Child hurt as wild bull attacks coastal village

This wild bull has frequently appeared in Bac Ai District, destroying crops and scaring people.

Residents of a Raglai ethnic minority village in coastal Ninh Thuan Province have reported frequent visits by a wild black bull that have left crops destroyed and one child injured.

“This bull butted a breeding ox to death and severely injured Pinang Tem [the name of the child] while he was tending oxen,” said Pinang Hoang, chairman of the People’s Committee of Phuoc Binh Commune, Bac Ai District.

Hoang said the bull had left damage in his wake at several farms in Bac Ray 2 Village and scared the local population.

“That black animal comes down from the mountain every single day. It’s huge and aggressive,” said villager Pinang Quang.

“One day, after ravaging the area, it roamed around the village then slept in a local field rather than going back to the mountain. In fear, we had to lock up our house and go down to Bac Ray 1 Village to sleep,” he said.

Deputy director of Phuoc Binh National Park Pham Ngoc Hoan said the bull became very aggressive after it split from its herd.

Meanwhile, many locals said the bull had been flirting with their cows. A cow reportedly gave birth to a calf much bigger than normal. It had a very short tail, black feet and no mane, which were specific traits of the trespassing bull, they said.

Three herds of wild cattle, 40 individuals in total, lived in the area, Binh said.

Chief of police in Phuoc Binh Commune, BoBi, said about 100 heads of wild cattle lived in the border area between Lam Dong Province’s Phuoc Binh National Park and Ninh Thuan Province’s Khanh Vinh District.

Attacks by these wild animals on humans and domesticated cattle were first reported in April 2009 and had recently become more serious, he said.

Source: VNS

For electricity users, no pain, no gain

An advisor to the Prime Minister emphasizes that to accelerate and sustain development of the power sector, there’s no alternative to higher electricity prices.

Thai Phung Ne, a former Minister of Energy, now serves as the Prime Minister’s special envoy for electricity projects

EVN proposes four options for electricity price increases

Industry promises big jump in power prices will end outages
Expert says 10 percent electricity price increase is unreasonable

Thai Phung Ne, a former Minister of Energy, now serves as the Prime Minister’s special envoy for electricity projects. He talked with the investment journal Dau Tu about the relationship between electricity prices and sustainable development of the power sector.

Dau tu: The two reports you make every year after visiting power projects include many suggestions aimed at speeding up the investment. Why have these power projects been so very slow in implementation?

Thai Phung Ne: There are three major difficulties: a capital shortage, slow site clearance and the lack of urgency in the project implementation.

The capital shortage has become serious. I think the best solution to the question is to stimulate development by setting power prices at a level that will induce investments. The state budget can’t mobilize the huge amounts that are needed to build enough power plants, so we must accept price increases.

There are difficulties in site clearance. In some localities, it takes several years, even though only a few households are holding out. The property owners aren’t dumb – they can see that compensation policies are constantly changing.

And then, it’s a fact that investors and contractors lack determination.

Dau tu: Two years ago, you told the Government that if people at the top are not put on notice, it will be very difficult to speed up the implementation of power projects. Can you see any progress in that regard?

Ne: After the Prime Minister got personally engages, the responsible parties became more active. However, here we can see the character of Vietnamese people: they do not follow strict discipline. When projects go slowly, they always blame that on objective reasons, such as the capital shortage and the tardiness in site clearance.

Dau tu: You have talked about “feeding the power industry with higher electricity prices.” What’s your view of the proposal by the Energy Association (VEA) proposal to raise the electricity price to eight US cents per kilowatt/hour?

Ne: The VEA’s proposal aims to ensure a reasonable payback for power investors, that is, profit of at least 10 percent per year on invested capital. Foreign investors have been demanding a payback rate of 15 percent. Only when investors can see a reasonable profit will they be able to arrange financing for these projects.

Dau tu: It seems that the power monopoly, EVN, is seeking bank financing to start some power projects, and thus free up funds for operating expenses?

