the Ministry of Trade spoke with Thoi bao Kinh te Viet Nam (Vietnam Economic Times) about an ever-reforming business environment.

What kind of policies need to be implemented prior to entering the WTO?



Before entering the WTO, we will have to conform to the many regulations of this organisation. Therefore, the biggest challenges will befall the State management area.

During the process of implementing the WTO's principles, the State management body is required to facilitate all works to be implemented on accession to the WTO, and to maintain a fair and competitive environment completely free of discrimination.

The State management body will have to reorganise their current practices focusing on enterprises. When a country enters the WTO, it creates a new competitive environment and we will have to ensure the integrity of that environment.

The State will have to enact a legal framework to make use of the opportunities that result from the WTO accession, encouraging enterprises to actively operate in this new environment.

Competition will surely lead to a restructuring of the economy, in which the State needs to have policies in place to support and sustain that restructuring.

What kind of challenges will enterprises have to deal with in the new competitive environment?

In my opinion, the accession to WTO will not create new challenges for enterprises, as these are the same challenges they face during the economic reform that we have carried out for 20 years.

There is a constant need for renewal in enterprise management that's positioned in a competitive environment. State management, on the other hand, will face new challenges as the accession will require a certain capacity to conform to the WTO's regulations.

You stated, we should not exaggerate advantages or challenges, what is waiting for Vietnam upon entering WTO?

The accession into WTO is just the next step in the country's reform. We have been carrying out economic reform for 20 years and now the reform has progressed to the point of having access to WTO. It is clear the organisation's regulations are on par with our reform project.

And out reform has brought us to this point, where we have accepted WTO's requirements. This is a continuous process. Therefore, the benefits of the WTO accession are also those brought about by the reform.

This means that even if we don't gain access into the WTO but still keep such reform progress, the benefits will still come.

If we don't enter the WTO, we may still decide to open the market, eliminate monopolies in some areas and eliminate subsidies for enterprises. Challenges will still exist for both enterprises and the State management area, in both situations.

Currently, domestic enterprises require clear and transparent regulations, policies and laws. Therefore, our challenges and benefits are due, directly, to the reform. When we enter the WTO, we should avoid exaggerating advantages or challenges.

Although Vietnam's economy is rapidly developing, why is it not stronger in global competition?

The economy is weak competitively due to the management body. Management has not created an environment in which enterprises are forced to compete with each other.

Why do other countries have a more competitive environment than ours? Because they have the right policies in place which force enterprises to compete. That's why their enterprises have enough strength to compete globally.

If we continue with our protection barriers and subsidy policies for enterprises, those same enterprises will not have the motivation to develop their creativeness or be willing to face their competition.

Do you think that the WTO accession will further speed up the reform process?

Yes, I think so.

When we enter the WTO, will the country's export revenues soar?

Whether export revenues increase or not will depend on us and our enterprises' capacity to exploit markets.

When Vietnam enters WTO, strong signals have been delivered by Vietnam to the outside about our determination to reform.

Those signals will contribute to increasing investors' trust, and may increase outside investments. This will create new production capacity, giving us additional ability to meet the demand of export and domestic consumption.

(Source: Viet Nam News)

Vietnam opens wide to tourism
14:45' 12/10/2006 (GMT+7)
VietNamNet Bridge - Vietnam's economic boom is filtering down to its highly underdeveloped tourism and travel industry, making it the latest local sector to undergo a full-blown capitalist transformation.

Tourist arrivals have grown on average 20% per year over the past 15 years, shooting up from 250,000 in 1990 to 3.5 million last year. The first quarter of 2006 saw more than a million tourists land in Vietnam, on pace to hit the government's target of luring 4 million tourists this year. Some industry analysts optimisticallyestimate tourist arrivals will double to 8 million by 2010.

