The World Bank's International Finance Corporation and Vietnam's Ministry of Justice signed an agreement to improve Vietnam's legal framework and private firms' access to loans. This will help the National Registration Agency of Secured Transactions facilitate management of secured transaction registration and electronic registry systems. Currently, private firms have restricted access to use assets like equipment and receivables as loan collateral. The IFC is also helping Vietnam expand the range of collateral assets and simplify procedures through advisory services.

1. Vietnam News
August 5, 2008
Inter-bank Forex Rate: $1=VND16,492
Banking & Finance:
World Bank Arm to Help Vietnamese Firms Have Greater Access to Loans
The International Finance Corporation, a World Bank arm, and the Vietnamese Ministry
of Justice have just signed an agreement to help improve the legal framework of the local
financial market and access of Vietnamese private firms to loans, Vietnam News Agency
said Tuesday.
Under the agreement, IFC and the Vietnamese ministry will launch the second phase of
the technical assistance valued at $540,000 from Aug this year to next Dec with an aim to
support the National Registration Agency of Secured Transactions (NRAST), the agency
said.
“This project is very important because it helps NRAST facilitate the ministry to manage
secure transaction registration, related legal documents and setting up electronic registry
systems,” Nguyen Thuy Hien, director of NRAST said.
Currently, the lending environment heavily depends on collateral assets, and private firms
are restricted to use their assets like equipment, receivables and inventories as collateral
to borrow loans, the Vietnam News said.
Through the Mekong Private Sector Development Facility (MPDF)’s advising services,
IFC has helped the government to expand the range of assets as collateral and simplify
procedures. (Vietnam News Agency Aug 4, Vietnam News Aug 5 p4)
Vietnam Remains ANZ’s Major Market
The Australia and New Zealand Banking Group (ANZ) still considers Vietnam as a key
market in the region, said Alex Thursby, ANZ's managing director Asia Pacific.
Though Vietnam’s economy is facing difficulties, ANZ keeps confident in long-term
investment opportunities in Vietnam, he said.
The Government of Vietnam may accept a bit slower economic growth in 2008 so that it
can curb inflation quickly, he said.
A nation with crowded population of 86 million has really huge demand for banking
products. At present, only 10% of population has banking accounts and the rate is about
35% in Hanoi and Ho Chi Minh City.

2. ANZ is also optimistic about Vietnam because its government has pledged to boost
economic liberalization, which helped the economy expand 7.5% last year, Alex Thursby
said.
In coming time, ANZ will invest more in installing ATM, opening transaction offices and
providing more products and services in the country. (Vietnam Economic Times Aug 4
p4)
Hanoi Banks See Jul's Deposits Up 1.59% to $23.4 Bln
Hanoi-based credit institutions reportedly raised total deposits of VND375 trillion ($23.4
billion) as the end of July, up 1.59% from late last year and 2.06% from the previous
month, the An Ninh Thu Do newspaper said.
Of the total, deposits from residents rose 6.41%a and mobilized capitals from economic
institutions were down 1.69% from late 2007.
The city's lenders had total outstanding loans of VND228 trillion, growing 19.28%
against the last year end and 0.38% on-month.
Short-term outstanding loans were reported to increase by 17.03% and 0.2% while mid-
and long-term ones were up 22.72% and 0.65%, respectively. (Capital Security Aug 5 p7)
HSBC Okayed to Provide Credit Risk Swap Service
The State Bank of Vietnam has recently approved the Hanoi- and HCM City-based
branches of the Hong Kong and Shanghai Banking Corporation (HSBC) Vietnam to
continue providing credit risk swap service on a trial basis, state media reported.
Customers of this service will be expanded to enterprises and investment funds
established under Vietnamese laws, the newswire www.vietstock.com.vn said.
The SBV governor has also agreed on HSBC Vietnam's supply of credit risk swap
service to bonds and valuable papers issued in Vietnam to customers who are enterprises,
investment funds. (www.vietstock.com.vn Aug 4)
Vietnam Detects Nearly $100 Mln Tax Frauds in H1
Vietnam’s General Department of Taxation (GDT) said it has inspected tax and prices at
27,408 businesses in the first six months and detected VND1.58 trillion of tax frauds, the
state-run Lao Dong (Labor) newspaper said.
The department has recollected more than VND1 trillion of tax arrears, settled tax debts
worth VND43 billion and fined violations worth VND89 billion.

3. The GDT has recently signed an agreement with the International Financial Corporation
(IFC) to streamline taxation procedures for small and medium enterprises (SMEs) in
Vietnam. (Labor Aug5 p3)
Trade:
DOC Releases Preliminary Verdict on Vietnam Uncovered Springs
The U.S. Department of Commerce (DOC) July 31 announced preliminary determination
on the anti-dumping case against innerspring units imported from Vietnam, China and
South Africa, state media reported.
DOC said producers and exporters from the three nations have sold uncovered springs
into the U.S. market with prices lower than normal value with dumping bands of
116.31% (Vietnam), 118.17%-234.51% (China) and 121.39% (South Africa).
The dumping bands for Vietnam and South Africa are determined on the basis of adverse
facts available as exporters from the two countries have not met DOC’s requirements on
providing information.
A final decision on the case will be released by DOC this October.
DOC officially launched an anti-dumping investigation into uncovered springs imported
from the three countries on January 28.
Eleven Vietnamese businesses, mostly in the southern region, are accused of dumping
uncovered innerspring units in the foreign market.
In 2006, the U.S. imported an estimated $1.6 million worth of innersprings from
Vietnam.
The U.S. side used to accuse Vietnam of dumping tra and basa catfish to the foreign
market. Vietnam lost the two cases. (Labor Online Aug 5)
Vietnam Doubles Tax on Steel Exports to 20%
Vietnam’s Ministry of Finance has decided to raise tax on steel exports to 20% from the
current 10% in order to prevent re-exports, state media reported.
The new tariff, which applies to non-alloy steel, will officially take effect from August
10, the ministry said.
Earlier in late June, the ministry increased export duty on the product to 10% from 2%.
In early July, the Vietnam Steel Corporation proposed raising the tax to 30% from 10% in
a bid to limit exports of steel ingots.

4. Vietnamese steel enterprises in May began importing and re-exporting steel products due
to a sharp drop on domestic demand.
“We are forced to export and re-export steel products as we can not sell on the domestic
market,” steel companies said, adding the government’s lowering of the targeted growth
rate as part of the anti-inflation campaign has resulted in the delay of many construction
projects.
According to Pham Chi Cuong, chairman of the Vietnam Steel Association (VSA),
Vietnam has exported $1.17 billion worth of steel products so far this year, including
$720 million from export and re-export of steel ingots and hot rolled steel.
VSA last month asked for government permission to allow members to raise steel
product prices in line with the increasing cost of steel ingots.
The association, representing more than 20 leading steelmakers in Vietnam, said prices of
finished steel products should be raised to match regional and world levels to minimize
losses.
VSA said its members sold only 26,000 tons of finished steel last month, 60,000 tons less
than a month earlier.
According to association, Vietnam will need four million tons of ingots this year.
Domestic producers are forecast to supply only 50% of this amount, with the remaining
coming from imports. (Vietnam Economic Times Aug 5 p2, The People Aug 5 p7, Labor
Aug 5 p3, New Hanoi Aug 5 p2, HCMC Law Aug 5 p11, VNS Aug 5 p16)
Vietnam Launches Automatic Import Licensing to Curb Trade Deficit
The Vietnamese Ministry of Industry and Trade officially applied automatic import
licensing on a number of goods from August 1 in an effort to limit the country’s soaring
trade deficit, local media reported today [August 5].
Under the ministry’s Decision 24/2008/QD-BCT, which will expire after December 31,
2008, the targeted goods include vegetables, coffee, tea and spices, fat and vegetable oil,
meat and fish products, sugar and confectionary, cereal and milk products, and drinks and
alcohols.
Automobiles, scooters, mobile phones, perfumes and cosmetics, plastics and plastic
products, rubber and rubber products, garments and knitwear, porcelain, pottery and glass
products, electric generators and equipment, watches, interior decorations, toys and sport
equipment are also subject to the new decision.
Eligible dossiers of application will be licensed automatically within 10 working days
after the ministry gets the valid dossier sets.

5. According to the General Statistics Office (GSO), Vietnam spent $51.88 billion on goods
import in January-July, up 56.8% on-year.
The country’s trade deficit of $15.01 billion during the seven months, up 2.67 times on-
year.
The ministry is targeting to keep monthly trade deficit under $1 billion in the second half
of this year in order to realize the target of reducing the year’s import value to $80.2
billion in line with the Government’s requirement, $4.8 billion lower than initially
planned, said Deputy Minister Bui Xuan Khu.
If the goal is realized, Vietnam’s trade deficit this year is expected to stand at $20 billion,
equaling to around 30% of the export revenue. (Vietnam & World Economy Aug 5 p8,
Vietnam Economic Times Aug 5 p2, Liberation Saigon Aug 5 p1, VNA Aug 4, GSO Jul
2008, Vietpan)
Vietnam Issue Border Markets’ Operation Regulations
The Vietnamese Ministry of Industry and Trade has recently promulgated regulations on
operation of markets near the country’s borderlines, at border gates and in border gate
economic zones, said Minister Vu Huy Hoang.
Under the regulations, eligible merchandisers consist of Vietnamese citizens living in
border areas and citizens from neighboring countries with valid border passes as well as
businesses of Vietnam and neighbors.
All of the eligible traders have to ink contracts with the market managing boards to rent
booths and kiosks, said the regulations, adding that the local departments of industry and
trade or agencies empowered by the departments are responsible for granting licenses for
foreign traders.
For markets in border gate economic zones, the zones’ managing boards will grant the
licenses.
The ministry also regulated that traders at border markets must abide by Vietnam’s tax
regulations including those on value-added tax, corporate tax, and special consumption
tax.
Vietnam has set a target of fetching between $42 billion and $43 billion from goods and
services import and export via border economic zones in 2020, said the government.
The country will have 30 border economic zones in localities bordering with Laos,
Cambodia and China by 2020, including seven newly-established ones. (VNA Aug 4,
Vietpan, Vietnam & World Economy Aug 5 p8)

6. Industry:
Vietnam: Commercial Power Output Reaches 37.93 Bln kWh in Jan-Jul
Vietnam’s commercial electricity output reportedly reached over 37.93 billion kWh of
electricity in the first seven months of this year, up 15.8% on-year, the state-owned
Electricity of Vietnam Group (EVN) said.
Meanwhile, the country produced a total 42.76 billion kWh of power in the period, up
13% from a year ago, EVN added.
Though power shortage is forecast to be partly eased in early August, it still remains
severe due to high electricity demand-triggered hot weather, sluggish operations of Ca
Mau 1 and Ca Mau 2 power plants and unstable operation of Uong Bi expanded power
plant, EVN stressed, elaborating that the country’s power system incurs a capacity
shortage of between 30%-35%.
To cope with the situation, EVN has encouraged individuals and institutions nationwide
to continue implementing power-saving measures.
The country is forecast to face a power shortfall of 8.6 billion kWh of electricity this year
and the figure will climb to 36 billion kWh in 2020 and 120 billion kWh in 2030. (Saigon
Liberation Aug 5 p1)
Vietnam Central Province Licenses $130-Mln Cement Project
Authorities in central Thua Thien-Hue province have licensed Vietnam Luks Cement Ltd.
to build Luks cement factory - the fifth production line in the locality, the Tuoi Tre
newspaper reported.
The project will be carried out with total investment of $130 million, the newspaper said.
When operational, the facility will have a capacity of 5,000 tons of clinker a day.
The factory will be built in Huong Tra district’s Huong Van commune. (Youth Aug 5 p2)
Agriculture:
Denmark Funds $1.7 Mln to Help Vietnam Develop Agriculture
The Danish International Development Agency (DANIDA) has granted $1.7 million to a
project to help ethnic minorities in six northern provinces implement agricultural
production in the 2006-2010 period, heard a meeting Aug 4 held in Hanoi to review its
progress.
The project, which was carried out in Hoa Binh, Son La, Lai Chau, Dien Bien, Nghe An
and Ha Tinh provinces, has helped 8,490 farmers master Integrated Pet Management

7. (IPM) techniques in maize and vegetable growing, and proper use of fertilizer and
pesticide to reduce costs and ensure environment after two-year implementation.
Addressing the event, Vice President of the Vietnam Farmers' Association (VFA), Ha
Phuc Mich, said the project has initially improved ethnic people's awareness of
sustainable agricultural development.
The VFA, the Agricultural Development Denmark Asia (ADDA), and the DANIDA
organized the meeting. (Vietnam & World Economy Aug 5 p1+9, VNA)
Vietnam Becomes Russia’s 4th Biggest Seafood Exporter
Vietnam has become the 4th biggest seafood exporter to Russia with its seafood gaining
firmer foothold in the Russia market, according to the Vietnam Association of Seafood
Exporters and Producers (VASEP).
Biggest seafood exporters to Russia included Norway, China and Denmark, VASEP said.
According to Russian Customs Department, the country imported $1.7 billion worth of
seafood in 2007, up 44% from previous year.
Of the total, Vietnam exported around $113.8 million, some $1 million lower than
Denmark.
Vietnam has fetched up to $90 million from seafood exports to Russia in the first six
months of 2008, up 35% on year.
According to VASEP, besides the authorized agencies’ efforts to remove difficulties for
producers and exporters, the signing of a cooperation agreement between VASEP and the
Russian Association of Seafood Traders and Processors has also helped boost results.
Under the agreement, Vietnam and Russia cooperate in controlling and supervising
product quality based on international standards, assist their businesses in making direct
contracts, and update a list of Russian importers that wish to contract with Vietnamese
exporters.
So far Russia has recognized 38 Vietnamese seafood exporters. (Vietnam Economic
Times Aug 5 p4)
Vietnam Agriculture Min Urges Provinces to Contain Diseases on Paddy
The Ministry of Agriculture and Rural Development has asked provinces nationwide to
focus on fighting diseases on paddy during August, especially brown plant hoppers and
rice stunt-leaf diseases, the Saigon Liberation newspaper reported.

8. Accordingly, Mekong Delta provinces will focus on destroying brown plant hoppers,
which have crunched out 253,150 hectares of summer-autumn paddy, and rice leaf folder,
which have damaged 71,240 hectares.
Meanwhile, northern provinces, central and central highlands will give priority to curbing
rice blast disease, rice grassy stunt disease, and rice leaf folder.
The ministry also asked relevant bodies to tighten control over trading, quality and prices
of pesticide at domestic markets where the diseases are booming.
Prime Minister Nguyen Tan Dung has asked Ministry of Agriculture and Rural
Development to provide 28 tons of Aperlaur 100WP and 17 tons of Bassa 50 EC from
national reserve to help localities speed up constraining the diseases.
As of August 3, farmers in Mekong Delta provinces harvested more than 960,000
hectares of summer-autumn paddy, with average output of 5 tons per hectare. (Saigon
Liberation Aug 4 p3, Vietnam Economic Times Aug 5 p2)
Southern Vietnam Striving to Boost Fruit Exports
Experts and farmers in southern Vietnam, the country’s fruit basket, are seeking ways to
boost fruit production and exports, the Saigon Liberation newspaper reported.
At recent workshop discussing fruit production and consumption in the region, the
experts said southern region now has more than 460,000 hectares of fruit, with total
output of four million tons yearly, and accounting for 59% of the country’s total fruit
area.
The region is home to a number of specialty fruits with high economic value such as Hoa
Loc sweet mango, Cai Mon durian, Lo Ren star apple, and Nam Roi pomelo, but its
export revenues are still modest.
In the first five months of this year, southern provinces exported only $158,000 worth of
fruits
The region set target to expand its fruit orchard area to 540,000 hectares, with total output
of 6.5 million tons, including 280,000 tons for export.
The Plantation Department under Ministry of Agriculture and Rural Development said to
meet the target, the region should boost technological transfer and set up standards for
each kind of fruits.
In addition, yield and quality need to be protected and farmer-oriented handling,
processing and marketing techniques for fruit products need to be developed. (Saigon
Liberation Aug 4 p3)

9. Only 3.6% Of Poultry, Animal Abattoirs Meet Hygienic Standards
Only 617 poultry and animal abattoirs, or 3.6%, out of total 17,129 in Vietnam meet food
safety and hygiene standards, the Vietnam Economic Times reported.
The Animal Health Department targeted to set up abattoir system in almost all of cities
and provinces nationwide in 2008, and to control safety and hygiene of 70% of
slaughtered poultry and animal before being consumed.
To date only 13 out of 63 provinces have set up centralized poultry and animal abattoirs,
and rate of controlled poultry and animal is only 42.51%.
According to the Capital Security, 100% of abattoirs in Hanoi are slaughtering poultry
and animal according to traditional method, failing to ensure food safety and hygiene
while causing environment pollution.
Hanoi service of Agriculture and Rural Development said more than 3,000 pigs are
slaughtered in the city daily, but only 1,000 of which, or more than 40%, are done by four
centralized abattoirs, while the remainder, accounting for more than 50%, are done at
private abattoirs.
The service said Hanoi consumes more than 300 tons of poultry and animal meat daily,
but the city’s supply can meet only 40%. (Vietnam Economic Times Aug 5 p2)
Business:
Supermarkets in HCM City Slash Consumer Prices
A number of supermarkets in Ho Chi Minh City are reducing prices of consumer goods,
pinning hopes for a slowdown of inflation, the state-run Nhan Dan (The People)
newspaper said.
Co.opMart with a chain of 19 supermarkets has decided to slash by 10%-15% prices of
300 goods items from August 1 to 15.
Thanks to good inventories, Co.opMart is cooperating with other supermarket chains to
launch an annual promotion program in Sept in which it will reduce prices of thousands
of items, including foodstuffs, technology products and garments.
Citimart, another big supermarket chain, also is cutting 10%-30% prices of 100
commodity items.
At the chains of Big C, prices of notebooks, stationeries, children uniforms and other
products fall between 10% and 25%.
Ho Chi Minh City said its consumer price index rose slowly by 0.54% on month in July,
lower than the 2.37% increase in June. (The People Aug 5 p1)

10. Vietnam Mobile Phone Service Providers in Race to Reduce Charges
Major mobile phone service providers in Vietnam, including Viettel, MobiFone,
VinaPhone are in the race to attract customers by reducing call charges from August 1,
state media has said.
MobiFone and VinaPhone have reduced monthly charges for post-paid subscribers by
8.3% and halved call charges during off-peak hours (from 23hrs to 6 hrs the next day and
on holidays and Sundays).
Notably, MobiFone is carrying out a program to install more than 2,500 base
transmission stations to boost their numbers to 8,000 nationwide, in a bid to improve
connecting quality, MobiFone’s Charge and Marketing Section Director Dinh Viet Hung
said.
Mobiphone, which currently has 13.4 million users, has been recognized the best
provider of mobile services in Vietnam.
Meanwhile, Vinaphone has offered new post-paid packages for businesses, organizations
and families.
Military-run Viettel is also joining in the race to win subscribers. The country’s largest
mobile operator, with 19.5 million subscribers, is dropping its international call costs by
60%, from VND8,000 per minute to VND3,600. [$1=VND16,400]
However, telecom experts warn that mobile phone service providers should invest more
in improving the quality of services, which is a key point to attracting customers.
Vietnam, which is now home to around 58 million phone subscribers has seven mobile
operators in Vietnam—MobiFone, VinaPhone, Viettel, S-Fone, HT Mobile, EVN
Telecom, and new entrant GTel. (Vietnam & World Economy Aug 5 p17, VNA Aug 4)
Spain to Grant EUR540,560 to Help SMEs in Agriculture
The Spanish Agency for Development Cooperation (AECI) will provide a non-refundable
aid of EUR540,560 ($841,870) for the second phase of a project on building policies to
help Vietnam develop small-and-medium enterprises (SMEs) in the agricultural sector,
the Sai Gon Giai Phong newspaper said Tuesday.
Deputy Prime Minister Pham Gia Khiem Aug 4 signed a document to enact Prime
Minister Nguyen Tan Dung's decision to approve the project, the paper said.
Vietnam will also provide capital for the project through the Institute for Agricultural
Development Policies and Strategies under the Ministry of Agriculture and Rural
Development. (Saigon Liberation Aug 5 p1, Thanh Nien Daily p2, VNA, The People p7)

11. Foreign Investment:
Korean Firm Licensed for $481.7 Mln Resort in Central Vietnam
South Korea-based D&C South Asia Company has just received an investment license
from central Thua Thien-Hue province’s authority to build a resort worth VND8.1 trillion
($481.74 million) in the province, state media reported Tuesday.
The South Asia Lang Co-Hue-Vietnam Resort Complex will be located on a 317-hectare
site at Chan May-Lang Co Economic Zone.
The complex will house an international-standard 18-hole golf course, an entertainment
and cultural area, nine hotels and more than 1,000 villas.
The company is scheduled to begin the first stage worth $118.5 million in January 2009
and put it into operation in December 2010. The entire project will be built in four phases
until 2016.
The Chan May-Lang Co Economic Zone in central Thua Thien-Hue province has to date
attracted 30 investment projects totaling VND27.47 trillion ($1.66 billion) as of mid-July
this year, according to Vietnam News Agency.
The zone, 70 kilometers southwest of Hue city, has a natural area of 27,108 hectares,
covering Lang Co town and three communes of Loc Thuy, Loc Tien and Loc Vinh of
Phu Loc district with a population of 41,000. (Young People Aug 5 p2, Vietnam News
Agency Aug 5, Vietpan Database)
Tourism:
Vietnam Pours $1.87 Mln into Tourism Development in 2008
The Government of Vietnam has decided to invest VND30 billion ($1.87 million) in
tourism development this year in an effort to fulfill the whole year target of welcoming
five million international tourist arrivals, the Lao Dong newspaper reported Tuesday.
The money will focus on tourism promotion in major European markets which have seen
strong drops in recent times, according to the Vietnam National Administration of
Tourism.
Other details of the tourism development plan have not been made available at the
moment.
Vietnam welcomed more than 2.7 million international tourist arrivals in the first seven
months of 2008, up 8.6% on year.
The sun warm Southeastern Asian nation notably earned VND37 trillion ($2.3 billion) in
revenues in the first half of 2008.

12. Vietnam is looking to total revenue of VND56 trillion, or $3.5 billion this year.
The tourism sector now contributes 8% to Vietnam’s national GDP. (Labor Aug 5 p3)
Vietnam Tourism Cities Attracting Realty Investors
Vietnam’s famous tourism cities are attracting a large influx of domestic and foreign
investors due to growing demand for high-end resorts, according to real estate experts.
The central coastal city of Nha Trang in Khanh Hoa province is now home to many
luxury tourism projects such as Phu Quy tourist zone, Nha Trang Diamond resort and
Diamond Bay which are under construction.
General Director of Sofitel Vinpearl Resort and Spa Michael Brabsche’, said that the
company will continue to build the Hon Tre Isle in the province in the coming months,
with plans for a restaurant, a 10,000-square meter spa resort and an entertainment area
with a golf course and high-grade villas.
Meanwhile, the increasing demand of high-grade of resorts has also been seen in Danang,
Phan Thiet, Vung Tau and Ha Long.
In the southern coastal province of Ba Ria-Vung Tau, Construction Joint Stock Company
No. 1 (Cofico) is offering villas in the Sanctuary area starting at $580,000 a unit.
In central Danang city, Kingdom Hotel Investment Group is selling the Raffles Resort
project with 140 hotel rooms and 138 apartments at prices ranging from $4,200 to
$10,000 per square meter.
Local Thien Hai Company has received an investment license from central Binh Thuan
province’s authority to implement a tourism project costing $100 million at Long Son
quarter in Mui Ne of Phan Thiet City.
Richard Leech, director of CB Richard Ellis, said many investors from Thailand and
Indonesia are eyeing apartment and villas projects in Vietnam.
The Ministry of Planning and Investment said that Vietnam reported over $45 billion in
pledged foreign direct investment in the seven months this year, including $4 billion in
tourism property sector in Jan-Jun.
The Southeast Asian country expects to welcome some 6 million foreign visitors and 25
million domestic tourists by 2010. (Vietnam News Aug 5 p17)
Politics & Law:
Iran Sees Vietnam Growing Prestige in Asean Bloc-Diplomat Says

13. Iran seas the growing role and prestige of Vietnam in the Asean bloc with rapid economic
growth rates in recent years, heightened status on international arena as it becomes the
non-permanent member of the United Nations Security Council, and holds a seat at NAM
organization, an Iranian senior diplomat said.
Director of the East Asia-Pacific Department of Iranian Ministry’s Foreign Affairs
Namatollah Ezadi made his remark on the occasion of the bilateral 35th-year diplomatic
ties Aug 4 in Iran.
Speaking at the ceremony, Deputy Minister of Transport Mohammad Bokharai
reaffirmed that Iran is willing to help transport Vietnamese goods to other countries in the
Middle East, Central Asia and Asean.
Iranian Ambassador to Vietnam, Seyed Javad Ghavam Shahidi said that Iran is closely
following achievements by Vietnam in the doi moi (renewal) process.
In return, Chairman of the Vietnam Friendship Confederation Tran Trong Khanh
reviewed the bilateral friendship ties and hailed the establishment of the Iran-Vietnam
Friendship Association for its contributions.
In 1994, Vietnam and Iran set up an inter-governmental committee on the trade area, and
the two countries signed a memorandum of understanding on expanding and diversifying
the economic and trade cooperation.
The bilateral trade reached $80 million in 2007, up from $30 million in 2003. (Vietnam
News Agency Aug 4)
Vietnam Attends ASEAN Defense Chiefs’ Meeting
A Vietnamese delegation led by Chief of General Staff of the Vietnam People’s Army,
Senior Lieutenant- General Nguyen Khac Nghien attended the sixth ASEAN Chiefs of
Defense Forces Informal Meeting (ACDFIM-6) held in Thailand’s Bangkok from July 31
to August 3.
The working trip was made at the invitation of the Supreme Commander of the Thai
Royal Army, General Boonsrang Niumpradit.
This year’s meeting focused its discussion on the implementation of mechanism on
addressing security challenges, boosting defense cooperation among member countries of
the bloc.
Next year, the ACDFIM-7 will take place in Vietnam.
On the sidelines of the event, the Vietnamese delegation head had bilateral meetings with
the chiefs of defense forces of Malaysia, the Philippines and Indonesia.

14. Nghien and his entourage paid a courtesy visit to Thai Premier-cum-Defense Minister
Samak Sundaravej. (Saigon Liberation Aug 5 p1, News p6)
Health & Environment:
Vietnam Detects 1,000 Cases of Inborn Metabolism Disorders Annually
Vietnam, the world’s 13th most populous country with over 86.5 million people,
identifies around 1,000 children contracting innate amino acid metabolism disorders
yearly, according to a national conference on the disease held in Hanoi August 4.
A survey conducted by Hanoi-based Central Pediatrics Hospital on 415 children with the
disease-suspected symptoms from 2005 to June this year showed that 11.9% of the total
was affected by the disease.
Of the patients, 74% suffered from disorders of organic substances, 18% and 8% with
acid amine and lipid disorders, respectively.
Most of children suffering from the disease die when they are less than 12 months old,
said Dr Liem, Director of the hospital, adding that the disease’s death rate is still high at
48%. (Pioneer Aug 5 p4, Capital Security Aug 5 p2, The People Aug 5 p7)
Tropical Low Pressure at East Sea May Develop into Storm
A tropical low pressure Aug 4 was identified in the sea north of Luzon Island in the
Philippines, the Tin Tuc newspaper said, citing Vietnam's National Center for
Hydrometeorological Forecasting (NCHMF) said Tuesday.
This is the fifth tropical low pressure at the East Sea since the beginning of this year, the
NCHMF said, adding that it is forecast to move west-north-westward at 10-15 kilometers
per hour and may turn into a storm.
The area close to the tropical low pressure system, in the northeastern are of the East Sea,
will confront strong wind measuring seven or eight on the Beaufort scale (50 to 61
kilometers per hour), the center noted.
Meanwhile, the Se San, Serepok, Dong Nai, Ba, and Pmore Rivers in the country have
been facing flood after heavy rains in the past three days.
The Central Steering Committee for Flood instructed provincial authorities to map out
measures to cope with the tropical low pressure. (News Aug 5 p3, Thanh Nien Daily p2)
Culture & Society:
Vietnam PM Urges Third-child Birthrate Reduction
The Vietnamese prime minister has asked provinces and cities nationwide to continue
efforts to reduce birth rates and the third-child birthrate and over in order to reach the set

15. target of the population development of 1.14% and the population scale of 88-89 million
in 2010.
The move is in wake of the reportedly growing birth rates in 39 provinces and cities,
posing a threat of population boom.
The government leader has also requested the Ministry of Health to coordinate with
relevant ministries to form an overall plan on improving the country’s population quality
and submit it to the government this December.
Additionally, the ministry was asked to join hands with others to build Vietnam
Population Strategy for the 2011-2020 period.
Currently, Vietnam is the world’s 13th most populous country with 86.5 million people.
Vietnam reports the world’s highest population density at 252 residents/km2 in
comparison with the world average of 35-40, welcoming over one million newborns each
year. (Pioneer Aug 5 p2, Vietpan)
Vietnam Police Raze out Transnational Weapon Smuggling Ring-Thanh Nien
Police in southern Vietnam have recently busted a transnational weapon smuggling ring
and arrested an overseas Vietnam, Hung Viet Kieu, born in 1981, on charge of smuggling
weapons from Cambodia, the state-run Thanh Nien (Young People) newspaper said
Tuesday.
Using guns and any weapons are illegal and prohibited in Vietnam.
Police forces in southern An Giang and Can Tho provinces issued an urgent arrest order
against Hung for involvement in the ring.
Earlier, the local police captured Nguyen Thi Xuan Tram, a massage servicewoman, born
in 1987, on the way to circulating two guns, labeled K59, 15 bullets, and two electric
rods, the paper said.
Tran admitted that Hung hired her to buy those weapons from Cambodia to clear another
gang in Can Tho city.
Violence cases involved in using weapons and guns are on the rise recently, state media
said. (Young People Aug 5 p4)
Northern Police Uncover Nearly 4,000 Criminal Cases
Police forces in northern provinces and cities investigated 1,641 criminal cases, razed out
297 gangs in the two rush months of struggling against crimes, heard at a conference held
August 4 by the Police Ministry.

16. Participants were told acts of criminal gangs are more and more complicated, with the
increase of cheats, illegal usage of weapons as well as violence cases against police in
localities.
Over the past two months, the security forces uncovered 475 football betting cases, 118
prostitution rings, and detected 325 economic wrongdoings and corruptions.
They also exposed up to 1,387 drug trafficking and trading cases, revoking 7.4 kilos of
heroin and over 12,000 ecstasies. (The People Aug 5 p7, Pioneer p11)
Stock Market:
Thailand’s Seamicro Plans to Set up Securities Joint Venture in Vietnam
Thai securities brokerage Seamicro is planning to form a joint venture with a Vietnamese
partner in order to expand its business to Indochina region, Vietnamese state media said
Tuesday.
Chaipatr Srivisavra, CEO of Seamicro, said his company will seek a partner which “must
be financially strong and have investments in good assets
Seamicro is negotiating with Vietnamese brokerages and eyeing to buy a 50% stake in a
company from now to the end of this year, he said.
"Despite the sharp declines in share prices in the Vietnamese market, we still see strong
growth opportunities in Vietnam," he said.
Seamicro shares advanced more than 4% at the end of June, while brokerage operations
account for around 70% of its total revenues. (Capital Securities Aug 5 p2, People’s
Army Aug 5 p8)
VinaCapital Pins High Hope on Vietnam Stock Market
Vinacapital's Vietnam Opportunity Fund (VOF) Deputy Managing Director Nguyen Viet
Cuong said Vietnam's stock market is now offering good opportunity for investors to
build up a medium and long-term solid investment portfolio.
The market now is attractive compared to last year, with average P/E ratio of 11 and
listed companies still exposing impressive business results in the first half.
We still remain positive on the medium and long-term prospects of Vietnam's economy,
he said.
"As an individual investor, I think the government's current policies have had a positive
impact on the economy and there have been good signs with the macro-economic indexes
in June and July" Cuong said.

17. The stock market will remain stable from now to the end of this year, before resuming
upward growth in the coming two years, the Young People newspaper said citing Nguyen
Viet Cuong.
Cuong suggested that stock investors should pour money in blue-chip companies with a
strong competency in their sectors and which are able to overcome difficulties this year.
Foreign investors remained the net buyers last week, pumping VND223 billion ($13.5
million) into the market. (Young People Aug 5)
Vietnam Leading Jewelry Firm to List 30 Mln Shares on HOSE
Phu Nhuan Jewelry Joint Stock Company (PNJ), the leading jewelry retail company in
Vietnam, has submitted its proposal to Ho Chi Minh City Stock Exchange to list 30
million shares, the stock exchange said Tuesday.
PNJ, which has a registered capital of VND300 billion and specializes in gemstones,
diamond, gold, silver and other jewelries, is seeking approval to list those shares with par
value of VND10,000 with the advisor-the Dong A Securities Firm, the exchange said.
In the first half this year, PNJ reported a pretax profit of VND69.1 billion, up 17% on
year and it targets VND150 billion this year. The HCM City-based gold trader is
expected to increase export revenues by 50% by expanding operations in three foreign
markets including Denmark, Belgium and France.
Last year, PNJ reported revenues of VND2.233 trillion and pretax profit of VND129.3
billion.
This year, PNJ is expected to raise its registered capital to VND825 billion from current
VND300 billion by issuing bonus shares to its existing shareholders, ATPvietnam, a
newswire said.
The jewelry firm now boasts a strong network with two jewelry factories, 13 branches, 85
retail shops, and 3,000 wholesale customers nationwide. (ATPvietnam Aug 4, Vietpan
Database)
Aug 5: Vietnam Shares Tumble on Higher Cost Concerns
Vietnam's shares ended lower Tuesday on local selling on concerns that companies will
face higher operational costs as local prices of goods and services are surging across the
country, following the gasoline price hike three weeks ago.
“Profitability of listed companies will be lower in the third and fourth quarter because
they will deal with surging input prices, driven by fuel prices,” a player with Kim Long
Securities said.

18. Inflation is still a major concern, which is hurting investor sentiment, he said, adding that
buying interest will remain weak this week.
VN-Index today fell 9.15 points, or 2.08%, at 430.26.
Market volume totaled 9.9 million shares valued at VND400.7 billion Tuesday, down
from 11.5 million shares valued at VND461.9 billion Monday.
HPG, today’s most active stock, dropped 1.8% at VND54,500 on 1.2 million shares, of
which foreign investors bought 491,150 shares and sold 4,560 shares.
DPM, the second most active stock, shed 2.7% at VND55,000. Of total 838,520 shares,
foreign players bought 255,310 shares and sold 48,790 shares.
PVT dropped 2% at VND14,500 after trading 423,420 shares changing hands.
FPT lost 3% to close at VND65,000 on 216,280 shares, with foreign investors buying
109,870 shares and selling 9,490 shares.
In the downside, BMC surged 2.7% at VND94,500 with 285,730 shares, of which
foreigners bought 58,680 shares and sold 111,870 shares.
SHC jumped up 3% at VND34,400 on 142,870 shares.
In total, 27 stocks closed higher, 117 lower, 10 unchanged and two untraded.
All four fund certificates one closed lower. (HOSE Aug 5)
Vietnam News
August 4, 2008
Inter-bank Forex Rate: $1=VND16,494
Banking & Finance:
US Dollar to Depreciate 2% Against Vietnam Dong by Late 2008
The U.S dollar is expected to depreciate less than 2% against Vietnam dong by the end of
2008 as supply and supply of the greenback have become balanced, the Lao Dong
Newspaper reported Monday.
Price of the dollar had surged after the government increased gasoline retail prices, but it
then dropped fast.
In early last week (July 28), local banks sold a dollar at VND16,826. At the end of the
week, the greenback was sold at between VND16,780 and VND16,760.

19. In the free market, price of a dollar fell from VNDVND16,830 in early last week to
VND16,755 in the weekend. This is the second times over the half past month the
exchange rate in the black market was lower than in the banking market.
Experts said the supply of USD will be profuse by the end of 2008, with trade deficit
slowing and FDI soaring. The registered FDI capital hit $45 billion in the first seven
months, equivalent to 50% of total FDI over the past 20 years.
The disbursed FDI reached $7 billion by the end of July and is expected to increase
further in the remaining months, which will help offset trade deficit.
Plentiful sources of overseas remittance are expected to be sent to Vietnam in the end of
the year, also helping stabilize local forex market. (Labor Aug 4)
Trade:
Vietnam PM to Clamp Down Any Goods Prices Hikes, Hoarding
Vietnamese Prime Minister Nguyen Tan Dung in an urgent dispatch Aug 3 demanded
hard-lining any consumer prices hikes and hoarding as well as speculations in order to
curb inflation, the government of Vietnam said on its Web site.
PM Nguyen requested provincial and municipal authorities to tighten patrol and
scrutinizing prices of essential goods such as taxi charges, fertilizer, milk, medicines…by
adopting serious fines even revoking business licenses or even start probes into.
Mr Nguyen also asked the Ministries of Finance, Industry and Trade, Agriculture, Health
to send taskforces to inspect prices of the mentioned items in Hanoi and Ho Chi Minh
Cities. (Government’s Web site Aug 3)
Vietnam Leads in Apparel Retail: Indian Media
Vietnam tops the list of the most lucrative apparel retail destinations, the place India was
five years ago, the Economic Times (India) said.
“Ready to take off, Vietnam could challenge India’s dominant position,” the newspaper
said, adding Vietnam burst on to the textile scene about five years ago with low wages
and a strong consumer market receptive to global brands.
On export front, cost competitiveness has given Vietnam an advantage over India, it said,
citing Secretary General of Confederation of Indian Textile Industry D K Nair as saying
that textile manufacturers are shifting base to the Southeast Asian country due to lower
production costs.

20. Vietnam’s young population has increased consumer spending by more than 75%
between 2000 and 2007, and is now attracting global brands to set shops there, the
newspaper added.
The Southeast Asian nation’s apparel exports topped $5.09 billion in the first seven
months, up 20.5% on-year and are expected to be $9.5 billion for the full year. (VNA
Aug 4)
Eighth Thai Products Exhibition to Open in Hanoi This Week
The Thai Ministry of Trade and the Vietnam National Trade Fair and Advertising
Company (Vinexad) will co-organize the eighth Thai Products Exhibition at the Hanoi
Friendship Culture Palace from August 7 to 10, local media reported.
Around 100 enterprises from Thailand and their sale agents in Vietnam will showcase
their products at the annual event, which is part of the trade promotion program between
Vietnam and Thailand, said the organizers.
The exhibition with 150 booths will feature a wide range of goods from machinery,
industrial, electric and electronic products, auto, motorbike and bicycle spare parts, fruits,
food, drinks, cosmetics, medical products, stationeries, products for children, jewellery to
handicraft items.
A Thai art troupe and a delegation from the Tourism Authority of Thailand are expected
to participate in the event to promote tourism cooperation and cultural ties between the
two countries.
Two-way trade turnover between Vietnam and Thailand reached close to $5 billion last
year and is expected to double by 2010. (Vietnam & World Economy Aug 4 p4, VNA
Aug 3)
Auto Prices Surge $100-2,000/Unit in Vietnam
Foreign-invested automobile assemblers in Vietnam have decided to raise retail prices of
new cars by $100-$2,000 per unit from early August due to import tariff hikes of
10%-15% by local government on auto spare parts, the Tuoi Tre newspaper reported.
The increase was also attributed to the recently fluctuating VND/USD exchange rate and
the rising prices of material input such as steel and plastics, which have sent prices of a
set of auto spare parts up by 10%, the paper said.
Toyota Vietnam, the leading automaker in Vietnam, has announced to increase retail
prices of almost all its products by $100-$1,000 each. The Camry 2.4 and 3.5 saw the
highest rises, up $1,000/unit. Innova went up by $500/unit, and Vios, $100/unit.

21. Honda Vietnam, meanwhile, increased the price of the Civic generations by VND35
million-VND39 million/unit.
Car prices in Vietnam, which are predicted to keep rising soon as import tax will go up
further, are considered among the highest in the world, about 60% higher than Europe
and 30-40% higher than regional countries. (Labor Aug 4 p1, Youth Aug 4 p14, Capital
Security Aug 4 p7)
Industry:
PetroVietnam OKs Setup of Bio-fuel Company
Four affiliates of the state-owned oil monopoly PetroVietnam group have decided to
establish PetroVietnam Bio-fuel Joint Stock Company operating in fields of producing
and distributing bio-fuels, the Vietnam & World Economy newspaper reported.
The founders include PetroVietnam Tourism Service and Services JS Corp (Petrosetco)
with a 51% stake, Vietnam Oil Corporation (PV Oil) with 29%, Binh Son Petrochemical
One-member Limited Company with 15% and PetroVietnam Finance Corporation
(PVFC) with 5%.
Headquartered in Binh Son commune of central Quang Ngai province, with a registered
capital of VND45 billion ($2.72 million), the company will operate in fields of producing
and distributing bio-fuels.
The establishment is the premise for construction of a plant to produce cassava materials-
sourced ethanol that is capable of mixing into petroleum to help the country lessen
dependence on fossil fuels as well as limit environmental pollution.
In Nov last year, the government approved a bio-fuel development project until 2015
with a vision through 2025 to produce different kinds of renewable energy and partly
replace traditional fuels.
As apart of the project, around 250,000 tons of ethanol and vegetable oil will be produced
to meet one percent of the country’s petroleum demand by 2015. (Vietnam & World
Economy Aug 4 p8, Vietnam Economic Times Aug 4 p2)
Vietnam Ministry Holds Seminar on Power Prices Calculating Methods
The electricity-regulating department under the Ministry of Industry and Trade July 31
held a seminar on seeking ways to calculate power generation prices and service power
rates, the Hanoimoi newspaper said.
The department said that since the start of the year, the World Bank, joint venture of
Mercados EMI, the Spanish consulting company of Soluziona and the U.S. legal advising
company of Duane Moris LLP have co-helped carry out a project to build a sample

22. power selling-buying contract and regulations to settle disputes regarding competitive
power generation market.
After the seminar, the department and advisors will complete the methodology to
calculate prices of power generation prices and service prices, which will be applied to
power plants from 2010. (New Hanoi Aug 1 p7, Vietnam & World Report Aug 1 p1+9)
Vietnamese, Mexican Shoe Enterprises Boost Cooperation
Leather shoe producers and exporters from Vietnam and Mexico gathered at a seminar in
Mexico City July 31 to discuss ways to boost bilateral cooperation, Vietnam News
Agency reported.
Participants, including representatives from 14 Vietnamese businesses and 20 local
companies, looked into the possibility of jointly developing material sources in Mexico to
take full advantage of its human resources, technology and tax incentives.
They also aimed to increase Vietnam’s imports and exports of leather and shoes with
Mexico and the North American market as a whole.
Present at the workshop, the first of its kind between the two countries, were Vice
Chairman of the Vietnam Leather and Footwear Association Ngo Dai Quang and
Vietnamese Ambassador to Mexico Pham Van Que.
Manuel Uribe, chairman of the Asia and Oceania Committee of the Mexican Business
Council for Foreign Trade, Investment and Technology (COMCE) and Enrique Miche,
chairman of the COMCE’s Mexico-Vietnam Business Cooperation Committee, also
attended the event.
Leather and footwear is now Vietnam’s third largest forex earner, behind crude oil and
apparel. In the first seven months this year, the country earned an estimated export
turnover of $2.75 billion from the products, up 18.4% on-year. (VNA Aug 4, GSO July
2008)
Steel Imports from China Soar 58.8% On-year in Jan-Jul
Vietnam imported 1.87 million tons of steel from China in the first seven months this
year, increasing by 58.8% on-year, the Thanh Nien Daily reported, quoting the Ministry
of Industry and Trade.
The country’s total steel imports so far this year were 6.4 million tons. Local demand was
around 2.3 million tons, an on-year rise of 4.7% but lower than expected, the newspaper
said.
The ministry forecast the remaining 4.1 million tons would meet demand until early
October.

23. Demand was not as high as expected as building projects were slowing down due to high
input costs and lower state budgets for construction, the ministry said.
But steel importers had rushed to import almost twice the amount as the same period last
year as they expected higher economic growth and greater local demand for steel.
The government’s policies to control inflation, which included slashing state
expenditures in infrastructure and real estate projects, had caused the slump in local steel
demand.
Lower demand resulted in lower local steel prices, the Thanh Nien Daily newspaper
citied Lai Quang Trung, head of Vietnam Steel Corporation’s Export Import Department,
as saying.
However, steel prices worldwide are rising and Vietnamese steel importers re-exported to
gain from the gap.
He said Vietnam exported about $2 billion worth of steel in the first half of this year.
Last month, to discourage steel exports, the ministry applied quotas on steel exports and
the Ministry of Finance had earlier increased tax on steel exports from 2% to 10%.
(Thanh Nien Daily Aug 4 p6)
Agriculture:
Vietnam to Export 400,000 tons of Rice in August
Vietnam will export around 400,000 tons of rice in August, down 50% on year, raising its
total rice export volume in the first nine months of 2008 to 3.5 million tons, the Nhan
Dan (People) newspaper reported.
Currently, export prices of Vietnamese rice are averaging at between $620 and $630 a
ton, down nearly 50% from April this year and some $120 a ton lower than Thais rice.
The Vietnam Food Association (VFA) said the low price of Vietnamese rice is
unreasonable, blaming the price falls on rice export tax, and high lending rate.
The VFA has officially suggested the government remove rice export tax, or increase
floor export rice price to be levied to $800-$900 a ton, instead of initial $600 a ton tax,
and allow local exporting companies to borrow foreign currencies instead of Vietnam
dong to buy paddy from farmers.
VFA said high lending rate in Vietnam dong is preventing local companies from buying
rice for export, adding that with current lending rate, the companies have to pay
additional $12-$15 a ton of exported rice.

24. Meanwhile, local farmers are very worried when they have piled up paddy but failed to
sell it even though paddy prices have dropped sharply to only around VND3,600-4,000 a
kilo.
Truong Thanh Phong, chairman of VFA said if paddy prices decreased to below
VND5,000 a kilo, the government’s target to ensure 30%-40% in profit for farmers is
unreachable.
The Tuoi Tre (Youth) newspaper August 4 cited farmers in Mekong Delta provinces of
Long An, Dong Thap and An Giang as saying that many Cambodian traders have sought
to buy Vietnamese rice to re-sell to Thailand.
Local farmers said Cambodian traders bought Vietnamese paddy at VND5,200-
VND5,300 a kilo, and then sell to Thailand for VND6,000 a kilo. (The People Aug 4 p2,
Saigon Liberation p7, The Youth p14)
U.S. Okays to Import Vietnamese Blue-dragon Fruit
The Animal and Plant Health Inspection Service (APHIS) under the U.S. Department of
Agriculture announced that it started to license importing blue-dragon fruit from Vietnam
from July 30, the Saigon Liberation reported, citing the Vietnam Fruit and Vegetable
Association (Vinafruit).
The Vinafruit said to penetrate into the U.S. market, Vietnamese blue-dragon fruit must
meet a number of food safety and hygiene standards set by the APHIS.
Almost all of Vietnamese blue-dragon fruit exported to the U.S. must be treated with
radio element with minimum volume of 400 gray
Additionally, the APHIS asked Vietnamese fruit to be kept cool during the production
process, and be bar-coded when they are exported to the U.S. They must also be
certificated by the Vietnam Plant Protection Department.
In Vietnam, blue dragon fruit is now mainly grown in central Binh Thuan province on
more than 10,000 hectares, with annual output of 150,000 tons, and Mekong Delta
provinces of Tien Giang and Long An, on 3,000 hectares each, with annual output of
40,000 tons. (Saigon Liberation Aug 1 p1, Vietnam Agriculture Aug 4 p1)
Vietnam to Import Fertilizer until 2020
Vietnam will have to import fertilizer until 2020 as local supply can meet only 50% of
total demand, the Vietnam News Agency reported, citing the Vietnam Fertilizer
Association (FVA).
The FVA said the country will have to import more than 500,000 tons of fertilizer yearly
from now to 2010.

25. It said rocketing prices of fertilizers and materials for fertilizer production at the global
market have affected Vietnam fertilizer market, pushing local fertilizer prices up by 30%
from late 2007.
The Ministry of Industry and Trade said nearly 3,000 fertilizer producing plants in the
country can meet 50% of urea fertilizer demand, and 75% of phosphate demand, while
almost all of DAP, SA, and Kali fertilizers are imports.
The association said prices of phosphate fertilizer rose by 99.6%; organic fertilizer,
30.8%; urea fertilizer, 76%, and NPK, 184%, from early this year, due to thin supplies,
and high import prices.
To ease fertilizer shortage in the coming months, the association has suggested the
government set up long-term urea fertilizer import plan by 2010.
It also called for the government’s priority to phosphate fertilizer production, as well as
NPK and DAP fertilizers.
The Vietnam Chemical General Company (Vinachem) has also urged its affiliates to
speed up fertilizer projects like Dinh Vu DAP fertilizer plant in Hai Phong, and Ninh
Binh fertilizer plant while expanding Ha Bac fertilizer plant and Lao Cai supe phosphate
fertilizer plant. (Vietnam & World Economy Aug 4 p1)
Business:
First Int’l Standard Golf Course Inaugurated in Central Vietnam
Central Vietnam debuted the first golf course of international standard for world golf
tournaments last week [August 1], state media has said.
The 18-hole golf course Montgomerie Links Vietnam covers 70 hectares in Dien Ngoc
commune, Dien Ban district, central Quang Nam province.
Nine holes of the golf course will be used in the first period while the remaining holes
will be put into use in the first quarter of next year.
Apart from the golf course and entertainment services, a modern club and 54 villas have
been built in the surrounding areas.
The project, invested by Indochina Land Management Vietnam Co. Ltd. which belongs
to the Indochina Capital Group, was estimated to cost over $60 million.
Vietnam is currently home to 123 golf courses. Of the figure, southeast region has most
with 27 golf courses, followed by Red River Delta with 25, northern mountainous region
with 11, the Central Highlands with 11, northern central with 7 and southwestern with 6.

26. The country’s rising popularity as a golf destination mirrors similar developments for
Vietnam on the world stage. (VOV, VietNamNet Aug 3)
Vietnam Mulls to Set up Investment Fund for Southern Economic Zone
The Government of Vietnam will consider establishing an investment fund for the
southern key economic region, said Deputy Prime Minister Hoang Trung Hai.
From now till the end of this year, the government will coordinate to develop the
southern key economic zone towards curbing inflation, stabilizing monetary market and
macro economy and ensure social welfare.
The government will regulate industry structure among localities in order to boost
economic development in the whole region, Hai said. (Saigon Liberation Aug 4 p1)
Vietnam Central Province Looks for Investors
The province has issued a list of projects in which it is seeking investments in the areas of
agriculture, fisheries, industry, tourism, and construction, said Vu Hoang Ha, chairman of
the provincial People’s Committee.
The province offers incentives to investors including assistance to promote their brand
names and distribution, Ha said, adding that “The People’s Committee is reforming the
administration and adopting a “single door’ policy for registering businesses,”.
Binh Dinh has seen a remarkable increase in foreign investment flow. It licensed only
three foreign direct investment projects worth $20 million between 1992 and 2000, but
since 2001 it has attracted additional 28 foreign-owned projects valued at $352 million.
The U.S., Japan, the Republic of Korea, China, Germany and Singapore are the biggest
investors in the central locality.
The province has two operating industrial parks, Phu Tai and Long Vy, and the Nhon Hoi
Economic Zone.
Binh Dinh is also home to 19 industrial clusters covering 445 hectares, with 11 of them
having occupancy rates of 90-100%.
The chairman said the province would soon start construction of the 272-hectare Nhon
Hoa and 265-hectare Hoa Hoi industrial parks.
It is also planning to build two more industrial parks, Cat Khanh and Cat Linh, he said.
The local Quy Nhon deep-sea port is capable of handling roughly 4 million tons of cargo
a year, the third highest in the country.

27. The province’s key export commodities are wooden furniture, agricultural and forestry
produce, minerals and seafood.
Under a plan approved by the government, Binh Dinh is aimed to become an industrial,
trade, tourism, services and human resources training hub for the south-central region and
the Central Highlands regions by 2020. (Vietnam News Agency Aug 4)
Foreign Investment:
Foreign Investors Pledged $14 Bln in Vietnam Real Estate in H1
Fully taking advantage of the government’s efforts in cutting public investment projects
and slow credit growth to 30% this year to curb inflation, foreign investors are
accelerating investment into the realty sector, the Tien Phong (Pioneer) newspaper said
Monday.
In the first six months, foreign investors injected $14 billion into the sector, dominating
the local ailing real estate developers because they are restricted to bank loans, the
newspaper said.
“This is the golden chance for us [the Malaysian S.P Sertia Co] to become the number 1
realty developer in Vietnam,” Teow Leong Seng, CEO of S.P Sertia said, pointing out
that many domestic realty companies are in critical situation.
Unlike a year ago, a foreign company which wanted to invest $40 million in the South
Saigon real project, was turned down, and now it only has paid $28 million.
Besides, paperwork now gets easier, a CEO of a Malaysian firm said.
“We see no reasons to hesitate to invest into Vietnam’s real estate field because almost
all the worldwide prestigious real developers arrived in Vietnam, if we do not invest now,
it’ll be later to wait until Vietnam’s economy is to recover in the next four years,” Mr Tan
Hai Hsin, CEO of the Malaysia Henry Butche group said. (Pioneer Aug 4 p5)
Infrastructure:
Vietnam Disburses VND26.4 Tln in Fundamental Construction Projects in Jan-Jul
State treasuries across Vietnam had disbursed VND26.4 trillion ($1.6 billion) in the key
fundamental construction projects in the first seven months this year, the Dau Tu
(Investment) newspaper said Monday.
The newspaper did not disclose the comparative figure, but the government-run General
Statistics Offices said that VND47.6 trillion of state budget was implemented during the
time, and the Transport Ministry took the lead with VND2.457 trillion disbursed into
transport projects.

28. The capital city of Hanoi and Ho Chi Minh City were rated the leaders with VND2.6
trillion and VND3.973 trillion spent.
The Ministry of Planning and Investment said so far the government has cut a total
VND45 trillion to curb inflation. (Investment Aug 4 p2, www.dddn.com.vn Jul 31)
Vietnam Ministry Proposes Adding $300 mln for Transport Works
The Vietnamese Ministry of Transport has recently suggested that the World Bank add
$300 million to help finalize construction of the remaining roads and bridges of the rural
road improvement network project (WB4).
The ministry has had a meeting with the WB’s officials who recently arrived in Vietnam
to scrutinize the project.
The ministry said it will direct roads developers and advisors to give out a list of specific
roads and bridges to be completed within the time of the initial credit agreements
protracted and new agreements valid until December of 2011.
It will send an official letter to inform the bank of the project implementation and the
premier. (Transport Aug 1 p1)
Vinashin to Build Industrial Park in Central Province
The Vinashin Business Group has submitted its plan to the People’s Committee of central
Khanh Hoa province on setting up an industrial park in the South of Cam Ranh Town,
state media reported Monday.
The total investment capital for the 1,400-hectare park can reach hundreds of millions of
dollar, the Pioneer newspaper said.
According to Vietnam News Agency, Vinashin will build factories to produce blocks,
internal parts, engines, deck’s facilities, and steel structure of ships in the park.
It will also open plants for manufacturing steel plates, cranes and diesel-fueled power
engines here, the news agency said.
Vinashin has invested in a shipyard in Cam Ranh with capacity of building ships of
50,000 DWT. The shipyard’s the first phase worth VND598 billion ($35.1 million)
became operational this year’s first quarter.
The group plans to expand the shipyard with an estimated investment of VND3 trillion
($176.4 million) by 2010.
Vinashin has gained total revenues of VND8.7 trillion ($543.7 million) in the first six
months of this year, up 82.7% on-year, said CEO Pham Thanh Binh.

29. The firm will expand its operations to real estate, metallurgy, and enhance heavy ship
building and repairing, Binh said, noting that it will invest $4 billion for its business
expansions from now to 2010. (Pioneer Aug 4 p13, Vietnam News Agency Aug 1,
Vietpan Database)
Politics & Law:
Vietnam PM OKs to Hire Foreign Consultants for Hanoi City Expansion
Vietnamese Prime Minister Nguyen Tan Dung has turned green light to select foreign
consultants to plan Hanoi city expansion, state media said Monday.
Japan-based Arata Isozaki, Netherlands-based Metropolitan Architecture and South
Korean Posco E&C, Jina Architect, the U.S.’s Perkins Eastman and Architects Designers
Planners Engineers presented their urban planning ideas at the meeting with Premier
Nguyen, Vietnam News said.
Those foreign consulting agencies are picked out of 12 firms from the U.K, U.S., France,
Germany, Australia, Japan, the Netherlands, South Korea and Singapore.
Deputy Construction Minister Tran Ngoc Chinh said based on the presentations, PM
Nguyen will appoint the international consultant with idea best suited for the city.
The capital city will require VND300 trillion to plan transport development projects from
now till 2020 with the public transport means to meet 35%-45% of the transport demand
and reduce private-owned motorbikes to 30%.
The Hanoi expanded city now has a total area of 334,470 hectares and 6.23 million
people, being listed among biggest capital cities in the world behind Beijing and Paris,
and bigger than London, Moscow, Washington and Tokyo. (Vietnam News Aug 4 p1,
Vietpan Databse)
Swiss President Pays Visit to Vietnam for Closer Ties
President of Switzerland Pascal Couchepin and his wife arrived in Hanoi July 3 to start
his first official visit to Vietnam at the invitation of the host Nguyen Minh Triet.
He is being accompanied by Ambassador Pierre Combernous, director of the political
department II for Asia, Mr Thierry Regenass, Diplomatic Advisor of Swiss President and
Mr Jean-Marc Crevoisier, spokesman for the President.
The four-day visit is to assess the actual situation and explore future avenues of potential
cooperation between the two countries, the Vietnam News Agency (VNA) cited the
President at an interview in Geneva July 28 prior to the trip.

30. “This is a strong political sign of support from a friend to a friend in difficult times,” he
told the VNA correspondent.
The Swiss leader has spoken highly of the Vietnam-Switzerland relations and affirmed
that his country prioritizes Vietnam in its cooperation policies.
President Pascal also affirmed that his country will continue to stand by Vietnam during
the rough times, adding that he is convinced the Vietnamese government has chosen the
right action to tackle momentous difficulties and he is glad to hear the government is
concentrating on fighting inflation.
So far, Switzerland has disbursed $95.6 million in ODA for Vietnam, accounting for 65%
of the total sum the European country earmarked for the Mekong region..
The bilateral two-way trade reached $1.25 billion last year, surpassing far from the figure
of $781 million in 2006.
In the first six months of this year, the trade value reached $1.84 billion.
The 7.5-million-people country has so far invested a total 50 projects worth $750 million
in Vietnam, ranking the fifth among European investors and the 19th out of 81 nations and
territories.
In term of cooperative potentials, President Pascal particularly expressed the cooperation
in training, research and higher education.
Around 15% of the visas granted by the Swiss Embassy in Hanoi are for professors,
teachers and students, the president said.
During his stay in Vietnam, the president is scheduled to witness the signing of a
cooperation agreement by the Institute of Technology from Lausanne and the University
of Technology of Ho Chi Minh City and the other by University of Geneva and the Hanoi
National University. (VNA Jul 31, Website of CPV Jul 30, Vietnam News Aug 4 p1)
VID 2009: Improving Responsibility, Transparency to Combat Corruption
Deputy General Inspector Mai Quoc Binh Jul 28 chaired a meeting to poll Vietnam
Innovation Day 2009 with the title: “Increasing Responsibility and transparency,
combating corruption,” with participation of Ministries of Culture, Sports, and Tourism,
Police, and Foreign Affairs, and others.
VID 2009 is regarded a small fair devoted to innovative ideas to help address challenges
faced by the community.

31. VID 2009 will be co-held by AusAids, the Danish, Finnish Embassy, the U.K. Agency
for International Development, the Swiss and New Zealand Agencies for International
Development.
At the VID 2009, at least $15,000 15 prizes are expected to be granted to participants
who are state agencies, legal bodies and individuals in Vietnam, except for inspectors,
army forces and police.
The government inspectorate and the World Bank will co-launch VID 2009 from Sep this
year and complete next March. (Inspectorate Jul 29 p1+2)
Labor & Education:
First “Vietnamese Workers’ Day” Held in South Korea
Almost 1,000 Vietnamese guest workers from over 4,000 businesses in South Korea
flocked to capital Seoul August 3 for a get-together hosted by the Vietnamese Embassy
and the Shinhan Bank, state media has said.
The event was evidence of the government’s special attention to the guest workers’
community abroad. It would promote mutual understanding and boost cooperation
between the two nations, Minister of Labor, War Invalids and Social Affairs (MOLISA)
Nguyen Thi Kim Ngan said.
South Korea is a potential labor market with massive employment opportunities for
Vietnamese workers, Ngan added, calling on Vietnamese guest workers to work harder,
abide by the resident country’s law, adapt the industrial working style and draw more
professional experiences and skills useful to their work and the nation back home.
In return, Head of the Labor Policy Department under the Ministry of Labor of South
Korea, Lee Jae-Kap, said Vietnamese guest workers have become part of the local
community and contributed considerably to the economic development of South Korea.
Vietnamese guest workers’ industriousness, skillfulness and smartness in mastering
technology and sciences have been recognized by South Korean enterprises, putting them
at the top of the list of foreign immigrants receiving Korean working visas under the
Employment Permit System, he added.
On this occasion, Vietnamese Ambassador Pham Tien Van presented certificates of merit
to 10 best Vietnamese guest workers and handed over letters of thanks to five South
Korean enterprises hiring a large number of Vietnamese guest workers.
The Vietnamese guest worker community in South Korea reached close to 55,000 so far.
The first seven months of this year saw 8,000 guest workers receive working visas into
the foreign country.

32. Vietnamese laborers have mostly worked in the production sector, engineering and
construction in South Korea. A small number of them have been employed for
agricultural production and aquaculture.
In 2007, Vietnamese guest-workers in South Korea remitted home $500 million out of
$1.7 billion remittances by the entire overseas Vietnamese guest workers community.
(Labor & Society Aug 4 p1, New Hanoi Aug 4 p8)
Health & Environment:
Vietnam Targets to Lower Blindness Rate to under 0.3% in 2020
Vietnam, which reported high rate of blindness in the region at 0.47% in 2007, is trying
to reduce the rate to below 0.4% in 2012 and below 0.3% in 2020, said a three-day
national conference on blindness prevention opened in Hanoi August 1.
To realize the goals, Vietnam will take a number of measures to control blindness-caused
preventive diseases such as cataract, trachoma, xerophthalmia and refractive defects.
From now until 2012, the country will conduct between 170,000 to 200,000 cataract
surgeries each year and eliminate xerophthalmia.
Currently, Vietnam reports about 370,640 blind people and 1.58 million people with poor
vision, including 572,757 men and 1,007,019 women. It also identifies an additional
170,000 people suffering from cataract-related eye diseases annually.
According to a recent survey conducted by the Central Ophthalmology Hospital, cataract
is still the leading cause of blindness in Vietnam and just 51% of the surveyed
Vietnamese knew their eyesight situation and nearly 30% of them never took eye check-
ups. (Youth Aug 4 p6, Family & Society Aug 4 p7, VNS Aug 4 p3)
Communication Forum on Bio-diversity Preservation Held in HCMC
Over 100 representatives from 15 national parks and southern preservation zones Aug 2
attended a forum on bio-diversity preservation in Ho Chi Minh City, Vietnam News
Agency said Monday.
The forum focused on discussing the role of communication and education programs in
preserving bio-diversity.
Addressing the event, Hoang Nghia Son, director of the Institute of Tropical Biology
(ITB) said that Vietnam's 10-million-hectare-natural forests have been shrinking rapidly
because of overexploitation.
Son called on scientists, preservation zones to join hands to protect genes and raise
awareness of dwellers in forests and nearby of protecting forests.

33. Participants also visited an exhibition of photos about research activities in preserving
bio-diversity. (VNA, New Hanoi Aug 4 p3)
WB-funded Project Help HCMC to Reduce Water Leakage Rate to 26% by 2010-
Official
The World Bank-financed water leakage reduction project will help Ho Chi Minh City
cut water leakage rate to 26% by 2010, Vuong Quang Sang, director of the project
management board told the Saigon Giai Phong (Saigon Liberation) newspaper.
The project will be deployed in Districts 1, 3, 5, 10 belong to region 1 this year and will
be implemented in Districts 11, Tan Binh, Tan Phu (region 2). The city’s water supply
network is divided into 6 regions.
The Philippines Manila Water contractor has arrived at HCMC and started to survey
water loss situation in district 3 at first.
Manila Water helped reduce effectively the water leakage to 20% from 60% in the
Philippines. (Saigon Liberation Jul 29)
Most of IZs in Southern Vietnam Have No Wastewater Treatment Systems
Only nine out of 21 operational industrial zones (IZs) in southern Dong Nai province
have built concentrated waste water treatment systems, Vietnam News Agency said.
The 21 IZs discharged 68,000 cubic meters of wastewater a day and two thirds of which
are poured directly into the environment, the paper said.
To prevent pollution caused by wastewater from the IZs, the managing board of IZs
announced that it will not be licensed for operation to IZs lacking wastewater treatment
systems from January 1, 2009.
Vice Chairman of the provincial People’s Committee, Ao Van Thinh said that local
authorities will assist IZ developers in building concentrated wastewater treatment
systems and dealing with obstacles in ground clearance as well as capital and other
issues.
The province’s Department of Natural Resources and Environment is taking samples
from local IZs and will announce pollution levels in the mass media. (VNA, VietNamNet
Bridge Aug 2)
Culture & Society:
ADB, AFD Fund $3 Mln for Rural Development Projects in Central Vietnam

34. The Asian Development Bank (ADB) and the Agency of French Development (AFD)
have granted nearly $3 million to traffic and reservoir projects in central Quang Nam
province, the Thanh Nien newspaper said Monday.
Work starts on the projects July 28, the provincial authorities said.
Of the sum, $988,000 will be spent to improve the traffic route between the communes of
Tam An and Tam Thanh in the district of Phu Ninh.
A further $1.97 million will be used to repair and upgrade the Phu Loc reservoir in Duy
Xuyen District.
Earlier, the ADB has donated $2 million to help ethnic people, who were affected by the
4 Bung River Hydroelectricity Plant. (Young People Aug 4 p2)
Intel, WWF Plant Trees in Southern Vietnam
Intel Products Vietnam Co has recently cooperated with the World Wildlife Fund (WWF)
and southern Dong Nai province to launch a tree planting program at Vinh Cuu Natural
Reserve, the Thanh Nien newspaper said Monday.
“The program is part of our long-term engagement to support the Vinh Cuu Natural
Reserve and raise public awareness of protecting the forest,” General Manager of Intel
Products Vietnam, Rick Howarth said.
Under the 700-hour voluntary program, over 1.8 hectares of vacant land in the reserve
will be covered with trees, the company said.
Vietnam increased its forest acreage to 11.3 million hectares in 2000 and 12.87 million
hectares in 2007 from 9.3 million hectares in 1995.
Earlier, the country has approved an $8.7 million forest plantation project from now up to
2010. (Tuoi Tre Online Aug 4, Young People p2)
Stock Market:
Vietnam Delays Privatization of Numerous Large Firms Till 2009
The privatization of a series of big names, including BIDV, Vietinbank, VMS Mobifone
and Vietnam Airlines, will be completed in 2009, in stead of 2008 as pervious projection,
says the government’s Steering Committee for Enterprises Reform and Development.
Although allowed to conduct privatization process since 2006, the mobile phone operator
VMS Mobifone has just finished selecting advisor for evaluating assets by the end of
July.
Vinaphone, meanwhile, is seeking approval for equitization.

35. This year may see the privatization of the Mekong Delta Housing Development Bank
(MHB), but two other big state-owned lenders, Vietnam Bank for Industry and Trade
(Vietinbank) and Bank for Investment and Development of Vietnam (BIDV), may delay
their privatization till 2009.
Vietnam Airlines, the national air carrier, will probably postpone its IPO till early 2009.
It is now negotiating with foreign strategic investors and privatization advisor for the
share sale.
Vietnam has earlier planned to sell shares in a total 400 companies in 2008, including 45
corporations, but only 10 corporations may completed its privatization process this year.
The national insurer Bao Viet also said it may postpone its listing plan this year after the
share prices tumbled more than 50% against the IPO price. (Vietnam Economic Times
Aug 4, Business Forum Aug 1)
Vietnam to Auction VND1 Tln g-Bonds Aug 8
The State Treasury will auction VND1 trillion ($60.6 million) worth of government
bonds at the Hanoi Securities Trading Center (HASTC) this Friday [August 8], the
Vietnam Economic Times reported.
This is the ninth tranche the treasury has auctioned the bonds via the bourse.
The bonds include VND500 billion ($30.3 million) of two-year bonds and another
VND500 billion of five-year bonds, which will be issued August 12.
They will be offered at par value under the book-entry form and then listed on HASTC.
Interested tenders should submit document before 14pm August 8.
Currently, long-term bonds fail to attract investors as bank deposit interest rates have still
remained high at 17%-18%, and the stock market has slightly rallied.
Major investors of government bonds are now commercial banks which buy bonds as
trading tool on the open market. (HASTC, Vietnam Economic Times Aug 1)
Vietnam: Only 40 Securities Brokerages to Survive in 2009
Acting General Director of An Binh Securities Company (ABS) Nguyen Hong Quan said
that only 40 securities firms will be operating in Vietnam by the end of 2009 instead of
over 90 ones currently due to the strong merge and acquisition in the sector.
The country's macro economy and the stock market have experienced great difficulties
this year, putting many securities companies at risk of bankruptcy, except for those with

36. good capital plans and backing from strategic partners and founding shareholders, he
said.
Revenues from securities brokerage and other services have sharply decreased while
operating costs have inconsiderably reduced.
Quan said M&A activities in securities sector will boom in the second half of 2009. In
the short term, stock brokers will try to seek foreign strategic partners who will help them
strengthen financial capacity.
So far, some small-sized firms have sold shares to their partners, such as Gateway
Securities, Click & Call Securities, Vietnam Securities Corporation (VSEC), and Au Lac
Securities.
In the first half of this year, three big securities firms suffered losses, including Saigon
Securities Incorporation (SSI), Bao Viet Securities (BVS) and Hai Phong Securities Co.
(HPC). (Investment Aug 4 p6, Vietpan)
Aug 4: Vietnam Shares Fall on Price Hike Concerns
Vietnam's shares closed lower Monday for a second straight day after state media said
retailers start to increase prices of many commodities from August, raising concerns
among investors over higher inflation in coming months.
“Market participants share the view that companies will face weakened profitability due
to lower local consumption, resulting from high inflation,” a trader with AuViet
Securities said.
“Though macroeconomic situation has become temporarily stable, investors are waiting
to see how the economy runs in coming months,” he said.
Sentiment will be weak in near term, the trader predicted.
VN-Index today dropped 7.7 points, or 1.72%, at 439.41.
Market volume was 11.5 million shares valued at VND461.9 billion Monday, up from
11.1 million shares valued at VND383.8 billion last Friday.
HPG, the most active stock today, fell 1.8% at VND55,500 on a trade of 2.9 million
shares, of which foreign investors bought 421,500 shares and sold 55,100 shares.
REE, the second most active stock, rose 1.8% at VND34,600 after trading 815,370 shares
changing hands.
PET tumbled 2.8% to close at VND24,100 with 652,690 shares traed, with foreign
investors buying 364,000 shares and selling 15,600 shares.

37. DPM dived 2.6% at VND56,500 after trading 589,540 shares, of which foreign investors
bought 146,500 shares and sold 7,300 shares.
TRC is the biggest decliner, falling 3% at VND65,000.
TCT, meanwhile, is the most advancer with a rise of 3% at VND51,500.
In total, 97 stocks closed lower, 49 higher and 10 unchanged.
All four fund certificates one closed lower. (HOSE Aug 4)
Vietnam News
August 1, 2008
Inter-bank Forex Rate: $1=VND16,496
Banking & Finance:
Vietnam Remains Attractive M&A Market, PWC
Vietnam is still an attractive market for merger and acquisition activities despite
difficulties of the macro economy, said PricewaterhouseCoopers (PwC).
Vietnam witnessed 48 M&A transactions worth $347 million in the first six months, PwC
said in an updated report July 29.
Several typical M&A cases are the 25% stake acquisition by Swiss Re over Vinare in
January with value of $81.9 million, the Russian Kamaz Inc.’s purchase of a 12.5% stake
into VMIC in February and Morgan Stanley’s buying a 48.33% stake into Vietgate
Securities.
In addition, Franklin Resources Inc bought a 49% stake in Vietcombank Fund
Management Co. in February, Malaysia’s Berhard purchased a 15% stake in An Binh
Bank in March, Carlsberg bought a 16% stake and becomes Habeco’s strategic investor
in May.
The value of M&A transactions the first half of 2008 is smaller than that of the same
period last year, but the number of M&A increased by one case. In the first six months of
2007, Vietnam saw 47 M&A cases worth $736 million.
PwC experts said that it is too soon to say number of M&A will fall or not.
PwC’s data show that the M&A transactions in the second half of 2007 were valued at
$1.13 billion, much higher than the first quarter. Therefore, the transactions in the second
quarter this year may continue to increase.

38. Merger and acquisition in banking and finance sector, especially among securities
companies, will increase in coming months, PwC forecast.
Foreign investors are also interested into several other sectors in Vietnam, such as
telecom, retail sale, distribution and construction materials.
The loosen regulations on foreigners working in Vietnam will also help boost M&A
market in the country. (Vietnam Economic Times Jul 31)
Deutsche Bank Expects Vietnam to Extend Lending Growth to 40% This Year
The State Bank of Vietnam (SBV), or central bank, will be likely to extend this year’s
credit growth target to 40% from the current 30%, Deutsche Bank said in its report about
Vietnam released late July.
Because Vietnamese banks have so far already used up two thirds of the targeted 30%
credit expansion this year, the credit growth will slow more sharply in the second half if
the central bank does not raise the target, the German bank explained.
“Such a sharp fall in credit growth - to the slowest since the financial crisis in 1997-1998
- would mean an even sharper slowdown in GDP growth in the second half, which we
think the authorities are not prepared to accept,” the report said.
“Hence, we expect the SBV to not only cut rates but also increase the credit growth
target, likely to 40% from 30%.”
Deutsche Bank also forecast that the Government of Vietnam will put more efforts in
fiscal tightening to counterbalance the monetary easing. (VnEconomy Jul 31 p5, DB
Source)
Vietcombank Honored Best Vietnam Cash Management Bank
The Bank for Foreign Trade of Vietnam (Vietcombank) has been named by Asiamoney
as the 2008 Best Cash Management Bank for Corporates in Vietnam, the Thoi Bao Kinh
Te Vietnam reported August 1.
It is the 18th year Asiamoney, the leading financial magazine in Asia, has held cash
management poll which are voted by Corporates and Financial Institutions, the paper
said.
In order to select the best cash management bank award voted by Corporates, Asiamoney
has sent its questionnaires to 5,500 financial managers of listed and unlisted companies,
multinational corporations, and small- and medium-sized enterprises across Asia-Pacific
region.

39. Sixty-five out of 3,000 reported answers came from Vietnamese enterprises, which is
considered a firm base for the award of Vietcombank, the largest forex bank in the
Southeast Asian country.
Recently, Vietcombank has also been recognized by Asiamoney as the best domestic
bank.
It marks the first time Asiamoney has selected Vietnam in its list, beside Australia,
China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, Pakistan,
Philippines, Singapore, Taiwan and Thailand.
The end of June this year, Vietcombank's total assets had risen 3% to VND203 trillion
($12.3 billion) from the end of 2007, and $5.3 billion of which were in foreign currency
funds. (Vietnam Economic Times Aug 1 p3)
Rubber Finance Co Okayed to Raise Chartered Capital to VND1 Tln
The State Bank of Vietnam has officially allowed the Rubber Finance Company, an
affiliate of Vietnam Rubber Corporation, to raise its chartered capital by VND200 billion
to VND1,000 billion ($60.97 million), state media reported.
Rubber Finance Co. is a financial arm of the Vietnam Rubber Corporation. The firm was
established in 1998 to help the corporation to expand the growing areas of rubber trees,
develop latex industry and other investment projects.
It has also operated as an instrument for the Vietnam Rubber Corp to distribute
reasonably this source of finance among its affiliates.
This is the second time so far this year the company has been allowed to raise its equity
capital. It got permission to scale up registered capital from VND250 billion to VND800
billion in January 2008. (Vietnam Economic Times Aug 1 p3)
Gold Prices Drop Hits One-Month Bottom in Vietnam
Gold prices were transacted at around VND18.62 million-VND18.68 million per tael in
Vietnam on the morning of July 31, the lowest level over the past one month, the Sai Gon
Giai Phong newspaper reported.
By 9am, 24-K gold at Bao Tin Minh Chau Gold, Silver and Gem Stone Company in
Hanoi traded at VND18.6 million-VND18.75 million per tael with the buying and selling
prices decreasing by VND100,000 per tael compared with transactions on the previous
day.
Domestic gold prices fell due to a decline in the world’s gold prices. The gold price in
New York was traded at $905.4/ounce on July 30 after it had dropped to $894.5/ounce,
the lowest level over the past one month.

40. Based on some positive signs of the American economy, many people hoped that the
price of oil would also decrease.
The US Federal Reserve System FED announced on July 30 several steps to enhance the
effectiveness of its existing liquidity facilities, including the introduction of longer terms
to maturity in its Term Auction Facility loans.
In association with this change, the European Central Bank ECB and the Swiss National
Bank are adapting the maturity of their operations.
Besides, the U.S. dollars are appreciating to the highest level compared with EURO price
after one month. In particular, a recent report from the US government showed that the
US economy in the second quarter of this year had reached the highest growth rate since
September 2007. (Liberated Saigon Jul 31 p2, People Jul 31 p8)
Trade:
Vietnam to Boost Exports to Middle East, Africa
The Vietnamese government will focus on expanding exports to the Middle East and
Africa, potential markets this year in a government effort to narrow trade deficit, the
Ministry of Industry and Trade emphasized at a conference held in Ho Chi Minh City Jul
13.
“The Middle East, western and southern Asian countries are potential markets Vietnam
has signed bilateral trade, technology and economic agreements and protocols with,”
Nguyen Cong Hien, vice head of the ministry’s department for African, Western and
Southern Asian Markets said.
Vietnam’s two-way trade with the Middle East region reached $1.19 billion last year, up
21% from a year ago, and from $15.5 million in 1991. Vietnam reported robust export
growth with UAE, Turkey, Israel, and Arab Saudi, the agency said.
In early Dec this year, the ministry will lead a businessmen trip to survey the Arab Saudi
market, hold a business conference to seek partners.
So far, Vietnam has set up diplomatic ties with 44 African countries [out of 54 in total]
and signed bilateral trade agreements with 15 including 13 pacts mentioning most
favored nation status.
In the first seven months, Vietnam recorded hefty trade deficit of $15.01 billion.
(Vietnam News Agency Jul 31)
Electronics Exports Up 29.4% to $1.44 Bln in Jan-Jul

41. Vietnam earned $1.44 billion from exporting electronic goods and computer components
in the first seven months this year, an on-year increase of 29.4%, reported the General
Statistics Office.
The electronics export turnover has increased sharply in recent years, from $166 million
in 2002 to $2.15 billion in 2007. It is forecast to reach $3 billion this year, the Vietnam
News Agency said.
The country is shipping electronic goods and computer components to 40 countries and
territories worldwide, especially to the E.U. market.
Export of the products to the bloc hit nearly $170 million in the first five months of this
year, increasing by 38.6% on-year and holding 17% of the country’s total export
turnover.
Other markets like Thailand, Japan and China also saw high growth rate of the products’
export turnover.
The Ministry of Industry and Trade said the increase in electronic exports to foreign
markets is attributed to the rise in the number of foreign investment projects, including
large-scale projects, in the electronics industry.
With their current growth, electronic products and computer components are included in
the list of the country’s export staples from 2006-2010, with their export turnover
expected to reach $5 billion by 2010.
The ministry asked businesses to focus on producing electronic products for informatics,
telecommunications, health and industry. It also requested enterprises to improve product
quality and samples and reduce the prices of civil electronic products to increase shares in
the domestic market. (VNA Aug 1, GSO July 2008)
State Media Criticize Squandering Habit by Vietnamese
The state-run newspaper today [Aug 1] strongly reprimanded the squandering habit by a
number of Vietnamese groups, which are partly blamed for the country’s trade deficit and
hinder the inflation battle.
In the first six months this year, Vietnam reportedly imported billions of dollars of luxury
items including automobile, wine, mobile phones and cosmetics for consumption which
worsened trade deficit and harbored land for inflation to rise more.
The value of luxury goods imported into Vietnam reached billion dollars including luxury
cars and wine, $30 million of high-end cosmetics and $600 million mobile phones, the
Vietnam Financial Times newspaper published by the Ministry of Finance condemned.