Ne: That would lead to capital imbalance. Investors need to put up at least 20-30 percent of capital needed for the projects from their own resources, and they need to repay loans from electricity sales. Only if we make that possible will Vietnam be able to attract investment in the power sector.

For the last 15 years, not one foreign investor has invested in the sector, because the electricity price is not attractive.

Dau tu: Yes, but public opinion is really upset with the VEA proposal to raise the electricity price. . . .

Ne: We need to look around us. In China, the current retail electricity price is eight US cents per kilowatt, and it has developed a dynamic industrial sector including many supporting industries.

If we want to grow in the same way, we would be crazy to continue to hold down power prices. The VEA proposal would be implemented over a three year period.

Source: Dau tu

POLITICS IN BRIEF 1/9

Mozambique PM arrives in Ha Noi

Mozambican Prime Minister Aires Bonifacio Baptista Ali arrived in Viet Nam yesterday on a week-long official friendship visit to the country at the invitation of Prime Minister Nguyen Tan Dung.

The Mozambican PM is accompanied by ministers of labour, fisheries, and veterans’ affairs and deputy ministers of finance and agriculture, plus several other officials.

State President congratulates teachers and pupils

State President Nguyen Minh Triet has sent a letter of congratulation to teachers, lecturers, parents, students and pupils across the country to mark the new academic year.

Photo: VOV

In his letter dated August 31, President Triet wrote that in the 2009-2010 academic year, the education sector has made many major achievements by expanding the catchment areas for education and training, improving the quality of education and paying more attention to teaching morals and the laws. The sector has also invested in upgrading schools and information technology (IT) infrastructure.

After ten years of implementing the educational development strategy, every province and city now provides compulsory education for high school and primary school pupils. The qualifications of teaching staff have been improved and many pupils have won top prizes at international and domestic contests. He also highlighted the efforts and achievements made by the education sector, especially collectives and individuals who have taken lead in emulation movements, as well as teachers who work in remote, border, and island areas.

2010-2011 is the first academic year that the resolution adopted at the ninth National Party Congress will be implemented at all levels. He called on the education and training sector to improve teaching methods and the quality of education. He also asked the sector to put into action every education project that has been approved by the government.

Mr. Triet said he is very proud of Professor Ngo Bao Chau becoming the first Vietnamese to receive the Fields Medal – the world’s most prestigious award for mathematics. He expressed his hope that students and pupils will follow the shining examples set by their predecessors, especially Professor Ngo Bao Chau to bring honour to the nation.

He also asked local administrations and social organizations to pay more attention to providing adequate conditions for students to study.

He also asked every teacher and student to chalk up even greater achievements in the new school year.

Party and State leaders pay tribute to President Ho Chi Minh Mausoleum

Delegates from the Party Central Committee, State, National Assembly, Government and the Fatherland Front of Vietnam paid tribute at the President Ho Chi Minh Mausoleum on September 1 for the 65th anniversary of the August Revolution and National Day.

The delegation included Party General Secretary Nong Duc Manh, State President Nguyen Minh Triet, Prime Minister Nguyen Tan Dung, National Assembly chairman Nguyen Phu Trong, President of the Vietnam Fatherland Front Central Committee, Huynh Dam, former Party General Secretary Le Kha Phieu, former State President Tran Duc Luong, former Prime Minister Phan Van Khai, former National Assembly chairman Nguyen Van An, members of the Political Bureau, the State Vice President, Deputy Prime Ministers, National Assembly vice chairmen and revolutionary veterans.

The delegation laid a wreath at the monument to Vietnamese martyrs who gave their lives for the independence and freedom of the nation.

Also during the morning, delegations from the Ministries of Defence, Public Security and Foreign Affairs, and Hanoi Municipal People’s Committee, Party’s Committee and Fatherland Front also paid floral tribute to late President Ho Chi Minh and the monument to Vietnamese martyrs.

UN Secretary General sends congratulation on Vietnam’s National Day

UN Secretary General Ban Ki Moon extended his warmest congratulations to President Nguyen Minh Triet on the occasion of the 65th National Day of Vietnam (September 2).