Although long popular on the backpacker trail, Vietnam is bidding to drive its tourism industry quickly up the value-added ladder, catering for higher-spending travelers. Compared with regional neighbors such as Thailand, Vietnam's tourism infrastructure is still antiquated. At the same time, many travelers prefer Vietnam's less commercialized, mass-market experience. The challenge, industry analysts say, will be striking the balance between preserving the country's many old-world charms while introducing more modern creature comforts.

Vietnam is one of the world's fastest-growing economies, and the growing number of tourist arrivals is attracting significant new foreign investment in tourism-related projects. VinaCapital, a Vietnam-dedicated investment bank, in July announced its acquisition of a 52.5% stake in the Hanoi-based Hilton Hanoi Opera, bumping its total ownership in the five-star hotel up to 70%.

Last year, the publicly listed investment group, which operates the US$205 million VinaLand Fund, took a 70% stake in the high-end Sofitel Metropole Hotel, Vietnam's most profitable hotel. And the investment company has stated plans to invest an additional $43 million in Hanoi's hotel and tourism sector, as well as $3.1 million in a 260-hectare resort and golf course in the central city of Danang.

The world's biggest hotel operator, InterContinental Hotels Group, recently announced its entry into Vietnam with its first property, which is set to open in 2009. In April, Hong Kong-listed property developer Lai Sun Development disposed of its 63% stake in the Furama Resort at Danang to an undisclosed registered company in the British Virgin Islands. Foreign capital is pumping up local expectations for the industry: the Bank for Investment and Development of Vietnam (BIDV) recently granted a $33 million, eight-year loan to the Caravelle Hotel joint-venture company to restructure its operations.

Vietnam's tourism sector has attracted 190 foreign direct investment projects with total registered capital of $4.64 billion, providing a major engine for economic growth. The hospitality sector is also creating many new urban-based jobs: Vietnam's tourism sector currently employs more than 234,000 people directly and an additional 510,000 indirectly in associated businesses and industries, according to official statistics.

This provides important employment opportunities as Vietnam makes the transition from a mostly agrarian to industrial and services-based economy. About 57% of the country's workforce is still involved in agricultural activities, and only 26% of the country's 83 million people are in urban areas, one of the lowest such percentages in Asia. Jonathan Pincus, senior country economist at the United Nations Development Program in Hanoi, said: "Tourism is a great industry for Vietnam. It's a great earner of foreign exchange; it employs lots of people, is very labor-intensive and can be very sustainable."

While Hanoi and Ho Chi Minh City are well stocked with luxury hotels and trendy restaurants, the provincial resort market is still highly underdeveloped. However, the legal and tax situation is changing in significant ways to attract more foreign investment in the provinces, in line with requirements for Vietnam's impending accession to the World Trade Organization.

Changing attitudes
Political attitudes toward foreign capital and domestic entrepreneurialism are also changing - though there are growing business concerns about the backlog of 100 or more decrees meant to support and implement new laws on securities and enterprises. The Communist Party Congress in April ushered in a younger generation of leadership, which has already made some interesting moves towards liberalizing the tourism industry.

That significantly includes the implementation of the party's draft decree on gambling activities, which is expected to be submitted to Prime Minister Nguyen Tan Dung this year. Vietnam has already quietly opened three functioning casinos, all in the northern region, as well as a wager-taking horse-racing track in the south - though the facilities there so far remain off-limits to Vietnamese citizens. Instead, they are geared to profit from the growing number of gambling enthusiasts from mainland China.

One of the casinos, about a two-hour drive from Hanoi, is the result of an investment by Macau gambling czar Stanley Ho. Another gambling facility, owned and operated by a group of Taiwanese investors, has applied to go public on Vietnam's stock exchange. The third, about an eight-hour drive from Hanoi on the eastern border with China, is owned and operated by Hong Kong interests. Licensed casinos would provide the government with a much-needed new tax source, economists note.