42. “It is time to raise arouse patriotism among local consumers,” the newspaper highlighted,
because the government, provinces and cities are struggling to cut more than 3,000
projects valued at over VND35 trillion, VND9.3 trillion of g-bonds, or 25% of the total
and VND2.5 trillion of regular state budget expenditures.
Consumer goods prices rocketed to 27% in July from a year ago and the trade deficit
widened to $15.01 billion in the first seven months.
The government of Vietnam has recently announced that it will increase import tax on
luxury goods including automobile and gold. (Vietnam Financial Times Aug 1 p6)
Industry:
PV South Gas Starts Building Biggest LPG Store in Southern Vietnam
PetroVietnam Southern Liquefied Petroleum Gas (LPG) Trading Joint Stock Company
(PV South Gas) July 31 kicked off construction of a LPG store with a storage capacity of
6,000 tons in southern Dong Nai province, the People newspaper reported, citing the
company sources.
The 10-hectare facility to be equipped with world modern technology is the biggest of its
kind in southern Vietnam, a PV South Gas official said.
The store costing VND215 billion ($13.03 million) includes three basins with a storage
capacity of 2,000 tons each and a system of pipeline and port to receive ships with
minimal tonnage of 50,000 DWT.
The Go Dau A store, which is located in local Go Dau A industrial park in Long Thanh
district, is expected for operation in September next year.
Dr. Nguyen Si Thang, CEO of PV South Gas, said that the facility will collect, receive
and process LPG and natural gas under state-owned oil monopoly PetroVietnam group’s
plan to collect 70,000 tons of LPG and 100,000 cubic meters of natural gas.
Vietnam’s biggest LPG gas store with a storage capacity of 10,000 tons is under
construction in northern Haiphong port city with a total investment of VND400 billion
($25 million). (The People Aug 1 p2, Youth Aug 1 p14, Vietpan)
Vietnam Demands Speedier Construction of Son La Hydropower Plant
Vietnamese Deputy Prime Minister Hoang Trung Hai has recently requested state-owned
Electricity of Vietnam Group (EVN) to speed up construction of the country’s biggest
hydropower project Son La so as to meet its set schedule, state media reported, citing the
government sources.
Under the project’s approved schedule, the first phase of Son La 500-kV station, 550-kV
line linking the plant with the Son La station, Son La-Hoa Binh-Nho Quan 500-kV line

43. and 500-kV expanded stations in Hoa Binh and Nho Quan must be completed in August
2010.
Meanwhile, the second phase of the Son La 500-kV station, Son La-Hiep Hoa 500-kV
line and 500-kV Hiep Hoa station should be accomplished in the first quarter of 2011.
The six-turbine Son La hydropower plant is also the world’s tenth biggest with the
designed capacity of 2,400 MW.
Kicked off in 2005, the VND36.93 trillion ($2.33 billion) plant is due for completion in
2012, to generate 10.2 billion kWh of electricity annually. The plant’s first turbine is
expected to start operating by December 2010.
Vietnam is estimated to lack 8.6 billion kWh of power this year. The figure will climb to
36 billion kWh in 2020 and 120 billion kWh in 2030. (Labor Aug 1 p3, News Aug 1 p2,
Vietpan)
Vietnam Northern Province to Operate 127 Hydropower Plants by 2020
Northwestern mountainous Son La province has planned to operate 127 hydropower
plants with a combined capacity of 3,509 MW by 2020, the Economic Times newspaper
reported, citing the provincial sources.
With 3,509 megawatts to be added to the country’s power grid by then, the power sector
is expected to meet the rising power demand in the coming years.
Of the projects, 2,400-MW Son La, 520-MW Huoi Quang, 200-MW Nam Chien 1 and
32-MW Nam Chien 2 are under construction with expected completion between 2010
and 2011.
The rest of 45 medium- and small-sized hydro power plants with a combined capacity of
246 MW have received investment licenses.
Meanwhile, the province is mulling over building 78 other small- and medium-sized
hydropower projects with a combined capacity of 33 MW.
The projects are expected to not only ease the country’s current electricity shortage, but
also boost socio-economic development in the province and the surroundings.
The country plans to raise the total capacity of hydropower generation projects to more
than 18,000 MW and the annual output of over 80 billion kWh by 2015, under the
national power development plan through 2015 and span to 2025, or plan VI. (Economic
Times Aug 1 p3, People Aug 1 p7, People's Deputy Daily Aug 1 p3)

44. Agriculture:
PetroVietnam to Fix Fertilizer Prices Nationwide
PetroVietnam announced it will sell Phu My fertilizer at one fixed listed price by agents
of Petro Vietnam Fertilizer and Chemicals Corporation, or Phu My Fertilizer (DPM)
beginning Aug. 1, the Pioneer reported.
The Phu My Fertilizer set up four companies, including Northern Fertilizer Co., Central
and Central Highlands Fertilizer Co., Southeastern Fertilizer Co., and Southwestern
Fertilizer Co., that take responsible for distributing Phu My fertilizer productions
nationwide.
The companies have signed contracts with 35 agents with 1,300 shops nationwide to
ensure that Phu My fertilizers are available for local farmers.
Phu My Fertilizer’s total output is 740,000 tons per annum. The company planned to
import 250,000 tons of fertilizer to ensure sufficiency for domestic demand in 2008.
In the first six months, Phu My Fertilizer produced about 346,000 tons of fertilizer and
imported another 153,000 tons.
Phu My Fertilizer Co., has so far raised prices of fertilizer eight times since early 2008
from VND8,500 a kilo to VND8,700 a kilo. The price was VND5,500 a kilo late 2007.
(Pioneer July 31 p13, Vietnam Economic Times July 31 p1)
Vietnam Targets to Export over $722 Mln Catfish in H2
Vietnam expects to notch up around $722.43 million from exporting 331,070 tons of tra
and basa catfish in the second half of 2008, the Vietnam Trade Information Center
(VTIC) reported on its website.
The figures will increase the country’s total revenues from catfish exports in 2008 to
more than $1.33 billion, with total volume of 591,070 tons.
In the first half, the country exported 260,000 tons of tra and basa catfish worth $610
million.
Vietnam Association of Seafood Exporters and Producers (VASEP) said local catfish
material supply for processing is very rich and able to meet local companies by late
October.
Currently, tra and basa catfish are selling for around VND13,800-VND14,200 a kilo at
Mekong Delta provinces.

45. The Ministry of Agriculture and Rural Development said it will announce its overall
program on catfish development and set up market information system that will help
local breeders to adjust output in line with market demand.
The ministry also considered setting up the Mekong Delta Catfish Association. (Vinanet
Aug 1, Vietnam & World Economy July 30 p6)
Govt Asks Localities to Fulfill 5 Mln Hectare Afforestation by 2010
Ministries and localities nationwide should consider the five million hectare afforestation
project in the 2006-2010 period a mandatory target, the Vietnam News Agency reported,
citing the Deputy Prime Minister Hoang Trung Hai.
Deputy PM Hoang Trung Hai made the instruction at a meeting in Hanoi on July 30 with
the Ministry of Agriculture and Rural Development and relevant agencies to review and
speed up the implementation of the 5 million ha afforestation project.
The Deputy PM asked localities to continue rearranging State-owned plantations, taking
ineffective land areas back and stepping up the delivery of land and forests for economic
sectors, households and community organizations.
The Ministry of Agriculture and Rural Development must pay attention to boosting
technical transfer and breeding management, he said.
Localities were urged to balance the budget to focus on priority objectives and encourage
economic sectors to involve in the work of afforestation.
Since the program started in 2006, the country has delivered 2.3 million hectares of forest
land, regreened over 1 million hectares and afforested over 581,000 hectares each year
with an annual investment capital of nearly VND 5 trillion ($294 million). (VNA July 31,
Vietnam Economic Times Aug 1 p2, Vietnam & World Economy Aug 1 p4)
Business:
HCM City Seeking Investment for Hi-tech, Green Projects
Ho Chi Minh City is calling for investment in hi-tech, environmentally-friendly projects
to meet development demand in the next two years, said the city’s Planning and
Investment Department.
Accordingly the city will prioritize projects in the areas of hardware, software
development and production of electronic parts.
The southern hub will also seek funds for new roads, bridges and electricity and water
supplies to meet economic growth.

46. The city will raise capitals from different sources for the projects, including private
investors. In the 2008-2010 period, it will boost economic restructuring with a focus on
high-tech industry and services, and prevention of environment pollution.
The municipal Department of Planning and Investment will closely coordinate with the
Trade and Investment Promotion Center to promote investments in industrial production
and hi-tech sectors such as electronics, information technology, precision engineering,
chemicals and food processing.
Between January and July this year, HCM City licensed 172 foreign direct investment
(FDI) projects totaling $7.9 billion, up 12 times on-year.
To date, the city is home to 2,908 FDI projects worth $24.91 billion. (Vietnam News Aug
1 p16)
IATA to Investigate Mechanical Problem on Vietnam Airlines’ Boeing 777
The International Air Transport Association (IATA) announced that it will investigate
reasons for mechanical problem with Vietnam Airlines’ Boeing 777 that smoke while
landing at Narita Airport, Japan, the Youth reported.
An official from the Vietnam Airlines said the IATA will verify the place and time the
problem took place and inspect the airplane’s technical issues like maintenance, safety
and security.
The association will also ask Vietnam Airlines to provide detailed document on the
airplane.
The airline July 31 appointed two mechanics to investigate reasons for the problem in
addition to Japanese experts and representatives of Boeing Company.
Vietnam Airlines’ official said almost all of loss, which is estimated at millions of US
dollars, will be paid by an insurance company.
Vietnam Airlines said the crew on flight VN950 from Ho Chi Minh City to Tokyo, Japan
July 29 was advised by the airport tower controller that smoke was coming from the right
hand engine during landing. After procedural technical operations, the crew taxied to the
gate and passengers safely disembarked.
After the airplane had landed, fire that had ignited in the right hand engine was
extinguished by fire fighters at the Narita Airport. All 264 passengers and 13 crew were
safe.
At present, the plane is being kept at the Narita Airport for investigation and repairs. (The
Youth August 1 p2)

47. Foreign Investment:
Vietnamese Mobile Operator to Enter Poland Late August
The Vietnam Posts and Telecommunications Group (VNPT), Vietnam's largest telecom
operator, is planning to further expand operations in CEE and Poland by the end of
August, state media said.
“Poland will be a potential market where the mobile market is booming,” a VNPT
official said.
This might interfere with plans of at least three Polish mobile phone brands offering
special services for national minorities, he added.
VNPT has entered the Czech Republic. The company’s offer is mainly directed at the
large Vietnamese community living in the Czech Republic, said Radovan Mihalik of the
management of VNPT-Global Communication.
The country’s largest telecommunications group finished the equitization process of its
20 affiliates during 2005-2007, raising its total number of equitized entities to 39.
It plans to push ahead the equitization of its key affiliates this year.
VNPT group secured net revenues of VND45.3 trillion ($2.8 billion) in 2007, a year-on-
year increase of 14% against those of 2006. Sixty per cent of these revenues came from
its two mobile operators, MobiFone and VinaPhone. (Website Vietnam Business Finance
July 31)
Filipino Enterprises Eye Vietnam’s Construction Market
Two construction companies of the Philippines are mulling over setting up production
bases in Vietnam with an aim to meet the increasing demand for construction materials
here, according to the Philippines’ media.
The companies, namely Icoast Manufacturing and GT Stoneworks, highly spoke of
business potential in Vietnam after they took part in an international exhibition on civil
engineering, building and home decoration, Vietbuild 2008.
GT Stoneworks’ director in charge of export said production expansion to Vietnam will
be a competitive choice.
The media also evaluated that foreign companies participating in the exhibition have
successful when joining hands with Vietnamese partners. (VNA Aug 1)
Infrastructure:
AFD Funds EUR22.8 Mln to Develop Rural Infrastructure in Northern Vietnam

48. The French Development Agency (AFD) has financed EUR22.8 million for the rural
infrastructure development project in northern Lao Cai province, the Thoi Bao Kinh Te
newspaper said Friday.
The Vietnamese Ministry of Finance and the AFD August 1 signed the contract in Hanoi.
The project is part of the AFD-aided program to develop infrastructure and eco-tourism
with the aims of reducing poverty and improving environment in four mountainous
districts of the province, the paper added.
The Vietnamese government, the AFD and the French Global Environment Fund will
carry out the EUR27.68 million program.
The program will help upgrade 305 kilometers of earthed and gravel roads, build a solid
waste treatment plant for Sa Pa, Lao Cai and Bat Xat, develop eco-tourism and raise
management capacity for Hoang Lien National Park. (Vietnam Economic Times Aug 1
p1, Vietnam & World Economy p7, People's Army p8, People’s Police p15, Economy &
Urban p4)
Tourism:
Vietnam Travel Agency Named Indochina’s Best
CITE, an event organization center in Vietnam, has been awarded the title of Best Travel
Agency in Indochina 2008 by Travel Weekly magazine, the Thanh Nien newspaper
reported Friday.
CITE is among 60 entrepreneurs, travel agencies, hotels, destination management units,
airlines and so on in Asia chosen by the owner of Travel Weekly Industry Awards 2008.
CITE is also one of the 15 Asian agencies selected together with China Travel Service,
American Express Business Travel India, JTB Corporation (Japan).
“We are proud of the award, as it is one of the most prestigious annual travel awards in
the world,” CITE’s director, Le Hoang Yen, said, adding that the center has received
around 500-600 tourists a month and most of them are MICE visitors.
CITE is under Ben Thanh Tourist Company.
The headquarters of Travel Weekly magazine is in Singapore. It is issued by Travel &
Meetings Group. (Young People Aug 1 p2)
Politics & Law:
Vietnam Fulfills Double Role at UNSC

49. Vietnam has so far made active contributions to the UN Security Council (UNSC) as a
non-permanent member and particularly undertaken well the rotational presidency in
July, Representative of Vietnam at the UNSC Ambassador Le Luong Minh said.
Minh was cited by Vietnam News Agency as saying that Vietnam’s successful
performance at the council is attributed to the country’s careful preparations in terms of
personnel, knowledge and experiences.
Along with close co-ordination between representative agencies in foreign countries,
Vietnam has accomplished the heavy workload in July, including important and sensitive
issues like nuclear issue in Iran and dispute between Thailand and Cambodia, the
ambassador expressed.
Under an unofficial statistics, the council held in July 40 ambassador-level meetings and
adopted six resolutions, including those to extend UN missions’ mandate in Cote
d’Ivoire, Darfur and Nepal.
The UNSC discussed issues related to operations of UN missions in Cote d’Ivoire, the
Central African Republic and Chad, West Africa, Sudan, Darfur, Ethiopia and Eritrea,
Georgia, Kosovo, Afghanistan and Nepal.
The council also organized during this month two open debates on children and armed
conflicts and the Middle East issue at Vietnam’s initiatives, which was lauded by member
countries and public opinion.
During the month, the UNSC chair was required to prepare the council’s annual report
for submission to the upcoming session of the UN General Assembly.
The council also adopted the UNSC Chair’s statements on children and armed conflicts,
attacks on the joint United Nations-African Union Mission in Dafur and the situation in
Afghanistan.
It also adopted five press releases on attacks on diplomatic agencies, civilians, peace-
keeping soldiers, UN employees and humanitarian workers. (Website of Government Jul
3, New Hanoi Aug 1 p8)
Health & Environment:
Vietnam among Southeast Asian Nations with High Dengue Fever Infections
Vietnam has been named among countries reporting the highest number of dengue fever
patients in Southeast Asia over the past 25 years, with a combined figure of 1.3 million
patients and 25,000 fatalities, said a conference held July 31.
In July, the mosquito-borne disease stroke 27 provinces and cities across Vietnam,
affecting 7,606 people and killing eight, said the Ministry of Health.

50. The figure has raised the country’s total number of sufferers to 30,000 with 24 deaths so
far this year, down 30% on-year, the ministry noted, adding that up to 90% of patients
were reported in the southern region.
Currently, dengue fever is developing rapidly in southern provinces, especially the
Mekong Delta region, where sticky weather and a large number of home water containers
have proved conducive to mosquito.
The disease will become more complicated and can reach its peak in August and
September, said the ministry.
It is estimated that dengue fever will affect 100,000 Vietnamese people this year.
(Liberated Saigon Aug 1 p2, News Aug 1 p5, Young People Aug 1 p2)
National Odento-Maxillo-Facial Conference Opens in Hanoi
The National Odento-Maxillo-Facial Conference and Exhibition was held in Hanoi July
31 with the attendance of around 1,500 domestic and foreign dentists, Vietnam News
Agency reported.
More than 30 world-leading companies specializing in dental facilities and materials
introduced their products and services at the event.
The latest in advanced dental technologies was also introduced at the conference.
Vietnam, the world’s 13th most populous country with over 86.5 million people, has
ranked first worldwide in terms of dental diseases as up to 99.4% of its population are
incurring dental problems, said the National Odento-Maxillo-Facial Institute (NIOS).
The institute’s latest statistics showed that the number of patients with decayed teeth
increases in line with growing age brackets with 87.5% of people under 18 having 2.84
decayed teeth per person on average and 83.2% of adults aged between 33 and 44 with
4.7 decayed ones.
The figure climbs to 8.43 for 89.5% of people aged over 45.
Lack of knowledge about dental care, low flour concentration of 0.4ppm (less than one-
half of international standards) in water in Vietnam were mainly blamed for the situation.
(VNA Jul 31, Pioneer Aug 1 p2, People's Army Aug 1 p1)
Most Dumping Sites in Vietnam Fail to Meet Hygienic Standards
Only 17 dumpsites out of 91 in Vietnam are meeting the hygienic standards, heard a
conference on mapping out a master plan on solid waste management in Vietnam's urban
areas and industrial zones by 2020, the Vietnam News Agency said Friday.

51. The country has discharged 15 million tons of waste a year, including 12.8 million tons
of domestic waste and 2.7 million tons of industrial waste, Dr Pham Sy Liem from the
Vietnam Construction Federation said.
Every year, the medical sector generates 21,000 tons of waste, the industrial sector
dumped 130,000 tons and the agricultural sector disposed 45,000 tons including toxic
chemicals, the paper said.
Vietnam has mainly buried solid waste over the past decade. However, the problem is
still serous in rural areas, being threatened by waste from 1,450 craft villages.
The country is forecast to face 23 million tons of waste by 2010 with the increasing
volume of harmful waste.
Vietnam plans to build three factories to treat harmful solid wastes by using 1% of its
GDP value. (Vietnam & World Economy Aug 1 p6+7, News August 1 p5)
15 Vietnamese Students Become Bayer Environmental Envoys This Year
Fifteen Vietnamese students from different universities nationwide have been chosen to
take part in a four day eco-camp in central highland Lam Dong province from Aug 11 to
14 after wining in the Bayer Young Environmental Envoy Vietnam program this year, the
Thanh Nien newspaper said.
Each student will receive the title of environmental envoy and VND2 million ($119)
from the Ministry of Education and Training (MoET), the paper added.
During the camp, the envoys will discuss environmental protection issues with specialists
and share their ideas on how to reduce carbon dioxide emissions.
Two of the 15 envoys will be chosen to represent Vietnam at field trip to Leverkusen
city, Germany from November 2 to 7 with the participants of students from 17 other
countries.
Bayer Vietnam Ltd, the MoET, the Ho Chi Minh City Communist Youth Union and the
HCMC Environmental Protection Agency joined hands to launch the program in March.
(Young People July 31 p9)
Culture & Society:
Japanese Firm to Design National Historical Museum
Vietnamese Prime Minister has given a nod to Nikken Sekkei, a Japanese architectural
firm, to plan and design the proposed National Museum of History, the government
announced on its website.

52. PM Dung asked the Construction Ministry to negotiate and sign a contract with the
Japanese design firm and requested the ministry to invest in building technical
infrastructure for the Huu Nghi (Friendship) park where the museum will be located.
The Ministry of Culture, Sports and Tourism is assigned to collect objects and materials
for museum display and plans for layout and design of the displays. The ministry will
also collect advice from professionals during the design and implementation phases.
The Ministry of Planning and Investment will coordinate with the Finance Ministry to
allocate capital following the approved capital plan and the Hanoi People’s Committee
will continue overseeing site clearance in order to prepare the site before October this
year.
The museum is expected to be built on a 10 hectare zone in the west of West Lake urban
area in Tay Ho and Cau Giay districts.
Construction of the National Museum of History was originally scheduled to start in 2007
and finish in 2012. The project was delayed due to inflation. (Website of Government Jul
24)
Work Starts on Thai-funded $620,000 School for Disabled Children in Vietnam
Thailand's SCG Industrial Corp July 31 kicked off construction of a $620,000 school for
disabled children in Ba Ria town, southern Ba Ria-Vung Tau province, the Tien Phong
newspaper said Friday.
The project is one of the large charity programs of SCG in Vietnam so far, the paper
added.
It is scheduled to be completed in August 2009.
Earlier, the corporation has granted 350 scholarships worth VND700 million ($42,400) to
students in seven provinces of the southeastern region. (Investment Aug 1 p3, Pioneer p6)
Vietnam’s Southern City Alerts Increase of Foreign-related Violations
The number of law violations involved in foreigners is sharply increasing in Ho Chi Minh
City, the country’s southern economic hub, according to the city’s Entry and Exit
Management Agency (PA18).
PA18 said they have dealt with 310 cases during last year and the first six months of
2008 and expelled 216 people.
Up to half of cases are African and Middle East nationalities, the PA18 officials said.

53. According to a report of the city’s police, there had been over 4,000 African nationalities
immigrated into the country in 2007, mainly for tourism and work, but almost of them
then not obey the purposes registered in their visa application.
PA18 Head Pham Ngoc Tien said that the punishment for violations faces many
difficulties because Vietnam’s regulations on management over unlawful actions by
foreign residents are loose.
“We merely gave administrative punishments over the offenders because they had no
money or any identity papers,” said he. (Youth Aug 1 p5)
Stock Market:
Commercial Banks Invest VND3.5 Tln in G-bonds in H1
Commercial joint stock banks in Hanoi have poured over VND3.5 trillion ($212.2
million) in government bonds in the first six months of this year, the Labor newspaper
reported.
Since March, joint stock banks have sharply increased their investment portfolios in g-
bonds through re-buying from foreign banks' branches, and state-owned banks, not via
direct auctions in a bid to raise their accessibility to capital on the open market.
Facing difficulties in liquidity due to the government's tightened monetary policy since
early this year, local banks have sometime found hard to draw short-term dong deposits
from individuals, institutions and other lenders.
Buying bonds, though offering thin profits, have still helped commercial joint stock
lenders raise cash in emergency.
Meanwhile, the borrowing interest rate ranging from 9% to 14% per annum on the open
market is also much lower than the rate of up to 30% per annum on the inter-bank
market, the newspaper said.
Under the current regulation of the central bank, only government bonds, treasury bills,
bonds issued by Vietnam Development Bank, and Hanoi and HCM City's municipal
bonds are traded on the open market. (Labor Jul 30)
FPT, S.Korea's STIC May Set up Joint Fund
The Financing and Promoting Technology Group (FPT) and one of the South Korea's
largest private companies STIC Investments Inc. clinched a memorandum of
understanding (MoU) in the filed of venture investment July 31, the Saigon Economic
Times reported.
The two sides may establish a joint fund or joint venture to boost investments in the
Vietnamese market.

54. FPT Chairman Truong Gia Binh said FPT and STIC will jointly invest in S.Korea'
projects in Vietnam in technology sector.
STIC General Director Kevin Lim said thanks to FPT's wide network and IT business
experience, the cooperation will help strengthen both capacities and develop other
enterprises in Vietnam and S.Korea.
Currently, STIC is managing $1.2 billion and investing in more than 282 enterprises in
various fields in S.Korea. It has also successfully carried out 48 IPO transactions, and
147 corporate M&A.
STIC will open offices in HCM City and Tokyo by the end of this year to promote
investments in the region.
Vietnam's leading IT firm, FPT, joined the financial sector by setting up FPT Fund
Management Co. (FPT Capital) which is managing Vietnam-Japan Fund with capital of
$100 million. (Vietnam Economic Times Aug 1 p4, Saigon Economic Times, Vietstock,
CafeF Aug 1)
Maritime Bank to Foreclose Bach Tuyet Cotton Assets
Bach Tuyet Cotton Joint Stock Company (BBT) has agreed to let Maritime Commercial
Bank to foreclose its assets as the firm can't seek any fund to settle due and overdue
debts, said BBT Deputy General Director Pham Tam Anh.
The management board of Bach Tuyet Cotton had an urgent meeting July 31 to seek
solutions to the issue after Maritime Bank sent it debts report, but the state shareholder
Gia Dinh Textile & Garment Corp. didn’t attend.
BBT had total debts of VND21.4 billion as the end of July, including VND6.39 worth of
overdue debts and VND318.12 million worth of interest.
In the lending contract, the cotton maker mortgaged the value of 16,000 square meters of
land and factory in Vinh Loc Industrial Park and tampon and cotton production lines.
The HOSE-listed company has also borrowed over VND42.8 billion from other credit
institutions and companies.
BBT is facing the risk of trading suspension on the Ho Chi Minh Stock Exchange.
(Laborer, Vietstock Aug 1, News Aug 1 p2)
Aug 1: Vietnam Shares Slide on Goods Price Concerns

55. Vietnam's shares ended lower Friday as local investors were selling on worries that
inflation will continue to rise in the second half after the government allows retailers to
raise prices from August.
“Many retail companies will increase prices of goods from today [August 1], as permitted
by the government, in order to offset impact of gasoline price hike last week,” a market
participant said.
Investors felt jittered that inflation will hit new peak again after the consumer prices
rocketed more than 27% in July, he said.
“Several listed companies have reported losses in the second quarter due in part to rising
production costs and this concern would be bigger for the third and fourth quarter,” he
said.
VN-Index today fell 4.25 points, or 0.94%, at 447.11.
Market volume was more than 11 million shares valued at VND383.8 billion Friday,
down from 12.3 million shares valued at VND453.6 billion Thursday.
STB, the most active stock today, dropped nearly 3% at VND22,900 on 2.9 million
shares changing hands.
DPM, the second most active stock, rose 0.9% at VND58,000 after trading 1.6 million
shares, of which foreign investors bought 412,360 shares and sold 2,100 shares.
SAM lost 2.9% to close at VND20,200 with a trade of 298,130 shares, with foreign
investors buying 4,340 shares and selling 128,200 shares.
PVD, the biggest decliner, tumbled 3% at VND97,000 with 278,640 shares changing
hand, of which foreign players bought 155,320 shares and 70,270 shares.
PAC, meanwhile, is the most advancer with a rise of 3% at VND41,200 on 65,820 shares
traded.
In total, 85 stocks closed lower, 63 higher and eight unchanged.
All four fund certificates one closed lower. (HOSE Aug 1)
Vietnam News
July 31, 2008
Inter-bank Forex Rate: $1=VND16,495

56. Banking & Finance:
Vietnam Reinforcing to Curb Inflation
The government of Vietnam is enforcing its efforts to curb soaring inflation by adopting
comprehensive measures to increase essential goods supply, reduce costs and stabilize
monetary market, Vietnamese state media said Thursday.
To tame soaring consumer prices, particularly after the Ministry of Finance hiked 31% of
gasoline prices to VND19,000/liter, the Ministry of Industry and Trade is requesting all
provinces, cities and companies to quote selling prices.
The Ministry of Finance today issued an urgent dispatch to ask municipal and provincial
bodies to double efforts to control consumer prices, and remove any potential goods
hoarding and speculation causing market turmoil based on any incidents such as natural
calamity or epidemics, the Thoi Bao Kinh Te said.
The government also pledged that it will increase loans for farmers and fishermen to
maintain effective existing production activities, particularly those in the Mekong Delta,
the country’s rice bowl, which will make significant contribution to the fight against
inflation.
Because food and foodstuff account for more than 40% of Vietnam’s basket of goods
based on which its CPI index is calculated. Besides, the government will increase import
tax on luxury goods including automobile and gold to reduce trade deficit.
The Ministry of Health is asked to tighten state control over prices of medicines by
requesting pharmacy firms to quote medicine prices and clamping down any illegal prices
hikes, state media said.
Party Chief Nong Duc Manh Jul 30 had a meeting with Vietinbank, one of Vietnam’s
leading state-owned banks, calling on the banking sector to shoulder burdens with the
government to curb inflation.
Recently, big banks such as Agribank, BIDV and several others started to reduce
borrowing costs for local production firms to enrich essential goods supply, a pivotal
factor to successfully tame high inflation, which rocketed to 27% in July on year, state
media said.
“Market and prices management is a key tool to curb inflation,” PhD Vu Dinh Anh, dean
of the Institute for Market Research and Prices Research said.
“The Vietnamese government should carefully list to economists in terms of economic
restructuring with priority given to effective projects and tighten control on indirect
foreign investment funds in order to avert any financial bubble bursting,” Tran Anh
Vuong, vice chairman of the Hanoi Young Entrepreneurs Association said.

57. Alain Cany, chairman of the EuroCham said that despite European business community’s
optimism about Vietnam’s economic prospect, they are really concerned about inflation
by monetary factors.
Michael J.Peace, chairman of AmCham also worried about inflation by hiked salaries,
which are harming the local business climate. Meanwhile, Martin Rama, Acting Country
Director of World Bank said the entire world is facing inflation.
Nguyen Tien Thoa, head of the Ministry of Finance’s Price Management Department
forecast that 31% hikes of gasoline prices will push CPI to rise by 0.62%. CPI is forecast
to soar 1.8%-2% on month in Aug this year.
So far the government of Vietnam has cut VND41 trillion of public investment projects
to curb inflation.
Vietnam has lowered its GDP growth rate to 7% this year from the set 8.5%-9%.
(Newspaper of Industry and Trade Jul 31 p2, Thoi Bao Kinh Te Jul 31 p1, Industry
Magazine July, Vietpan Database)
Party Leader Asks Banks to Play Key Role in Inflation Battle
The banking sector should a key player to help fight inflation successfully, the
Communist Party’s General Secretary Nong Duc Manh said during the visit to
Vietinbank July 30 on the occasion of its 20th establishment anniversary.
In the country’s general efforts to curb inflation, the planning and implementation of
monetary policy and management and development of credit activity is a core task, he
said.
The banking system in general, and Vietinbank in particular, should pioneer in containing
inflation, stabilizing macro economy, maintaining growth and ensuring social welfare,
Manh said.
During the visit, Manh praised Vietinbank’s 20-year development to become one of the
leading commercial banks which makes an average annual growth rate of 30%.
However, the party leader urged that Vietinbank should boost its efficiency,
competitiveness and contributions to the country’s industrialization and modernization to
match with its advantages and the State’s support. (Chinhphu Jul 31, Vietnam & World
Economy Jul 31 p1, Vietnam Agriculture Jul 31 p2, People's Army Jul 31)
Vietnam to Maintain Base Interest Rate at 14% in August
The State Bank of Vietnam, or central bank, will continue to keep the base interest rate
for Vietnam dong at 14% per annum in August, unchanged from June 11.

58. The re-financing interest rate for credit institutions is maintained at 15% per annum and
the discount rate kept at 13%.
The central bank has raised the base interest rate three times so far this year in an effort to
curtail the rising inflation.
However, the rate is expected to be lowered by the end of this year amidst positive
signals of inflation.
As reported by the General Statistics Office, Vietnam’s consumer price index (CPI) rose
1.13% in July from June, the slowest rise in a single month so far this year.
The state-owner lender BIDV has also decided to cut lending interest rates, the second
reduction within a month. Its highest interest rate for Vietnam dong is reduced to 20.4%.
(Labor Jul 31 p3, Youth Jul 31 p2, Saigon Liberation Jul 31 p2)
Vietnam Expects $8 Bln Overseas Remittances This Year-Report
Vietnam is expected receive $8 billion of overseas remittances this year, up 42.8% on
year, the Tuoi Tre (Youth) newspaper said Thursday.
Unlike before when overseas Vietnamese, or Viet Kieu, particularly from the U.S.,
Australia and Europe remitted their moneys as allowances back to their relatives at home,
now workers, particularly who from Asean and Middle East countries mainly contribute
to the robust growth, Nguyen Thu Ha, vice CEO of the Bank for Foreign Trade of
Vietnam said.
Besides, Viet Kieu now tend to send greenback to homeland for different businesses such
as investing into realty, securities or contributing cash to running a business at home, Ha
added.
A senior official of a commercial joint stock bank predicted that Vietnam will likely a
strong increase in overseas remittances in the coming months, the paper said.
The Dong A Overseas Remittance Co said that in the first six months this year,
Vietnamese workers sent back homeland $631 million via it, and $420 million through
Sacombank , and $730 million via Vietinbank.
Vietnam has 3.5 million Viet Kieu who settle in 90 countries and territories, the latest
statistics by the Foreign Affairs Ministry’s Overseas Vietnamese Committee showed.
(Youth Jul 31 p15)
BIDV Further Cut Lending Interest Rates

59. The Bank for Investment and Development of Vietnam (BIDV) will continue lowering
interest rates on Vietnam dong and U.S. dollar loans from August 1, state media reported,
citing BIDV’s sources.
It is the second time BIDV has cut lending interest rates in July. The first was on July 9.
At a press conference held on July 30, BIDV announced that its annual short-term
lending rate for Vietnamese dong loans would be cut by an additional 0.4 percentage
point to 20.4% for all clients.
The Hanoi-based lender said it will also offer a new annual lending rate of 19.5% for
clients with feasible business plans and stable export markets and contracts. The clients
have agreed to sell foreign currencies they earn from exports to BIDV and use the bank’s
services.
An annual lending rate of 19.8% will be applied to groups and corporations of all
economic sectors that directly manufacture products and involve in stabilizing the
economy’s major balances such as petrol, energy, steel, coal, cement, medicine and
fertilizer.
BIDV’s annual lending rate for U.S. dollar loans, meanwhile, will be cut by 1-1.3
percentage point depending on each term.
Apart from cutting lending interest rates, BIDV also plans to provide VND20 trillion for
export activities and in capital assistance to groups and corporations which directly create
macro balances and involve in programs to curb inflation and stabilize the macro
economy.
Chairman of the BIDV Board of Directors Tran Bac Ha affirmed that lowering lending
rates does not mean reduction of deposit rates.
Ha believed that his bank will not suffer losses although its turnover is reduced by almost
VND500 billion due to the reduction of lending rates.
BIDV reported its services turnover of VND1.35 trillion in the first seven months of this
year, up VND460 billion from last year. The figure is expected to hit VND1.8 billion this
year, Ha said.
Earlier, on July 9, the bank announced to cut annual lending rate for Vietnamese dong
loans by between 0.2-0.6 percentage point, and for U.S. dollar loans by between 1-2
percentage points.
Its decision was followed by a series of big banks in the country, including the Bank for
Agriculture and Rural Development of Vietnam (Agribank), the Bank for Foreign Trade
of Vietnam (Vietcombank) and the Vietnam Bank for Industry and Trade (Vietinbank).

60. (People Jul 31 p2, Youth Jul 31 p2, Vietnam & World Economy Jul 31 p5, Vietnam
Economic Times Jul 31 p2)
Habubank Reports H1 Profit of $15.5 Mln, Equal 40% Yearly Target
Hanoi Housing Development Joint Stock Bank (Habubank) reported Wednesday that its
profit reached VND248.7 billion ($15.5 million) in the first six months, equal to 40% of
the full year target.
Habubank made VND1.52 trillion in revenues from core business, a rise of 37.7% on
year.
The bank sees deposit growth of 37.3% and outstanding loan growth of 22.6% from the
beginning of this year.
In the first six months, the bank’s equity totaled VND3.3 trillion, or 64.6% higher than its
registered capital.
Habubank paid out dividend of 8% for the first half of 2008. (Cafef Jul 31)
Trade:
Vietnam Retail Market Workshop Opens in Hanoi
The Vietnam Retailer Association and the European Market Department under the
Ministry of Industry and Trade co-chaired an international workshop “Vietnam retail
market – real situation and solutions for the near future” in Hanoi July 30, local media
reported.
Speaking at the event, Dinh Thi My Loan, the association’s General Secretary said that
the country’s retail market has seen positive changes and boasts great potential.
With a population of 86.5 million, ranking 13th worldwide, Vietnam has been become
the most attractive emerging market for retail investment, lifting from the fourth in 2007,
said the 2008 Global Retail Development Index (GRDI), an annual study conducted by
AT Kearney of retail investment attractiveness among 30 emerging markets.
Additionally, Vietnamese consumers are among the youngest in Asia, with 79 million
under 65, and increased their consumer spending by more than 75% during the
2000-2007 period, the study noted.
The annual average expenditure for goods and services per capita of Vietnam doubled
over the past five years, surging from VND3.5 million ($218,750) to VND6.9 million
($431,250), the General Statistics Office (GSO) reported last year.

61. Despite the growing trends of goods prices, Vietnam’s consumer confidence still ranks
the fifth globally, Mrs Loan added.
The country’s annual retail sales growth averaged 20% in recent years, which makes
Vietnam a very attractive land for foreign retail businesses.
Vietnam has great retail market potential with strong competitors such as giant
distribution groups like BigC, Metro Cash & Carry, Parkson, Co.op Mart and MaxiMark.
Competition among retailers is forecast to be fiercer after January 1, 2009 when the
country completely opens its distribution market for foreign partners in compliance to the
WTO commitments.
Vietnam’s total retail sales of goods and services are estimated at VND527.5 trillion ($33
billion) in the first seven months of 2008, representing a growth of 30% on year, the GSO
reported July 28. (Young People Jul 31 p2, New Hanoi Jul 31 p4, Capital Security Jul 31,
Vietpan)
Vietnam Exports $1.17 Bln of Steel in Jan-Jul
Vietnam has exported $1.17 billion worth of steel products so far this year, the Tuoi Tre
newspaper reported, citing Pham Chi Cuong, chairman of the Vietnam Steel Association.
Of the total value, $720 million comes from export and re-export of steel ingots and hot
rolled steel, Cuong added.
In the period, production enterprises exported only 60,000 tons of ingots while re-
exported up to 319,000 tons of ingots.
Enterprises also shipped abroad roughly 400,000 tons of hot rolled steel that is used to
make steel pipes and galvanized corrugated iron.
Meanwhile, the country is estimated to import 6.42 million tons of iron and steel, valued
at $5.01 billion, in the first seven months this year, up 52.7% in volume and 96.6% in
value on-year.
Of the total figure, steel ingot accounts for 1.868 million tons worth $1.31 billion, an on-
year rise of 58.8% in volume and 136.6% in value. (Youth Jul 31 p14, GSO July 2008)
Vietnam to Triple Car Registration Tax to Curb Inflation
Vietnam will triple car registration taxes in Aug this year from current 5% in an effort to
curb galloping inflation and reduce traffic congestion, the Thanh Nien newspaper
reported July 31.

62. Under the Decree No.80/2008/NĐ-CP signed by the prime minister July 29, cars with
less than 10 seats will be charged with registration fees of 10%-15% instead of 5%, while
registration fees of cars with 10 seats and more, trucks and motorbikes will remain
unchanged, at 2%-5%.
Local authorities will set suitable registration fee levels for their localities, according to
the decree, which will become valid 15 days after appearing in the official gazette.
Coupled with import tariff increase to 83% from 70%, local car traders will much likely
face a hard time, the paper said, citing dealers.
Huynh Du An, general director of Euro Auto, the distributor of BMW brand name cars,
said a 5-seat BMW 320i now has the sale price at $79,900/unit. With the new registration
fee, clients in Hanoi and HCM City will have to spend nearly $12,000 for the BMW 320i,
or $8,000 more than currently.
Meanwhile, buyers registering cars in other localities will have to pay $8,000/unit or
$4,000 more than currently, he said.
Similarly, clients in Hanoi and HCM City will have to pay a registration fee of
$7,500/unit for a 2.2L Santa Fe, oil engine CRDi, 7 seats, which is now selling at
$50,000, while clients in other localities will have to pay $5,000 instead of $1,000.
As for locally-made cars, a Honda Civic 2.0AT i-VTEC, which has the sale price of
VND611.7 million, will have the registration fee of VND91.7 million or VND60 million
more than the current level, if registered in Hanoi or HCM City; and VND61,170,000
more if registered in other localities, VND50 million more than the current level.
Vietnam’s car imports in the first seven months surged 199.4% to $1.83 billion, with the
volume of fully assembled vehicles jumping 265.1% to 43,500 units, government figures
show. (Young People Jul 31 p2, Vietnam Economic Times Jul 31 p2)
Industry:
Vinashin Launches 13,500-Ton Oil Tanker in Haiphong
Nam Trieu Shipbuilding Industrial Corporation, NASICO, a member of the Vietnam
Shipbuilding Industry Group (Vinashin), July 30 successfully launched an oil tanker with
loading capacity of 13,500 tons in northern Haiphong city, the Labor newspaper reported,
citing the Vinashin's sources.
The $20-million vessel is designed with 145 meters in length, 20.8 meters in width, 11.2
meters in height, and 15,000 cubic meters in tank capacity.
The ship equipped with MAN B&W main engine was built under Japanese registration
agency NK's supervision, the sources said.

63. Vinashin, which has recently signed big contracts to build ships for foreign partners, is
now planning to invest in power plants, which seems to have no close links with the
shipbuilding industry.
Vinashin has submitted to the Ministry of Industry and Trade the report on its plan to
make investment in power plants with the total capacity of 8,000 MW. (Labor Jul 31 p3,
Vietpan)
Agriculture:
Vietnam Loses Golden Chance in Exporting Rice: Analysts
When rice prices are sharply falling, many analysts said Vietnam has lost the golden
chance in exporting rice as it stopped the export when the prices hit roof, local media
reported.
In late April and May 2008 when export rice prices hit record at $1,200 a ton, the
Vietnamese government banned local companies to sign new contract for fear that the
massive rice export would have threatened the national food security.
At that time, Thais companies won a number of contracts to export their rice for more
than $1,000 a ton.
Export prices of Vietnamese rice are now dropping to around $600 a ton, down from
$725 a ton a week earlier, and from $750 a ton from the previous week.
At local market, paddy prices decreased to only VND4,200 a kilo, but a few companies
want to collect it for export because they thought the prices will continue falling.
Rich supply of paddy thanks to bumper summer-autumn crop in Mekong Delta, and
decreased prices at the world market, are the two main reasons for the drops of paddy in
Vietnam, the analysts said.
Phan Nhut Ai, director of the Agriculture and Rural Development Service of Vinh Long
province said the low paddy prices are hitting local farmers, who have recently rushed to
chop down sugarcane, cajuput and fruit orchards to expand paddy cultivation area.
Ai said farmers only accept VND4,600 a kilo at least because of increased fertilizer, fuel
and pesticide prices.
But local rice traders said the government’s decision to impose rice export tax also
attributed to the rice price shrink.
The Vietnam Food Association said it will suggest the government increase threshold of
rice export price to be taxed or remove the tax to help ease difficulties faced by both local
farmers and exporters. (Saigon Liberation July 31 p3, Vietnam Agriculture p3)

64. Vietnam PM Urges Simpler Procedures to Help Fishermen Get Aid Easily
Prime Minister Nguyen Tan Dung has asked provincial authorities to simplify procedures
for giving aid to fishermen who cannot afford to go fishing because of the recent 31%
fuel increase, local media reported.
The Vietnam News Agency said the PM made the request in a massage sent to local
governments July 30 stating that the number of fishermen receiving Government fuel
subsidies was still small.
This meant few boats had put to sea because of “red tape” involved in procedures to
receive the grants, resulting in the fact that fishermen were still suffering losses.
In his massage, Dung partially attributed the situation to cumbersome procedures
fishermen have to complete before getting a subsidy.
He said some localities have even set up their own extra conditions and forced fishermen
to complete extra duties.
PM Dung asked the Ministry of Finance to coordinate with the Ministry of Agriculture
and Rural Development and cities and provinces to get the job done.
The government has recently decided to provide financial assistance to fishermen who
are owners of fishing ships or ships that supply services for fishing activities.
Specifically, fishermen who are owners of fishing vessels of 90 CV and more will be
supported with VND8 million to VND10 million for a fishing trip and they will receive
the assistance for a maximum of three times a year.
For vessels of 40 CV to under 90 CV, the support is VND5 million to VND6.5 million
for a fishing trip and be provided for a maximum of four times a year.
Those ships of under 40 CV, their owners will be provided with VND3 million to VND4
million for a fishing trip and the support will be granted for a maximum of five times a
year.
According to the Investment newspaper, high fuel prices forced up to 34% of fishing
vessels to stay at port.
In the first seven months of 2008, Vietnamese fishing vessels caught 1.234 million tons
of aquatic products, down 0.3% against the same period of last year. (VNS July 31 p3,
New Hanoi p1, Saigon Liberation p7)
Vietnam to Boost Safe Vegetable Production

65. Vietnam will speed up a program to produce safe vegetable, fruit and tea meeting
international standards of food safety and hygiene by 2015, the government of Vietnam
said on its Web site.
Under the program approved by Prime Minister Nguyen Tan Dung, 100% of safe
vegetable, fruit orchard and tea area will be in line with Vietnam Good Agricultural
Practices (VietGap); and 100% of total vegetable, fruit, and tea for both local domestic
market and export will also meet VietGap and HACCP standards.
The state budget will help set up transport, irrigation and pumping stations, while
provincial budget will support building wholesale markets, storages, trade promotion, and
transfer of technologies in growing safe vegetable, fruit and tea.
Organizations and individuals investing in the production will get preferential policies in
hiring land, while farmers are encouraged to cooperate with companies in producing,
processing and consuming safe vegetable, fruit and tea.
Vietnam raked in $212 million from exporting vegetable and fruit, and $$79 million from
exporting tea in the first seven months of 2008, up 17.5% and 32.6%, respectively,
against the same period of last year. (Chinhphu July 30)
One More Big Aquatic Feed Plant to Run in Vietnam Mekong Province
The People’s Committee of Mekong Delta Dong Thap province has licensed the
DOMYFEED Co. Ltd. to build a big aquaculture feed plant here, the Vietnam & World
Economy reported.
Covering 40,000 square meters in Sa Dec town, the plant has a total investment of
VND81.5 billion ($4.9 million).
Once operational in Dec this year, the plant will be able to churn out 60,000 tons of
aquatic feed yearly.
Earlier, the province also gave a license to the Domenal Joint Stock Company to build a
VND144 billion ($8.6 million) mill to produce feed for aquaculture at the Phong My
Industrial Zone.
Designed to have an output of 60,000 tons of products per annum, the facility will
become operational in October.
The Mekong Delta province currently houses 27 aquaculture feed processing projects
with a combined output of more than 2 million tons. (Vietnam & World Economy July 31
p4)

66. Business:
Week for Small and Medium Enterprises to Open in Nov
The Vietnam Chamber of Commerce and Industry (VCCI) and the Ocean Group will join
hands to hold this year’s National Week for Small and Medium-Sized Enterprises
(SMEs) in mid-Nov this year, Vietnam News Agency reported Thursday.
The SME Week, part of a scheme approved by the Prime Minister to develop SMEs in
2006-2010, will take in Hanoi, Ho Chi Minh City and a number of localities.
The week is a chance for local SMEs to join business forums, TV talk shows and training
courses which are expected to attract policy makers and representatives from ministries,
agencies, SME assistance organizations and businesses to exchange views, share
experiences and propose solutions for business development.
The event will also include an exhibition in Hanoi to help SMEs to introduce products
and services and seek partners.
This is the first time the event is organized throughout the country and will be organized
annually from this year.
According to a recent report by Hong Kong & Shanghai Banking Corp (HSBC), up to
67% of 300 SMEs in Vietnam said they strongly believed in the current economic growth
rate or at higher pace.
As many as 54% of the 300 Vietnamese SMEs said they will expand their investment and
41% of them said they will keep investment plans unchanged from now till the end of the
year, the report said.
Vietnam now has more than 260,000 non-state companies totaling VND600 trillion. The
figure is forecast to jump to 500,000 non-state firms by 2010. (Vietnam News Agency Jul
30, Vietpan Database)
Vinashin Pha Rung Corp. Made Debut
Haiphong-based Pha Rung Shipbuilding Company under Vinashin Business Group has
become a corporation from today [July 31], the Vietnam Economic Times said.
The Vinashin Pha Rung Corporation, which is wholly invested by Vinashin Business
Group, will have 27 members.
The corporation will directly carry out business and investment activities and contribute
capital to other companies.
On the same day, the corporation launched a 34,000-DWT ship, the biggest-ever it has
built for far.

67. The vessel, named San Felice, is 180 meters long, 30 meters width and can travel at 14
nautical miles per hour.
This is the fifth ship Vinashin Pha Rung built for the U.K.’s Graig Investments. (Vietnam
Economic Times Jul 31 p1 &3)
Foreign Investment:
U.S. Electronic Firm to Build $35-Mln Factory in Northern Vietnam
The U.S.’s Tyco Electronics Group July 30 received an investment license from northern
Bac Ninh province’s authority to build a $35-million plant in Que Vo Industrial Park, a
local official said Thursday.
He said the plant will produce electronic equipment and passive electronic components to
serve Tyco Electronics clients in Vietnam and Asia.
The official added that the province has granted 6.5 hectares for Tyco’s project and may
provide an additional 28 hectares for the firm’s investment expansion to some $500
million after 2010.
Construction on the factory is scheduled to begin in early August. When operational in
2009, it is expected to create 2,000 jobs.
The provincial authority has pledged to offer favorable conditions for Tyco to carry out
the project, he said.
According to the official, Bac Ninh is listed in the country’s top ten localities in attracting
foreign investors with $1.2 billion, including big names such as Samsung, Canon and
Foxconn which have built plants to produce mobile phones and electronics for export.
The province, 40 kilometers north of Hanoi, Bac Ninh has four operational IPs, namely
Tien Son, Que Vo I, Dai Dong-Hoan Son, and Yen Phong.
Tyco Electronics is one of the leading electronic component providers with turnover of
$13 billion in 2007. The company now has sale agents in 150 countries and territories
According to a report from the German-based international market research institute,
GfK, Vietnamese people spent $1.34 billion buying household electronic and IT products
last year, up 43% against 2006.
Of the sum, household electronics products accounted for $641 million and IT products
held the rest of $700 million, GfK said.
Vietnam targets export revenues of electronic products of $6 billion by 2010 from current
$3 billion. (Vietnam News Agency Jul 30)

68. Infrastructure:
Vietnam Needs $3.44 Bln to Upgrade Noi Bai International Airports
Vietnam will need around VND56.8 trillion ($3.44 billion) to upgrade Noi Bai
International Airport, the New Hanoi reported, quoting the Northern Airport Authority’s
plan.
Under the plan announced July 30, Noi Bai airport will cover 696.8 hectares in 2020.
After 2020, the airport will be expanded towards the south with a new landing road and a
new terminal in order to be able to handle 50 million passengers yearly.
From now to 2020, the country will have to pour VND13 trillion into the airport’s
upgrade. Investment for the upgrade will be sourced from the state budget, the state-
owned companies and private companies.
Deputy Prime Minister Hoang Trung Hai in May 2008 ratified the upgrade plan for the
Noi Bai airport by 2020, under which the airport will have capacity of handling between
20 and 25 million passengers, and 260,000 tons of cargo yearly. (New Hanoi July 31 p4)
Tourism:
Number of Vietnam Hotels Up 147% in Three Years
The total numbers of hotels in Vietnam have increased 147% and hotel rooms, 210%
over the past three years, according to Grant Thornton Vietnam Ltd.
The latest report by Grant Thornton Vietnam on its survey of the hotel service sector in
2007 said that the hotel room occupation rate rose by 142% in the period from 2003 to
2007 and hotel room prices also rose 37% on average in the 2006-2007. Meanwhile, the
number of hotel clients for the business purpose increase by 5.26% compared to two
years ago.
The survey also showed that most of hotel clients in five-star hotels are businesspeople.
These guests represented 39.59% of five-star hotels’ total turnover. Meanwhile, tourists
who bought tours of travel companies represent 39.59% of four-star hotels’ clients.
The average price of hotel rooms is highest in Hanoi and lowest in Da Lat. Five
destinations surveyed are Hanoi, HCM City, Phan Thiet, Hoi An and Danang.
Vietnam is now home to around 8,556 hotels with 170,551 rooms. Of them, there are 25
five-star, 65 four-star, 141 three-star hotels and the remaining are 1-2 star hotels.
The sun warm Southeastern Asian nation welcomes more than 2.7 million international
tourist arrivals in the first seven months of 2008, up 8.6% on year and earns total
revenues of VND41 trillion ($2.56 billion).

69. Most of the international arrivals come from Thailand, the U.S., Japan, the Republic of
Korea, the Philippines, China, France, Singapore and Malaysia. Notably, the numbers of
visitors from the Philippines, Thailand and Singapore increase by 55%, 41.6% and 27.5%
respectively. However, those coming from China, the Republic of Korea and Japan see a
slight decline.
The country is looking to 4.4 million foreign visitors and 19 million-20 million domestic
tourists with total revenue of VND56 trillion, or $3.5 billion this year. (Saigon Liberation
July 31 p2, Youth July 31 p14, Young People July 31 p2, Vietnam Economic Times July
31 p4, Vietnam Banking Times July 31 p15)
Politics & Law:
U.S. Deputy Secretary: Vietnam, U.S. Enter New Chapter of Relationship
The U.S.-Vietnam relationship has entered a new chapter, which is symbolized by
President Bush’s visit to Vietnam in 2006 and Premier Nguyen’s visit to the U.S. in June
this year, Deputy Secretary of State John Negroponte said at the Brookings Institution
July 29.
The two countries now enjoy significant and expanding trade and economic ties, an
emerging military-to-military relationship, fruitful cooperation on health and
development issues as well as growing cultural and educational links, John Negroponte
noted.
Vietnam has followed a path to growth familiar to many of its successful neighbors such
as encouraging private firms, setting up legal institutions and opening itself to global
trade via its membership in APEC and WTO, the U.S. diplomat added.
The Asean country’s remarkable growth has lifted millions of its citizens from poverty
over the past 15 years, he is deeply impressed.
During the visit by Mr Nguyen to the U.S. for the first time as the prime ministership
from June 23 to 26, he and Bush discussed a range of issues and agreed to heighten the
bilateral comprehensive relationship. On this occasion, Bush reiterated his support for
Vietnam’s sovereignty, security and territorial integrity.
Since normalization of the diplomatic ties in 1995, the bilateral trade has been keeping
soaring, reaching $12 billion last year, and the U.S. is the biggest importer of Vietnam.
This year, the bilateral trade value is expected to surpass $15 billion this year. In the first
five months this year, Vietnam shipped $4.39 billion of goods to the U.S.
Now there are 1,000 U.S. firms doing business in Vietnam. (Vietnam News Agency Jul
31, Vietpan Databse)

70. Forum on Pan-Tonkin gulf Economic Cooperation Opens
A forum on Pan-Tonkin gulf economic cooperation was launched July 30 in Beihai, a
coastal city in south China's Guangxi Zhuang Autonomous Region, drawing over 400
delegates from Brunei, China, Indonesia, Malaysia, the Philippine, Singapore, Thailand
and Vietnam.
The Vietnamese delegation was led by Nguyen Xuan Thang, vice president of the
Vietnam Academy of Social Sciences.
The two-day event, the third of its kind, focuses on three main issues, including Pan-
Tonkin Gulf economic cooperation amid an uncertain world economy; focal points,
difficulties and prospects in Pan-Tonkin Gulf sub-regional cooperation, and the opening
and development of the Tonkin Gulf Economic Zone and Pan-Tonkin Gulf economic
cooperation.
In term of issues related to waters delineation of Tonkin Gulf, Vietnam and China agreed
to keep the situation in the East Sea stable by maintaining peaceful negotiations on waters
issues.
During the visit to Beijing by the Vietnamese party chief Nong Duc Manh early June at
the invitation of his Chinese counterpart Hu Jintao, the two administrations pledged to
continue efforts to implement Tonkin Gulf Demarcation agreement and pact on fisheries
cooperation, carry out joint patrols as well as accelerate implementation of the
Framework Agreement on Oil and Natural Gas Cooperation in Agreed Zones in Tonkin
Gulf. (New Hanoi Jul 31 p8, VNA Jul 30)
UNDP Funds $2 Mln for Vietnam’s Development Strategy
The UN Development Program (UNDP) has pledged to give a $2 million aid to the
Vietnamese government to work out the country’s socioeconomic development strategy
in the period of 2011-2020, local media said.
The two-and-a-half year project, signed in Hanoi July 30, is the second of its kind
financed by the UN body after the first designed for the 2001-2010 period.
The sum will be used to assist the Ministry of Planning and Investment’s Development
Strategy Institute (DSI) in conducting necessary research and approaching international
experiences.
UNDP Deputy Country Director in Vietnam, Christophe Bahuet said apart from
achievements after 20 years of renewal, Vietnam is facing emerging challenges that
require proper choices to further promote its socio-economic development.

71. The project, thus, is expected to back Vietnam’s access to high-quality expertise and
practices to serve the formulation of the national development strategy, he said at the
signing. (Labor Jul 31 p2, Saigon Liberation p1)
Health & Environment:
Vietnamese Children’s Height 5 Centimeters Shorter than World Average
Although the average height of Vietnamese children under two in 2007 rose by five
centimeters compared to the past two decades, it is five centimeters shorter than the
world average set by the World Health Organization, said a forum held in Ho Chi Minh
City July 30.
Currently, Vietnam has over 2.6 million children suffering from height malnutrition and
the number of underweight children is also estimated at more than two million, said the
National Nutrition Institute.
A recent research conducted by the United Nations Children's Fund (UNICEF) showed
that, the child malnutrition rate in Vietnam was 33.9% in 2007, compared to 10% and
19% in China and Thailand, respectively.
The milk use rate of Vietnamese is also at the bottom of the world list with the average
rate of six liters/person/year while the respective rates in Thailand and China stand at 22
and 26.
According to the latest statistics released at the forum, one percent of malnutrition can
cost $20 million for a country per year, and Vietnam is losing nearly $700 million due the
malnutrition. (Liberation Saigon Jul 31 p3, baomoi.com Jul 31)
15% of Vietnamese Affected by Hypertension
Nearly 15% of Vietnam’s population, mainly people aged more than 50 reportedly
develop blood hypertension, the National Heart Institute was citied by the Ha Noi Moi
newspaper as saying Thursday.
Meanwhile, the figure is higher than 10% in Europe and lower than 15%-20% in Africa,
the institute noted.
The blood hypertension was caused by habit of smoking, heart disease, obese, and
diabetes and may lead to heart failure, kidney malfunction and paralytic.
To prevent the disease, the institute doctors recommended people do exercises, eat
vegetables, fruits, not to smoke and eat less fat and salt. (New Hanoi July 30 p7,
VietNamNet)
Meeting on Discussing Water Resources Management Held in Hanoi

72. Deputy Prime Minster Hoang Trung Hai has recently chaired a meeting in Hanoi to work
out solutions to increase effectiveness in managing water resources, the Nong Nghiep
Viet Nam (Vietnam Agriculture) newspaper said.
Participants at the event discussed water resources indexes and management measures in
the country.
Deputy PM called on the National Water Resources Council (NWRC) to raise capacity of
water resources management agencies and asked the Ministry of Natural Resources and
Environment to complete a plan for water resources assessment, protection and use.
The event pointed out shortcomings including poor public awareness of this vital
resource and the water is not considered as a rare resource and a type of commodity,
Vietnam News Agency said.
Vietnam’s total water resources are forecast to decrease to 807 billion cubic meters in
2025 from 843 billion cubic meters in 2000.
Meanwhile, water demand is estimated to rise to 107 billion cubic meters in 2010, and to
125 billion cubic meters in 2020.
The country has been warned of water shortages in the future without using inefficiently
water resources. (VNA Jul 30, Vietnam Agriculture July 29, Vietpan database)
Rare Bird Found at Southern Vietnam's National Park
Rare birds listed in Vietnam's Red Book of endangered plant and animal species have
been found at the U Minh Thuong National Park in southern Kien Giang province while
they are nesting to lay eggs, the Tin Tuc (News) newspaper said Thursday.
The Park Management Board said that it is now feeding two precious birds, Gia Day Java
scientifical name of Leptotiplos Javanicus, weighing 1.5-2 kg each.
The birds are friendly with people and are aware of signals for food, the board said,
adding that the appearance of the wildlife proves that the environment at the park has
been improved markedly.
The park is now home to hundreds of thousands of birds belonging to 100 species, with
the most crowded being wild ducks, storks and herons. (News July 31 p5, VNA)
Culture & Society:
Yahoo! Accused of Violating Vietnamese Laws

73. The Vietnam Software Association (Vinasa) and the Game and Digital Content Business
Club have complained to the Ministry of Information and Communications about the
illegal operations of Yahoo! in Vietnam, The Lao Dong newspaper said Wednesday.
According to Decision 27, all organizations must have a license of the Vietnamese
Ministry of Information and Communications to provide information on the Internet and
have their own information websites. However, websites of Yahoo! in Vietnamese which
have .vn domain names are operating without licenses, Vinasa said.
According to Vinasa, Yahoo! is providing Yahoo! Mail in Vietnamese, Yahoo!
Messenger in Vietnamese, Yahoo! Ask and Answer in Vietnamese, as well as Yahoo!
Music in Vietnamese at Yahoo.com.vn though it does not have an OSP license.
Yahoo!’s license to set up a representative office in Vietnam does not allow the
representative office to conduct business activities or any lucrative activities in Vietnam,
the association also added.
Yet, Yahoo! has announced that four companies in Vietnam, Admax, FPT Online
Advertising, GapIT and Golden, are Yahoo!’s authorized advertising agents in Vietnam.
These partners will advertise and sell Yahoo’s online advertising products to companies
in Vietnam and exploit advertising sale services in Vietnam.
Yahoo!’s above activities and similar activities of other foreign firms are worrying
Vietnamese game and digital content service providers, who are trying to overcome
difficulties and strictly obey the Vietnamese laws but have to compete against foreign
rivals who are playing unfairly, Le Hong Minh, Vice Chairman of the Game and Digital
Content Business Club, said.
Yahoo!’s representative office opened in HCM City in August 2007 and in a short period
of time after that Yahoo! began providing various services targeting the Vietnamese
market.
In response, Director General of Yahoo! Southeast Asia in Vietnam, Vu Minh Tri said,
rejected the denunciation, adding that all operations of Yahoo! are in line with Vietnam
laws.
There has been no final decision on the dispute. (Labor July 30 p1, Pioneer July 30 p10)
U.S. to Grant $30,000 to Help Vietnam Province Preserve Ancient Artifacts
The U.S. Embassy in Vietnam has just decided to grant $30,000 to help the Vietnamese
northern province of Nam Dinh preserve a collection of ancient worshiping artifacts aged
17th century and 19th century, the Phap Luat Thanh Pho Ho Chi Minh newspaper said.
The fund will be spent on lengthening lifespan of and beautifying 57 artifacts which
include five wooden-painted pictures and 52 others artifacts, the paper said.

74. Local artisans will coordinate with museums to jointly preserve them. (HCMC Law Jul
31 p2)
216 Ancient Tombs Found in Central Vietnam
Central Thua Thien-Hue province has recently unearthed 216 ancient tombs and found
out 200 Sa Huynh-age jars at the Con Rang relics in Huong Tra district, the Tin Tuc
(News) newspaper said, citing the result of the third excavation.
This is the biggest archaeological discovery in the region so far, said archaeologists from
the Vietnam Institute of Archaeology and the provincial Revolutionary-Historical
Museum.
Director of the museum Van Dinh Thanh said the tombs with four different shapes were
buried in a vertical position with different distances and depths.
Archaeologists also found 1,319 artifacts made of iron, bronze, stone, glass and porcelain
at the two previous excavations in the relics. (News July 31 p8, VNA)
Stock Market:
Dragon Keen on Vietnam Consumer, Drug Stocks
Dragon Capital will increase its investment capital on food, pharmaceutical and other
consumption stocks such as beverages in Vietnam market for the rest of the year, the
Young People newspaper said, citing the fund's Director Dominic Scriven.
The country's stock market is now not a hugely liquid market, he said, noting that it is
wise to focus on predictable and visible earnings-growth companies.
There will be a time to invest in asset-based businesses, banks and real estate companies.
But the investment will be not attractive until the end of this year, even early next year.
The key stock index once plummeted below the level of 400 in the first half. However,
the improved macro picture enticed a lot of retail investors back to the market, Dominic
Scriven said.
The corporate earning results, although lower than expectation, were still above last
year's level.
Although Dragon Capital looks for positive net profit growth, it still predicts a decline in
EPS growth of 8%-9% for the whole this year. (Young People Jul 30 p13)
Vietnam Largest Insurer Earns $18.93 Mln in H1 Pre-Tax Profits

75. Bao Viet Insurance Group, Vietnam’s biggest insurer, has reportedly made its pre-tax
profits of over VND312.4 billion ($18.93 million) in the first half this year, the
VnEconomy online newspaper reported.
The state-run insurer also gained total revenues of VND4.62 trillion ($279.82 million) in
the period, of which insurance premiums were VND3.55 trillion ($215.15 million),
financial investments VND1.05 trillion, and others VND19.43 billion.
No comparative figures have been announced.
Shares of Bao Viet are currently available on the over the-counter market only, having
not yet been listed on the official stock exchange.
“The business results will directly impact the share’s price on the stock market,” said
Nguyen Tien Dung, an independent securities analyst.
The results would have helped even more if the firm had listed during the first half of the
year, Dung added.
General Director of Bao Viet Insurance, Nguyen Thi Phuc Lam, said that the company
didn’t want to officially list yet as share-holders risked losses, Lam said that the listing
would take place at a suitable time that limited stakeholder loss.
Lam said that the firm has asked the Finance Ministry for a listing schedule which would
protect its stockholders. (VnEconomy Jul 30)
Vietnam Leading Stock Broker Suffers Loss of VND141.6 Bln in Q2
Vietnam's top stock broker Saigon Securities Incorporation (SSI) announced that it lost
VND141.6 billion ($8.6 million) of net profit in the second quarter of 2008, bring its
first-half loss of VND27.2 billion.
It grossed revenues of VND251 billion from securities services and investment profits in
the second quarter while its costs totaled VND352 billion.
Of the total costs, SSI spent VND266 billion for provision of securities price reduction.
The HCM City-based firm has dismissed its chief accountant from July 30, right before it
released business results, which is stirring concern among investors.
Earlier, two other securities companies have also reported big losses in the second
quarter, including Bao Viet Securities losing VND349.3 billion and Hai Phong Securities
VND365 million.

76. Despite unsatisfactory earnings, two SSI's foreign strategic partners including Japan's
Daiwa Securities and Australia's ANZ Bank have recently bought in additional seven
million SSI shares to boost their stake in the firm. (CafeF Jul 31)
Phu My Fertilizer Earns Record High Profit in H1
Phu My Fertilizer Joint Stock Company (DPM), a PetroVietnam subsidiary and the
biggest fertilizer producer in Vietnam, has announced a net profit of VND1.1 trillion
($66.7 million) in the first half, the highest level among listed firms so far.
DPM's revenues hit VND3.13 trillion ($189.8 million) during the period. The firm
surpassed the profit target of this year, and finished 71% of the revenues plan.
Under the plan, the fertilizer producer expects a pretax profit of VND1.19 trillion and
total revenues of VND4.4 trillion.
In the first six months, Phu My Fertilizer produced about 346,000 tons of fertilizer and
imported another 153,000 tons to meet domestic demand and to stabilize the local
market.
Fertilizer prices have escalated to the highest level in the past 35 years. Since early 2008,
DPM has raised its fertilizer prices by 58.2%, at current VND8,700 a kilo.
DPM is now the largest listed firm on the country's major exchange, with market value of
VND21.2 trillion July 30. Its shares closed up 3% to VND57,500 on 2.1 million shares
Thursday. (CafeF Jul 31)
Vietnam BBT Rejected with Share Issue
The HOSE-listed Bach Tuyet Cotton Joint Stock Company (BBT) will not be able to
issue shares to strategic investors to raise capital for its production due to objection by
Gia Dinh Garment and Textile Corporation, state media said.
Gia Dinh Corp., a state shareholder with a 30% stake in BBT, still opposed the share
issue plan, said BBT General Director Ta Xuan Tho.
No solutions were found at the meeting with leaders of HCM City and Gia Dinh Corp. to
bail the company out of the hot water to keep its business in the coming time, he said.
Tho said the city leaders asked BBT management board to audit again, define
responsibility for unclear business results of BBT in the last two years, try to maintain
manufacture and cut losses.
They also asked BBT to meet with Gia Dinh Corp. to clarify the share issuance plan
again.

77. The cotton producer could only maintain production for at least a couple of months due
to a severe shortage of operating capital, Tho noted.
“If BBT doesn’t have more capital, the firm will surely suffer loss this year,” Tho said.
Maritime Bank has also just announced that if BBT is not able to settle its loans to the
bank before August 5, it will be sued. (Saigon Times Daily Jul 30 p4, VNN Jul 31)
Jul 31: Vietnam Shares End Up on Local Buying in Blue Chips
Vietnam's shares closed up Thursday as local players continued to buy blue chips,
including DPM, after many companies announce solid earnings in the first half, traders
said.
“Buying sentiment remains strong after PetroVietnam Fertilizer and Chemical Company
(DPM) reports huge profit of VND1,103 billion in the first half, fulfilling its full year
earning target,” a trader with Dong A Securities said.
“The good performance of the market heavyweight DPM and some other big players
such as Vinamilk (coded VNM), Sacombank (STB), PV Drilling (PVD) and Hoa Phat
Group (HPG) implies that listed companies still have good health against despite surging
inflation,” he said.
“The blue chips are actively supporting the key index, but 450 may be resistance because
investors are closely overseeing prices of goods after the recent gasoline price hike.”
VN-Index today rose 3.09 points, or 0.69%, at 451.36.
Market volume totaled 12.3 million shares valued at VND453.6 billion Thursday, down
from 19 million shares valued at VND664.6 billion Wednesday.
DPM, today’s most active stock, shot up 2.7% at VND57,500 after trading 2.1 million
shares, of which foreign investors bought 567,800 shares and sold 7,530 shares.
STB, the second most active stock, edged up 0.4% at VND23,600 on 1.8 million shares
changing hands.
PVD hit VND100,000 after rising 2.6% with a trade of 422,530 shares, with foreign
investors buying 357,190 shares and selling 4,300 shares.
HPG climbed up 2.8% at VND55,000 on 287,780 shares, including 57,900 shares bought
and 4,100 shares sold by foreigners.
In the downside, VTO fell 2.5% at VND15,500 on 243,640 shares traded.

78. SAM tumbled 2.8% at VND20,800 on 202,610 shares, of which foreign players bought
14,950 shares and sold 126,910 shares.
In total, 64 stocks closed higher, 84 lower and eight unchanged.
Among four fund certificates, one closed lower, two lower and one unchanged. (HOSE
July 31)
Vietnam News
July 30, 2008
Inter-bank Forex Rate: $1=VND16,497
Economic Indicators:
Vietnam’s CPI Forecast to Rise 2% in Aug
Vietnam’s consumer price index (CPI) may rise between 1.8%-2% on month in August,
higher than the 1.13% rise in July because many goods and services will have impacts of
gasoline price hike, said the Market Management Group.
Several essential goods will see the input cost increase, such as coal estimated to rise
2.93%, cement 2.24%, steel 0.61%, electricity 0.8%, waterway transport 6.5%-7%,
railway transport 4%-5%, gasoline-run automobile 12-14%, and diesel-run automobile
5-7%.
High transport costs will push up prices of many other commodities in the market.
The group suggested that localities should control prices of food and foodstuff, which
holds greatest proportion of CPI basket, and that ministries and agencies should
reorganize and develop distribution system.
According to the General Statistics Office, Vietnam’s CPI rose 1.13% in July from June,
and 27.04% one year ago. (Vietnam & World Economy Jul 30 p2)
Banking & Finance:
WB Signs $150 Mln Deal to Help Vietnam Economy
Acting Country Director of the World Bank in Vietnam, Martin Rama and Governor of
the State Bank of Vietnam, Nguyen Van Giau July 29 signed a $150 million credit
agreement to support Vietnam’s economy and its poverty reduction program, Vietnamese
state media said Wednesday.
The long-term credit is of great importance to Vietnam at this difficult time as its trade
deficit remained widened and ups and downs at the global market, Martin Rama said at
the signing ceremony in Hanoi.

79. The credit agreement will be valid for 40 years and 10 years of grace with zero interest,
which is part of a soft loan package of $370 million to be funded by 12 other donors such
as the Asian Development Bank, Japan, EC, France, Germany, the U.K., Australia,
Canada, Denmark, Ireland, Spain and the Netherlands.
Launched early this year, the poverty reduction support credit program 7 will focus on
business development, social integration, natural resources management, and
administration governance.
The WB also pledged $5 billion for Vietnam through the International Development
Agency (IDA) and the International Bank for Reconstruction and Development (IBRD)
in the next three years. (The People, People’s Army Jul 30 p8, News Jul 30 p4, Vietnam
News Jul 30 p1, Economy & Urban Jul 30 p3, Family & Society Jul 30 p4, Vietnam &
World Report Jul 30 p8, Thanh Nien Daily Jul 30 p2, Labor Jul 30 p7, Thoi Bao Kinh Te
Jul 30 p1, Pioneer Jul 30 p13, )
Vietnam Disburses $3 Bln from State Budget in Jan-Jul
Vietnam has disbursed VND47.7 trillion ($3 billion) from the state budget for investment
in the first seven months, representing 48.6% of the year’s set target.
Of total, central administration agencies disbursed VND14.3 trillion, accounting for
43.2% of their annual plan, localities implemented VND33.4 trillion capital, or 51.3% of
the plan.
The Ministry of Transport is the biggest spender with the disbursement of VND2.4
trillion, finishing 39.1% of its yearly plan, followed by the Ministry of Agriculture and
Rural Development with more than VND1 trillion, seeing the highest fulfillment rate of
60.5%.
The Ministry of Construction spent only VND69.5 billion of the state budget,
representing 19.8% of the annual disbursement plan as the ministry has cut a lot of
projects to help lower inflation.
Among localities, Ho Chi Minh City is the leader in disbursement volume, with spending
of nearly VND4 trillion, followed by Hanoi with VND2.6 trillion and Danang with
VND1.5 trillion.
Many ministries and localities see low disbursement due to surging prices of inputs since
the beginning of this year. (Vietnam Economic Times Jul 30 p1, GSO Jul 2008)
Foreigners Must Have $10 Bln Assets to Establish Financial Firm in Vietnam
Foreign institutions are required to have total assets of at least $10 billion if they want to
establish joint venture or 100% foreign-owned financial companies in Vietnam,

80. according to the amended decree on organization and operation of financial companies
approved by the Government July 29.
Under the decree, a wholly foreign-owned financial company is established and owned
by one or several foreign credit institutions, which must have assets of more than $10
billion at the end of the year before asking for establishment application.
A financial joint venture company is set up in Vietnam, of which foreign partners hold
less than 49% stake.
These companies are allowed to provide consumer credit, card, issue bonds, certificates
of deposit and valuable papers. (Chinhphu.vn Jul 30, VnEconomy Jul 30)
Vietnam Banks Face Stagnant Inflow of Depositors
The flow of deposits into commercial banks is turning out more stagnant, which is
blamed on negative interest rate although institutions have sought to raise interest as high
as possible, bankers said.
Banks in HCM City drew a total VND537.7 trillion deposits in the first half of this year,
increasing 10% from early this year and averaging out at a monthly mobilization growth
rate of 1.67%, the lowest rate in the past five years.
Last year, the average growth rate in mobilization was 3%-4% a month.
The flow is even dwindling lately, said an official with the State Bank of Vietnam's HCM
City branch, adding that July mobilization of banks in the city was estimated to increase
only 0.7% against the previous month.
At a seminar on providing finance for small and medium enterprises in the city last week,
Pham Huy Hung, chairman of Vietnam Bank for Industry and Trade (VietinBank), said
that public capital do not flow much to banks despite high rates.
"VietinBank with three main transaction offices, 140 branches, and 165 transaction sites
nationwide has widened working hours but the bank's mobilization in the first half this
year grew only 5% from late 2007, compared to annual growth of 10-15% in previous
years," the bank's chairman said.
In fact, mobilization in Vietnam dong of VietinBank in January-June this year even
decreased by VND354 billion, providing a difficult time in mobilization at banks, he
stressed.
Hung, who also serves as chairman of the Vietnam Banks Association, said that many
banks were facing the same problem as VietinBank.

81. He explained that due to high inflation rate, many people have bought the U.S. dollars
and gold as safe havens.
Furthermore, many enterprises and citizens also tended to make payment transactions
outside the banking system due to difficulties in obtaining bank loans in Vietnam dong.
Hung cited a survey of the World Bank that 35% of total amount of money has flown out
of banking system and 50% of total payment was not made via banks.
An executive with the HCM City branch of Bank for Investment and Development of
Vietnam (BIDV) said that his branch had seen hundreds of billions of dong moving out in
the last one month because institutional customers withdraw capital.
Since early this year, the branch had no new institutional depositor because BIDV's
interest rates were lower than others, he said. In July, the branch's mobilized fund was
forecast to fall by 0.5% from the previous month.
Meanwhile, the general director of a small bank in HCM City said that in February and
March mobilized funds at his bank increased by over 30% from late 2007. The growth,
however, gradually decelerated and the amount of mobilization barely increased in recent
months. (Saigon Economic Times Jul 28)
Sacombank Opens First After-hours Transaction Office
Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), Vietnam’s second
biggest listed bank by assets, has officially inaugurated its first after-hours transaction
office under Binh Tay branch in HCM City.
The Cay Go transaction office, addressed at No. 129A Minh Phung, Ward 9 of District 6,
operates between 8am to 8pm from Monday to Saturday every week.
It will do business in all financial and banking services like receiving Vietnamese dong,
U.S. dollar, and gold deposits with attractive interest rates, providing loans with quick
procedures, transferring money domestically and internationally via its network of nearly
233 transaction sites nationwide and others.
On the occasion, the Cay Go office launched a promotion program, including free
issuance of domestic payment cards, 50% reduction in service fees relating to "Overseas
study support" product, and 50%-100% discount in money transfer fee.
In the first six months, Sacombank reportedly gained profit of VND754 billion, up 23%
on year, but it accounts for only 37.7% of the yearly plan.
As the end of June, its total assets reached VND74.9 trillion, up 95% on-year, deposits
totaled VND64.2 trillion and outstanding loans amounted at VND38.3 trillion.
(http://www.hanoimoi.com.vn/vn/42/175301/ Jul 28)

82. Third Gold Trading Center Opens in Hanoi
VNS Securities JS Company and Wall Street Gold JS Company have put a gold trading
floor into operation in Hanoi, marking it as the third facility in the city so far, the Hanoi
Moi newspaper reported.
The VNS Wall Street Gold Trading Center, addressed at 9 Dao Duy Anh street, is
equipped with modern technologies, bringing convenience to different types of
customers, especially free traders.
Daily operation time of the center will be from 8.00 am to 16.30 p.m. The minimum
trading volume is limited to five gold taels per transaction.
Only gold produced by SJC and Bao Tin Minh Chau is allowed to trade at the center.
(New Hanoi Jul 28)
Trade:
Vietnam, India Hold Conference to Boost Trade
The Vietnamese general consul in Mumbai and the India Chamber of Commerce and
Industry Jul 20 co-held a conference to further boost the bilateral trade in the coming
years, Vietnam News Agency said.
General Consul Nguyen Viet Hung said that this is a chance for Vietnamese firms to
exchange market information with Indian .
The bilateral trade reached $1.54 billion last year, up from $1.02 billion with Vietnam
reporting trade deficit due to many factors including import tax on goods imposed by
India higher than by Vietnam, Counselor Nguyen Tuan Quang said.
At the event, Indian companies valued Vietnam’s political stability and high economic
growth rates; however they said they need more information about Vietnam’s market, the
agency said.
The conference is part of the week-long outbound working trip by the Vietnamese inter-
ministerial delegation led by the Department of Import-Export Pham The Dung to India
from Jul 24. (Vietnam News Agency Jul 29, Vietpan Database)
Switzerland Funds $2.4 Mln to Improve Trade Capacity
The Swiss government has provided a financial assistance of $2.42 million to a project on
improving competitive edge for key export sectors of Vietnam in the second phase from
now up to 2010, the Vietnam News Agency said.