In his message, the UN leader affirmed that "With your support, we can meet the threats of our time and build a more prosperous, equitable and sustainable world for all."

He also expressed his hope that all the UN members will mobilise their collective energies to meet the Millennium Development Goals by 2015.

”The UN can rely on Vietnam’s support in its endeavours,” he said.

HCM City to facilitate int’l cooperation

Ho Chi Minh City leaders have pledged to exert more efforts to provide the most favourable conditions for further exchange and cooperation with international and foreign agencies, organisations and businesses.

The municipal People’s Committee and People’s Council Chairpersons, Le Hoang Quan and Pham Phuong Thao, made the commitment to representatives of diplomatic corps, foreign businesses and organisations and non-government organisations in the city at a party on August 31 marking Vietnam’s National Day (September 2).

Quan praised effective contributions by foreign and international businesses and organisations to the city’s development in recent years and expressed his hope that the city would continue to receive their support and active cooperation.

VNN

World leaders congratulate Vietnam on National Day

Leaders of foreign countries from around the world sent congratulations to Vietnam's Party, State, Government and National Assembly leaders on the 65th anniversary of the country's National Day (September 2).

Grand meeting marks 65th anniversary of August Revolution and National Day

General Secretary of the Central Committee of the Communist Party of China and Chinese President Hu Jintao, Chairman of the Standing Committee of the National People’s Congress Wu Bangguo and Chinese Prime Minister Wen Jiabao respectively sent congratulatory messages to their Vietnamese counterparts.

The Vietnamese leaders include General Secretary of the Central Committee of the Communist Party of Vietnam (CPV) Nong Duc Manh, President Nguyen Minh Triet, National Assembly Chairman Nguyen Phu Trong and Prime Minister Nguyen Tan Dung.

They also expressed their belief that under the CPV’s resilient leadership, Vietnamese people will build Vietnam into a prosperous, socialist nation with wealthy people and an equal, democratic and civilised society.

In a congratulatory message sent by the Lao leaders, they said they were delighted at Vietnam’s increasing prestige and position in the region and on international arena. “Vietnam has completed its heavy responsibility at the United Nations forum and is successfully undertaking the role of the ASEAN Chair as well as other international conferences,” they wrote.

Cambodian King Norodom Sihamoni extended his best wishes and congratulations to the Vietnamese people on Vietnam’s National Day.

In his message, Cambodian PM Hun Sen confirmed his country’s wish to further promote the friendship and close cooperation between Cambodia and Vietnam.

Second Secretary of the Communist Party of Cuba Central Committee and President of the State of Council and the Council of Ministers Raul Castro Ruz expressed the determination to further enhance the friendship, cooperation and solidarity between Cuba and Vietnam.

In his message to his Vietnamese counterpart, US President Barack Obama said bilateral relations between Vietnam and the US have been developing. He said he and the Vietnamese leader would do further to enhance bilateral ties in the years to come.

Russian President D. Medvedev wrote “The Vietnamese people’s achievements in State building and national economic modernisation have left good impressions. Vietnam’s international prestige has been unceasingly increased.”

Meanwhile, Prime Minister Vladimir Putin said he was happy at the efficiency and mutual benefits of the Russia-Vietnam strategic partnership.

He expressed his belief in the continued consolidation of bilateral ties in politics, economics, science-technology, culture and other fields that will meet the basic interest of the two peoples for peace and stability in the Asia-Pacific.

The other well-wishers include:

Indian President Pratibha Patil and Prime Minister Manmohan Singh;

Brunei Darussalam’s King Haji Hassanal Bolkiah;

Chairman of the State Peace and Development Council (SPDC) of the Union of Myanmar Senior General Than Shwe, SPDC Vice President Vice Senior General Maung Aye and Prime Minister U Thein Sein;

Japanese King Akihito;

Thai King B humibol Adulyadej and Prime Minister Abhisit Vejjajiva;

Singaporean President S. R. Nathan, and Prime Minister Lee Hsien Loong.