Still, there are plenty of hurdles for potential investors in the sector. For instance, it is still difficult to get reliable official market data, ranging from land-price comparables to government-approval processes. New investment laws have been designed to make it easier for foreign investors to operate without a local partner - though bureaucratic hassles and enduring extortion rackets mean new market entrants often still require the services of well-connected locals to operate without difficulties.

Provincial infrastructure, including well-functioning airports, is also a weak spot. The government has been slow to provide basic infrastructure to support and lure more tourism-related investments, some industry players say. For one, that's hindered the development of the highly touted Phu Quoc Island, which was originally designed to set the national standard for a foreign tourist-dedicated destination, but has lagged because the government has failed to build a promised international airport.

Potential investors in casino-related projects may have deep enough pockets to develop such facilities more quickly than relying on government bureaucrats to complete the job. But if, as rumored, officials make contributions to building provincial airports a condition for winning a casino license, the policy could backfire and deter rather than attract new foreign funds into the sector.



(Source: Asia Times)

FDI restricted in 14 fields under WTO commitments
12:54' 14/10/2006 (GMT+7)
Soạn: HA 924385 gửi đến 996 để nhận ảnh này
Mr Pham Manh Dung.

VietNamNet Bridge – Pham Manh Dung, Director of the Legal Department under the Ministry of Planning and Investment (MPI) talks about the list of fields in which foreign investment will be limited.



Could you reveal something about the list of areas that will either prohibit or restrict foreign investment?



The list of areas that will prohibit and restrict foreign investment is regulated in Decree 108/2006/ND-CP dated September 22, 2006. Those fields are called the fields of conditioned investment.



There are 14 areas, including banking, insurance, telecom, and services related to finance, maritime, advertising, real estate trading. These fields are harmonious with commitments that Vietnam has made to the World Trade Organisation (WTO) and in bilateral agreements.



There are two kinds of restrictions on foreign investment. For the first kind, specific conditions are set. For example, in the maritime field, foreign investors are not allowed to own over 49% and in insurance area, there are regulations on ratios of foreign investment and we control by quotas. In telecom, foreign investors are not allowed to own more than 51% in back-bone business. Thus, we control and protect local investors in those fields.



In the second type, we don’t describe specific conditions. This means that the Vietnamese state will consult the social-economic development strategy and plan to decide whether or not to open these fields to foreign investors.



For example, in the oil and gas and mining field, we don’t set any conditions. We only have general, package commitments in this area.



Do you think that no specific conditions will allow licencing agencies to ask for more from investors?



If we immediately have detailed commitments, we will lose our rights of maintenance so in some fields Vietnam doesn’t commit any specific conditions, exclusive in WTO negotiations as we accept the ownership of 49% in business cooperation contracts (BCC), no back-bone business.



If investors think that without fixing specific conditions, gaps will be made in administrative formalities, we think it is another issue. We will use other measures to combat corruption and reform administrative formalities and it is not the reason that we will lose our opportunity. We are sticking to our opinions not to serve state-owned enterprises, but the interests of Vietnam.



In some areas such as banking and oil and gas industries, technology and management play an important role but we restrict foreign investment in these fields. Is this irregular?



It is imperative to create competition by foreign investment. In some fields we have created competition. The banking sector is related to financial investment so we have to hold a part to ensure financial securities or to ensure energy security in the field of oil and gas. We have carefully considered this.



When will the list of list of areas that prohibit and restrict foreign investment be issued?



We are translating the list from Vietnamese into English and it will be issued in about a month because investors are expecting it.


(Source: TBKTVN)

State faces extensive business reforms before WTO accession
16:28' 13/10/2006 (GMT+7)

VietNamNet Bridge – Tran Quoc Khanh, director of the Multilateral Trade Department of the Ministry of Trade spoke with Thoi bao Kinh te Viet Nam (Vietnam Economic Times) about an ever-reforming business environment.

What kind of policies need to be implemented prior to entering the WTO?
Soạn: HA 923645 gửi đến 996 để nhận ảnh này

Before entering the WTO, we will have to conform to the many regulations of this organisation. Therefore, the biggest challenges will befall the State management area.