83. The project is also aimed at promoting exports of safe and clean products from Vietnam
as part of the government of Vietnam’s efforts to boost exports to narrow trade deficit,
Deputy Minister of Science and Technology, Tran Quoc Thang said.
The project is part of the common cooperation program between the Vietnamese
government and 14 UN organizations.
It will help related authorities to successfully carry out its WTO commitments, said Jean-
Hubert Lebet, Ambassador of Switzerland to Vietnam.
The Directorate for Standards and Quality of the Ministry of Science and Technology
will be in charge of implementing the project with the technical assistance of the United
Nations Industrial Development Organization (UNIDO). (VNA, Labor July 30 p7)
Vietnam Cannot Cut Petrol Prices at This Moment
Vietnam cannot slash retail petroleum prices at this moment despite a considerable fall in
the global crude oil price in recent days as both Vietnamese government and petrol
traders need more time to recover after long-endured losses, said Vuong Thai Dung,
deputy general director of Vietnam National Petroleum Corp (Petrolimex).
Only after the price of petrol has decreased for a long time and stayed at a low level for a
certain period could Vietnam consider lowering the retail petrol price, Dung was cited by
state media as saying Wednesday.
Before July 21, 2008 when the decision on raising the retail petrol price was announced,
the retail petrol price had been lower than the cost price; and importers suffered the loss
of VND4,000 ($0.24) for every liter of oil.
Importers have been making a profit of VND200/liter of gasoline in the last few days,
while they are still losing VND3,000/liter of oil, Dung attributed.
As Petrolimex had to sell petrol at prices lower than the import prices, it incurred the loss
of over VND5 trillion ($303.03 million) in the first six months of the year, including
VND950 billion ($57.57 million) for petrol sale, and VND4.2 trillion ($254.54 million)
for oil.
Even if the global price decreases, the Vietnamese government would still be unable to
recover its losses of VND11 trillion ($687.5 million) of subsidizing domestic petroleum
importers due to the soar in the world oil price predicted at $140 this year against $70 last
year, the official elaborated.
“We are really looking forward to lower sale prices, but we do not think that relevant
agencies will dare to order the lowering of retail prices in the near future, because this
would be burdensome on the state budget,” Dung added.

84. Currently, gasoline A92 is priced at VND19,000 ($1.15) per liter in Vietnam while a liter
of diesel 0.05S is sold at VND15,950 ($0.96), paraffin oil at VND20,000 ($1.21), and
mazut at VND13,000 ($0.78).
Vietnam is forecast to lose VND44,772 billion ($2.71 billion) in the second half of this
year if it did not apply petrol price hike in the circumstance of global crude oil prices to
hit $140 per barrel, brining total loss for this year to VND60 trillion ($3.6 billion).
(Pioneer Online Jul 29, VietNamNet Jul 29, Vietpan)
Vietnam Consumes 13.5 Bln Liters of Petrol Yearly
Vietnam is estimated to consume up to 13.5 billion liters of petroleum per annum, said
Vuong Thai Dung, deputy general director of Vietnam National Petroleum Corp
(Petrolomex).
On average, the country uses 12.5 million liters of gasoline and 25 million liters of oil per
day; and the figures reach 375 million liters of gasoline and 750 million liters of oil
monthly, VTC News quoted Mr. Dung as saying.
Petrolimex is now selling 7.5 million liters of gasoline and 15 million liters of oil per day,
accounting for 60% of Vietnamese market share, the official said.
Vo Van Quyen, deputy head of the Department of Domestic Market Policy under the
Ministry of Industry and Trade said that Vietnam’s compulsory petroleum product
reserves must be enough for at least 20 days.
Vietnam still cannot slash retail petroleum prices at this moment despite a considerable
fall in the global crude oil price in recent days as both the Vietnamese government and
petrol traders need more time to gain back after long-endured losses, Dung said recently.
Currently, gasoline A92 is priced at VND19,000 ($1.15) per liter in Vietnam while a liter
of diesel 0.05S is sold at VND15,950 ($0.96), paraffin oil at VND20,000 ($1.21), and
mazut at VND13,000 ($0.78). (VTC News Jul 29, Vietpan)
Vietnam: Retail Gas Price May Fall Sharply in Aug
Many gas traders in Vietnam are considering cutting retail price by VND20,000 per 12-
kilogram canister in August this year in the wake of recent fall in the global gas price, the
Saigon Liberation newspaper reported July 30.
Decreasing global crude oil price has lead to a reduction in the world gas price by $90 per
ton to drop to only $837 per ton July 29, gas traders said.
If the global gas price stands at the aforementioned rate until August 31 this year, the
retail gas price in Vietnam is expected to drop to VND275,000 per 12-kg cylinder from
current VND271,000, the trader noted.

85. In addition, global demand for gas is forecast to tumble next month to pull down the
retail price, market watchdogs said.
Vietnam now has around 100 gas trading companies, including 10 bid companies that
import and distribute LPG in the domestic market.
Currently, foreign-led joint venture companies hold over 50% of the market. They
usually adjust selling price monthly. (Saigon Liberation Jul 30 p1)
Industry:
EVN Takes Drastic Measures to Ensure Power Supply in 2008
State-owned Electricity of Vietnam Group (EVN) has taken some drastic measures to
ensure power supply for the whole nation this year, including raising electricity output,
mobilizing all available power sources, and boosting power purchases from BOT and IPP
plants and neighboring China, said General Director Pham Le Thanh.
To keep up with national increasing demand for electricity, EVN has planned to generate
a total 80 billion kWh of power this year, up 15.82% against 2007, Thanh said.
Of the total, EVN will produce and buy 77.2 billion kWh, up 15.62% on year, and ensure
commercial electricity output of 68.1 billion kWh, up 16.97% on year, the official
attributed.
In a bid to prepare for the dry season this year lasting from January 1 to May 31, EVN
expected power output for the period at 31.7 billion kWh, up 4.8 billion kWh or 18.11%
compared to the same period last year, Thanh noted.
The group has mapped out a plan to mobilize all available power sources including
hydroelectricity, coal-fired power plants, and gas and oil-fuelled facilities in addition to
accelerating power purchases from BOT and IPP power plants and from China, he said.
However, power shortfall is still happening in Vietnam, and the situation seems to be
worse against the estimation to hit between 10 million and 15 million kWh per day due to
severe weather, breakdowns at some power plants, unstable operation of new power
sources and sluggish execution of many power projects, EVN leader explained.
Vietnam needs synchronic measures to deal with current severe power thirst, including
improving power supply, operating current power sources at their peak capacities,
boosting power purchases from China, speeding up repair at broken-down power plants,
accelerating operation of new power plants, and drawing out policies to attract more
investment in power projects, Thanh added.
Power-thirsting Vietnam is estimated to lack between 2,000 MW and 2,500 MW of
power daily in July and the power shortfall will prolong until mid-August.

86. The country is forecast to face a power shortfall of 8.6 billion kWh of electricity this year
and the figure will climb to 36 billion kWh in 2020 and 120 billion kWh in 2030. (The
People Jul 30 p1&2, Vietpan)
PV Power to Build 18.6-MW Geothermal Power Plant in Central Vietnam
Authorities in central Quang Ngai province July 29 approved the PetroVietnam Power
Corporation (PV Power) to build a geothermal power plant with a total capacity of 18.6
MW in the locality, the Young People newspaper reported, citing the provincial sources.
PV Power intends to locate the plant in local Thanh Tru village, Duc Lan commune, Mo
Duc district, the sources said, without mentioning estimated investment and the time for
the start of the project.
ORMAT Group of the U.S., a leading geothermal power company in the world, is
expected to become a technical partner to help PV Power implement the project.
PV Power has also carried out a survey of geothermal power flow at the Nghia Thang
Hot Spring in local Tu Nghia district in order to construct another geothermal power
plant with capacity of 18.3 MW.
Vietnam is forecast to lack 8.6 billion kWh of electricity this year and 36 billion kWh in
2020 and 120 billion kWh in 2030; therefore, the country is seeking ways to generate
more electricity to fuel the national fast-growing economy, including building new power
plants. (Young People Jul 30 p2, Vietpan)
Vietnam Sets Ambitious Plans for Apparel Sector Next Two Years
The Vietnamese government is targeting 16%-18% annual growth in textile and garment
production and 20% growth in exports over the next two years under a development
blueprint for the industry, the Thanh Nien Daily newspaper reported.
The sector is expected to achieve revenues of $14.8 billion in 2010, and $31 billion in
2020.
It also targets exports of $12 billion in 2010 and $25 billion in 2020 against $7.8 billion
last year.
To reach the goals, the government will focus on more local raw materials, seeking more
investment, improving quality, expanding markets, and intensifying human resource
development.
It is encouraging cotton production to meet the domestic demand.

87. The output is expected to rise to 20,000 tons in 2010 and 60,000 tons in 2020 from just
8,000 tons two years ago.
The government also plans to build textile and garment industrial parks and seek more
local and foreign investment in the industry, especially in dyeing, weaving and producing
cotton, synthetic fibers and other materials.
It is focusing on improving designs, promoting trademarks both at home and abroad,
applying advanced technologies, intensifying quality control, and overcoming export
barriers.
The government is building a quality system in line with international standards, helping
textile firms with quality control and technical barriers, and setting up a database.
The government announced it would expand traditional markets like the U.S., the
European Union and Japan, and find new ones.
To develop human resources, it is setting up more training courses in fashion design,
fabric analysis and production and sales management, and sending experts and students
abroad to attend refresher courses.
It is also simplifying tax and customs procedures, intensifying market surveillance and
cracking down on smuggling.
Apparel exports have topped $5.09 billion in the first seven months and are expected to
be $9.5 billion for the full year, according to the General Statistics Office. (Thanh Nien
Daily Jul 29)
Agriculture:
VFA to Suggest Removing Rice Export Tax
The Vietnam Food Association (VFA) will suggest the government raise initial rice
export prices to be taxed or remove the rice export tax to help ease local farmers’
difficulties, the Youth reported, citing an official from the association.
Truong Thanh Phong, chairman of the VFA, said the government should impose export
tax on rice selling for above $800 a ton instead of current $600.
Phong said the time the government to levy tax on rice export is not appropriate, adding
that rice export prices have dropped while rice production costs are sharply rising.
The chairman noted that farmers are the hardest hit people by rice export tax.
“Local companies are now not keen on buying paddy and rice from the farmers for fear
losses because rice export prices have been falling.” Phong said, adding that they are also
waiting for the government’s introductions on rice export tax.

88. “Local farmers are now very upset as paddy has been piled up but a few buys it,” he
added.
Currently, paddy prices stay at very low level in Mekong Delta region, averaging at
VND4,200-VND4,300 a kilo. Phong said with paddy production prices hitting
VND3,500 a kilo, the selling paddy prices should be VND5,000 a kilo at least.
Export prices of Vietnamese rice are now $620-$630 a ton of 5% broken rice, down by
14.5% from the floor export price set by the VFA a week earlier.
The Vietnamese government decided to impose tax on rice export, ranging from
VND500,000 to VND2.9 million for rice selling for from $600 to $1,300 a ton, free of
board.
Vietnamese companies have signed contracts to export 3.4 million tons of rice for the
first three quarters of 2009, around 100,000 tons lower than target set by the government.
Vietnam raked in $1.81 billion from exporting 2.79 million tons of rice in the first seven
months of 2008, but had to spend $1.1 billion on importing 2.32 million tons of
fertilizers, and $323 million on pesticide imports, according to the General Statistics
Office (GSO).
Rice export revenues increased by 87.6% against the same period of last year, but
fertilizer import turnover rose by 118.9%, the GSO said. (The Youth July 30 p14, GSO
July Edition)
Uruguay Sees Vietnam as Potential Market for Forestry Products
Vietnam is emerging as a key importer of Uruguay’s forest products, according to
statistics by the Association of Forestry Producers of Uruguay.
Vietnam ranked fourth among importers of sawn timber with the value making up 9% of
the South American country’s sawn timber export earning in the first six months of the
year, behind the U.S. with 27%; Spain, 17%; and Belgium, 11%.
The Southeast Asian country, meanwhile, took the lead in importing sandal-wood for
making paper pulp.
Uruguay had earned $450 million from forest export in the first six months of 2008, an
increase of 40% as compared with the same period last year, according to the association.
(VNA July 29)
Expanded Hanoi to Prioritize High-tech Agriculture

89. Expanded Hanoi city will give priority to developing high technology agriculture, the
Countryside Today reported, quoting a draft prepared by the Ministry of Agriculture and
Rural Development (MARD).
Under the draft on agricultural development in new Hanoi, the MARD said Hanoi will
have more than 192,000 hectares of agricultural land, accounting for 57.4% of total
natural land, of which 160,000 hectares will be dedicated to agriculture production.
The ministry said the city will set up five high-tech agricultural zones in the 2010-2020
period, including the Tu Liem High-tech Agro Zone focusing on fruit, vegetable and
flower production; and four others in Gia Lam, Dong Anh, Thuong Tin and Phuc Tho
districts.
Hanoi planned to shift 3,329 hectares of agricultural land into non-agricultural land in the
next two years, raising total area of shifted agricultural land in the 2006-2010 period to
6,000 hectares.
Currently, neighboring Ha Tay and Vinh Phuc provinces are the two main suppliers of
vegetables and other kinds of farm produce to Hanoi. (Countryside Today July 29 p4)
Business:
Calpis Pins Hope on Vietnam Beverage Market
The Japanese big beverage company Calpis has said that it is to prepare to launch its key
canned beverage products in Vietnam market, the Vietnam & World Economy newspaper
reported.
The company will firstly offer its canned coffee in Ho Chi Minh city, and from 2010 will
make the product in Vietnam.
Calpis said it will sell its Birdy coffee for VND6,000 per can, 10%-20% higher than the
same type available in Vietnam.
ASEAN region is the key market targeted by the Calpis, with Vietnam raking third
behind Thailand and Indonesia.
The company said its investment in the plant in Vietnam may reach several billion
Japanese yen, which will produce many kinds of beverage.
Seeing Vietnam a very big potential market, a number of Japanese companies have
entered the country.
Yakult started its operation in Vietnam from April 2008, while Asahi planning to open a
joint venture in the near month. (Vietnam & World Economy July 30 p10)

90. PNJ Reports Revenue of $121Mln in H1
Phu Nhuan Jewelry Joint Stock Company (PNJ), the leading jewelry retail company in
Vietnam, has announced its total revenues of VND1,950 billion (nearly $118.1 million)
in the first half of 2008, up 40% on-year, the Dau Tu newspaper reported.
PNJ's pretax profit was VND69.1 billion in the period, up 17% on-year, the paper said,
citing sources from the company.
The HCM City-based gold trader targets 2008's pre-tax profit of VND150 billion,
including VND45 billion from financial investments.
It also expects to increase export revenues by 50% this year by expanding operation in
three new markets of Denmark, Belgium, and France.
PNJ, which has already raised its chartered capital to VND825 billion ($51.6 million),
now boasts a strong network with two jewelry factories, 13 branches, 85 retail shops, and
3,000 wholesale customers nationwide. (Investment Jul 30 p7)
Vietjet Air Delays Flight Plan due to High Fuel Prices
Vietjet Air, the first private airline in Vietnam, announced it will delay its first flight for
four months due to high fuel prices, the vnexpress reported.
The airline expected to launch its first commercial flight in April 2009.
Having got license in December 2007, Vietjet Air planned to run its first fight between
Hanoi and HCM city late 2008, and several others to Bangkok, Hong Kong and
Singapore.
At the time the carrier set flight plan, jet fuel was traded at around $70 a barrel. Now, the
prices hit more than $122 per barrel.
“With fuel accounting for 65% of total airline’s operation cost, we can not pursue our
initial plan because if we continue, we will lose,” Vietjet Air’s general director, Nguyen
Duc Tam, said.
Vietjet Air has also postponed signing contract with the GE Commercial Aviation
Services (GECAS) to hire two Boeing 737-700s. (vnexpress July 30)
Foreign Investment:
Chinese Groups Plan to Pour $2 Bln into Vietnam Northern Province

91. Three Chinese corporations plan a $2 billion project to develop the Vietnamese northern
Thai Nguyen province into an eco-industrial city, said an official from the provincial
Planning and Investment Department.
A document to this effect was signed between local authorities and representatives of
Shan Shan, Sun Khun and Honghui groups, said the department director Nguyen Duc
Minh.
Under the Memorandum of Understanding, the Chinese investors are committed to
submitting the feasibility study to the province for consideration by Oct at the earliest.
Minh said the targeted eco-industrial city of 1,500-2,000 hectares will house a hi-tech
experimental research area, scientific-technological area, a physical architectural area, a
manufacturing area, a traditional industrial park, a trading and entertainment centre, and
villas.
The province will support and create favorable conditions for the companies to start the
project early, the official added.
He noted that Chinese companies have to date injected some $18 million into 13 projects
in Thai Nguyen with 10 projects put into operation and the others are waiting for site
clearance.
The Chinese investment mostly concentrates on mineral processing, fertilizer and drinks
production, and entertainment services.
Thai Nguyen, an economic locomotive of the northern mountainous region, possesses
many advantages for industrial production, especially steel production, with an annual
capacity of more than 800,000 tons. It also boasts famous high-quality tea products, with
over 70,000 tons capacity per year.
Thai Nguyen is also well known for the Nui Coc Lake ecological tourism site and tea
brands such as Tan Cuong, Trai Ca and La Bang.
The province expects to welcome 750,000 tourists and earn over VND300 billion ($18.75
million) from travel and hotel services in 2007. (Vietnam News Agency Jul 29, Vietpan
Database)
Laos Prioritizes Licensing for Vietnamese Projects
The Lao Government will continue to prioritize licensing Vietnamese projects,
particularly in the fields of power, mining and rubber plantation, said Lao Deputy
Minister of Planning and Investment, Thongmy Phomvisay.
Vietnamese investors have to date poured $757.6 million in 142 projects in Laos,
Phomvisay said at a conference in Vientiane on July 29.

92. At the conference, the third for Vietnamese investors in Laos, Vietnamese companies and
Lao authorized agencies discussed issues for projects’ implementation and bilateral trade.
They also agreed to propose the two governments to adopt more policies to boost
investment cooperation in the near future.
Two-way trade value between Vietnam and Laos reached $312 million in 2007, up 20%
on year.
In the first five months of this year, the figure hit $192 million and was estimated at $240
million in the first half, up 58% against the same period of 2007. (Vietnam News Agency
Jul 30, Vietpan Database)
Tourism:
Int’l Tourist Arrivals to Vietnam Capital Up 21.5% in Jan-July
Hanoi, the capital city of Vietnam welcomed more than 757,700 international tourist
arrivals in the first seven months of this year, reporting an on-year increase of 21.5%, the
Nhan Dan newspaper reported Wednesday.
The figure accounts for nearly 20.5% of the total number of tourists to the city in the
reviewed period, the newspaper added.
The markets with largest number of tourists to the city come from China, Thailand, the
U.S. and Australia, the local tourism department said.
Hanoi also reports tourism revenues of VND5.56 trillion ($347.5) and hotel room
occupancy of over 75% in the seven-month span, it added.
The municipal People’s Committee plans to build high-end tourist areas and adopt
mechanisms and policies for businesses and investors to execute tourism projects.
Currently, Hanoi boasts 34 3-5 stars hotels, which meet only 70% of international tourist
demand during this “hot” tourism season.
Hanoi is not only the tourism center but also tourist distribution center for Vietnam. At
present, the number of foreign tourists to Hanoi accounts for 33% of that of the whole
country. (The People July 30 p1, Capital Security July 30 p6)
Politics & Law:
Vietnam, China Close 28th Border Negotiation Round in Beijing
Vietnam and China have just completed the 28th-chair-level meeting of the Vietnam-
China joint committee for land border demarcation in Beijing with pledges to solve

93. remaining issues to finish the land border demarcation and border marker planting this
year, the Vietnamese Ministry of Foreign Affairs said.
The two sides are unanimous in instructing border demarcation teams to immediately
implement the consensus reached at the meeting, Vietnam News Agency said.
The Chinese and Vietnamese sides will re-sit for 29th chair-level meeting in Vietnam in
Aug this year, the agency said.
Recently, Beijing pressured Exxon Mobile Corp to stop a project in the East Sea, or the
South China Sea, heating the Sino-Vietnam ties and Hanoi had kept silent for a couple of
days before Le Dung spokesman of the Foreign Ministry Jul 25 confirmed with Reuters
that cooperative projects lie within Vietnam’s exclusive economic zones and continental
shelf.
In early June this year, Vietnamese and Chinese communists agreed in a 9-point
statement on the occasion of recent visit by party chief Nong Duc Manh to China that
they will beef up the comprehensive ties and to complete the border land demarcation this
year, accelerate implementation of the framework agreement on oil and gas cooperation
in agreed waters zones of Tonkin Gulf.
Hanoi reiterated many times its stance to support one-China policy of Beijing, and its
hosting worldwide-famous Beijing Olympic 2008. (Vietnam News Agency Jul 29,
Foreign Ministry’s Web site, Vietpan Database)
Labor & Education:
Labor Ministry Seeks Gov’t Approval for Minimum Salary Hike
The Ministry of Labor, War Invalids and Social Affairs (MoLISA) is going to submit a
plan to raise minimum salary to the government for approval, the Dau Tu newspaper
reported Wednesday.
The plan is part of the national minimum salary reform for the 2008-2012 period in
which minimum salary will be adjusted every September.
Details of the plan have not made available at the moment.
If the plan is approved, the new salary hike will be effective from January 1, 2009.
The Vietnamese government raised minimum salary by 13%-38% for workers in
domestic and foreign-invested enterprises in January 1, 2008.
Since 2003, the government has raised the minimum salary four times. However,
laborers’ needs are not met.
Vietnam plans to apply a standard minimum wage for all sectors by 2010. (Investment
July 30 p2, Vietnam Panorama)

94. Vietnam, U.S. Universities Boost IT Education Ties
The Vietnam Software Engineering Group (SEG Vietnam), an alliance between
Vietnamese and U.S. universities, is preparing to launch its first IT training course this
October, the Thoi Bao Kinh Te newspaper reported Tuesday.
With majors in software engineering and information system, the curriculum will include
four-year university courses and short-term classes for businessmen.
Established last June, SEG Vietnam is a group of five Vietnamese universities and
institutes and the U.S.’s Carnegie Mellon University (CMU) which aims to offer the most
professional software technology training in Vietnam as well as in the Asian region.
Vietnam’s IT human resource training and exports are welcomed in many countries, the
General Secretary of the Vietnam Software Association, Pham Tan Cong, said.
In the U.S., Vietnam ranks 20th among 25 countries which are attractive in software
engineering and was Japan’s most favored IT partner last year. The UK and Denmark
have also pledged to ensure jobs for trained Vietnamese IT workers.
The Ministry of Information and Communication said that Vietnam now has 18,000
students in 93 universities, 156 colleges and 60 training centers studying information
technology.
The country will need between 12,000 and 15,000 IT engineers in the 2008-2010 period
and 20,000-25,000 in the 2011-2015.
The country will spend at least 2% of the state budget on high-tech development in the
upcoming time. (Vietnam Economic Times July 29 p4, Pioneer July 29 p13)
Health & Environment:
Vietnam Reports 4,143 Acute Diarrhea Patients in Jan-Jul
Vietnam has witnessed 4,143 acute diarrhea cases, including 649 cholera patients since
early this year, the An Ninh Thu Do newspaper said, citing the statistics of the Ministry
of Health (MoH).
In July, the country identified 441 residents contracting acute diarrhea in 18 provinces
and cities, 67 of them were tested positive to cholera virus, but no death was reported.
Dr Nguyen Huy Nga, head of the Health Provision and Environment Department under
the MoH, said the country saw a sharply increasing number of acute diarrhea cases with
rising food poisoning cases in northern Ha Nam, Nam Dinh, Hung Yen provinces in July.

95. Bad food hygiene and safety, germs from the relapsed disease were blamed for the main
reasons of the outbreaks, Nga added.
The ministry also said that Vietnam had 20,000 cases of dengue fever in the first seven
months of this year. Of those, the southern region recorded the highest number of cases
with 16,000, including 20 fatalities. (Capital Security Jul 30 p6, Pioneer Jul 29 p2, Young
People July 29 p1 & 17, Laborer July 29 p15, The People Jul 29)
AES Corp Starts Work on $2.2 Mln Sewage Treatment Plant in Central Vietnam
U.S.-based AES Corp, INTIMEX Co's Manioc Starch Factory July 28 kicked off the
construction of a $2.2 million sewage treatment plant in central Nghe An province, the
Thoi Bao Kinh Te newspaper said Wednesday.
The plant will help treat wastewater from the factory with a daily capacity of 200 tons
and collect used gas from product-drying and processing activities to save energy, the
paper said.
It is expected to be operated in September 2008. (Vietnam Economic Times Jul 30 p4)
JBIC Continues Helping Southern Vietnam Improve Environment
The Japan Bank for International Cooperation (JBIC) will set up a credit fund to help
improve environment in southern Binh Duong province, the bank's representative was
citied by the Vietnam News Agency as saying Wednesday.
The province has invested 1.6% of its total budget to protect environment in the
2007-2008 period, Tran Thi Kim Van, vice chairman of the provincial People's
Committee said on the occasion of her recent meeting with JBIC's representative.
JBIC has granted a preferential loan of JPY7.7 billion ($66.7 million) to build a $78.4
million wastewater treatment plant with a daily capacity of 17,650 cubic meters in a bid
to improve water environment of an area between the Dong Nai and Sai Gon Rivers in
the province. (Vietnam & World Economy Jul 30 p2, VNA)
Culture & Society:
Vietnam Enhances Communication Role in Child Protection
Awareness of laws and skills to protect children from being abused and subjected to
violence is still low, mainly attributed to the ineffective and loose coordination among
authorities, a conference was told July 29.
The conference, held in Hanoi by the Ministry of Labor, Invalids and Social Affairs, was
aimed to strengthen the communication’s role in preventing children from being abused
and to support street children and those having to work under unhealthy and dangerous
conditions.

96. “Many social organizations have taken actions to help solve the problem, but they have
not cooperated well. Campaigns are only carried out in a formal manner and efforts to
support specific cases have not been seen,” Dang Hoa Nam, deputy director of the
children’s department told the workshop.
Nam also added that financial issues also posed difficulties for local offices to carry out
communication campaigns on the problem.
The conference heard that over the past three years, there have been 450 cases of child
abuse reported in Hanoi and 200 cases in Ho Chi Minh City.
Mass media bodies have run some 565 articles in newspapers, televised over 2,600 news
shows and broadcast 202 programs on radio and television on the issue. (Vietnam News
Jul 30 p3, The People p7)
Stock Market:
Vietnam Airlines May Delay Share Sale
The national air carrier - Vietnam Airlines- will probably postpone its plan to sell
between 10% and 20% of its stake to foreign strategic partners until next year due to the
domestic fuel price hike and stock market fall, the Times newspaper said.
The sale may be delayed further if the Vietnamese economy continues to decline.
The country's economy has seen many difficulties since early this year, with CPI rise of
27.04% from a year ago and trade deficit estimated at $15.01 billion in Jan-Jul. The
government's tightened monetary policy has aimed to curb soaring inflation, but created
great challenge for local enterprises.
Vietnam Airlines suffered from a loss of VND83 billion (some $5 million) in the first six
months of this year due to the price hike of oil, state media reported.
The carrier has adjusted its flight schedule since early this year, which helped it save
3,000 tons of fuel worth VND90 billion, including 2,000 tons in June. Its plan to launch
its direct flight to the U.S has also likely been postponed again.
Vietnam's government has recently raised retail petrol price by more than 30%, making
great hindrance for transport sector.
The stock market, meanwhile, has lost over 50% so far this year, making many share
sales and IPOs fail. Fund managers with significant portfolio exposures to Vietnam say
that the past few months have been dreadful, the Times said.
(http://business.timesonline.co.uk Jul 28, www.impactpub.com.au Jul 29, Stock News Jul
29)

97. PetroVietnam to Continue Buying Stake in GP Bank
The Vietnam Oil & Gas Group (PetroVietnam) said it would continue acquiring
additional stake in the Global Petroleum Commercial Joint Stock Bank (GP-Bank) after it
officially announced Tuesday to withdraw from Hong Viet Bank.
The group, which is holding a 9.5% stake in GP Bank, will buy extra shares in the bank's
next share sale to increase its registered capital, the Labor newspaper reported.
"Our move complies with the two sides' strategic cooperation contract signed in 2006 that
framed clear roadmap for PVN to increase stake in the lender," the group said.
PetroVietnam added that the decision to divest capital in Hong Viet Bank is to help curb
inflation and slash public investments in line with the government's requirements. So, the
procedures to set up and operate Hong Viet Bank will be decided by other shareholders.
Previously, PVN contributed VND1 trillion to Hong Viet Bank out of total VND2.5
trillion from all founding shareholders. Hoa Phat Group then pulled out its VND300
billion from the establishment. (Labor Jul 30, Vnexpress Jul 30)
SaigonTel Stakes 51% to Establish Communication Firm
The Ho Chi Minh City Stock Exchange (HOSE) announced that Saigon
Telecommunication and Technologies Corp (SaigonTel, coded SGT) would contribute a
51% stake to setting up VTC-SaigonTel Communication Corporation (VSM Corp).
VSM has a registered capital of VND160 billion ($9.7 million) with three founding
shareholders including SGT, Vietnam Multimedia Corporation (VTC) with a 29.8% stake
and Kinh Bac Urban Development Joint Stock Company (KBC) with a 19.2% stake.
The new firm will specialize in producing 24/24h television programs related to domestic
and international economic information, financial analysis, stock market and
entertainment on VTC's analog channel.
Currently, the total advertisement costs on Vietnam's television system are estimated at
$400 million per year, SaigonTel said, expecting VSM will bring added value to its
shareholders.
SGT, the HCMC-based IT developer and Internet service provider, now has a registered
capital of VND450 billion. It has recently joined hands with Taiwanese Teco Group to
build $1.2 billion Software Park in HCM City.
In 2007, its revenue soared 13 folds and its net profit was up 8 folds on year. (Vietnam
Economic Times Jul 29 p8, CafeF Jul 29)

98. Jul 30: Vietnam Shares Climb Up on Buying in Blue Chips
Vietnam's shares ended higher Wednesday for a third day in a row on local buying in
blue chips amid optimism that inflation would not rise fast in the coming months as
global crude oil prices are falling.
“Local players continue to buy shares with expectation that the government will be able
to restrain inflation because it is making further efforts to control domestic prices,” a
Hanoi-based player said.
Sentiment is also boosted after state media said prices of paddy in Mekong Delta are
decreasing, he added.
“Many investors agree with a brokerage firm when it recently forecast the key index at
between 560 and 600 at the end of this year,” the trader said.
VN-Index today rose 3.87 points, or 0.87%, at 448.27.
Market volume was 19 million shares valued at VND664.6 billion Wednesday, up from
13 million shares valued at VND369.6 billion Tuesday.
STB, the most active stock today, fell 0.4% at VND23,500 on 4.3 million shares
changing hands.
DPM, the second most active stock, rose 1.8% at VND56,000 after trading 2.9 million
shares, of which foreign investors bought 951,140 shares and sold 7,400 shares.
PET jumped up 2.6% to close at VND23,400 on 758,460 shares, including 129,630
shares bought and 500 shares sold by foreigners.
REE gained 2.9% at VND32,200 on 622,970 shares, with foreign investors buying
40,420 shares.
DHA is the most advancer, rising 3% at VND27,600 on 198,360 shares.
SSI, meanwhile, fell 3% at VND42,200 on 610,680 shares, of which foreign players
bought 18,970 shares and sold 13,610 shares.
In total, 63 stocks closed higher, 83 lower and nine unchanged.
All four fund certificates closed lower. (HOSE July 30)
Vietnam News
July 29, 2008
Inter-bank Forex Rate: $1=VND16,498

99. Banking & Finance:
Toyota Vietnam Allowed to Set up Financial Arm
Japan’s Toyota Vietnam has received a license from the State Bank of Vietnam to set up
a one-member liability financial company in the country.
The company, namely Toyota Finance Services Vietnam Company Limited (TFSVN),
has a registered capital of VND300 billion ($18.8 million) and lifespan of 50 years.
The Ho Chi Minh City-based company is allowed to issue bills, bonds, certificates of
deposits and other valuable papers to raise funds from domestic and foreign individuals
and organizations.
TFSVN will also provide credit for individuals and agents to buy cars of Toyota and
consumer guarantee services.
Toyota Motor Vietnam has been operating in Vietnam for 13 years and become the
leading automaker in the country now. The firm announced the sale of its 100,000th
vehicle in May 2008. (SBV Jul 29, VnEconomy Jul 28)
Australian Audit Firm Opens Rep Office in Hanoi
CPA Australia, the world's sixth biggest professional accounting body, has recently
inaugurated a representative office in Hanoi to start official operation in Vietnam next
month, state media reported.
The move is in response to membership growth and increasing demand for qualified
accountants in Vietnam, said PA Australia President Alex Malley at the inaugurating
ceremony on July 26.
CPA Australia will be working closely with local professional bodies and regulatory
agencies, such as the Ministry of Finance to build the capacity, competence and
independence of the accounting profession in Vietnam.
More than 100 CPA Australia members have been working in Vietnam but the number
needed to increase significantly if the accounting profession was to keep pace with
Vietnams expanding economy, Malley said.
CPA has also been licensed to open a representative office in Ho Chi Minh City, he said,
adding the Business Development Manager will be working there from early August.
(Labor Jul 28 p7, Vietnam Economic Times Jul 28 p4)
Vietnam Fulfills 66.7% State Budget Revenue Target

100. Vietnam’s state budget revenues are estimated to reach 66.7% of the yearly projection as
of mid July, reported the General Statistics Office (GSO).
Collection from domestic taxes accounted for 61.9% of the annual plan, from crude oil
for 71.2% and from import-export taxes for 75.8%.
Among domestic revenues, collection from the state-owned economic sector fulfilled
59% of the yearly estimate, from the foreign invested sector, excluding crude oil, 52.7%;
from the non-state industrial and trade sector 59.7%, from personal income tax 75.5%,
from gasoline fees 53.2% and other fees and charges 55.4%.
The state budget expenditure is estimated to represent 56.8% of the annual estimate.
Spending for development investment made up 48.7% of the whole year plan, for
infrastructure development 47.5%, for development of socio-economy, national security
and administration 57.5% and for debt and assistance payment 57.7%.
Vietnam’s National Assembly late last year approved the plans to collect state budget
revenues of VND323 trillion ($20.187 billion) and expenditures of VND398.98 trillion
($24.93 billion) this year. (GSO Jul 28)
Vietnam Learns about India’s Export Credit Insurance Experiences
The Vietnamese inter-ministerial delegation led by Head of the Export-Import
Department Pham The Dung has paid a week-long visit to India started July 24 to study
export credit insurance, the Nhan Dan (People) newspaper reported.
During the stay, the delegation has worked with the Indian Industry and Trade Ministry,
the Union of Export Organizations, the Export Credit Insurance Organization, the Central
Bank, the India Chamber of Commerce and Industry, and many organizations and
enterprises at New Delhi and Mumbai.
Vietnam is a stable market and most enterprises ensure payment on time to maintain their
prestige. For the past five years, only two Vietnamese-related cases were dealt by the
Export Credit Insurance Organization, noted Indian organizations and businesses.
Apart from exchanging experiences in export credit insurance, the two sides also
discussed trade. Indian businesses said they wish to be provided with more information
on Vietnam’s politics and economy.
Indian businesses, especially those who are doing their business in Vietnam, showed
interest in measures the Vietnamese government has taken to curb inflation, stabilize the
economy and maintain a healthy investment environment for foreign investors.

101. The Ministries of Industry, Trade and Finance are working on a plan to set up a company
to provide credit insurance in order to help exporters and banks mitigate risks from
unpredictable fluctuation of major currencies commonly used in international trade.
Statistics from the MoF's Insurance Department showed that local enterprises have
bought export credit insurance for only 3%-5% of their exports. (The People Jul 29 p7,
VNA Jul 28)
Vietnam Int'l Bank Launches New E-banking Services
Vietnam International Bank (VIB Bank) on July 28 launched new e-banking services
called VIB4U, targeting customers who are connected to the internet, the Tuoi Tre
newspaper reported today.
VIB Bank’s www.vib4u.com.vn and www.vib.com.vn websites now offer external
network payments, regular money transfers, international money transfer, opening and
adjusting L/C, debt clearing and proposals for account disbursement.
“E-banking is the common development trend of Vietnamese banks and VIB aims to
bring optimal e-banking services to its customers,” VIB bank’s Deputy General Director
Duong Quang Khanh said at the launching ceremony.
The services will be made available to customers in Vietnam’s five major cities,
including Hanoi and Ho Chi Minh City.
VIB Bank is guaranteeing super security in its e-bank services, which they say apply the
most advanced e-banking technology available worldwide.
VIB Bank also plans to launch e-lending services and cooperate with other web
companies to operate online shopping. (Youth Jul 29 p15, Economy & Urban Jul 29 p5)
Trade:
Vietnam’s Retail Sales Surge 29.8% to $33 Bln in Jan-Jul
Vietnam’s total retail sales of goods and services are estimated at VND527.5 trillion ($33
billion) in the first seven months of 2008, representing a growth of 30% on year, the
General Statistics Office (GSO) reported Monday.
Per capita spending in the period was VND886,000 a month on average, doubling the
VND438,000 monthly spending in 2007.
The trade sector made the greatest contribution in retail sales with revenues of VND434.8
trillion, or 82.4% of total, up 30.2% on year.

102. The hotel and restaurant sectors saw a sale growth at 24.9% to VND59.5 trillion, the
service sector at 30% to VND26 trillion, and the tourism sector posted the highest growth
at 47.6% to VND7.2 trillion.
The individual economic sector is the biggest seller with revenues of VND295.7 trillion,
making up 56% of total and representing an increase of 32.9% on year.
The runners-up are the private sector with sales of VND153.5 trillion, the state-owned
sector with VND59.9 trillion, the foreign-invested sector with VND12.9 trillion, and the
collective sector with VND5.5 trillion. They witnessed an on-year growth of 35%, 6.2%,
32.1% and 34.5%, respectively.
The high growth of retail sales is mainly attributed to the surging prices of goods and
services.
The country’s consumer price index (CPI) is estimated to rise 19.78% in July from the
beginning of this year. (GSO Jul 2008)
Vietnam, Chile Want to Sign Free Trade Agreement Shortly
Vietnam attaches an importance to negotiations of bilateral free trade agreement with
Chile and wants to learn experiences of the Latin American country in international
economic integration process, the Vietnam National Assembly’s official said July 28.
National Assembly Vice Chairwoman Tong Thi Phong received a delegation of Chilean
parliamentarians led by Vice President of Chamber of Deputies, Jorge Ulloa in Hanoi.
Speaking with the guests, the chairwoman affirmed the Vietnamese NA supports the
establishment of a joint government committee and hoped the two sides would soon hold
the first meeting of the committee to boost economic, trade and investment relations and
find out cooperation fields.
The Chilean legislator, in return, said Vietnam is one among Asian dynamic economies
and a gate for Chilean exporters to ship their goods to the region.
Chile is willing to work as a bridge for Vietnam to enter the Latin American market, and
in return, wants Vietnam to help Chile open the Asian market’s door, he said.
They agreed that the two legislative bodies should boost the exchange of delegations as
well as increase the mutual coordination at the Inter-Parliamentary Union and regional
inter-parliamentary forums.
During the visit to Vietnam from July 25-31, the Chilean guests plan to have working
sessions with leaders of some Vietnamese ministries and sectors and visit a number of
localities.

103. The bilateral trade between Vietnam and Chile has constantly increased over the past
three years, hitting $161 million in 2006. The figure is predicted to reach $300 million in
2010. (VNA Jul 28, Youth Jul 29 p1, New Hanoi p8)
Germany Becomes Vietnam Second Biggest Coffee Importer
Germany has become the second biggest coffee importer of Vietnam, the Dau Tu Tai
Chinh (Financial Investment) newspaper said.
Last year, the western European country imported 234,000 tons of Vietnamese coffee out
of 1.1 million tons it imported. The newspaper did disclose the comparative figure.
Vietnam is targeting $2 billion coffee export revenues this year, Luong Van Tu, chairman
of the Vietnam Cocoa and Coffee Association (Vicofa) said, adding the global coffee
demand will increase by two million 60-kilogram bags a year.
In the seven months this year, Vietnam shipped abroad 662,000 tons of coffee, or 11
million 60-kg bags of coffee valued at $1.383 billion, down 26% on year in terms of
volume but up 3.8% in terms of value, General Statistics Office said.
Currently, Vietnamese 5% broken robusta coffee of class 2 is trading at $2,145-
$2,150/ton, FOB, for spot delivery contracts.
Vietnam now has around 500,000 hectares under coffee cultivation, exporting 850,000
tons of coffee to 70 countries and territories worldwide yearly. (Financial Investment Jul
28 p15, Vietpan Database)
Vietnam Imports $1.83 Bln of Autos & Spare Parts in Jan-Jul
Vietnam is estimated to have spent $1.83 billion importing automobiles and auto spare
parts in the first seven months of this year, up 199.4% on-year, the government statistics
showed.
The country bought 43,000 finished automobiles worth of $812 million from January to
July, up 290.1% in volume and 265.1% in value on-year, according to the statistics.
Concerns about further increases in imported duties saw domestic car traders rush to
import autos, pushing the volume of imported vehicles up sharply in January-July period,
The tax on imported new cars was increased twice in April, from 60% to 70% and then to
83%.
Higher auto import taxes combined with sky-high lending interest rates have bitten the
auto business this year, leaving dealers with packed showrooms but few customers. (GSO
July Edition, Vietpan)

104. Vietnam to Launch Foreign Market Portal in Aug
The Vietnamese Ministry of Industry and Trade (MoIT) will officially inaugurate the
foreign market portal at www.thitruongnuocngoai in late August, Vietnam Economic
Times newspaper reported.
The move aims to help domestic enterprises have more access to information on foreign
countries and territories worldwide, said the ministry, adding that it will also help to
boost the country’s export turnover.
Around 60 Vietnam Trade Offices abroad will upload market-related information on the
portal.
Vietnam is estimated to earn $36.87 billion from exports in the first seven months of this
year, up 37.7% on-year, and imports $51.88 billion worth of commodities, up 56.8%.
The nation’s imports are forecast to increase 31% on-year to $80.2 billion this year, lower
than $85.7 billion target set by the government, while the country will attain an on-year
export growth of 26% to $61.2 billion, said the ministry. (Vietnam Economic Times Jul
29 p3, GSO Jul 2008)
Industry:
Vietnam’s Crude Oil Production Down 6% to 8.56 Mln Tons in Jan-Jul
Vietnam is estimated to have produced 8.56 million metric tons of crude oil in the first
seven months of this year, down 6% on year, said the General Statistics Office (GSO).
In July, the country’s crude oil production is forecast to reach 1.21 million tons, down
5.1% on year, the office said.
The fall in crude oil volume is mainly due to lower production at Bach Ho, the country's
biggest oilfield, a source from the Vietnamese Ministry of Industry and Trade said.
Between January-July, Vietnam is estimated to produce 4.43 billion cubic meters of
natural gas and 145,000 tons of liquefied petroleum gas (LPG), down 0.2% and 18.7% on
year, respectively, the GSO said.
GSO said that Vietnam is the third largest crude oil producer in Asia, exporting 7.8
million metric tons of crude oil valued at $6.8 billion in the first seven months of this
year, up 52.2% on year in value and down 12.1% on year in volume. (GSO Jul 2008)
Vietnam Industrial Production Up 16.4% to VND382.34 Tln in Jan-Jul

105. Vietnam is estimated to make total industrial production value of VND382.34 trillion
($23.17 billion) in the first seven months this year, up 16.4% on-year, reported the
General Statistics Office (GSO).
July’s industrial production is VND56.42 trillion, a rise of 16.1% on-year, the office said.
Of the total value, the state-owned sector contributes VND86.78 trillion, up 6.7% on-
year; the private sector VND136.88 trillion, an on-year increase of 22.2%; and foreign-
invested enterprises VND158.67 trillion, up 17.3% on-year.
Industrial production has faced many difficulties in the period, especially the soaring
input costs due to the price hikes of materials and fuels.
However, many industries obtain high growth in the seven-month span. For example,
lorry makers generate an on-year growth of 96.2%, passenger car 78.6%, washing
machine 54.2% and powdered milk 36.6%.
Meanwhile, the leatherette footwear industry sees the sharpest reduction at -40.6%,
followed by LPG at -18.7% and crude oil -6%.
All big cities and provinces, except southern Ba Ria-Vung Tau province, reportedly enjoy
a positive industrial growth in the January-July period.
Northern Vinh Phuc province takes the lead with growth of 30.9%, followed by the
northern province of Ha Tay with 25.4% and southern Binh Duong province ranks third
with 24.4%.
The country’s two biggest cities of Hanoi and Ho Chi Minh City achieve growths of
14.7% and 13%, respectively. (GSO July 2008)
WB Funds $6 Mln for Rural Energy Project in Vietnam Central Province
The World Bank has recently funded $6 million for central Binh Dinh province to carry
out Rural Energy Project Phase II (REII), the Vietnam Economic Times newspaper
reported July 29.
The WB has approved 26 communes in the province that have downgraded power grids
to join the REII.
RE II, which spans between 2008 and 2009, costs a total of $327.8 million, including
$220 million from the WB, and $5.25 million from the Global Environment Fund.
RE II will benefit 1,200 communes in 30 cities and provinces across Vietnam, which is
expected to reduce the power leakage rate in rural areas from current between 20% and
30% to 10%.

106. The bank has committed to provide $800 million a year to Vietnam over the next five
years. (Vietnam Economic Times Jul 29 p3)
Indian Firm to Provide Equipment for Nam Chien Hydropower Plant
Indian Bharat Heavy Electricals Limited (BHEL) July 28 clinched a deal with a
Vietnamese firm to provide electro-mechanical equipment for 200-MW Nam Chien
hydropower plant, said Nguyen Van Quan, general director of Nam Chien Hydropower
Joint Stock Company.
BHEL will also help the Vietnamese partner train technicians for the hydropower project,
the official said.
The two-turbine hydropower plant is under construction on the Chien Stream in Ngoc
Chien and Chieng Muon communes, Muong La district of northern Son La province.
Broken ground in the late of 2007, the plant with a total investment of VND4.1 trillion
($248.48 million) is expected to generate 814 million kWh of power per annum once
fully operational.
BHEL is willing to join hands with other Vietnamese state-owned companies to set up
joint ventures for producing boilers and hydropower equipment in Vietnam.
The Indian government signed an agreement early this year to provide a credit package
worth $45 million to help Vietnam build the plant.
Vietnam plans to raise the total capacity of hydropower generation projects to more than
18,000 MW and the annual output of over 80 billion kWh by 2015, under the national
power development plan through 2015 and span to 2025, or plan VI. (Vietnam & World
Economy Jul 29 p1, Vietpan)
Agriculture:
Cashew Exports Up 50% to $490 Mln in Jan-Jul
Vietnam is estimated to have fetched out $490 million from exporting 81,000 tons of
cashew nuts in the first seven months of 2008, up 50.1% on year in value despite a very
slight rise of 2.2% in volume, a report of the General Statistics Office (GSO) showed.
However, Vietnamese cashew nut processing and exporting companies thought they will
not be able to fulfill their target at $825 million export revenues in 2008 as almost all of
them are seriously lacking material, according to the Vietnam Trade Information Center.
Decreased cashew output due to unfavorable weather in southern and central highlands
provinces will hit local processing companies, the Vietnam Cashew Association
(Vinacas) said, adding that the serious shortage will occur in the fourth quarter of 2008,
and early 2009.

107. To ease the shortage, local companies had to import around 150,000 tons of cashew nuts
from Cambodia and Africa countries in the first six months of this year. But increased
cashew import prices also worries the companies.
Nguyen Duc Thanh, acting chairman of the Vinacas, said cashew import prices soared
from $820 a ton late May to $900-$1,300 a ton early June.
“Quality of imported cashew is much lower than Vietnamese,” Thanh noted.
Thanh added that Vietnamese companies are now facing with difficulties caused by
increase of dollar value, and high lending rates.
He said production costs rose 40%, of which material cost soaring 40%, labor, 30%-35%,
and other costs rising 30% to 35%, but cashew export prices surged only 25%-30%.
(Vinanet July 28)
Vietnam Exports $2.343 Bln Seafood in Jan-Jul
Vietnam is estimated to have exported $2.343 billion worth of seafood products in the
first seven months of 2008, an on year rise of 17.7%, according to latest report of the
General Statistics Office (GSO).
The GSO said in July, the country’s export revenue from seafood was $430 million, up
from $380 million in June.
The report showed that in July 2008, Vietnam’s aquatic product output was around
427,500 tons, up 15% against the same month of last year. The total included 251,000
tons from aquaculture farms, up 21.5%; and 176,500 tons from fishing vessels, up 2.7%.
The figures brought the country’s total aquatic product output in the first seven months of
2008 to more than 2.55 million tons, up 11.4% on year, including 1.986 million tons of
fish (+14.1%), and 231,600 tons of shrimp (+1.5%).
Of the total, aquaculture farms contributed 1.296 million tons, up 25%, while fishing
vessels contributing 1.255 million tons, up 0.1% from the first seven months of 2007.
According to the report, Vietnamese fishery sector is now facing with difficulties
resulting from increased aquatic feed prices, but decreased seafood export prices, and
soared fuel prices.
Currently, total volume of fish unmarketable in Mekong Delta provinces are still big,
including 25,000 tons in An Giang, 27,000 tons in Dong Thap, 12,000 tons in Can Tho,
and 11,000 tons in Kien Giang.

108. Meanwhile, hundreds of fishing vessels in the Mekong Delta are idle because of recent
petrol hikes. Oil prices for fishing ships on July 21 went up VND2,000 a liter to
VND20,000 a liter. (GSO July Edition)
Mekong Delta Introduces 9 Good Paddy Varieties
Agricultural experts in Mekong Delta region have selected nine good paddy varieties out
of total 132 that are expected to help increase paddy quality and productivity in
Vietnam’s granary, the Vietnam Agriculture reported.
The varieties, cultivated in the 2007-2008 summer-autumn crop, include OM6073,
OM5199, OM5451, OM6072, OM5464, OM5472, OM5453, OM4088 and OM2474.
They will replace current varieties like IR50404 that are weak at resisting pest insects.
As of middle July, localities nationwide have cultivated 988,400 hectares of paddy,
including 836,200 hectares in the north, and 152,200 hectares in the south.
Southern region have cultivated more than 1.93 million hectares of summer-autumn crop,
up 5.5% on year, including 1.69 million hectares in Mekong Delta provinces.
But according to the Plant Protection Department, brown planthoppers have damaged
nearly 220,000 hectares of paddy in the region, including 192,000 hectares of summer-
autumn crop.
Meanwhile, more than 2,500 hectares are getting stun-leave disease.
In the first seven months of this year, Vietnam imported $323 million worth of pesticide,
up 48.5% from the same period of 2007, according to the General Statistics Office
(GSO). (Vietnam Agriculture July 29 p11, GSO July Edition)
Japan Helps Recover Mangrove Forests in Central Vietnam
Forty specialists of the Japan Action for Mangrove Reforestation (ACTMANG) attended
the Japan-Vietnam afforestation program from July 25 to 27 to help recover four hectares
of mangrove forests in central coastal Khanh Hoa province, the Vietnam News Agency
said.
The program was carried out by the ACTMANG, Tokio Marine Co, the Center for
Research of Environment and Natural Resources under the Hanoi National University
and Khanh Hoa province.
The program aims to recover mangrove forests in countries coping with risks of saline
intrusion into the mainland.

109. It has helped grow over 2,500 ha of mangrove forests in Vietnam since 1992, including
20 ha in Khanh Hoa province. (Vietnam & World Economy Jul 29 p4)
Business:
Sacom Breaks Ground on $134-Mln Resort in Central Highlands
The Cable and Telecommunication Materials Corporation (Sacom Corp.) under the
Vietnam Posts and Telecommunications Group (VNPT) July 28 started construction on a
$134-million resort in Central Highlands Lam Dong province, state media said.
Sacom, headquartered in Bien Hoa Industrial Park 1 in southern Dong Nai province, will
build the resort on a site of 270.88 hectares at Dalat town’s Tuyen Lam Lake Tourist
Park, the Young People newspaper reported.
The company will build an 18-hole golf course, a 400-room five-star hotel, a 150-room
four-star hotel, the paper said.
The resort will also house 400 villas and entertainment facilities, golf and yacht clubs, a
trade centre and a water park area.
According to Sacom General Director Do Van Trac, the villas and the golf courses are
expected to begin operation in late 2010, while work on the entire projects is due to be
completed at the end of 2011.
He added that Sacom’s project will be the largest among 32 registered projects in Lam
Dong so far.
Lam Dong province has to date licensed 32 projects valued at VND5.5 trillion ($327.8
million) to invest in the Tuyen Lam Lake Tourist Park, located six kilometers from Dalat
town.
The province, 308 kilometers from Ho Chi Minh City, has great potentials for tourism
development with a convenient climate, together with splendid landscapes and cultural
resources.
The number of visitors to the province is estimated to reach 700.000-800.000 per year,
including 10% foreigners. Hotels and guest houses see a capacity of 20.000 visitors per
day. (Vietnam News Agency Jul 28, Thanh Nien Daily Jul 29 p6, Vietpan Database)
High Demand Continues Pulling Paper Prices Up
Prices of papers will continue soaring next year due to high demand of domestic market,
the Vietnam Trade Information Center (VTIC) said on its Web site, citing the Vietnam
Pulp and Paper Association (VPPA).

110. The association said at a meeting it is seeking way to reduce paper shortage in the
remaining months of this year that Vietnam needs around 130,000 tons of printing paper
in 2008, but domestic supply can meet only 54%.
The VPPA said prices of writing paper and notebook will continue surging, calling on
local companies to boot imports in order to ensure sufficiency for growing domestic
demand in the upcoming school year.
The Vietnam Paper General Company promised to offer 70,000 tons of paper, while Tan
Mai Paper JSC pledging to provide 42,000 tons of printing paper and 25,000 tons of
writing paper to the market from now to the end of 2008.
The association forecast Vietnam’s demand for printing paper will rise by 30% in 2009,
to around 165,000 tons, of which 60,000-80,000 tons will be imported. The country’s
demand for writing paper will be 461,000 tons, with 380,000 tons will be locally
produced.
Vietnamese paper companies said it will have to raise paper prices, but promising to keep
the prices some 10% lower than imports’.
In the first seven months of 2008, Vietnamese companies spent $472 million importing
585,000 tons of papers, up 40.6% on year in value and 23.7% in volume, according to the
General Statistics Office (GSO). (Vinanet July 29, GSO July Edition)
Vietnam Fashion Fair 2008 to Open in HCMC
More than 100 local and international clothing companies will take part in Vietnam
Fashion Fair 2008 in Ho Chi Minh City tomorrow [July 29], the Vietnam News Agency
reported.
The Vietnam National Textile & Garment Group (Vinatex), the Vietnam Textile &
Apparel Association (Vitas) and Hong Kong Company CP Exhibition will jointly
organize the event which will feature 240 stalls displaying the latest industry wares.
They hope the four-day fair will encourage local garment companies to develop new
partnerships and create promotional and marketing options at home and abroad.
The event’s theme is Integrating and Developing in the Global Economy, said Nguyen
Huu Binh, Vinatex deputy director.
Vietnam Fashion Fair 2008 is expected to bring together Vietnamese and foreign
businessmen, and provide them with more opportunities to understand each other and
further business relationships, he said.

111. More than 60 international commercial delegations from import markets, such as
Australia, China, the Republic of Korea, Japan, Russia and the U.S., will participate in
the fair.
Binh said this year the fair will include 14 local companies from the Vietnam Leather &
Footwear Association (Lefaso) displaying new materials and production lines in
footwear.
“Both garment and footwear industries are facing difficulties to develop their business in
foreign markets. Through the fair, we can work together and find new chances,” said
Lefaso secretary general Nguyen Van Khanh.
One of the fair’s highlights is a fashion show and dinner gala to premiere the latest
collections from seven young designers working for industry leaders in Hanoi and HCM
City, including Viet Tien, Viet Thang, Hanosimex, Toan Thinh, HG. Victory, Phuong
Dong and MAY 10.
The organizers expect to draw 70,000 visitors. The fair will open at 9 am on Wednesday,
at 446-518 Hoang Van Thu Street, Tan Binh District. (VNA Jul 29)
Honda Vietnam Rolls Out its 5 Millionth Bike
Honda Vietnam has recently rolled out its five millionth motorbike at its plant in the
northern province of Vinh Phuc after twelve years of production, the Vietnam News
Agency reported.
The Japanese-invested firm, which produces motorbikes, scooters, and sedans in
Vietnam, last year pumped $60 million to its second factory to specialize in producing
scooters.
The $290-million company, a joint venture between Honda Motor of Japan, Asian Motor
of Thailand and the Vietnam Engineering and Agricultural Machinery Corporation, sold
600,000 motorbikes in the first half of this year.
Honda Vietnam expects to sell 1.3 million motorcycles in Vietnam this year, up from 1.1
million units last year.
Honda Vietnam remains the largest motorbike manufacturer in Vietnam. It held 38% of
market share in 2007.
It plans to put into operation the second motorbike manufacturing plant with an annual
capacity of 500,000 units late this year.
The company now has 365 authorized sale agencies nationwide. (VNS Jul 29 p16)

112. Thousands of Vietnam Websites Hacked Last Weekend
More than 10,000 websites with the domain “.vn” have been out of action for more than a
day after the hosting company’s websites were hacked last weekend, the Thanh Nien
newspaper reported Tuesday.
Most of the websites were believed to belong to associations and enterprises in Vietnam
that subscribed to the domain via PA Vietnam, the country’s second biggest provider of
hosting, server and co-location services.
People trying to access the PA Vietnam websites (pavietnam.net and pavietnam.com)
were forwarded to or were directed to international search engines.
According to technicians from PA Vietnam, the company’s websites had been hijacked,
with the administration of the websites transferred to www.onlineic.com.
“It is believed the hackers broke in through a hole in DNS to control the administration,”
said VNCERT Technican Branch Chief Do Ngoc Duy Trac, adding that the hackers had
modified all domain name systems (DNS) of the websites, which crashed the websites
that used the company’s DNS services.
All crashed websites may have lost important information, said the Vietnam Computer
Emergency Response Team (VNCERT), recommending Vietnam Internet Network
Information Center (VNNIC) and other internet service providers (ISPs) assist the
recovery work.
PA Vietnam Ltd, which is affiliated to the Ministry of Information and Communications’
National Domain Center, is one of the companies that provide the “.vn” domain.
Statistics from VNNIC showed PA Vietnam was hosting more than 9,700 active
domains, accounting for 14.39% of the domestic market.
Last month, more than 2,600 computer viruses new to Vietnam attacked around 5.5
million computers in the country.
In 2007, about 90,000 computers in Vietnam were infected with a virus each day, causing
the country’s computer users a total loss of VND2.4 trillion ($150 million). (Youth July
29 p2, Young People July 29 p3, Pioneer July 29 p1, Thanh Nien Daily July 29 p3)
Politics & Law:
France Proposes Closer Ties with Vietnam in Global Food, Energy Crisis
Vietnam and France need to further boost cooperation in addressing global challenges,
particularly food and energy crisis, French Senator President Christian Poncelet has made
the call during the meeting with Vietnamese national assembly speaker.

113. Vietnam, the second biggest rice exporter in the world, and France, also a big cereal
shipper in EU, should deepen cooperation in ensuring food security, Vietnam News
Agency said Monday.
France highly appreciates the role of non-permanent United Nations Security Council and
clear stance on anti-nuclear activities for military aims, the French Senator President said,
highlighting that the European country wants to beef up ties in health, clean water, and
child adoption.
France as EU presidency will convince the bloc to recognize Vietnam’s market economy,
he said.
President Poncelet recommended that with great hydropower potentials, Vietnam should
diversify energy sources such as wind-to-power, solar power to meet its rapidly
increasing demand.
In return, the Vietnamese national assembly speaker said that Vietnam wants to learn
experience and high technology from France in environmentally-friendly production,
governance, finance, banking, stock market and anti-inflation.
Recently, EU member-countries have reached a common consensus in Brussels to end
the Generalized Systems of Preferences for Vietnamese shoes effective from early next
year to 2011.
Vietnam expects to export $10.4 billion worth commodities to the European Union (EU)
this year, an on-year rise of 23.5% this year, the Ministry of Industry and Trade said.
(Vietnam News Agency Jul 28, Vietpan Database)
Vietnamese Deputy PM Meets with Malaysian Trade Minister
Vietnamese Deputy Prime Minister Hoang Trung Hai July 28 received Malaysian
Minister of Industry and Trade Muhyiddin Mohd Yassin at the Government Office to
share experience and boost bilateral cooperation ties, local media reported.
Two-way trade has increased 10 folds over the past decade, Hai said, adding that
Malaysia, which leads ASEAN countries in investments in Vietnam, has great potential
for cooperation with Vietnam in the fields of petrol and oil, manufacturing and energy.
Mr Hai hoped that Vietnam and Malaysia will further exchange experience in shifting the
industrial structure.
For his part, Mr Yassin said he was impressed by Vietnam’s recent socio-economic
achievements, especially in the fields of agriculture, industry and international
integration.

114. While focusing on strengthening educational establishments to provide high-skilled
workers for industries, especially high-tech ones, Malaysia also wants to promote
cooperation with Vietnam in the industrial and commercial fields, he added.
Vietnam has incurred trade deficit with Malaysia for years, said the Ministry of Industry
and Trade, adding that its major imports from the ASEAN country include chemicals,
electronic products, iron and steel products, transport equipment, textile and clothing.
The country earned $627.86 million from goods exports to Malaysia in the first four
months of this year, said the ministry. (The People Jul 29 p1, Vietnam & World Economy
Jul 29 p2, VOV Jul 28, Vinanet)
Labor & Education:
EU, ILO Help Vietnam Develop Human Resources
The European Union and the International Labor Organization (ILO) will contribute the
majority of $18.3 million project to develop human resources in Vietnam by 2010, the
Cong An Nhan Dan newspaper reported.
The project will focus on strengthening local capacity in labor market planning,
improving information sources, addressing localities’ demands and training lecturers.
Branching out into vocational training schools and employment centers in 15 provinces
and cities, the project will approach local job hunters and seek recruitment information in
order to profile the country’s labor supply and demand, and provide consultancy in
vocational training.
It will also conduct research on the labor demands of trades and economic sectors.
The 15 provinces and cities benefiting from the project are Hanoi, Hai Duong, Bac Ninh,
Phu Tho and Ninh Binh provinces in the north, Ha Tinh, Lam Dong, Dak Lak, Quang
Ngai and Danang in the central, and Ho Chi Minh City, Long An, Can Tho, Dong Nai
and Ben Tre provinces in the south.
“Vietnam’s human resources have been increasingly improving with 35% of the
workforce having received training. However, there have been physical and intellectual
limitations in the workforce,” Minister of Labor, War Invalids and Social Affairs Nguyen
Thi Kim Ngan said at the project launching.
In response, Director of the Vietnam ILO office, Rie Vejs-Kjeldgaard, said that just like
other Asian economies, Vietnam has a major challenge in narrowing the gap between
professional skills needed by enterprises and those provided by the educational system.
Vietnam now has more than 2,000 vocational training centers which have been actively
reforming their curriculum and opening courses in new trades to meet business demands.

115. The country plans to earmark VND7.6 trillion ($475 million) from the state budget for
the development of vocational training by 2020 with the ambition to increase the ratio of
trained workforce to 55%. (People’s Police July 29 p14, The People July 29 p8, Vietnam
Economic Times July 29 p1, News July 29 p5)
800 Taxi Drivers Strike in Hanoi After Gasoline Price Hikes
Nearly 800 taxi drivers of the Hanoi Tax Company went on strike July 27 and 28 as they
lose VND40,000 per 100 kilometers due to unfair profit sharing after gasoline prices
soared 31% to VND19,000 from Jul 21, the Ministry of Information and Communication-
run VietnamNet newswire said Tuesday.
“We charge VND500,000 per 100 kilometers on average, however, receive only
VND160,000 with the 35%/65%-sharing profit ratio, which means that we lose
VND40,000 because our tax company owner calculate a taxi consumes only eight liters
of gasoline, but in fact it needs 10-12 liters to run,” Lam Hoang Anh, a taxi driver said.
They also said that they did not receive a 2% petrol allowance as pledged by the
company, the newswire said.
Meanwhile, Le Duc Trung, vice director of the firm refused to comment.
So far ten taxi companies said they have increased 10%-15% of taxi charges while others
said they will raise the charges from early August.
The Hanoi Taxi Association said that the capital city has 38 taxi firms which operate
2,592 taxis and employ 4,403 drivers, the Dan Tri (People’s Intellect) newswire said.
(vietnamnet.vn Jul 28, dantri.com.vn)
Health & Environment:
Vietnam Reports 600,000 Hospital Infections Annually
Up to 600,000 patients or 8% of the total hospitalized patients in Vietnam contracted
bacteria at hospitals annually, said a conference held the Ministry of Health in Hanoi July
28.
The infections make patients’ treatment at hospitals last between 9.4 and 24.3 days longer
with additional treatment fees by VND2 million-VND32.3 million.
They also cause multi-anti-drug and antibiotic abuse, said the conference.
Digestion, operation and respiration infections are very popular at Vietnam’s hospitals.
With a population of 86.5 million, the world’s 13th most populous country has a high
demand for drugs, with the country’s per capita medicine consumption rising from
$11.23 in 2001 to $13.4 in 2007.

116. The figure is estimated to reach $15.2 this year. (Liberation Saigon Jul 29 p1, The People
Jul 29 p5, Pioneer Jul 29 p2)
Work Begins on $233 Mln Sewage Treatment Plant in Hanoi
The Hanoi City People's Committee July 28 granted a license for Malaysia's Gamuda
Land LLC to build the $233 million Yen So Park sewage treatment plant, six km south of
Hanoi, the Vietnam News Agency said Tuesday.
The 8.8 ha plant with a daily capacity of 200,000 cubic meters will service 1.2
million-1.5 million Hanoians, the agency said.
Work on the new plant will begin after dredging and clean-up operations in five heavily
polluted lakes in the Yen So Park are completed.
It is scheduled to be finished in October 2010 to mark the 1,000 Year-Thang Long-Hanoi
Festival.
The plant is part of the 327 ha Yen So Park project to help reduce pollution and improve
environment in the inner city, Chief Representative Officer of Gamuda Land in Vietnam,
Steven Chu said. (Vietnam Law Jul 29 p10, Vietnam Economic Times Jul 29 p1, New
Hanoi Jul 29 p1, VNA)
Floods, Landslides Kill 12 in Northwestern Vietnam
Floods and landslides triggered by heavy rains have killed 12 and 3 missing and caused
great losses in northwestern Vietnam over the past few days, the Thoi Bao Kinh Te
newspaper said Tuesday.
Preliminary statistics showed that torrential floods from July 26 to 27 swept away one
person, injured 10 others and collapsed 19 houses in Xin Man district, northern
mountainous Ha Giang province.
The natural disaster washed away a concrete bridge, seriously damaged irrigational works
and blocked traffic in six communes in the district with losses estimated at VND13
billion ($787,800), the paper said.
Meanwhile, landslides have also disrupted traffic means, particularly trains in Lao Cai
province, leaving thousands of passengers stranded at local railway stations.
Torrential rains also stroke Dien Bien, Tuyen Quang, Yen Bai and Son La provinces
causing great human and property losses.

117. The National Steering Committee for Flood and Storm Prevention and Control asked
localities' authorities to promptly implement measures to prevent the floods. (Vietnam
Economic Times Jul 29 p1, VOV)
Culture & Society:
Vietnam Receives $100 Mln Grants from NGOs in H1
Vietnam has disbursed $100 million grants from non-governmental organizations
(NGOs) in the first half of this year, the Vietnam Union of Friendship Organizations
(VUFO) was citied by the Phu Nu Viet Nam newspaper as saying Monday.
The NGOs-funded projects focused on education, health and community development,
the paper said.
Some of NGOs continued providing their support to Vietnam in terms of democracy,
human rights, religion and Vietnamese AO/dioxin victims’ lawsuit against U.S. chemical
companies which supplied AO/dioxin to the U.S. armed forces during the Vietnam War.
The union has to date approved 43 news NGOs, licensed 30 NGO offices and protracted
operation licenses for 107 organizations.
The new organizations will help Vietnam implement effectively the community
development projects in the impoverished localities, the union said.
This year, the foreign NGOs will dole out around $250 million to help Vietnam reduce
poverty and handle social issues, the Vietnam News Agency said.
Vietnam has established relations with 600 foreign NGOs, 500 of which have long-term
commitment and regular activities in the country.
Last year, the ASEAN country had disbursed more than $220 million worth of assistance
from international NGOs. (Vietnam Women Jul 28 p4, VNA)
Australia Pledges $92,000 for Vietnam's Social Projects
The Australian Embassy in Hanoi has pledged to fund AUD97,000 ($92,000) for
Vietnam to carry out small-scale social development projects from now until June next
year, state media reported Tuesday.
The projects, aimed to help disadvantaged communities from Thua Thien-Hue to
northward provinces with the focus on the areas of health, education and environment
will be funded through the embassy’s Direct Aid Program (DAP).
DAP funding is available to individuals, communities groups and no-governmental
organizations engaged in development activities, in Vietnam, on a not-for profit basis.

118. DAP assisted small-scale development projects in Hanoi and the provinces of Bac Giang,
Bac Ninh, Hai Duong, Ha Tay, Thai Binh, Thanh Hoa, Nghe An, Ha Tinh, Quang Binh,
Quang Tri and Thua Thien-Hue in the 2007-2008 fiscal year, according to the Vietnam
News Agency.
The news agency said, besides DAP funding, Australia will grant an estimated AUD104
million in official development assistance (ODA) to Vietnam in the 2008-2009 fiscal
year.
Vietnam is now one of the biggest ODA recipients of Australia. Australia aids in the
Southeast Asian country concentrate on some priority fields such as human resource
development, agricultural and rural development, health, state management efficiency
and support in integration into the world economy.
In the period of 2006-07, the Australian government gave Vietnam a total amount of
$70.6 million. (Vietnam News Agency Jul 28, Vietnam Law Jul 29 p14)
Stock Market:
Vietnam Still Attractive to Investors-French Economic Analyst
Martin Hutchinson, an international market and economic analyst, said that investors
should not underestimate Vietnam’s advantages and that the market remains attractive
despite the global economic slowdown.
Vietnam’s stock market has lost 61% of its value, compared to its peak period more than
a year ago, which makes investors unsure about the advantages of investing in the
country, Hutchinson wrote in an article on French newspaper Le Monde July 26.
The national economy, however, is not as gloomy as investors thought, according to the
analyst.
The country's recent petrol price hike of 31% is predicted to drive inflation up by 27% by
the end of the year. He quoted statistics, saying that Vietnam's trade deficit made up 30%
of its GDP in the first half, but foreign investment accounted for 65% of the GDP.
Even though the government has had to slash down public spending and raise bank
interest rates, so there are some grounds for optimism rather than pessimism.
The situation in Vietnam is not as gloomy as in Eastern European countries, he said,
noting that the nation has 85 million consumers and all its economic sectors have high
competitive capabilities.
The high inflows of foreign investment have helped Vietnam create more jobs over the
past years, Hutchinson said. The state spending has been generally safe.

119. The central bank is trying to keep the exchange rate stable to avoid creating a “bubble”
phenomenon in the property market. While foreign investors still find that the production
costs in Vietnam are low.
All these factors are helping Vietnam avoid crisis, the analyst concluded.
(www.cpv.org.vn Jul 28, VOV News Jul 28, Economy & Urban Area Jul 29)
Securities Remains Attractive Investment Channel-Analyst
Vietnam’s stock market is seen the most attractive for investors in comparison with other
investment channels of gold, U.S. dollar and property, MA Dinh The Hien, a financial
and independent investment expert said.
Hien made the affirmation in the seminar "Analysis of Investment Features and
Opportunities from Realty, Gold, Foreign Currency and Securities in Current Situation"
held by Vincom SC in HCM City.
Securities investors often have various options to choose stocks based on their financial
capacity and companies' performance, Hien said.
Shares on HOSE and HASTC are quite cheap for buying as their value have lost
50%-60% so far.
Meanwhile, gold and U.S. dollar are not effective investment channels as they are only
good reserve hedges against high inflation and depreciation of Vietnam dong, he noted.
The property market also offers fewer opportunities for individual investors.
Recently, Bao Viet Securities Company has also released an analysis, saying that petrol
price hike is a good signal for the economy in the long-term, which will help boost the
stock market in the second half of this year. The VN-index closed up 2.2% to 444.4 today
[July 29]. (Securities Investment Jul 28 p6)
Agribank Jewelry Co. to Offer 3.8 Mln Shares for Auction
Agribank Jewelry Trading Company (AJC) will sell 3.8 million shares via the (HASTC)
in its IPO on August 21.
This is the first affiliate of the Bank for Agriculture and Rural Development of Vietnam,
the country’s largest lender, to go public.
AJC will sell the shares at the initial price of VND10,200 each.
The Hanoi-based company has a regisetered capital of VND206 billion, specializing in
trading, importing and exporting of gold, jewleries and precious stones.
AJC is a domestic prestigious company, with staff of more than 500 people, one jewel

120. manufacturing factory, a gold bar produce factory, five branches, mroe than 20 centers
and five agent for gold bar with 3 A-grade.
AJC is one of two companies opening bonded warehouses in Vietnam, beside Saigon
Jewlery Company (SJC). (VnEconomy Jul 29)
Jul 29: Vietnam Shares Rise on Lower Fuel Price Hopes
Vietnam's shares ended lower Tuesday for a second straight day as local investors bought
on hopes that the government will lower domestic gasoline prices, closely following the
global trend.
Oil prices are forecast to drop to $70-$80/barrel in the coming months if dollar is to
appreciate and Iran tension is solved, state media said.
“Many market participants share the view that the government will reduce fuel prices
sooner or later because prices of oil in global markets are falling,” a player with
PVSecurities said.
“Investors continue to return to market because they have eased concerns about surging
inflation in coming months resulting from oil hike,” he said.
VN-Index today gained 9.76 points, or 2.25%, at 444.4.
Market volume was 13 million shares valued at VND369.6 billion Tuesday, down from
13.4 million shares valued at VND387.6 billion Monday.
SSI, the most active stock today, closed up 2.8% at VND43,500 on nearly 2 million
shares, including 113,360 shares sold by foreign investors.
SAM, the second most active stock, fell 2.7% at VND22,000 after trading 1.2 million
shares, of which foreign investors bought 7,920 shares and sold 509,000 shares.
PVT slid 2.6% to close at VND14,800 on a trade of 569,320 shares, including 700 shares
bought and 417,520 shares sold by foreigners.
VTO shot up 16.3% at VND15,900 on 556,560 shares, with foreign investors selling
130,000 shares.
IMP topped the advancers, rising 3% at VND103,000.
TCR diluted 12.6% at VND11,100 on ex-right date.
The taxi operator Vinasun (VNS) hit the bourse today at VND48,000 with 6,080 shares
traded.

121. In total, 109 stocks closed higher, 42 lower and five unchanged.
Among four fund certificates, one closed higher and three lower. (HOSE July 29)
Vietnam News
June 28, 2008
Inter-bank Forex Rate: $1=VND16,496
Banking & Finance:
Vietnam Central Bank Declines to Lower Compulsory Reserve
The State Bank of Vietnam, the country’s central bank, will not lower the compulsory
reserve ratio in coming months, Governor of SBV Nguyen Van Giau affirmed at a
meeting session with commercial banks in Ho Chi Minh City last weekend.
Several banks at the session proposed the SBV to reduce compulsory reserve, but it
declined the reduction.
The SBV was also proposed to extend refinance time and encourage other banks to
reduce deposit rates.
Giau said that interest rates will fall gradually following the slowdown of inflation.
Commercial banks should negotiate to fix interest rate for different terms, he suggested.
(Vietnam Economic Times Jul 28 p1)
Techcombank Boosts Foreign Currency Supply
Vietnam Technology and Commerce Joint Stock Bank (Techcombank) has recently
announced that the bank will strengthen its foreign currency supply to the market, the
Hanoi Moi newspaper reported.
The foreign exchange rate in the free market tends to increase strongly and quickly from
July 21 due to psychology factor. Banks in general and Techcombank in particular, have
been satisfying quite well the forex demand under listed rates, said Techcombank.
Techcombank recommended customers, especially those who have legitimate purpose on
buying foreign currency should buy foreign currency at official forex systems such as
commercial banks instead of in the "black market".
On July 28, Techcombank offered to buy the dollars at VND16,700/$1 while the forex
rate in the free market was ranged at between VND16,900 and VND16,960.
(http://www.hanoimoi.com.vn/vn/42/174912/ Jul 24)

122. Money Laundering Not Yet Found in Vietnam: Central Bank
Anti-money laundering center under the State Bank of Vietnam (SBV) has not found any
signs of money laundering in banking transactions since its establishment in March last
year, a seminar in Hanoi heard July 25.
The center had investigated 20 transactions suspected of laundering money but found no
trace of the crime, Pham Mai Phuong from the center said at the anti-money laundering
seminar.
Phuong, however, alerted that Vietnam will deal with the crime in a more sophisticated
manner in the future as its World Trade Organization membership provides a fertile
ground for this activity.
Vietnam has adopted regulations mandating the fight against money laundering, notably
Article 251 of the 1999 Penal Code, Article 19 of the 1997 Law on Credit Organizations
and the Governmental decree on the combat of money laundering issued in 2005.
Advisor to the Vietnam-based UN Office for Drugs and Crime (UNODC), Ric Power,
said Vietnamese law enforcement agencies have not yet interpreted the regulations into
their operations and thus failed to perform effectively in the fight against the laundering
of money.
The UNODC official also recommended the nationwide deployment of measures to
combat money laundering in line with international standards.
He outlined the need to formulate an anti-money laundering system to aid the fight
against corruption and crime.
The UNODC has to date helped concerned Vietnamese agencies to improve their
working capability and build the anti-money laundering system.
In November, experts of the Asia-Pacific Group on Money Laundering (APG) will come
to Vietnam to enquire into and assess the country’s anti-money laundering activities.
According to the anti-money laundering decree issued by the Government in June, 2005,
financial institutions are obligated to report to the SBV’s anti-money laundering center of
suspicious transactions, deals in cash or foreign currencies and gold worth more than
VND200 million and saving deposits of VND500 million upward for investigations on
money laundering. (Vietnam Post Jul 28 p2)
TienPhongBank Licensed for Forex Services
The State Bank of Vietnam (SBV), or the country's central bank, has allowed the Tien
Phong Joint Stock Commercial Bank provide foreign currency services, the SBV website
reported July 25.