Banquet celebrates 65th National Day anniversary

State President Nguyen Minh Triet has expressed his gratitude to elder generations, President Ho Chi Minh, revolutionary veterans, heroic mothers, martyrs, war invalids and the entire people who fought for independence and freedom of the nation.

During a banquet held to celebrate the 65th anniversary of National Day at the International Conference Centre in Hanoi on September 1, the State leader went on to say, “We are grateful to the people of friendly countries around the world who supported and assisted the Vietnamese people over the past 65 years.”

He recalled never forgotten memories on the two resistance wars in the 20th century, saying that the Vietnamese people had to experience a long struggle and sacrifice for independence, freedom and their wish to live in peace to build and develop the country.

He said under the leadership of the Communist Party of Vietnam and President Ho Chi Minh, a new style state – the state of the people, by the people and for the people – was established for the first time in Vietnam’s history on September 2, 1945.

“This was a landmark event, opening a radiant new stage of history, a new change for the nation and each citizen of Vietnam,” he said.

Moroccan Ambassador to Vietnam El Houcine Fardan, head of the diplomatic mission, hailed efforts made by the Vietnamese government and people in its national construction.

Vietnam succeeded in building a knowledge-based economy and is increasing its integration into the global economy, he said.

Ambassador El Houcine Fardan reaffirmed his resolve and wish to develop and promote relations between Vietnam and other nations and international organisations through cooperation for common benefit, saying he believed that Vietnam will continue its efforts to develop the country for a brighter future.

The banquet was given by leaders of the Party, State, Government, National Assembly and the Vietnam Fatherland Front Central Committee.

Source: VOV/VNA

Is Vietnam’s 3G too cheap or too expensive?

3G services have been supplied by Vietnam’s three largest telecom networks for nearly one year, but they don’t meet user expectations.

In the 15-year history of the telecommunication industry, the launching of 3G services is seen as a breakthrough that rubbed out the problems of data transmission speed and distance. 3G services are billed as a launching pad for the development of the telecommunication market or the digital content market for mobile devices.

The presence of 3G services in Vietnam also proves that local telecom firms are catching up with the world technology. However, since 3G services were offered in Vietnam, there’s been debate about the quality and effects of these services, and also the charges.

Experts say that with the average revenue per user (ARPU) of less than $5 a month, it is difficult to popularize 3G services in Vietnam. However, service providers have lowered the charges in order to bring these services to a mass market.

At the beginning, the charges of 3G-based data services in Vietnam were quite cheap. All three service providers – Viettel, VinaPhone and MobiFone – designed service packages without capacity restriction with a fixed monthly charges of around 250,000 dong ($12.50).

Recently, they have adjusted the offer. Unlimited capacity is gone, replaced by a 3 gigabite limit, and fixed charges were dropped to about 200,000 dong ($10) per month.

The sudden increase of telecom charges in Vietnam is an abnormal move. However, Vietnam’s 3G charges are still low compared to other countries. For example, Singaporean 3G users pay SG$20 (around 300,000 dong) to use 1GB data a month.

Though 3G charges in Vietnam are relatively inexpensive, customers have complaints. Many were upset when they were socked with big bills after the 3G providers cancelled their unlimited service packages. They say the cancellation was not properly announced.

Behind this story is a problem of the telecom market. As telecom networks have slashed mobile phone charges massively, users have come to expect telecom charges will go ever downward. When service providers adjust telecom charges to a profitable level, users complain that the services are expensive.

3G services are not for all users. In developed countries, most 3G service users are those who have to move about very often. In Vietnam, this service is used in a different way: customers download movies or music, or use 3G to replace wireless broadband Internet. As a result, service providers have backed away from unlimited capacity packages.

If telecom service providers were to continue to slash charges, Vietnam’s ARPU would approach to the world’s lowest level while users continued to demand the latest mobile technology.

In short, there’s good reason to seek better balance in the market. Charges for telecom services in Vietnam are now very low and if this trend continues, users too will suffer when service providers don’t have money to re-invest in their networks. Predictably, service quality will deteriorate.