During the process of implementing the WTO's principles, the State management body is required to facilitate all works to be implemented on accession to the WTO, and to maintain a fair and competitive environment completely free of discrimination.

The State management body will have to reorganise their current practices focusing on enterprises. When a country enters the WTO, it creates a new competitive environment and we will have to ensure the integrity of that environment.

The State will have to enact a legal framework to make use of the opportunities that result from the WTO accession, encouraging enterprises to actively operate in this new environment.

Competition will surely lead to a restructuring of the economy, in which the State needs to have policies in place to support and sustain that restructuring.

What kind of challenges will enterprises have to deal with in the new competitive environment?

In my opinion, the accession to WTO will not create new challenges for enterprises, as these are the same challenges they face during the economic reform that we have carried out for 20 years.

There is a constant need for renewal in enterprise management that's positioned in a competitive environment. State management, on the other hand, will face new challenges as the accession will require a certain capacity to conform to the WTO's regulations.

You stated, we should not exaggerate advantages or challenges, what is waiting for Vietnam upon entering WTO?

The accession into WTO is just the next step in the country's reform. We have been carrying out economic reform for 20 years and now the reform has progressed to the point of having access to WTO. It is clear the organisation's regulations are on par with our reform project.

And out reform has brought us to this point, where we have accepted WTO's requirements. This is a continuous process. Therefore, the benefits of the WTO accession are also those brought about by the reform.

This means that even if we don't gain access into the WTO but still keep such reform progress, the benefits will still come.

If we don't enter the WTO, we may still decide to open the market, eliminate monopolies in some areas and eliminate subsidies for enterprises. Challenges will still exist for both enterprises and the State management area, in both situations.

Currently, domestic enterprises require clear and transparent regulations, policies and laws. Therefore, our challenges and benefits are due, directly, to the reform. When we enter the WTO, we should avoid exaggerating advantages or challenges.

Although Vietnam's economy is rapidly developing, why is it not stronger in global competition?

The economy is weak competitively due to the management body. Management has not created an environment in which enterprises are forced to compete with each other.

Why do other countries have a more competitive environment than ours? Because they have the right policies in place which force enterprises to compete. That's why their enterprises have enough strength to compete globally.

If we continue with our protection barriers and subsidy policies for enterprises, those same enterprises will not have the motivation to develop their creativeness or be willing to face their competition.

Do you think that the WTO accession will further speed up the reform process?

Yes, I think so.

When we enter the WTO, will the country's export revenues soar?

Whether export revenues increase or not will depend on us and our enterprises' capacity to exploit markets.

When Vietnam enters WTO, strong signals have been delivered by Vietnam to the outside about our determination to reform.

Those signals will contribute to increasing investors' trust, and may increase outside investments. This will create new production capacity, giving us additional ability to meet the demand of export and domestic consumption.

(Source: Viet Nam News)

WTO documents to be submitted to NA by Nov. 14
16:48' 16/10/2006 (GMT+7)

Trade Minister Truong Dinh Tuyen at Noi Bai Airport.
VietNamNet Bridge – Arriving at Noi Bai International Airport in Hanoi at 10.30am Sunday, Trade Minister Truong Dinh Tuyen happily announced that all issues related to negotiations for Vietnam’s WTO membership had been finalised.



He had an interview with correspondents at Noi Bai Airport, immediately after returning from the 13th multilateral negotiation round in Geneva, Switzerland.



Can we congratulate ourselves on the success of WTO negotiations now?



We have basically completed negotiations. As of October 16, the WTO will transfer all of our commitments to other members. WTO member countries will have around one week to check the documents before re-meeting on October 25-26. At the upcoming session, Vietnam’s accession documents, including the report of the working group, commitments on services and goods will be perfected. The initiation will be held from November 6-8.