123. Under the Document No.6703/NHNN-CNH dated July 23, 2008, the newly-established
TienPhongBank was affirmed by the SBV to meet all terms to involve in the services.
The TienphongBank has come into operation since mid-2008 with a registered capital of
VND1 trillion and three foundation shareholders of FPT, Vinare and VMS Mobifone.
Within this year, TienphongBank will expand its network in big cities such as Hanoi, Ho
Chi Minh City, Danang, Haiphong and Can Tho.
The TienphongBank will be the first Vietnamese lender to apply ISO 9001:2000 standard
from the beginning of operation. With advantages in technology from FPT, the bank
targets to provide e-transactions for customers everywhere. (www.sbv.gov.vn Jul 25)
Dong A Bank to Install Additional 1,000 ATMs
Dong A Commercial Joint Stock Bank is planning to install an additional 1,000
automated telling machines in Ho Chi Minh City and some other provinces by the end of
2009, said the bank general director Tran Phuong Binh.
DongABank will invest about $2 million in the project to facilitate companies in paying
salary for their employees, Binh said.
The bank will increase the number of ATMs to 2,000. (Liberated Saigon Jul 27)
Trade:
HCM City to Promote Trade in Australia
The Ho Chi Minh City Investment and Trade Promotion Center (ITPC) will conduct a
market survey in Australia next month, said Director Truong Trong Nghia.
The trip aims to survey Kinnears complex and research distribution networks and
customer demand in order to serve for the establishment of Vietnam Trade Center in
Australia, Nghia noted.
Currently, Australia is the seventh largest trade partner and fourth biggest importer of
Vietnam.
Bilateral trade between the two nations reached nearly $9 billion in 2007.
Vietnam mainly exported crude oil, seafood, cashew nut, woodwork products,
handicrafts, coffee, rice, rubber, garments and textiles and footwear to the foreign country
and imported pharmaceutical products, grain, foodstuff processing machines, electric
equipment, metal, steel, foodstuff and chemicals. (Laborer Online Jul 27, Vietpan)

124. Vietnam High-quality Products & Exports Fair to Open in Cambodia
The Ho Chi Minh City Investment and Trade Promotion Center (ITPC), Saigon
Marketing newspaper and the Vietnam high-quality producers club will co-organize the
Vietnam High-quality Products & Exports Fair 2008 in Cambodia from September 18 to
22 in Phnom Penh.
This will be a good chance for Vietnamese high-quality producers and Ho Chi Minh
City’s exporters introduce and promote their products and seek more partners.
During the five-day event, many cultural exchange activities will take place.
Apart from the fair, the organizers will also hold market surveys in Phnom Penh, Siem
Riep, Battambang, and Thailand’s northeastern area.
Bilateral trade between Vietnam and Cambodia is expected to reach $2.45 billion in 2010
and will increase to $7 billion in 2015.
The ambitious goal has been set as part of the Vietnamese Ministry of Industry and Trade
(MoIT)’s plan to accelerate trade and investment with its neighbors from now until 2015
which was announced at a meeting on the issue in Ho Chi Minh City May 4.
In 2006, two-way trade reached $940 million, up 35.6% on-year, including $770 million
worth of Vietnam’s exports. (Vietnam Economic Times Jul 28 p4, Vietpan)
Steel Prices Sharply Rise after Petrol Price Hike
Steel prices in Ho Chi Minh City have soared after the Ministry of Finance July 21 hiked
31% of retail price of gasoline to VND4,500 per liter, Vietnam News Agency reported
Monday.
Ø 6-8 steel increased by VND700-VND2,000 per kilogram July 23 while Pomina and
Vina Kyoei steel have now climbed VND23 million-VND24 million from VND21
million last week.
South steel is now being priced at VND21.7 million-VND22 million per ton. Ø 16 & 18
steel bars increases to VND396,000-VND495,000/bar (excluding transport fees).
In addition, fees for steel transportation have also increased rapidly. (Vietnam & World
Economy Jul 28 p17)
Industry:
Vietnam Okays $140.6 Mln for Bio-diesel Production Plan
The Vietnamese Ministry of Agriculture and Rural Development has recently approved a
plan worth VND2.32 trillion ($140.6 million) to plant Japotra curcas trees to supply

125. material for bio-diesel production, the Vietnam Economic Times newspaper reported July
28.
Under the plan, Vietnam intends to grow 30,000 hectares of the tree to trial producing
30,000 tons of bio crude oil by 2010, the ministry said.
The acreage will be expanded to 300,000 ha by 2015 and 520,000 ha by 2025 when the
country will build a bio-diesel production plant with a designed capacity of one million
tons per year, it elaborated.
The tree has been present in Vietnam since the 14th century and is able to grow in
impoverished soil and bald hills, the source said.
Oil extracted from the tree can be directly blended to diesel of oilfields in accordance
with the proportion of 0.5% to 20% in order to create bio-diesel that has better
performance and can reduce oil effects on the environment.
Vietnam in particular and the world in general are warned of facing energy crisis;
therefore, people are looking for various methods of producing renewable and alternative
energy sources. The country is encouraging bio-fuel development such as biogas, bio-
diesel, ethanol to ease its current power lack.
The power-thirsting country plans to turn out 250,000 tons of ethanol and vegetable oil to
fuel 1% of the national gasoline demand by 2015. (Vietnam Economic Times Jul 28 p3,
Vietpan)
Hoan Vu JOC Starts Oil Production at Ca Ngu Vang Oilfield
Hoan Vu Joint Operating Company has recently started oil production at Ca Ngu Vang
oilfield offshore southern Vietnam, the Dau Tu (Investment) newspaper reported July 28.
The oilfield located at Block 09-2 in the Cuu Long basin is estimated to have an output of
221.6 million barrels, or 30.24 million tons of oil and 11.03 billion cubic meters of
natural gas at 2P level.
Hoan Vu JOC invested $286 million in the oilfield to operate it within 20 years.
It was founded by in 2002 Vietnam’s state-owned oil monopoly PetroVietnam group,
Soco International of the U.K., and PTT Exploration and Production Plc (PTTEP) of
Thailand.
Hoan Vu JOC aims to produce 400,000-500,000 million tons of oil in 2008.
Recently, PetroVietnam CEO Dinh La Thang said the group has planned to operate five
new oilfields sooner than scheduled in a bid to fulfill its set target to produce between

126. 15.5 million and 16 million tons of crude oil this year regardless of current difficulties in
production.
The oilfields include Su Tu Vang, Ca Ngu Vang, Phuong Dong, Song Doc and Bunga
Orkid, which have a combined production output of about 100,000 barrels a day.
(Investment Jul 28 p14)
Boiler B Run Trial at Dung Quat Oil Refinery
The management board of Vietnam's first oil refinery Dung Quat has recently joined
hands with contractor Technip to run trial boiler B at the plant, the Investment newspaper
reported.
The facility is one among four boilers A, B, C, D, with each having capacity of 196 tons
of super high-pressure steam an hour at the refinery.
They are functioned to supply steam to run four power-generating turbines, each has a
capacity of 27MW, thus ensuring safe power supply to the operation of Dung Quat oil
refinery.
The board has imported 5,000 tons of diesel oil in order to prepare for the boiler’s trial
run. It plans to import an additional 6,000 ton of oil to feed trial run of the remaining
three boilers in the coming time.
The contractor Technip has also completed installing single-point mooring system (SPM)
and diesel oil importing system at the refinery.
The state-owned oil monopoly PetroVietnam group, the oil refinery's investor, plans to
operate the refinery February 25 of 2009 in a bid to ease the country’s burgeoning
petroleum imports.
The underway $2.5-billion oil refinery, with expected products of propylene, liquefied
petroleum gas (LPG), lead-free petrol, diesel and fuel oil, will meet 33% of the country’s
entire demand for petrol and oil.
Vietnam spent $7.75 billion importing 8.29 million metric tons of petroleum products in
the first seven months of 2008, up 90.7% on year and 11.4%, respectively, due to the lack
of major oil refineries. (Vietnam Net Jul 27, VNA Jul 26)
Work Begins on Vietnam’s Largest Alumina Plant
Construction of a $466-million alumina plant, the largest of its kind in Vietnam, was
kicked off in central highland Lam Dong province July 26, state media reported.

127. The plant is part of the $687-million Lam Dong bauxite and aluminum complex which is
invested by the Vietnam National Coal-Mineral Industries Group (Vinacomin). The
complex is set to cover 2,297 hectares of land.
The China Aluminum International Engineering Co. (Chalieco) won the contract build
the plant within two years.
Initially, the alumina plant is set to turn out annually 600,000 tons of alumina, a white
powder for producing aluminum.
The plant is scheduled to go on stream late 2010 to make total revenues of VND3.5
trillion ($212.12 million) in 2011.
“The plant is the start-up of the aluminum industry in Vietnam. It is important to the
aluminum industry in particular and the country’s industrial sector in general in next
decades” said Deputy Prime Minister Hoang Trung Hai at the breaking-ground
ceremony.
The alumina plant is expected to help boost socio-economic development in the central
highlands, he added.
According to Vinacomin, the facility will use raw material - bauxite ore - at the Tay Tan
Rai Mine in Lam Dong province, which has an estimated reserves at 67 million tons.
Vinacomin also plans to build an aluminum hydrate plant with a capacity of
400,000-600,000 tons annually in Di Linh district. (Investment Jul 28 p3, News Jul 28
p5, People’s Army Jul 28 p1)
Vietnam to Import 1.87 Mln Tons of Clinker in H2
Vietnam will have to import 1.87 million tons of clinker in the second half this year to
supply materials to the domestic cement production, the Tuoi Tre (Youth) newspaper
reported.
In the six-month span, the country is estimated to need 19 million-20 million tons of
cement, the newspaper said.
In the first half this year, Vietnamese cement makers imported 2.12 million tons of
clinker.
The Ministry of Construction forecast that the national demand for cement this year will
increase by between 10% and 14% compared to last year.
Vietnam’s total cement output is estimated to reach 40 million tons this year as 11
cement plants are set to go on stream in 2008. (Youth Jul 28 p14)

128. EVN Requested to Keep Power Price Unchanged This Year
Vietnamese Deputy Prime Minister Hoang Trung Hai has recently demanded the state-
owned Electricity of Vietnam Group (EVN) to maintain power price stable this year at
the expense of the power price hike roadmap approved by the government in order to fuel
the national efforts to curb bourgeoning inflation, the Hanoinet daily reported.
The Vietnamese government will help EVN boost investment and speed up construction
paces of power projects scheduled for operation this year to ease current power thirst,
regardless of national efforts to tame inflation by tightening control over currency and
narrowing investment in construction projects, Hai said.
The government official has asked state-owned commercial banks to ensure sufficient
loans for power projects, and set up three inspection teams to securitize EVN's
disbursement for sluggish power projects.
With current average power price of VND842 (5-6 U.S. cents) per kilowatt-hour, EVN's
profit is estimated at between 3% and 5% per annum, which is rather modest against the
minimal 12% yearly to ensure normal operation of a power company, the daily said.
EVN is put in a dilemma as it is responsible for ensuring power supply for all localities
nationwide at any situations, a source from the group said.
Unchanged power price is preventing investors to pumping capital in the electricity
sector, which is partially blamed for current severe power shortfall in Vietnam, EVN
noted.
Under an electricity price roadmap approved by the Vietnamese Government from
January 1, 2007, average retail power prices rose by 7.6% to VND842 (5-6 U.S. cents)
per kWh and will again be bumped up by 4.5% to VND890 (5.56 US cents) per kWh by
July 1, 2008.
EVN has recently proposed to raise the power retail prices to VND917 ($5.73 U.S. cents)
instead of VND890 ($5.56) to apply from July 1 this year; however, the proposal was
turn down to facilitate inflation curbing. (HCM City Law Jul 28 p13, Urban Labor Jul 28
p3, Hanoinet Jul 27, Vietpan)
Vietnam to Build 13 Power Plants in South by 2015
Vietnam plans to build an additional 13 power plants with a combined capacity of
between 3,700 MW and 5,000 MW in the southern key economic area by 2015,
according to the national power development plan through 2015 and span to 2025, or
plan VI.
The move is aimed at meeting the region’s increasing power demand that is estimated to
grow 18.21% per annum, the Saigon Liberation newspaper reported.

129. Meanwhile, its power capacity is forecast to increase by 16.98% yearly from current
6,040 MW, the source said.
Vietnam intends to build 12 more thermal power plants with a combined capacity of
between 6,300 MW and 7,000 MW in the northern key economic area by 2015.
The country is forecast to lack 8.6 billion kWh of electricity this year and 36 billion kWh
in 2020 and 120 billion kWh in 2030. (Saigon Liberation Jul 28 p2)
Agriculture:
PetroVietnam Starts Work on Vietnam’s Biggest Fertilizer Plant
The Vietnam National Oil and Gas Group (PetroVietnam) and Chinese contractors –
Wuhuan Engineering Corporation (WEC) and the China National Machinery Import and
Export Corporation (CMC) July 26 kicked off construction of the Ca Mau Fertilizer
Plant, local media reported.
The plant with total investment of $900 million will produce around 800,000 tons of
fertilizer a year once operational in 2012.
Ca Mau Fertilizer Plant is the largest project in the manufacture of fertilizer that has ever
been undertaken.
“The plant is of importance to agricultural production, helping stabilize fertilizer prices
and ensure national food security, boosting industrialization and modernization,” Prime
Minister Nguyen Tan Dung said at the ground-breaking ceremony.
Dung also asked the investors to do their best to keep the project on schedule and meet
safety and quality standards.
The Ca Mau Fertilizer Plant will be built on 52 hectares in U Minh district’s Khanh An
commune, southernmost Ca Mau province. It is scheduled for completion in 42 months
and is expected to create more than 600 jobs.
General Manager of Petrol Viet Nam, Mr Tran Ngoc Canh said that this project is a part
of its large-scale project named “Ca Mau Gas-Power – Fertilizer” invested by Petrol Viet
Nam. (Saigon Liberatioin July 26, Vietnam & World Economy July 28 p1, VNA July 27)
Fertilizer Imports Up more than 100% in Jan-Jul
Vietnam is estimated to have spent $1.105 billion importing 2.327 million tons of
fertilizers in the first seven months of 2008, representing sharp on year rise of 118.9% in
value despite a slight rise of only 10.7% in volume, latest report of the General Statistics
Office (GSO) showed.

130. Of the total, the country imported 575,000 tons of urea fertilizer worth $223 million, up
60.4% on year in volume and 138.3% in value.
The Ministry of Agriculture and Rural Development (MARD) said Vietnam needs
around 430,000 tons of fertilizer for summer-autumn crop from Jun to Sept this year,
including 170,000 tons for the north, 310,000 tons for the central and 200,000 tons for the
south.
The ministry said with stockpile of 120,000 tons, and local production of 240,000 tons
from July to Sept, the country will have to import at least 120,000 tons by September, or
between 50,000 and 70,000 tons monthly, to meet domestic demand.
The MARD added that total demand for 2008-2009 winter-spring crop from late Sept
2008 to Mar 2009 will reach 870,000 tons, adding that the country will have to import
100,000 tons of fertilizer a month by the time. (GSO July Edition, Vietnam & World
Economy July 28 p17)
Vietnam Expects $125 Mln Seafood Exports to Australia in 2008
Vietnam is expected to rake in $125 million from exporting 30,000 tons of seafood to
Australia in 2008, up from 25,070 tons worth nearly $123 million last year, the Vietnam
Trade Information Center (VTIC) said on its Web site.
VTIC said in the first half of this year Vietnam exported 10,750 tons of seafood to
Australia, notching up $55.54 million, up 19% in volume and 20% in value, against the
same period of last year.
Tra and basa catfish, and frozen shrimp are key Vietnamese seafood items most preferred
in Australia. Catfish exports accounted for more than 56% in volume and nearly 39% in
value during the January-May 2008, while frozen shrimp accounting for 25.4% and
47.78%, respectively.
Vietnamese catfish was selling for around $3-$3.1 a kilo, while export prices of frozen
shrimp were $9.4-$9.8 a kilo.
According to the VTIC, seafood has been the second biggest earnings of Vietnam from
Australia during the past five year, behind crude oil.
In 2006, seafood exports to Australia hit $126.3 million, accounting for 3.45% of
Vietnam’s total export value from country.
Vietnam’s seafood exports to Australia kept rising from 2004, hitting $77.1 million in
revenues in 2004, and $96.23 million in 2007. (Vinanet July 28)

131. Business:
ADB to Grant Additional $1.1 Mln to Help Vietnamese Small, Medium Companies
The Asian Development Bank and the State Bank of Vietnam Jul 25 signed two technical
assistance deals worth $1.1 million in grant to help improve professional skills for small
and medium enterprises and business climate in Vietnam, Vietnam News Agency said
Monday.
The grant is directly to be funded by the Japanese government, the agency said.
The first $500,000 technical assistance will focus on improving the local business climate
in the 2008-2010 period and the second $600,000 technical assistance is aimed at
bettering professional skills for SMEs in service and industrial sectors. (Vietnam News
Agency Jul 28 p7)
$93.75-Mln Trade Complex Kicked off in Hanoi
The Military Petrochemical Joint Stock Company July 27 started construction on a trade-
office-apartment complex worth VND1.5 trillion ($93.75 million) in Vietnam’s capital
city of Hanoi, local media reported.
The project consists of two apartment buildings with 27 storeys each and a 20-storey
office building with the first five floors being trade center.
The internationally-standardized complex located at 229 Tay Son Street, Dong Da
district, is slated for completion in 2010.
By mid-2007, the capital city had three trade centers and 43 supermarkets, said the Hanoi
Industry and Trade Department. (Vietnam Economic Times Jul 28 p3, Investment Jul 28
p2, Labor Jul 28 p7)
Vietnamese Firms Invest $17.5 Mln in Binh Long Rubber IZ
Vietnamese companies July 25 broke ground construction of the Minh Hung III-Binh
Long Rubber Industrial Park, with total investment of VND289 billion ($17.5 million),
state media said.
Eight companies invested in the park, with the Binh Long Rubber JSC being the biggest.
The park covers more than 291 hectares in Minh Hung commune, Chon Thanh district of
southern Binh Phuoc province, including 180 hectares for construction of plants, and 28
hectares for services.
After the ground breading ceremony, DONGWHA group from the Republic of Korea,
and the NDFVRG Vietnam signed a contract to invest $125 million in building a wood
mill with total capacity of 300,000 cubic meters a year. (Vietnam Agriculture July 28 p6)

132. Jetstar Increases Sydney-HCM City Flights
Australia’s low cost carrier Jetstar announced it will operate five flights on Sydney-
Darwin-Ho Chi Minh City route on Airbus A320, instead of the current Sydney-Ho Chi
Minh City flights from September 2 this year, Vietnam News Agency said.
Jetstar Group Commercial General Manager Bruce Buchanan said the new route will help
link Australia’s southern states with Darwin city, aiming to turn the city into a northern
hub for international flights.
The carrier will also open direct domestic flights from Melbourne, Sydney, Brisbane
every week and Adelaide to Darwin and weekly international return services from
Darwin to Southeast Asian destinations such as Singapore and Ho Chi Minh City after
September 2.
Jestar plans to launch a Perth-Denpasar (Bali) route with three or four fights per week on
Airbus A320 from October 27 and three-time weekly A320 services between Perth and
Jakarta from October 28. (Vietnam News Agency Jul 26)
Malaysian Retailer Parkson Opens Third Outlet in HCM City
Parkson Group, a leading Malaysian shopping mall operator, July 26 inaugurated its third
outlet in Ho Chi Minh City, the fifth of its kind in Vietnam, the Labor newspaper
reported.
The $3-million Parkson C.T Plaza, located at the gateway of Tan Son Nhat International
Airport covers 31,1700 square meters.
Apart from this 11-storey outlet, Parkson is now operating four others, including two in
Ho Chi Minh City, one in Hanoi and another in Haiphong.
Parkson, first operated in Vietnam in 2004, is set to build more four or five stores in
Hanoi, said Tham Tuck Choy, general director of Parkson Hanoi.
Parkson is owned by Malaysian Lion Group, a huge conglomerate comprising various
companies trading in steel, computer hardware and farm items, and with interests in
retail, property, and education. (Labor Jul 28 p7, Vietpan)
SimEx-Iwerks Provides Facilities for Vietnam 4-D Cinema
The Ho Chi Minh City Stock Exchange-listed Tan Binh Culture Joint Stock Co Jul 26
made debut the 4-D cinema using Turbo Ride technology by the U.S. SimEx-Iwerks
group at the Alta Plaza building in Ho Chi Minh City, the first and most modern in
Vietnam, Vietnam News Agency said.

133. The movie house is equipped with high-end electric seat systems that can move different
ways to create strong sensation for viewers with broad silver screen and 5-D audio
systems, the agency said.
The 120-seat cinematheque is the most modern in Asean. (Vietnam News Agency Jul 28)
Foreign Investment:
Vietnam Reports Pledged FDI $45.28 Bln in Jan-Jul-Ministry
The Ministry of Planning and Investment's Foreign Investment Department said that
Vietnam has licensed $45.49 billion worth of registered FDI capital in the first seven
month this year, much higher than $21.3 billion for the whole last year
Of the pledged sum, 654 new foreign-invested projects registered $43.7 billion and 188
existing projects added $788 million to their operation, the MPI said.
All the foreign-invested projects reported to have disbursed $6 billion between January
and July, up 42.9% on year, the MPI noted.
The foreign companies are estimated to have revenues of $25.35 billion in the seven
months, up 34% on year, and they paid tax of $1.18 billion during the period.
During the phase, the FDI sector posted export value of $13.77 billion and imported
$16.39 billion worth of goods, up 29.4% and 32% on-year respectively.
The service sector lured $22.84 billion, accounting for 51.34%, followed by the industry
and construction sectors with $21.45 billion, or 48.2% of the total while agro, forestry
and fisheries sector attracted only 0.5%, Vietnam News Agency said.
Taiwan takes the lead with 82 projects valued at $8.4 billion, followed by Japan with 65
projects worth $7.2 billion, Malaysia 28 projects valued at $5.07 billion, Brunei with 14
projects costing $4.3 billion and Canada with 4 projects totaling $4.2 billion.
Projects of note licensed in the seven-month span included the $7.9 billion Hung Nghiep
Formosa steel plant in central Ha Tinh province, the $6.2 billion Nghi Son oil refinery
and the $4.23 billion tourism complex in southern Ba Ria-Vung Tau province.
The ministry added that the new record made by Vietnam in FDI attraction showed
foreign investors’ trust in the country’s investment environment despite its high inflation.
(Investment Jul 28 p4, Vietnam News Agency Jul 26)
Tourism:
Int’l Tourist Arrivals to Vietnam Soar 8.6% on Year in Jan-July

134. Vietnam, the sun warm Southeastern Asian nation welcomes more than 2.7 million
international tourist arrivals in the first seven months of 2008, representing an on-year
increase of 8.6%, the Cong An Nhan Dan newspaper reported Monday.
The markets with largest number of tourists to the city in the period come from China,
Thailand, Singapore, Hong Kong, Laos, and Taiwan, according to the Ministry of
Planning and Investment.
In July, the communist country greets around 380,000 foreign visitors, up 10.7%. The
strong increase in the month is attributed to the higher flow of travelers from Europe,
including Sweden (46%), Norway (16%), Germany (15%) and the UK (10%).
Vietnam notably welcomed 2.5 million foreign tourists and earned VND37 trillion ($2.3
billion) in revenues in the first half of this year.
The country is looking to 4.4 million foreign visitors and 20 million domestic tourists
with total revenue of VND56 trillion, or $3.5 billion this year.
The tourism sector now contributes 8% to Vietnam’s national GDP. (People’s Police July
28 p4, Vietnam Panorama)
Politics & Law:
Vietnam, DPRK Vow to Enhance Ties
Vietnam and the Democratic People’s Republic of Korea (DPRK) will boost further the
exchange of delegations at all levels, reviewing signed agreements and encourage
businesses from both sides to increase investment, economic and commercial
cooperation, the two foreign ministers agreed July 26.
Deputy PM and Minister of Foreign Affairs Pham Gia Khiem welcomed North Korean
counterpart Pak Ui Chun in Hanoi on his first visit to Vietnam, saying he believed the
visit would positively contribute to promoting the two countries’ friendship and
cooperation.
The two diplomats pledged to accelerate their ministries’ bilateral cooperation in
accordance with an agreement signed in May 2007, and expand the two countries’ mutual
cooperation and coordination at multilateral forums such as the UN, the Non-Aligned
Movement and ARF.
Minister Pak invited Khiem to visit the DPRK in the near time.
On the same day, the North Korean FM met with Party chief Nong Duc Manh. The
foreign minister said he was proud of the traditional friendly cooperative ties with
Vietnam, which have been continually developed and promoted, especially after a visit to
the DPRK by General Secretary Manh in last October.

135. The host, in reply, praised efforts made by the two Koreas to achieve peaceful unification
of the Korean peninsula on the basis of independence and national self-determination in
accordance with the joint communiqués signed by the two sides June 2000, and October
2007. Manh also congratulated the DPRK on the signing of the Treaty of Amity and
Cooperation (TAC). (Vietnam News Jul 28 p2, New Hanoi p1)
Labor & Education:
Vietnam Aims to Offer Training to 21% of Female Workers by 2010
The Vietnam Women’s Union (VWU) has set the target of providing vocational training
for 21% of female laborers by 2010, the Hanoimoi newspaper reported Monday.
This is part of a VWU project on vocational training for women in the 2009-2015 period.
The ratio of trained laborers of the female workforce will be further raised by 3% each
year after that, according to the project.
The organization plans to hold vocational training courses for 50,000 female laborers
nationwide every year from next year.
The project, approved by the organization in Ho Chi Minh City July 25, will give priority
to women in rural and isolated areas as well as the disabled and ethnic minorities.
The VWU over the past five years has given vocational training for over 900,000 people,
93% of whom are women and created jobs for 670,000 women.
Females now accounts for around 1.5 % of Vietnam's population. (New Hanoi July 28
p2, Vietnam Panorama)
Japan Funds JPY441 Mln for Vietnam’s Resource Development
The Japanese Government will grant JPY441-million (over $4 million) in non-refundable
aid for Vietnam in the 2009 fiscal year and the next three years to help the country
develop postgraduate training, Vietnam Economic Times reported Monday.
The Japanese Grant Aid for Human Resource Development Scholarship (JDS) project for
Vietnam was inked by Deputy Prime Minister and Education Minister Nguyen Thien
Nhan and Japanese Foreign Minister Komura Masahiko July 25.
Under the project, Vietnamese young workers in state-owned agencies will be offered
scholarships to join postgraduate training in economics, business, law, agriculture and
technology in Japan.
Vietnam and Japan established diplomatic ties in 1973. After 1975, the relationship has
gradually been expanded. Since 1992, the two countries' ties saw substantial development
in many fields, including education and training.

136. Japan is emerging as a favorite destination for Vietnamese students. At present, more
than 2,580 Vietnamese students are studying in Japan, accounting for around 8% of the
total Vietnamese living in the country. (Vietnam Economic Times Jul 28 p4)
Vietnam Named among Top-five at 39th Int’l Physics Olympiad
Vietnam, the host country of the 39th International Physics Olympiad is listed among top-
five countries by winning four gold medals and one bronze, the Thanh Nien newspaper
reported Monday.
This has been the best result since the country firstly joined the IPhO in 1982.
Gold medal winners are Nguyen Duc Minh from Amsterdam High School for Gifted
Students, Do Hoang Anh from Hanoi National University, Huynh Minh Toan from
Danang-based Le Quy Don High School, and Nguyen Tat Nghia from Nghe An-based
Phan Boi Chau High School.
Tran Anh Vu from Hanoi-based Dao Duy Tu High School snatched bronze medal.
The 39th International Physics Olympiad (IPhO) was held in Vietnam for the first time
from July 21-28, drawing the participation of more than 650 students and experts from 85
countries and territories.
The IPhO 2008 is not only a significant educational event but also one of the biggest
tourism events of the year. This year’s event also boasts the largest number of
participating countries and territories in its history.
Last year at the 38th International Physics Olympiad (IPhO) in Iran, Vietnamese students
reaped fruitful results at the event by taking two gold medals, two silvers and one
encouragement prize. (Young People July 28 p1, Saigon Liberation July 28 p1, Youth
July 28 p2, New Hanoi July 28 p1, The People July 28 p1, Labor July 28 p1, Pioneer July
28 p1, People’s Army July 28 p7)
Health & Environment:
Vietnam Actively Preparing to Fight Typhoon Fung-Wong
Vietnamese authorities sent an urgent message to ask coastal provinces and cities to
promptly implement measures to prevent the impacts of the Typhoon Fung Wong, the
Nhan Dan newspaper said.
The National Center for Hydrometeorological Forecasting (NCHMF) said that the water
levels on rivers in northern Vietnam rose rapidly due to heavy rain over the past few
days.

137. The water level on the Red River in Hanoi July 27 was measured at 9.34 meters, 0.16
meter below the first danger level and is expected to rise to 9.5 m today while water level
on Thai Binh River will be 4.2 meters.
The northeastern area of the East Sea will brace winds measured seven or eight on the
Beaufort scale of 51-75 kilometers per hour, the NCHMF said.
The center also warned that boats and ships should not go near the affected area due to
the influence of Typhoon Fung Wong, which is heading toward China's Zhejiang
province with winds of 120 kph and above. (The People Jul 28 p8, Vietnam Law Jul 28
p3, Thanh Nien Daily Jul 28 p2)
Vietnamese Prof Wins Int'l Cosmos Prize
Honorary Professor of the Hanoi National University, Phan Nguyen Hong, has won the
International Cosmos Prize 2008, a top award in ecology, Vietnam News Agency said
Monday.
Prof Hong, a pioneer in research activities to restore and preserve mangrove forests in
southern Vietnam, was bestowed the award for his achievements in biological
classification and ecology of tropical mangrove forests.
Hong’s researches play important roles in protecting bio-diversification and preventing
the earth’s warming process.
The award ceremony is scheduled to be held in November 4 in Osaka, Japan.
Prof. Hong will be presented with a certificate of merit and award money of JPY40
million ($380,000). (VNA, Labor Jul 28 p2, New Hanoi Jul 28 p8, News Jul 28 p16)
5-Ton Whale Drift to Southern Vietnam
Fishermen in southern Ba Ria-Vung Tau province July 26 found a dead five-ton whale on
the coast of Vung Tau town, the Nhan Dan (the People) newspaper said.
Locals July 27 completed procedures to transport the corpse of the whale to Phan Thiet
town in central Binh Thuan province for a special burial service, the paper added.
An anonymous boss of the seafood processing firm in Ward 6 paid nearly VND10
million ($594) for the burial service.
Local fishermen said the whale may have been hurt by screw of a big ship. (The People
Jul 28 p8, Youth Jul 28 p5, Young People Jul 28 p2)

138. Culture & Society:
3.5 Mln Overseas Vietnamese Living in 90 Countries: Report
The number of overseas Vietnamese, Viet Kieu, has increased to 3.5 million who are
settling in around 90 nations and territories, the latest statistics by the Foreign Affairs
Ministry’s Overseas Vietnamese Committee showed.
The committee, however, said that the census of overseas Vietnamese is still facing some
difficulties, including lacks of expenses and staff.
In addition, Vietnam has not yet set up diplomatic offices in some nations and territories,
which causes difficulties in making statistics and promoting the community work.
Oversea remittance sent by overseas Vietnamese still remains a key resource to develop
economy.
Last year, the Southeast Asian country pulled in $5.6 billion of overseas remittances. The
figure is expected to hit $6 billion this year. (Great Union Jul 28 p10, Vietpan)
Vietnam Takes Lead in Foreign Brands Love in Asia-Grey Group
Vietnamese people take the lead in terms of western brands preference in Asia with 77%
of surveyed Vietnamese saying they like, much higher than 40% in other Asian nations,
the global communications firm Grey Group said Monday.
Grey Group has just finished a survey named “the Eye on Asia 2008” in 16 Asian
countries, Vietnam Investment Review newspaper published by the Ministry of Planning
and Investment said.
Many Vietnamese consumers said they are big fans of high-end consumer goods, Grey
Group said, citing a local consumer as noting “Today luxury is not so much what I have
but how much I enjoy it.”
Vietnamese also scored the highest marks for their optimism about life and their futures
with 90% believing that the future is likely to be better than the past, much higher than
76% on average of other Asian nations, the survey said.
Most Vietnamese think money is the answer to their problems, many are optimistic about
having a big house, a car and a happy family in the future, the group said.
Vietnamese were also found to believe that they lead balanced lives while other Asian
neighbors are stressed out.
However, the Vietnamese people are among those who have become less conformist,
pursue individual lifestyle and not fulfilled at work. Only 30% of Vietnamese see work as
a source of pleasure, compared with 70% of Indonesians and 66% of New Zealanders.

139. State media said Vietnam ranks the 13th in terms of population with 85 million people
and 60% of them age less 30 years. (Vietnam Investment Review Jul 28 p5, Vietpan
Database)
Vietnam Reports 6,462 Traffic Accidents in H1, Down 16% on Year
Vietnam witnessed 6,462 traffic accidents in the first half of this year, down 16% on year,
the Thoi Bao Kinh Te newspaper said, citing the National Traffic Safety Committee.
The traffic accidents killed 5,900, down 989 people against the same period of 2007,
heard a conference July 26 held in Vung Tau city.
Southern Ca Mau province saw the strongest reduction of 53% in terms of traffic accident
deaths, followed by central Nghe An province with 49% and southern Bac Lieu province
with 48%.
The agency attributed improvements to people’s improved awareness and respect of
traffic law as reflected in observance of helmet wearing rules.
It presented 500 helmets to pupils of kindergartens in southern Ba Ria-Vung Tau
province. (Vietnam Economic Times July 28 p2, VNA)
Stock Market:
Vietnam Stock Market Help Raise VND5 Tln in H1
Vietnam’s stock market helped local firms mobilize only VND5 trillion ($303.2 million)
from 41 securities issues to public in the first half, according to the Management Board of
Securities Issuance under the State Securities Commission (SSC).
The figure is too modest in comparison with 200 securities issues in 2007 with the fund
of nearly VND60 trillion. The small capital inflow was resulted from the sharp decrease
of 60% of the market value due to investors' falling demand.
Listed companies on both HOSE and HASTC raised 48.1% of their total capital in offer,
while unlisted firms sold VND2.6 trillion.
Among total number of firms selling shares to public, there are 13 enterprises in
production and processing industry, 11 ones in trade and services, and 11 ones in
construction and property sectors.
In the first six months, only 15 state-owned enterprises carried out their initial public
offerings (IPOs) with total proceeds of VND6 trillion from selling only 51.87% of total
shares offered in auctions.

140. The local key stock index has fallen over 50% so far due to domestic economic
difficulties. The index is expected to rise in the remaining months of this year, the Bao
Viet Securities Company said. (Securities Investment Jul 28 p5)
Vietnam Bank to Auction VND600 Bln Long-term Bonds
The state-owned Vietnam Development Bank (VDB) will offer VND600 billion ($36.4
million) of government bonds in its fourth auction via the Hanoi Securities Trading
Center July 31, the center announced.
The bank will call bidders for five-year, 10-year, and 15-year bonds, with VND200
billion ($12.1million) for each. These bonds will be issued August 4.
VDB will offer the bonds at par value under the book-entry form and then listed on
HASTC. Investors are suggested to submit bidding document as of July 31 to attend the
auction.
In the third auction July 16, VDB sold VND7 billion in 15-year bonds at yield of 15% per
annum, out of VND500 billion of 10-year and 15-year bonds offered.
VDB, one of the country's two policy lending banks, is set up on the target of helping
reduce poverty through loans to irrigation construction, rural transport, infrastructure
construction for trade villages and remote areas, and export support. (HASTC, Labor Jul
28, Vneconomy Jul 26)
Fund Managers Raise $3.2 Bln for Securities Investment
The State Securities Commission (SSC) announced that fund management companies
mobilized and managed more than VND51.4 trillion ($3.2 billion) as the end of May.
So far, 34 operating fund mangers have set up four public securities investment funds, 16
member funds, and attracted hundreds of customers.
All four funds are listed on the Ho Chi Minh City Stock Exchange, including VFMVF1,
VFMVF4, Manulife Progressive Fund (MAFPF1) and Prudential Fund (PRUBF1).
The SSC said it would raise establishment criteria of fund management funds in the
coming months to ensure their strong competence in asset management amidst
difficulties of the stock market.
The commission will also encourage the diversification of securities funds and new
investment products to create more choices and opportunities for investors. (Securities
Investment Jul 28 p5)
Sacombank Plans to Lower 2008 Profit Target

141. The Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), Vietnam’s second
biggest listed bank by assets, is planning to lower this year’s profit target by 25% to
VND1.5 trillion ($90.9 million).
Sacombank is seeking opinions from the shareholders for the plan, as the bank said
Vietnam’s banking and financial market is facing difficulties and threats this year.
In the original plan, Sacombank targets pretax profit of VND2 trillion this year, deposits
of VND80 trillion, outstanding loans of VND46 trillion, total assets of VND93 trillion
and dividend payout of 14-16%.
In the first six months, the bank gained profit of VND754 billion, up 23% on year, but it
accounts for only 37.7% of the yearly plan.
As the end of June, its total assets reached VND74.9 trillion, up 95% on-year, deposits
totaled VND64.2 trillion and outstanding loans amounted at VND38.3 trillion. (Vietnam
Economic Times Jul 28 p8)
PPC Sees Profit Up 1.5% in H1 to VND571.4 Bln
Pha Lai Thermal Power Joint Stock Co. (PPC), Vietnam's largest listed power company,
said its first-half profit rose 1.5% to VND571.4 billion ($34 million) as it generated more
electricity to meet demand.
During the period, the firm raised output by 37 million kilowatt hours to 3.82 billion
kilowatt hours, said Le The Son, PPC head of the Financing and Accounting Department.
It operates two coal-fired power plants in the northern province of Hai Duong.
PPC's revenues were VND2.1 trillion during the time, up 4.06% on year, the company
said.
Pha Lai, which generates almost 9% of Vietnam's annual electricity output, benefited
from a shortage of power amid rising demand.
The Electricity of Vietnam (EVN) said in April that it plans to buy 3.5 billion kilowatts
hours of electricity from China this year as hydroelectric power generation declines in the
dry season. (CafeF, Stock News Jul 25)
Jul 28: Vietnam Shares End Up on Buying in Blue Chips
Vietnam's stock market index rebounded Monday, after falling in six straight sessions, as
local investors returned to buy blue-chip stocks on hopes that more companies will report
good performance for the first half.

142. More than 50 companies out of total 299 listed firms have released their second-quarter
financial reports, and some announced huge profits, such as Hoa Phat Group (HPG) and
Techno Agricultural Supplying (TSC).
“More investors are returning to the market with expectation that more companies will
release solid results this week,” a trader in Ho Chi Minh City said.
Buying sentiment is also supported after Bao Viet Securities Co. made a forecast last
week that the key index may hit 600 at the end of this year, he said.
VN-Index today rose 5.18 points, or 1.21%, at 434.64.
Market volume totaled 13.4 million shares valued at VND387.6 billion Monday, up from
8.9 million shares valued at VND328 billion last Friday.
STB, today’s most actively traded stock, gained 2.7% at VND23,000 on a trade of 3.2
million shares.
VTO, the second most active stock, fell 1.2% at VND15,900 after trading 956,270 shares,
of which foreign investors bought 3,100 shares and sold 180,700 shares.
PPC climbed up 2.9% at VND28,200 on 602,690 shares, including 227,450 shares
bought and 147,540 shares sold by foreigners.
Some other blue chips also closed higher, such as PVD up 2.8%, DPM up 2.9% and
VNM up 2%.
SSI plummeted 3% to close at VND42,300 on 280,160 shares, including 30,080 shares
bought by foreigners.
ICF is the most advancer, rising 3% at VND10,300 on 86,100 shares.
TDH topped the decliners, falling 3% at VND48,500 on 65,810 shares, including 5,980
shares bought and 46,020 shares sold by foreigners.
Construction and Material Trading Co. (CNT) made debut today at VND36,000 on 1,420
shares changing hands.
In total, 85 stocks closed higher, 65 lower and five unchanged.
Among four fund certificates, one closed higher and three lower. (HOSE July 28)
Vietnam News
July 25, 2008

143. Inter-bank Forex Rate: $1=VND16,495
Banking & Finance:
Singapore UOB Allowed to Buy Extra 5% Stake in Vietnam’s Southern Bank
The State Bank of Vietnam (SBV), or central bank, has given approval to Singapore’s
United Overseas Bank (UOB) to buy an additional 5% stake in Southern Commercial
Joint Stock Bank, raising its ownership in the local lender to 15%.
Southern Bank is allowed to increase its registered capital following the Singapore bank’s
acquisition.
In December 2007, Southern Bank sold a 10% stake to UOB, for VND480 billion ($30
million), to increase its capital to VND1.43 trillion from VND1.29 trillion.
Southern Bank was set up in 1993 with an initial registered capital of VND10 billion. The
bank now has a network of 84 branches and transaction offices with total assets of more
than VND18 trillion.
The HCM City-based bank plans to double its chartered capital to VND3 trillion ($187.5
million) this year.
Meanwhile, UOB is Singapore’s leading bank and provides diversified financial services
via 524 branches and subsidiaries in 18 nations worldwide.
Many Vietnamese banks, including Southern Bank, have sold shares to foreign partners
as they seek for expertise and capital. (SBV Jul 24, VnEconomy Jul 25)
Dollar Lending Rates Still High Despite Recent Reduction
Current interest rates on U.S. dollar loans offered by local commercial banks remain high
and unreasonable despite declines in recent weeks, a newspaper published by the
Vietnam Chamber of Commerce and Industry reported July 25.
The paper also quoted analysts as saying that the rates are higher based on the suffering
strength of enterprises and the relation between domestic and international monetary
markets.
While the world's average U.S. dollar lending rate is about 5%, Vietnamese companies
still suffer 8%-10% per annum, even 12%, the analysts said.
On July 9, Libor interest rate for the 12-month term was recorded at 3.22% per annum
and six months at 3.0975% per annum while six-month Sibor interest rate was 3.274%.
In line with international and local norms, US lending rates of Vietnamese banks equaled
to Libor and Sibor rates with the same term, adding a free of 1.5%-2.5% a year.

144. However, the final lending rate that borrowers have to suffer is too high, which has
affected strongly to companies' business and production operation, especially important
projects in need of huge U.S. dollar volume to import machines and equipments.
In a move to lower U.S. dollar lending rates, local commercial banks have proposed the
State Bank of Vietnam to reduce compulsory reserve ratio of U.S. dollar deposits. But the
proposal was rejected due to foreign currency lending growth is still high.
From July 14, South-Eastern Asia Commercial Joint Stock Bank reduced the U.S. dollar
deposit rate with a term of seven months from 7%-8% per annum down to 6.0% a year.
Meanwhile, some other commercial banks have tendency to continue lowering by 0.2-0.5
percentage point per annum slightly in coming days. (Business Forum Jul 25 p6)
HSBC, Bao Viet Provide Cargo Insurance Service
The Hong Kong-Shanghai Banking Corporation (HSBC) and the Bao Viet Insurance
Corporation will co-provide a marine cargo insurance service for businesses in Vietnam,
the Vietnam News Agency reported July 25.
The cooperation has made HSBC one of the first among foreign banks to distribute such
an insurance service in Vietnam and helped strengthen the strategic cooperation between
HSBC and Bao Viet Corp.
Marine Cargo Insurance is designed to insure goods against unforeseen losses during
shipment by sea, air or land. With the service, corporate customers can feel secure about
their operations, even in the event of lost or damaged cargo.
HSBC is now the largest foreign bank in Vietnam while Bao Viet is taking the lead in the
Vietnamese insurance market.
Under an agreement signed between HSBC and Bao Viet late last year, insurance
products from the leading Vietnamese insurer started supplying the service through
HSBC distribution channels in Hanoi and HCM City from January 1, 2008.
The agreement follows a strategic alliance formed by HSBC and Bao Viet last September
through which HSBC purchased a 10% stake in Bao Viet, becoming the sole foreign
partner of Vietnam’s leading non-life insurance provider. (Vietnam & World Economy
Jul 25 p4, Vietnam Economic Times Jul 25 p4)
Song Da Finance Co Makes Debut
Song Da Finance Joint Stock Company (SDFC) started its operation July 23 in Hanoi
amidst the increasing demand of state-owned groups and corporations to set up banks and
finance firms, the Thanh Nien (Young People) newspaper reported.

145. The company has a registered capital of VND500 billion ($30.3 million), with three
founding shareholders including Song Da Corporation, Military Bank, and Bao Minh
Joint Stock Corporation.
SDFC is allowed to operate in capital mobilization, credit services, issues of bonds, CDs
and bills, discount and some other services.
Recently, the central bank has also given operation license to the EVN Finance Company
to help the power industry raise fund for its projects.
The Vietnam's central bank is currently managing 14 finance companies. (Pioneer Jul 25
p13, Young People Jul 24 p7)
Navibank Launches Credit-Debit Cards
Nam Viet Joint Stock Commercial Bank (Navibank) has officially issued domestic credit
and debit cards, the Nguoi Lao Dong (Laborer) newspaper reported July 24.
With NaviCard-Credit, users can spend money first by the bank's capital in the limitation
of from VND10 million to VND100 million.
As for NaviCard-Debit, customers can spend money directly on their accounts but they
still get the interest rates.
Recently, Navibank signed a contract with the Bank for Foreign Trade of Vietnam
(Vietcombank)'s Smartlink Co to join the Smartlink organisation including over 20
membership banks. (Young People Jul 24 p7)
Trade:
U.S. Importers, Retailers Oppose Monitoring Mechanism on Vietnam Apparels
A group of big U.S. importers and retailers have raised their voice to oppose the U.S.
Department of Commerce (DOC)’s continuation to apply the monitoring mechanism on
Vietnamese textile and garment imports, state media reported.
The protesters, including the Shoe and Clothing Association, the National Retail
Federation, the Association of Retail Industry Leaders and the Association of Apparel
Importers, have jointly sent a letter to leaders of the U.S House of Representatives’
Budget Allocation Committee, expressing their strong objection to the committee’s
proposal to the DOC to extend the monitoring mechanism on apparel imports from
Vietnam and China.
U.S. retailers confirmed there was no basis for executing the supervision mechanism as
well as analyzing prices just focusing on some products selected from some countries,
rather than all imported products.

146. The letter said “the proposal of the committee is a wrongdoing and hurts the U.S.
economy.”
The letter stressed that during 18 months of implementing the monitoring program on
Vietnamese apparel imports into the U.S. market, authorities did not find any evidence
and there was not any clothing company complaining about damages caused by
Vietnamese textile and garment imports. The U.S government also considered twice but
found no dumping evidence.
At present, prices of Vietnam-made apparels are the second highest on the U.S. market, at
$2.93/sq.m on average, just behind Sri Lanka at $3.64/sq.m, according to the Vietnamese
Ministry of Industry and Trade.
Prices of Vietnamese textiles and garments shipped to the U.S. also strongly grow, up
26% on-year.
Vietnam is now the fourth biggest textile and garment exporter to the U.S. market with a
turnover of $2.4 billion in the first half, accounting for 57% of the Asian country’s total
export value of the product.
This year, Vietnam is expected to ship $5.4 billion worth of textiles and garments to the
U.S. market to secure second place behind China in the export of these products stateside.
(Baomoi.com Jul 25, Vietnam & World Economy Jul 25 p10)
Techmart Hanoi 2008 to Open in Sep
Hanoi Technology and Equipment Mart 2008 “Techmart Hanoi 2008” will take place at
Vietnam Exhibition and Fair Center from September 18 to 21, said local media.
The event will introduce and trade new technology and equipment with the focus on
technology and services in the fields of biology, information, electronics and
telecommunications, automation, planning, architecture, construction, traffic,
environments and cutting-edge industries.
Techmart 2008 will have between 250-300 pavilions with 50 of foreign companies,
which are ready to transfer technologies, software and other products to customers.
There will also be booths for students and young scientists who would like to introduce
their own research.
Seminars on bio-technology, electronics & telecom, and business exchanges will also be
organized during the four-day event. (Vietnam Economic Times Jul 25 p2, Vietnam &
World Economy Jul 25 p5, VOV Jul 24)

147. Industry:
Vietsovpetro Produces 174 Mln Tons of Crude Oil So Far
Vietnam-Russia Oil and Gas Joint Venture (Vietsovpetro) has to date produced nearly
174 million tons of crude oil and brought ashore 19 billion cubic meters of natural gas,
the Saigon Liberation newspaper reported, citing the company figures.
The company has so far attained revenues of $42.1 billion and contributed $26.73 billion
to the Vietnamese state budget, a Vietsovpetro official said at a meeting July 24 in
southern Ba Ria – Vung Tau province.
Vietsovpetro has targeted to produce 7.65 million tons of oil this year, up 550,000 tons or
7.74% against its earlier annual plan.
To reach the target, the joint venture plans to raise its output by putting four more wells
into operation and resumes operation of the Ba Vi oil tanker.
In the first half of this year, Vietsovpetro had produced 4.56 million tons of oil and
contributed $2.74 billion to the state budget, up $1.1 billion or 67.07% compared to the
same period last year.
Last year, Vietsovpetro produced up to 8.6 million tons of oil, brought ashore 1.36 billion
cubic meters of associated gas, and obtained revenues of $4.8 billion. (The People Jul 25
p8, Pioneer Jul 25 p13, VNA Jul 24)
Vietnam Buys 9.47 Bln kWh of Power from China in H1
Vietnam had purchased a total 9.47 billion kWh of electricity from China in the first six
months of this year, much higher than the 3.8 billion kWh set by the government, the
Vietnam Economic Times newspaper reported July 25.
Volume of power buying from the neighboring country is estimated to continue rising in
the coming, experts said at a recent meeting on the matter in central Danang city.
The two sides will together take technical measures to ensure better power transmission
in the near future, they noted.
Earlier, Vietnam planned to buy only 3.8 billion kWh of power from China this year, up
52% on year.
Vietnam and China have built three 220-kV power transmission lines and three 110-kV
power lines to transmit electricity from the later to the former.
China began selling electricity to Vietnam from September 2004 and the two neighboring
countries plan for connection through a 500-kV line. (Vietnam Economic Times Jul 25
p3, Vietpan)

148. Nhon Trach 1 Power Plant to Officially Run Turbine 2 Jul 26
Vietnamese relevant authorities July 23 run trial a 150-megawatt turbine 2 of Nhon Trach
1 power plant to prepare for its official operation July 26 this year, the Investment
newspaper reported, citing state-owned oil monopoly PetroVietnam sources.
A 150-MW turbine 1 of the plant in Nhon Trach district of southern Dong Nai province
was operated June 20 this year, the company said.
The 450-MW Nhon Trach 1 power plant has two gas-fuelled turbines and a steam-fueled
turbine; and costs a total VND6.45 trillion ($403.1 million).
The plant, which is part of the 1,200-MW Nhon Trach power project worth $1 billion
with the investment from PetroVietnam, is expected for full operation in March 2009.
Power-thirsting Vietnam is estimated to lack between 2,000 MW and 2,500 MW of
power daily in July and the power shortfall will prolong until August, an EVN leader said
recently.
The country is forecast to lack 8.6 billion kWh of electricity this year and the figure will
climb to 36 billion kWh in 2020 and 120 billion kWh in 2030. (Investment Jul 25 p3, The
People Online Jul 25, Vietpan)
Garment Exports Rise 20.5% On-year to $5.09 Bln in Jan-Jul
Vietnam is estimated to bag $930 million from apparel exports in July, raising the total
figure to $5.09 billion in the first seven months this year, up 20.5% on-year, the General
Statistics Office reported.
In the period, the apparel sector has been facing many difficulties, especially input cost
rise, labor shortage and high bank loan interest rate.
Textile and garment exports to foreign markets in general and to the U.S. in particular
also face challenges.
Currently, the industry is working hard to reach the set target of $9.5 billion exports this
year, compared with $7.8 billion last year. (New Hanoi Jul 25 p4, GSO July 2008)
Agriculture:
Prices of Vietnamese Rice Slightly Falling
Both export and domestic prices of Vietnamese rice have slightly decreased during the
past week due to high supplies, local media reported.

149. The Vietnam Trade Information Center said on its Web site that export prices of
Vietnamese rice decreased by 3.3%, from $750 a ton of 5% broken rice, free on board, a
week earlier, to only $725 a ton.
Rice traders in Mekong Delta predict that the prices are unlikely to drop further as
Vietnamese government raised petrol prices by 31%.
“It is also very difficult to forecast rice export prices in August and September,” a trader
said.
At local market, prices of summer-autumn paddy dropped to only VND4,500-VND4,800
a kilo. Prices of rice material for 5% broken rice production are around VND6,300 a kilo.
Vietnamese companies are now selling 5% broken rice for VND7,800 a kilo of summer-
autumn rice, free alongside ship, while winter-spring rice prices are VND8,800 a kilo.
Prices of 15% broken rice are VND7,500-VND7,700 a kilo, and prices of 25% broken
rice are VND7,400-VND7,500 a kilo.
Vietnam is estimated to have exported 2.794 million tons of rice in the first seven months
of 2008, raking in $1.811 billion, down 6.8% on year in volume but up 87.6% in value,
according to the General Statistics Office (GSO). (vinanet July 25, Vietnam Economic
Times July 25 p2, GSO July Edition)
Sugar Output Meets Domestic Demands
Vietnam will have sufficient sugar for consumption and food production by the end of
this year, despite difficulties faced by local sugar industry, the state media reported, citing
an official from the Vietnam Sugarcane and Sugar Association (VSSA).
Nearly 1.25 million tons produced by local sugar refineries nationwide in the 2007-2008
crop, together with a reserve of 94,000 tons and imports of 58,000 tons under WTO
commitments, will help ensure sufficiency at domestic market, said VSSA Chairman, Vo
Thanh Dang.
The chairman said locally made sugar, however, is now facing with unfair competition by
smuggled sugar from southwestern border gates.
At the Ministry of Agriculture and Rural Development (MARD) conference July 24,
delegates said though the industry this year is enjoying its fourth high-yield crop, illegal
sugar imports are affecting consumption of domestically-produced sugar in the country.
Illegally-imported sugar made local companies’ sales decrease by 30,000-50,000 tons
monthly in May and June 2008. Total sugar volume stockpiled in local factories as of late
June was 320,000 tons, up by 40,000 tons on year.

150. The high increase of materials prices has also diminished the economical efficiency of
sugarcane plantations and processing, leading to many growers considering a change to
other crops. This threatens to create a flow-on effect to the sugar plants who will then
face a shortage of materials for production in future years.
While the World Sugar Research Organization’s experts forecast the increase of sugar
price on the global market due to the decreased supply, Vietnam’s sugarcane acreage for
the 2008-09 is expected to reduce by 17,000 hectares to about 290,000 hectares.
The conference reported that this will make the output staying at 1.25 million tons as this
crop despite the increase in productivity. (Vietnam Agriculture July 25 p6, Vietnam &
World Economy July 25 p6, The Labor p3)
Animal Feed Imports Up 78% in Jan-Jul
Vietnam is estimated to have spent $1.182 billion on animal feed imports in the first
seven months of 2008, a sharp rise of 78.3% against the same period of last year,
according to the General Statistics Office (GSO).
In July, the country has imported $170 million worth of animal feeds, up from $160
million in June, the GSO’s report showed.
The Ministry of Agriculture and Rural Development (MARD) said heavy dependence on
imported animal feed and animal feed material, which prices have sharply soared, is
hitting local animal husbandry industry.
Local importers complained that cumbersome import procedures also hinder them.
The MARD has recently suggested listing materials and animal feed to the list of
imported necessities and slashing import tariff for materials for animal feed to 0%, with a
view to help the industry get rid of difficulties.
The ministry said the customs should simplify administrative procedures upon customs
clearance and seaports to increase handling capacity. (GSO July Edition, Investment July
23 p7)
Business:
Vietnamese Petrol Firms Still Lose $6.06 Mln A Day despite Recent Price Hike
Petroleum businesses in Vietnam are forecast to still lose VND100 billion ($6.06 million)
a day despite of a sharp rise in petrol price some days ago, said Bui Ngoc Bao, general
director of the Vietnam National Petroleum Corporation (Petrolimex).
Bao attributed the increase of 31.05% in gasoline price, and 43.9%, 36.8% and 14.7% in
kerosene, mazut and diesel, respectively, to long agglomerate time for the price
adjustment.

151. "If petrol price in Vietnam fluctuates daily as foreign exchange rates, people will see the
recent surge in petrol price is not too high," the official elaborated.
He noted that Vietnam would have applied regular petrol price adjustments since five
years ago in order to ease pressure from State budget.
Vietnam will adjust petroleum price in accordance with market mechanism and global oil
price fluctuations in the coming time, Bao attributed.
The Vietnamese Ministry of Finance July 21 raised retail price of A92 gasoline to
VND19,000 ($1.15)/liter, up VND4,500 ($0.27).
Together with the gasoline price soar, a liter of diesel 0.05S is sold at VND15,950
($0.96), up from VND13,950 ($0.84); paraffin oil at VND20,000 ($1.21), up from
VND13,900 ($0.84); and mazut at VND13,000 ($0.78), up from VND9,500 ($0.57).
Before adjusting petrol prices, the Vietnamese government had subsidized VND11
trillion ($687.5 million) for domestic petroleum importers in the circumstance of ongoing
global oil price soar in the first six months of this year. (Labor Jul 25 p1, Vietpan)
Vietnam’s Biggest Island Pulls in $1.8 Bln Investment
Phu Quoc in southern Kien Giang province, the biggest island in Vietnam, has to date
attracted 21 investment projects totaling $1.8 billion, said a provincial official.
Pham Vu Hong, chairman of the provincial People’s Committee, said the investment
mostly focused on the areas of tourism and real estate.
The province has also agreed in principle to 154 other projects, covering a 5,647-hectare
site and worth $889 million.
He also added that Kien Giang is speeding up the construction of routes in the island, An
Thoi Port and Duong To Airport to lure more investors.
Phu Quoc is an unspoiled tropical island in the Gulf of Thailand that is just a short flight
away from almost all Southeast Asia Cities metropolises. About 70% of the 567 square-
kilometer island is blanketed by rain forests and crisscross rivers and streams.
Phu Quoc expects to welcome 300,000 - three million visitors a year in the 2010-2020
span. Among them, the number of international arrivals makes up 30%-40% of the total.
Revenue from the hospitality sector during the period will also reach $45 million-$771
million.
Vietnam plans to develop the island into a tourist island that will attract between two and
three million visitors per year by 2020. (Youth Jul 25 p14)

152. Foreign Investment:
Sony Vietnam to Close Factory in Sept
Sony Vietnam will close its only factory that produces cathode ray tube technology-based
television sets in September this year to stop 14-year operation as part of its changed
business expansion strategy in Vietnam, state media reported Friday, citing a Sony
oficial.
“Sony Vietnam factory closure is within the global business strategy by Sony, not
because of bankruptcy or other difficulties,” Pham Xuan Anh Thy, communication
representative of Sony Vietnam said.
“Sony has decided to stop manufacturing TV light bulbs in almost countries around the
world, and this time we will stop making TV sets of such technology in Vietnam because
our partners have halted providing spare parts due to local shrinking demand,” Thy noted.
Instead, Sony will continue investing in Vietnam by setting up a 100% foreign owned –
named as Sony Electronics Vietnam Co Ltd -- which will expand its business in hi-tech
products, LCD TV, software products to meeting increasing local demand, the Sony
official emphasized.
Under the WTO commitments, Vietnam will allow foreign investors to get directly
involved in retailing sector from Jan 1 next year, and this business shift reflects great
expectation of Sony in the local market with 85 million people, 60% of whom age less
than 30 years, she said.
Sony Vietnam’s Ho Chi Minh City-based factory, a joint venture between Vietnamese
Viettronics Tan Binh and Sony, which is employing 440 workers, will be turned into a
warranty center of Sony.
So far, Sony has invested $16.6 million in Vietnam.
LCD TVs are most preferred in Vietnam with labels of Samsung, LG.
Vietnam targets export revenues of electronic products of $6 billion by 2010 from current
$3 billion. (Saigon Economic Times Jul 25, Young People Jul 25 p6, Pioneer Jul 25 p1)
Infrastructure:
Vietnam Lawmakers Discuss Establishment of Road Maintenance Fund
The Vietnamese National Assembly’s Standing Committee has discussed the
establishment of a road maintenance fund in Vietnam as many roads are being
downgraded, state media reported.

153. At the meeting, Transport Minister Ho Nghia Dung said the country has invested up to
VND2 trillion ($125 million) into road maintenance and management a year, however,
this meets just 40%-50% for national highways and 25%-36% for each locality.
The transport officials said, therefore, the road maintenance fund should be established to
improve the situation, adding that the effective spending one dollar for road maintenance
will help Vietnam save three dollars in transport expenses.
Delegates said the fund should beset up at a central level. The government will specify
the establishment, management and use of the fund.
Tran Dinh Dan, director of the assembly office, said “it doesn’t work to form the fund at
the central level and then allocate the money to provinces”.
“It wastes time and causes ask-and-give mechanisms”, he said, recommending that the
government should fund directly to provinces to manage and maintain their roads.
The transport ministry said that Vietnam needs $48 billion to build roughly 6,000
kilometers of national highways from now to 2020.
Vietnam has a 17,000 kilometer network of road with 732 bridges being downgraded,
meeting 50% of the transport demand. (Youth Jul 25 p2, Saigon Liberation Jul 25 p11,
Vietnam News Jul 25 p1)
Tourism:
$400 Mln Tourism Complex to Be Built in Central Vietnam
Central Binh Thuan province has granted a license to Deltza-Valley Ltd., Co to build a
$400 million tourism complex in the locality, the Dau Tu (Investment) newspaper said
Friday.
The Delta-Valley Binh Thuan project will cover 1,000 hectares. It will be home to golf
course, spa resorts, car parks and other entertainment facilities.
This is one of the biggest foreign-invested projects in Binh Thuan.
Prime Minister Nguyen Tan Dung on a recent visit to Binh Thuan has pledged favorable
conditions for the locality to tap potential to become a large tourism center in the country.
In the first six months of the year, the province welcomed more than one million visitors,
a year-on-year increase of 12.8%.
Over the past year, Binh Thuan licensed 38 projects to build large-scale tourist sites and
develop new tourism types. Of these, eight projects have been completed and have come
into operation.

154. The province is now home to eight four-star resorts and hotels, excluding the just-
completed Sea Lion. It targets more than 20 operational properties of four to five-star
ratings by 2010. (Investment July 25 p13, Saigon Liberation July 25 p11)
Politics & Law:
Spokesman: Oil, Gas Projects Within Vietnam Sovereignty, Waters
Spokesman of the Vietnamese Foreign Ministry Le Dung confirmed Vietnam’s
sovereignty over sea areas where it is conducting oil and gas projects with its foreign
partners, Vietnam News Agency said Friday.
“It must be affirmed that cooperative projects between Vietnam and foreign partners in
the oil and gas field, all lie within the country’s exclusive economic zones and
continental shelf,” Le Dung emphasized at a press conference July 24.
Dung made his confirmation when Reuters asked questions concerning cooperation
agreements in oil and gas field between PetroVietnam and foreign partners after China
recently pressured Exxon Mobile Corp to withdraw in a small project in the East Sea.
“They fall totally under Vietnam’s sovereignty and jurisdiction in accordance with the
1982 United Nations” Convention on the Law of the Sea as well as multilateral and
bilateral agreements Vietnam has signed,” the Vietnamese spokesman added.
Vietnam guarantees benefits of foreign investors, the spokesman noted.
“We welcome and create favorable conditions for foreign partners, including Chinese
partners,” he added.
In 2007, China had pressured foreign oil companies, including Britain's BP PLC, to stop
their oil and natural-gas exploration contracts with Vietnam in the South China Sea.
China, a giant awaken dragon, is trying to abate its hunger for oil and gas to maintain
highest GDP growth rate by pushing up exploration and exploitation in the world,
particularly in Kazakhstan, Russia, Venezuela, Sudan, West Africa, Iran, Saudi Arabia
and Canada and now South China Sea waters.
With 1.3 billion people, the People's Republic of China is the world's most populous
country and the second largest oil consumer, behind the U.S. (Vietnam News Agency Jul
25 p3, Vietpan Database)
Swiss President to Visit Vietnam Early Aug
President of Switzerland Pascal Couchepin and his wife will pay an official visit to
Vietnam early this August at the invitation of the host President Nguyen Minh Triet, the
Ministry of Foreign Affairs announced July 24.

155. Vietnam and Switzerland officially set up diplomatic ties in 1971.
The two nations signed an economic and trade cooperation agreement in 1993. In 1994,
Switzerland listed Vietnam in a group of countries for preferential treatment in trade.
However, the two-way trade still remains modest.
Bilateral trade between Vietnam and Switzerland in the first four months of this year
reached $185.1 million, up 18.36% on-year.
Switzerland had 46 valid investment projects capitalized at $720.86 million in Vietnam
by late 2007, ranking 18th among foreign investors in the country. (Saigon Liberation Jul
25 p1)
Vietnam Welcomes North Korean FM
Foreign Affairs Minister of the Democratic People's Republic of Korea (DPRK) Pak Ui
Chun will arrive in Vietnam today to start a two-day visit at the invitation of his
Vietnamese counterpart Pham Gia Khiem, the Saigon Giai Phong newspaper reported.
The two foreign ministers just attended the ASEAN Regional Forum (ARF)’s 15th
meeting held July 24 in Singapore, in which member countries jointly discussed issues of
common concern like the Korean peninsular, the Middle East, Afghanistan, Iraq and Iran
nuclearization.
Also at the gathering, ASEAN Foreign Ministers and the Democratic People's Republic
of Korea (DPRK) also signed documents on the DPRK’s participation to the Treaty of
Amity and Cooperation (TAC).
Also on the same day, Singapore's Foreign Minister George Yeo handed over
chairmanship of the Association of Southeast Asian Nations (ASEAN) Standing
Committee (ASC) to Thailand's Deputy Prime Minister Sahat Banditkul.
Vietnam was accredited as the ASEAN vice presidency and the vice chairmanship of the
ASEAN Regional Forum (ARF) for the next term.
The turnover of the ASC chairmanship came at the end of a series of annual ASEAN
foreign ministers meetings which included the 41st ASEAN Ministerial Meeting, the Post
Ministerial Conferences (PMC) and the 15th ASEAN Regional Forum (ARF) which
concluded just this afternoon. (Saigon Liberation Jul 25 p12)
Labor & Education:
Vietnam Youths to Get More Help in Job Placement

156. Young people will be provided with loans and consultancy for vocational training, start-
up business and working abroad as guest workers, under a scheme approved by the Prime
Minister on July 21.
The Ho Chi Minh Communist Youth Union Central Committee’s scheme, lasts from
2008 to 2015, is also set to improve capacity for ten key job placement and vocational
centers of the Youth Union between now and 2010.
It projects to train 60,000 vocational and employment consultants to ensure that 50 and
75% of young people have access to job information by 2010 and 2015, respectively, and
all young people who want to start business are provided with basic knowledge for their
purpose.
Under the scheme, the Youth Union Central Committee also draws up and implements
projects on raising public awareness of apprenticeship, especially young people.
Youth development is Vietnam’s top priority as well as the rest of the worlds. People
between the ages of 14 and 25 are the largest population group, accounting for 24.5% of
the population.
However, the country’s youth unemployment rate of 10% remains high. (Saigon
Liberation July 25 p1, Vietnam Agriculture July 25 p2)
Health & Environment:
Vietnam to Invest $1.46 Mln in Pharmaceutical Chemistry This Year
Vietnam will pour VND23.5 billion ($1.46 million) into pharmaceutical chemistry
industry this year, said a seminar chaired by Deputy Prime Minster Hoang Trung Hai
July 23 discussing measures to boost research and development of the sector.
The money will go to scientific technological research programs such as antibiotic semi-
synthetization technology and excipient production from cenlunoza.
Currently, the industry is only able to produce popular and low-tech pharmaceutical
chemistry products with the majority of inorganic chemicals and pharmaceutical
chemistry products from herbals, said the meeting gathering representatives from the
Ministries of Industry and Trade, Health, Finance, Science and Technology and related
enterprises.
Vietnam is targeting hi-tech programs for the industry like projects on producing 300
tons of antibiotic, 10,000 tons of sorbitol, 150 tons of high-grade excipient yearly.
At the event, the deputy PM asked the ministries of Industry and Trade and Health and
the Pharmaceutical Chemistry Office to speed up the establishment of a laboratory
specializing in pharmaceutical chemistry soon.

157. Hai also suggested that chemical and pharmaceutical corporations should co-operate with
foreign partners for consultation and project construction. (VNS Jul 24 p2, Vietnam
Economic Times Jul 25 p3)
First IVF babies Born in Vietnam’s Central Provincial Hospital
Hue Central Hospital in the central province of Thua Thien Hue has welcomed its first
six in-vitro fertilization (IVF) babies, the hospital announced this information at a press
briefing July 24.
The hospital is the first in Vietnam’s central region to apply IVF method from last
November with the support from the Ho Chi Minh City Infertility and Obstetric
Association that specializes infertility treatment.
Hue Central Hospital is expected to welcome an additional 15 IVF babies by year-end,
said the facility.
By mid January 2006, Vietnam had welcomed 2,815 IVF babies. Of the sum, 2,154 were
conceived at the Tu Du hospital, and the other 661 at the Central Obstetrics Hospital in
Hanoi.
According to statistics from the Health Ministry, approximately one million Vietnamese
couples encounter difficulties conceiving children naturally. (Labor Jul 25 p2, The People
Jul 25 p8, TN Daily Jul 25 p2)
Southern Vietnam Operates Australia-funded Water Treatment Plant
The Australian Consul General to Ho Chi Minh City, Mal Skelly, July 24 inaugurated the
Australian government-funded water treatment plant in Bac Lieu town of the Mekong
Delta province of Bac Lieu, the Thoi Bao Kinh Te newspaper said.
“The Australian government has pledged to help Vietnamese people gain access to clean
water and sanitation service, particularly the poor and disadvantaged people, " Mal Skelly
said.
The plant is part of the AUD80 million ($76.5 million) water supply and sanitation
project funded by Australia to benefit 280,000 residents in Mekong Delta towns of Bac
Lieu, Sa Dec and Ha Tien.
The Australian government allocated AUD48.9 million ($46.7 million) through the
Australian Agency for International Development (AusAID). (VietNamNet, Vietnam
Economic Times Jul 25 p4, www.cpv.org.vn, Vietnam Agriculture July 25 p2)
Culture & Society:
WB Funds $75 Mln to Land Management Projects in 9 Vietnam Provinces

158. The State Bank of Vietnam has authorized the Vietnam Bank for Industry and Trade
(Vietinbank) to carry out the World Bank-funded $75 million land management system
modernization and complete it from now to 2013, Vietnamese state media said Friday.
The bank will provide loans for the project, which is aimed at setting up a modern system
for registration, management and issue of land use certificates in northern Thai Binh,
Hung Yen and Ha Tay; central Quang Ngai, Binh Dinh and Khanh Hoa; and Mekong
Delta Tien Giang, Ben Tre and Vinh Long province .
Vietnam has outlined a detailed itinerary to modernize its land management system to
ensure the legitimate right of the state, investors and land users and combat land
corruption and wastefulness.
Earlier, the prime minister has agreed to allow the Ministry of Natural Resources and
Environment to hire French professionals to conduct a feasibility study on completing
and modernizing the land management system in Hanoi, central coastal Danang city and
Ho Chi Minh City.
The Fund for Assistance to the Private Sector (FASEP) of France also granted
EUR600,000 from for the project, the Vietnam News Agency said. (Family & Society Jul
25 p4, New Hanoi Jul 25 p7, Pioneer Jul 25 p13, Capital Security Jul 25 p6, Saigon
Liberation Jul 25 p1, Thanh Nien Daily Jul 25 p2, VNA Jul 25)
Mekong Delta: 47 Hospitalized for Food Poisoning
Forty seven workers from a private-owned aquatic product processing company in the
Mekong Delta province of An Giang have been hospitalized for food poisoning, the Lao
Dong newspaper said Friday.
The victims suffered from dizzy, headache, nausea after having lunch at the firm's
canteen, the paper said.
Fifteen workers had been discharged but the others were still in Chau Phu General
Hospital for treatment, said Nguyen Van Nhan, director of the hospital.
Provincial health officials are investigating into the reason.
In the first six months, Vietnam reported 4,718 food poisoning victims with 43 fatalities,
up 53% on year, said the Food Safety and Hygiene Department (FSHD) under the
Ministry of Health. (Labor Jul 25 p2, www.vtc.vn Jul 25)
Stock Market:
PetroVietnam Withdraws to Set up Hong Viet Bank

159. The Vietnam Oil & Gas Group (PetroVietnam) has decided to not establish Hong Viet
Commercial Bank as planned in response to the prime minister's requirement, the Labor
newspaper reported.
PetroVietnam Chairman Dinh La Thang said "the move is to respond to the government's
guideline to curb inflation and stabilize the economy amidst a lot of difficulties,"
Previously, the group had planned to contribute a 20% stake in the Hong Viet Bank.
Meanwhile, it still owned 9.5% stake, or VND9.5 billion, in the Global Petroleum
Commercial Joint Stock Bank (GP-Bank).
The Government Office’s Deputy Chairman Pham Viet Muon said "PetroVietnam is
allowed in invest in only one bank. If it still wants to found Hong Viet Bank, it must
withdraw capital from GP Bank,"
PetroVietnam has chosen to divest stakes in GP Bank to join in Maritime Bank. The
specific investment was not revealed. (Labor Jul 25)
Prudential Vietnam Fund Manager Okayed to Raise Capital to $1.6 Mln
Prudential Vietnam Fund Management Company (PVFMC) has got green light from the
State Securities Commission to increase its registered capital to VND25 billion ($1.6
million) from current VND23 billion.
The British life insurer Prudential set up the arm PVFMC in Vietnam in May 2005. The
company is allowed to establish and manage investment funds and provide advices on
financial and securities investment.
PVFMC is now managing the VND500-billion Prudential Balance Fund 1 (PRUBF1)
listed on Ho Chi Minh City Stock Exchange. (Vietnam Economic Times Jul 25 p10)
First Taxi Operator to Hit Stock Market
Anh Duong Viet Nam Joint Stock Company (Vinasun), one of the country's most
prestigious and quality taxi firms, is ready to float its 17 million shares on the Ho Chi
Minh Stock Exchange (HOSE) July 29.
The shares, coded VNS, will have the initial price of VND60,000 each at the trading band
of 20%.
The company holds the largest taxi market share of 40% in HCM City, and 60% in
neighboring provinces of Binh Duong and Dong Nai. It is managing nearly 1,750 cabs
and coaches that could be 2,500 by the end of this year.
Under the plan for 2008, Vinasun targets to earn VND69 billion ($4.2 million) and
VND744 billion ($45.1 million), up 30% and 55% on year, respectively.

160. Presently, big financial institutions own total seven million shares in Vinasun, including
Saigon Trade Corporation (Satra), Vietnam Investment Fund, Singapore's Temasek
Corp., and Prudential Vietnam.
The taxi operator is also to carry out some big realty projects in HCM City, such as
Vinasun Tower in District 1, apartment project in Dist 8, trading center in Dist 5. These
projects, once operational, are expected to bring in VND30 billion in net profit. (Vietnam
Economic Times Jul 25 p11, CafeF Jul 24)
Jul 25: Vietnam Shares Drop on Inflation Worries
Vietnam's shares closed lower for a sixth session in a row Friday on local selling on
worries that inflation will rocket to new record high after it hovered 27% in July, traders
said.
“Investors share the view that prices of goods and services will continue to rise in the
coming months following the fuel price hike on July 21,” a player with KimLong
Securities said.
Although some listed companies announce solid results in the first two quarters, high
inflation will weaken their profitability in the next quarters, he said.
“The bearish trend will dominate the market in coming weeks,” he said.
VN-Index today lost 6.33 points, or 1.45%, at 429.46.
Market volume totaled 8.9 million shares valued at VND328 billion Friday, down from
22.6 million shares valued at VND889 billon Thursday.
DPM, the most actively traded stock, fell 1.9% at VND52,000 after trading 1.2 million
shares, of which foreign investors bought 385,640 shares and sold 66,190 shares.
SSI, the second most active stock, dived 2.9% at VND43,600 on 1.2 million shares,
including 1.1 million shares bought by foreigners.
STB plummeted 2.6% at VND22,400 on a trade of 1.2 million shares.
VPK topped the decliners, falling 3% to below the face value at VND9,700.
In the upside, HPG rallied up 2.9% at VND49,100 on 712,350 shares matching orders,
including 178,180 shares bought and 2,100 shares sold by foreigners.
PET advanced 2.9% at VND21,600 on 375,270 shares, with foreigners buying 13,000
shares.

161. In total, 27 stocks closed higher, 124 lower and four unchanged.
All four fund certificates closed lower. (HOSE July 25)
Vietnam News
July 24, 2008
Inter-bank Forex Rate: $1=VND16,497
Economic Indicators:
Vietnam’s CPI Rises at Slowest Pace in July
Vietnam’s consumer price index (CPI) is estimated to increase 1.13% in July from June,
the slowest pace in a single month so far this year, the government-run General Statistics
Office reported Thursday.
The consumer prices, however, hovered 19.78% from the end of 2007 and 27.04% from
one year ago, the office said.
The 1.13% CPI rise in July is attributed to the lower rise in prices of foods and
foodstuffs, which account for 42.8% of the commodities basket to calculate CPI. These
items edged up 0.99% on month, of which food prices fell 0.36% and food stuff prices
rose 1.33% from June.
Foods recorded the highest CPI rise of 22.1% on month in May due to a sudden fever.
Costs of medicines and health care services registered the highest rise in July, at 2% on
month, followed by housing and construction materials, at 1.67%.
Postal and telecom services see a CPI fall of 0.05%.
Followings are details of each group:
Index in
Index in July 2008 compared with (%)
Jan-Jul
Base 08 vs 07
Jul-07 Dec-07 Jun-08 (%)
year 05
Consumer price index 145.93 127.04 119.78 101.13 121.28
Food and foodstuff 172.00 144.69 132.02 100.99 134.65
Of which: -Food 211.92 172.72 158.85 99.63 143.50
-Foodstuff 159.88 136.25 123.45 101.33 132.52
Beverage and cigarette 125.94 112.25 109.27 100.98 109.08
Garment, footwear, hat 123.02 110.93 108.16 101.40 108.85

162. Housing and construction materials 147.75 124.87 116.25 101.67 121.11
Household appliances and goods 122.30 109.56 108.04 101.53 107.13
Medical products and health care 119.84 109.49 105.95 102.00 108.20
Means of transport &
128.75 115.33 111.19 100.55 113.06
communication
Of which: Postal services &
83.71 88.80 90.65 99.95 88.18
telecoms
Education 111.35 104.20 103.16 101.02 102.64
Culture, sport and entertainment 112.44 104.83 106.18 100.85 103.85
Other consumer goods and services 129.59 113.79 109.37 101.14 112.57
Prices of gold surged 3.2% on month, while the prices of U.S dollar advanced 1.83%
against Vietnam dong.
The CPI increased 1.1% on month in urban areas and 1.16% in rural areas. It registered
the highest rise of 1.93% in coastal central region and the slowest rise of 0.69% in the
southeast granary region.
Among localities involving in CPI calculation, the central Danang province witnessed the
highest CPI rise of 2.46%.
Vietnam’s CPI rose 2.38% on month in January, 3.56% in February, 2.99% in March,
2.2% in April and 3.91% in May and 2.14% in June. (GSO Jul 24, VnExpress Jul 24,
People Jul 24 p8)
Banking & Finance:
Trade Deficit Doubles Difficulties for Vietnam Government
Big trade deficit, leading to current account deficit, is becoming a great threat for the
Vietnamese government, Benedict Bingham, a representative from the International
Monetary Fund, said at a conference on export situations in the first half and solutions for
the second half held in Hanoi Jul 22.
The threat will place Vietnam into a doubled difficult situation, making the country, on
the one hand, to increase foreign currency reserves or credit to offset balance sheet, on
the other hand, to implement tight monetary policy to recover confidence of domestic and
foreign investors.
The central bank tightening monetary policy to reduce trade deficit is right, but it needs to
take care of technical methods to lower price hike, he said.
Noritaka Akamatsu, director of the World Bank's Financial and Private Sector
Development Program, shared the view, saying that the tight monetary policy helped

163. slow down import growth, but it would put pressure on banks to join the interest rate
race.
For a long term, Vietnam should curb import growth by boosting export and well
implement the industrialization strategy to produce commodities replacing import items,
the official said.
In addition, Vietnam needs to offset balance of payment through mobilizing long-term
capital by developing securities and bond markets.
Bui Xuan Khu, Deputy Minister of Industry and Trade, said the government has take
measures to curtail import, including reducing imports of luxurious items. Therefore,
trade deficits have fallen over the past months, from $3.2 billion in April to $1.9 billion
in May and to $702 million in June.
Deputy PM Hoang Trung Hai has urged the ministry to closely monitor and control each
import item in order to curb trade deficit below $20 billion for the whole year.
According to the latest figures released by the General Statistics Office July 24,
Vietnam’s trade deficits are estimated to hit $15.01 billion in January-July. (Vietnam and
World Economy Jul 23 p4, GSO Jul 2008)
Vietnam Cuts $2.18 Bln from Investment Projects to Curb Inflation
Vietnam has slashed VND36 trillion ($2.18 billion) from halting and cutting a total 3,000
projects with state-owned companies taking lead in the cut in an attempt to curb soaring
inflation, the Ministry of Planning and Investment told a press conference Jul 23.
State-owned corporations have halted VND29.366 trillion projects, which is of great
significance of the government-launched campaign to curb double-digit inflation, the
state-run Nhan Dan (the People) newspaper quoted the ministry as noting.
Vietnam Shipping Lines Corp (Vinalines) and the Vietnam Shipbuilding Industry Group
(Vinashin) are taking the lead by cutting VND6.2 trillion and VND6 trillion, respectively,
the ministry said.
Banks loans invested by 15 state-owned corporations accounted for 52.9% of their total
investment figures, and making up 13.95% of their total assets, which are at safe level,
the ministry added.
Investments into securities, real estate and finance sectors accounted for 4.93% of their
total investment capital and represented 1.26% of their assets.
Party Chief Manh recently called on locals and businesses to accept to further tighten
belts to combat inflation after the government hiked 31% prices of gasoline. (The People
Jul 24 p8, Vietnam News Agency Jul 24)

164. VietinBank Cuts Lending Interest Rates
Vietnam Bank for Industry and Trade or VietinBank, the country's fourth largest bank by
assets, has cut interest rates on both Vietnamese dong and U.S. dollar loans, the Tin Tuc
newspaper reported.
On July 21, the Hanoi-based bank cut annual lending interest for Vietnamese dong loans
by 0.5 percentage point to 20.5%, and for U.S. dollar loans by 2 percentage points to
8.5%.
This is the second time in July VietinBank has cut lending interest rate for U.S. dollar
loans.
"The purpose of the decrease is to support clients to stabilize production, contributing to
inflation control and sustainable economic growth," Pham Xuan Lap, VietinBank's
Hanoi-based general director, said in a statement on its Website.
Customers who will enjoy the decreases include businesses involved in major
government projects, agricultural development, farm purchasing and processing, forestry
and fisheries exports, as well as importers of essential items such as gasoline, production
materials and pharmaceuticals, he said.
Early this month, other state-run lenders – BIDV, Agribank, and Vietcombank have also
reduced the rates.
Vietnam's central bank has raised rates three times this year and restricted credit growth
at 30% to slow inflation. (Industry & Trade Jul 24 p8)
Trade:
Vietnam’s Trade Deficit Being Narrowed-GSO
Vietnam is estimated to see big on-month drop in trade deficit in July at $800 million
from $1.3 billion last month and $961 million a year earlier, said the General Statistics
Office (GSO).
The sharp decrease reflects the country’s great efforts to reduce trade deficit in order to
curb inflation amid the recent petroleum price hikes.
In July, the country’s ships $6.25 billion worth of commodities, down from $6.43 billion
last month, and up 46.1% on-year.
The figure raises the country’s total export value in the first seven months to $36.87
billion, up 37.7% on-year. Of the total, foreign-invested firms contribute $20.4 billion, up
35.8% on-year and the domestic ones with $16.47 billion, up 29.1%.