Vuong Long

Free trade deals receive mixed reviews

VietNamNet Bridge - Free trade agreements (FTAs) in general have led to higher economic growth, but regional FTAs have had mixed results, experts have said.

Vietnam keen on more free trade agreements

Harnessing the true power of ASEAN FTAs

Japan to conclude FTAs with Vietnam, Switzerland

"Import and export growth has been at a maximum of around 7 per cent under partial compliance with all FTAs signed by Viet Nam," said David Vanzetti of Australian National University.

"Most of the export-import growth came from the ASEAN Free Trade Agreement (AFTA) and the FTAs signed with South Korea," he said. "Growth is expected to rise as much as 16 per cent when Viet Nam fully complies with all FTAs."

Speaking at a conference held in HCM City yesterday, Vanzetti said that production activity of most sectors was also expected to increase, largely because of labour and investment requirements of FTAs.

However, the growth of several sectors is expected to decline because of various factors, including anti-dumping laws, and technical barriers and duty-free barriers to trade.

Several sectors have registered high growth while others have encountered challenges from imported goods, according to Vanzetti.

Viet Nam has signed numerous trade agreements, including AFTA, ASEAN – Australia-New Zealand, ASEAN-India, ASEAN-South Korea, ASEAN-China and ASEAN-Japan, and is prepared to sign FTAs with the EU, Turkey and Chile.

In a research study on the impact of FTAs on Viet Nam's economy, Vanzetti and his Australian National University colleague, Ray Trewin, interviewed businesspeople and local experts.

Pittsburgh University's James Cassing of the US, former Vietnamese Trade Minister Truong Dinh Tuyen, and representatives from the Central Institute for Economic Management Research and the Ministry of Industry and Trade also worked with Vanzetti and Trewin on the research study.

Vanzetti said many sectors, including footwear, leather, seafood, textiles, fruit, rubber and coffee, were optimistic about the effect of FTAs, while other sectors, like the automobile, paper and paper mill industries, were pessimistic.

The research was conducted for MUTRAP, a multilateral trade assistance project carried out by the European Commission and the Vietnamese Ministry of Industry and Trade.

MUTRAP, which is now in its third phase, helped Viet Nam prepare for membership in the World Trade Organisation (WTO), and continues to assist the country in following WTO trade regulations.

The peripheral impact of all FTAs on the country's economy by 2015 is expected to be US$945 million a year and edge up to $2.4 billion a year after all trade commitments become final during the 2015-21 period, according to Vanzetti.

The biggest trade benefits would come from FTAs with South Korea, Japan and AFTA, while FTAs with China would have a more long-term effectiveness, he said.

Viet Nam is not expected to benefit much from FTAs with India, Australia and New Zealand because of the current low trade level with those countries.

Vanzelli and his colleagues said that, in the future, Vietnamese trade negotiators should more carefully analyse the possible negative and positive impact of any FTA before signing the final agreement.

He said an impact assessment prior to negotiations should analyse the effect of the FTA on the worst-affected sectors as well as the impact on exports, imports, national income (GNP), taxes, jobs and salaries.

Truong Dinh Tuyen, former minister of trade, noted that the trade roadmaps of all the many FTAs had led to a mishmash of regulations and different regulatory time frames.

Because of this, Viet Nam may not be able to take full advantage of its trade agreements.

"An impact assessment is necessary to develop strategic solutions during FTA negotiations," he said, adding that future agreements must thoroughly analyse the benefits and risks associated with the FTA.

MUTRAP III held a conference in Ha Noi on Monday and HCM City yesterday to discuss the findings of the research with the EU delegation to Viet Nam, the Ministry of Industry and Trade and the MUTRAP team and researchers.

Source: VNS

Vietnam’s cargo shipping paradox

As the exporter of some essential products and a big importer of many materials and equipment, maritime transport is crucial to Vietnam’s economy but 80 percent of its import-export goods are shipped by foreign vessels.