WTO documents will be submitted to the National Assembly (NA) for approval. Normally NA deputies need time to research and contribute opinions, around 20 days. According to its schedule, the NA session will close on December 5, so the mission of the negotiation mission now is to compile reports to submit to the NA by November 10 so the NA can ratify them before the session ends.



What was the tensest issue at the last negotiation round in Geneva?



There were many issues that had to be solved during the session. We called it a multilateral round but we actually worked on both multilateral and bilateral issues with partners. The luxury tax on wine and beer was the tensest issue and we spent a lot of time on it.



How were the business rights for foreign commercial partners solved during the session?



The rights of business is also a very complicated issue. Vietnam tried to gain the control over it and not let foreign businesses control the distribution system. Finally, partners agreed that the rights of business, in any circumstance, is not understood as automatically entering the distribution system. We have the rights to use regulations to limit the accession in any form, particularly for sensitive products.



Before leaving for Geneva for negotiations, did you think that everything would be solved during the round?



Our determination was very high when we left Vietnam. But on the final day, October 13, a problem emerged related to shipping services. In October 2004, we made some commitments with the European Union (EU) about shipping services and we didn't want the commitments applied to all WTO members.



Some members asked Vietnam to extend those commitments to them as well. The struggling was very tense but finally partners agreed with their exclusion.



What do you think about the statement that you made one month ago, saying that it was not imperative for Vietnam to join the WTO before APEC 2006? Was it a tactic?



It is quite correct to call it a tactic. It is also true if it is called my real opinion. Some countries posed very demanding requirements and actually we rejected their requirements.



Do you think that we have successfully conducted this round of negotiations thanks to that statement?



(Smile) We frankly spoke out that we would not accept unreasonable requirements. Of course, each round of negotiation reaches a point that both sides can accept.



The government has asked related bodies to announce the WTO commitments in November, but what is the specific date?



Negotiations have been completed and we can made documents public, but it is best if documents are released after the session on October 25-26 to avoid the risk that we would have to change the documents after we made them public. Of course, if it happens, only several words would need to be changed.



(Source: VNE)

SBV Governor explains bank note problems
08:59' 13/10/2006 (GMT+7)


VietNamNet Bridge – The State Bank of Vietnam’s Governor Le Duc Thuy on October 11 sent a dispatch to press agencies, explaining the bank note problems raised by the press in recent days.



SBV governor’s son’s involvement in money printing questioned



According to the Minister of Culture and Information Le Doan Hop, Mr Thuy’s explanation comes per request of Prime Minister Nguyen Tan Dung. Seven questions have been raised and here are the answers.



Why polymer, not cotton?



Polymer paper was first introduced in 1988. Up to now, 23 countries in the world have used this kind of paper for their bank notes.



Polymer bank notes have many advantages: imperviousness to water, suitable to Vietnam’s climate, durable and anti-counterfeiting capable. In addition, Vietnam can use the current printing line used for cotton bank note printing for polymer bank note printing.



There are several disadvantages of polymer notes, including high expenses. But SBV finally decided to replace cotton bank notes with polymer ones.



All polymer paper used for bank note printing must be imported from only one company in the world: Securency.



Which printing technology to use?



The printing of polymer bank notes is being undertaken by the Vietnam National Bank Note Printing Factory with technical assistance and technology transfer from Australia. The transferred technology is also being used in Australia and many other countries in the world. Mr Thuy said that the press has no reason to think that the technology is 15-years out of date compared to other technologies. In fact, there is no difference between the VND50,000 bank note and bank notes printed in Australia.



About the quality of made-in-Vietnam polymer bank notes



The polymer bank notes will become smeared when you drips drops of water on them and rub them time and again. However, Mr Thuy said that this does not show that the polymer bank notes are bad quality or have technological errors. The phenomenon can happen with all types of bank notes, no matter they are dry or wet, made of cotton or polymer.



Mr Thuy has warned that people must not rub bank notes time and again, because this would be regarded as an action of destroying national bank notes.