165. Meanwhile, Vietnam spends $7.05 billion on imports in July from $7.16 billion in June,
lifting the country’s whole import spending to $51.88 billion in January-July, up 56.8%
on-year. Of
Of the total import value, the domestic sector is forecast to import $35.46 billion, up
70.4% on-year and the foreign invested sector of $16.42 billion, up 40.5%.
The figures resulted in the country’s trade deficit of $15.01 billion during the seven
months, up 2.67 times on-year.
Vietnam imported most machinery and equipment ($8.15 billion, up 40.3% on-year),
fuels ($7.75 billion, up 90.7%), steel and iron ($5.01 billion, up 96.6%), cloths ($2.66
billion, up 18.3%), electronics, computers and spare parts ($2.04 billion, up 36.1%),
plastics ($1.82 billion, up 38.8%), apparel and leather accessories ($1.46 billion, up
19.1%), animal feed ($1.18 billion, up 78.3%), fertilizer ($1.1 billion, up 118.9%),
chemicals ($108 million, up 28.4%).
Imports of automobile report the highest growth rate of 199.4% to $1.83 billion in
January-July.
Eight items have value of over $1 billion each during the first half. Of which, crude oil
still tops the list with 7.8 million tons worth $6.8 billion, down 12.1% on-year in volume
but up 52.2% in value.
It is followed by garments and textiles with $5.09 billion, up 20.5%, footwear with $2.75
billion, up 18.4%, seafood with $2.34 billion, up 17.7%, rice with 2.79 million tons worth
$1.81 billion, up 6.8% and 87.6%, respectively, woodwork products with $1.59 billion,
up 21.3%, electronics and computers with $1.44 billion, up 29.4% and coffee with $1.38
billion, up 3.8%.
Vietnam's imports are forecast to increase 31% on-year to $80.2 billion this year, lower
than the previous target of $85.7 billion set by the government, while the country will
attain an on-year export growth of 26% to $61.2 billion, said the Ministry of Industry and
Trade (MoIT). (GSO Jul 2008, Vietpan)
Vietnam, Iran Boosting Trade Ties
The Vietnam Chamber of Commerce and Industry and the Iranian Chamber of
Commerce and Industry and Minerals (ICCIM) July 23 co-organized the Vietnam-Iran
Business Forum in Hanoi, aiming to enhance and promote bilateral trade and economic
relations, local media reported.
The forum was part of a visit to Vietnam by the ICCIM’s Vice Chairman Ali Asghar
Khamenavi, who was accompanied by executives from 13 Iranian businesses.

166. During the event, representatives from both sides agreed that the current trade and
economic relations have not yet matched the two countries’ potential.
According to the Ministry of Foreign Affairs, trade turnover between Vietnam and Iran
steadily increased from nearly $30 million in 2003, $39 million in 2004, $100 million in
2005 and around $107 million in 2007.
Vice Chairman of VCCI Doan Duy Khuong said the figures were very modest and called
for a stronger effort to boost trade and economic cooperative relations between the two
countries.
A lack of information shared between business circles of the two countries and undue
attention to decisive stimuli to trade relations such as banking, insurance and transport are
mainly blamed for the poor trade, said Khamenavi.
Speaking at the forum, Iranian ambassador to Vietnam Ghavam Shahidi said Vietnam
and Iran have great potential for cooperation in the field of economics and trade. Apart
from the traditional areas of agriculture, garment and textiles, both countries can expand
cooperation in credit, banking and tourism services. Iran is committed to supporting and
creating favorable conditions for foreign investors including Vietnamese enterprises.
Early next month, Vietnam will send a delegation to attend the “Vietnam-Iran Business
Forum” in Tehran while Iran will arrange for a delegation of enterprises to come to Hanoi
with the aim of seeking business opportunities in Vietnam.
Iran has a great demand for importing rice, rubber, coffee, pepper, timber and wood
products, footwear, plastics, cashew nuts, ceramics, rattans and bamboos from Vietnam,
said the forum. (Vietnam Economic Times Jul 24 p4, Young People Jul 24 p2, Vietnam
& World Economy Jul 24 p1)
EU Ends GSP for Vietnamese Shoe Imports
Foreign ministers of the European Union (E.U.) member-countries have agreed in a
meeting in Brussels July 23 to end the Generalized System of Preferences (GSP) for
imported Vietnamese shoes from January 1, 2009.
In addition to leather shoes, caps, umbrellas, artificial flowers and some others exported
to the block will also no longer enjoy the GSP.
The ministers said Vietnam’s leather footwear exports to the E.U. market have accounted
for over 15% of total E.U. imports of the same product under the GSP so Vietnam is
supposed to have reached a certain competition level and is not necessary to enjoy the
preferential tariffs.
Meanwhile, they supported to extend the GSP for imports from developing countries
from January 1, 2009 to the end of 2011.

167. Vietnam expects to export $10.4 billion worth commodities to the European Union (EU)
this year, an on-year rise of 23.5% this year, the Ministry of Industry and Trade said. (Ha
Noi Moi Online Jul 24, Vietpan Database)
CHINAMAC Opens in HCMC
The China Machinery 2008 exhibition (Chinamac) was inaugurated in the southern
economic hub of Ho Chi Minh City Wednesday [July 23], state media reported.
More than 200 leading Chinese groups and enterprises in various industries are
showcasing in more than 250 booths equipment in metal manufacturing, packaging, food
processing, farming machines, printing and paper industries as well as equipment for
environmental cleaning.
Seminars and ceremonies for signing contracts between Chinese and Vietnamese
businesses will also be held during the exhibition, the fifth annual machinery show of
China in Vietnam.
The exhibition is jointly organized by the Vietnam Fair and Advertisement Company
(Vietfair), the Vietnam Association of Mechanical Industry, the Ho Chi Minh City
Industry Department, the China Council for International Trade Promotion and some
Chinese companies. (VNA Jul 24, Youth Online Jul 24)
Industry:
Vietnam’s Jan-Jul Crude Oil Export Value Up 52.2% to $6.8 Bln
Vietnam is estimated to have gained $6.8 billion from exporting 7.8 million metric tons
of crude oil in the first seven months of this year, up 52.2% on year in value and down
12.1% on year in volume, said the General Statistics Office (GSO).
In July, the country is forecast to have exported 1.09 million metric tons of crude oil, up
5.82% on month and down 10.65% on year, the office said.
The Southeast Asian country is estimated to have obtained $1.14 billion from shipments
abroad in the month, representing a rise of 6.54% on month and 60.78% on year,
according to the GSO.
“The higher earning is mainly attributed to higher crude oil price in the global market that
nearly hit over $144 per barrel in early July,” an official of the Ministry of Industry and
Trade said.
Crude oil is now Vietnam’s largest forex earner, contributing 18.44% to the country’s
export revenues between January and July, said the GSO.

168. Currently, Vietnam has no refineries, and it has to import refined oil products to meet its
fuel demand.
Vietnam is forecast to have spent $7.75 billion importing 8.29 million metric tons of
petroleum products in the first seven months of 2008, up 90.7% on year and 11.4%,
respectively, the office said. (GSO Jul 2008)
Vietnam’s Refine Oil Import Spending Up 90.7% to $7.75 Bln in Jan-Jul
Vietnam is forecast to have spent $7.75 billion importing 8.29 million metric tons of
petroleum products in the first seven months this year, up 90.7% on year and 11.4%,
respectively, said the General Statistic Office (GSO).
In July, the country is estimated to have imported 1.2 million metric tons of the products
worth $1.37 billion, up 144.2% on year in value and up 28.06% in volume, the office
said.
Vietnam heavily relies on imported petroleum products as it has no oil refineries. Its first
Dung Quat refinery is under construction and is slated for operation February 25, 2009.
GSO said that Vietnam is the third largest crude oil producer in Asia, 7.8 million metric
tons of crude oil valued at $6.8 billion in Jan-Jul this year, up 52.2% on year in value and
down 12.1% on year in volume.
The Vietnamese Ministry of Finance has recently increased the price of gasoline by
31.05% to VND19,000 per liter from VND14,500 in the wake of consecutive global oil
price hike.
The mazut price was raised by 36.8% to VND13,000 a liter from VND9,500 and the
kerosene price increased by 43.9% to VND20,000 a liter. Diesel was increased the least,
by 14.7% to VND15,950 from VND13,900.
Vietnam is expected to lose VND44,772 billion ($2.71 billion) in the second half of this
year if global crude oil prices to hitting $140 per barrel, brining total loss for this year to
VND60 trillion ($3.6 billion). (GSO Jul 2008, Vietpan)
Jan-Jul Coal Export Volume Down 22.7% On-year to 14.47 Mln Tons
Vietnam is estimated to export 14.47 million tons of coal in the first seven months this
year, down 22.7% on-year, valued at $811 million, up 38.4%, the General Statistics
Office (GSO) reported.
July’s figures are 1.35 million tons and $110 million, respectively, the office said.

169. The Ministry of Industry and Trade said this year it will cut coal export by 5 million tons
as compared with last year’s figure of 32.5 million tons to serve the increasing domestic
demand.
Vietnam is targeting to produce between 48 million and 50 million tons of clean coal by
2010 under Vietnam’s coal industry development strategy until 2015, a vision to 2025
approved by the prime minister recently.
The strategy also said the output will reach 60 million-65 million tons in 2015, 70
million-75 million in 2020 and 80 million tons in 2025. (GSO Jul 2008, Vietpan)
Ca Mau 1 Power Plant to be Re-operated Today
Ca Mau 1 thermal power plant will resume operating Thursday [July 24], a week sooner
than scheduled, which will help ease Vietnam’s current severe power shortfall, the
management board of the Ca Mau gas-power-fertilizer project said.
The gas-fuelled plant is expected to run at its peak capacity of 750 MW to generate 3
billion-4 billion kWh of electricity to supplement the country’s power grid after it was
halted repair from June 15 this year, the board attributed.
The $770-million plant is part of the $1.2-billion Ca Mau gas-power-fertilizer project in
An Khanh commune, U Minh district of southern Ca Mau province.
Meanwhile, Ca Mau 2 thermal power plant has been running trial at capacity of between
300 MW and 500 MW, and at full capacity of 750 MW from late August this year.
Vietnam is forecast to lack between 2,000 MW and 2,500 MW of power daily in July and
the power shortfall will prolong until August, a leader of state-owned Electricity of
Vietnam Group (EVN) said recently.
The country is forecast to lack 8.6 billion kWh of electricity this year and the figure will
climb to 36 billion kWh in 2020 and 120 billion kWh in 2030. (Youth Jul 24 p2)
$500 Mln Steel Mill to be Built in Central Province
The Vietnam Steel Corporation, or VNSTEEL, plans to build a steel plant with an annual
capacity of one million tons in central Binh Dinh province, said Dau Van Hung, VSC's
general director.
The $500 million steel factory will cover between 120 hectares and 150 hectares in the
locality.
The project will be kicked off in 2009 and completed in 2015.

170. Binh Dinh province has pledged to create favorable good conditions for the VSC to
execute the project.
VNSTEEL is considering three sites in the province to set up the plant – Nhon Hon
Economic Zone, Long Industrial Zone and Nhon Hoa Industrial Zone.
The corporation will cooperate with a Japanese company and some local companies to
carry out the project. (Saigon Times Daily Jul 22 p3, Labor Jul 22 p2)
Agriculture:
Agriculture Ministry Optimistic about Paddy Expansion
The shift of shrimp breeding areas and fruit orchards to paddy in Mekong Delta region
will not break Vietnam’s overall food project, local media reported, citing an official
from the Ministry of Agriculture and Rural Development (MARD).
Bui Ba Bong, deputy minister of Agriculture and Rural Development, said the ongoing
paddy expansion in Mekong Delta region, the Vietnam rice bowl, is to meet with market
demand, and it should be encouraged.
He said almost all of fruit orchards and shrimp breeding areas turned into paddy
cultivation are of low quality and value, adding that they have many diseases.
He added that the shift to paddy now brings more benefits than other crops like coffee or
rubber, because it takes farmers only three months to harvest, while coffee cycle is from
five to ten years.
The deputy minister believed the paddy expansion will profit farmers because rice prices
can not drop, at least in the next 10-15 years.
But he noted that the ministry, as well as local provinces, should provide farmers with
technical assistance, and market information.
Bong said Vietnam needs to keep at least between 3.8 million and 3.9 million hectares of
land for paddy cultivation, to ensure sufficient food for around 130 million people.
The Saigon Liberation reported that 20,000 hectares of cajuput in southernmost Kien
Giang province, which had been planned for paper production, were turned into paddy
plantation. The figure in Long An is more than 2,000 hectares. In Ca Mau, more than
2,200 hectares of sugarcane for local sugar refineries, were shifted into paddy fields.
In other Mekong Delta provinces like Dong Thap, Vinh Long, and Bac Lieu, tens of
thousands of hectares under cajuput, and fruit cultivation, and shrimp breeding have also
been devoted to paddy. (New Ha Noi July 24 p4, The News p3, Saigon Liberation p3)

171. Pangasius Exports to Russia Surprisingly Rise in H1
Exports of pangasius to Russia sharply increased during the first six months of 2008,
helping the foreign country to be the third biggest seafood importer of Vietnam, the
Vietnam Association of Seafood Importers and Producers (VASEP) said.
As of late June 2008, Russia imported 44,649 tons of pangasius, valued at $73.851
million, from Vietnam. In June, Russia imported $14.352 million goods.
The pangasius export revenues from Russia accounted for more than 12% of Vietnam’s
total export revenues from tra and basa catfish in the first half of 2008, the association
said.
The VASEP said pangasius exports to Ukraine also rocketed, with total import volume
hitting 9,464 tons in January-June period, worth $16.4 million.
Vietnam raked in $610 million from exporting 260,000 tons of tra and basa catfish in the
first six months of 2008, remaining a key seafood export item of Vietnam.
The catfish exports accounted for more than 32% of the country’s total seafood export
value, which was $1.89 billion, followed by frozen shrimp and squid exports with 31%
and 7.4%, respectively.
Currently, EU and Japan are the two biggest seafood importers of Vietnam. (The Youth
July 24 p14)
Porcine, Animal Diseases Rampant in Vietnam
Diseases affecting pig, animal and poultry seem to be rampant in localities of Vietnam,
with more outbreaks have been discovered in recent days, the Animal Health Department
said on its Web site.
The department said blue-ear disease among pigs was discovered in northern Ha Nam
province, bringing total number of provinces being affected by the disease to 14.
It said the disease affected four pigs out of a total flock of 24 in a household in Nhan
Chinh commune, Ly Nhan district on July 22, while continue spreading in central Thua
Thien Hue province’s Huong Thuy, Quang Dien and Phong Dien districts.
Blue-ear disease now remains in 12 other provinces of Soc Trang, Quang Ninh, Binh
Dinh, Phu Yen, Quang Nam, Hai Duong, Vinh Long, Ba Ria Vung Tau, Quang Tri, Bac
Lieu, and Gia Lai.
Meanwhile, an outbreak of foot and mouth disease has been found out in central Thanh
Hoa province, affecting 45 animals in Ha Linh commune, Ha Trung district, 55 cows and

172. 16 buffaloes in Vinh Ninh commune, Vinh Loc district, and two cows in Sam Son
township.
The outbreak in Thanh Hoa showed total province number in Vietnam being affected by
foot and mouth disease to three, including northern mountainous Cao Bang province and
northeastern Quang Ninh province.
The department said bird flu is still threatening poultry in two Mekong Delta provinces of
Tra Vinh and Dong Thap, and central Nghe An province.
The People today reported that congestion disease has damaged buffaloes in central Nghe
An province, especially in mountainous districts. Since early July, the disease has killed
66 buffaloes in Quy Chau district, and is spreading to neighboring districts of Con Cuong
and Que Phong. (The People July 24 p5, Cuthuy.gov.vn July 24)
Business:
Super Cars Still Arriving Despite Measures
Despite efforts by the government of Vietnam to tighten luxury imports to fight inflation,
cars worth several hundred thousand dollars are still arriving in Vietnam, the Vietnam
News Agency reported July 24.
Analysts said that some models appeared in Vietnam just several weeks after they were
introduced in foreign markets. Luxury car brand names appeared shortly in Vietnam like
Rolls Royce (13 units), BMW X6, which appeared in the world’s market in late April and
appeared in Vietnam in early July (7 units), and Bentley (20-30 units).
Owner of a HCM City-based automobile salon related that he is still selling several
luxury cars a month, even with the import tax being lifted to 83%. A client purchased
three luxury cars worth over $300,000 and made payment in cash.
High demand for hi-end cars in Vietnam has prompted luxury auto manufacturers like
Porsche, BMW, Audi, Rolls-Royce to race to look for distributors and authorized dealers
to boost sales in the Southeast Asian country, where the income per capita is less than
$1,000 per annum.
The analysts attributed massive arrivals of luxury cars to shortcomings in tax policies.
Notably, a brand new Rolls-Royce Phantom a Vietnamese businesswoman imported
directly from the British manufacturer in 2008 was imposed VND13 billion in tax, one
would see that the tax of $30,000 or VND500 million on used luxury cars proves to be
too low, they said.
The General Department of Customs said that 10,000 used cars have arrived in Vietnam
in the last two years, since Vietnam allowed used imports. Luxury cars have accounted
for nearly 50% of the imports.

173. Analysts have also urged the government to further increase taxes in order to reduce the
trade deficit. (Vietnam & World Economy Jul 24 p4)
Push Mail Service for Mobile Phones Launched in Vietnam
Viettel Telecom July 22 launched its push mail service named I-Mail for mobile
subscribers, the first service of this kind in Vietnam, state media has said.
After registering to use this service, mobile subscribers will receive emails in form of
MMS. They can reply to the mails on their cell phones.
The I-Mail service is available for almost all models of cell phones which have GPRS
and MMS support.
To use this service, users have to pay a VND15,000 monthly subscription fee and
VND500 for each outgoing mail. Customers can receive unrestricted numbers of emails
and don’t have to pay GPRS charges for receiving or sending emails. [$1=around
VND17,000]
Users will be exempted from monthly subscription charges for July and August 2008.
Viettel is now one of the three biggest mobile networks in Vietnam. The network
operator now reports 19.42 million subscribers. It is followed by MobiFone with over
13.4 million, VinaPhone 12.1 million and 3.14 million for S-Fone.
Currently, there are seven mobile operators in Vietnam—MobiFone, VinaPhone, Viettel,
S-Fone, HT Mobile, EVN Telecom, and new entrant GTel. (VietNamNet July 23,
Vietnam Panorama)
Foreign Investment:
Vietnam Striving to Boost FDI Disbursement
The Ministry of Planning and Investment (MPI) says it is making efforts to reach the set
target of the foreign direct investment (FDI) disbursement of $10 billion this year, an on-
year rise of 25%, Vietnam News Agency said.
The ministry will organize a dialogue between its leaders and foreign investors in
September to help agencies and localities nationwide timely settle investors’ proposals,
the agency said.
Head of Foreign Investment Department under the MPI, Phan Huu Thang, said it is not
easy for Vietnam to make a breakthrough in FDI disbursement due to undeveloped
infrastructure.

174. Thang added that the fast increase in FDI inflow has put great pressure on the Southeast
Asian nation’s infrastructure.
Low FDI disbursement is attributed to underdeveloped infrastructure, shortage of high-
quality manpower, and burdensome bureaucracy—three bottlenecks-faced by Vietnam,
analysts said.
A survey of 140 FDI companies by the Central Economic Management Research Institute
earlier this year showed that, 20% of slow disbursement in Vietnam was resulted from
changes in Vietnam’s policies, 70% of procedures and administration.
Meanwhile, the remaining surveyed enterprises said it was attributed to the holding
companies’ change in business strategies.
Foreign companies disbursed $5 billion FDI in the first six months of this year, up 37.6%
on-year. (Vietnam News Agency Jul 23)
HCM City Sees Two-decade FDI Record High
Ho Chi Minh City has licensed 271 new foreign direct investment (FDI) projects valued
at over $7.71 billion so far this year, marking a two-decade record, Vietnam News
Agency said Thursday.
The figure represents a rise of 12 times compared to the same period of last year,
according to the news agency.
Projects of note receiving the city’s licenses in the seven-month phase include the $3.5
billion Berjaya International University project, the TECO software park project worth
$1.2 billion and the $1.2-billion building by TA Associates Vietnam Ltd.
The fruitful result is attributed to the city’s efforts to improve investment climate, and
accelerate administrative reform in investment licensing procedures.
It also sought domestic and foreign capital sources to upgrade transport facilities,
seaports, and telecoms services to facilitate the implementation of investment projects.
The southern hub is now home to 2,908 valid projects totaling $24.91 billion, the news
source said. (Vietnam News Agency Jul 23)
Politics & Law:
French Senate President to Visit Vietnam
French Senate President Christian Poncelet will pay an official visit to Vietnam from July
27 to August 1, the National Assembly’s Committee for External Affairs announced July
23.

175. The reciprocation trip is made at the invitation of National Assembly Chairman Nguyen
Phu Trong, who just visited France last month to promote bilateral cooperation between
parliaments.
During his trip to France, the Vietnamese top legislator highly appreciated the importance
in boosting bilateral ties, particularly in trade and investment, with the European Union
member nation.
Bilateral trade between Vietnam and France reached $2.76 billion in 2007, up 32% on-
year. (New Hanoi Jul 24 p1, Saigon Liberation p1)
Labor & Education:
Vietnam State Agencies Facing Brain Drain in Market Boom Era-State Media
Vietnamese lawmakers have raised concerns about brain drain state agencies are facing in
the booming market economy as a total 1,000 key state officials massively quitted jobs to
work for joint ventures in Ho Chi Minh City recently, Vietnamese state media said
Thursday.
Vice Chairwoman of the Vietnamese National Assembly Tong Thi Phong put a
unanswered question how to keep able state employees at the working session of
lawmakers on draft law on state cadres.
Early this year, the government of Vietnam increased minimal monthly salary for
servicemen in army, political agencies and administrative bodies to VND540,000
($33.75), much lower than pays by foreign firms, a big gap to fill in the government fight
against corruption.
In the context of double-digit inflation and gasoline price hikes, Vietnamese with more
than 70% being farmers is struggling to survive, observers said.
Rapid urbanization with broader openness of Vietnam’s economy since it joined the
WTO in early 2007 has sharpened the headhunt competition among banks and firms in
Vietnam, state media said.
Meanwhile, local education sector with 325 universities, institutions and colleges cannot
meet the huge manpower demand with up to 50% of university graduates unqualified and
needed to be retrained, according to the Ministry of Education and Training.
Intel Vietnam recently complained that it had hurdles in recruiting high-qualified staff for
its $1 billion microchip factory in Ho Chi Minh City.
Currently, Vietnam has a total 195,442 state employees. (www.hanoimoi.com.vn Jul 24)
Vietnam Wins Two Gold Medals at Int’l Chemistry Olympiad

176. Vietnam won two gold and two bronze medals at the 40th International Chemistry
Olympiad held in Hungary from July 12-21, the Thanh Nien newspaper reported
Thursday.
The two gold medal winners were Vu Minh Chau from Hanoi National University and
Bui Tuan Linh from Hanoi Amsterdam.
Two bronze medals went to Chu Thi Ngoc Anh from Haiphong-based Tran Phu High
School for gifted students and Pham Anh Tuan from Hanoi National University.
Vietnamese students also reaped fruitful results at the 2008 International Math and
Biology Olympiads by taking two gold medals, two silvers, and five bronzes.
This year, Vietnam sent around 30 students to International Olympiads.
Vietnamese students always won prizes and they were listed as one of the strongest teams
in thirty-three years. Educational experts from Singapore and Malaysia sometimes come
to Vietnam to learn about math training courses and methods. (Young People July 24 p2,
Youth July 24 p2)
Health & Environment:
Vietnam Detects 12,800 PLWH in H1, down 16%
Vietnam identified 9,904 new HIV carriers and 2,837 AIDS developers in the first half of
this year, down 16% and 44% on-year, said the Ministry of Health.
The country also reported over 1,600 AIDS-related deaths during the time, down 27%
on-year, respectively, the ministry said at a conference reviewing for HIV/AIDS, drug
and prostitution prevention and control held in Hanoi July 23.
The figures have raised the country’s total people living with HIV/AIDS (PLWH) to
151,441.
The country is forecast to have 350,970 PLWH in 2010, including 157,000 AIDS
developers and 101,000 fatalities.
By late June, Vietnam reportedly had 169,000 managed drug users, down 9,212 cases.
(Vietnam Economic Times Jul 24 p2, VNA Jul 23, GSO Dec 2007)
U.S. Grants $330,000 to Help Vietnam City Build Flood Alert Center
The U.S. Pacific Command has decided to grant $330,000 to help the central coastal city
of Danang build a flood warning center, the city's Department of Home Affairs is quoted
by the Thanh Nien newspaper as saying Thursday [July 24].
Work on the 1,000 square-meter center will begin this year and is expected to be
completed in 2010, the paper said.

177. Vietnam is forecast to face more severe floods and storms this year than last year due to
La Nina, said the National Hydrometeorology Forecast Center.
Each year, the Asean country faces dozens of storms, which often cause deadly floods
and landslides.
Floods and storm killed more than 350 people in Vietnam last year, including about 90
killed by Typhoon Lekima and the floods in Oct. Total property damage was estimated of
up to VND7.2 trillion ($446 million).
Vietnam suffered losses of over VND814 billion ($49.3 million) caused by natural
disasters in the first half this year, up VND720 billion ($43.6 million) on year, said the
General Statistics Office. (Young People July 24 p2, Vietpan database)
Culture & Society:
Japan Grants Additional $1.3 Mln to Help Vietnamese Ethnic Minorities
The Japan Fund for Poverty Reduction has provided an additional $1.3 million grant to a
project through the Asian Development Bank to help Vietnamese ethnic minorities
develop skills and run small business operations, Vietnamese state media said.
Under the project, 4,000 locals in Mekong Delta provinces of Tra Vinh and Soc Trang
will be provided with vocational training, Voice of Vietnam said.
ADB said that the project will also help train 100 vocational trainers who will also join
150 officials from local departments of Labor, Invalids and Social Affairs and other
stakeholders in training courses.
“The project will link skills training directly to employment and income generation,” said
Yasushi Hirosato, senior education specialist at ADB’s Southeast Asia Department.
The government of Vietnam targets to promote local industries and businesses like the
food and canning sectors, which are expected to generate 12,000 new jobs every year,
VOV added.
The Mekong Delta region has 13 provinces with a population of 19 million, or 22% of
Vietnam’s population, however, 80% of them are living in poor remote areas. (VOV,
VNS July 24 p3)
Hanoi Reports 16 Private-Owned Notary Offices So Far
Hanoi capital city authorities have recently approved establishments of an additional nine
private-run notary offices, raising the total number to 16, the city’s Justice Department
said.

178. Of which, six offices have to date been granted licenses for operation and the remaining
are waiting for licensing, Vice Mayor Vu Hong Khanh was cited by New Hanoi
newspaper as noting.
The new offices will be located in Hai Ba Trung, Thanh Xuan, and Long Bien districts.
The appearance of these private-owned notary offices will help reduce pressures of the
state-run agencies and cut administrative procedures, analysts said.
Vietnam now has 140 state-run notary offices with nearly 400 employees, including six
offices in Hanoi and six agencies in HCM City. (www.vtc.vn/xahoi/186436/index.htm)
Stock Market:
USTDA to Tighten Cooperation with HASTC
The U.S. Trade and Development Agency (USTDA) will continue building technical
assistance programs to support the Hanoi Securities Trading Center (HASTC) in the
coming years, USTDA General Director Larry Walther affirmed in his working visit to
the bourse Wednesday.
During the visit, the two sides discussed on issues related to the development of
Vietnam's stock market, the market orientation, and the implementation of projects by
USTDA and HASTC.
In 2007, the U.S. agency and the Hanoi bourse finished the project "Feasible Research on
the project of developing HASTC", in which the U.S. government funded $422,000, the
Vietnam Economic Times reported.
USTDA and Vietnam's Ministry of Finance will continue expanding the project with
additional fund of $56,000. The plan will be finished by March of 2009.
Recently, the U.S. Department of Treasury also committed to supporting Vietnam in
government bonds' management and issue, and aiding the country's securities
commission to design the secondary market.
USTDA Deputy Director Henry Steingass, Regional Director Diana Rossiter, and
representative of U.S. Embassy to Vietnam also attended the visit.
Larry Walther also struck the gong to open the 667th trading session of the HASTC.
(Vietnam Economic Times Jul 24 p9, New Hanoi online Jul 23)
Unlisted Firms Allowed Independent Auditors
Unlisted enterprises can now hire their own auditors to handle financial reports upon
joining the OTC market instead of relying on auditors selected by the State Securities
Commission (SSC).

179. The SSC made the statement in response to queries of investors about the auditing of
unlisted firms after the incident of Bach Tuyet Cotton Company recently.
Bach Tuyet Cotton was suspended from trading for 11 days because of inaccurate
financial reports issued by the Auditing and Informatic Service Company (AISC).
However, if the companies plan to list shares on official bourses, they must use the SSC's
selected auditors and submit records for the two previous years, the commission said.
Previously, the SSC chose 28 auditors to deal with securities issuers, listed firms and
brokerages. Four of the 28 were foreign auditors. They must have registered capital of at
least VND2 billion in line with the requirements of the Ministry of Finance.
Nguyen Vinh Tam, a lawyer in a well-known Hanoi-based law suit, said the market
regulators should have a clear auditing system on both official and unofficial markets to
help better manage activity and punish violators.
Auditing of firms joining the OTC market should be stricter, Tam said, as the risk on the
market is higher, so they must focus on the transparency, especially business
performance.
The OTC market under the management of Hanoi bourse is expected to operate in the
third quarter, to help stimulate the current frozen market. (Vietnam News Jul 24 p19)
Bao Long Insurance Allowed to Issue 34.7 Mln Shares
Nha Rong Insurance Joint Stock Company, or Bao Long Insurance, has got thump-up
from the State Securities Commission to issue 34.7 million shares.
The company plans to issue the shares to the existing shareholders and employees, at
price of VND10,000 a share.
The Ho Chi Minh City-based insurer will increase its registered capital from current
VND160 billion to VND500 billion.
Vietnamese Prime Minister Nguyen Tan Dung has recently instructed to tighten the
supervision on share issuance to balance demand-supply to help recover the stock market.
(Vietnam Economic Times Jul 24 p10)
Jul 24: Vietnam Shares Decline on High Inflation Report
Vietnam's shares ended lower for a fifth session in a row Thursday as local investors
were selling after the government has just reported July’s inflation hovered 27.04% on
year.

180. “Investor sentiment remains weak because the sky-rocketing inflation will further hurt
listed companies,” a trader with ABBank Securities said.
“The pace of consumer prices will not dwindle soon after the government announced the
30% increase in gasoline prices Monday,” he said.
VN-Index today fell 9.8 points, or 2.2%, at 435.79. It lost total 11% over the past five
days.
Market volume jumped to 22.6 million shares valued at VND889 billon Thursday from
1.6 million shares valued at VND82 billon Wednesday.
STB, the most active stock today, tumbled 3% at VND23,000 on 5.1 million shares
changing hands.
DPM, the second most active stock, dropped 2.8% at VND53,000 on a trade of 4.7
million shares.
HPG fell 2% at VND48,000 on 1.8 million shares traded.
HBC topped the losers, closing down 13.3% at VND28,000 on ex-right date.
In the upside, PET rose 1% at VND21,000 on 894,740 shares matching orders.
NHC advanced the most by 3% at VND34,800 on 23,380 shares.
In total, 12 stocks closed higher, 137 lower, four unchanged and one untraded.
All four fund certificates closed lower. (HOSE July 24)
Vietnam News
July 23, 2008
Inter-bank Forex Rate: $1=VND16,496
Economic Indicators:
Vietnam’s July CPI Rise to Slow at 1.5% in July-Official
The preliminary figures show that consumer price index (CPI) in Vietnam rises on month
at only 1.5% in July, the slowest pace in a single month so far this year, said Bui Xuan
Khu, Deputy Minister of Industry and Trade.
This is the second consecutive month the CPI has gone down fast, thanks to the
government’s anti-inflation measures, he said.

181. The trade deficit in July is estimated at below $1 billion because of the limit in export of
luxury items, including automobiles.
The ministry forecast that Vietnam may reach the target to maintain trade deficit below
$1 billion a month by the end of this year, but it will not be able to curb inflation due to
the gasoline price hike on July 21, Khu said.
The consumer prices in two biggest cities, Hanoi and Ho Chi Minh City, were also rising
at a much slower pace in July than June.
The CPI in Hanoi is estimated to have risen 1.56% on month in July, slowing from the
2.39% rise in June, while the index in Ho Chi Minh City rise 0.54% this month,
compared with a 2.37% increase last month.
Prices of foods in Ho Chi Minh City, Vietnam’s largest city with population of eight
million people, fell 1.39% in July from a month earlier, lower than 1.77% in June.
However, food prices in Hanoi edged up 2.72% in July.
According to the General Statistics Office, Vietnam’s CPI rose 2.38% on month in
January, 3.56% in February, 2.99% in March, 2.2% in April and 3.91% in May and
2.14% in June. (Laborer Jul 23 p2, Cafef Jul 22, Vietnam Economic Times Jul 23 p1)
Banking & Finance:
Central Bank Pledges to Ensure Sufficient Dollar Supply
The State Bank of Vietnam, the country’s central bank, has affirmed on its Web site that
it has enough foreign currency sources to meet the demand of the economy.
People should not rush to buy foreign currencies to avoid unworthy losses, the central
bank gave warning after prices of the U.S dollar surged to VND17,500/USD in the free
market on July 21 after gasoline price hike announced.
The speculators have pushed up the prices of USD for a mercenary motive after the
government increased prices of gasoline.
The central bank reiterated that the VND/USD exchange rate ever surged suddenly in
middle June due to speculation and psychological factors. But the rate cooled down after
the bank made intervention into the market. (SBV Jul 21)
Dollar Prices Fluctuating in Vietnam Amid Petrol Price Hike
Free-market U.S. dollar prices have increased early this morning [July 23] against
Vietnamese dong after suddenly dropping to VND16,800/$1 Tuesday from the peak of
VND17,500/$1 a day earlier.

182. Foreign currency exchange agents in Hanoi are now offering to buy the greenback at
VND16,850 and sell at VND17,000 a dollar.
Vietnam's forex market, which has been quiet for many days, was heated by a decision
released on July 21 by the Ministry of Finance to increase retail petrol prices by
VND4,500 per liter.
Right after the information about petrol price hikes, sales agents told clients that they did
not have dollars to sell. Some other agents still sold dollars, but set overly high prices.
At 11 am on the same day, the biggest foreign currency exchange agent Quoc Trinh on
Ha Trung street was quiet because it only purchased dollars and did not sell. Nearby
shops were asking VND17,300/$1, a price level not seen for many days. Ten minutes
later, the price was raised to VND17,500/$1.
Analysts believed that U.S. dollar prices on the free market will be stable in the short
coming weeks as the country's central bank has affirmed sufficient foreign currencies to
meet all demands of the economy.
Gold, meanwhile, is currently traded at around VND1.89-1.91 million per tael, down
VND300,000 from a day earlier. (VnExpress Jul 23)
Giant Construction Corp Seeks to Set Up Bank
The Ministry of Construction has recently sent documents to the prime minister
proposing for Hanoi Housing and Urban Development Corp (HUD) to establish Dong
Duong Thuong Tin Commercial Joint Stock Bank (IDB).
Of which, HUD will be a founding shareholder with a contribution value of VND30
billion or 3% of chartered capital.
The contribution of HUD will help IDB get the permission from the State Bank of
Vietnam (SBV) soon.
At present, IDB is under the SBV's consideration period. (Vietnam Economic Times Jul
23 p2)
My Xuyen Bank H1 Profit Up 89% at VND45.8 Bln
My Xuyen Rural Commercial Joint Stock Bank (MXBank) reported that it earned pretax
profit of VND45.8 billion ($2.8 million) in the first half, rising 89.1% on year.
As the end of June, MXBank's total assets reached nearly VND1.7 trillion, up 69.5%
against the same period last year. It had VND1.4 trillion in total outstanding loans,
VND1.1 trillion in total deposits, an on-year increase of 113.1% and 163.6%,
respectively. The bad debt ratio was 0.2%.

183. The An Giang-based lender has a registered capital of VND500 billion which is expected
to be boosted to VND1 trillion within this year.
The bank plans to upgrade its operation model into an urban bank, and promote to set up
branches in 13 provinces and cities in Mekong Delta. (CafeF, Vietnam Agriculture,
Vietstock Jul 19)
Trade:
Ministry: Vietnam Jan-May Exports to U.S. Reaches $4.39 Bln
Vietnam’s total goods shipment value to the United States (U.S.) reportedly hit $4.39
billion in the first five months of this year, said the Ministry of Industry and Trade
(MoIT)’s website.
The country reaped $994.31 million from exports to the U.S. in May, the ministry said on
its website without giving comparative figures.
Garments and textiles took the lead with $1.91 billion, followed by crude oil with
$420.46 million, footwear with $408.69 million, woodwork products with $402.63
million, seafood with $210.66 million, coffee with $108.99 million and computers,
electronics and spare parts with $105 million.
The ministry did not revealed Vietnam’s import spending during the period.
Two-way trade between Vietnam and the U.S. is expected to surpass $15 billion this
year, as compared with $12.444 billion in 2007. (Vinanet Jul 23)
Deputy Minister: Vietnam to Raise Import Tax on Automobile, Gold
Bui Xuan Khu Minister of Industry and Trade is quoted by the Tuoi Tre (Youth)
newspaper as saying the government of Vietnam will likely increase import tax imposed
on automobiles, auto spare parts and gold in the coming months in order to reduce trade
deficit.
Banks will be also asked to stop loaning for businesses to import those items, Khu noted
at a conference in Hanoi Jul 22.
Khu did not disclose detailed tax hikes.
Benedict Bingham, a representative from the International Monetary Fund, said trade
deficit value accounted for up to 40% of Vietnam’s exports value, a really warning level,
the newspaper said.
In the first six months this year, Vietnam imported 90 tons of gold valued at $2.8 billion,
doubling $1.4 billion last year.

184. Currently, Vietnam is imposing 1% tax on gold and 83% tax on automobile and 15%
duty on car parts and components, state media said.
Vietnam imports are forecast to rise 31% on year to $80.2 billion this year and its exports
to increase 26% on year to $61.2 billion.
The Asean country is predicted to import $4.25 billion worth of cigarette materials,
consumer goods, finished automobiles, and motorbike spare parts this year, an on year
rise of 9.5%, but down $800 million compared with the year’s estimate. (Youth Jul 23,
Vietpan Database)
Vietnamese Rush to Buy Electric Bikes after Gasoline Price Hikes
Demand for electric bikes is increasing sharply as locals are rushing to buy after the
government of Vietnam hiked 31% of gasoline price to VND19,000, the biggest rise so
far, Vietnamese state newspaper said Wednesday.
“Gasoline prices are raised, therefore, I have to buy electric bicycles for my family
members to ride in the city,” Mrs Nguyen Thu Ha, a resident in Ho Chi Minh City’s Binh
Thanh district said.
Many bike shops in Ho Chi Minh City witnessed their strong sales over the past days. Ms
Ho Thi Thu Suong, a saleswoman of a Martin-labeled 107 bike shop, also said an
increasing number of customs hurried to buy bikes, and her shop has sold 15-20 units a
day.
“The demand for electric bikes will likely rise 10% in coming days,” Ms Huong forecast.
Prices of electric bikes range VND3.5 million to VND7.5 million a unit and most electric
bikes on sale at the domestic market are imported from China, Taiwan, Japan…with
labels of Delta, E-Bike, Viha, E-Go, Bluewing, Emperor, Robo, Plasma, Asama, Emoto,
Hitasa, and Songtian.
Currently, there have been no official figures of electric bikes in Vietnam. (HCMC Law
Jul 23, Tin Tuc Online Jul 23)
Industry:
PetroVietnam to Start Oil Production at Su Tu Vang Oilfield in Sep
State-owned oil monopoly PetroVietnam group will start oil production at Su Tu Vang
oilfield in September this year, the Young People newspaper reported, citing
PetroVietnam sources.
The oilfield’s initial output is estimated at 30,000 barrels per day and will be raised to
50,000 barrel per day by the end of this year.

185. Recently, PetroVietnam CEO Dinh La Thang said the group has planned to operate five
new oilfields sooner than their scheduled in a bid to fulfill its set target to produce
between 15.5 million and 16 million tons of crude oil this year regardless of current
difficulties in production.
The oilfields include Su Tu Vang, Ca Ngu Vang, Phuong Dong, Song Doc and Bunga
Orkid, which have a combined production output of about 100,000 barrels a day.
Thang said PetroVietnam is calling for foreign investment in exploring and producing oil
and gas in potential areas, while seeking overseas investment opportunities and purchase
of oil and gas wells in Africa, America, former SNG countries and Southeast Asia.
The group is finalizing negotiations to sign contracts on oil and gas exploration and
exploitation in Russia and Venezuela.
In the first half of this year, PetroVietnam produced 10.8 million tons of oil equivalents
from 7.2 million tons of crude oil and 3.6 billion cubic meters of natural gas in the first
half of this year.
The group obtained revenues of VND142,342 billion ($8.67 billion), including $5.6
billion from crude oil exports, and contributed VND50.53 trillion ($3.08 billion) to the
state budget in the January-June. (Young People Jul 23 p2, Vietpan)
Vietnam Operates Petroleum Port in Central
PetroVietnam Oil Corp (PV Oil) July 21 officially operated a petroleum port in central
Thua Thien Hue province by starting the first shipment of 4,000 cubic meters of diesel oil
from Vung Tau petroleum base depot to the port, state media reported, citing the
company sources.
PV Oil invested VND52.5 billion ($3.18 million) in the port in Chan May-Lang Co
economic zone.
The port will receive petroleum products distributed by PV Oil to localities in northern
parts of central Vietnam, said Ho Hong Phuc, head of Thua Thien Hue petroleum port
project’s managing board.
The port is expected to provide sufficient gasoline for domestic market in the central
region as well as for re-exporting to Laotian market, Phuc attributed.
In 2009, the port will receive petroleum products from the country’s first oil refinery
Dung Quat so as to distribute to central localities, he added.
PV Oil plans to invest more in the port in order to raise its storage capacity to nearly
30,000 cubic meters of petroleum by 2010.

186. Vietnam spent $5.92 billion importing 6.81 million metric tons of petroleum products in
the first six months of this year, up 68.9% on year and 4.4%, respectively due to the lack
of major oil refineries.
The first one Dung Quat is under construction in central Quang Ngai province with
expected operation in February 25 next year. (VietNamNet Jul 22, Youth Online Jul 21,
Vietpan)
Central Vietnam to Suffer Consecutive Blackouts until Mid Aug
Central and central highlands Vietnam are forecast to still endure sudden and consecutive
blackouts until mid-August this year, said Tran Dinh Thanh, director of Power Company
No. 3 (PC3).
Speaking at a meeting July 22 with an interdisciplinary inspection team that is
responsible for securitizing PC3's power supply in Danang, Mr. Thanh said power cut in
the areas is irresistible due to objective factors.
The company faced many difficulties in power production in the first half of this year;
meanwhile, the state-owned Electricity of Vietnam Group (EVN) has only distributed
between 710 MW and 740 MW of power for the regions.
To deal with such power shortage, PC3 has mobilized a total 78 diesel generators with
combined serviceable capacity of 30.7 MW to turn out 2,850 kWh of electricity in
addition to 189,000 kWh produced by local small-and-medium-sized hydropower plants,
Thanh attributed.
However, eleven local companies under PC3 have had to slash between 80 MW and 110
MW of electricity at rush hours in May, June and July this year, he said.
They has also cut between 96 MW and 239 MW of power at 18 local transformer stations
with capacity of 110 KV each across the regions, leading to recent blackouts on a large
scale in the regions for a long time.
Power-thirsting Vietnam is estimated to lack between 2,000 MW and 2,500 MW of
power daily in July and the power shortfall will prolong until August, an EVN leader said
recently.
The country is forecast to lack 8.6 billion kWh of electricity this year and the figure will
climb to 36 billion kWh in 2020 and 120 billion kWh in 2030. (Labor Jul 23 p7, Pioneer
Jul 23 p4, HCM City Law Jul 23 p2)
Vietnam Deputy PM Urges to Ensure Capital for Cement, Shipbuilding Industries

187. Deputy Prime Minister Honag Trung Hai has urged a series of measures to address
capital shortage for cement and shipbuilding industries while he chaired a meeting in
Hanoi July 22, state media reported.
Deputy PM Hai demanded commercial banks and cement project investors to quickly
negotiate loan rates in order to ensure sufficient capital for the industry’s key projects, the
Nhan Dan (The People) newspaper said.
He noted with existing and would-be cement plants, the supply may surpass the demand
in 2009-2010 so the cement industry must cut investment in some projects prior to the
current capital difficulties.
The Deputy PM also instructed the Vinashin Business Group to list export projects and
key projects for banks to consider and provide enough capital for the implementation of
the projects.
He said despite tightening credit growth to curb inflation, cement – an input material for
the construction and shipbuilding – export must be prioritized for investment in order to
ensure the country’s economic growth.
In the first half this year, Vietnam’s cement demand increased by 11% on-year and
consumption was 7.8 million tons, representing 101% of the yearly target. The industry
put into operation five new cement plants in the period.
Meanwhile, the shipbuilding’s industrial production value reached VND18.145 trillion,
up 86.59% on-year. It also exported cargo vessels of 53,000DWT and 34,000 DWT,
timber vessels of 8,700 DWT, oil tankers of 13,000DWT and 700-TEU containers. (The
People Jul 23 p8, Vietnam Economic Times Jul 23 p1, New Hanoi Jul 23 p1)
Vietnam Needs 3,200 Mln Tons of Minerals for Cement-making by 2020
Vietnam’s cement industry will need nearly 3,200 million tons of minerals to feed cement
plants nationwide by 2020 under a plan on exploration, exploitation and use of minerals
for cement-making in Vietnam by 2020 approved by the prime minister recently.
The country has surveyed 763 mineral mines with total reserves of more than 56,000
million tons.
Between now and 2020, the country needs to explore 2,212 million tons of minerals,
including 1,479 million tons of limestone, 370 million tons of clay and 363 million tons
of additive.
Total investment for exploration of mineral mines will be VND243 billion.
Meanwhile, it needs to exploit 3,174 million tons of minerals, including 2,172 million
tons of limestone, 586 million tons of clay and 416 million tons of additive.

188. Under the plan, the country will give priorities to exploration of mineral mines in areas of
developing cement industry, or mines in areas near cement factories. (News Jul 23 p4,
Vietstock Jul 23)
Ha Long Shipbuilder Launches 8th 12,500-ton Ship for Vinalines
Ha Long Ship Building Co, an affiliate of the Vinashin Business Group, July 22 launched
a 12,500-ton cargo ship to deliver to Vietnam Shipping Lines Corp (Vinalines), the Tien
Phong (Pioneer) newspaper reported Wednesday.
The ship named HL04 is the 8th among 32 ships that Ha Long will build for Vinalines
under the government’s plan to develop the national ship fleet.
The vessel with 136.4 meters in length, 20.2 meters in width and 11.3 meters in height
can travel at 13.2 nautical miles per hour.
The freighter, designed by Japan’s Kitada, has all of its machines and equipments
provided by a Japanese company, Kanemastu.
Ha Long shipyard July 18 also handed over a 53,000-ton ship to the U.K.’s Graig
Company, according to Vietnam News Agency.
The firm has set a goal to deliver at least five 53,000-ton ships this year with a total
industrial production value at VND2.4 trillion ($150 million) and revenue of VND2.3
trillion ($143 million). (Pioneer Jul 23 p6)
Agriculture:
Vietnam Seriously Lacking Salt for the 1st Time
Vietnam is lacking salt, especially salt for food industry for the first time over the past 50
years, state media cited an official from the Vietnam Salt General Company as saying
Wednesday.
Le Nguyen Chuong, deputy general director of the Vietnam Salt General Company, said
domestic supply now fails to meet demand.
The Ministry of Agriculture and Rural Development (MARD) said that Vietnam needs
1.38 million tons of salt this year, for both production and consumption, of which
domestic supply is expected at 1.105 million tons.
But the country produced nearly 539,000 tons of salt in the first six months of 2008, and
its total salt output this year will only be between 900,000 and 950,000 tons.

189. Shortage has pushed up salt prices to rocket four times higher than that of last year.
Currently salt is selling for VND1,700-VND1,800 a kilo at field, but its prices are
surging to VND4,000 a kilo at retail markets.
Chuong said salt production wholly depends on weather, adding that cold snap, and
consecutive rains reduced Vietnam’s salt output this year by at least 30%.
Reduction of salt area for industrial, urban and tourism zones in coastal provinces is also
attributed by the decrease of salt output, Nguyen added.
To calm down the shortage, the MARD has proposed importing 200,000 tons of salt,
including 100,000 tons for meal, which will be sold for around VND1,500-1,650 a kilo at
domestic market.
In the first five months of this year, Vietnam spent $9.92 million importing
150,000-160,000 tons of salt, accounting for 70% of salt import quota for 2008.
Vietnam is now home to 120 coastal communes producing salt, employing nearly 70,000
laborers. (The Labor July 23 p1, Vietnam & World Economy p2, Pioneer p2, Young
People p3, Rural Economy July 21 p3)
Vietnam Expects $1 Bln Tea Export Revenues by 2020
Vietnam is expected to rake in $1 billion tea revenues from now to 2020, with $700
million from exports, the Vietnam News reported, citing an official from the Vietnam
Tea Association.
But Nguyen Kim Phong, chairman of the association said to meet the target, the tea
sector has to continue developing current markets while seeking new ones.
“The sector should also produce high quality tea at reasonable prices,” Phong added.
Phong said Vietnam exported 40,000 tons of tea in the first six months of 2008, valued at
$53.5 million, up 2% on year.
Vietnam expected to increase the tea export revenues to $130 million by the year’s end,
Phong added.
The Vietnam Tea Association has carried out a strong development strategy, focusing on
modernizing tea processing, improving capacity and quality, and instituting training for
tea farmers.
The chairman said to increase the reputation of the national tea trademark, CheViet, on
both domestic and foreign markets, all tea products under the trademark must meet
national quality standards.

190. Currently, 35 provinces nationwide have grown 128,000 hectares of tea, supplying fresh
tea for 700 dried tea companies.
Vietnamese tea has been exported to 110 countries and territories worldwide, with 73 of
which realizing the Vietnam national tea trademark.
Taiwan, Germany, Russia, China and the Philippines are the country’s biggest tea
importers. (Vietnam News July 23 p15)
Worker, Material Shortages Threaten Handicraft Sector’s Target
Serious lacks of workers and materials, fueled by the recent price storm, have threatened
Vietnam handicraft sector’s target at $1.5 billion export revenues in 2010, the Vietstock
reported.
One of Vietnam’s top ten rattan and bamboo export firms said that though they had
recently signed a substantial export contract with a foreign company, they will be unable
to deliver goods timely because there were no suppliers between the northern region and
Binh Dinh province able to produce the four tons of processed rattan a day necessary for
production.
In terms of contracts, Vietnam’s craft businesses are doing well, but they must now
import 50% of their materials from Malaysia, Indonesia, Thailand and Laos, among
others, if they want to keep their contracts.
Such heavy reliance on imported products will reduce the competitiveness of Vietnamese
craft products, particularly as raw material prices rise.
The price of rattan has nearly doubled, reaching VND 9,000 ($0.5) compared to VND
7,000 ($0.4) a kilo last year.
Bamboo prices also increased VND7,000- VND17,000 (nearly $1) in 2007 and to VND
30,000 ($1.80) in the middle of 2008.
Another reason for the lack of products is insufficient labor for the country’s 2,000 craft
villages operating as households, collectives and private firms. These villages generate
around 1.3 million jobs.
Thailand, Indonesia and Malaysia have been planting rattan for export and for handicraft
production, and it has earned them billions of dollars a year.
Vietnamese craft firms have not found a way to promote their business at the same level.
A comprehensive strategy from authorities is needed to move their industry forward.
The country’s export turnover from craft products in 2007 stayed at over $219 million, an
increase of 14.4% against 2006.

191. In the first half of 2008, Vietnam exported $112 million worth of bamboo and rattan
products, up 19.4% on year. Meanwhile, exports of china and pottery products generated
in $182 million, up 7.2% on year. (Vietstock July 21, VNA July 21)
Vietnam Southern Province to Invest VND111Bln in Fishery Development
Mekong Delta An Giang province will pour VND111 billion ($6.5 million) into three
fishery developing projects, the Vietnam Association of Seafood Exporters and Producers
(VASEP) said.
The first project, with total investment of VND47.5 billion, is to build irrigational works
serving for agriculture in regions belong Tien and Hau rivers. The irrigational works are
to be built in districts An Phu, Tan Chau, Phu Tan and Cho Moi in the total area of 561
hectares.
Some VND51 billion will be pumped into the second project which will develop a model
of shrimp and paddy cultivation in the area of 1,500 hectares in Thoai Son district. The
project will also upgrade a hatchery in Chau Thanh district.
The remaining will be for the third project to supply training courses on high quality fish
farming and creating good breed for local fishers to develop marine culture.
Local authorities expected these projects will contribute to boosting aquaculture in the
province.
In the first six months of 2008, farmed fish production of the province reached 207,000
tons, up twofold over the same period last year. (Vasep July 22)
Business:
Transport Service Providers to Raise Transport Fees
Car transport fee will increase by around 16% as a result of the 31% rise in retail petrol
price, said Nguyen Manh Hung, Chairman of the Vietnam Automobile Transport
Association (VATA).
With petrol price soaring by VND4,500 per liter, petrol costs will account for 60% of
operation costs of transport service providers, up from 50% as previously, the chairman
added.
Taxi firms all said that they will raise their fees in the next two-three days and they have
the right to do that, said Hung, explaining that under the current regulations, transport
firms had the right to define transport fees themselves.
Hung, however, called on transport companies not to increase the fees to overly high
level compared to its operation costs.

192. Taxi firms in HCM City said that they are going to ask the city’s taxi firms’ association
to hold a meeting to discuss transportation fees.
“If taxi firms don’t increase fees, they will incur losses, however, if we raise fees, our
clients will say good bye to us,” Vo Ba, General Director of Ngoi Sao Tuong Lai
Company, the owner of Future taxi said.
A taxi car needs 20 liters of petrol every day, which means that taxi drivers will have to
pay VND90,000-VND100,000 for petrol, said Ba, adding that if his taxi firm
compensates them for the additional sum, he will have to pay VND30 million a day more
on average.
Taxi firms anticipated the petrol price increases, but he thought that the price would rise
to VND16,000-VND17,000 at maximum, said Ba, who did not imagine that the price
would be VND19,000.
Transport companies are worried how long the Ministry of Transport usually will take to
approve transport fee increases following petrol price hikes. (Vietnam & World Economy
Jul 23 p6, Labor Jul 23 p3)
Foreign Investment:
Malaysian Group Seeking to Build $2.9 Bln Steel Complex in Central Vietnam
Vietnam’s Vinashin Business Group and Maju Stabil Sdn Bhd Company under
Malaysia’s Lion Group are seeking the government’s approval to build a $2.9 billion
steel complex in central Ninh Thuan province, the Dau Tu newspaper reported.
The steel complex have an annual capacity of 4.5 million tons in the first phase and its
capacity will be raised to 10 million tons a year by 2025.
The project also includes two thermo-power plants with a capacity of 1,450 MW each
and a port capable of handling 15 million tons of goods a year, along with other
supportive works.
The first phase of the project is estimated to cost $2,749 million, of which, the two
companies will contribute $780 million and the remainder from loans.
Vinashin plans to hold a 30% stake in the project.
The government July 16 requested the Ministries of Industry and Trade, Transport, and
Natural Resources and Environment to work on the project and then report to the
government. (Investment Jul 23 p1)
Vietnam Northern Port City Pulls in $1Bln FDI

193. The northern port city of Haiphong has attracted over $1.05 billion in foreign direct
investment (FDI) since early this year with roughly one third of this coming into
industrial parks, said the city’s Department of Planning and Investment.
Of the total, $440 million came from 25 new projects and the rest poured into 15 existing
projects.
The city is encouraging investors in the area of industrial parks, marine industries and the
service industry, especially entertainment projects, said the department’s director Dan
Duc Hiep.
Haiphong is one of the northern Vietnam’s key economic regions and is home to the
second largest port system nationwide.
It has so far lured 283 valid FDI projects, capitalized at $3.7 billion, 60% of which has
been disbursed, Hiep said.
Last year, the foreign-invested sector accounted for more than 60% of the city’s total
export revenue of over $1.2 billion.
The city’s gross domestic product (GDP) reached more than VND9.1 trillion ($556
million) during the first six months of this year, up 12.2% year-on-year despite the
economic slowdown.
Haiphong City is situated at a convenient position for transportation to domestic
provinces and international networks via road, rail, sea, inland waterway, and air, making
it an ideal destination for both local and foreign investors. (Vietnam News Jul 23)
Infrastructure:
U.S. to Help Vietnam Develop Transport Infrastructure Network
The U.S. will help Vietnam develop transport infrastructure systems, particularly airports,
seaports in the long-term, Larry Walther, head of the U.S. Trade Department Agency told
Vietnamese Deputy PM Hoang Trung Hai in Hanoi Jul 22.
Larry Walther said his working trip to Vietnam is aimed at studying the real demand of
infrastructure development in Vietnam.
In return, Deputy PM Hai thanked the U.S. agency for its cooperation with Vietnam,
including assistance in aviation, improvement of the Hanoi Securities Trading Center,
Vietnam News Agency said.
Beginning operation in Vietnam in 1996, the USTDA has carried out 60 projects in
transport, customs, personnel training.
USTDA selected Vietnam 2006’s Country.

194. Three bottlenecks Vietnam is facing now are underdeveloped infrastructure network,
shortage of high-quality human resources and burdensome bureaucracy and
administrative procedures, analysts said. (Vietnam News Agency Jul 23)
Hanoi Needs $6.25 Bln for Road Development by 2020
Hanoi is estimated to require a huge capital of VND100 trillion ($6.25 billion) to develop
its road network from now to 2020 under a plan recently approved by the prime minister,
the Tien Phong (Pioneer) newspaper said Wednesday.
Half of the sum will be pumped into three belt roads which will be built from now to
2015, according to the newspaper.
The 43-kilometer belt road No. 2 running from Buoi, Nhat Tan, Vinh Ngoc, Cau Chui,
Vinh Tuy and Minh Khai will cost VND15 trillion and the road No. 3 linking Bac Thang
Long, Thanh Xuan, Phap Van, Thanh Tri and Nam Hong will need VND10.9 trillion.
Meanwhile, some VND27 trillion will be poured into the belt road No. 4 with
unidentified directions.
Additionally, the city will spend up to VND27 trillion to upgrade 30 main routes in the
seven years to come and invest VND17.4 trillion to build new streets and facilitate
existing ones.
It will also inject over VND5 trillion to upgrade many traffic knots such as Buoi, Cau
Giay to ease the warning traffic jam which is happening at around 100 knots and is likely
to sharply increase in the coming time.
The capital city now has 955 kilometers of road and 580 traffic knots. However, only
several knots have overpasses.
Over the past five years, Hanoi only developed additional five to ten kilometers of new
road annually. (Pioneer Jul 23 p5)
Politics & Law:
Japanese FM to Visit Vietnam
Foreign Affair Minister of Japan Komura Masahiko will be in Vietnam to chair a meeting
of the Vietnam-Japan Cooperation Committee slated for July 25, the communist party
said on its website Tuesday.
His visit is also expected to further reinforce the bilateral ties between the two foreign
ministries, contributing to bring the Vietnam - Japan relations to the strategic partnership.

195. To date, Japan has injected $9 billion in FDI in Vietnam, becoming the fourth largest
foreign investors in Vietnam, behind South Korea, Singapore and Taiwan.
However, Japan is the largest ODA supplier to Vietnam, with capital disbursement of
roughly $5 billion, mainly focusing on fields of infrastructure development, science and
technology, and human resource improvement. (Website of CPV Jul 22)
Indonesian Anti-corruption Officials Study Vietnam’s Experiences
A delegation of the Indonesia Anti-corruption Committee led by its chairman Antasari
Azhar is on a visit to Vietnam to study the country’s experiences in the fight against
corruption, state media said Wednesday.
At the meeting July 22 in Hanoi, Deputy PM-Vice Chairman of the Central Steering
Board for Anti-Corruption Truong Vinh Trong said his country is willing to share
experiences with Indonesia and also expects to learn good models in the matter from the
island nation.
The Indonesian guest expressed his admire to the country’s dynamic economic growth,
especially emphasizing the surge in foreign direct investment which he praised as the
progress made in its anti-corruption work.
On the same day, the Indonesian delegation also held a working session with General
Inspector Tran Van Truyen to learn about the Vietnamese government’s anti-corruption
activities and plans.
“Vietnam has promulgated the Anti-Corruption Law and a number of relevant legal
documents,” Truyen told the guests.
“The country has also been preparing to issue an anti-corruption strategy by 2020 and
compiling a project on monitoring incomes of public employees and Government
officials as well as a project to include anti-corruption into a training program.”
Both host and guest hoped to boost ties between their inspection and anti-corruption
agencies through concrete and practical programs of cooperation. (Vietnam News Jul 23
p3, Saigon Liberation p1)
Labor & Education:
Japan to Help Vietnam Train Chemical Specialists
Japan will lend Vietnam a helping hand to train five to six chemical experts this year,
especially on the safe management of chemicals and the EU’s REACH regulations, the
Kinh Te Vietnam & The Gioi newspaper said Wednesday.
Japan offered its assistance to Vietnam at the 13th annual meeting of the working group
on chemicals industry of the ASEAN-Japanese Ministry of Economics, Industry and

196. Trade’s Economic and Industrial Cooperation Committee (AMEICC) in Hanoi on July
22.
Through AMEICC, Japan has assisted Vietnam and other ASEAN member countries in
training experts for the chemical industry.
REACH is the EU’s toughest regulation on management of chemical substances used by
various industries to prevent negative effects on people’s health and the environment. It
was applied to thousands of kinds of chemicals from the beginning of this year. (Vietnam
& World Economy July 23 p1, Vietnam News p2)
Vietnam Allows Firms with over 10,000 Workers to Set up Schools
The Vietnam Government has turned green light to businesses with more than 10,000
workers to establish vocational training colleges, the Thoi Bo Kinh Te newspaper
reported Tuesday.
The government also allows setting up similar schools at lower levels at businesses with
less than 5,000 workers.
All training facilities under the new agreement are required to have an exclusive
department to study demands of businesses in order to develop relevant training
programs, the government said.
Deputy Prime Minister Nguyen Thien Nhan has asked the Ministry of Labor, War
Invalids and Social Affair (MoLISA) to cooperate with the Ministry of Education and
Training and other agencies to build a labor forecasting center and a website on the
country’s education and training sector.
Currently, Vietnam has 2,200 vocational training facilities, including 70 vocational
training colleges, which have reportedly so far failed to meet the real demands of
employers.
The country is home to more than 240,000 businesses employing nine million workers.
The number of businesses is expected to increase to 500,000 by 2010 and is hoped to
generate jobs for another 2.7 million people.
Vietnam is warned of a serious shortage of high-skilled workers when a survey
conducted in 2007 showed that trained workers accounted for just 35.4% of the country’s
workforce. (Vietnam Economic Times July 22 p2, Saigon Liberation July 21 p2)
Health & Environment:
Vietnam Reports 4,718 People Getting Food Poisoning in H1

197. Vietnam had reported 4,718 people suffering from food poisoning in the first half this
year, up 53% on year, the Sai Gon Giai Phong newspaper said, citing the Food Safety and
Hygiene Department (FSHD) under the Ministry of Health.
The fatalities were up 15 people against the same period of 2007, the FSHD reported at a
conference July 22 held in Hanoi, adding the number of food poisoning incidents of 106.
Head of the FSHD, Tran Dang, said the quantity of food poisoning incidents reduced by
12% on year, however, the number of people affected seems to be on the rise.
Northern Vietnam topped the list with 31 food poisoning incidents, followed by the
Mekong Delta region with 23.
South-eastern provinces recorded the highest number of poisoning victims accounting for
51.9% of total victims nationwide.
"Shortcomings in food hygiene and safety in factory canteens in industrial zones (IZs) or
processing zone are blamed for the increased number of food poisoning victims in the
south-eastern provinces", Dang confirmed.
However, 62.3% of food poisoning incidents has not been identified the cause and 68.8%
of incidents caused by poisonous mushrooms, the department warned.
The FSHD plans to strengthen its inspections and communication activities across the
country, especially focusing on schools, factory canteens, and mountainous provinces.
(Saigon Liberation July 23 p11, Family & Society - Labor - Pioneer p2, People's Police
p14, Capital Security p7, VNS)
Sawaco, Manila Water Ink $15-Mln Contract on Water Leakage Reduction
The Saigon Water Corp and the Manila Water Co. Inc. July 22 signed a $15-million
water supply development and management contract in Ho Chi Minh City in a bid to
reduce water leakage, the Tuoi Tre newspaper said Wednesday.
The five-year contract is Manila Water's first project in Vietnam, the company said in a
statement.
Under the project, Manila Water will install 119 district metered areas (DMAs) in the
districts of 1, 3, 5 and 10 to reduce 75,000 cubic meters of water a day, Tran Dinh Phu,
Sawaco's director said.
Manila Water, the concessionaire for the east zone of Metro Manila, is a unit of
conglomerate Ayala Corp. and partly owned by Mitsubishi Corp.
Manila Water had earlier said it is vying for projects in Hong Kong, Vietnam, India and
China. (Youth Jul 23 p2, Saigon Liberation Jul 3, Vietnam Economic Times Jul 7)

198. Vietnam to Build Additional Two Earthquake Alert Stations
The Geophysics Institute plans to build an additional two earthquake warning stations in
northern Son La province and central highlands Lam Dong province, the VietNamNet
said July 22.
The two stations are within a project to construct 30 new earthquake warning stations in
earthquake-prone areas with a total investment of VND70 billion ($4.3 million) in the
2009-2011 period.
The Asian Natural Calamity Prevention Center will build the new stations with
equipments imported from the US worth hundreds of thousands of US dollars.
Data collected from the new stations will be transferred via a Thai satellite. After the
whole earthquake alert system is completed, data will be conveyed via Vietnam’s
Vinasat.
Vietnam now has 24 stations located mostly in the northern region and only two situated
in central Nha Trang city and central highland Da Lat city.
Most of these stations were built in the 1980s so they are outdated already. Some old
stations will be improved.
The Information Center on Earthquakes and Tsunamis also has been set up inside the
campus of the Geophysics Institute.
The institute will install other stations across the country and on the islands of Phu Quoc,
Con Dao and Phu Quy after the construction of the first stations. (VietNamNet Bridge
July 23)
Culture & Society:
Vietnam Loses $1 Mln Daily due to Energy Wastage
Vietnam is estimated to lose around $1 million a day due to inefficient energy, said a
report jointly conducted by the Vietnamese Ministry of Science and Technology and EDP
organization of Holland in 2007, the Labor newspaper said July 23.
Le Van Chung An from the Ho Chi Minh City Department of Science and Technology
said that Vietnam needs up to 500 kilograms of oil equivalent to turn out $1,000 worth of
production while Japan consumes only 100 kg.
Many said that Vietnam often utilizes nearly double energy against regional countries
like Malaysia and Thailand in order to make a product.

199. The Vietnamese Ministry of Science and Technology estimated that Vietnam will have to
invest around $8 billion in a bid to attain an energy growth rate of 14%. Meanwhile, the
country is able to slash between 10% and 20% of energy demand, equivalent to a value of
$8 billion, if it applies efficient energy saving methods.
Dr. Pham Xuan Mai from the Ho Chi Minh City Polytechnics University said traffic jams
result in wastage of nearly VND3.5 trillion ($212.12 million) annually, which not only
holds back the economy but also causes environmental pollution.
Despite the Vietnamese government has issued three directives on petroleum saving and
a directive on power saving from 2003 to 2005, energy is still used inefficiently in the
country.
According to auditing, administrative spending surpassed 42% of the plan set for 2005
with a large amount of money being paid for petroleum and electricity consumption; and
the national power leakage rate climbed to 15.8% in 2006.
In a recent interview, Minister of Finance Vu Van Ninh said that the government will
continue demanding relevant ministries, branches and agencies to take drastic measures
to save an additional 10% of their regular spending with focus on electricity and
petroleum economizing.
Cities and provinces across Vietnam have also been requested to save a total of 1,035
million kWh of electricity in 2008, accounting for 1.5% of the expected national
commercial electricity output this year. (Labor Jul 23 p3)
U.S. Assist Vietnamese Drug Police in Tactical Training
Experts from the U.S. Drug Enforcement Administration (DEA) and the U.S. Department
of Defense (DOD) started July 21 training courses on tactical operation and emergency
medical instruction for Vietnamese drug police.
As many as 80 Vietnamese police officers will attend the courses, which are run in Hanoi
from July 21-August 1 and in Ho Chi Minh City from August 4-15.
The participants will be provided with the skills needed to conduct counter-narcotic
operations in a safer and more efficient manner, including drug raid planning and entry
techniques, defensive tactics, first aid, and arrest techniques.
In the first six months of this year, police forces across the country detected over 5,500
drug trafficking and storing cases, including 34 foreign-related cases, arresting 8,249
offenders.
The amount and the arrest increased 28% and 31%, respectively, against the same period
of last year. (Vietnam Law Jul 22 p2, Pioneer Jul 22 p3)

200. Stock Market:
Finance Ministry Allows Listed Firms to Delay Capital-boosting Deadline
The Ministry of Finance has agreed with the State Securities Commission (SSC) to allow
the listed companies to extend deadline for registered capital hike.
According to the Decree No.14/2007ND-CP instructing the implementation of the
Securities Law, a company listed on the Ho Chi Minh City Stock Exchange (HOSE) must
have a registered capital of at least VND80 billion and a firm on the Hanoi Securities
Trading Center at least VND10 billion as of January 1, 2009.
However, 50 companies on HOSE have not met the requirement so far this year.
Therefore, the extension of capital hike deadline will ease pressure on listed companies.
Since the beginning of this year, the listed firms have found difficulties in raising capital
due to the slumping stock market. Prices of shares lost more than 50% of their value in
the first half.
Thien Nam Import Export Co. (TNA) has decided to delay issuing 4.7 million shares to
boost its registered capital to VND80 billion as regulated by the Securities Law. In the
original plan, it would issue shares at VND25,000 for existing shareholders and strategic
investors. But TNA price fell to only VND21,100 on July 22.
The VND47-billion Saigon Garment Co. (GMC) has earlier this year planed to issue
shares at price of VND12,000 a share for existing shareholders and at VND27,000 a
share for strategic partners. However, the plan becomes bankrupt because the market
price of GMC stood at VND17,600 July 22.
GMC will have to delay the issue to another suitable time, said the company’s chairman
Le Quang Hung.
Pham Dinh Dung, general director of Vien Lien Co. (UNI) said his company will manage
to raise the registered capital to meet the requirement. UNI will use capital surplus and
retained profit, which is enough to boost the capital to VND80 billion. (Young People Jul
23 p7)
Vincom to Issue Int'l Convertible Bonds
The Vincom Joint Stock Company, one of Vietnam's leading property developers, plans
to issue convertible bonds on the international market and float its shares on a foreign
stock exchange, Vietnamese state media cited Vincom Chairman Le Khac Hiep as
saying.
The company will ask its shareholders' opinion on the issue and listing between August 4
and August 14 before unveiling the detailed plan, the Ho Chi Minh City Stock Exchange
announced.

201. The bond coupon will not be high as the bonds are convertible, Le Khac Hiep quoted by
the Saigon Times Daily.
"Vincom will not chase for prices and will also not accept to borrow money at a high
rate," he noted.
The real estate firm succeeded in issuing VND1 trillion of five-year bonds at annual
coupon of 10.3% late last year and VND2 trillion of five-year bonds at yield of 16% for
the first year in May to raise fund for its projects, Hiep said.
Chairman of the State Securities Commission Vu Bang said the procedures for issuing
convertible bonds on the international market would be more complicated than share
issues. In fact, no Vietnamese company has issued shares or convertible bonds overseas,
he said.
In the first quarter this year, Vincom netted profit of VND38.4 billion on revenues of
VND62.8 billion. (Saigon Times Daily Jul 22 p1, ATP Jul 18)
Bao Viet Securities Report Loss of VND324 Bln in H1
Bao Viet Securities Company (BVS) announced that it had a loss of VND324.1 billion
($19.6 million) in the first six months of 2008 due to the recession of the stock market in
the period.
The firm obtained VND97.5 billion in gross revenues while total expenses reached up to
VND418.3 billion between January and June.
In the second quarter this year, BVS made a loss of VND349.3 billion as it earned
revenues of only VND38.3 billion while it expended VND386.95 billion for total costs, it
said.
The stock broker's earning per share lost VND6,083.
Almost securities firms have faced great challenge since early 2008, and even in the
remaining months of this year. The stock market has lost 51.6% of its value so far. Many
small-sized brokerages had to sell stake to foreign partners to strengthen their financial
capacity.
Bao Viet shares have fallen 79.3% to close at VND42,800 each today [July 23] from
VND207,000 in the first trading session of this year. (Labor, Securities Investment Jul
23)
Jul 23: Vietnam Shares Plummet on Inflation Concerns

202. Vietnam's shares closed down Wednesday on local investors continuing to sell after
economists said the fuel price hike will push up inflation rate in the remaining months
this year.
The recently petroleum hike by as much as 30% will make CPI to rise by additional 1.5%
a month, but not 0.6%-0.7% as forecast by some ministries and agencies, said Le Dang
Doanh, a senior economist.
The Ministry of Industry and Trade revealed that the CPI in July is estimated to rise 1.5%
from June, but it is not convincing enough for investors to hope inflation will go down in
August, a market participant said.
“A government official said it will continue to curb inflation, meaning that it will go on
with the tight monetary policy, and this will hurt the stock market,” he said.
VN-Index today lost 12.29 points, or 2.68%, at 445.59.
Market volume was thin at 1.6 million shares valued at VND82 billon Wednesday,
compared with 1.6 million shares valued at VND77.8 billion Tuesday.
DPM, today’s most active stock, dived 2.7% at VND54,500 on 317,640 shares, of which
foreigners bought 301,400 shares and sold 19,900 shares.
HPG, the second most active stock, dropped 3% at VND49,000 on 129,160 shares,
including 103,550 shares bought by foreign investors.
FPT fell 2.3% at VND63,000 on 118,350 shares, of which foreigners bought 112,860
shares and sold 43,180 shares.
BMC advanced 2.8% at VND74,500 on a trade of 106,220 shares, including 55,010
shares bought and 1,200 shares sold by foreigners.
The newly-listed DDM closed up 3% at VND17,300 on only 10 shares traded.
In total, 145 stocks closed higher, six lower and three untraded.
All four fund certificates closed lower. (HOSE July 23)
Vietnam News
July 22, 2008
Inter-bank Forex Rate: $1=VND16,498
Banking & Finance:
Vietnam to Find Harder to Curb Inflation Due to Fuel Price Hike: GSO Official

203. The Government of Vietnam will find it more difficult in curbing inflation in the
remaining months of this year due to gasoline price hikes, said Nguyen Bich Lam, deputy
head of the General Statistics Office (GSO).
“The increase of gasoline prices by more than 30% will certainly have strong impacts on
CPI in coming months,” Lam said in an interview with the Vietnam Economic Times
July 22.
The petroleum hikes will directly push up prices transport service and fuel sectors, and
indirectly drive up prices of foods, foodstuffs and construction materials.
The increase of essential goods will then spread to other products for a long period.
“I think the fuel price hike will have the biggest impacts on the Government’s anti-
inflation efforts,” he said. “The Government has gone the right track with interest rate
tools and monetary policies to curb inflation, but the task is now more difficult.”
Minister of Finance Vu Van Ninh said the fuel hike will add by 0.5-0.7 percentage points
to the CPI rise in August, but “I don’t know why the ministry make such a forecast,” Lam
said.
The increase of gasoline prices this time will create great effects on consumer prices,
which also deteriorates the current downward CPI trend, he said.
Based on figures calculated by July 15, the GSO estimated that the CPI will fall
significantly in July from June, he said.
“We can expect the CPI in July will much lower than the 2.14% rise in June.”
The GSO has ever forecast that the CPI rise would be 24% or 25% this year.
”As of July, signals show that the situations remain positive and we can totally hope the
forecast will come true,” Lam said.
“However, the gasoline price hike will make it very difficult to reach this target.”
The government must have drastic measures to curb prices of essential products and
control market. Businesses must share the government’s burden in fighting inflation.
(VnEconomy Jul 22, Economy and Urban Jul 22)
Vietnam Accepts to Further Tighten Belts to Combat Inflation
General Secretary of The Communist Party of Vietnam Nong Duc Manh has just called
on locals and businesses to further tighten belts by boosting savings, cutting non-urgent
investment projects in line with government efforts to continue austere measures to curb
rising inflation, which rocketed 26.8% on year in June this year.