According to latest statistics, Vietnam’s export and import revenues reach $52 billion and $61 billion a year. The Ministry of Transport also anticipated that the total volume of goods at Vietnamese seaports will be 498-590 million tones by 2015 and from 870 to 1,083 million tones by 2020, 1580 to 2100 million tones by 2030.

Vietnam has sea, ports, sources of goods and a strong shipbuilding industry but up to 80 percent of its import-export volume is shipped by foreign vessels, why?

Tran Duc Minh, Chairman of the Vietnam Shippers’ Council, analysed that traders don’t choose Vietnam’s cargo ships because the crew is small, with poor good maintenance conditions and less competitive prices. While foreign shipping companies have six trips to the US, Vietnamese shipping firms have only one because they can’t gather sufficient cargo for a trip resulted in high shipping fees.

Ngo Khac Le from a cargo shipping firm named Vietfranch said that Vietnamese cargo shipping companies sometimes don’t dare to take orders to transport goods of several hundreds of tones upwards because they couldn’t meet strict requirements on time, deposit and technical conditions. In theory, shipping firms can cooperate to carry out big contracts but Vietnamese firms don’t work that way.

Khuat Van Liem from the Maritime Agency said that Vietnam’s cargo shipping doesn’t develop because the country doesn’t have big ports and big vessels. To transport goods far, big ships are needed. But big ships need big ports.

However, Liem also said that even if Vietnam has these things, its shipping firms have to fiercely compete with foreign shipping companies.

Tran Duc Minh said that Vietnamese shippers should define to develop their crew to not only serve the domestic but also international markets. Many countries that don’t have big quantity of import-export goods but they have big crew of cargo ships like Nigeria and Greece because they exploit foreign markets.

Experts said that Vietnamese shipping firms should focus on sources of cargo in the region, not only in Vietnam. For shipping firms in the north, the biggest source of goods is China’s southwestern region. Goods from this region, if being transported via Vietnam’s Hai Phong port, can cut transport fees by 50 percent, compared with being transported via Guangdong.

In the central region, the trans-Asian road will be the shortest way for goods from Laos, Thailand’s northeastern region and part of Myanmar to Vietnam’s central ports to go to the world. This is the way for a market of 60 million people. Southern ports are the gateway for goods from Cambodia, Thailand and Malaysia to the world.

How to turn Vietnam into a sea power?

Ho Kim Lan, Secretary General of the Vietnam Seaport Association: The maritime sector has three important fields: ports, transportation and services. Vietnam can’t choose cargo shipping as the key to develop its sea economy because foreign shipping firms control over 80 percent of the market. Seaports would be the best choice.

According to Lan, the biggest difficulty for developing seaports in Vietnam is the slow development of transport facilities connected to seaports. Vietnam doesn’t make its seaport development plan based on the growth of the regional cargo market. In addition, there is a big gap between plans and the implementation of these plans.

He suggested implementing the mechanism called “port authorities”. Accordingly, the state will invest in port facilities and the private sector will operate ports. Port authorities will be set up with representatives of local and central state agencies and private investors. The port authorities will be responsible to design and implement port development plans and compete with big foreign ports.

According to Lan, Vietnam needs to develop international transit ports to compete with Hong Kong and Singapore and learn Hong Kong and Singapore’s experience in developing free trade and non-tarrif zones to attract foreign goods to Vietnamese ports. This model is applied at Vung Ang and Ky Ha ports already but it is not effective as expectation because Vietnam still lacks legal corridor for this model. Lan suggested to use this model at the Van Phong port in the future.

Dr. Nguyen Ngoc Hue, vice chief of the Vietnam Maritime Agency, had the same idea with Lan in promoting seaport development as the key to develop the sea economy.

He said that Vietnam is in the world most dynamic maritime area. There are many world leading container ports around Vietnam. Ba Ria-Vung Tau, Hai Phong and Van Phong have potentials to become major ports of the world.

He also agreed that to develop seaports, cooperation between the state and the private sector is crucial. After having modern ports, Vietnam needs a good management mechanism for ports and set up the so-called “port authorities” like other countries. However, this task needs to be carried out in a strict roadmap.

PV