Regarding the error on a VND500,000 bank note discovered by people in the last several days, on which there was no OVI (optically variable ink), the National Bank Note Printing Factory admitted that this was the printing error. However, this should be seen as specific error, not technological error. In principle, people who have faulty bank notes can come to banks to get the notes changed.



About anti-counterfeiting capability



The new polymer bank notes prove to have a higher anti-counterfeiting level than the circulating cotton bank notes. The appearance of counterfeit polymer bank notes on the market was expected by SBV and the Ministry of Public Security.



In fact, the counterfeit money volume seized in 2005 saw a decrease of 22.48% over the previous year, and in the first eight months of the year the volume was down by 71.21% over the same period of 2005. Polymer bank notes account for just 15% of total seized counterfeit money.



The Criminal Science Institute under the Ministry of Public Security in 2005 stated that the VND50,000, VND100,000 and VND500,000 polymer bank notes issued by SBV have outstanding features in terms of material, printing technology and anti-counterfeiting capability.



About design errors



SBV has admitted to an error with the VND10,000 polymer bank note. There is no numerical dot after the first zero in ‘10000’ to indicate ‘thousands’ in the Vietnamese style (it should be ’10.000’).



In addition, SBV has also admitted that there are differences in the designs of some patterns on the bank notes of different face value. For example, there were differences in colour and size of the words “Chu tich Ho Chi Minh 1890 – 1969”. The central bank has pledged that these errors will not be repeated in the new series.



How to ensure currency security if bank notes are designed in other countries?



SBV’s plan on using polymer bank notes has been approved by the Prime Minister, under which SBV has the right to hire foreign companies to design bank notes for Vietnam. However, after four samples were designed in other countries, Vietnam could itself design the VND10,000 and VND20,000 bank notes.



In order to ensure currency security, SBV has asked the partner to make written commitments on ensuring data security. All the documents relating to the bank note design were destroyed after the completion under the supervision and witness of relevant authorities and staff from the Ministry of Public Security.



In fact, the partner who designed bank notes for Vietnam is also the partner of many other countries, and has proven to be a trustworthy partner.



About expenses to print polymer bank notes



The production cost of polymer bank notes is double that of cotton ones.



However, it is necessary to note that polymer bank notes’ life expectancy is 3-4 times longer than cotton bank notes. Therefore, if considering in the long term, the expenses for polymer bank notes are about 66% of the expenses for cotton bank notes.



The Prime Minister has asked SBV to cooperate with relevant ministries to review the implementation of the plan on polymer bank notes circulation. The report on the plan’s implementation is expected to be completed in the fourth quarter of 2006.



Phuoc Ha

APEC further focuses world’s attention on Vietnam
11:09' 16/09/2006 (GMT+7)

Professor John Quelch.
VietNamNet Bridge - Professor John Quelch, Associate Dean of the Harvard Business School, shared his views on Vietnam’s economic development on his second trip to Vietnam with VietNamNet.



Welcome back to Vietnam! What are your feelings about Vietnam this time in comparison to what you saw here last time?



I think this year there are much more excitements in Vietnam and much more energies than there were last year and that is probably the function of entry to WTO, the function of preparation for whole thing the very important APEC summit in November. But I think it is sort of the reflective of an 8% per annum in your GDP growth rate, which is very energizing the economy especially in the major cities. So sum it up, more energies, more excitements, more initiatives, more business entrepreneurships and I think they all bold well for the economic development of the country.



As you have mentioned APEC, what do you think Vietnam can do to build up and to sell its image to the world market?



I think there are two constituencies that are especially relevant in that regard, one is the foreign direct investment and the second is the tourists.



As far as foreign direct investment concerned, Vietnam already has already had a very good track record of foreign direct investment; the US$5.8bil realized and implemented foreign direct investment in 2005. It is a very strong expression of the confidence of foreign investors in the future of the Vietnamese market.