204. Party Chief Nong Duc Manh, one of the most powerful figures, emphasized at closing
ceremony of the party plenum that Vietnam will further tighten monetary policy in
combination with flexibly fiscal policy in the second half.
Manh also called for savings, cutting non-urgent investment projects, boosting exports,
reducing trade deficit to curb inflation.
The Vietnamese party chief also requested removing unnecessary administrative
procedures.
The government of Vietnam decided to hike prices of gasoline by 31% to VND19,000 to
slash huge cost of state subsidies and petroleum products rampant smuggling since the
start of the year it has not raised prices of any items, Finance Minister Vu Van Ninh said.
Vietnam had subsidized VND14.5 trillion for petroleum products as it has no single oil
refinery currently.
In the first six months this year, Vietnam had cut VND17 trillion investment projects, the
Ministry of Finance said.
Prime Minister Nguyen Tan Dung has just recently signed a decision to increase supports
for fishermen and their offshore fishing activities.
Minister of Agriculture and Rural Development Cao Duc Phat recently requested timely
providing insecticides and supports for farmers in Mekong Delta, the rice basket of
Vietnam.
The government of Vietnam has lowered the GDP growth rate to 7% this year from
8.5%-9% this year, reduce credit growth rate to less than 30% down from more than 50%
last year.
In the first half, Vietnam’s economy grew 6.5%. (Newspaper of Industry and Trade Jul
22 p2, VOV, VTCNews)
Agribank Sees Asset up 5.3% at $19.4 Bln in H1
The state-owned Bank for Agriculture and Rural Development of Vietnam (Agribank),
Vietnam’s largest bank by assets, said its fist-half assets grew 5.3% from the beginning of
this year to VND310.7 trillion ($19 billion).
In the conference on reviewing the first half operation July 20, Agribank reported its
deposit growth of 3.9% and outstanding loan growth of 4.8% by June from early-2008.
Agribank will extract VND5.14 trillion ($321.3 million) for risk prevention reserves this
year.

205. The bank said it will reduce loans for medium and long terms to 40% from 45% of total.
Agribank is developing a framework on building Agribank financial group in which the
bank will privatize affiliates, with Agribank Securities Co. and Agribank Jewelry Co. in
near term.
The bank will continue to give priority for lending agriculture sector, farmers and rural
areas, with loans accounting for 70-75% of total. (CAFEF Jul 22)
Laos-Viet JV Bank Launches Money Transfer Service
The Laos-Vietnam Joint Venture Bank (LVB) and Western Union have signed a
memorandum of understanding on providing an express money transfer service for
customers, particularly Lao and Vietnamese businessmen, state media reported.
The new service is necessary, especially in the coming time, when the demand to transfer
money among businesses of Laos and Vietnam is going up, said LVB Deputy Director
Bouavanh Simalavong at the signing ceremony late last week.
So far, a lot of Vietnamese businesses, who are making investment in Laos, have opened
their banking accounts at the bank, the official added.
Entering Laos in 2002, Western Union has so far made cooperation with several big
banks in the country. (http://www.ktdt.com.vn Jul 22)
Trade:
Vietnam May Not Import More Gold in H2
Vietnamese enterprises may not be allowed to import any gold in the second half of this
year, the Saigon Economic Times reported.
In the report on import and export situations in the first half and solutions for the second
half addressed by the Ministry of Industry and Trade (MIT) July 18, the column of gold
import for next six months is left blank, meaning that Vietnam will not import more gold
in the remaining months.
Vietnam imported more than 90 tons of gold valued at $2.8 billion in the first six months,
doubling from $1.4 billion imported in the whole 2007.
Earlier this year, MIT forecast that the country’s gold imports may hit $5 billion in 2008.
However, the ministry said in its most recent forecast in early July that Vietnam’s gold
import value will be only $2.8 billion.

206. An official from MIT said the central bank has agreed with the ministry on the gold
import quota.
Among import items needed control to restrain trade deficit, gold has highest import
growth rate, contributing to lift up the first-half trade deficit to $14.2 billion. (Saigon
Economic Times Jul 22)
Vietnam Ranks Fourth among Apparel Exporters to U.S
Vietnam is now the fourth biggest textile and garment exporter to the U.S. market with a
turnover of $2.4 billion in the first half, the Tuoi Tre newspaper reported, citing
Vietnam’s Ministry of Industry and Trade.
The ministry added the market-share of Vietnamese apparel products on the world’s map
also increases to 5.49% from 4.73% last year.
Prices of Vietnam-made textiles and garments shipped to the U.S. strongly grow, up 26%
on-year, according Le Quoc An, chairman of the Vietnam Textile and Garment
Association (Vitas).
At present, unit price is $1.70/sq.m on average on the world market while Vietnam’s unit
price on the U.S. market is $2.93/sq.m, just behind Sri Lanka $3.64/sq.m, An added.
Meanwhile, the unit price of China, the largest apparel exporter to the U.S., reduces by
2% compared the same period last year.
This year, Vietnam is expected to ship $5.4 billion worth of textiles and garments to the
U.S. market to secure second place behind China in the export of these products stateside.
(Youth Jul 22 p14)
Industry:
Vietnam to Operate First Oil Refinery Feb 25 Next Year
Vietnam plans to operate its first oil refinery Dung Quat February 25 of 2009 so as to
ease the country’s burgeoning petroleum imports, the Vietnam News Agency reported,
citing the plant’s management board.
In a bid to prepare for the hoped operation, the board has recruited and trained 1,046 out
of required 1,071 technical staff and operators for the plant.
The board has also prepared and clinched agreements in principle on services, material
supply and product distribution with oil and gas corporations.
Water and power systems have been well-prepared for the oil refinery’s trial run and
official operation, it said,

207. The board has formed regulations for harbors of single-point mooring system (SPM) and
the refinery’s product exporting while seeking for complex oil sources to substitute Bach
Ho oilfield-source oil that is estimated to fall in volume in the coming year.
State-owned oil monopoly PetroVietnam group, the oil refinery's investor, has recently
put into operation firefighting system at the plant, the agency said.
The system is equipped with U.S. and French modern devices and technology, a
PetroVietnam official said.
During a recent working visit to the oil refinery, Prime Minister Nguyen Tan Dung has
demanded sufficient manpower for operation of the plant and pledged financial support
for contractors in the wake of soaring prices to help them complete their work on
schedule.
The $2.5-billion oil refinery, with expected products of propylene, liquefied petroleum
gas (LPG), lead-free petrol, diesel and fuel oil, is under construction in central Quang
Ngai province, and is estimated refine 33% of the country’s entire demand for petrol and
oil.
PetroVietnam has recently sought permission from the prime minister to cooperate with
foreign partners to increase annual capacity of the plant to 16.5 million tons from earlier
designed 6.5 million tons.
Vietnam spent $5.92 billion importing 6.81 million metric tons of petroleum products in
the first half of this year, up 68.9% on year and 4.4%, respectively, due to the lack of
major oil refineries. (News Jul 22 p2, Vietnam & World Economy Jul 22 p7, Thanh Nien
Daily Jul 22 p6)
EVN Pledges Better Power Supply in Near Future
The stated-owned Electricity of Vietnam Group (EVN) has said it will strive to ensure
better power supply from July 25 or the first week of August this year onwards when the
country will only experience blackouts at rush hours ranging from 9:00 am to 11:00 am
daily, said General Director Pham Le Thanh.
EVN will also considerably improve electricity quality, the Saigon Liberation Online
newspaper quoted Thanh as saying.
Thanh's promise is based on the fact that Phu My 2.2 thermal power plant will be
operated again this week and some new power sources will be gradually put in use in the
coming time, raising the national power system’s capacity.
The group has not only re-arranged timetables of repair and maintenance at power plants
but also shortened time for completion to between 10 days and 15 days, Thanh said.

208. EVN pledged no more sudden blackouts but will inform its clients nationwide 10 days in
advance of detailed power cutting timetable in order to help them more active in their
production.
Mr. Thanh has recently, on behalf of EVN, apologized to its clients nationwide for recent
consecutive blackouts.
The Vietnamese Ministry of Industry and Trade has recently decided to establish not only
an interdisciplinary inspection team to securitize power supply but also a special
taskforce to supervise electricity regulation by Vietnam's sole electricity distributor EVN.
Vietnam is forecast to continue facing severe power thirst until August this year. The
country will lack 8.6 billion kWh of power in 2008. (Urban & Economy Jul 22 p5,
Vietpan)
Vietnam PM Urges Investigation into State-run Cement Plant
Vietnamese Prime Minister Nguyen Tan Dung has called on concerned agencies to
hasten an investigation into alleged financial irregularities and tax fraud at a state-run
cement plant, the Thanh Nien Daily newspaper reported.
Several ministries and the state-run construction and building materials corporation
COSEVCO should expedite the handling of financial irregularities at the Song Gianh
cement plant which were uncovered by the Government Inspectorate in April, PM Dung
instructed in a dispatch.
The Song Gianh cement plant project, in the central province of Quang Binh, was
undertaken by the Danang-based COSEVCO which is under the Ministry of
Construction.
The plant was commissioned in 2006.
In its report, the Government Inspectorate blamed former COSEVCO chairman Tran
Xuan Dinh for violations of bidding regulations at the Song Gianh cement plant.
Dinh and six of his subordinates were arrested in February for alleged financial
wrongdoings during the construction of a wood plant built by COSEVCO in the central
province of Quang Tri in 2005.
PM Dung asked the Ministry of Construction and COSEVCO to make a thorough review
of alleged improper payments and dodgy equipment purchases at the Song Gianh cement
plant.
The review is to report back by September at the latest, the note said.

209. According to the April report by the Government Inspectorate, arrested chairman Dinh
was blamed for allowing German contractor Polysuis AG to be paid in euros when the
cost of building the plant had been calculated in US dollars.
The oversight was estimated to have caused the loss of around VND540 billion ($33.5
million) of government funds.
The Government Inspectorate found Polysuis AG imported equipment from Asian
countries instead of Europe as stipulated in its contract.
It also concluded COSEVCO had violated bidding regulations by appointing 11 building
subcontractors without carrying out any bidding process.
The completed cement plant has fallen short of targets, with its 2006 losses estimated at
around VND66 billion.
The plant still owes banks about VND3 trillion ($188 million), the Inspectorate’s report
found.
In the dispatch, PM Dung also told the Ministry of Police to further probe a suspected
VND2.3 billion ($143,000) tax fraud involving a Mercedes car worth 45,000 euros
($71,200).
During the construction of the cement plant, Polysuis AG gave COSEVCO the car and
the corporation then sought permission to resell the vehicle to an employee of the
German contractor to avoid paying the import taxes of VND2.3 billion.
However, the Inspectorate found chairman Dinh had been using the car – until the day he
was arrested.
Those found to have violated financial regulations should feel the full weight of the law,
PM Dung said.
In its April report, the Government Inspectorate also called on police to widen their
investigation into COSEVCO’s other activities. (Thanh Nien Daily Online Jul 20)
Vietnam Bank Finances VND272 Bln for Dong Banh Cement Project
The northern Lang Son province-based Vietnam Development Bank branch has pledged
to provide a eight-year credit loan of VND272 billion ($16.48 million) for Dong Banh
cement project, the Tien Phong newspaper reported.
The cement plant, developed by the Dong Banh Cement Joint Stock Company, is
estimated to cost a total of VND1.3 trillion.

210. The plant is scheduled to go on stream in the third quarter this year to turn out 2,500 tons
of clinker a day, or 910,000 tons of cement a year.
Materials for the operation of the facility will be the limestone source available in the
locality. (Pioneer Jul 22 p6)
Agriculture:
Vietnam Announces Taxes on Rice, Fertilizer Exports
Vietnamese Prime Minister Nguyen Tan Dung July 21 issued a decision on imposing
taxes on rice and fertilizer exports, with highest levels of VND2.9 million a ton of rice
and VND5,000 a kilo of fertilizer, website of the government reported.
This is the first time the government imposed taxes on rice export that it used to control
by quota.
Accordingly, exported rice will be imposed eight levels of tax, which are based on Free
of Board (FOB) prices. A tax of VND500,000 ($30.3) will be lived on a ton of rice
exported for between $600 and $700 prices.
Meanwhile, rice exported for from $700 to $800 a ton will be imposed VND600,000
($36.36) tax.
The taxes will increase from VND800,000 to VND2.9 million a ton for export rice prices
of between $800 and $1,300 a ton.
For fertilizer, the VND4,000 a kilo tax will be imposed on SA and DAP fertilizer exports,
while VND5,000 a kilo will be on urea and Kali fertilizers.
Vietnam exported 116,000 tons of rice in the first 11 days of July, raising the country’s
total rice export volume to 2.42 million tons so far this year, up 1.3% on year, according
to the Vietnam Food Association (VFA).
The VFA has recently raised export floor prices of its 5% broken rice by 4.2% to $750 a
ton, FOB. (chinhphu.vn July 21, The People July 22 p7, Vietnam Agriculture July 22 p1)
Belgian NGO Grants EUR460,000 to Agricultural Promotion Program in Vietnam
A Belgian NGO, Flemish Office for Development Cooperation and Technical Assistance
(VVOB), has recently launched a EUR460,000 agricultural promotion program in five
Mekong Delta provinces from now up to 2012, the Vietnam News Agency said Tuesday.
Duong Minh Hoang, director of the Soc Trang Agriculture Promotion Center, said that
the project will provide technical assistance to help farmers design yearly production
plans basing on their actual needs.

211. Under the program, local farmers in Soc Trang, An Giang, Long An, Binh Phuoc and Ba
Ria-Vung Tau provinces will be helped to develop agricultural production, the agency
said.
This year, it plans to build a laboratory in Soc Trang province and hold technical training
courses for farmers and agricultural promotion cadres.
The program is part of the Mekong Delta Agricultural Extension Project (MDAEP)
conducted by VVOB and the Mekong Delta Development and Research Institute in the
2001-2007. (VNA July 22, News July 22 p2, Vietnam Economic Times July 22 p4)
$21.2 Mln MDF Plank Plant to Run in Long An in 2009
The MDF plank plant with total investment of VND350 billion ($21.21 million) will be
commissioned in 2009, the Saigon Liberation reported, citing an official from the
Vietnam Forestry Products General Company (VINAFOR).
Pham Quang Hien said at a recent seminar in Long An province seeking ways for stable
development of cajuput forest trading and production in Mekong Delta that in the first
phase, the plant will focus on producing tiny cajuput wood.
The plant, covering 28 hectares in Tan Dong commune, Thanh Hoa district of Long An
province, will buy cajuput wood at estimated prices of VND500,000-VND550,000 a ton.
Hien said in the second phase, around two years later, the plant will use around 1,500
tons of cajuput daily to produce MDF plank. He added that once the plant officially
comes into operational, it needs around 17,000 hectares of cajuput materials.
Eight provinces in Mekong Delta region have cajuput forests, with total area of 135,000
hectares.
Long An is the largest of its kind, but its cajuput forest area decreased from 60,881
hectares in 2006 to 58,400 hectares.
Low price of cajuput wood is the main reason for the decrease of cajuput area, averaging
at only VND180,000-200,000 a ton early this year.
Hien said the price has soared to VND400,000-VND450,000 a ton currently. (Saigon
Liberation July 21 p6)
Business:
Vietnam’s Realty Market Remains Attractive to Foreign Investors
Vietnam’s real estate markets remains attractive to foreign investors with a series of
newly-licensed big projects, despite of global economic slowdown and domestic high
inflation, Vietnam News Agency said.

212. Ho Chi Minh City has recently granted licenses to many property projects, with the $3.5
billion project to build International University Township by Malaysia’s Berjaya Leijaya
Group being the largest.
The city also licensed a $120-million, invested by another Malaysian investor Aseana
Properties, to build the Horizon Place urban center.
Meanwhile, Brunei’s New City Properties Development Co. Ltd. received an investment
license from central Phu Yen province for a $4.3-billion tourism complex. The project
will house luxury resorts, 4,300 five-star and 8,900 four-star hotel rooms, 160 high-grade
villas, and a 36-hole golf course.
Indochina Capital earlier kicked off a number of large projects, including the $100-
million Hyatt Regency resort in the central city of Danang.
During a recent trip to Vietnam, President of Israeli Elad Group, Issac Tshuva, expressed
his desire to build a seven-star hotel in Hanoi, the first of its kind in Vietnam.
The hotel will be home to a conference hall, an advanced building complex and other
facilities which satisfy international standards, the visiting guest said, adding that the
model has been carried out in Singapore.
Recently, Japan Asia Vietnam Co,. Ltd (Javco), which is active in areas such as
architectural design, landscape design and management, has opened an office in Ho Chi
Minh City, making its first step of doing business in the country’s property market.
According to the Ministry of Planning and Investment, the Southeast Asian country
attracted $13 billion into real estate sector in the first half of the year, accounting for 40%
of the total amount of foreign investment. (Vietnam News Agency Jul 21)
Vietnam Realty Developer to Target 15% of Market Share by 2010
The Housing and Urban Development Corporation-HUD under the Ministry of
Construction-said it has set the target of achieving 15% of the realty market share by
2010 in Vietnam, Nguyen Dang Nam, CEO of HUD said.
The government of Vietnam has tasked HUD to regulate the real estate market with the
focus on medium income earners, policy beneficiaries and low income earners, Nam told
the Ha Noi Moi reporters.
HUD is now implementing large-scaled realty projects such as Viet Hung project on 320
hectares in Hanoi, 450-ha Chanh My realty project in southern Binh Duong province,
159-ha Dong Tang Long project in HCMC.

213. The unlisted HUD had a registered capital of VND1.69 trillion by end of last year. HUD
plans to raise its capital to VND4.675 trillion in the coming years.
HUD is seeking approval from the prime ministerial to contribute VND30 billion to
establishment of a bank.
Deputy Prime Minister Hoang Trung Hai chaired [Jul 21] a meeting on measures to boost
the realty market by accelerating streamlining administrative procedures in the field, the
government of Vietnam said on its Web site.
Last year, prices of office rental and apartments for rent soared 50% on year and the
prices have lost 35%-60% since March this year. (Government Web site Jul 21, New
Hanoi Online Jul 22, www.ktdt.com.vn Jul 22)
Local Firm Starts $100-Mln Residential Area in HCM City
Company 7-5, a unit of Military Zone 7 High Command, has recently kicked off
construction on a residential area capitalized VND1.6 trillion ($100 million) in Ho Chi
Minh City, the Youth newspaper said Tuesday.
The project covering 32.4 hectares in District 9 will house villas, apartments, houses,
commercial areas and public utilities.
Huynh Van Tai, general director of the company said, the project will be developed in
two phases.
The first, designed to build roads, electricity, water systems, parks, school, villas, will be
completed in 2010. The second phase will develop houses, 12-story apartment building
and be put into use in 2012.
Once fully finished, the project is expected to provide accommodation for 6,400 people,
Tai added.
The company specializes in developing urban area and real estate and roads. It has joined
in many projects, including an expressway linking Lien Khuong Airport and the hilly
resort town of Dalat in Lam Dong province, a new residential area in Dalat, and a
property project at HCM City’s District 1.
Aseana BDC Company, a joint venture between Aseana Properties of Malaysia and the
Binh Duong Joint Stock Company, July 11 received a license from Ho Chi Minh City’s
authorities for a $120-million residential area, Vietnam News Agency said.
The joint venture will build Horizon Place residential area on 8,400 square meters in in
the southern commercial hub’s district 4. (Youth Jul 22 p15, Saigon Times Daily Jul 21
p3)

214. Vietnam Firm to Build $45.1 Mln in Coffee Plant in Laos
Dao Huong Group has decided to invest VND778 billion ($45.15 million) in building an
instant coffee plant in neighboring Laos’ Champasak province, the Vietnam News
Agency reported.
The group’s Chief Executive Official (CEO), who received the “ASEAN’s good
business” title at recent Global Women Summit in Hanoi, said the group has ordered
modern technologies from Germany’s E&E Co., and Denmark’s Anhydro Co.
Construction of the plant is scheduled to start in the next two years. Once operational in
2010, Dao Huong expected its coffee to be welcomed at foreign markets, especially in
Japan, Taiwan, Asian-Pacific region, and EU being targeted. (Vietnam & World
Economy July 22 p13)
Vinacafe Striving for a Strong Group
Vietnam Coffee General Company, or Vinacafe, has tried its best to become a strong
group in 2010, the Vietnam Agriculture reported, citing an official from the company.
Vinacafe’s General Director Do Van Nam said the company has planned to build a
number of high quality coffee factories, including Vinacafe Dalat, Vinacafe Dak Ha, 331
Coffee Im-Export Co, and Hoa Thang Trade Center in Buon Ma Thuot, and Tien Son
Coffee and Grain Processing Factory in Bac Ninh province.
Nam said Vinacafe raked in $243 million from exporting more than 113,000 tons of
coffee in the first six months of 2008, fulfilling 63% and 425 of yearly plan, respectively.
The company’s $243 million export revenues accounted for 20% of Vietnam’s total
earning from coffee export in Jan-Jun 2008.
Doan Dinh Thiem, chairman of Vinacafe’s management board, said the company may
export around 250,000-300,000 tons of coffee worth $550 million this year, up 20% on
year.
He said that the company’s net profit may reach from VND280 billion to VND300
billion.
Vinacafe now has 42 affiliates, including 9 joint stock companies, and 33 farms.
(Vietnam Agriculture July 21 p6)
Foreign Investment:
Kirby to Open $15-Mln Pre-engineered Steel Mill in Southern Vietnam

215. Kirby Southeast Asia, one of the world’s leading pre-engineered steel makers, said it will
open its new factory in southern Dong Nai province early next month, the Thoi Bao Kinh
Te Viet Nam newspaper reported.
The $15 million facility, located in the Nhon Trach III Industrial Park and designed under
the international standards, will be capable of turning out 50,000 tons a year.
The foreign company is planning to invest $20 million to build the second factory in
northern Vietnam in 2009, raising its total capacity in the country to 100,000 tons a year.
Kirby, an affiliate of Kuwait’s Alghanim Industry Group, is also conducting a survey to
build a hi-tech center in Vietnam to support Kirby’s factories. (Vietnam Economic Times
Jul 22 p3)
Infrastructure:
Vietnam Needs $12.7 Bln to Build Railway Projects in Hanoi, HCMC by 2020
Vietnam will acquire $12.7 billion to carry out railway projects in Hanoi and Ho Chi
Minh City from now to 2020 with foreign investment to account for 77%, the Ministry of
Planning and Investment said.
Of the total figure, $7.3 billion is needed to construct 128 kilometers of railway systems
in Hanoi and $5.4 billion is to build six metro routes with 92 km in length.
The Ministry of Planning and Investment said urban transport projects often require huge
investment and a long time for construction, so they are not attractive to investors. Most
of projects being researched will use ODA loans.
So far, only $4.8 billion in ODA has been pledged, accounting for only 49% of the
required sum of $9.8 billion.
The Ministry of Transport said that research on the five inner railway routes in Hanoi is
underway and four metro routes in Ho Chi Minh City are planned. (VietnamNet Jul 21)
Tourism:
Spain Helps Tourism Planning in Central Vietnam
The Spanish Government has provided EUR150,000 ($239,000) to a project to research
culture, historical sites, tourism and the environment in the central Thua Thien-Hue
province of Vietnam, the Tin Tuc newspaper reported Tuesday.
The project will help develop a detailed plan on tourism in Hue city and nearby regions,
which will help the city mobilize investment for development.

216. “The project will not only provide a tourism development plan for Hue, Vietnam’s
festival city, but also help the two sides exchange experiences,” Head of the Spanish
expert group, Damian Moragues, said.
Deputy Chairman of the municipal People’s Committee Le Phuoc Hoa recently had a
working session with Spanish tourism experts on implementation of the project.
Tourism cooperation is one of three top priorities of Vietnam-Spain cooperation. Since
Vietnam and Spain signed a tourism cooperation agreement at the governmental level in
April 2002 and a common strategy on tourism development cooperation for the 2005-08
period, the number of arrivals from the foreign country to Vietnam has ceaselessly
increased.
Especially, Spain in succession held the highest on-year growth rate in the number of
tourists visiting Vietnam in recent months.
Vietnam welcomed more than 3,400 arrivals from Spain in the first quarter of this year,
up 72.6% on-year. (News July 22 p8, Capital Security July 22 p2, Vietnam Panorama)
Politics & Law:
Vietnam Calls on Cambodia, Thailand to Solve Temple Dispute via Negotiation
Vietnam called on Cambodia and Thailand to resolve their border dispute relating to the
Preah Vihear Temple through peaceful negotiations in the spirit of friendship and
solidarity, Vietnamese spokesman Le Dung said July 21.
The Ministry of Foreign Affairs’ spokesman was cited as affirming Vietnam’s stance on
the issue, saying that the two sides should restrain themselves to avoid making the
situation complicated and try to resolve remaining issues through peaceful negotiations in
the spirit of friendship and solidarity of ASEAN, for the interest of both countries and for
stability and development of the group.
The Cambodian representative to the UN informed the UN Security Council (UNSC)
July 17 in New York about Thai troops intruding on its territory.
Thai soldiers entered Cambodian soil after UNESCO has recently listed the Preah Vihear
Temple as a World Heritage Site belonging to Cambodia, the representative said.
Staff of the Phnom Penh based - U.S., China, France and Vietnam embassies were also
flown by helicopter from the capital to the disputed territory on the border.
The U.S., China and France are permanent members of the UNSC while Vietnam is the
UNSC chairman in July.

217. A meeting between the two defense ministers of Cambodia and Thailand, held July 21 to
discuss the latest flare-up over competing claims to land around the temple, failed to
reach any agreement. (The People Jul 22 p8, Website of CPV Jul 21, foreign media)
Deputy PM Visits Laos to Boost Investment, Trade Ties
Deputy Prime Minister Nguyen Sinh Hung began July 21 his working visit to Laos, being
accompanied by representatives from ministries of Planning and Investment, Industry and
Trade, Agriculture and Rural Development, Natural Resources and Environment,
Transport, and some businesses, the government said on its website.
The Vietnamese delegation is scheduled to visit some southern provinces of Laos and
attend the 30th mid-meeting of the two sides’ cooperative subcommittees.
Two-way trade value between Vietnam and Laos reached $312 million in 2007, up 20%
on year.
In the first five months of this year, the figure hit $192 million and was estimated at $240
million in the first half, up 58% against the same period of 2007.
Vietnam currently has 109 investment projects licensed in Laos, with the total capital of
$1.1 billion.
Vietnamese Prime Minister Nguyen Tan Dung has recently approved a plan to build
Vietnam-Laos border zone by 2020 into an area for economic exchange between the
north and the west of the country.
The targeted region will include 10 provinces of Dien Bien and Son La in the north,
Thanh Hoa, Nghe An, Ha Tinh, Quang Binh and Quang Tri, Thua Thien-Hue and Quang
Nam in the central Kon Tum in the Central Highlands, contributing to further increase the
two-way trade, which is expected to reach $1 billion in 2010 and $5 billion in 2020.
(Website of government Jul 21, Vietnam Economic Times Jul 22 p4, The People p8)
Labor & Education:
Vietnam Wins Big at Int’l Math & Biology Olympiads
Vietnamese students reaped fruitful results at the 2008 International Math and Biology
Olympiads by taking two gold medals, two silvers, and five bronzes, the Thanh Nien
newspaper reported.
Notably, six Vietnamese students attending the 49th International Math Olympiad (IMO)
in Spain from July 10-21 won prizes, including two gold medals, two silvers and two
bronzes.
With the result, Vietnam ranked 12th among 97 participants at the IMO.

218. While at the 19th International Biology Olympiad held in India from July 13-20, Vietnam
snatched three bronze medals and a certificate of merit.
This year, Vietnam sent around 30 students to International Olympiads.
Vietnamese students always won prizes and they were listed as one of the strongest teams
in thirty-three years. Educational experts from Singapore and Malaysia sometimes come
to Vietnam to learn about math training courses and methods. (Young People July 22 p1,
Thanh Nien Daily July 22 p2, Pioneer July 22 p1)
Vietnam Expects to Provide Vocational Training for 1,800 Disabled People in H2
The Vietnam Sponsoring Association for Orphan Children and Disabled People hoped
that it will provide vocational training for 1,800 disabled people by the end of this year,
Vietnam News Agency said.
Of those, 70% of trained people will get jobs after they finish the courses, the agency
expected.
The association will present 2,000 scholarships to disabled and orphaned students, donate
1,000 wheelchairs to disabled people, and offer cataract surgeries for 2,000 blind people
in two or three provinces and cities.
In the first six months of this year, it provided vocational training for 1,838 disabled
people, cataract surgeries for 2,000 blind people, wheelchairs for 5,230 invalids, 974
bikes for students and free-of-charge medicine check-ups and treatment for 12,600
handicapped people and orphans. (News July 22 p2, Liberation Saigon July 22 p1, VNA)
Health & Environment:
Vietnam Imports $33 Mln Cardiovascular Medicines in H1
Vietnam reportedly spent $33 million importing cardiovascular medicines in the first half
of this year, making up 10% of the country’s total drug import spending during the time,
said the General Customs Department.
The drugs’ import prices saw stronger fluctuation than other imports, said the department.
According to a survey on 700 goods lots of the cardiovascular drugs with the majority
from Pakistan, France and Hungary, 5% reported price increases.
Patients’ long-term treatment of these special medicines and the insufficient domestic
supply were mainly blamed for the hikes, said the department.
This year, Vietnam is forecast to import $815 million worth of medicines this year, up
from $700 million last year. (Vietnam Economic Times Jul 22 p2)

219. Hand-foot-mouth Disease Rising Sharply in Vietnam
Vietnam identified up to 5,481 people suffering from foot-hand-mouth disease in the first
half of this year, of whom, 21 died, said Nguyen Huy Nga, Head of the Health Provision
Department.
The figure nearly doubled the whole number of sufferers in 2007, said Nga without
giving out comparative figures.
Ho Chi Minh City was the country’s hardest hit place with 1,701 patients and nine
fatalities.
The disease, which is caused by Coxsakie and Enterovirus-71 agents, is a common
childhood illness featuring mouth sores, fever and vesicles.
Most of fatalities in the country were caused by the deadly virus EV71, said the
department.
During the first half, Vietnam also reported 22,000 dengue fever patients, down 30% on-
year, said Nga. (Young People Jul 22 p2)
Severe Acute Diarrhea Striking Vietnam’s Northern Province
As many as 197 people in Nam Dinh province in northern Vietnam were hospitalized due
to acute diarrhea infection from June 17 to July 10, said the provincial health service.
Of them, 80 were tested positive to V.cholera virus and no fatality has been reported so
far.
Hung Nghia district topped the list with 154 patients, including 50 cholera sufferers, said
the service.
The disease, which was basically controlled in Vietnam in early June, has reemerged in
some northern localities, including Hanoi, Ha Tay, Ha Nam and Bac Ninh, said the
Ministry of Health (MoH).
In the first half of this year, Vietnam detected 3,700 people contracting acute diarrhea,
including 584 cholera patients.
In late April – the peak of the epidemic in Vietnam, severe acute diarrhea spread to 20
provinces and cities across the country, including Hanoi, Haiphong, Hai Duong, Thanh
Hoa, Quang Binh, and Ho Chi Minh City. (The People Jul 22 p7)
Whirlwinds Hit Central Highland Province, Causing VND1 Bln Loss

220. Whirlwinds July 21 stroke central highlands Gia Lai province, destroying five houses,
damaging 30 others and causing an estimated loss of VND1 billion, the Sai Gon Giai
Phong newspaper said Tuesday.
This is the fourth the natural calamity has hit the province since the beginning of this
year, the paper said.
Earlier, strong whirlwind July 18 swept over five communes of Thang Binh district,
central Quang Nam province, killed one person, wounded two others and damaged 310
houses.
Hundreds people have been left homeless after the disaster, according to the initial
accounting.
Some of old local residents said they had never seen such a strong whirlwind over the
past tens of years.
The National Center for Hydrometeorological Forecasting predicted that between six and
eight storms will strike Vietnam with a complicated rainy season this year.
Vietnam suffered losses of over VND814 billion ($49.3 million) caused by natural
disasters in the first half of this year, up VND720 billion ($43.6 million) on year,
according to the General Statistics Office.
The ASEAN country is forecast to face a stormy year in 2008. (Saigon Liberation July 22
p11, Vietpan database)
Culture & Society:
Vietnam Makes Remarkable Progress in Implementing MDGs – WHO, UNICEF
Vietnam and Myanmar have made remarkable progress in carrying out the UN
Millennium Development Goals, a report July 17 released by the World Health
Organization (WHO) and the United Nations Children's Fund (UNICEF) said.
The report indicates that 68% of Myanmar population has gained access to clean water,
meanwhile the figure in Vietnam was 47% since 1990.
Currently, two billion people in the world haven't been ensured adequate hygiene
conditions yet, the report added.
The situation may hinder the UN MDG to reduce 700 million people who do not have
access to basic hygiene system by 2015, the Thoi Bao Kinh Te newspaper said.
The countries that have not achieved progress in conducting the MDG in providing
people with basic hygiene services are mainly in Africa and South Asian. (Vietnam
Economic Times July 21 p4)

221. UNDP Finances $5 Mln to Improve Vietnamese Women’s Leadership
The Vietnam Foreign Affairs Ministry and the UN Children’s Fund (UNICEF) jointly
signed July 21 a $5.05 million project to help improve Vietnamese women’s leadership
role, local media said.
The project will addresse challenges facing women in the state sector and will make re
recommendations to the Government on improving women’s role and capacity in the
context of the country’s integration into the world economy.
Christophe Bahuet, deputy country director of the UNDP Vietnam, said “training,
recruiting and retaining highly qualified civil servants is significant to the efficient
management of state affairs”. This will be a key challenge facing Vietnam in the years to
come, he said.
The project will also help develop intelligent networks through providing opportunities
for women to attend and organize international conferences and seminars on gender
equality in Vietnam and other countries.
Speaking at the signing in Hanoi, the Vietnam Women’s Union Chair Nguyen Thi Thanh
Hoa said she believed the project would help improve Vietnamese women leaders’
capacity and effectively strengthen cooperation between Vietnam and the UNDP.
(Vietnam News Jul 22 p3, The People p8, Labor p2, Vietnam Net Jul 21)
Traffic Accidents to Cost Vietnam $5.5 Mln by 2020
Vietnam will suffer losses of $5.5 million due to traffic accidents by 2020 unless it takes
concrete measures to address the issue, said experts in the transport sector at a meeting
July 21 held in Hanoi.
The meeting discussed various solutions to the traffic problems and alarming rise in
accidents, the Vietnam News Agency said.
Vietnam will have 52.6 million vehicles by 2020 and accidents will increase by 8%-10%
a year, experts predicted.
Takagi Michimasa, chief advisor of the national road traffic safety master plant's study
said that Vietnam should improve road safety to build the image of kind-hearted traffic
policemen to encourage ordinary people to obey road safety and traffic rules.
A joint study with the National Traffic Safety Committee of Vietnam (NTSC) and the
Japan International Cooperation Agency (JICA) recently found that policemen need to be
effective forces to ensure traffic safety rules and management.

222. Bui Huynh Long, chief of the NTSC Standing Office thought that task might prove
difficult as policemen had earned a bad reputation for taking bribes from traffic violators.
Drunk drivers, the poor quality of road as well as poor awareness on traffic rules had
come to typify Vietnam and resulted in the high number of traffic accidents, Long added.
Vietnam reports an average of 12,000 deaths, 30,000 injuries by traffic accidents a year
with a total loss of nearly $900 million. (Vietnam News July 22 p3)
Stock Market:
EVN to Issue VND4 Tln Corporate Bonds in Q3
The Electricity Group of Vietnam (EVN) plans to issue VND4 trillion ($242.4 million)
worth of corporate bonds in the third quarter of 2008 to ensure sufficient capital for
power projects, the local Economy & Urban Area newspaper said Tuesday.
EVN will issue the five-year bonds in the two tranches, with VND2 trillion in each.
The EVN will decide the bond coupon later, ensuring it higher than the coupon of
government bonds, bank deposit interest rate and lower than the lending rate.
Securities companies of Ha Thanh, Vina, An Binh, and Citibank will jointly underwrite
the bond issue of EVN.
In 2008, the power group is expected to issue VND10 trillion ($606.1 million) of bonds
with maturity of 5-7 years, which will be allocated to less than 50 investors in each
tranche.
EVN is also mulling over the plan to issue bonds in U.S. dollar to fund its projects with
demand for foreign currency.
Recently, the central bank has also approved the EVN to set up finance joint stock firm to
help the power industry better mobilize fund for the country's energy projects.
EVN needs around VND11.86 trillion from now to the end of this year to develop power
generating and transmission line projects. The figure is VND325 trillion in the 2006-10
period. (Economy & Urban Area Jul 22 p5, Vietnam Panorama)
HPG Fulfils 2008 Profit Target in H1
The Hoa Phat Group (HPG) announced that it netted profit of VND848 billion ($51.4
million) in the first half of this year, surpassing 14.5% over the year's profit target of
VND740 billion ($44.8 million).
The group obtained nearly VND5 trillion ($303 million) between January and June,
completing 65% of its plan for the whole year of 2008.

223. Hoa Phat said its all industries have maintained its good growth, particularly steel, steel
pipe, construction machines and decorations.
HPG is now one of five top steel producers in Vietnam. It signed a deal with TKV
Mineral Corp in a bid to research and exploit materials for its steel complex, which is
slated for operation in the second quarter of next year. The plant is expected to contribute
VND6.5 trillion into HPG's annual revenues.
HPG expects net profit of VND1 trillion ($62.5 million) on revenues of VND10 trillion
($625 million) by 2010 and become one of the leading industrial groups with revenues of
$1 billion by 2012. (Vietnam Economic Times Jul 21 p9, Labor Jul 21)
Jul 22: VN-Index Records Four-month Biggest Fall on Inflation Specter
Vietnam's stock market index closed down 12.94 points, or 2.75%, at 457.88,
representing the biggest fall in a single day over the past four months, as local players
continued selling on fears of sky-rocketing inflation due to the government’s fuel price
hike July 21.
“Investors placed massive sell orders today after local media said inflation rate will
surpass the 25% rise as previously forecast and may hit 30% by the end of this year,” a
trader with VISecurities said.
“Market sentiment becomes very weak with concerns that the government will face
difficulties in taming inflation after it decided to raise gasoline prices to ease burden of
huge state subsidies for oil and gas sector,” he said.
“Prices of shares will continue to go down this week,” the trader said, tipping that the key
index will plunge to 400 soon.
The lowest index was seen at 366.02 on June 20, just more than one month ago.
Low trading volume was recorded today.
Market volume totaled only 1.6 million shares valued at VND77.8 Tuesday, the smallest
volume and value over the past two months.
SGT, the most active stock today, fell 2.7% at VND31,900 on 230,070 shares, including
219,630 shares bought by foreign investors.
DPM, the second most active stock, lost 2.6% at VND56,000 on 169,680 shares,
including 150,000 shares bought by foreigners.
FPT plummeted 2.3% to close at VND64,500 on 165,620 shares, of which foreigners
bought 159,280 shares and sold 35,390 shares.

224. KDC was adjusted down 20.9% at VND64,500 on ex-right date.
No stocks closed higher.
Dong Do Marine Co. (DDM) made debut today at VND16,800 on a trade of 133,500
shares.
All four fund certificates closed lower. (HOSE July 22)
Vietnam News
July 21, 2008
Inter-bank Forex Rate: $1=VND16,500
Banking & Finance:
Vietnam’s Monetary Market Steady Last Week
Vietnam’s monetary market remained stable last week as supply and demand of foreign
currencies became balanced and several banks lowered lending interest rates, Vietnam
News Agency said Monday.
The State Bank of Vietnam said that supply of foreign currencies was improved. Export
companies started to sell foreign currencies to commercial banks. The central bank
continued to provide dollars for commercial banks to meet demand for essential imports
of the economy, but banks’ buying volume fell.
Foreign exchange market showed positive signals. Most of commercial banks quoted
exchange rates at below the ceiling rate and traded dollars at permitted band. The rate of
VND/USD in free market was falling to 16,860-16,890.
Several commercial banks reduced their lending interest rates for the dong and foreign
currencies. However, the lending interest rates for VND are still popular at 21% per
annum
As reported by 39 credit organizations, lending interest rates of most of the terms in the
interbank market tend to fall from mid-July except for terms of one and two weeks. The
overnight rate was at 20.15% per annum, for one week at 20.53%, two weeks at 21%,
three weeks at 20.67% and one month at 17.5.
Vietnamese banks were offering deposit interest rates for VND at between 17% and
19.1% per annum for three to 12 months, of which the state-owned banks announced the
rates at 17%-18%, while joint stock lenders at 18.7%-19.1%.
The central bank continued to buy VND4 trillion-VND12 trillion worth of valuable
papers with maturity of seven days and interest rate of 15% a day and continued to
refinance commercial banks. (News Jul 21 p3)

225. SeABank to Sell 15% Stake to Societe Generale
The State Bank of Vietnam (SBV)'s governor has approved the Southeast Asia
Commercial Joint Stock Bank (SeABank) to sell a 15% stake to its French strategic
partner Societe Generale SA, the state-run media said.
Societe Generale is expected to help SeABank improve its risk management, technology,
international payment services, develop its human resources and boost its consumer
services.
The deal is expected to be signed shortly. However, the value of the 15% stake has been
not disclosed.
The price of SeABank's shares on the over-the-counter (OTC) market ranged from
VND18,000 to VND20,000 each.
A 15% stake is currently the maximum amount that a foreign strategic investor is allowed
to hold in a domestic financial institution.
Currently, big foreign lenders are holding a 15% stake in Vietnamese partners, such as
HSBC in Techcombank, Standard Chartered Plc in ACB, Sumitomo Mitsui Bank in
Eximbank, and Maybank in ABBank. Some are seeking to raise ownership to 20%.
In the first half, SeABank posted pretax profit of VND258 billion ($16.1 million), up
30% on year. The Hanoi-based bank had VND19.6 trillion total assets, VND13.9 trillion
deposits, and VND11.2 trillion outstanding loans.
Its registered capital is now VND3 trillion which will be raised to VND5 trillion within
this year. (Labor Jul 21, Vietnam News Agency Jul 20, Saigon Marketing Jul 21)
First Vietnamese Joint Stock Bank Cut Lending Rates
The Vietnam Export and Import Bank (Eximbank) has taken lead among local joint stock
commercial banks to reduce interest rates on Vietnamese dong-based loans for all
customers, the bank said in its latest statement.
The HCM City-based lender slashed its lending interest rates by 1 percentage point to
20% per annum while maintaining its current VND deposit interest rates as of July 19.
It is the highest interest rate cut on dong loans since the State Bank of Vietnam (SBV)
has called on domestic banks to help ease difficulties for businesses and help curb
inflation and stabilize the economy.
Eximbank has been the fourth bank to lower lending interest rates so far. Three others are
the state-owned lenders – BIDV, Agribank, and Vietcombank.

226. Vietcombank also decided to cut its lending interest rates by 1 percentage point to 20%
per annum on the dong loans. However, the 1-percentage-point reduction was only
applied on certain customers.
The SBV, or Vietnam's central bank, has said it aims to restrict loan growth to 30% this
year as part of measures to contain inflation, after a rapid 54% surge in loans in 2007.
(ATPVietnam Jul 20)
ACB and Vietcombank Rated Vietnam’s Best Banks
Two different Asian leading financial magazines have recognized two Vietnamese joint
stock banks, the Asia Commercial Bank (ACB) and the Bank for Foreign Trade of
Vietnam (Vietcombank), as the best domestic banks.
The “Best Bank in Vietnam” is given to ACB by Euromoney and to Vietcombank by
Asiamoney.
This is the third times ACB has won such award, after 1997 and 2006, for its sustainable
growth and prestige.
ACB is operating in securities, asset management and financial leasing, besides banking
sector. It attained net profit of VND1.76 trillion, or $110 million, in 2007, tripling the
figure of 2006.
In the first quarter this year, ACB made profit of VND510 billion.
Meanwhile, Asiamoney has for first time selected Vietnam in its list, beside Australia,
China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, Pakistan,
Philippines, Singapore, Taiwan and Thailand, in which Vietcombank has become the best
local bank. (Pioneer Jul 21 p5, Vietnam Economic Times Jul 21 p4)
Official VND/USD Rate Goes Down
The State Bank of Vietnam (SBV) today [July 21] fixed the official exchange rate
between dong and U.S. dollar at VND16,500/$1, compared with VND16,501 late last
week and VND16,513 on July 11.
With daily USD/VND trading band allowed at plus or minus 2%, the state-owned
Vietcombank, the leading forex bank in Vietnam, offered to buy dollars at VND16,735
and sell at VND16,765 on the same day.
Early this morning, Vietnam Export Import Bank (Eximbank) announced a selling price
VND16,700/$1, down VND65 from late last week.

227. For fear of an exchange rate slipping further, many individuals and export businesses sold
their dollars. This abundant supply causing the exchange rate to fall, said a Hanoi-based
bank manager.
Banks are widening the margin between buying and selling prices.
Experts believed that a reduction of the exchange rate would reduce costs of imported
raw materials for production.
The exchange rate on the open market also decreased, nearly equaling the official rate
with buying and selling rates at VND16,750-VND16,800. (www.sbv.gov.vn Jul 21)
Processing Firms Allowed to Extend Time for Income Tax Payment
Vietnam’s Ministry of Finance has issued a new dispatch allowing the processing
companies to extend time for paying corporate income tax for the third and fourth quarter
of 2008, the Thoi Bao Kinh Te said.
The companies subjected to the dispatch are the processors of electronic parts, agro-
forestry-fishery products, garment and footwear.
These companies are allowed to extend income tax payment by six months since the
deadline.
Vietnam is targeting to narrow the trade gap after trade deficit reached $14.77 billion in
the first half. (Vietnam Economic Times Jul 21 p3)
Trade:
Vietnam Trying to Lower Monthly Trade Deficit to Under $1Bln in H2
The Vietnamese Ministry of Industry and Trade will keep monthly trade deficit under $1
billion in the second half of this year in order to realize the target of reducing the year’s
import value to $80.2 billion in line with the Government’s requirement, $4.8 billion
lower than initially planned, said Deputy Minister of Industry and Trade Bui Xuan Khu.
If the goal is realized, Vietnam’s trade deficit this year is expected to stand at $20 billion,
equaling to around 30% of the export revenue.
Measures are being taken to stabilize the market and ensure the demand-supply balance
of essential goods, said Khu adding that the ministry has also paid special attention to
improving the quality of the work on price forecasting and warnings.
The ministry has also accelerated the inspection of the quality of import goods, and used
technical barriers to narrow the trade deficit.

228. Additionally, the ministry has outlined a roadmap to implement compulsory energy-
saving labels on household commodities from January 2010.
Together with efforts to reduce imports, Vietnam has also targeted to obtain an on-year
export growth of 26% to $61.2 billion this year.
The country is estimated to earn $6 billion from crude oil export, $5.3 billion from
garments and textiles, $2.2 billion from seafood and footwear, and $1.6 billion from
woodwork in the second half of this year, said the MoIT.
To facilitate exports, the government of Vietnam has allowed 100% foreign-invested
enterprises to build centers of providing materials to raise the competitiveness for
exports.
The ministry will also set up an interdisciplinary group gathering customs, banking and
financial officials to promptly address difficulties for import-export production
enterprises in the rest months of the year, said Khu.
In the first half of this year, Vietnam reaped $29.69 billion from goods shipment in the
first half of this year, an on-year increase of 31.8%, and spent $44.47 billion on imports,
up 60.3%, said the General Statistics Office (GSO). (News Jul 21 p4, VNA Jul 19, Labor
& Liberation Saigon Jul 19 p3)
Peru Starts Anti-dumping Probe into Vietnam Shoes
Peru has started an anti-dumping investigation into shoes imported from Vietnam and
China under a proposal by its corporation of leather, shoe and similar products, Vietnam
News Agency reported.
According to the decision announced July 18 by Peru’s Competition and Intellectual
Property Protection Institute, the probe will be conducted into canvas shoes with sole
made from different materials.
Shoe enterprises accused of dumping their products will have six months since the
decision was made to provide proof and arguments to protest against the decision.
In the first half this year, Vietnam shipped abroad $2.27 billion from shoe products, a rise
of 16.9% on-year.
The Southeast Asian country’s footwear industry has an annual average growth rate of
16% and its export revenue is expected to reach $4.5 billion this year and $6.2 billion by
2010. (News Jul 21 p16)
Vietnam Applies Highest Gasoline Price Hike to VND19,000 per A92 Liter

229. The Vietnamese Ministries of Finance, Industry and Trade, and Information and
Telecommunication have sit together to agree to raise retail price of A92 gasoline to
VND19,000 ($1.15)/liter, up VND4,500 ($0.27) or 31.05% against the former price of
VND14,500 ($0.87)/liter, state media reported July 21.
The gasoline price hike, the highest level in Vietnam to date, takes effect 10:00 a.m.
today [July 21], said the Ministry of Finance.
The increase is in wake of the global crude oil price fluctuations that doubles against the
same period last year and averages at $139 per barrel in 17 early days of July this year,
and has a trend to continuously go up in the coming time, said Minister of Finance, Vu
Van Ninh.
Together with the gasoline price soar, a liter of diesel 0.05S is sold at VND15,950
($0.96), up from VND13,950 ($0.84); paraffin oil at VND20,000 ($1.21), up from
VND13,900 ($0.84); and mazut at VND13,000 ($0.78), up from VND9,500 ($0.57).
Vietnam would lose VND44,772 billion ($2.71 billion) in the second half of this year of
the country did not raise gasoline price in the circumstance of global oil price hitting
$139 per barrel, brining total loss for this year to VND59,519 billion ($3.6 billion), the
Ministry of Finance said.
If the global oil price reaches between $145 and $150 per barrel, Vietnam’s loss is
estimated at VND67 trillion-VND72 trillion ($4.06 billion-4.36 billion) this year if it did
not apply gasoline price hike, the ministry added.
Vietnam’s latest gasoline price soar was applied February 25 this year, raising the retail
price of A92 gasoline to VND14,500($0.87)/liter from VND13,000 ($0.78)/liter, and of
A95 gasoline to VND14,800 ($0.89) from VND13,300 ($0.8)/liter.
The Vietnamese government has so far spent VND11 trillion ($687.5 million)
compensating for domestic petroleum importers in the circumstance of ongoing global oil
price soar in the first six months of this year. (Vnexpress Jul 21, VietNamNet Jul 21,
New Hanoi Online Jul 21, Vietpan)
Enterprises Re-export $500 Mln of Ingots & Steel in H1
Vietnamese enterprises reportedly re-exported up to $500 million worth of ingots and
steel in the first half this year, the Tuoi Tre newspaper reported, citing the Ministry of
Industry and Trade.
Meanwhile, the member of units under the Vietnam Steel Association (VSA) re-exported
more than 70,000 tons of ingots and construction steel valued at over $77 million in May
and June, Pham Chi Cuong, VSA chairman said.

230. The steel industry will face huge shortage of materials for production in the fourth quarter
if the massive re-exports continue, Cuong said, adding the trade deficit of the items will
sharply increase as steel ingot is being offered at $1,300/ton. (Youth Online Jul 21)
Industry:
Petrolimex Nodded to Build $4.5 Bln Oil Refinery in Central Vietnam
Vietnam National Petroleum Corp (Petrolimex) has recently received approval from
central Khanh Hoa province to build a $4.5-billion oil refinery in the locality, said CEO
Vu Ngoc Hai.
The plant will have a capacity of refining 10 million tons of crude oil per annum, the
Labor newspaper quoted Hai as saying.
Petrolimex initially planned to locate the refinery in Ninh Phuoc commune, Ninh Hoa
district but now is seeking the provincial approval for a new location more suitable for
the project’s scale, the official said.
The corporation has chosen Sinopec of China as a partner to carry out the project and the
two sides have discussed setup of a joint venture as well as stake equity to be owned by
each party.
They intend to import crude oil from the Middle East or Singapore to feed the plant.
Petrolimex now holds 60% of Vietnam’s petroleum trading market share.
The corporation is cooperating with PB Tankers Ltd of Singapore ands Petrolimex
Insurance Joint Stock Company to build Vietnam’s first petroleum bonded warehouse in
central Khanh Hoa province with a storage capacity of one million cubic meters and a
total investment of $170 million. (Labor Jul 19 p3, Vietpan)
Vietnam Southern Province Licenses $3.77 Bln Petrochemical Complex
Southern Ba Ria-Vung Tau province has recently granted an investment license to a
Vietnam-Thailand joint venture to build a petrochemical complex with a total investment
of $3.77 billion, the Investment newspaper reported, citing the provincial documents.
The joint venture so-called Long Son Petrochemical Limited Company was set up by
state-owned oil monopoly PetroVietnam group, the Vietnam National Chemical
Corporation (Vinachem), and two subsidiaries of Thai Siam Cement Group (SCG), Vina
SCG Chemicals Co Ltd and Thai Plastic and Chemicals Public Co Ltd.
The complex will be built on a 400-hectare area in Long Son petroleum industrial park in
Long Son commune, Vung Tau city, adjacent to Vietnam’s planned third oil refinery
Long Son.

231. Kan Trakulhoon, president and CEO of SCG, said that his subsidiaries hold a 71% stake
in the joint venture while Vietnamese firms own the remainder.
The complex will include an international-scale facility producing olefins with an annual
designed capacity of 1 65 million tons; one producing polyolefins, 145 million tons; one
processing Chlor-alkali, 280,000 tons; and one processing raw materials for Polyvinyl
Chloride (PVC) plastics, 330,000 tons of EDC and 400,000 tons of VCM.
It will also contain necessary infrastructure such as a port, storage facilities and utilities.
Construction and operation of the complex will be divided into two phases, with the
PVC-related plants likely to begin operating in 2012 and the other plants in 2013.
The petrochemical complex together with the Long Son oil refinery costing at least $6
billion is under the $10 billion Long Son oil refining-petrochemical project.
Without major oil refineries, Vietnam now has to import almost of petroleum products.
The country spent $5.92 billion importing 6.81 million metric tons of petroleum products
in the first six months of this year, up 68.9% on year and 4.4%, respectively.
The first oil refinery Dung Quat, which is under construction in central Quang Ngai
province, is expected to start operation in next February to process 6.5 million tons of
crude oil a year and meet more than 33% of the domestic demand. (Investment Jul 21 p1)
PetroVietnam, Petrolimex Ink Comprehensive Cooperation Deal
The state-owned oil monopoly PetroVietnam group and the state-run Vietnam National
Petroleum Corp. (Petrolimex) July 18 clinched a deal to boost comprehensive
cooperation in the future, the Labor newspaper reported.
This is considered an active move by two giants of Vietnam’s oil and gas sector to buy
and sell all expected products of the country’s first oil refinery Dung Quat that is under
construction in central Quang Ngai province and is hoped for operation in next February.
They will also boost ties in their major fields of investing in petrochemical projects;
trading and consuming petrol and petrochemical products; and investing in petroleum and
liquefied petroleum gas (LPG) tankers.
The $2.5-billion oil refinery, with expected products of propylene, liquefied petroleum
gas (LPG), lead-free petrol, diesel and fuel oil, is estimated refine 33% of the country’s
entire demand for petrol and oil once fully operational in February 2009.
PetroVietnam has recently sought permission from the prime minister to cooperate with
foreign partners to increase annual capacity of the plant to 16.5 million tons from earlier
designed 6.5 million tons. (Labor Jul 19 p3, Vietpan)

232. Banks Trust Less in Power Projects by EVN’s Joint Stock Firms
Slow disbursement in recent months for power projects invested by joint stock companies
under state-owned Electricity of Vietnam Group (EVN) is attributed to low trusts from
banks, an official of the State Bank of Vietnam told the Investment newspaper.
“Banks do not lack money for power projects, the problem is the confidence of
borrowers,” he attributed.
Banks said that if EVN were still investors of these urgent power projects, loan
borrowing will be easy as EVN, a special state-owned company, is appraised and
guaranteed by the Ministry of Finance and big banks.
However, when EVN sets up joint stock companies to undertake these projects, EVN will
no longer be responsible for loans prioritized by the government but the newly-
established firms that have modest confidence to commercial banks, hindering capital
disbursement, banks elaborated.
Banks’ desire to hold more negotiation with investors about early signed loans for power
projects due to recent soar in credit interest rate is also blamed for slow disbursement and
capital shortfall by the power sector.
To deal with the situation, Deputy Prime Minister Hoang Trung Hai has recently
demanded EVN to continue acting as investor of hydropower projects under the national
electricity development plan by 2015 and span to 2025, or Plan VI, approved by the
government. Hai rejected commissioning investor responsibility over the projects from
EVN to joint stock companies.
EVN has also negotiated with commercial banks, and the two sides have agreed to double
interest rates for power projects.
In the first half of this year, EVN carried out power projects worth VND16,298 billion
($987.75 million), accounting for only 73.2% of the planned target due to capital lack,
said EVN general director Pham Le Thanh.
EVN needs around VND11.86 trillion ($178.78 million) from now to this year’s end to
develop power generating and transmission line projects. (Investment Jul 18 p4, Vietpan)
Vietnam to Mine Largest Iron Ore Deposits Next Month
The Thach Khe Steel Joint Stock Company is expected to start mining Thach Khe iron
ore deposits in central Ha Tinh province this August, the Nhan Dan newspaper online
reported.
The newspaper said Vietnamese authorities are carrying out final procedures to license
the project.

233. In addition, the company is preparing to develop a steel mill with an annual capacity of 2
million tons in the first phase in the province’s Vung Ang Economic Zone. The
construction of the factory is set to start in early 2009 and operate in 2011.
The mill’s capacity will be raised to four million tons a year in the second phase.
The steel mill is a national key project. The prime minister has allowed the Thach Khe
Steel JSC to assign China’s Chongqing Metallurgy Technique Ltd. as the consultant for
conducing feasibility study for the project. (The People Online Jul 20)
Vietnam Central Province OKs VND1 Tln Steel Mill
Central Quang Ngai province authorities July 16 gave a nod to the Hoang Anh Quang
Ngai Minerals Joint Stock Company to invest VND1 trillion ($60.6 million) in a steel
ingot refining factory, state media reported.
The plant, set to have a capacity of 500 tons a day, will cover 1.4 hectares at local Pho
Phong Industrial Park (IP) in Duc Pho district.
The facility, the first project invested in the local IP, is expected to provide jobs for about
300 laborers. (Vietnam Agriculture Jul 18 p2, Young People Jul 18 p2)
Ha Long Shipbuilder Hands over 53,000-ton Ship for U.K. Firm
Ha Long Ship Building Co, an affiliate of the Vinashin Business Group, July 18 delivered
a 53,000-ton ship to the U.K.’s Graig Company, Vietnam News Agency reported.
The cargo freighter, named White Diamond-HL04, is the third in a series of 15 large
ships that Ha Long will build for the British firm.
Measured at 190 meters long, 32.26 meters wide and 17.5 meters high, the vessel can
operate at 14 nautical miles per hour. It has five holds and has been equipped with four
36-tonne cranes.
The ship, designed by Denmark’s Care Bro Company, meets the standards for the U.S.’s
sea environmental protection and standards required for ships to pass Suez and Panama
Canals.
Ha Long Shipbuilding Company has built and delivered a number of large ships and a
series of new products including 12,500-tonne freighters and 1,800 TEU container ships.
The company has become Vietnam’s large shipbuilder for export.
The firm handed over a 12,500-ton cargo ship to the Vietnam Shipping Lines Corp
(Vinalines) and an 8,700-ton ship to Japan’s Kanematsu Group.

234. Ha Long has set a goal to deliver at least five 53,000-ton ships this year with a total
industrial production value at VND2.4 trillion ($150 million) and revenue of VND2.3
trillion ($143 million). (Vietnam News Agency Jul 18, Transport Jul 21 p2)
Agriculture:
Vietnam to Impose Export Tax on Cashew Nuts from this Sep
Vietnamese cashew nuts exported by the Vietnam Cashew Nut Association (Vinacas)’s
members will be imposed tax from this September, the Vietnam Trade Information
Center said on its Web site.
The $1 tax on a ton of cashew nut export will be collected by the General Custom
Department and then sent to the Vinacas’s fund, which will be used for establishment of
the Global Cashew Alliance (GCA), and trade promotion at both foreign and domestic
markets.
In April this year, Prime Minister Nguyen Tan Dung agreed to deduct $350,000 from
stage budget to the establishment of the GCA, which was jointly initiated by the Vinacas,
the Cashew Export Promotion Council of India (CEPCI), and Brazil Cashew Association
(SINDICAJU).
The three organs are expected to sign legal document on the establishment late this year.
Vietnam exports around 150,000 tons of cashew nuts annually, with majority by
Vinacas’s members. (Vinanet July 21)
Paper Association Asks Permission to Adjust Paper Prices
The Vietnam Pulp and Paper Association (VPPA) has suggested raising prices of paper,
but promising to keep domestic paper prices 10% lower than imports’, the Vietstock
reported.
The association explained that prices of imported paper are now much higher than locally
made paper, while its members fail to meet demand.
The VPPA also proposed to slash import tax on paper from ASEAN countries to zero
from current 5%, and reduce value-added tax on pulp and some kinds of paper from 10%
to 5%, and on printing paper to 0%.
The Vietnam Pulp and Paper Association, the Vietnam General Paper Corporation, and
the Tan Mai Paper JSC in a meeting discussing ways to ensure sufficient paper for
domestic market in Hanoi July 16 put the proposal forward.
According to the VPPA’s proposal, the Vietnam Paper Corporation and Tan Mai Paper
JSC promised to boost capacity in order to help the domestic market avoid paper scarcity.

235. The Vietnam Paper Corporation and Tan Mai Paper JSC are the two biggest producers of
printing and writing paper in Vietnam, but meeting only 60% of domestic demand.
(vietstock July 20)
Vietnam Agri Ministry Put Forwards Measures to Help Animal Husbandry Sector
The Ministry of Agriculture and Rural Development (MARD) has submitted proposals to
the prime minister on measures to help local animal husbandry sector get rid of
difficulties and then boost development, the state-run Nhan Dan (The People) newspaper
said.
The ministry has proposed that materials and animal feed should be listed to the List of
imported necessities. The import tariff for materials for animal feed is proposed to be
reduced to 0%.
The customs sector is requested to simplify administrative procedures upon customs
clearance and seaports should work out measures to increase handling capacity to quickly
unload products that are materials for production of animal feed.
The animal husbandry sector has faced difficulties in the early months of 2008 due to
high increase in feed prices.
The ministry said the sector posted average growth at only 0.03% in the first half of this
year, failing to meet set target at 5%.
MARD said that prices of feeds rocketed 20%-50%, which forced around 40 domestic
animal feed processing plants to close in the first six months of 2008. (The People July
18, Vinanet July 19)
Lam Dong Needs $165 Mln for Vegetable, Flower Export Development
Central highlands Lam Dong province, the vegetable and flower bowl in Vietnam, is
estimated to need VND2.723 trillion ($165 million) to boost exports from now to 2010,
the Saigon Liberation reported.
Up to 98% of the sum will be sourced from local companies, the newspaper said.
Some VND54 billion will be from the province’s budget, which will be used for
infrastructure like building high-tech agricultural zone.
Form now to 2010, Lam Dong will keep its vegetable and flower area at 30,000 hectares,
with output of one million tons yearly. (Saigon Liberation July 21 p2)

236. Business:
Work on ASEAN’s Biggest Software Park Starts in Vietnam
Construction on $1.2 billion Software Park, the biggest of this kind in Vietnam as well as
ASEAN began in Thu Thiem New Urban Area July 19, the Lao Dong newspaper
reported Monday.
Taiwanese Teco Group and Saigon Telecommunication and Technologies Corp
(SaigonTel) will join hands in the project construction.
To cover an area of 16 hectares, the park will be home to high-tech and software bases,
trade centers and residential buildings. It also has a training center to develop human
resources and provide a skilled workforce to tenants.
“Once operational 2016, the Thu Thiem Software Park will contribute to the process of
transforming Vietnam’s cheap labor force to a high-tech one, and attract other companies
to invest in the technology industry,” a SaigonTel official said.
The park is expected to attract an additional $2.95 billion in foreign direct investment,
contribute $4.3 billion in taxes, and create $6.5 billion in annual revenue.
It will also create 40,000 new jobs during the construction period and 70,000 jobs for
software specialists and IT engineers.
Vietnam software industry's revenue grew six times in 2000-2006 and accounted for
0.4% of the country's gross domestic product.
Vietnam plans to become the third largest supplier of software developers in the world
after India and China in the near future. (Labor July 21 p3)
Vietnam to Simplify Procedures for Real Estate Investment
The Vietnamese Ministry of Construction will streamline administrative procedures for
real estate investment in the upcoming months, said Minister of Construction Nguyen
Hoang Quan at a recent seminar on administrative procedures and reform on real estate
projects.
A recently-conducted survey on the new urban zone construction projects by the ministry
showed that, each project took an average of 33 administrative procedures and three years
to be completed, Quan said.
He said the cumbersome procedures are huddles of construction projects, resulting in a
shortage in supply of real estate projects in the market.

237. The minister added that the ministry will issue a standard form for housing construction
investment procedures soon, expected to reduce the number of procedures to eight and
the new time frame should span just one year.
The ministry also asked the provincial and municipal authorities to check and cancel any
unlawful procedures they have issued.
Meanwhile, investors of state-funded projects are required to submit their reports on
disbursement in the first six months this year. This will help the ministry to cut capital of
projects with slow disbursement to prioritize key projects.
In the first five months of this year, the ministry cut and delayed 52 projects valued at
over VND4.1 trillion (some $250 million) out of 505 worth VND40.8 trillion scheduled
in the year, state media said.
Lilama has decided to slash VND1.8 trillion of its investment, the Song Da Construction
Corp has cut VND1.25 trillion and the Mien Trung Corp has axed VND523 billion.
(Vietnam News Agency Jul 19, Capital Security Jul 21 p2)
Italy Launches Vietnam Investment Information Portal
The Italia-Vietnam Chamber of Commerce and the Turin-based center for Vietnamese
studies have jointly made debut an information portal, Viet-it Affairs, the first of its kind,
to serve Italian and Vietnamese investors, Vietnam News Agency said.
Viet-it Affairs will publish information in the Italian, English and Vietnamese regarding
business, culture, tourism, finance, trade and exhibition activities of the two countries, the
agency said.
The website will also provide information on communication courses such as
interpretation, marketing for Vietnamese and Italian entrepreneurs.
The bilateral trade between Vietnam and Italy is expected to reach $1.5 billion this year.
In the first four months this year, Vietnam had shipped $288.55 million goods to Italy.
As of late October of last year, Italian investors invested $93.27 million into 23 projects
in the Asean country. (Vietnam News Agency Jul 20, Vietpan Database)
Foreign Investment:
Israeli Shipbuilder Plans to Set up 7 Shipbuilding Yards in Vietnam
The Israeli Ray Shipping Co has planned to set up six or seven shipbuilding factories in
Vietnam and hoped that Israel’s advanced shipbuilding technologies will help contribute
to the Vietnamese industry, the Israeli billionaire Rami Ungar told a meeting held in
Hanoi recently.

238. Rami Ungar said Israeli and Vietnamese enterprises should promote cooperation in high-
tech industries, ship building, sea transport, construction, property, securities, insurance
and tourism.
The Ray Shipping Co, one of his three companies, inked a $1 billion shipbuilding
contract with the Vietnam Shipbuilding Industry Group (Vinashin) in 2006 and Vinashin
is scheduled to deliver a series of car carriers in June this year.
The Israeli billionaire also shared his views on Vietnamese and global economies and
experience in doing business at the event co-held by the Vietnam Chamber of Commerce
and Industry and the Israeli Embassy.
Vietnam’s economy which was impacted by fluctuations from the global market will
overcome difficulties in the next two years, he said.
A representative from the Vietnam National Shipping Lines (Vinaline) said his company
wanted to cooperate with the Israeli company in the seaport.
The Vietnamese prime minister said Vietnam will open its embassy in Israel to beef up
the multifaceted relations, particularly in economics, trade, investment and education.
The bilateral trade between Vietnam and Israel has sharply increased in recent years after
the two countries signed the bilateral trade and investment agreement in 2004. The two
way trade reached $113 million in the first nine months of 2007, up 50% from a year ago,
the ministry said.
Last year, an Israeli company signed a $1 billion contract with Vietnamese shipbuilder,
Vinashin. (Vietnam News Agency Jul 15, Vietpan Database)
U.K. Firm Inks $55 Mln Design Deal for Nghi Son Oil Refinery
Foster Wheeler Energy Limited of the U.K has recently clinched a deal worth $55 million
to undertake the Front End Engineering Design (FEED) for Nghi Son oil refinery in
central Thanh Hoa province, state media reported.
The foreign company will complete the FEED that costs totally $200 million within 16
months since the first day the deal takes effect July 18, said Cao Hoa Duong, deputy
director of Nghi Son oil refining-petrochemical limited company.
The complex has an initial investment of $6 billion with PetroVietnam holding a 25.1%
stake, Idenmitsu of Japan and Kuwait Petroleum International (KPI) 35.1% each, and
Mitsui Chemical Inc of Japan 4.7%.
It will be equipped with the most modern technology and be the with biggest of its kind
in Vietnam with a capacity of refining 200,000 barrels of oil per day or 10 million tons
per annum, an 1.5-fold increase against Dung Quat oil refinery’s capacity.

239. The plant that will use crude oil imported from Kuwait is designed to produce 2.1 million
tons of gasoline- 92, 95 and 98-octane grades - 2.67 million tons of diesel, 790,000 tons
of kerosene and jet fuel as well as 500,000 tons of liquefied petroleum gas (LPG)
annually.
The project will be operational for the first phase in late 2012 or early 2013 to supply
60% of Vietnam’s petroleum demand. Its capacity will be raised to 20 million tons per
year in the second phase. (Labor Jul 21 p3, Vietnam & World Economy Jul 21 p4,
Pioneer Jul 21 p13)
Politics & Law:
Capitals of Vietnam, Russia Pass New Cooperative Documents
Hanoi and Moscow inked a joint communiqués and new term cooperative agreement July
18 during the Vietnamese delegation’s visit to Russia’s capital to attend “Hanoi Days in
Moscow”, according to Vietnam News Agency.
Under the signed documents, the two sides pledge to continue their bilateral cooperation
in order to assist organizations and enterprises to develop long-term economic
cooperation.
The agreements will allegedly contribute to speed up the construction of the Hanoi-
Moscow Cultural and Trade Centre in Moscow and the Moscow House in Hanoi.
The two cities will also strengthen cooperation in science and technology, education and
training, culture sport and tourism, and boost exchanges of experiences in economy and
city management.
“Hanoi Days in Moscow” included a water puppets performance by Vietnamese artists at
the cultural park in Moscow and a gala night was also held at the Mossovet Theatre for
the Vietnamese community.
A friendship meeting to highlight the solidarity, cooperation and development between
Vietnam and Russia was held on the occasion, with the participation of head of the
Vietnamese delegation, Hanoi’s vice mayor Ngo Thi Thanh Hang and chairman of the
Russia-Vietnam Friendship Society Vladimir Buianov.
A memorandum of understanding on training cooperation was signed between the
College of Foreign Languages under the Hanoi National University and the Moscow
Institute of Economics and Law during the meeting. (People’s Army Jul 21 p8, Website
of CPV Jul 18)
Vietnam Deputy PM Visits Laos to Boost Investment, Trade Ties

240. Deputy Prime Minister Nguyen Sinh Hung, accompanied by representatives from
ministries of Planning and Investment, Industry and Trade, Agriculture and Rural
Development, Natural Resources and Environment, Transport, and some businesses, will
start the working visit to Laos today, the government said on its website July 21.
The Vietnamese delegation is scheduled to visit some southern provinces of Laos and
attend the mid-meeting of the two sides’ cooperative subcommittees.
In the first four months of this year, the figure hit $145.5 million, up 57.6% on year.
Vietnam currently has 109 investment projects licensed in Laos, with the total capital of
$1.1 billion.
Prime Minister Nguyen Tan Dung has recently approved a plan to build Vietnam-Laos
border zone by 2020 into an area for economic exchange between the north and the west
of the country.
The targeted region will include 10 provinces of Dien Bien and Son La in the north,
Thanh Hoa, Nghe An, Ha Tinh, Quang Binh and Quang Tri, Thua Thien-Hue and Quang
Nam in the central Kon Tum in the Central Highlands, contributing to further increase the
two-way trade, which is expected to reach $1 billion in 2010 and $5 billion in 2020.
(Website of government Jul 21, Vietpan)
Labor & Education:
Int’l Physic Olympiad Opens in Vietnam for First Time
The 39th International Physics Olympiad (IPhO) begins in Vietnam for the first time
today [July 21], drawing the participation of more than 650 students and experts from 85
countries and territories, the Saigon Giai Phong reported Monday.
Candidates will compete in physics theory tests July 22 and 23 and practical tests July 25.
Five Vietnamese students representing the country at the IPhO are Nguyen Duc Minh
from Amsterdam High School for Gifted Students, Do Hoang Anh from Hanoi National
University, Hoang Minh Toan from Danang-based Le Quy Don High School, Nguyen
Tat Nghia from Nghe An-based Phan Boi Chau High School and Tran Anh Vu from
Hanoi-based Dao Duy Tu High School.
The IPhO 2008 is not only a significant educational event but also one of the biggest
tourism events of the year. This year’s event also boasts the largest number of
participating countries and territories in its history.
Notably, the event welcomes Prof. Friedman who won the Nobel Physics Prize in 1990.
The professor will hold talks with students and experts on July 25.
The IPhO awarding ceremony will be held in July 28.

241. Last year at the 38th International Physics Olympiad (IPhO) in Iran, Vietnamese students
reaped fruitful results at the event by taking two gold medals, two silvers and one
encouragement prize. (Labor July 21 p2, Saigon Liberation July 21 p3, New Hanoi July
21 p1, People’s Army July 21 p4, News July 21 p1)
Health & Environment:
Vietnam Int’l Health Exhibition to Open in Sep
The third Vietnam International Health Exhibition 2008 “Pharmed & Healthcare
Vietnam” will take place at Ho Chi Minh City International Exhibition and Convention
Center (HIECC) from September 10 to 13, Vietnam Economic Times newspaper reported
July 21.
Over 200 Vietnamese enterprises and many foreign partners from 20 countries and
territories including India, Pakistan, and China will display their products at 300 booths
covering over 5,000 square meters.
Main products will be showcased, including pharmaceutical products, pharmaceutical
producing machines, packing equipment, imaging and endoscopic equipment, hospital
appliances.
The Vietnam Medical Products Import-Export Joint Stock Company (Vimedimex VN),
the Vietnam Advertisement and Fair Exhibition Company (Vietfair) and the Health
Education Propaganda Center under the Ministry of Health co-organized the annual
event.
During the four-day exhibition, the ministry will hold some symposiums, consulting and
product introduction seminars.
The four-day Pharmed & Healthcare Vietnam 2007 attracted around 35,000 visitors.
(Vietnam Economic Times Jul 21 p2, New Hanoi & Labor Jul 19 p3)
10% of U-5 Vietnamese children Suffering Hepatitis B
Between 7% and 10% of Vietnamese children aged less than five are contracting hepatitis
B due to inadequate vaccination, said Do Si Hien, Head of the National Expanded
Vaccination Program.
Up to 200,000 children under one did not receive enough shots of various vaccines last
year, posing high threat of being infected with diseases in the future, Hien said.
The Global Cancer Association said that Vietnam has been rated the second worldwide
for the liver cancer rate with 90% of the cases developed from hepatitis B.

242. As many as 20% of Vietnamese are likely to contract hepatitis B, said a symposium on
liver diseases and liver transplant held by the Singaporean Parkway Healthcare Pte Ltd in
central Danang city April 20. (Youth Jul 21 p4)
Vietnam to Fine Business VND500 Mln for Causing Environmental Pollution
Vietnam will apply the highest fine of VND500 million ($30,300) on producers for
causing environmental pollution, the Environmental Protection Agency said.
Vice Head of the agency, Nguyen Hoa Binh, said other forms of punishment besides
fines will be applied on violators.
The new fine levels will help force firms to obey rules on protection environment, the
agency expected.
The agency inspected 384 production units, 47 industrial zones and 7 craft villages in 41
provinces and cities last year and it had detected 116 polluters.
Notably, 17 out of 173 inspected units didn’t submit reports on environmental impacts,
125 units didn’t realize their environmental protection pledges, 102 units discharged
waste water exceeding standards, and 77 units discharged toxic waste. (VietNam Net
Bridge, Life & Law July 19 p3)
Culture & Society:
Vietnam Proposed to Readjust Poverty Line
The Vietnamese Ministry of Labor, War Invalids and Social Affairs has recently
proposed the prime minister for approval a plan to readjust the poverty line standard for
the 2006-2010 period to match rising prices, the Thoi Bao Kinh Te Viet Nam newspaper
said.
Under the proposal, the national poverty line will be raised to VND300,000 ($18.18) and
VND390,000 ($23.63)/person/month in rural and urban areas, respectively.
The new poverty line is based on 2007’s CPI of 12.63% and 2008’s estimated CPI of
27.5%, the newspaper said.
If approved, the rate of poor households nationwide will make up 16.5% - 17.5% or
between 3.2 million and 3.4 million poor families by the end of this year.
The data of the GSO showed the country’s consumer price index (CPI) rose 26.8% on
year in June and the poor are the hardest hit by the price hikes.
The ministry said that from 2009 if the CPI surpasses 10%, it will ask government to
readjust the poverty threshold, a state media said.

243. The ministry also proposed the government take strong measures to reduce poverty in 60
districts with the poverty rate of over 50% in a bid to narrow the gap between the rich and
the poor. (VNA July 21, Economy & Urban July 21, Vietnam Economic Times July 18,
VietNamNet Bridge July 19)
Vietnam PM Urges to Put an End to Major Corruption Cases
Vietnamese Prime Minister Nguyen Tan Dung requested related agencies to quickly
bring an end to major corruption cases, including the Project Management Unit 18 and
the case regarding fake electronic electricity meters in Ho Chi Minh City, in a bid to
convince the people of the Government’s determination to combat corruption.
The government leader made the instruction at the seventh meeting of the Anti-
Corruption Central Steering Committee in Hanoi July 18, according to Vietnam News
Agency.
Dung also asked authorities to urgently impose administrative punishment on former
Deputy Minister of Transport Nguyen Viet Tien for his “negligence of duties, causing
serious consequences”.
Earlier, in Decision No. 13/VKSTC-V1A, the Procuracy rejected charges of
“intentionally violating state regulations on economic management, causing serious
consequences” and “abusing position and power while executing duties” that had been
filed against Tien.
“The Procuracy should have imposed the administrative punishment over him
immediately after the nonsuit to avoid the public’s misunderstanding,” the PM noted.
The Anti-Corruption Central Steering Committee reported that in the first six months it
identified 111 out of the 1,700 petitions and claims to hint at possible corruption cases.
In the reviewed period, investigation agencies at all level prosecuted 211 corruption cases
with 534 individuals. Corruption-caused financial damage is estimated at VND251.6
billion.
However, the investigation process over corruption still remains slow.
Prime Minister Nguyen Tan Dung instructed agencies to continue to take drastic
measures to fight corruption, including informing the public of corruption cases promptly
and accurately. (Pioneer Jul 21 p2, HCM City Law p1)
Vietnam Reports 11 Private-owned Notary Offices So far
Eleven private-run notary offices have to date been established in Hanoi, Can Tho, Thanh
Hoa and Ba Ria-Vung Tau, the Cong An Nhan Dan newspaper said Monday [July 21],
citing a official of the Ministry of Justice.