And I think that what the APEC summit will do is further focus the world’s attention on Vietnam and give them an opportunity to showcase the considerable economic potential that the country has. So I would expect the APEC summit properly managed to result in positive acceleration of further foreign direct investment into Vietnam.



Now as far as the tourists they concern, here I think the major challenges that Vietnam is still regarded as slightly offbeat and exospheric location and not a location that the mainstream international tourists would yet have on their priority list.



But there are of course that we know many thousands of people who have visited for example Thailand, which has developed a very effective tourism industry and who I think have visited Thailand would have added a second or third trip to the Southeast Asian region be very interested by the heritage and natural resources and beaches of Vietnam.



And what is the most important thing you expect from APEC?



I think the most important thing is the further commitments of the member nations to reduction in trade barriers and to prosper the cooperation that will enhance further the economic growth rate of the region. It is increasingly the case in the world economy that Asia is the engine of economic growth. It is no longer for sure, the Western Europe and to last degree the US cannot carry the entire world economy.



So I think the opportunity is you have the Asian leaders realize that they not only have the responsibilities for their own countries and for the region, but actually to assume that a very much more important and responsible world as leaders of the entire world economic engine.



I think the principle issues that face international business today is interestingly not that complicated. The business leaders I have talked to today are not really concerned about the availability of financial capital for further investment expansion. The main constraint on economic growth everywhere is the availability of human capital, the availability of talented and skilled people, particularly managers, leaders to be able to fill and to rack economic growth. So I think this is particularly important challenge for Vietnam, because the level of education although is very good, relevant to the per capita income of the country.



It is nevertheless not going to be sufficient if it stays where it is to really enable Vietnam to be strong player in the world economy where the profits are really based on nohow are supposed to low cost labour. I think therefore education has to be the number one priority for Vietnam if it is going to be able to be more competitive, more productive and therefore more successful on the world stage.



What do you think about the Vietnamese media and its role in economic development?



Well, the media at the moment is probably the principle determinant of speech with which ideas are transmitted through society and this is very important in terms of the pace of economic development because if the media is underdeveloped it means that new ideas are nor being shared fast enough and therefore the pace of economic development is slow.



If you have a really good media community and media institutions it means that the dialogues in society and civil society are more diverse and more intense. Debates are flourished and that stimulate further thinking and that stimulates the kind of pre-activities they can drive on entrepreneurship, they can drive renovation and ultimately really contributes to the reparability that works the economy growth. So I’ve always believed in the notion that you really need a strong independent media to really drive economic development.



Clearly that VietNamNet has provided a distinctive service to Vietnam in terms of perhaps the development of the internet portal that many outsiders would be surprised that given the per capita in come of Vietnam, in other words VietNamNet is the head of what you would expect an economy of this stage of development, so to some extent we should congratulate you and your team on having contributed to that.



Do you think the Vietnamese media can reach the world market? If yes, what should we do?



I think there are two or three things to consider here. First of all, the global competitive market is a very difficult place to be if you do not have some distinctive competencies. If you don’t have anything that is particularly differentiated then it’s gone be a very tough for you to sell in an oversea market. So the question then is what competencies could the Vietnam’s media possibly have of relevance to oversea markets?



So number one is if you developed your media faster than your own economy then it should be particular approaches that you have uncovered or particular new products that you have been selling that could be relevant to other media companies in other markets where you can sell your technologies, your products, your ideas to them.



The second approach is of course to say we ourselves could develop with our skills the content that could be available and relevant to a broader geography, in other words not just developing content for Vietnam but developing content for the region for example and I think if I recall, VietNamNet has another small fledgling operation called Asianews.net which is early stage of development of a portal that will be relevant to the entire Southeast Asian region.



So remaining these things whether or not that develops enough momentums that will become a regional brand. But I think the good thing here is at least trying to test whether or not what it does have as key competencies can be transferred to another international market.

Thank you very much for spending your time with us for the interview!

VietNamNet Bridge

National Assembly burning with WTO
16:06' 17/10/2006 (GMT+7)

Finance Minister Vu Van Ninh talked with correspondents at the side line of the 10th NA opening session this morning.
VietNamNet Bridge – Vietnam’s impending WTO accession is a burning issue on the sidelines of the 10th National Assembly session, which opened this morning.

President Nguyen Minh Triet is scheduled to submit to the NA the statement on Vietnam’s accession to the WTO for approval on November 27. Trade Minister Truong Dinh Tuyen will report on the results of WTO negotiations. On November 28, the NA will discuss and approve the Resolution on Vietnam’s WTO accession.

However, the NA opening session this morning was abuzz with all things WTO.

Former Deputy Prime Minister Vu Khoan told correspondents that NA deputies had been learning about the WTO through books, newspapers, seminars and meetings.

Prof. Tran Dong A, deputy of HCM City, said that the NA had given information about Vietnam’s WTO accession to deputies. Most deputies know the advantages and difficulties for Vietnam when the country joins the WTO, he said. The most important thing is for the NA to timely introduce laws to serve WTO accession and protect Vietnam’s interests.

“NA deputies have been informed about key points of the WTO. The NA Office has also sent related documents to deputies, but like businesses, NA deputies are waiting for the government to provide all documents about the WTO,” he said.

Former Deputy PM Vu Khoan said that Vietnam had been long preparing to cope with the difficulties it will face after joining the WTO. However, he said he couldn’t mention specific methods until the final commitments were released.

He revealed that a hot line on the WTO had been set up, to be managed by the Ministry of Agriculture and Rural Development.

This morning, correspondents questioned Finance Minister Vu Van Ninh on how the budget revenue would be affected when Vietnam entered the WTO: Will Vietnam cut some tariff lines?

Mr Ninh said that Vietnam had carefully considered measures to diminish disadvantages for the economy. “WTO accession has two sides. We have to reduce taxes, but WTO membership can promote production and once production increases, budget revenue can grow as well,” he said.

According to Mr Ninh, Vietnam has to foster local production forces. The Government has devised many projects to help Vietnam gain initiative in sources of tax collection; for example, in the construction of oil refineries. Another measure to support budget revenue is to more closely control tax collection.

Mr Ninh also emphasised that in the future Vietnam would have to follow other countries in considering personal income tax as a significant source of budget revenue.



Ha Yen

US President to come to Vietnam with PNTR?
11:35' 17/10/2006 (GMT+7)

Ms Virginia Foote (photo: TBKTVN).
VietNamNet Bridge – The US Congress will ratify the Permanent Normal Trade Relations (PNTR) status to Vietnam in the week that President Bush is in Vietnam to attend the APEC Summit, said Chairwoman of the Vietnam-US Trade Council Virginia Foote.

Ms Virginia Foote said on Monday that she believed that the US Congress will approve the PNTR for Vietnam in the second week of November, the week that President Bush is in Vietnam for the APEC Summit.

Talking to correspondents, Ms. Foote said that that week would be a very busy one because it is the first week that the US Congress re-gathers after the election so it is difficult to forecast whether the PNTR for Vietnam will be approved by both the Senate and the House of Representatives or only at one legislative body.

“However, it seems to be impossible that the US President will come to Vietnam to attend APEC without PNTR,” she said.

“The President always expects the PNTR for Vietnam to begin at that time – the APEC Summit. Vietnam and the US have worked very hard together for Vietnam’s WTO accession. We hope that the President will come to Vietnam with PNTR or at least the PNTR issue will be solved while he is in Vietnam,” she added.

In a meeting with Vietnamese Trade Minister Truong Dinh Tuyen yesterday, Ms. Virginia Foote congratulated Vietnam’s historical achievement: ending WTO accession negotiation. She also said this is good news.

(Source: Tuoi Tre)