244. The establishment of these private-owned notary offices will help reduce the overload of
the state notary offices and cut administrative procedures, analysts said.
Recently, Hanoi capital city authorities have approved establishment of first seven
private-owned notary offices, and a number of offices are expected to be licensed in the
coming months.
Meanwhile, tens of private-run notary chambers in Ho Chi Minh City with full of
material facilities are anxiously waiting for approvals, the paper said.
Currently, Vietnam has 140 state-run notary offices with nearly 400 employees, including
six offices in Hanoi and six agencies in HCM City. (People’s Police p5, VietNamNet
Bridge)
Stock Market:
Standard Chartered Buys 16 Mln ACB Shares from IFC
Standard Chartered Bank (Hong Kong) Limited will begin buying 16.2 million shares in
Asia Commercial Joint Stock Bank (ACB) from the International Finance Corporation
(IFC) July 24, the Hanoi Securities Trading Center announced on its website.
IFC will sell the shares based on negotiations at VND140,000 each, more than double
ACB's current market price of VND66,700.
In early May, Standard Chartered announced it would boost its stake in ACB to 15%
from 8.84% by acquiring an additional 6.16% stake, or 16.2 million shares, from IFC.
According to the press release of Standard Chartered, it also bought extra 7.1% of
convertible bonds of ACB, bringing its total bond holding to 15.86% from 8.76% in
ACB.
The deal showed that the British lender is seeking long-term investments in Vietnam,
especially after the bank was approved to set up its 100% foreign-invested bank in the
country, the local newspapers said.
Standard Chartered has become strategic partner of ACB since July 2005, with the
acquisition of a 8.56% stake worth $22 million in the Vietnamese lender.
Late last week, ACB received the State Bank’s approval to raise its registered capital to
VND5.8 trillion ($351.5 million) from current VND2.63 trillion. (Labor Jul 21, HASTC,
Vietstock, ATP Jul 19)
Vietnam Biggest Listed Bank Posts Gross Profit of VND1 Tln in H1

245. Asia Commercial Bank, Vietnam’s biggest listed bank by assets, said on its Web site that
it posted a gross profit of VND1 trillion ($60.6 million) in the first half this year, but
giving no comparative figure.
ACB’s robust profit is attributed mainly to gold transactions fees and loans lent to inter-
bank market, Ly Xuan Hai, CEO of ACB was cited by the Tien Phong (Pioneer)
newspaper as saying Monday.
The Ho Chi Minh City-based bank recently received approval from the State Bank of
Vietnam to raise its registered capital to VND5.8 trillion from VND2.6 trillion.
In the first six months this year, ACB reported its total assets of VND102.639 trillion,
total deposit of VND90.345 trillion, and lent VND41.879 trillion.
The bank’s capital safety rate is 14%, surpassing the required 14% by the central bank, its
overdue debts were less than 0.4% and bad debts were less than 0.1%, it said.
ACB, the most active stock today, closed down at VND66,700 on 794,600 shares traded
after Vietnamese ministries decided to increase prices of gasoline to VND19,000/liter,
which will trigger a new wave of consumer price hikes and push up production costs to
thinner business profits in the second half, traders said. (www.acb.com.vn, Tien Phong
Online Jul 21, www.vtc.vn Jul 21)
Eurocapital Runs Smart Quotes Board
Eurocapital Securities Company (ECC) launched a smart quotes board last week, with
complete information about stock exchanges in Hanoi and HCM City to serve most
securities investors.
The investors don’t need to wait until the trading sessions close, they can get any
statistics on increases or declines of share prices and volumes on the stock markets with a
simple click on columns of price or volume.
The smart quotes board will also provide investors with analyses on order matching
results of each share.
In other development, the ECC has cooperated with the Bank for Investment and
Development of Vietnam (BIDV) to manage the securities accounts of ECC's investors
since July 1.
Investors can log in the website www.eurocapital.vn/ho, or www.eurocapital.vn/ha to
exploit further information. (Vietstock Jul 19, VNS Jul 19 p19)
Vietnam Stock Bourse Resumes Listing Bach Tuyet Cotton Stock

246. The Ho Chi Minh City Stock Exchange has resumed transactions of Bach Tuyet Cotton
Co’s shares today [July 21] after the company has explained its business operations plans
with ways to clear debts, Vietnamese state media said Monday.
BBT shares are re-listed with reference price of VND8,800 and will be under close watch
of the stock market watchdog.
BBT will have to pay debts of VND42.8 billion.
BBT previously had its shares suspended because of having loss in the two consecutive
years.
BBT shares closed down at VND8,600 on 2,350 shares. (The People Jul 20, Vneconomy
Jul 21)
Jul 21: Vietnam Shares Dive on Gasoline Price Surge
Vietnam's shares closed much lower Monday as domestic investors were selling on
concerns that inflation would leap up again in coming months after the government
decided to raise gasoline prices by as much as 31% from July 21.
“Local investors felt displeased with authorities who had said recently that they would
not raise fuel prices to battle inflation,” a Hanoi-based trader said.
“The fuel price hike may drive the economy into turmoil again, hurting market sentiment,
which started recovery for several weeks,” he said.
Regarding authorities, Minister of Finance Vu Van Ninh said on Vietnam Television that
the decision on gasoline price hike is aimed to reduce the huge cost of state subsidies,
which were valued at VND14.5 trillion in the first half.
VN-Index today slid 12.23 points, or 2.53%, at 470.82.
Market volume totaled 14.1 million shares valued at VND660 Monday, down from 25.9
million shares valued at VND1.03 trillion last Friday.
SSI, the most active stock today, rose 2.9% at VND49,000 on a trade of 7 million shares,
of which foreigners bought 6.5 million shares and sold 1.2 million shares. This is also the
only rising stock today.
HPG, the second most active stock, fell 2.8% at VND52,000 on 940,050 shares,
including 339,920 shares bought and 18,600 shares sold by foreigners.
STB shed 2.7% to close at VND28,800 on 612,140 shares.

247. PET lost 2.7% at VND22,000 on 799,080 shares changing hands, including 900 shares
bought and 219,000 shares sold by foreigners.
PIT is the biggest decliner, falling 3% at VND19,400 on 118,330 shares.
All four fund certificates closed lower. (HOSE July 21)
Vietnam News
July 18, 2008
Inter-bank Forex Rate: $1=VND16,501
Banking & Finance:
IFC Helps Vietnam Streamline Tax Procedures
The International Financial Corporation (IFC) and Vietnam’s General Department of
Taxation (GDT) have signed a memorandum of understanding in which IFC will help
simplify taxation procedures for small and medium enterprises (SMEs) in Vietnam.
The GDT, with assistance from IFC, will conduct surveys on SMEs’ spending on taxes,
analyze unnecessary tax procedures and study international practices to find out suitable
management measures for SMEs.
The program will be carried out from July 2008 to December 2010.
Le Hong Hai, deputy head of the GDT, said Vietnam now has about 180,000 private
SMEs and some three million households, most of them have small and very small scales.
They spend more time and money on processing tax procedures than large-scale
enterprises and make small contributions to the state budget.
The GDT has developed a plan to reform tax administrative procedures, focusing on
private businesses, she said.
Richard Stern, director of the investment climate advisory agency FIAS, an unit of IFC,
said that streamlining policies and taxation procedures will help tax agencies better
manage tax payers and curtail loopholes leading to corruption. (Vietnam Economic
Times Jul 18 p2, VNA Jul 18)
Canada Proposed to Help Vietnam in Deposit Insurance
The State Bank of Vietnam (SBV) has called on the Canadian-based Deposit Insurance
Corporation of Ontario (DICO) to share its operation experiences with Deposit Insurance
of Vietnam (DIV), state media quoted SBV Governor Nguyen Van Giau as saying.

248. Giau also proposed at his meeting with DICO President-cum-CEO Andrew Poprawa in
Hanoi on July 16 that DICO will soon help Vietnam draft the Law on Deposit Insurance
to lay a legal foundation for operations in the field.
Poprawa spoke highly of the results made by DIV, a state-owned and non-profit financial
institution, which is operating under direct guidance of the governor of the State Bank of
Vietnam.
He said, however, that DIV should pay more attention to inspecting credit institutions,
guide them in risk management and take distant supervision measures.
A DIV report showed that DIV conducts quarterly supervision over all institutions
involved in deposit insurance, including 76 commercial banks, 10 non-bank credit
institutions and 992 people’s credit funds.
Its supervision activities have focused on forecasting and warning risks and designing
specific risk assessment approaches for every institution engaging in deposit insurance.
(Vietnam & World Economy Jul 18 p5)
Finance Ministry Fixes Interest Rates for Investment and Export Credit
The Vietnamese Ministry of Finance has issued a decision to fix the state's lending
interest rates for investment credit, export credit and support for interest rate difference,
the Thoi Bao Kinh Te said.
Under the decision, the lending interest rate for investment credit is fixed at 12% per
annum for Vietnamese dong and at 7.8% per year for free convertible foreign currencies.
These rates will be 11.4% for the dong and 7.2% for convertible foreign currencies for
those projects of building infrastructure, rural and agricultural development and other
investment projects in disadvantaged areas, in Khmer ethnic minority inhabited areas, in
communes belonging to the hunger eradication and poverty reduction program, border
communes subjected to the Program 120.
The ministry announced the lending rate for export credit in VND is 14.4% per annum
and that in free convertible foreign currencies 7.8%.
The interest rate difference for post-investment support for projects loaned in VND is
fixed at 3.9% per annum and for those loaned in free convertible foreign currencies at
0.96%.
Vietnam Development Bank will be responsible for providing these loans. (People Jul 16,
Vietnam Economic Times Jul 17)
Agribbank, Vietcombank Offer Cheaper Loans

249. State-run Agribank and Vietcombank have announced to cut interest rates on Vietnamese
dong and U.S. dollar loans down by 0.5-1 percentage point per annum as of July 18, the
Thoi Bao Kinh Te newspaper reported.
Agribank will drop dong lending rates by 0.5 percentage point and would lend at a
maximum 20.5%, compared with the government-approved ceiling of 21%.
The Hanoi-based lender will also cut rates on U.S. dollar loans by 2 percentage point, the
paper said.
Vietcombank, meanwhile, offered to slash its lending interest rates by 1 percentage point
to 20% per annum on the dong loans and 0.5 percentage point to 8.5% on U.S. dollar
ones.
The Bank for Investment and Development of Vietnam (BIDV) is the first bank that cut
lending rates in response to the call by the State Bank of Vietnam to ease difficulties for
businesses and help curb inflation and stabilize the macro economy.
Vietnam has cut its economic growth target this year to 7% from earlier projections of
8.5% to 9% after growth accelerated to 8.48% last year from 8.17% in 2006.
The Southeast Asian country has been battling double-digit inflation every month since
last November and a tripling of the trade deficit.
The country's central bank has said it aims to restrict loan growth to 30% this year as part
of measures to contain inflation, after a rapid 54% surge in loans in 2007. (Young People
Jul 18 p7, Vietnam Economic Times Jul 18 p1, Liberated Saigon Jul 18 p2)
US’s ACE Life Vietnam Sees Premiums Surge 131% in H1
ACE Life Vietnam, an affiliate of the U.S. insurance and reinsurance ACE Group,
continues to see robust growth in the first half this year with insurance premiums surging
131% on year, the firm said in a press release July 15.
This growth is extremely impressive given the current volatility of the local financial
markets.
Lam Hai Tuan, CEO of ACE Life, said “customers decide to buy an insurance product
based on their trust in the service provider and the financial protection the product
provides. The financial market is only temporarily volatile while the purchase of a life
insurance product offers a lifetime of protection. Therefore, the customer’s need for life
insurance will not be affected if the products and services purchased satisfactorily meet
their requirements.”

250. ACE Life has recently applied new interest rates on the Contract Account Value of its
Universal Life insurance from July 1 at 9%/year for a Flexible Premium Payment and at
9.25%/year for a Single Premium Payment.
The Universal Life product offers several market leading benefits, such as lifetime
protection, flexible premium payments, and personal bank account-style to allow
temporary money withdrawal to cope with unexpected difficulties. It also allows
customers to raise the face value of the contract to meet new demands when their
financial capacities are improved, or to cope with higher prices in the face of inflation.
This benefit of Universal Life is particularly appealing given the current two-digit
inflation.
ACE Life has now its headquarters in Ho Chi Minh City and 12 offices nationwide with a
strong force of 4,400 professional account representatives. (ACE Life Jul 15, Vietnam
Economic Times Jul 18 p4)
Vinachem to Invest $3.1 Mln in Vietnam Star Bank
Vietnam National Chemical Corporation (Vinachem) is taking necessary procedures to
invest VND50 billion ($3.13 million) in Vietnam Star Commercial Joint Stock Bank
(Vietstarbank).
Vinachem is one of the founder-stakeholders in the newly-established Vietstarbank,
beside Vietnam Technological and Commercial Bank (Techcombank) and Tan Tao
Industrial Zone Company (Itaco).
Vinachem said it only make financial investments in Vietstarbank and Bao Minh
Insurance Corp, with total value of VND66.5 billion, accounting for 1.85% of its
registered capital.
The firm had invested VND16.5 billion ($100 million) in the insurer by the end of 2007.
Vietstarbank started operation since May 2008 with a registered capital of VND1 trillion.
The bank targets net profits at VND19 billion in 2008, VND115 billion in 2009 and
VND257 billion in 2010. (Securities Investment Jul 18)
Techcombank Proposed to Sack Director of Saigon Branch
The State Bank of Vietnam (SBV) sent a dispatch July 16 to Techcombank to ask for
dismissal of Luong Huu Lam, director of its Saigon branch, because the branch a lending
interest rate higher than the ceiling rate.
Techcombank is also required to dismiss the head of the Transaction Office of the branch
Le Duc Tho and deputy head of the Thu Duc transaction office.

251. The State Bank of Vietnam said it found that Tho lent a client VND350 million, but he
asked the client for a deposit mortgage of VND70 million and adjusted the lending rate to
24.4% per annum, surpassing the ceiling interest rates regulated by central bank at 21%.
The Thu Duc transaction office, meanwhile, is accused for loaning a customer VND24
million, but asking the customer to mortgage VND7.2 million.
The SBV said these actions have violated the current regulation on interest rate
management.
On the same day, the SBV also sent a document to request Sacombank to sack head of
the Transaction Office of the Tan Dinh Branch for raising interest rates to 1.92% a
month, or 23.04% a year, which is higher than the ceiling interest rate.
In early July, Vietnam International Bank (VIBank) decided to dismiss the customer
director of its Saigon branch, Nguyen Xuan Do, after the branch asked a client to pay a
security on the loan. (Labor Jul 17)
Trade:
Vietnam Slashes Import Tariffs by 50% on Eight Lao Products
The Vietnamese Ministry of Finance July 15 decided to halve import tariffs on eight
commodities, mainly foodstuff, farm products and engines, originating from Laos,
Vietnam News Agency reported.
The move is within the country’s roadmap to implement the Common Effective
Preferential Tariff (CEPT) scheme applied by the Association of Southeast Asian Nations
(ASEAN) since 1992 in a bid to form an ASEAN free trade area of 500 million
consumers.
Since the application of the CEPT mechanism in 1996, Vietnam has axed tariffs on
10,324 lines of goods, including 10,000 types to between zero and 5% in 2006.
Vietnam has joined efforts with Laos, Myanmar and Cambodia to abolish import tariffs
on all commodities originating from ASEAN countries by 2018.
To realize the roadmap, the ministry last month issued a new preferential import tariff list
for the 2008-2013 period, reducing import taxes to 5% and zero for thousands of
ASEAN-originated goods.
Art works, ancient articles, interiors, optical equipment and devises, watches, live
animals, food and foodstuff were among those listed.
According to the roadmap, specially-designed automobiles imported from ASEAN
member countries will enjoy a 5% tariff instead of the current 10% and automobiles with

252. nine seats less to get a tax slashed from the current 83% to 60% by 2013. (VOV Jul 16,
VNA Jul 16)
Vietnam to Export One Million Tons of Coffee Annually
Vietnam will export around one million tons of coffee annually thanks to its stable area
of 500,000 hectares, the Vietnam Cocoa and Coffee Association (Vicofa) said Friday.
The stable export volume will help the country ensure coffee quality and reasonable
prices, local analysts said, noting that the one million tons for export is suitable.
Vicofa said from 2000 to 2007, ten biggest coffee importers of Vietnam bough 4.283
million tons of coffee, or 611,930 tons per crop from farmers, accounting for 73.77% of
Vietnam’s total coffee export volume.
Vietnam exported 571,000 tons of coffee valued at US$1.181 billion in the first half of
2008, down 31.7% on year in volume and 4.1% in value.
Vietnamese robusta coffee was traded at $2,130 a ton of second grade, FOB, early this
month, up by US$50 a ton from a week earlier, and some 18% from the same period of
last year. (Vietnam Economic Times July 15 p2)
Hanoi Trade Center in Moscow Kicked off
Hanoi-Moscow Trade Center Investment Joint Stock Company (Incentra JSC) July 17
officially started construction on the Hanoi Trade-Culture Center in Russia’s capital city
of Moscow, the Urban Economy newspaper reported July 18.
The project, part of Hanoi-Moscow cooperation program, has a total investment of $120
million, of which, the Bank of Investment and Development of Vietnam (BIDV) financed
75% or $90 million.
The 4.9-ha project in the crowded northwestern area of Moscow consists of a three-storey
trade center occupying 10,000 sq.m and a 24-storey multi-functional hotel with 720
rooms.
The center, which will display a wide range of products such as handicrafts, footwear,
apparel, consumer goods, seafood, food stuff, and fruit, is aimed to promote Vietnamese
products in the potential market of Russia in particular and the European market in
general,
The project is slated for completion in late 2010.
Vietnam-Russia trade is expected to reach between $2-$3 billion in 2010, up 1.8-2.7
times against 2005. (Urban Economy Jul 18 p8)

253. Iron, Steel Imports Rise Again-Ministry
The amount of Iron and steel imports has risen again from the beginning of July after a
time of standstill, the Ministry of Industry and Trade said Friday.
In the first week of July, iron and steel import reached nearly 96,100 tons, up 38.1% on-
week including more than 30,500 tons of steel billets, increasing by over 71.5% on-week.
Steel sheet import also fetched more than 16,300 tons, a rise of 9.3% on-week.
The import price of steel billet stayed at $948/ton, up 3.5% compared with the final week
of June and steel sheet $855/ton, up 11.1%.
The highest import price belonged to stainless steel, at over $2,680/ton, up 27.8% on-
week.
Only price of shaped steel import reduced 21.4% so the import volume increased by
19.1% on-week. (Pioneer Jul 18 p15, Market Jul 18 p3)
Industry:
PetroVietnam Joins Oil, Gas Bidding in Peru
The state-owned oil monopoly PetroVietnam group together with Asian companies has
registered to join bidding for 22 oil and natural gas fields in Peru, said Daniel Saba, CEO
of the state-owned oil company of Peru, Perupetro.
The tender is expected to open in Sep this year, Saba said on the Peru Television.
In addition to PetroVietnam, candidates for the bidding include four Korean companies,
three Chinese firms and three Indian partners, Saba added.
Peru now import up to 12 million barrels of oil per annum, mainly from Ecuador and
Iran. The country, however, is boosting investment in the oil and gas sector to become an
oil exporter by 2010.
In the first half of this year, PetroVietnam produced 10.8 million tons of oil equivalents
from 7.2 million tons of crude oil and 3.6 billion cubic meters of natural gas.
The group clinched eight new oil and gas contracts, including two in domestic market
and six in foreign countries in the January-June.
It is currently seeking to invest in Kazakhstan, Myanmar, Tunisia, Indonesia, Angola,
Iran, Russia, Azerbaijan, and Belarus, in a bid to fulfill its target of producing between
15.5 million and 16 million tons of crude oil this year. (Vietnam & World Economy Jul
18 p10, Pioneer Jul 18 p3, Vietpan)

254. EVN to Fund VND5 Bln for Surveying Business Energy Consumption
State-owned Electricity of Vietnam Group (EVN) has planned to spend VND5 billion
($303,030) auditing energy quantities consumed by enterprises across the country in a bid
to work out solutions to efficient and economic energy use, the Vietnam News Agency
reported, citing EVN sources.
Focal to EVN’s support will be industrial producers and construction companies that
have annual power consumption of five million kWh and the upward, as well as
enterprises with potential of using large amount of electricity like food processing,
drinking, apparel, cement, iron, steel, paper and plastic firms.
Over 100 enterprises will receive the assistance, of which, 50 are located in Ho Chi Minh
City, 50 in Hanoi, 15 in southern Dong Nai province, and five in Hai Duong, Haiphong
and Danang each.
EVN will cover all spending for the auditing but limits the finance at maximal VND50
million ($3,030) for each firm.
Power companies in the aforementioned localities will select suitable companies to assess
energy used by local businesses.
After auditing results and solutions are announced, enterprises will map out plans to
deploy energy saving measures.
The auditing will span between July and November this year.
Vietnam is forecast to lack 8.6 billion kWh of electricity this year. Meanwhile, the
country is calculated to waste around $1 million worth of energy a year. (Vietnam &
World Economy Jul 18 p7, Vietpan)
Vietnam Northern Province OKs to Build 81 Hydropower Plants
Northern Lao Cai province has to date granted 45 investment licenses to build 81 small-
and-medium-sized hydropower plants with combined capacity of 909.8 megawatts, the
Thoi Bao Kinh Te newspaper reported, citing the provincial sources.
Of the plants worth VND17 trillion ($1.03 billion), eight with combined capacity of 42.2
MW have been connected to the national electricity grid.
Meanwhile, 20 other plants with combined capacity of 467.6 MW are under construction.
Power-thirsting Vietnam is estimated to lack 8.6 billion kWh of electricity this year and
the figure will climb to 36 billion kWh in 2020 and 120 billion kWh in 2030.

255. The country plans to raise the total capacity of hydropower generation projects to more
than 18,000 MW and the annual output of over 80 billion kWh by 2015, under the
national power development plan through 2015 and span to 2025, or plan VI. (Vietnam
Economic Times Jul 18 p3)
Agriculture:
Vietnam, Thailand Join Hands in Rubber Industry
Vietnam and Thailand, which are among the biggest rubber producers in Asia, have
agreed to boost cooperation in rubber industry, local media reported.
The Vietnam Agriculture reported that at the meeting in HCM City July 17, Thai Deputy
Minister of Agriculture and Co-operative Theerachai Saenkaew said the two countries
should exchange scientific information, and cooperate in training technicians and experts
in rubber industry.
“Instead of exporting raw material, we should focus on developing rubber products like
tires, tube and mattress in order to increase rubber added-values,” deputy general director
of the Vietnam Rubber Group (VRG), Pham Van Hien, said.
Bui Ba Bong, Deputy Minister of Agriculture and Rural Development, also noted the
importance of sharing information in rubber trading.
Theerachai Saenkaew said Thailand wanted to shake hands with Vietnam to ship rubber
via Danang port to China, Japan and South Africa.
Thailand is now the world’s biggest natural rubber producer, with annual output of three
million tons, including 2.7 million tons for exports.
Vietnam now ranks 6th in the world in rubber area, the 5th in rubber output and the 3rd in
exports.
The two ministries agreed to assign the VRG and Thailand Agriculture Department to
take responsibility for cooperation. (Vietnam Agriculture July 18 p3)
Paper Industry Promises Enough Paper for Local Market
Vietnamese paper producers pledged to provide enough paper for local market by the end
of this year, the Youth newspaper reported.
In a meeting between the Vietnam Paper Association, the Vietnam Paper General
Company and Tan Mai Paper JSC, seeking ways to ensure sufficient paper in Hanoi July
16, the Vietnam Paper General Company promised to offer 70,000 tons of print paper and
writing paper.

256. Tan Mai Paper JSC, the country’s second biggest paper producer, also said it will provide
42,000 tons of print paper, and 25,000 tons of writing paper in the last six months of
2008.
The association also called on newspaper and notebook producers to take part in
importing paper in order to calm down shortage at domestic market, because the Vietnam
Paper General Co. and the Tan Mai are able to meet only 60% of demand.
The association has also proposed to the government increase domestic paper prices
while committed to maintaining these prices lower than import prices by 10% because
the current import paper prices are much higher than the domestic ones.
The association has also proposed to remove the tariff for imports of paper from ASEAN
countries, which is currently set at 5% and reduced the VAT for imports of pulp and
associated papers from 10% to 5%, and even 0% for paper for newspaper prints.
In 2008, Vietnamese paper producers are expected to produce 310,000 tons of writing
paper. But sharply growing demand will force the producers to import 110,000 tons,
double the volume of last year.
Vietnam spent $403 million on importing 509,000 tons of all kinds of paper in the first
six months of 2008, up 44.9% and 29.6%, respectively, from the same period of last year.
(The Youth July 17 p4)
Vietnam Targets $850 Mln Cashew Nut Exports in 2008
Vietnamese companies are striving to rake in between $800 million and $850 million
from exporting 150,000 tons of cashew nuts in 2008, the Vietnam Economic Times
reported.
Accordingly, the company will buy almost 50,000 tons of raw cashew nuts from local
farms, and import 150,000 tons from Indonesia, Cambodia, and Eastern African
countries.
The Vietnam Cashew Association has asked the Investment and Development Bank of
Vietnam (BIDV) to increase credit limit for its members.
Vietnam now has around 220 cashew nut processing factories.
Local companies have so far this year exported 70,000 tons of cashew nuts valued at
nearly $380 million, up 40% on year, and accounting for 40% of the world’s total cashew
nut export volume. (Vietnam Economic Times July 18 p3, The Youth p14)
Vietnam Biggest Fertilizer Producer Raises Prices

257. Phu My Fertilizer Co., the biggest fertilizer producer in Vietnam, decided to raises prices
of its fertilizer to VND8,700 a kilo from VND8,500 a kilo from July 16, the Dau Tu
(Investment) newspaper reported.
This is the eighth time since early 2008 the companies had increased the prices from
VND5,500 a kilo late 2007.
Phan Dinh Thuc, general director of the company said high fertilizer material prices
forced it to raise prices, but adding that its prices are still lower than imports, which are
around VND11,500 a kilo.
The newspaper said the VND8,700 a kilo price is at work, but local farmers have to buy
Phu My fertilizer at VND11,500-VND12,000 a kilo.
Phu My Fertilizer bought gas for only $2.2 per million of British Thermal Unit (BTU),
while the prices on the world market are from $4 to $6.5 per million of BTU.
Phu My Fertilizer Co., a PetroVietnam’s subsidiary, had promised to set the uniform
prices at a rate of 10%-15% lower than average prices at local markets.
In the first six months of this year, Phu My Fertilizer produced about 346,000 tons of
fertilizer and imported another 153,000 tonnes to meet domestic demand and to stabilize
the local market.
With a production capacity of around 750,000 tons of fertilizer per year, Phu My can
satisfy over 30% of local demand. (The Investment July 18 p2)
VND96.5 Bln Jute Area to be Set up in Mekong Delta Province
Mekong Delta Long An province authorities have approved a project costing VND96.5
billion to set up a jute area by 2015 and toward 2020, the Thoi Bao Kinh Te reported.
The project to be carried out in 13 communes of Moc Hoa and Thanh Hoa districts will
increase jute capacity from current 28.9 tons to 36.2 tons per hectare to provide 605,000
tons of jute yearly by 2015, and 700,000 tons of jute by 2020.
Almost all of jute from the area will feed the Phuong Nam Paper Mill, which was
invested by the Transport and Communication Development Investment Corporation
(Tracodi). (Vietnam Economic Times July 18 p2)
Business:
ICT in Finance Seminar to Open in Hanoi in Sept
A seminar on the use of information and communication technology (ICT) in the
financial sector will be held in Hanoi Sep 16-19, the Ministry of Finance announced on
July 17.

258. The seminar, co-organized by the ministry’s Department of Financial Informatics and
Statistics and the International Data Group (IDG) in Vietnam, will help participants share
methods and experiences in implementing ICT projects.
During the four-day seminar, participants will discuss the use of ICT in making financial
policies, basic data development and analysis.
Domestic and foreign businesses and suppliers will showcase their products, solutions
and models on ICT application at an exhibition to be held during the seminar.
Tax and customs authorities and businesses will also have a chance to review the ICT
achievements in recent years as well as discuss together future development plans, vice
head of the financial informatics and statistics department, Pham Cong Minh, said.
Almost all indexes of Vietnam in the world ICT 2008 ranking were up by 3.0 levels,
bringing the country into the middle of the ranking list, a considerable advance for
Vietnam’s ICT industry, said Deputy Chairman of the Vietnam Association for
Information Processing (VAIP), Dr Le Truong Tung.
Vietnam will be one of the leading ICT countries in Southeast Asia in the near future.
The country expects that the ICT industry will bring in $6 billion-$7 billion in revenue by
2010. (Capital Secuirty July 18 p2, Vietnam & World Economy July 18 p5)
IDG Ventures Vietnam Invests in Two Web Ventures
IDG Ventures Vietnam July 17 announced its strategic investment in Mua-Ban (Buy-
Sell) joint stock Company and Pyramid Consulting Vietnam (PyCo), Vietnam News
Agency said.
Mua-Ban is an online advertisement network with its website, www.muaban.net,
receiving more than 1 million hits a month, IDG Ventures Vietnam said, expecting its
investment will leverage the local company’s promotion strategy and help it develop its
online advertising to reach a larger number of customers.
Meanwhile, Belgium-Headquartered PyCo is expected to reach its strategic goal of
becoming a leading partner of international advertising and communications groups with
investment from the IDG Ventures Vietnam.
Vietnam’s recent economic growth, especially its IT industry’s dynamism and its
development index is in the world top rankings, Patrick McGovern, founder and
chairman of IDG, said at the license-granting ceremony.
“I believed IDG made the right choice in investing in Vietnamese companies and that its
investment would bring in fast returns,” McGovern noted.

259. The U.S.-based IDG Ventures is a global network of venture capital funds with more than
$2 billion under its management. It is also the first U.S. venture capital fund invested in
information technology in Vietnam with $100 million capital.
IDG has invested in 300 companies in Asia, including 35 IT companies in Vietnam.
By 2010, IDG plans to set up another fund capitalized at around $300 million to invest in
IT companies in Vietnam to help them become national giants and strive for international
status. (Vietnam & World Economy July 18 p6)
Vietnam Govt to Lend U.S. Dollars to Local Apparel Firms
The State Bank of Vietnam (SBV) has asked state-owned commercial banks to lend
dollars to 120 member companies of the Vietnam National Textile and Garment Group
(Vinatex) with an aim to realize this year’s export target, state media reported.
The Thanh Nien Daily newspaper said Vinatex members contributed some $1.3 billion to
Vietnam’s total $7.8 billion garment exports last year.
Access to foreign currency will help companies pay for imports of materials to maintain
production and allow Vietnam to meet its export target for this year.
The government is restricting lending of dollars to certain industries to narrow the trade
deficit and slow inflation.
Le Quoc An, chairman of the Vietnam Textile and Apparel Association said without
dollars to pay for material imports, garment and textile companies can not deliver the
products on time and they may be fined heavily. (Vietnam & World Economy Jul p5,
Thanh Nien Daily Jul 18 p6)
SOEs Incompletely Aware of WTO Impacts-Institute Survey
Many state-owned enterprises have not anticipated WTO impacts on their business
operations, a survey on 200 SOEs in big cities including Hanoi, Haiphong, Danang and
Ho Chi Minh City by the Central Institute for Economic Management (CIEM) showed
Thursday [July 17].
The institute concluded that SOEs could not play a pivotal role of the backbone of the
economy and exposed many shortcomings, the Saigon Liberation newspaper said.
Preliminary statistics showed debts of 70 state-owned corporations reached $28 billion
and accounted for 40% of Vietnam’s GDP value by end-2007. CIEM pointed out that
investment in non-core business by SOEs were blamed for shortcomings.

260. Up to 28 out of 70 surveyed state-invested companies invested up to VND23.3 trillion
into securities, banking, insurance, property in the past months. (Saigon Liberation
Online Jul 18)
Work Starts on $103-Mln Building in HCM City
Ngan Binh Construction Investment Joint Stock Company Jul 18 kicked off construction
on a high-rise building worth a total capital investment of VND1.65 trillion ($103
million) in Ho Chi Minh City, the Investment newspaper reported.
Vo The Binh, director of the company said, his firm will carry out the 8,320-hectare
project in district 1 in two phases.
The first phase will build two blocks of 444 apartments covering an area of 5,175 square-
meters, four basements and offices and trade centers for rent.
After the phase is completed late 2010, the company will start the project’s second stage,
the director said.
Cushman & Wakefield, the U.S.’s leading real estate service provider said that Ho Chi
Minh City ranks 10th among Asian countries with highest apartment rents.
The firm said that office rents in the southern city is rated 17th out of 203 locations in 58
countries in the world, which is attributed to the city’s booming economy, strong growth
in foreign investment and entry of multinationals. (Investment Jul 18 p2)
Foreign Investment:
Posco Seeking to Build $5.378 Bln Steel Complex in Central Vietnam
Posco, the world’s third largest steelmaker from South Korea, has submitted to the
Vietnamese government the feasibility study on a $5.378 billion steel complex in central
Khanh Hoa province, state media reported.
Of the total investment, $4.38 billion will be spent on a steel mill and $413 million on a
port.
The steel factory will be capable of turning out 4 million tons of hot rolled steel in the
first phase (from 2012) and its capacity will be raised to 8 million tons a year after 2016.
It will only use Posco’s most advanced technology of Finex.
Posco will employ 1.3 million workers during five years of construction. While operating
until 2016, the facility will make a production value of $5.2 billion a year on average and
create jobs for 146,000 laborers.
Posco hopes to receive approval in November 2008 to complete the construction of the
steel mill in March 2013.

261. Director of the project Chung-Myong said that Posco has chosen the Hon Gom island in
the Van Phong gulf, in Van Ninh district because of favorable conditions to develop a
port to serve transportation of raw materials to feed the factory as well as steel products.
The steel mill will use some 14 million of raw materials each year for its operation,
including more than 6.3 million tons iron ore, 5.5 million tons of coal and other materials.
In addition to the steel complex, Posco is planning to build a 1,000-MW electricity plant
in the area. However, the project has not yet detailed, said Chung-Myong.
Currently, Posco has three steel joint ventures in Vietnam, including Posvina, starting
operation from April 1992 to produce 40,000 tons of construction steel a year; VPS,
operating from January 1994 with a capacity of 200,000 tons of steel bars; and Vinapipe
running from May 1993 and capable of turning out 30,000 tons of steel pipes a year.
(Investment Jul 18 p1, Vietnam Economic Times Jul 18 p4)
Korean Firm Kicks off $15-Mln Bag Plant in Southern Vietnam
Simone Vietnam Ltd. Co., under South Korea’s Simone Co., has recently broke ground
on a high-grade suitcase and bag plant in southern Long An province, worth $15 million,
the local Investment newspaper reported Friday.
The factory, to be located at Long Hau Industrial Park (IP), has a designed capacity of
3,440,000 products a year, mainly for export to the U.S. and several countries in Asia and
Europe.
The project is scheduled for operation after eight-month construction and expected to
generate around 4,000 local laborers.
By end-2007, Long Hau IP attracted 36 projects, including seven foreign-invested
projects.
Long An, which is home to 17 IPs, has so far lured foreign-invested projects valued at
over $2.1 billion and concentrating on animal feed processing, wood processing and civil
construction. Of the total, 102 are operational while another 114 under construction.
The province is an idea destination for investors due to its advantageous location close to
Ho Chi Minh City, a long border with Cambodia, as well as the province’s significant
economic achievements in the past few years. (Investment Jul 18 p3)
Tourism:
Vietnam to Spend $1 Mln on Tourism Advertisement

262. Vietnam plans to spend VND16 billion ($970,000) advertising the image of its tourism
on international news networks in the half of the year, said Vu The Binh, Director of the
travel department of the Vietnam National Administration of Tourism.
“There should be a long-term plan for promoting publicity on international networks to
always remind tourists of the country's tourism image,” Binh added, revealing that
tourism publicity programs would be aired on famous networks such as CNN, Discovery
and those in Japan and South Korea.
“This is the first time we have got such a big budget for advertising tourism on
international television networks,” he said.
In early Oct last year Vietnam carried out its first tourism promotion program on CNN in
the Asian region. The 30-second every night spot over three months was mainly for
promoting tourist attractions like the World Heritage-listed sites of Halong Bay, Hoi An
town and Hue, as well as HCM City. The program cost $290,750, financed by the
government.
Tourism companies have seen a positive impact of this program on the sector. Increasing
publicity for the tourism sector outside the country is one of the important methods to
attract foreign visitors, they said.
However, they said, the tourism authority should focus on a long-term strategy that could
run well on limited funding.
Vietnam has five natural and cultural world heritage sites recognized by UNESCO,
including the complex of Hue monuments, Hoi An ancient town, the My Son sanctuary,
Ha Long bay, and the Phong Nha-Ke Bang National Park. It also boasts other world
intangible heritages, namely the Tay Nguyen gong culture in addition to Hue royal music.
The country welcomed more than 2.5 million foreign visitors in the first half of this year,
up 8% over the same period last year. It is looking to 4 million-4.4 million foreign
visitors and 19 million-20 million domestic tourists with total revenue reaching VND56
trillion, or $3.5 billion this year.
Currently, tourism contributes 8% to the country’s GDP value, being considered one of
the key economic sectors in Vietnam. (SGT, VietNamNet July 17)
Politics & Law:
Vietnam Communists Value Roles of Youths, Intellects, Agriculture
The Communist Party of Vietnam’s Central Committee (CPVCC) Thursday [Jul 17]
closed a 9-day plenum and issued three resolutions to highly appreciate roles of youths,
intellects and agricultural production issues, the state-run Nhan Dan (The People)
newspaper said Friday.

263. “We must devote our love, real trust, responsibility to nurturing youths, the tomorrow
owners of Vietnam, highly praise the role of the Ho Chi Minh Communist Youth Unions,
[the sole state agency for youths to join…] because hostile forces are trying to entice
local youths to spoil and mislead them,” Party Chief Nong Duc Manh, one of the most
powerful figure in communist Vietnam emphasized in his closing speech.
Manh, the leader of communists, sees intellects as firm grounds of societal progress, the
key forces of innovation and industrialization.
Agriculture, farmers and countryside issues, or Tam Nong, are interlinked, and CPV
regards it as firm bases and drivers of social, political and security stability, Manh said.
The party chief also urged to continue tightening monetary policy and adopt flexibly
tightened fiscal policy, halt non-urgent investment projects in the second half this year
with top priority to curb inflation.
Vietnam’s economy expanded 6.5% in the first half with winter-spring bumper rice
paddy crop helping strengthen macro fundamentals. (The People, Labor, Thanh Nien,
Tuoi Tre Jul 18 p1, Tien Phong Online Jul 17)
Vietnam PM Welcomes Japanese Lower House Delegation
Prime Minster Nguyen Tan Dung in Hanoi July 17 received a delegation from the
Japanese House of Representatives, led by legislator Kazou Aichi, on a working visit to
Vietnam, local media said.
The PM highly appreciated Japan’s initiative to establish the Economic Research Institute
for ASEAN and East Asia (ERIA), which contributes to boost the cooperation between
the two countries in particular and Japan-ASEAN in general.
Dung stressed his wishes for the stronger cooperation between the two parliamentarians
and governments to speed up the implementation of three large projects, including the
Hoa Lac high-tech zone, the North-South railway and highway.
He also hoped the two sides soon will sign an agreement on trade and investment.
Aichi told the host PM he was visiting Vietnam as the chairman of the Japan Friendship
Parliamentarians Union to boost the development of ERIA.
He pledged to support the promotion of three projects and the signing of the agreement to
enhance ties on economic, trade and investment.
To date, Japan has injected $9 billion in FDI in Vietnam, becoming the fourth largest
foreign investors in Vietnam, behind South Korea, Singapore and Taiwan. However, it is
the largest ODA supplier to Vietnam, with capital disbursement of roughly $5 billion.
(New Hanoi Jul 18 p1, Vietnam News p1)

264. Syria Wants to Boost Ties with Vietnam-Diplomat
Visiting Deputy Foreign Minister Faisal Makdad, special envoy of the Syrian President,
affirmed his country wants to boost relations with Vietnam and always considers the
Southeast Asian country an example in national defense and development.
Speaking at a meeting with Vice President Nguyen Thi Doan July 17, the deputy FM
highly spoke Vietnam’s role as a non-permanent member of the United Nations Security
Council and believes the country will perform its task well, further contributing to peace
and prosperity in the world.
The two sides discussed on the occasion some issues in the Middle East, emphasizing
their wishes for an early restoration of peace and stability in the region.
Vietnam and Syria established diplomatic ties in 1966. The two countries signed a trade
agreement and a protocol for exchange of goods in 1994, an agreement on economic,
cultural, scientific and technological cooperation and a program on education cooperation
in 1995. (Website of CPV Jul 17, VNA)
Labor & Education:
Vietnam Okays Setup of First Petroleum University
Vietnamese Prime Minister Nguyen Tan Dung has recently approved in principle setup of
Vietnam Petroleum University in northern Hoa Binh province, the first of its kind in the
country, state media reported, citing the government sources.
The Ministry of Education and Training (MOET) is responsible for guiding preparations
and implementation of the project.
The ministry will advise state-owned oil monopoly PetroVietnam group in personal
preparation for the hoped university and development of cooperation with local and
foreign universities.
The MOET will also be in charge of mapping out training programs, courses for different
levels and aspects upon orders and investment by PetroVietnam.
PetroVietnam will work with the ministry to dole out scholarships for gifted students and
loans for students to pursue tertiary education or conduct scientific research.
The leading petroleum group has also agreed to admit university students to work as
interns at its enterprises.
“The cooperation between the two sectors will open opportunities for gifted students to
be provided with a job with the Vietnam Oil and Gas Group,” a PetroVietnam official
said.

265. A MOET’s leader, meanwhile, said that working with industry leaders to provide
industry with specific graduates is the way forwards for the country’s tertiary education
requirements and help the educational sector overcome financial difficulties and improve
educational quality. (Labor Jul 18 p2)
Health & Environment:
Health, Trade Ministries Pledge Enough Medicines for Domestic Use
The Ministries of Health and Industry and Trade will closely coordinate with
pharmaceutical manufacturers and distributors to ensure an adequate supply of medicines
to meet the public’s demand for medical treatment, according to an agreement reached by
the two at a conference held in Hanoi July 15.
The ministries also agreed to apply financial institutions to regulate the domestic
pharmaceutical market in order to help it develop healthily in the integration process and
in line with Vietnam’s commitments to the World Trade Organization (WTO).
To deal with the soaring prices of drugs, the two will rearrange the pharmaceutical
market and control the price range and quality of drugs at wholesale and retail drug
centers in big cities from now till the end of this year.
They aim to develop chains of pharmacies and keep a close eye on the post-sale services
offered by manufacturers and dealers.
The health ministry will provide mechanisms for monitoring and dealing with hospital
pharmacies that sell low quality drugs at high prices. According to the statistics, these
stores sell 70% of the amount of drugs on the market.
With a population of 86.5 million, Vietnam has a high demand for drugs, with the
country’s per capita medicine consumption rising from $11.23 in 2001 to $13.4 in 2007.
The figure is estimated to reach $15.2 this year.
The country, however, has to import 50% of the drugs sold in the market and 90% of the
materials for pharmaceutical production, said Deputy Health Minister, Cao Minh Quang.
Therefore, it depends largely on how foreign pharmaceutical companies and distributors
can meet the growing demand for medicines, particularly special ones for serious
illnesses, he added.
The country aims to raise its drug production capacity to meet 60% of local demand by
2010 and 80% by 2015. (VOV Jul 17)
Thailand, Vietnam Co-Hold Int'l Forum on Arsenic Pollution

266. The Vietnamese Ministry of Health and the Chulabhorn Research Institute of Thailand
July 17 co-organized an international forum entitled “Strategy and Science on Arsenic
and Human Health in Vietnam: International Perspective” in Hanoi, the Gia Dinh & Xa
Hoi newspaper said Friday.
Scientists from Vietnam, the U.S., the Republic of Korea and Thailand attended the event
to discuss cooperation in mitigating water-arsenic polluted sources and protecting
mothers and children in Vietnam.
PhD Nguyen Huy Bao, head of the National Institute of Occupational and Environmental
Health (NIOEH) said that the health ministry has to date had no graph to treat arsenic-
contaminated patients.
Arsenic exposure at high level will cause intensively toxic infection and cancers, even
gene change, Bao added.
“Using arsenic-contaminated water harms health of pregnant women and children,
therefore, negative affects on the physical and psychological development of children
should be researched,” Minister of Health Nguyen Quoc Trieu said.
“We should propose measures to protect community health in Vietnam as well as the
region and the world,” Trieu noted.
The recent researches in Vietnam showed that the concentration of arsenic in
underground water in the Mekong Delta is 30Mg/liter and 150 Mg/liter in the Red River
Delta, higher than the permitted level of 10Mg/liter stipulated by the World Health
Organization and the European Commission, heard a forum, citing the MoH statistics
The UNICEF-funded project conducted by the NIOEH in northern Ha Nam and Hung
Yen provinces in 2003-2005 showed that arsenic level found in hair and urine of arsenic-
contaminated water users is high. Specifically, 70%-80% of water of drilled wells in Ha
Nam is contaminated with arsenic, exceeding the acceptable level set by the MoH.
Nearly 17 million Vietnamese (or 21.5% of population) use arsenic-contaminated water
pumped from drilled wells. (Family & Society July 18 p7, Pioneer p2, Saigon Liberation
p11, Vietnam Law p2, VNS, Capital Security p7)
15 Mln Tons of Waste Disposed in Vietnam A Year-Ministry
Vietnam is confronting 15 million tons of waste annually, including 150,000 tons of
harmful solid waste, the Department for Environment Protection under the Ministry of
Natural Resources and Environment said.
Most of solid waste was dumped from urban areas due to rapid urbanization. Hanoi and
Ho Chi Minh City are listed the worse-affected by environment pollution with a

267. combined amount of 6 million tons a year, Dr Nguyen Van Lam of the Hanoi University
of Mining and Geology said.
Dr Tran The Loan, head of the Environment Protection Department said almost urban
areas had no standardized waste treatment facilities and solid waste is land-filled and
only 16 out of 69 urban areas across the country have landfills that meet the standards.
Currently, 40 facilities nationwide are licensed to treat toxic waste but they are operating
on a small scale and need to improve their capacity.
Vietnam plans to build three factories to treat harmful solid wastes across the country.
The Asean country also planned to set aside 1% of the GDP value for environmental
protection and will double by 2010. (VNS July 17, 18, Social Insurance July 15)
Culture & Society:
Global Vietnamese Women’s Network Makes Debut
Twenty four Vietnamese women who are successful in international affairs have joined
hands in setting up a club to promote the image of Vietnamese women in the global
arena, the Labor newspaper said July 17.
Named the Global Vietnamese Women’s Network (GVWN), the club made its first debut
July 15 in Hanoi with 95 members.
The GVWN is a non-profit network that aims to connect Vietnamese women all over the
world to share knowledge and experiences in the fields of diplomacy, society, science,
art, and education, Vice Director of the NA Committee for External Relations Ton Nu
Thi Ninh, one of initiators, said.
GVWN has set to carry out social and charitable programs, organize seminars and
meetings with international missions, and assist women to access services.
We are also planning for charitable activities to support needy girls, through the “Club of
warm arms” and “Female talents” funds, Ninh said. (Labor Jul 17 p6)
Italy Adopts More Vietnamese Children
The number of Vietnamese children Italian families adopt is on the rise, a local
intermediary children adoption agency told Vietnam News Agency Friday [July 18].
In the first quarter this year, 163 Vietnam children have been adopted by local families,
tripling those last year, and Vietnam is rated the third among countries which have
children fostered in Italy so far, the agency said.

268. Vietnam is followed by Ukraine and Colombia regarding child adoption in the European
country.
Italian families are forecast to foster an additional 4,000 children from different countries
including 280 from Vietnam, up from 3,420 a year ago. (Vietnam News Agency Jul 18)
Vietnamese Police Razes Illegal Match-making Ring
An illicit match-making ring has been uncovered by Ho Chi Minh City Police’s
investigation agency (PC14), with the arrest of eleven South Korean nationals.
The city’s police found brokers and 112 Vietnamese women aged from 18 to 24 as they
raided Dieu Quyen Hotel in Ward 9, Go Vap District.
Among the Koreans were seven men, one of them a broker, and four women.
It is the biggest marriage brokerage bust in Vietnam since the beginning of 2008.
At a recent conference on marriage between Vietnamese women and foreigners, Nguyen
Thanh Tai, vice chairman of the municipal people’s committee, asked city officials to
impose strict penalties on illegal marriage brokerage.
Last year, the southern hub’s police detected six illegal match-making cases for South
Korean men.
Statistics from South Korea showed the there were more than 10,000 Vietnamese brides
in the country last year, up 74% from the previous year.
With a view to reducing divorces and suicide cases due to spousal violence, South
Korean authorities in mid-June launched a crackdown on illegal matchmaking. (Thanh
Nien Daily Jul 18 p3, New Ha Noi p8)
Stock Market:
Thai Investors Seeks Opportunities in Vietnam’s Stock Market
Thai investors of BFIT Securities Public Company Limited and Thomson Reuters Group
arrived Vietnam July 17 to seek investment opportunities in the country's stock market,
the Thoi Bao Kinh Te reported.
On the occasion, Ban Viet Securities Co. held a conference “Vietnam and Investment
Opportunities” to help introduce the overview of Vietnam's economy to Thai investors.
The local stock broker also made a guide on procedures to open securities trading
accounts for individual and institutional investors.

269. The Vietnam's stock market has lost 46% of its value since the start of this year, and this
is a good time for investors to return to the market, Ban Viet said.
The market has been bullish since early July thanks to investors' improved confidence
and belief in the government's inflation-curbing measures in the remaining months of
2008, the newspaper said.
Ban Viet also informed Thai investors of Vietnam seafood enterprises as it said seafood
is a potential sector that may bring huge profit to securities players.
In the first half, foreign investors pumped $600 million in Vietnamese stock market.
(Vietnam Economic Times Jul 18 p12, Vietnam Panorama)
PVFC Prepares to List on Singapore Stock Market
The PetroVietnam Finance Corporation (PVFC), an affiliate of Vietnam Oil and Gas
Group, announced Thursday that it would set up a representative office in Singapore and
list its shares on the country's stock exchange in the second half of 2008.
In the first half, PVFC posted a pretax profit of VND198 billion ($12.4 million) an on-
year rise of 37.7%. on revenues of VND1.77 trillion ($110.6 million).
The company's provision fund for securities and credit risks was worth VND986 billion
($61.6 million) as the end of June. Its total assets reached VND40.6 trillion.
In the period, the finance company had total outstanding loans of VND16.4 trillion, rising
104% against the late last year, and total deposit of VND29.7 trillion.
Currently, Morgan Stanley International Holding Inc is holding a 10% stake in PVFC,
becoming the first foreign strategic partner in the firm before it launches the IPO. PVFC
targets to become a leading financial group in Vietnam by 2015.
Vietnam Dairy Products Company (Vinamilk) also said that it would list in Singapore
within this year, selling 5% of its registered capital overseas. (Vietnam Economic Times
Jul 18 p11)
Mirae Plans to List on S.Korea Stock Market
Mirae Joint Stock Company, known as Mirae Fiber Vietnam (KMR), plans to float its
shares on the South Korea's KOSDAQ stock exchange in the period of 2008-2009 in
order to develop its trademark and access the wide capital tool in the country.
The plan is included in Mirae's development project in the 2008 - 2009 period announced
by the Ho Chi Minh Stock Exchange.

270. With the listing overseas, the Binh Duong-based fiber maker expects to have chance to
expand its production and business plans in South Korea.
KMR will kick of the construction of cotton-wool plank and padding onlay plant in
Danang and Cambodia by this year-end.
The VND132.9-billion company netted a profit of VND20.8 billion and revenues of
VND131.1 billion in 2007, which are targeted at VND30 billion and VND170.5 billion
this year.
In the first quarter of 2008, Mirae earned a net profit of VND2.7 billion on revenues of
VND21.5 billion, and reached total assets of VND231.8 billion.
Since the first trading session June 30 on the HOSE, KMR shares have seen no gains,
down from VND48,000 on June 30 to VND34,800 each today [July 18]. (Securities
Investment Jul 17, Labor Jul 16)
Techcombank Fund Management Co Licensed
The State Securities Commission (SSC) said Wednesday that it gave in-principle
approval to Vietnam Technological & Commercial Joint Stock Bank (Techcombank) to
set up a fund management company, the Vietnam Economic Times reported.
Techcombank is required to prepare technical facilities and human resources for the new
company.
Earlier this month, the Hanoi-based lender also received a green light to establish its own
stock broker. The securities and fund management subsidiaries will have initial registered
capital of VND300 billion and VND40 billion, respectively, Techcombank General
Director Nguyen Duc Vinh said.
The Hong Kong and Shanghai Banking Corp (HSBC), the strategic foreign partner
holding a 15% stake in Techcombank, may participate in setting up the two offshoots, he
noted.
At present, Vietnam has 87 securities and 30 fund management companies, majority of
them were set up from late 2006 to early 2007. (Vietnam Economic Times Jul 18 p10)
Jul 18: Vietnam Shares End Down on Profit Taking
Vietnam's shares ended lower Friday as retail investors sold to take profit after seeing
shares gained average 21% since the beginning of July.
“Local retailers have decided to realize their profits with anticipation about some
correction sessions, after shares have risen all the sessions so far this month, except for
one,” a trader at Saigon Securities said.

271. The key index nearing the 500 resistance level prompted many investors to sell, he added.
“While big players continue to buy, retail investors are waiting for clearer bullish
signals.”
The primary trend will be decided late this month when many companies release their
financial results for second quarter, he said.
VN-Index today fell 6.78 points, or 1.38%, at 483.05.
Market volume was 25.9 million shares Friday, the second biggest figure so far, valued at
VND1.03 trillion, up from 12.9 million shares valued at VND458.6 billion Thursday.
STB, the most active stock, closed flat at VND29,600 on 5.8 million shares changing
hand.
DPM, the second most active stock, fell 2.5% at VND59,000 on 4.5 million shares,
including 1.8 million shares bought and 535,560 shares sold by foreigners.
HPG went up 1.9% at VND53,500 on 1.9 million shares, including 408,940 shares
bought and 400 shares sold by foreign investors.
VTO lost 2.6% at VND18,500 on a trade of 1.4 million shares. Foreign players bought
226,520 shares and sold 184,010 shares.
TCT is the most advancer, rising 3% at VND86,000 on 35,910 shares.
VKP, the biggest loser, fell 5.7% at VND24,800 on ex-dividend date.
In total, 119 stocks ended lower, 24 higher and 8 unchanged.
All four fund certificates closed lower. (HOSE July 18)
Vietnam News
July 17, 2008
Inter-bank Forex Rate: $1=VND16,502
Banking & Finance:
Standard Chartered: Vietnam Economy Recovering
Vietnam’s economy is gathering a momentum to recover with trade deficit and inflation
forecast to fall, Standard Chartered Bank said in a new report on Vietnam.

272. The country will attain GDP growth of 6.4% in the fourth quarter of 2008, bringing the
full year economic growth to 6.7%, the British bank forecast.
Vietnam will see inflation rise 23% at the end of this year.
The VND/USD exchange rate is predicted to stand at between 17,000 and 17,500 in the
fourth quarter and base interest rate at 18% per annum.
Standard Chartered said the global prices of foods and oil will be key factors influencing
Vietnam’s inflation picture. Therefore, maintaining tight monetary policy will be the top
priority in the action agenda of Vietnam’s central bank.
The tight monetary policy is also expected to lower demand of imports and the
devaluation of Vietnam dong against the U.S dollar will help reduce trade deficit.
With net foreign currency reserves of $20.7 billion, equivalent to 2.7-month import value,
the devaluation of Vietnam dong cannot happen, the bank said.
Standard Chartered suggested that Vietnam should continue to implement the same
policy to end the worst period of trade deficit and inflation.
Vietnam’s CPI in June escalated 26.9% from one year ago and the six-month trade deficit
hit $16.9 billion, according to the General Statistics Office. (Banking Times Jul 17 p2)
HSBC Okayed for Dual Currency Deposit Services
The State Bank of Vietnam (SBV) has permitted the Hong Kong-Shanghai Banking
Corporation (HSBC) to launch dual currency deposit (DCD) services to the Vietnamese
market, the Thoi Bao Kinh Te newspaper reported July 17.
It is a derivative which combines a market deposit with a currency option to provide a
higher yield than that available for a standard deposit, the paper said.
The Hanoi and Ho Chi Minh branches of the HSBC will offer customers with DCD in
two foreign currencies.
The SBV has also encouraged commercial banks and financial businesses to apply
additional services, thus reducing risks of the fluctuation of exchange rates, and diversify
banking products so as to develop the monetary market.
HSBC has been rated as the foreign bank in Vietnam by FinanceAsia, Asia’s leading
banking-finance publisher. This is the third consecutive year HSBC has won such a ward,
after 2006 and 2007. (Vietnam Economic Times Jul 17 p2)
Vietnam Allows Banks, Borrowers to Negotiate Lending Rates

273. The State Bank of Vietnam (SBV) July 15 issued a regulation guiding the applying of
interest rates pursuant to the Decision No.16/2008/QD-NHNN dated May 16, 2008, the
SBV website announced.
Under the Document No.6399/NHNN-CSTT, the floating lending rate must be negotiated
in credit contracts signed from May 19, 2008 when the above decision took effect. Credit
institutions must fix lending rates for customers at the time of signing credit contracts
under the decision.
As for credit contracts signed before May 19, 2008, floating lending rate must not exceed
the maximum lending rate ruled in the decision.
Credit institutions and borrowers are allowed to negotiate to adjust lending rate recorded
in credit contracts in line with Clause 4 of Civil Law and Decision 16. (www.sbv.gov.vn
Jul 16)
Interest Rates for Overdue Loans Limited below 150% Lending Rate
The State Bank of Vietnam on July 16 issued a document, asking credit organizations not
to apply interest rates for overdue loans above 150% of the lending rate signed with the
customers.
On the same day, the central bank asked the state-owned commercial banks and
Vietcombank to arrange foreign currency loans for Vinatex in accordant with credit limit
pledged for the apparel group. (SBV Jul 16, VietnamNet Jul 17)
Personal Income Tax Registration to Be Completed by Dec 31
Vietnamese taxation offices will have to complete registering personal income tax (PIT)
for the high income earners subjected to the PIT Law prior to December 31, 2008,
according to a circular issued by the Prime Minister.
The Ministry of Finance is asked to coordinate with the Ministry of Interior and the
Government Office to establish the central committee for implementing the PIT Law in
July and chairmen of provinces and cities to set up their own local committees in August.
The PM also asked the Ministry of Finance to work with the central bank to take
measures to manage individual incomes from investment activities and from transfer of
capital and securities.
The Ministry of Labor, War Invalids and Social Affairs has to oversee and inspect the
payment of salary and wage for laborers.
Other ministries and agencies are required to supervise income from transactions of
property, houses and other business activities.

274. The State Bank of Vietnam needs to boost non-cash payment systems and payment via
banks and credit organizations.
Vietnam will start to apply the same personal income tax for the Vietnamese’s and
foreigners from January 1, 2009, under which those earners of a minimum income of
VND5 million ($310) a month will pay a 5% tax. (Chinhphu Jul 16)
ABBank, French Insurer Co-Launch Risk Insurance Product
Vietnamese lender ABBank and French life insurer Prevoir launched the comprehensive
risk insurance service based on Prevoir Vietnam's products from July early.
The program is applied on corporate accounts.
Key officials of businesses that have average balance of over VND100 million a month at
ABBank will be presented Previor Vietnam's comprehensive risk insurance product with
the insurance value of up to VND50 million for each member aged 18-59.
Insured clients will also receive a fee of VND400,000 a day for medical treatment if they
face risks.
In addition, with new accounts, ABBank exempts all trading fees on customers' payment
deposits in first three months. (Economy & Urban Jul 17, Vietnam Economic Times Jul
16)
Trade:
Vietnam Spends $5.8 Bln on Imports from China in Jan-Apr
Vietnam reportedly imported $5.8 billion worth of commodities from China in the first
four months of this year, according to the Ministry of Industry and Trade’s website.
The money mainly spent on buying steel products of $1.3 billion, machines, equipment
and spare part of $1.2 billion, and cloth of $433.3 million.
The website did not give on-year comparison figure and the country’s export value
during the period.
Crude oil, coal, computers, electronics and spare parts, cashew nut, seafood, and
vegetables and fruit are Vietnam’s export staples.
Vietnam always incurs trade deficit with China, which reached $2.81 billion in 2005 and
$3.8 billion in 2006.
In 2007, the two-way trade posted at $15.8 billion, surpassing far from the target of $15
billion by 2010. (Xinhua Jul 17, Vinanet, Vietpan)

275. Vietnam Boosting Exports to Hungary
The Vietnam Chamber of Commerce and Industry (VCCI) and the Asian Center July 15
co-organized a seminar on the Hungarian market in Hanoi in order to help local
businesses increase their exports to the Eastern European country.
The event highlighted business opportunities, advantages and disadvantages Vietnamese
entrepreneurs might see while getting involved in the market.
Hungary is now attracting a large number of foreign investors thanks to its simplified
administrative procedures and its convenient location on the commercial route that
connects Asia-Pacific and Europe, said Asian Centre Managing Director Jancso Janos.
Vietnam’s major exports to Hungary include coffee, tea, pepper, rice, footwear, garments
and food materials.
Vietnam and Hungary established diplomatic ties February 3, 1950. The two-trade
however, is very modest, nearly $100 million in 2007. (VNA Jul 16, Vietpan)
Consumer Goods Account for only 6% of Vietnam’s Imports
Value of Vietnam’s consumer goods accounted for only 6% of the country’s total imports
in the first half this year, a senior government official said Thursday.
The Vietnamese imported consumer goods, ranging from needles to luxury cars and even
an airplane, valued at $1.8 billion between January and June, out of total imports of $30
billion, said Chairman Nguyen Duc Kien of the National Assembly’s Economy and
Budget Committee.
“Vietnam is a member of the World Trade Organization and we must respect the demand
for consumer goods of the people, and that figure ($1.8 billion) wasn’t very big for the
goods which our people bought,” Kien told Thoi bao Kinh te newspaper.
Kien said Vietnam had trade deficits, which were at $14.78 billion in the first half this
year, because the country had to bring in huge quantities of machinery needed for the
investment development.
“For example, we have to import equipment valued at $600 million for the Ca Mau
power-fertilizer project which is necessary,” Kien noted.
Vietnam’s total bills for machinery imports rose 45.4% on year in the first six months this
year to $6.96 billion, according to government statistics.
Kien added that if the Vietnamese agree to reduce their spending, the government of
Vietnam would reduce importing consumer goods in the next two years to save hard
currencies for other investment purposes.

276. Vietnam targets total exports of $61.2 billion and imports of $80.2 billion this year,
leaving a deficit of $19 billion, compared with a deficit of $12.44 billion. (Vietnam
Economic Times Online Jul 15)
Vietnam Building Early Warning System for Anti-dumping Cases
The Competition Management Department under Vietnam’s Ministry of Industry and
Trade is building the early warning system for anti-dumping cases against Vietnamese
exports, aiming to prevent possible lawsuits and reduce negative impacts of these,
Vietnam News Agency said Thursday.
The system will maintain supervision and warning mechanism at the country’s major
markets like the EU and the U.S., serving for market supervision and forecast changes in
law systems and institutions and high risks of Vietnamese exports in the markets.
It will also give analysis, estimation and measures to prevent and deal with anti-dumping
cases.
Late last month, the VCCI made debut the Anti-dumping Consulting Council (TRC), the
first of its kind so far, in order to help local associations and businesses deal with high
risks anti-dumping lawsuits in the country’s post-WTO period.
From 1995 to 2005, WTO members pursued 2,840 anti-dumping cases, of which 1,804
(63.52%) were proven legitimate and subject to anti-dumping measures, according to the
Ministry of Industry and Trade. And 2,602 products were cited for price dumping during
the period.
Since 1995, Vietnam has faced 31 anti-dumping cases and five safeguarded ones. The
country has so far lost most of these cases. (Vietnam & World Economy Jul 17 p1,
Vietpan)
135 Chinese Firms to Join Machinery Exhibition in HCMC
Some 135 leading Chinese enterprises in a number of industries will take part in the fifth
China Machinery 2008 exhibition (Chinamac) in Ho Chi Minh City July 23-26, the
Ministry of Industry and Trade reported.
The Chinese firms joining Chinamac in Ho Chi Minh City this time is aimed to seek
investment opportunities, partners and importers in Vietnam.
The participants will showcase equipment in metal manufacturing, packaging, food
processing, farming machines, printing and paper industries as well as equipment for
environmental cleaning.
Chinamac is China’s biggest special exhibition in Vietnam.

277. The exhibition is jointly organized by the Vietnam Fair and Advertisement Company, the
Vietnam Association of Mechanical Industry, the Ho Chi Minh City Industry
Department, the China Council for International Trade Promotion and some Chinese
companies. (Vietnam & World Economy Jul 16 p4)
Industry:
Vietsovpetro May Produce 7.5 Mln Tons of Crude Oil This Year
Vietnam-Russia Oil and Gas Joint Venture (Vietsovpetro) is predicted to produce 7.52
million tons of crude oil this year, the Newspaper of Industry and Trade reported July 17.
Vietsovpetro’s crude oil output may decrease by 100,000 tons-800,000 tons in 2008 due
to severe weather hindering production and maintenance at some oil tankers, a company
source said.
The company produced up to 8.7 million tons of crude oil in 2007, surpassing 3.57% of
the year’s target.
Meanwhile, PetroVietnam Exploration Production Corporation was requested to produce
8.6 million tons of crude oil this year but is capable of producing only 7.9 million tons of
crude oil.
Vietsovpetro and PVEP’s outputs are expected to help state-owned oil monopoly
PetroVietnam group fulfill its targets of producing 16 million tons of crude oil this year.
(Newspaper of Industry & Trade Jul 17 p5)
EVN Apologizes to Clients for Consecutive Blackouts
General Director of the state-owned Electricity of Vietnam Group (EVN), Pham Le
Thanh, Wednesday [Jul 16] apologized to its clients nationwide for recent consecutive
blackouts, state media reported.
This move follows a recent request made by the Ministry of Industry and Trade that EVN
has to collaborate with the Electricity Regulatory Authority of Vietnam (ERAV), the
Department of Energy and the Vietnam Television (VTV) to clarify EVN’s power supply
competence so as to help people nationwide more understand about power generation and
production situations.
Thanh attributed to power cuts to the country's rising electricity demand while new power
sources have not yet been operated, a series of power plants are under breakdowns, and
low water levels of southern hydroelectricity lakes are hindering power generation.
Vietnam is estimated to lack between 2,000 MW and 2,500 MW of power daily in July
and the power shortfall will prolong until August, the EVN leader said.

278. Regarding Vietnam’s power supply situation, Pham Manh Thang, director of ERAV said
the national electricity system’s total designed capacity hits 15,500 MW if excluding
some current plants undergoing breakdowns, the figure reaches 14,500 MW.
Thang, however, affirmed that the available capacity of the system is estimated at
between 11,000 MW and 11,500 MW due to some unclear reasons while the national
power demand peaks at between 12,500 MW and 13,500 MW, causing power shortfall.
To ease the situation, Thang emphasized that EVN is responsible for mapping out a
detailed power cutting timetable and announce in advance to its clients to encourage them
use diesel-fueled dynamos instead.
Recently, EVN was requested to focus investment on power projects at the expense of
non-power ones to ease capital pressure of commercial banks and ensure better power
supply for the whole nation.
The Ministry of Industry and Trade has also decided to establish an interdisciplinary
inspection team to securitize power supply by EVN. (Vietnam & World Economy Jul 17
p7, Saigon Liberation Jul 17 p1, News Jul 17 p6, Labor Jul 17 p1)
Japan Wants to Help Vietnam Develop Supporting Industry
Japan wants to help Vietnam in developing its supporting industry, said Sakaba Mitsuo,
Japanese Ambassador during his meeting with Vietnamese Minister of Industry and
Trade Vu Huy Hoang July 14 in Hanoi.
The ambassador expressed his want that Vietnam considered Japan as a supplier of skills
and advanced manufacturing technologies to its supporting industry.
“Japan strongly awaits Vietnam’s cooperation, firstly Deputy Prime Minister Hoang
Trung Hai and following Minister of Industry and Trade Vu Huy Hoang,” the guest said.
Mr. Sakaba Mitsuo hopes Vietnam will take the initiative in applying knowledge, skills
and technologies of Japan.
Japan has much experience in encouraging and investing to develop supportive industry
in ASEAN4 countries by many different technical and financial programs. Meanwhile,
Vietnam’s supporting industry remains weak, still much dependent on imports.
“Becoming a reliable partner of Japan is of importance to the development of Vietnam’s
supporting industry,” said Mr. Sakaba Mitsuo.
Meanwhile, Vietnamese Minister Vu Huy Hoang said “developing the supporting
industry has become urgent to Vietnam. Vietnam needs specific projects and programs
from Japan to help develop its supportive industry.”

279. The minister said assembling bases in Vietnam annually import a large volume of
components and spare parts.
Minister Hoang asked the Japanese Ambassador to pay attention to assistance to the
development of Vietnam’s supporting industry. (Cong Thuong Online Jul 15)
Vietnam: Cement Demand to Soar in Q4
Vietnam’s cement demand is forecast to rise sharply in the fourth quarter this year,
especially in the two biggest cities Hanoi and Ho Chi Minh City, the Vietnam National
Cement Corporation (VNCC) said.
The corporation has asked its plants to repair equipment and machines in the third quarter
to ensure smooth operations in the fourth quarter.
VNCC said it will supply some 5 million tons of cement to the market in the fourth
quarter.
The corporation also predicted the national cement demand will be around 19 million-20
million tons in the second half, of which, it will provide 8 million-9 million tons.
The Ministry of Construction forecast that the national demand for cement this year will
increase by between 10% and 14% compared to last year.
Vietnam’s total cement output is estimated to reach 40 million tons this year as 11
cement plants are set to go on stream in 2008. (Capital Security Jul 17 p6, New Hanoi Jul
17 p3)
Vinashin Affiliate Delivers 22,500-Ton Ship to Vinalines
Bach Dang Shipbuilding Co, an affiliate of the Vinashin Business Group, July 16
delivered a 22,500-ton cargo ship to the Vietnam Shipping Lines Corp (Vinalines)’s
Vietnam Petroleum Transport JSC, state media said.
The cargo freighter, Diamond, is the fifth under a contract to build 18 ships inked
between the two companies, each worth around $20 million, according to the local Labor
newspaper.
The vessel, which is 153.2 meter long, 26 meter wide and 13.7 meter high, can travel at
14.5 nautical miles per hour.
On the same day, another Vinashin’s member, Ben Kien Shipbuilding Co., launched a
9,200-ton container vessel, which is the first among six ships that the firm will build for
the Netherlands’ Seatrium Co.

280. Vinashin has gained total revenues of VND8.7 trillion ($543.7 million) in the first six
months of this year, up 82.7% on-year, said a company official. (Labor Jul 17 p7)
Agriculture:
Vietnam Raises Rice Export Floor Prices
The Vietnam Food Association announced that this week it will raise export floor prices
of 5% broken rice by 4.2%, making export prices of Vietnamese rice are more expensive
than Thai, the Vietnam News Agency reported.
Accordingly, export prices of 5% Vietnamese broken rice will be traded at $750 a ton,
FOB, up from $720 a ton a week earlier.
Rice delivery will be carried out within July and August 2008.
Currently, the National Rice Export Management Team decides rice exports in Vietnam.
The Association said Vietnam exported 116,000 tons of rice in the first 11 days of July,
raising the country’s total rice export volume to 2.42 million tons so far this year, up
1.3% on year.
Vietnam has planned to export 4.5 million tons of rice in 2008, equal to last year.
Last week, Thailand sold 100% white rice for $725 a ton, up from $720 a ton from
pervious week. (Vietnam & World Economy July 17 p19)
Vietnam Expects $1.2 Bln Catfish Export Revenues in 2008
Vietnam may rake in $1.2 billion from exporting 500,000 tons of tra and basa catfish this
year, the Vietnam News agency reported, citing an official of the Vietnam Association of
Seafood Exporters and Producers (VASEP).
VASEP Vice Chairman Ngo Phuoc Hau said consumption of large-sized catfish in the
Mekong Delta region is optimistic thanks to high processing capacity of local factories.
Can Tho and An Giang factories with total capacity of between 1,200 and 1,800 tons of
fish a day will use almost all of the fish material, Hau said, adding that the factories
account for nearly 80% of total fish volume.
In an effort to stabilize the market, the VASEP has asked the government to provide an
additional VND3,500 billion to the Bank for Investment and Development of Vietnam so
that catfish processors can borrow loans to buy oversized fish.
It has also asked the electricity sector to supply enough power for the enterprises to
operate at full capacity.

281. In the long term, the Ministry of Agriculture and Rural Development will re-plan
breeding zones to keep pace with the market development. The ministry will tighten
control over processing and exporting enterprises to prevent trade frauds and anti-
dumping lawsuits.
Vietnamese companies have so far this year obtained $610 million from exporting
260,000 tons of tra and basa catfish.
Last year, the companies earned nearly $1 billion from the catfish exports. (Vietnam &
World Economy July 17 p7)
MARD Launches Paddy Diseases Fighting Month
Minister of Agriculture and Rural Development Cao Duc Phat July 16 directed Mekong
Delta provinces to launch a month fighting against brown planthoppers and stunt-leave
disease on paddy, starting from July 16 to August 16.
The Mekong Delta provinces will join hands in curbing the diseases in order to ensure
bumper summer-autumn, autumn-winter and winter-spring crops.
The direction by the minister is also under the Prime Minister Nguyen Tan Dung’s
instruction urging local authorities to curb pest infestations which are spreading in the
Mekong Delta, the Vietnam’s granary.
Mekong Delta provinces will also focus on destroying brown planthoppers on paddy by
using pesticide, destroying paddy seriously crunched out by the pest insects and
tightening control over pesticide quality.
According to the Plant Protection Department, brown planthoppers have damaged nearly
220,000 hectares of paddy in southern provinces, including 192,000 hectares of summer-
autumn crop. Meanwhile, more than 2,500 hectares are getting stun-leave disease.
The department warned that total paddy area affected by pest insects and stunt-leave
disease will increase if localities are not determined in curbing them. (The People July 17
p8, Vietnam Agriculture July 17 p1)
Porcine Disease Spreading to 12 Provinces in Vietnam
Blue-ear disease among pigs-Porcine Reproductive and Respiratory Syndrome-has
broken out in northern Hai Duong province and returned in central Quang Nam province,
bringing total number of provinces affected by the disease to 12, local media reported.
The Voices of Vietnam said the veterinarians in Hai Duong province affirmed July 16
that samples taken from sick pigs in Tan Viet and Quyet Thang villages in Thanh Ha
district tested positive to PRRS.

282. Head of the Veterinary Department Dong Van Chuc said that after infected pigs were
detected at two farms July 14, the department has coordinated with the local authorities to
check all the pigs in the two villages and ask them not to sell sick pigs on the market.
Meanwhile, the disease has returned in central Quang Nam province, affecting 27 pigs in
12 households in Vinh Quan village, Binh Trung commune, Thang Binh district. Almost
all of the diseased pigs were destroyed.
Minister of Agriculture and Rural Development Cao Duc Phat July 15 ordered provinces
affected by the disease to support farmers whose pigs had been culled, and to ensure that
carcasses were safety disposed of.
He said temporary check-points must also be set up to control the transport of pigs in and
out of affected areas.
Phat said pigs must not be slaughtered for consumption in areas where blue-ear disease
had broken out to prevent contaminated meat entering the food chain.
Twelve provinces affected by the disease include Bac Lieu, Vinh Long, Soc Trang, Ba
Ria Vung Tau, Phu Yen, Binh Dinh, Thua Thien Hue, Lao Cai, Quang Ninh, Quang Tri
province worst-hit with some 4,000 pigs in 18 communes in Hai Lang and Trieu Phuong
districts being infected.
Meanwhile, Long An veterinary department said bird flu has recurred in the province as
sample taken from dead chickens in Tan Lan commune, Can Duoc district, tested positive
to the H5N1 virus on July 12.
These chickens were said to have been vaccinated. The district was worst-hit by bird flu
in May. The disease now remains in Tra Vinh province. (Pioneer July 17 p3, People p2,
Young People p2, People’s Police p5)
Business:
SMEs Optimistic about Vietnam Economic Growth Prospects-HSBC
Vietnamese small and medium enterprises are listed among 3,000 SMEs in ten Asia-
Pacific countries with optimism about the country’s economic growth prospects this year,
Hong Kong & Shanghai Banking Corp (HSBC) said in its report released July 16.
Up to 67% of 300 SMEs in Vietnam said they strongly believed in the current economic
growth rate or at higher pace, HSBC’s report noted.
As many as 54% of the 300 Vietnamese SMEs said they will expand their investment and
41% of them said they will keep investment plans unchanged from now till the end of the
year, the report added.

283. After surveying SMEs in Hong Kong, China, Taiwan, Bangledesh, Singapore, India,
Vietnam, South Korea, Malaysia and Indonesia, HSBC said SMEs in India are most-
optimistic, followed by China and Taiwan and the other extreme are South Korean SMEs
due to political and social unrests.
In terms of employment recruitment, 74% of Asia-Pacific SMEs said they planned to
keep current manpower meanwhile a considerable number of SMEs in Vietnam said they
will employ more workers.
Assessing the HSBC’s report on Vietnam’s situation, Huynh Buu Quang, director of
HSBC’s financial enterprise services department said “Vietnam’s economy the tough
time in the first half this year with high inflation and hefty trade deficit, forex market
risks,” reminding “local SMEs should be more vigilant.”
Vietnam now has 260,000 non-state companies totaling VND600 trillion. The figure is
forecast to jump to 500,000 non-state firms by 2010. (Vietnam Economic Times Jul 17
p6, Vietpan Database)
Vietnam Ranks 17th Worldwide in Terms of Internet Users
Vietnam now ranks 17th among top 20 nations worldwide in terms of Internet users, the
Ministry of Information and Communications has announced.
Internet service was officially permitted to be supplied in Vietnam Nov 19, 1997. By the
end of 2005, Vietnam exceeded the Asia average level of Internet subscribers (8.4%) and
in March, 2007 the country also exceeded the world average level (16.9% of the
population).
At present, 23.5% of the population or about 20 million people in Vietnam use Internet.
The current rate is forecast to rise to 35% in 2010. (People’s Police July 17 p11, Vietnam
Panorama)
Foreign Investment:
U.K. Businesses Interested in Vietnamese Market
A large number of U.K. investors said at an investment forum held in London July 15
that they are keen on securities, finance and real estate business in Vietnam, Vietnam
News Agency reported.
PricewaterhouseCoopers Vietnam Senior Partner Ian Lydall said his company has
received various requests for consultancy on the Vietnamese market, noting that it is the
right time to invest in the Southeast Asian country.

284. Harvey Nash offshore software services CEO Paul Smith said at the meeting that his firm
is operating well in Vietnam and it will expand its investment and activities in the
country.
At the forum, representatives from foreign economic groups that are operating in
Vietnam, including Viet Dragon Fund Management (VDFM), property developer CB
Richard Ellis Vietnam and PricewaterhouseCoopers, talked of the vast opportunities in
the emerging economy.
Vietnamese Ambassador to the U.K. Tran Quang Hoan introduced the country’s
investment potentials and opportunities as well as incentive policies to the participants.
The U.K. is one of the biggest EU investors in Vietnam with over 100 projects valued at
some $1.9 billion, mostly in notably in financial services and oil and gas sector,
according to local Vietnam Investment Review.
In 2007, bilateral trade stood at $1.8 billion, including Vietnam's trade surplus of $1.5
billion. (Vietnam News Jul 16, Vietpan Database)
Taiwanese Group Opens $25 Mln Dry Battery Plant in Southern Vietnam
Taiwan’s CSB Battery Group July 16 commissioned a dry battery plant with total
investment of $25 million in southern Dong Nai province, state media reported.
The new facility, located in Nhon Trach 3 Industrial Park, has a capacity of 18 million
units a year.
Main product from CSB Battery Vietnam is dry battery to be used in telecommunication
and civil industrial sectors with lifespan of between 5 and 20 years.
All products produced by the plant will be shipped abroad with a turnover expected at
$100 in the first year of operation. The export value is set to grow between 20% and 30%
in the following years.
CSB Battery Vietnam is the first dry battery producer in the country and will employ 500
laborers. (Youth Jul 17 p14, Young People Jul 17 p2, Vietnam Economic Times Jul 17
p4, Saigon Liberation Jul 17 p1)
Vietnam, S.Korea Joint Venture Start $32-Mln Property Project
A joint venture between three Vietnamese companies and one South Korean firm recently
broke ground on a $32-million apartment, office and building tower in Ho Chi Minh City
$32 million, the Saigon Time Daily reported July 15.

285. The Vietnamese side including Dai Ha Tech Corp, Beta Company and A41 Enterprise
contributed 60% of the joint venture’s total capital, while the remaining rate is held by
the South Korean partner, Vina-Thang Long Co.
The investors will build the 14-storey Thang Long Tower building on a 7,000-square
meter site at Tan Binh district.
The project will house 22,000 square-meters for offices for lease, 10,000 square meters
for retail and entertainment area and the rest for apartments.
The tower, near Tan Son Nhat International Airport, is slated for operation after 14-
month construction.
According to a report from Cushman & Wakefield, Ho Chi Minh City ranks the 10th
among Asian countries with highest apartment rents.
The report also said that office rents in the southern city stands at the 17th out of 203
locations in 58 countries in the world.
The demand for office space has been escalating alongside the city’s booming economy,
strong growth in foreign investment and entry of multinationals. (Saigon Times Daily Jul
15 p2)
Israeli Billionaire Eyes Seven-star Hotel in Vietnam Capital
President of Israeli Elad Group, Issac Tshuva, has expressed his desire to build a seven-
star hotel in Hanoi, the first of its kind in Vietnam, state media has said.
“The future facility will be named among most luxurious hotels in the world,” Issac
Tshuva said while meeting with Vietnam Construction Minister and Israeli Ambassador
to Vietnam Effie Ben Matityau on July 15.
The hotel will be home to a conference hall, an advanced building complex and other
facilities which satisfy international standards, the visiting guest said, adding that the
model has been carried out in Singapore.
The Vietnamese official, in response, pledged to create favorable conditions for the
business if the project is done in the country.
Vietnam is now home to 8,556 hotels with 170,551 rooms. Of them, there are 25 five-
star, 65 four-star, 141 three-star hotels and the remaining are 1-2 star hotels.
The country needs to build more three to five-star hotels to serve six million international
visitors by 2010. (VNA July 17, Vietnam Panorama)

286. Infrastructure:
WB to Help Upgrade Highway in Northern Vietnam
The World Bank and the government of Vietnam kicked off a VND480 billion ($29
million) project to upgrade a section of the National Highway 21B July 16, the Vietnam
News Agency said Wednesday.
Under the project, the 32.9 km Lac Quan-Thinh Long section in Hai Chau district,
northern Nam Dinh province will be improved.
The 57 km Highway 21B is the transport artery linking Nam Dinh city to coastal and
southern districts of the province.
The bank recently said that it will provide $1.2 billion for Vietnam to implement 13
different projects in the next fiscal year. (Vietnam News Agency July 17)
Politics & Law:
Vietnam PM Authorizes Special Agency to Beef up Administrative Reform
Vietnamese Prime Minister Nguyen Tan Dung has just okayed to made debut a
government advisory council on administrative reform, in line with efforts to boost
governance effectiveness, state media reported Thursday.
The government sees bureaucratic procedures as main hurdles among three bottlenecks
hampering the Asean country’s economic growth.
The council will include 15 members representing different foreign and domestic
institutions and businesses to deal with cumbersome practices which are hurting local
businesses and people.
Tran Du Lich, head of Ho Chi Minh City Economic Institute told the Thoi Bao Kinh Te
newspaper that debut of the council is regarded a breakthrough in the ongoing reforms
because it has mandate to directly report cumbersome administrative hurdles by state
agencies to the prime minister for timely solutions.
Addressing the debuting ceremony, the U.S. Ambassador Michael W.Michalak said that
setting up of the council proves far-reaching leadership of the government of Vietnam for
the sake of business community and locals.
The U.S. government will provide technical assistances to the local government, Michael
Michalak pledged.
The government inspectors had discovered wrongdoings valued at VND1.74 trillion
including embezzlement of VND251.6 billion in the first half via nearly 3,000 probes.
(Vietnam Economic Times Online Jul 17, People’s Army Online Jul 16, Vietpan
Database)

287. Vietnam, Laos Plan to Upgrade Border Landmark System
The Vietnamese Foreign Ministry’s National Border Committee kicked off a three-day
conference on the implementation of a master plan to add and upgrade border landmarks
between Vietnam and Laos July 16 in central province of Quang Tri.
Leaders of ten localities bordering Laos, including northern mountainous provinces of
Dien Bien and Son La, central highlands province of Kon Tum and central provinces of
Thanh Hoa, Nghe An, Ha Tinh, Quang Binh, Quang Tri, Thua Thien-Hue and Quang
Nam, will be introduced with the plan and steps for its implementation.
Vietnam and Laos have basically completed the border demarcation and landmark
plantation on their 2,067 km common border line in the period of 1978-1987.
Later, the two neighboring nations decided to plant more and upgrade border landmarks
in order to make the borderline management and protection more effectively.
The two sides expect to plant 59 landmarks from now to the end of 2008. (Website of
Government Jul 16)
New Maker Thickens Vietnam-Cambodia Border
Authorities of Vietnam’s southern Tay Ninh province and Cambodia’s Kampong Cham
province inaugurated the construction of their shared border marker July 15, Vietnam
News Agency said Thursday.
The marker No. 131 was the first to be installed along the two countries’ border this year
and the third built in Tay Ninh province.
Thirty-five more border makers are scheduled to be planted on the border running
through the province by the end of this year.
The provincial border demarcation steering board also said by 2012, Tay Ninh will house
a total of 108 border markers in accordance with the plan agreed by the two governments.
Vietnam has ten provinces bordering with Cambodia.
The two-way trade between Vietnam and Cambodia represented the significant figure of
nearly $1.2 billion last year.
Cross-border trade contributed almost to the two countries' total trade turnover,
representing an annual growth of 30.8%. (VNA Jul 15)

288. Labor & Education:
500 Workers at Footwear Co Go on Strike in HCMC
Nearly 500 workers at Ho Chi Minh City-based Footwear Imex Co went on strike July 16
for pay rises and working shift reduction, the Nguoi Lao Dong (Laborer) newspaper said.
Those workers said they had to work an additional 4 hours a day, including Sunday and
became exhausted, however, they received a VND1.5 million pay, the paper said.
They will resume working until leaders of the company pledge to raise pays and improve
living conditions for them, the paper added.
Vietnam has reported more than 300 strikes since the beginning of the year due to soaring
inflation with a notably recent strike involving 10,000 workers in Ho Chi Minh City.
The government of Vietnam has issued a decree to ban illegal strikers to compensate to
their employers for losses. (Laborer Online Jul 17, Vietpan Database)
Health & Environment:
Central Vietnam to Carry out WB-funded $210 Mln Environmental Project
Central Danang city will conduct a $210 million project to deal with environmental
pollution to achieve the target of “Developing Danang into an Environment City”, the
Thoi Bao Kinh Te newspaper said Thursday.
Of the sum, the World Bank will account for $150 million, Chairman of the city People's
Committee, Tran Van Minh, July 16 told the mass media.
The project is scheduled to be carried out in the next five years with aims to focus on
building wastewater systems on river and sea banks.
Under the project, the 30 hectare wastewater treatment station in Hoa Xuan will be built,
as well as equipments of the waste treating station of Ngu Hanh Son will be installed in
addition to dredging the Phu Loc polluted river.
The WB sent its experts to Vietnam to joint with the city authorities to map out the
scheme and will submit it to the government for approval in the coming time. (Vietnam
Economic Times July 17 p3, Labor July 17 p2)
Hanoi to Move All Heavy Polluters by 2010
The capital city of Hanoi is required to move all heavy polluters, mostly alcohol, garment
and textiles makers and establishments using harmful chemicals, from the inner city to
the outskirts by 2010, the Vietnam News Agency said, citing the Ministry of Natural
Resources and Environment.

289. The city authorities are asked to assign the Natural Resources and Environment
Department to build a scheme to completely solve the problem by 2015, the agency said.
The department’s latest statistics showed that eight of sixteen heavy polluters that needed
to be treated over the past five years have been fully treated and the remainders are
actively carrying out the treatment, the agency said.
The city’s relevant agencies have completed listing polluters and their levels of harmful
effect.
In early July, the department set up a sub-department for environmental protection to
carry out researches and forecast of environmental risks in the city.
The environment in the city is being polluted by different factors with heavy metals
accounting for 46.9% of lands polluters and organic substances making up 46.7% of air
polluters and water environment pollution accounts for 41.2% of the biologically oxygen
demand.
Dust content in the city's air is 2-3 times higher than the acceptable level, 5-7 times in the
main streets and 20-30 times in the construction works.
Up to 43% of Vietnamese suffered chronic respiratory diseases and dust was considered
as one of main reasons of the diseases, the Ministry of Health said.
Hanoi and Ho Chi Minh City are listed among cities in Vietnam, which are hardest-
affected by environment pollution, according to a recent survey conducted by the World
Bank in 10 biggest cities in Vietnam. (VNA July 17, HCMC Law July)
Culture & Society:
Vietnam Increases Precursor Chemicals Control
Ministers of Police, Industry and Trade July 16 cooperated with the UN Office on Drugs
and Crime (UNODC) to organize a seminar on the control of illicit production and
trafficking of safrole, a precursor for manufacturing of ecstasy, local media said.
The Ho Chi Minh City-based seminar focused discussions on building a strategy plant to
prevent the leakage of precursor chemicals in the chemical industry.
Vietnam, along with Laos and Cambodia, has been identified as the origin of safrole,
which can be used to manufacture spice and cosmetics, according to surveys conducted
by UNODC.
In the first six months of this year, the country saw over 300 firms operating in the
precursor export-import field.

290. Wong Hoy Yuen, coordinator of the East Asia Project on precursor chemicals under the
UN Office on Drug and Crime (UNODC) told the workshop the chemical manufacturing
industry should help fight the production and trafficking of safrole.
In 2007, Vietnam confiscated 7,500 kg of precursor and 5,750 grams of ephedrine.
Earlier this year, Vietnamese police found amphetamine-type stimulants in Haiphong,
seizing seven kilos of precursors and 14.37 kilos of ATS (amphetamine,
methamphetamine, and ecstasy) drugs. (Labor Jul 17 p7, Vietnam News p3)
Stock Market:
Privatized Firms Proposed to List Shares on Bourses-Analysts
Enterprises that have already carried out their initial public offerings (IPOs) are suggested
to quickly list shares on the stock market which is showing signs of recovery, analysts
said.
The government should encourage privatized enterprises to float their shares on the
exchange, the Ho Chi Minh City Economic University securities analyst Le Dat Chi said.
Chi suggested IPOs of state-owned companies should be speeded up by conducting the
IPO and the floatation at the same time.
Truong Duy Khiem, an official from HCMC-based ACB Securities Company, said many
firms were less interested in listing on the exchange as they are afraid of their share prices
being affected by the market slump this year. However, a stock market with diverse
securities would attract more domestic and foreign investors, he noted.
“Shareholders will benefit more when a company floats on the market,” Nguyen Le
Hung, an experienced investor at HCMC’s Saigon Securities Inc (SSI) said, noting that
the information on the firms' operations will become more available because of the
transparency regulations once listing.
Hong, another HCMC trader, who bought 1,500 shares in the IPO of the Bank for
Foreign Trade of Vietnam (Vietcombank), hoped the bank would list on the exchange as
soon as possible.
The bank had earlier planned to list shares on the country's main exchange in June, but it
delayed the domestic listing until the third quarter of the year.
The VN-Index rose for a eighth consecutive sessions to approach nearly 500-point
benchmark today [July 17].
As the end of June, the index was down 56.6% over the beginning of the year. With the
rally since early July, the key index was pushed up, but still down 46.8% from the first
trading session of 2008. (Young People Jul 17)

291. FPT Reports Revenues of $525.8 Mln in H1
The Financing and Promoting Technology Group (FPT) has announced its total revenues
of VND8.67 trillion ($525.8 million) in the first half of 2008, an on-year increase of
47.1%, state media said.
With the result, the group is still taking the lead in the domestic telecoms market.
FPT obtained a pretax profit of VND631 billion in the first half this year, up 24.63% on
year, and earning per share was VND4,185.
In addition to setting up affiliates in France and Malaysia, FPT continues leading in
supplying IT products and services in the domestic market, FPT Deputy General Director
Bui Quang Ngoc said.
The group will continue focusing on information technology, telecoms services and
software in the future, he added.
To cope with the financial fluctuations over the past years and to maintain its sustainable
development, the group plans to axe 10% of the staff and 20% of expenditures for
operation in some subsidiaries that have been affected by the crisis.
It also plans to stop issuing shares from now to the end of 2008.
FPT aims to attain profit of VND1.4 trillion ($90.68 million) for the entire year on
revenues of VND18.4 trillion ($1.15 billion). (Vietnam Economic Times July 17 p3,
VNA July 16, Vietnam Panorama)
Vietnam Leading Brewery Post VND247.2 Bln Pretax Profit in H1
Vietnam’s second-biggest brewery by the market share-Hanoi Beer and Beverage
Company-said it made a pretax profit of VND247.2 billion ($14.98 million), an on-year
drop of 91% on revenues of VND1.711 trillion, up 23.5%, the Thoi Bao Kinh Te
newspaper said Thursday.
The profit accounted for 52.3% of the company’s year target and revenues represented
VND42.4% of the year’s target set by Habeco.
Habeco had produced 161.8 million liters of beer, accounting for 40% of the year’s
target, and 8.6 million liters of alcohol, fulfilling 54.6% of the year’s target.
Currently, Carlsberg Vietnam, the strategic partner, is holding a 16% stake in Habeco
after buying an additional 5.77% of unsold shares in Habeco’s IPO in March.

292. Habeco sold only 4.4 million shares out of 34.77 million shares offered in its IPO with
VND50,000 each.
The Vietnamese beer maker plans to scale up its registered capital to VND3 trillion –
VND3.5 trillion from current VND2.3 trillion ($143.8 million) by selling shares to
public. (Vietnam Economic Times Jul 17, Vietpan Database)
BBT Workers to Go on Strike Friday
Up to 500 workers of the listed Bach Tuyet Cotton Joint Stock Company (BBT) will go
on strike this Friday to urge the firm's management board to find measures to save the
company from bankruptcy, the state media said.
Workers said that all manufacturing operation of the firm has been suspended from July
12 due to the lack of capital to buy material. They will have no salary if the situation is
not improved.
All the workers will go on strike to ask the state shareholder in BBT, Gia Dinh Textile &
Garment Co., to approve the plan to issue shares to strategic partners to raise fund for the
production.
In the annual shareholders' meeting Monday, the plan to issue 8.16 million shares was not
passed due to the objection of Gia Dinh Co.
Currently, BBT is in debt of VND34 billion, plus a short-term bank loan of VND15
billion, which must be settled in Aug and Sep, otherwise its assets will be liquidated by
the bank.
BBT has suffered loss in the past two years and even in the first half of 2008.
Representatives of the 500 workers Tuesday sent an announcement on the strike to BBT's
boards of directors, the city's department of labor, war invalids and social affairs, and the
HCM City Labor Union.
The document was also sent to Gia Dinh Co., the state holder of a 30% stake in BBT.
(Vietnam Economic Times Jul 17, Saigon Liberation Jul 17, Saigon Times Daily Jul 16
p4)
Jul 17: Vietnam Shares End Up on Good H1 Result Hopes
Vietnam's shares closed higher Thursday for the 8th straight day on local players buying
in blue chips on hopes that companies will release solid financial statements for the first
half soon.

293. “Investors continued to buy after some large-scaled companies, such as Vinamilk,
Sacombank and FPT, report goods results for the first six months despite difficulties
caused by escalating inflation in the period,” a trader with Habubank Securities said.
“The three-week gain is also consolidating investor confidence in the sustainable
recovery of the market,” he said.
“Along with strong foreign purchasing power, I think bllish market will be a key trend in
near term,” he predicted.
VN-Index today gained 3.3 points, or 0.68%, at 489.83. It rose 22.6% since beginning of
July.
Market volume totaled 12.9 million shares valued at VND458.6 billion Thursday, down
from the new record high of 33.5 million shares valued at VND1.2 billion Wednesday.
PPC, the most active stock today, rose 1.9% at VND32,500 on 815,750 shares, including
98,890 shares bought and 5,780 shares sold by foreign investors.
DPM, the second most active stock, rallied up 2.5% at VND60,500 on 739,010 shares,
including 187,290 shares bought and 32,590 shares sold by foreigners.
FPT closed up 2.3% at VND66,500 on 93,730 shares, with foreigners buying 3,240
shares and selling 35,050 shares. It has reported the first-half profit up 24% at VND631
billion.
In the downside, SAM fell 2.8% at VND27,600 on 628,880 shares, of which foreign
investors bought 9,700 shares and sold 130,470 shares.
VNM lost 2.5% at VND117,000 on 231,120 shares, including 18,850 shares bought and
109,730 shares sold by foreigners.
In total, 81 stocks ended higher, 62 lower and 9 unchanged.
Among four fund certificates, three closed higher and one lower. (HOSE July 17)
Vietnam News
July 16, 2008
Inter-bank Forex Rate: $1=VND16,504
Economic Indicators:
Vietnam’s CPI Estimated at 24% This Year: Conference
Vietnam’s consumer price index (CPI) will rise between 23% and 24% this year, Ngo Tri
Long, former deputy head of the Price and Market Research Institute, under the Finance

294. Ministry, forecast at the conference on price and market management to curb inflation
July 15.
To combat inflation, the government should take measures to fight speculation, improve
distribution systems, boost national reserves of food, foodstuff and energy, and closely
supervise prices in global markets to adjust import and export taxes on time, Long said.
According to the General Statistics Office, the CPI rocketed 18.44% in June from the end
of 2007.
The Ministry of Finance has said it will freeze prices of 32 essential items to curb
inflation, of which 14 items will be put under the state control and 18 items will directly
fixed by the government. (New Hanoi Jul 15 p2)
Banking & Finance:
Vietnam to Freeze Prices of 32 Essential Items to Curb Inflation
The Vietnamese Ministry of Finance is working on a consumer prices-regulating circular
to freeze prices of 32 essential items in an effort to curb soaring inflation, the Lao Dong
(Labor) newspaper said Wednesday.
Under the circular, of 32 items, 14 essential goods will be put under the state control and
the remaining 18 items will directly fixed by the government, the paper said.
The government of Vietnam will stabilize the consumer prices by balancing supply and
demand, buying items for reserves, and adopting other financial measures.
The CPI index rocketed 26.8% in June from a year ago.
Le Xuan Nghia, a leading economist, head of the SBV’s Banking Development Strategy
told a meeting July 15 that at the macro level, Vietnam’s economy has signs of revival,
but at the micro level, local businesses are facing challenges, particularly the property
companies.
“Difficulties will last from now to early 2009,” Nghia said. (Labor Jul 16 p3, Vietpan
Database)
FinanceAsia Rates HSBC as Best Foreign Bank in Vietnam
FinanceAsia, Asia’s leading banking-finance publisher, has recognized Hong Kong &
Shanghai Banking Corp (HSBC) as the best foreign bank in Vietnam in its Country
Awards for Achievement 2008.
This is the third consecutive year HSBC has won such a ward, after 2006 and 2007.

295. FinanceAsia honed HSBC for its financial power, operational results, network,
acquisition, number of employees and customers, transactions and evaluation from
customers.
HSBC is the first foreign bank to increase stake ownership in a local bank, Techcombank,
to 15% in July 2007. In September 2007, it bought a 10% stake in Bao Viet Group,
Vietnam’s leading insurance firm.
In March 2008, HSBC is one of few foreign banks allowed in-principle to establish a
wholly owned foreign affiliate bank in Vietnam.
The bank also introduced credit cards in Vietnam in the month, becoming the first foreign
bank with chip cards in the country. It is the biggest owner of ATMs in Vietnam with
more than 82 ATMs in the country now.
HSBC has had its ATM network linked with 230 ATMs of the partner Techcombank
from May 2008.
In June, HSBC launched a 1,650 square-meter branch at Pacific Place in Hanoi. (Vietnam
Economic Times Jul 16 p4)
Saigon-Hanoi Bank Invests in Core Banking System
Saigon Hanoi Joint Stock Commercial Bank (SHB) on July 14 offered a tender package
of "Core Banking system" in order to improve its operation capacity, Vietnam News
Agency said.
Contractors including FPT-Iflex Information System Ltd Co, Polaris Software Lab Ltd
Co and Temenos-Hipt Co. have joined the tender, the paper said.
The move by SHB is under a plan to make the bank to become a modern multipurpose
retailer forwards to be a financial group by 2015.
Applying the core banking will help SHB have a modern technology foundation to
diversify its products and services and meet the large transactions of a spreading network
of branches and transaction sites.
SHB has targeted a pretax profit of VND650 billion ($40.5 million) and double its total
equity to VND25 trillion ($1.6 billion) in 2008. (Vietnam & World Economy Jul 15 p5)
Japanese Insurer Daiichi Collects Premiums Via Post Offices
The Daiichi Life Vietnam, a subsidiary of Daiichi Life Insurance of Japan, has started
collecting premiums through the network of Vietnam Postal Savings Service Company
(VSPC).

296. A document to this effect was signed by representatives of Daiichi Life Vietnam and
VSPC on July 15 in HCM City.
Under the agreement, customers of Daiichi Life Vietnam can pay premiums through
postal savings agents at free of charge.
Dai-ichi Life is the second largest life insurance company in Japan and one of the top
players in the global life insurance industry.
The insurer entered Vietnam in January 2007 and now has an investment capital of $72
million. (Young People Jul 16 p7, Vietnam Economic Times Jul 16 p9)
SeABank H1 Profit up 30% at $16 Mln
The Southeast Asia Bank (SeABank) said Tuesday it made a pretax profit of VND130
billion in the second quarter, bringing the first-half accumulation to VND258 billion ($16
million), a growth of 30% on year.
SeABank targets the full year profit at VND852 billion.
As the end of June, the bank’s assets totaled VND19.6 billion, total deposits VND13.9
trillion (up 32% on year) and outstanding loans VND11.2 trillion (up 129% on year).
The bank has doubled the registered capital to VND3 trillion and plans to increase the
capital to VND5 trillion by the end of 2008.
SeABank opened an additional two branches and 14 transaction offices in the first half,
bringing total number of offices to 60. It targets to expand network to 85 offices by late
2008.
SeABank targets total assets to VND40 trillion, deposits to VND35 trillion and
outstanding loans to VND27 trillion and to curb overdue debts at below 0.5% by late this
year. (Vietnam Economic Times Jul 16 p3)
Gold Prices Strongly Rise in Vietnam
Gold prices July 15 surged by VND200,000 to reach VND19.4 million ($1,147)/tael in
Vietnam, representing on-year rise of 20.8% and marking a record high over the past
three months, state media reported.
The gold dealers Bao Tin Minh Chau Jewelry Co in Hanoi and Saigon Jewelry in HCM
City reported that a large number of clients sold their gold on the same day in a bid to
cash in on the high prices.
The number of sellers was about twice that of buyers of gold.

297. SJC late July 16 listed buy/sell prices at VND19.2 million/VND19.35 million
($1,136/$1,144)/tael in Hanoi and HCM City, up 0.9% from the previous days.
Bao Tin Minh Chau, meanwhile, quoted prices at VND19.27 million-VND19.40 million
($1,140-$1,148)/tael against VND19.05 million-VND19.40 million a day earlier.
At noon yesterday, gold prices reached VND19.45 million-VND19.49 million per tael.
The increase of local gold prices is really pegging on changes in the global oil prices
which are riding high due to the political tension amongst the U.S., Israel, and Iran, said
the head of SJC Hanoi Luu Quang Dien.
Another reason is an increase in demand for gold during festive seasons in many Asian
countries like China and India from September onwards, he added.
Domestic gold prices in March set a record high of VND19.98 million per tael and the
prices are likely to surpass that high if there is no improvement in the global political
strife, Dien said. (Young People Jul 16 p2, People Jul 16 p1)
Trade:
Vietnam Imports Forecast to Reduce to $80.2 Bln This Year-Ministry
Vietnam imports are forecast to rise 31% on year to $80.2 billion this year, lower than the
previous target of $85.7 set by the government, the Ministry of Industry and Trade is
cited by state media as saying Wednesday.
Of the total, the value of essential goods including finished steel, petroleum products,
machinery and spare parts, metal, fertilizer and paper pulp will likely reach $63 billion,
up 28.4% from a year ago, but down $4.2 billion compared with the year’s estimates,
Vietnam News Agency said.
The value of imports to be under the state control such as fabrication steel and iron
products, coke coal, petrochemicals products, gemstones, gold, silver and diamond is
predicted to slow down to $12.9 billion, compared with the year’s estimated $14.4
billion, but up 32.9% on year, the agency said.
The Asean country is predicted to import $4.25 billion worth of cigarette materials,
consumer goods, finished automobiles, and motorbike spare parts this year, an on year
rise of 9.5%, but down $800 million compared with the year’s estimate.
The government of Vietnam is targeting to reduce the hefty trade deficit, hitting $14.77
billion in the first six months this year, to cut 10% of public investment and 25% of g-
bonds invested projects to tame the soaring inflation.

298. The government is also aiming to post total exports value of $61.2 billion, up 26% from a
year ago, and trade deficit to below $20 billion this year. (Vietnam News Agency Jul 16
p2, Tien Phong Jul 16 p13)
Industry:
Vietnam, IAEA Boost Int’l Cooperation in Nuclear Energy
Vietnam and the International Atomic Energy Agency (IAEA) have recently vowed to
foster their cooperation in the nuclear energy industry, said the Vietnamese Ministry of
Science and Technology.
The content was mentioned during a recent seminar so-called "Periodical Inspection over
Safety of Nuclear Reaction Piles", which was jointly held in Hanoi by the Vietnam
Agency for Radiation and Nuclear Safety & Control and IAEA, the state-run Nhan Dan
[People] newspaper reported.
Experts from China, Indonesia, Japan, Korea, Malaysia, Thailand and Vietnam attended
gathering.
The seminar focused on guides for reaction pile safety, periodical inspection over safety
of piles under research, check and assess safety documents, and systems responding to
breakdowns at the piles.
Vietnam plans to build two nuclear power plants with a combined capacity of 4,000 MW
costing $9 billion in central Ninh Thuan province under the country’s first nuclear power
project. The plants will have two turbines with a capacity of 1,000 MW each.
The country is forecast to lack 8.6 billion kWh of power this year. (People Jul 15 p7)
Vietnam to Face Severe Power Shortfall Until Aug This Year: EVN
Vietnam is forecast to continue facing severe power thirst until August this year, said
state-owned Electricity of Vietnam Group (EVN).
The total capacity of the national electricity system was estimated at nearly 10,000 MW
July 14 while power demand hit between 12,500 MW and 13,000 on that day, said EVN.
The power shortfall is attributed to long-lasting repairs at some thermal power plants
burdening hydropower facilities and the low water levels at hydropower lakes, hindering
power generation, the Youth newspaper quoted an EVN representative as saying.
Despite of EVN’s efforts to mobilize power from both thermal power and hydropower
plants, power supply meets only 70%-75% of the demand, he elaborated.

299. Due to the power thirst, the southern economic hub of Ho Chi Minh City July 14 had to
cut off 230 MW of power in local District 8, 9, 11, 12, and Tan Binh, Binh Chanh and Cu
Chi districts.
The Southern Electricity Dispatching Center (A2), however, July 15 continued asking the
municipal Power Company to slash over 350 MW or 16% of the city’s power capacity in
order to reserve power for the coming college entrance exams.
Vietnam is estimated to lack between 1,500 MW and 2,500 MW from 7:00 am to 9:00
pm daily in July this year. The figure is forecast to hit 8.6 billion kWh for the whole year
2008.
The Vietnamese Ministry of Industry and Trade has recently decided to establish an
interdisciplinary inspection team to securitize power supply by the state-owned
Electricity of Vietnam Group (EVN).
The Vietnamese government has recently asked EVN to focus investment on power
projects at the expense of non-power ones in order to ease capital pressure of commercial
banks and ensure better power supply for the nation. (Youth Jul 16 p3, Labor Jul 16 p1,
Vietpan)
Vietnam to Inspect ENV’s Power Supply
The Vietnamese Ministry of Industry and Trade has recently decided to establish an
interdisciplinary inspection team to securitize power supply by the state-owned
Electricity of Vietnam Group (EVN), said Minister Vu Huy Hoang.
The Electricity Regulatory Authority of Vietnam (ERAV) will lead the team with the
coordination of officials from the Ministry of Finance and EVN, the Labor newspaper
reported July 16.
Hoang asked EVN to collaborate with ERAV, the Department of Energy the Vietnam
Television (VTV) to clarify EVN’s power supply competence so as to help people
nationwide more understand about power generation and production situations.
To ensure power supply in the second half of this year as well as 2009's dry season, the
minister demanded EVN to speed up paces of sluggish power projects while asking the
Department of Energy to request contractors of power BOT and IPP projects to operate
them on schedule.
Regarding power price hike plan, EVN must comply with directive by Prime Minister
and price increase must be in appropriate to market circumstances.
Recently, EVN was requested to focus investment on power projects at the expense of
non-power ones in order to ease capital pressures of commercial banks and ensure better
electricity supply for the nation.

300. Vietnam is estimated to lack 8.6 billion kWh of electricity this year and 36 billion kWh in
2020 and 120 billion kWh in 2030. (Vietnam & World Economy Jul 16 p2, Labor Jul 16
p3, Vietpan)
EVN Continues being Investors of Hydropower Projects
Vietnamese Deputy Prime Minister Hoang Trung Hai has recently demanded state-owned
Electricity of Vietnam Group (EVN) to continue acting as an investor of hydropower
projects under the national electricity development plan by 2015 and span to 2025, or
Plan VI, approved by the government, state media reported.
The government official rejected the proposal by EVN and the Ministries of Industry and
Trade, and Planning and Investment to commission investor responsibility over
hydropower projects from EVN to joint stock companies, the Labor newspaper reported
July 16.
The deputy PM also approved to add 60-MW Dong Nai 6 hydropower project invested
by Duc Long Gia Lai Joint Stock Company to the Plan VI.
The Ministry of Industry and Trade is responsible for guiding preparation and appraising
the project to report to the government.
Recently, EVN was requested to focus on power projects at the expense of non-power
ones to ease capital pressures for commercial banks and ensure better power supply for
Vietnam.
Vietnam is forecast to lack 8.6 billion kWh of electricity this year and 36 billion kWh in
2020 and 120 billion kWh in 2030.
The country plans to raise the total capacity of hydropower generation projects to more
than 18,000 MW and the annual output of over 80 billion kWh by 2015. (Labor Jul 16 p3,
New Hanoi Jul 16 p1, Vietpan)
Vietnam Cement Makers Start Seeking Export Markets
Vietnamese cement producers are beginning to seek export markets as a total 38 new
cement plants are expected to operate in the next few years, Vietnam News Agency cited
Construction Minister Nguyen Hong Quan as saying Wednesday.
In the first five months this year, cement plants nationwide produced 16 million tons, just
keeping pace with demand.
The industry, however, expects supply to greatly exceed demand when the new cement
plants open.

301. The Vietnam Cement Association has asked the Vietnam Cement Corp to conduct a
survey on the best export markets for locally produced cement.
The Ministry of Construction has warned that cement supply has already surpassed
demand in China and in other ASEAN countries.
Earlier, the ministry forecast that the national demand for cement would increase this
year by between 10% and 14% compared to last year.
Vietnam’s total cement output is estimated to reach 40 million tons this year as 11
cement plants are set to go on stream in 2008.
Another 17 plants are scheduled to commission in 2009, bringing the country’s capacity
to more than 60 million tons, surpassing the domestic demand by at least 10 million tons.
By 2010, another 18 plants with a combined capacity of 14 million tons will be
operational.
The ministry has asked the Government to invest in construction of roads so that the
cement can be easily transported from the north to the south.
Southern Vietnam accounts for 40% of national consumption while it only produces 27%
of the output.
In Ho Chi Minh City and southeastern provinces, demand has risen 15%. The demand in
2008, 2009 and 2010 is predicted to be 39.8 million tons, 44.6 million tons and 49.8
million tons, respectively.
The ministry has proposed that provinces and cities award no more licenses for cement
plants until 2015. (VNS Jul 16 p15)
Agriculture:
Vietnam Rubber Group Eyes to Grow Rubber, Crops in Nigeria
A delegate of Vietnam Rubber Group (VRG) will go to Nigeria next month to survey
cultivation of rubber and crops in the country, website of the Vietnam Trade Information
Center reported, citing an official from the group.
Le Quang Thung, general director of the VRG said if the survey is successful, the VRG
will set up a project and ask for the government’s permission to develop the cultivation
here.
The group will pilot a project in Nigeria, Thung said, adding that it will grow around
100,000 hectares of rubber, paddy and wheat each in 10 West African countries every
year.

302. An official from the Ministry of Agriculture and Rural Development said African
countries are now offering favorable conditions for foreign investors in agriculture.
(vinanet July 16, Saigon Liberation July 15)
MARD Asks Localities to Speed up Curbing Blue-ear Disease
Animal Health Department under the Ministry of Agriculture and Rural Development
July 15 issued new decision asking provincial services to tighten fight against Porcine
Reproductive and Respiratory Syndrome (PRRS), or blue-ear disease, website of the
department reported.
The decision No 80/2008/QD-BNN on preventing and fighting against the PRRS asked
provincial leaders to go to localities to directly instruct curbing the disease.
Currently, the PRRS is spreading to 10 provinces in Vietnam, including Bac Lieu, Vinh
Long, Soc Trang, Lao Cai, Ba Ria Vung Tau, Quang Ninh, Thua Thien Hue, Quang Tri,
Binh Dinh, and Phu Yen.
Meanwhile, foot and mouth disease is affecting animals in four provinces of Cao Bang,
Ha Tinh, Thua Thien Hue and Quang Ninh, while bird flu now remains in Mekong Delta
Tra Vinh province. (agroviet July 16, The People July 16 p8)
Fertilizer Makers Mull over Storage Facility in Mekong Delta
The Vietnam Fertilizer Association is proposing the government of Vietnam to license a
fertilizer storage facility in the Mekong Delta region, the Vietnam News Agency
reported, citing deputy chairman of the association Nguyen Hac Thuy.
Thuy said with a total investment of VND100 billion ($6.06 million), the facility will
cover 13 hectares in Can Duoc district of Long An province, and have storage capacity of
more than 200,000 tons.
It will operate under the name Five Stars, with the ownership of Five Stars International
Joint Stock Co.
The storage is scheduled to be operational by next year’s winter-spring rice crop to help
stabilize fertilizer prices by providing a consistent source, unaffected by speculation and
thereby benefiting farmers.
The project will have steady support from enterprises involved in long-term trading, said
general director of Five Stars Co Tran Van Muoi.
Five Stars is located near HCM City and eastern provinces, which trade roughly 20
million tons of commodities yearly.

303. The company plans to increase this number to around 30 million tons of fertilizer by
2020. The facility is also close to Bourbon Port, Highway 1A and Vam Co Dong River,
convenient transportation hubs.
The establishment of Five Stars under the control of the Vietnam Fertilizer Association
will ensure real and high-quality fertilizer supplies, Thuy said.
The Ministry of Agriculture and Rural Development expressed hope that Five Stars will
play an important role in ensuring the quality of fertilizer, given the present poor quality
or counterfeit nature of the product.
In addition to advocating a storage solution, the association requested that the
Government adjust fertilizer import and export taxes and improve the production of
quality NPK manure to further help stabilize the market. The production prices of
essential goods like oil, iron, steel, fertilizer, food and agricultural materials have risen
sharply.
Fertilizer prices have escalated to the highest level in the past 35 years. DAP fertilizer
prices rose by 351%-562% and potassium fertilizer by 335%-365%.
The demand for fertilizer for national agricultural production ranges between 8 and 8.3
million tons per year. The Mekong region uses around half of this amount. (VNS July 15)
VND1Tln Emergency Fund for Catfish Ineffective
The VND1 trillion emergency fund supporting Mekong Delta catfish industry is not
effective because many farmers have not yet benefited from it, local analysts said.
At the meeting in An Giang province July 15, the analysts said the VND1 trillion
(US$59.4 million) fund is aimed at helping catfish processors and exporters buy tra and
basa catfish from farmers. Both processors and exporters are struggling with decreasing
prices and oversupply.
Meanwhile, total volume of stockpiled in farmers are still high, including 26,500 tons in
An Giang, 63,000 tons in Dong Thap, and 63,000 tons in Dong Thap.
Tien Giang authorities said only VND5.6 billion ($332,600) out VND100 billon has been
loaned for catfish farmers so far.
As farmers cannot afford to continue to feed catfish, they have to sell them even before
they are fully-grown which is causing catfish prices to fall even more.
Vinh Long authorities said catfish farmers are suffering a VND1,500-VND2,000 loss per
kilogram as catfishes prices are now between VND13,500 ($0.80) and VND14,000
($0.83).

304. Meanwhile, catfish businesses, which prefer deferred payment deals with farmers instead
of borrowing money from banks, often pay farmers 30-45 days after buying catfish,
leaving breeders in further financial difficulties.
The experts said to deal with the problem, local banks should reduce lending interest rate
or local provinces should set up a fund to stabilize prices to encourage companies to
boost purchase of fish.
Mekong Delta provinces also suggested the Government to acknowledge tra and basa
catfish as national key item and then set up overall development plan for it.
Analysts also called on the Ministry of Agriculture and Rural Development to issue
standards on breeding the fish and fish quality, and cooperate closely with provinces in
calculating production cost, number of processing factories, and number of aquatic feed
plants. (The Youth July 16 p14, Young People July 15)
Business:
Vietnam PM Approves Development Plan of Northern Economic Corridor
Prime Minister Nguyen Tan Dung has approved a plan to develop the Lang Son-Hanoi-
Haiphong- Quang Ninh economic corridor by 2020 as part of a project “two corridors,
one economic belt” between Vietnam and China, Vietnam News Agency reported.
Under the plan, the economic corridor’s GDP growth is aimed to increase by 1.2-1.4
folds and its total import-export turnover is expected to grow 20% annually to reach
about $2 billion by 2010, $4.5 bilion-$5 billion in 2015 and over $10 billion by 2020.
Hanoi will be developed into an international capital city and a big economic hub with
100 million people in the Nanning-Lang Son-Hanoi-Haiphong economic corridor,
according to the plan.
Meanwhile, Haiphong is planned to become an important gateway port city in the
corridor, the news agency said.
A six-lane highway worth $1.4 billion will also be built from Hanoi to Huu Nghi Quan
border gate in Lang Son province.
The country will also build a highway route linking Hanoi and Haiphong. The VND19
trillion ($1.18 billion) route is slated for construction late this year and for completion in
2010.
The economic corridor will focus on the areas of trade, tourism, goods transport, forestry,
culture, sci-tech and industry. It will include international border economic zones and
markets.

305. To boost the trade liberalization along the Vietnamese-Chinese economic corridor, the
two countries will implement the pilot customs clearance model “one check” at the Huu
Nghi Quan border gate. (Vietnam News Agency Jul 15, People’s Army Jul 15 p1)
Vietnam Airlines Reports Loss of $5 Mln in Jan-Jun
The national carrier Vietnam Airlines suffered from a loss of VND83 billion (some $5
million) in the first six months of this year due to the price hike of oil, state media
reported.
Vietnam News Agency said the airline earned total revenues of VND12.1 trillion ($733
million) in the period, up 28% on year, but its expenses reached VND12.18 trillion,
causing the loss.
Vietnam Airlines bought $124.84 for a barrel of fuel ZA1 in the first half, 38% higher
than its initial estimate; therefore; the carrier had to pour an additional VND1.41 trillion
for fuel during the time.
The fuel overspending was mostly seen in May and June with VND320 billion and
VND458 billion respectively.
In the six-month span, the airline transported more than 4.43 million passengers, up 15%
on-year. Of the sum, nearly 1.8 million were foreigners, representing an on-year rise of
11%.
It also carried 63,600 tons of cargo, a 17% rise, and its seat occupancy rate rose to
75.96% from 75.4% in the whole of 2007.
To improve the situation, Vietnam Airlines will reconsider investment projects and cut
10%-20% of regular costs, the New Hanoi newspaper said.
The carrier has also adjusted flight schedule since early this year, helping to save 3,000
tons of fuel worth VND90 billion, including 2,000 tons in June.
Separately, the flag carrier, which has a capital of VND10 trillion ($625 million), is
allowed to sell between 10% and 20% of its stakes to foreign strategic investors,
according to the Labor newspaper.
The news source also added that the unlisted firm will retain 70%-80% state-owned stake
as instructed by the Government. (News Jul 16 p5, New Hanoi Jul 16)
Work on VND1.5 Tln Dong Tam Water Plant Starts in Mekong Delta
Dong Tam Joint Stock Co has recently kicked off construction of a water plant worth
VND1.5 trillion ($91 million) in the Mekong Delta province of Tien Giang, the Thoi Bao
Kinh Te newspaper said Wednesday.

306. The plant with a daily capacity of 90,000 cubic meters in Chau Thanh district will include
a 44.5 kilometer pipeline network to supply clean water to residents in Cho Gao, Go
Cong Tay and Go Cong Dong districts and Go Cong township.
The project will be constructed in 24 months and is expected to put into operation in
2010. (Vietnam Economic Times July 16 p2, VNA)
Foreign Investment:
IDG to Invest Additional $500 Mln in Vietnam by 2010
Patrick McGovern, founder and chairman of International Database Group told
Vietnamese state media Tuesday [July 15] that IDG will increase investment in Vietnam
to $600 million from current $100 million in Vietnam from now to 2010.
Of the total, IDG will inject $200 million into its IDG Venture Vietnam and use the
remaining to set up a growth fund, the Thanh Nien newspaper said.
The growth fund is expected to be operational in 2010, the IDG official said.
IDG Ventures entered Vietnam in March 2003, specializing in IT industry businesses.
In the world, IDG Ventures has invested in more than 150 projects. Some successful
affairs are Excite, F5 Networks, Netscape, Spinner.com, VA Linux, and Baidu.com.
(Thanh Nien Jul 16 p2, Vietpan Database)
Tourism:
Work on $9.4 Mln Eco-tourism Complex Starts in Vietnam Central Highlands
The Hoai Nam Ltd., Company July 14 began construction on an eco-tourism complex
worth VND150 billion ($9.4 million) in Central Highlands Lam Dong province, the Dau
Tu newspaper reported Wednesday.
To cover 150 hectares, the Da Sar Complex will be home to resorts, five-star hotels,
sports centers and other entertainment facilities.
Work on the project will be finished by 2015.
Lam Dong, 308 km from Ho Chi Minh City, has great potentials for tourism development
with a convenient climate, together with splendid landscapes and cultural resources.
The number of visitors to the province is estimated to reach 700,000-800,000 per year,
including 10% foreigners. Hotels and guest houses see a capacity of 20,000 visitors per
day. (Vietnam Economic Times July 16 p3, Investment July 16 p3)

307. Politics & Law:
Deputy PM Khiem Chairs UNSC Debates
A Vietnamese delegation, headed by Deputy Prime Minister and Minister of Foreign
Affairs Pham Gia Khiem July 15 flew to New York to chair debates at the United Nations
Security Council (UNSC).
Deputy PM Khiêm will preside over an open thematic debate on Children and Armed
Conflict (CAAC) July 17, with the presence of UN Secretary General Ban Ki-moon. The
debate will consider the report of the France-chaired Working Group.
Vietnam is the first country in Asia and the second in the world who signed the
Convention on the Rights of the Child and its Optional Protocols. The country, during the
UN and UNSC’s sessions, has always reiterated that CAAC should be discussed and
solved in the interests of children.
Khiem is also scheduled to hold some separate meetings with representatives of some
countries, UN Secretary General, UNSC President and leaders of some UN agencies,
including UNDP and ECOSOC, in order to promote bilateral and multilateral relations.
Subsequent to the UNSC’s debates, the Deputy PM is scheduled to visit Singapore July
20-24 to attend the 41st ASEAN Ministerial Meeting, the Post Ministerial Conference
(PMC) and the 15th ASEAN Regional Forum.
ASEAN foreign ministers and dialogue countries will discuss ways to build the ASEAN
community, preparations to take the ASEAN Charter into force and exchange opinions in
regional and international issues of common concern. (Capital’s Security Jul 16 p15,
HCM City Law p2)
Vietnam to Hire Foreign Professionals to Consult Marco Policies
Vietnamese Prime Minister Nguyen Tan Dung has just turned the green light in-principle
to inviting prestigious foreign experts to exchange and consult macro policies with
government agencies and businesses, the government of Vietnam said on its Web site.
Premier Nguyen also assigned the Foreign Ministry to coordinate with related agencies to
select foreign experts.
In the context of the global economic slowdown, with rocketing oil prices, and the
relatively broadened openness of the economy after one-year WTO integration, Vietnam
has been ravaged by galloping inflation jumping 26.8% in June, up from a year ago.
The Asean country saw a hefty trade deficit reached $14.77 billion in the first half this
year.

308. The government of Vietnam has lowered the GDP growth rate to 7% down from
8.5%-9% target this year. (Government’s Web site Jul 14, Vietpan Database)
Vietnam PM Gives Nod to Steering Committee for Vietnam-UN Cooperation
Prime Minister Nguyen Tan Dung has agreed to the establishment of a steering
committee on a joint plan for cooperation between the Vietnamese government and the
UN agencies until 2010.
The PM’s decision dated July 15 requires the steering committee to carry out seven
groups of tasks, including instructing relevant agencies and localities to implement the
joint plan.
The steering committee will be responsible for reviewing, supervising and assessing
implementation of the plan as well as defining necessary adjustments and demands for
human sources.
The Deputy Minister of Planning and Investment and resident coordinators of UN
agencies are co-heads of the committee.
The committee will hold a regular meeting every six months and make decisions on
issues based on mutual consensus with the co-heads of the committee making the final
decision whenever there are different points of views.
Under the joint cooperation plan, a total of non-refundable aids of $404 million will be
granted to Vietnam through 14 UN agencies, including UNDP, UNICEF, UNFPA,
UNAIDS, UNV, UNIFEM, FAO, IFAD, ILO, UNESCO, UNHABITAT, UNIDO,
UNODC and WHO. (HCM City Law Jul 16 p2, Saigon Liberation p1)
Labor & Education:
Thousands of State Employees in HCM City Quit Jobs
Around 6,500 government employees in HCM City have quitted their jobs since mid
2003 and this phenomenon may become a movement in the biggest city of Vietnam, the
Tien Phong newspaper said Tuesday.
Of the 6,500 to have quitted their jobs since mid-2003, some 698 belonged to state
management agencies, 3,034 to the education and 849 to the health care sectors.
The people who quit their jobs included high-ranking officials, and experienced experts.
Inappropriate salary policy, and discouraging working environment are major reasons for
the situation, the HCM City People’s Committee wrote in its report to the Ministry of
Home Affairs.

309. HCM City’s Vice Chairman Nguyen Thanh Tai said officials of communes and wards are
not paid properly and the average income of government staffs in general is lower than in
the labor market.
Le Hieu Dang, Vice Chairman of the HCM City Fatherland Front, said perhaps income is
not the major reason, but the working environment.
One other prominent reason for this situation is that people are changing their minds.
They no longer think working for state agencies is more stable and better than working
for others. Many young government staff said that one can still contribute to the state if
one works for private companies.
Though the HCM City People’s Committee has been aware of this matter for a year, it
has not come up with an effective remedy yet.
The HCM City Fatherland Front is preparing a report on the wave of job-quitting among
state employees and proposing that the local government adjust the salary policy and
improve the working environment at state agencies. (Pioneer July 15 p1)
Health & Environment:
Vietnam Successfully Transplants Stem Cell to Save Leukemia Patient
The National Institute of Hematology and Blood Transfusion July 15 said it has
succeeded in cloning stem cells to save a female leukemia patient from the Death, the
first Vietnamese state media said Wednesday.
The institute successfully applied a new method in the cloning stem blood donated by a
elder sister of Nguyen Thi Lan, 21, the patient, Prof-PhD Nguyen Anh Tri, director of the
institute said.
“I cannot believe that my daughter, who has a leukemia disease, is saved,” Bui Thi
Vuong, Lan’s native mother, said.
The stem blood cell transplant costs $18,000, much lower than $30,000-$100,000 in other
countries, the health authorities said.
The patient's sister, who had donated the stem cells, is in good health.
Currently, the institute has roughly 200 leukemia patients a day for treatment. (Young
People July 16 p2, People's Police p4, Saigon Liberation p1, Pioneer p1+2)
13 Vietnamese Suspected to Catch Anthrax
Thirteen Vietnamese people are suspected to contract anthrax, including one death in
Meo Vac district, northern Ha Giang province, according to a latest result of tests on

310. local food poisoning patients by the National Institute of Hygiene and Epidemiology
(NIHE).
Two of seven samples were positive to anthrax virus, the Sai Gon Giai Phong (Saigon
Liberation) newspaper said, citing the institute.
Some of locals suffered fever, skin ulcers, and pain after eating meat of the anthrax
infecting suspected cattle.
Dr Nguyen Huy Nga, head of the Health Provision and Environment Department under
the Ministry of Health (MoH) sent an urgent message to the Ha Giang Provincial Health
Department to urge urgent actions to prevent the disease.
In late June, some 420 were suffering food poisonings in the province, two of them died,
according to a local health center.
Anthrax is an acute infectious disease caused by the spore-forming bacterium Bacillus
anthracis, which highly affecting mammals, especially cattle and sheep. It is transmissible
to humans and can cause skin ulcers, pneumonia and even death. (Saigon Liberation July
16 p7, www.thanhniennews.com, www.cdc.gov, VNA)
Vietnam to Examine Motorbike Exhaust Fumes
The Ministry of Transport is planning to submit a scheme to inspect motorbike exhaust
fumes to the government for approval in October, Vietnamese state media said.
If approved, the project will be carried out from June 2009, firstly in the five major cities
of Hanoi, Ho Chi Minh City, Haiphong, Danang and Can Tho.
The Vietnam Register said that due to the large number of motorbikes available in the
country, a concrete roadmap will be mapped out with motorbikes used for more than 10
years to be checked first.
Later inspections are scheduled at one-year intervals for those in use for seven years, five
years and three years.
Motorbikes operated for less than three years will not be subject to the examination, said
the agency.
Vietnam is now home to more than 20 million automobiles and motorbikes. The figure is
predicted to increase to 24 million units by 2010. (Vietnam Economic Times Jul 15 p2,
New Hanoi Jul 15 p2)
Culture & Society:
VFF Accepts Loss to Invite Brazil Olympic Squad to Vietnam

311. The Vietnam Football Federation (VFF) will try utmost, even accepting loss, to invite the
Brazil’s Olympic squad (U23+3) to Vietnam, chairman Nguyen Trong Hy affirmed after
a meeting July 15.
Brazil Olympic is planning to have two other friendly matches with teams in Southeast
Asia to prepare for the 2008 Olympic Beijing slated for August 8-24.
Hy said that the total cost VFF must spend for the business transaction is around VND9.5
billion ($593,750), including fees of transport and accommodation.
If successful, the friendly match between Vietnam’s national soccer team and the Brazil’s
Olympic squad, including such big names as Ronaldinho, Diego and Robinho, will take
place at the My Dinh Stadium in Hanoi July 27 or August 2. Tickets are expected to be
sold for 400,000 VND each at the lowest, Hy said.
The VFF chairman revealed that the Thailand side has also sent an invitation to the
Brazilian counterpart.
However, VFF believed they would beat the Thai in the race, with the base of a
memorandum of understanding (MoU) on cooperation just signed between the two sports
ministries of Vietnam and Brazil July 10.
Many promises from authorities that the world’s well-known football teams like the
U.K.’s MU, would arrive in Vietnam for friendly matches did not come true. (VNA Jul
15, VnExpress.net Jul 16)
Crane Collapse Kills 7, Injures 1 at Cai Lan Port in Northern Vietnam
Seven workers July 15 died and one was seriously injured in a crane collapse at Cai Lan
Port in the northern Quang Ninh province, the Tin Tuc (News) newspaper said
Wednesday.
The crane was being assembled when it crashed while eight workers were working on it
at around 1:30 p.m. at port section No.7.
The seven unlucky victims are Pham Dinh Tuyen, Pham Dinh Thuy, Do Van Luan, Dinh
Xuan Huong, Le Van Tien, Phan Van Ngan and Hoang Van Tuan.
The injured worker, Mai Ngoc Thanh, was sent to Bai Chay General Hospital in Ha Long
city for emergency treatment.
All eight victims were workers of Lilama Corp's Lilama 692 Co and they were putting
together the crane for Vietnam National Shipping Lines' Falcon Co.
The collapsed container gantry crane was one of two cranes bought from China to replace
two similar cranes that had been wrecked due to whirlwinds in November, 2006.

312. Relevant agencies are investigating the cause of the accident.
Quang Ninh provincial authorities granted money to the victims' families. (News July 16
p2, People's Army p8, Vietnam Law p1, Labor p1, Youth p1, Young People p2, Pioneer
p15, Capital Security p5)
Stock Market:
Stock Market Back on Track: SBS Director
The stock market is seen on the right track as investors' confidence has been boosted by
positive economic signals in the past few weeks, said an executive of Sacombank
Securities Company (SBS) late last week.
The market was going back on track, and was changing for the better in the rest of the
year thanks to stable macroeconomic indicators, said SBS General Director Nguyen Ho
Nam in a seminar Saturday.
“Investors can see a better market in the second half of the year,” Nam told investors.
He said that the market's trading value recently had picked up substantially as investors
showed confidence in the economy, which saw the June CPI slowing down to 2.14% on
month, the lowest rate since early year. The trade deficit has shrunk to only $1.9 billion
in May and $1.3 billion in June against $3.3 billion in March.
Meanwhile, foreign direct investment (FDI) in the first half amounted to $31.6 billion.
Uncertainties on the foreign exchange market have also been settled down, with the
dollar price being stabilized in both the banking sector and the unofficial market, Nam
said.
Besides, the pressure of collateral shares has been eased in the last two weeks. "Of the
market's total trading value of VND3 trillion last week, up to VND2 trillion was worth of
collateral deals. A wave of new investors has also come back to the market due to
reasonable share prices, which will push the market up," he noted.
Between 2,000 and 3,000 new accounts have been opened at SBS and most of recent
transactions were made by new investors, including funds, local and foreign investors,
the SBS director revealed.
Government's measures have also helped restore confidence among investors recently,
and will effectively manage the market in the rest of the year, he said.
Nam also gave advice to investors who want to invest in the stock market at this time to
focus on effective listed companies such as blue-chips. (Saigon Times Daily Jul 14 p4)

313. S.Korean Investors Pump $2.7 Bln in Vietnam Shares
South Korean investors had poured total $2.7 billion in the Vietnamese stock market in
2007, out of total $4.58 billion worth of foreign direct investment (FDI) in the country,
the Vietnam News Agency said July 15 quoted the S.Korea Ministry of Finance.
Up to 70 S.Korean companies invested in infrastructure projects worth total $1.45 billion
in the Southeast country.
So far, South Korea has remained the biggest foreign investor in Vietnam, with total
investment of $15.3 billion since 1988.
In 2007, foreign investors bought $7.6 billion of Vietnam's listed shares, and up to $20
billion if their holdings in unlisted shares was counted, three times higher than the
previous year.
The foreign indirect investment in Vietnam was estimated at $600 million between
January and June of this year.
Investment funds such as Indochina Capital, PXP Asset Management Company, and
Japanese investors have also expressed their optimism on Vietnam's stock market in the
medium and long-term.
Vietnam’s stock index has increased for seventh consecutive days, closing at 486.53
today [July 16]. It is expected to rise to 900 by the end of 2008. (Vietnam Economic
Times Jul 16 p4, Vietnam Panorama)
Mekong Capital to Invest $2.6 Mln in Vietnam Golden Gate
Mekong Capital Fund Management Co has just said that July 14 that its subsidiary,
Mekong Enterprise Fund II (MEFII), has committed to invest $2.6 million into Golden
Gate Trade Service Joint Stock Company, the Mekong Capital Press Release said.
Golden Gate is operating the successful Ashima mushroom hotpot restaurant chain. This
is the 7th investment of MEFII in Vietnamese firms.
Mekong Capital will fund and support the company with strategic consultancy in various
fields that are key factors to make the firm grow sustainably in the current changing and
fiercely competitive market, CEO cum Chairman of Golden Gate Dao The Vinh said.
Chris Freund, CEO of Mekong Capital, said "In Golden Gate, we see a strong
commitment to continuously developing their management systems and capabilities of
their management teams," He believed Golden Gate will continue to open new
restaurants at a rapid rate.

314. As of June, Golden Gate has 7 Ashima restaurants in Hanoi, HCM City and Haiphong. It
will open one more restaurant in Danang soon.
MEFII, with total investment of $50 million, focus on equity investments in private firms
with good management and rapid growth to help them prepare for a successful listing on
a stock exchange.
Currently, the fund is holding stake in a consumer products company ICP, Ngo Han
Magnet Wire, thegioididong firm, Venture International, MK Smart JSC, and Mai Son
fashion retail outlet operator. (Mekong Capital Press Release, Young People Jul 15 p6,
Vietnam News Agency Jul 15)
PetroVietnam Drilling Sees Profit Double to VND500 Bln in H1
PetroVietnam Drilling and Well Services Joint Stock Company (PVD) reported that its
net profit more than doubled to VND500 billion ($31.3 million) in the first half from
VND214 billion ($13.4 million) a year ago.
The company's Chief Financial Officer Ho Ngoc Yen Phuong said the profit was
attributed to its rig's operation at full capacity.
PVD expected it would net profit of VND700 billion ($43.8 million) in the whole this
year, Phuong said.
The firm is supplying drilling services to ConocoPhillips and Petroliam Nasional Bhd.
Recently, Saigon Securities Incorporation (SSI) has sold 318,480 shares in PVD to
reduce its ownership to 0.91%.
PVD shares closed up 3% to VND104,000 each on 825,520 shares changed hands.
(Young People, ATP Jul 14)
Jul 16: Vietnam Shares Index Hits Two-month High
Vietnam's stock market index ended higher and hit the two-month Wednesday as local
investors continued to buy after state media said investors are regaining confidence in the
market outlook.
The Saigon Economic Times cited Nguyen Ho Nam, general director of Sacombank
Securities Co., as saying that stock market exposes signals of a sustainable recovery as
share have risen all the sessions since early July except for one, with increasing volume.
The real estate market is cooled down and the dollar fever ended, which is driving
investors to return to the stock market, he said.

315. Vietnam shares are very cheap with the P/E ratio averaged at 9.5 times now, much lower
than the ratio of 11.7 times in Philippines, 14 times in Thailand and 14.9 times in
Indonesia.
“These ideas have helped support local investors to buy, hoping the index will hit 500
soon,” a Hanoi-based trader said.
VN-Index today rose 6.73 points, or 1.4%, at 486.53, the highest level since May 13.
Market volume reached the new record high at 33.5 million shares valued at VND1.2
billion Wednesday, surging from 9.7 million shares valued at VND330 billion Tuesday.
STB, the most active stock today, climbed up 2.9% at VND28,800 on 6.6 million shares
changing hands.
DPM, the second most active stock, rose 2.6% at VND59,000 on 3.1 million shares,
including 966,080 shares bought and 88,470 shares sold by foreigners.
HPG closed 2% higher at VND50,500 on more than 2 million shares, of which foreign
investors bought 594,280 shares and sold 51,280 shares.
PPC gained 2.9% at VND31,900 on 1.1 million shares, including 361,630 shares bought
and 8,000 shares sold by foreigners.
ITA is the most advancer, surging 3% at VND97,000 on 68,700 shares.
In the downside, VNM fell 2.4% at VND120,000 on 64,020 shares, with foreigners
buying 6,610 shares and sold 33,400 shares.
TTP lost 2.7% at VND21,900. Of 548,080 shares traded, foreigners bought 7,200 shares
and sold 317,270 shares.
In total, 94 stocks ended higher, 82 lower and 16 unchanged.
All four fund certificates closed higher. (HOSE July 16)
Vietnam News
July 15, 2008
Inter-bank Forex Rate: $1=VND16,509
Banking & Finance:
Vietnam’s Monetary Market Cools Down

316. Vietnam’s monetary market tends to cool down recently as banks have stopped the race
to raise the deposit interest rates and reduced the lending rates.
From May 19 to early July, banks often raise their deposit rates for both Vietnam dong
and dollars. Several banks boosted the rates to 19.5%-19.8% % per annum, even 20%,
but just for some days.
At present, banks offer the interest rates popularly at 17.5%-18% per annum for Vietnam
dong deposits.
Only a few commercial banks provide high saving interest rates for VND, such as
HDBank offers the highest rate at 18.7%/year, GP Bank at 18.8%, KienLong Bank at
19% and GiaDinh Bank at 18.9%.
Meanwhile, several commercial banks lowered their deposit interest rates by between
0.2% and 0.5% per annum.
There are some reasons for the stabilization of the monetary market.
The State Bank of Vietnam has tightened measures to control operations of monetary
market such as banning collection of extra fees for loans, or asking banks with deposit
rates of over 17.5%/year to make report.
Commercial banks understand that the race to raise interest rate brings small benefits but
hurt themselves.
The state-owned Bank for Investment and Development of Vietnam (BIDV), one of the
largest banks in Vietnam, has just announced to reduce lending interest rate by 0.2% and
2% per annum, prompting other lenders to adjust their interest rates.
Consumer price index (CPI) slowing down and trade deficit narrowing indicates that the
government’s anti-inflation measures are taking effects. Meanwhile, the forex market has
become stable with prices of dollar in free markets falling significantly.
Rumors on weak liquidity of several banks ended. The liquidity of banks is also
improved thanks to the recovery of stock market.
However, lending interest rates remain high. Vietnamese banks are offering deposit
interest rates for USD at 7%-7.5% and lending rates at 10% and higher, causing
difficulties for local importers and exporters. (Vietnam Economic Times Jul 15 p5)
WB to Finance $1.2 Bln for Vietnam in Next Fiscal Year
The World Bank will fund $1.2 billion for 13 programs and projects via the International
Development Association (IDA) in the next fiscal year, Mr. Mat Aron Deraman,

317. Executive Director SEA Group of World Bank told Governor of the State Bank of
Vietnam Nguyen Van Giau Monday.
Mr. Mat Aron Deraman also informed the Vietnamese bank governor of the Asean
country’s business climate, rated 91st among 178 countries, up three ranks compared with
last year.
On the occasion, the WB official hailed measures by the government of Vietnam to curb
inflation and progress in poverty reduction.
In return, Giau highly appreciated the support and funds by the WB for Vietnam’s
socioeconomic development plans, particularly funds from The International Bank for
Reconstruction and Development (IBRD). (SBV’s Web site Jul 14)
Deposit Balance at Vietnam Central Bank Continues Rising
Deposit balance of credit institutions at the State Bank of Vietnam (SBV) has continued
to rise sharply but unfairly over the past few weeks, the Lao Dong newspaper said,
quoting SBV source.
Large commercial banks have seen their reserves surge strongly while reserves at small-
and medium-scaled lenders were mostly reported at lower-than-required level.
Due to soaring capital demand of credit institutions, the central bank said it will continue
offering valuable papers with the term of seven days and coupon rate of 15% per annum
on the open market with the volume of VND5-12 trillion per session.
The move by SBV is aimed to support credit institutions' transparency and stabilize
domestic monetary market. (Labor Jul 12 p4)
EVN Finance Co Licensed for Operation
The State Bank of Vietnam (SBV) has officially given a business license to the
Electricity of Vietnam’s Financial Joint Stock Company (EVNFC) in a move to help the
power industry better mobilize and manage its investment capital, the state media said.
EVNFC has a registered capital of VND2.5 trillion ($151 million) and is the second
largest among 14 financial companies managed by the SBV.
EVNFC’s founding shareholders include the Electricity of Vietnam (EVN), the An Binh
Joint Stock Commercial Bank (ABBank) and the Refrigeration Electrical Engineering
Corporation (REE).
In 2008, the company is expected to provide consultancy services for EVN affiliates to
issue between VND2 trillion and VND4 trillion of corporate bonds.

318. EVNFC, apart from mobilizing and managing investment capital sources, is expected to
help EVN speed up the privatization of its subsidiaries.
The electricity sector is under great financial pressure due to the country's fast pace of
development and rapidly growing hunger for energy. EVN needs VND325 trillion in the
2006-10 period to develop power grid and sources.
The privatization will help effectively raise capital for the energy sector. EVN aims to
completely privatize its affiliates including electricity generation and distribution
companies by 2008.
The EVN has so far privatized three companies and the share sales of five other factories
are currently underway. (Vietnam & World Economy Jul 14 p5, CafeF Jul 14, New
Hanoi Jul 14)
VIB Bank Posts $20 Mln Pretax Profit in H1
Vietnam International Bank (VIB Bank) made pretax profit of VND323 billion ($20
million) in the first six months of 2008, fulfilling 46.1% of the plan set for the whole
year, the bank announced July 14.
By the end of June, the bank had total assets of VND35.9 trillion ($2.2 billion), reaching
68.3% of the full year plan.
The bank’s deposits totaled VND23.2 trillion ($1.5 billion) and outstanding loans were
VND19 trillion ($1.2 billion), equal to 68.5% and 62.2% of the yearly plan, respectively.
VIB Bank has 94 branches and transaction offices so far and plans to expand the network
to 115 units by the end of this year.
This year, the bank is eyeing to make pretax profit of VND700 billion ($43.75 million)
and pay dividend at 15%. (Economic & Urban Jul 15 p4, Vietnam & World Economy Jul
15 p6, Youth Jul 15 p15)
Trade:
Vietnam Aims for $61.2 Bln Export Value This Year
The Ministry of Industry & Trade (MoIT) in coordination with relevant ministries, goods
associations and localities are taking drastic measures to attain an on-year export growth
of 26% to $61.2 billion this year, local media reported today [July 15].
The measures focus on raising added value for traditional items and those limited to
increase in volume, particularly agro-forestry-fishery products.
Initially, credit priority will be given to farmers and processors of seafood, rice, coffee,
cashew nuts, fine arts, wood and plastic products, said the ministry.

319. The MoIT has been intensifying its national program on trade promotion and calling on
foreign investors to produce goods for export.
Additionally, relevant agents have been urged to continue implementing administrative
reform in tax and customs procedures to facilitate exports, said the MoIT, adding that
services export is also being encouraged to increase the revenues in foreign currencies
and reduce trade deficit.
The ministry is urgently finalizing a plan to intensify export and curb trade deficit from
2008 to 2010 to submit to the Government for approval in the fourth quarter this year.
According to the MoIT’s forecast, Vietnam’s export staples will record strong growth in
2008.
The agro-forestry-fishery industries expect to earn $11.68 billion, making up 19.1% of
the country’s total export value.
The prices of rice, coffee, cashew nuts, pepper, rubber and seafood remain high although
they are not as high as in the first half of the year. These staples are likely to have export
volume surpassed the estimates with rice export quantity expectedly exceeding 4.5
million tons.
Due to rising crude oil and coal prices, the fuel and minerals group is expected to fetch
$13 billion, up 37% on-year, accounting for 21.2% of the country’s total.
Notably, handicrafts and industrial goods are estimated to reap $36.5 billion, up 25.3%,
representing 59.7% of the country’s sum.
Apart from the increasing number of orders and prices, textiles and garments, whose
export revenues rank second after crude oil, are facing difficulties in high production cost
due to input materials price hike.
The ministry put stress on promotion measures to ensure the group’s increase of 23% to
$9.5 billion this year.
In the first half of the year, Vietnam fetched $29.69 billion from goods shipment, an on-
year increase of 31.8%, said the General Statistics Office (GSO).
This means that Vietnam will have to earn a monthly export value of $5.25 billion in the
remaining months of this year to realize the MoIT’s export target. (Vietnam Economic
Times Jul 15 p1, News Jul 15 p2, People’s Police Jul 15 p1, Life & Law Jul 15 p2, VNS
Jul 15 p15, VNA Jul 14)
Vietnam to Apply Quota & Absolute Tax on Coal Exports

320. Deputy Prime Minister Nguyen Sinh Hung has given in-principle approval to the
Ministry of Finance’s proposal on applying quota and absolute tax on coal exports, state
media reported.
The move is aimed to further tighten control over coal exports.
The government official entrusted the Ministry of Finance to coordinate with the Ministry
of Industry and Trade and relevant agencies to work out a detailed implementation
project on the issue to submit to the prime minister for approval.
According to coal-rich Quang Ninh province’s authorities, 10 million tons of coal
illegally exported to China from Vietnam every year, causing a loss of VND4.5 trillion
($281.25 million).
In the first half this year, Vietnam shipped abroad 13.87 million tons of coal, a slip of
14.9% on year, earning $728 million, up 43.3% on year, the General Statistics Office
(GSO) reported.
The Ministry of Industry and Trade said this year it will cut coal export by 5 million tons
as compared with last year’s figure of 32.5 million tons to serve the increasing domestic
demand. (The People Jul 15 p1, Labor Jul 15 p3, Vietstock Jul 14, Vietpan)
Vietnam May Apply Automatic Licensing on Car Imports
The Vietnamese government will allow the Ministry of Industry and Trade to apply an
automatic licensing scheme on car imports to limit automobile imports and control trade
deficit, state media reported.
Under the new scheme, the ministry can stop licensing if necessary to restrain car imports
in case other measures do not bring the desired effects.
The ministry believes that the regulation, together with the import licensing scheme, will
leave no other way for more cars to arrive in Vietnam.
Current regulations on forcing car importers to pay tax before the imports get customs
clearance has helped greatly in reducing imports.
After three months of raising import tax and controlling customs clearance, the number of
cars imported in June decreased by a half over the previous month.
The high import tax rate, currently at 83%, the regulation on paying tax before customs
clearance and banks’ tightened credit have led experts to believe that there will be only
several hundred cars imported in July. (VnExpress.net Jul 14)

321. Industry:
Technip Launches 3rd Single Point Mooring at Dung Quat Oil Refinery
General contractor Technip of Vietnam's first oil refinery Dung Quat July 11 launched
the third Single Point Mooring (SPM) at the plant, the People's Army newspaper
reported.
The equipment is designed with 360 tons in weight, 10 meters in height, 12 meters in
diameter, and six solid anchors with life spans of 20 years each.
The SPM equipped with the French modern technology, which is capable of receiving oil
tankers with loading capacity of between 80 and 110,000 tons each, includes PLEM
system, undersea pipeline with over 3 kilometers in length, and two 242-meter linking
pipelines.
The facility to be fully operated in late July this year will help the oil refinery receive
6,000 cubic meters of crude oil per hour, the Laborer Online newspaper said.
The $2.5-billion oil refinery, with expected products of propylene, liquefied petroleum
gas (LPG), lead-free petrol, diesel and fuel oil, is under construction in central Quang
Ngai province and is estimated to refine 33% of the country’s entire demand for petrol
and oil once fully operational in February 2009.
PetroVietnam has recently sought permission from the prime minister to cooperate with
foreign partners to increase annual capacity of the plant to 16.5 million tons from earlier
designed 6.5 million tons. (Great Union Jul 14 p2, People's Army Jul 14 p1, Laborer
Online Jul 11)
Vietnam, U.S. Boost Apparel Cooperation
The Vietnam Textile and Garment Association (Vitas) said it signed cooperation
agreements with the Texas Cotton-growing Association and the U.S. Cotton Council, the
Sai Gon Giai Phong newspaper reported.
Accordingly, the U.S. will provide cotton and technical support for Vietnam’s textile and
garment sector.
The U.S. is now Vietnam’s biggest cotton supplier. It supplies 30% of the Asean
country’s total cotton imports.
The agreements will help Vietnam develop its apparel industry step by step.
The U.S. remained Vietnam’s largest apparel export market in the first half, with an
export turnover of $2.4 billion, accounting for 57% of the Asian country’s total export
value of the product, according to Vitas. (Liberation Saigon Jul 15 p2, Vietpan)

322. $460-Mln EPC Contract Signed for Lam Dong Bauxite-Aluminum Complex
Vietnam’s Vinacomin signed July 13 an engineering, procurement and construction
(EPC) contract for the first alumina plant under the Lam Dong bauxite-aluminum
complex with a Chinese firm, namely, Chalieco.
The EPC bidding package is the biggest of the Lam Dong bauxite-aluminum complex
project. The alumina plant, set to have an annual capacity of 600,000 tons, is worth $460
million. The construction of the plant is scheduled to be carried out in 24 months.
The signing has marked the first step in forming Vietnam’s aluminum industry, said
Doan Van Kien, chairman of the Management Board of the Vietnam Coal and Mining
Industries Group, or Vinacomin.
Kien added right after starting construction of the first alumina plant, Vinacomin will
boost talks on another EPC contract for the Nhan Co alumina plant with the same
capacity in the begging of the fourth quarter. The plant also belongs to the Lam Dong
bauxite-aluminum complex.
The EPC contract for the first alumina plant was bid publicly in accordance with
international practice. (Vietstock Jul 14)
EVN Asked to Focus on Power Projects
Vietnamese Deputy Prime Minister Hoang Trung Hai has recently demanded state-owned
Electricity of Vietnam Group (EVN) to stop investment in non-electricity sectors and to
focus capital on power projects, state media reported, citing the government sources.
The request is aimed at easing capital pressure of commercial banks and enhancing
power supply for the nation, the government official attributed.
EVN must map out appropriate policy incentives so as to operate power plants on
schedules in 2008, 2009 and 2010.
The group was asked to continue negotiations with commercial banks to reach credit
deals for Son La, Huoi Quang, Ban Chat, Uong Bi expanded 2 power projects as well as
synchronous power grids before July 18 this year.
The deputy PM also requested EVN to change capital structure of hydropower projects
by mobilizing foreign investment and to continue equitisation of its subsidiaries
The Ministry of Finance must issue a regulation on the Vietnam Bank for Investment and
Development (BIDV)’s loan worth $400 million for Son La hydropower project.

323. Meanwhile, EVN General Director Pham Le Thanh said the group has spent 3.54% or
VND1.77 billion ($107,272) out of its total equity VND50 trillion ($3.13 billion) on non-
power sectors.
EVN has contributed capital to An Binh Joint Stock Commercial Bank (ABBank), An
Binh Securities Company, and Ha Thanh Securities Company; and is mulling over setup
of EVN Finance Company (EVNFC).
Thanh said that EVN will continue its current projects, has no intention to withdraw
capital from those, and will speed up setup of EVNFC on the government’s approval.
EVN has decided to cancel 500 projects worth VND1.8 trillion ($112.5 million), making
up 4.18% of its total investment this year, to focus on key projects.
The group said it needs around VND11.86 trillion ($178.78 million) from now to
end-2008 to develop power generating and transmission line projects. (Labor Jul 15 p3,
New Hanoi Jul 15 p1)
Steelmakers Find Cash in Ingot Exports
Vietnamese steelmakers are rushing to export steel ingots while the domestic market can
only afford 40% of raw materials for manufacturing steel, the Vietnam News Agency
reported.
Shortages of steel ingots are causing difficulties for many producers. Steel ingots are
exported at $1,200-$1.300/ton, but only fetch about $1,000 per ton for construction-grade
steel on the domestic market.
The more steel they produce, the more they lose. Many steel businesses have been forced
to cut production by 20% to 30% and save their steel ingots for export.
This is the main reason why domestic steel prices are soaring. The price of construction
steel has increased to VND20 million ($1,250) per ton. It is likely to hit VND21 million
soon.
According to the industry insiders, exports of steel ingot by domestic steel producers are
blamed for the lack of raw materials and the price hikes of construction grade steel.
Local producers exported 7,200 tons of steel ingot in April and 74,000 in May. (VNA Jul
15)
Agriculture:
InnovGreen Oked to Carry out $40 Mln Afforestation Project in Central Vietnam

324. Central Quang Nam authorities have recently turned the green light to InnovGreen Corp
to establish InnovGreen One Member Co. Ltd to carry out a $40 million afforestation
project in the province, the Thanh Nien newspaper said Tuesday.
The 30,000 hectare project will be implemented in Dong Giang, Nam Giang, Tay Giang,
Phuoc Son, Que Son, Hiep Duc, Nam Tra My, Bac Tra My and Tien Phuoc districts.
Two thirds of the area will be exclusively for InnovGreen’s use, while the remaining area
will be used to grow trees jointly by the company and the province.
The raw materials from the forest would be used to make paper and wood products.
This is part of the $200 million afforestation project that InnovGreen will conduct in
Vietnam this year to cover around 300,000 hectares of bare hills in Vietnam.
Last year, the corporation expanded eucalyptus areas in northern Quang Ninh province
and some trees are now over 5 meter high. It plans to build a 40 hectare nursery to
produce 5 million saplings a year in the region.
The project was initiated by Steve Chang, who is called the “Asian Bill Gates” and
chairman of InnovGreen Corp. Ltd. and Taiwan Trend Micro Corp, one of the world’s
leading groups in developing anti-virus software. (Young People July 15 p3, Vietpan
database)
Business:
Vietnam Southern Province Licenses Five Projects worth $160 Mln
Southern Long An province July 14 licensed five projects totaling $160 million at an
investment promotion conference held here, state media said.
The largest project is Hong Phat Real Estate Company worth VND1.7 trillion ($106.2
million), followed by Thinh Phat Electric Cable and Real Estate Company and Vinafor
Tan An Ltd. Co. worth VND300 billion each.
The two remaining projects are Taiwan’s Asia Golden Industrial Ltd. Co. capitalized at
$17 million and Quyky Yanglei International Company, a $2.2-million Vietnam-U.S.
joint venture.
At the conference, the provincial authorities and the Vietnam Post and
Telecommunications Group signed a memorandum of understanding on upgrading the
telecommunication in the province.
The province also published a list of 12 projects calling for investment between 2008 and
2010 with capital of $1.6 billion at the event.

325. The locality is home to 219 foreign-invested projects valued at over $2.1 million and
concentrating on animal feed processing, wood processing and civil construction. Of the
total, 102 are operational while another 114 under construction.
Long An is an idea destination for investors due to its advantageous location close to Ho
Chi Minh City, a long border with Cambodia, as well as the province’s significant
economic achievements in the past few years, said Chairman of the People’s Committee
Duong Quoc Xuan.
Xuan said Long An targets to lure more domestic and foreign investors to become a
province with developed industry and services by 2020. (Vietnam Economic Times Jul
15 p1, Vietnam News Jul 15 p17)
Seaport Cargo Reaches Record High in Jan-Jun
The total amount of cargo transported via seaports in Vietnam in the first six months of
this year was up 40% against the same period of 2007, said Vuong Dinh Lam, director of
the Vietnam Marine Administration.
The rate represents the ever biggest amount of goods handled through sea ports so far,
Lam said.
According to the administration, sea transport still carriers 80%-90% of total Vietnam’s
export-import products despite the currently rising transportation prices.
Vietnam is now home to some 260 seaports with nine ports to be upgraded to handle
50,000 DWT cargo ships or 3,000 TEU container ships.
The Southeast-Asian country needs $5 billion to build and upgrade its seaport systems
from now to 2010, aiming to handle 250 million tons of cargo in 2010 and 550 million
tons in 2020. (Vietnam News Jul 17 p17, Vietpan Database)
Yahoo, Intel Boost Cooperation to Benefit Vietnamese
Intel and Yahoo! Southeast Asia July 10 announced a cooperation program to develop
Internet access points in Vietnam’s public places, the Thoi Bao Kinh Te reported
Monday.
Under the program, Intel will put into use 600 agents and introduce 12,000 Internet
access points and coordinate with Yahoo! to renew equipment, assist software services
based on Yahoo! foundation and other infrastructure services in the Southeast Asian
country.
Internet access points joining the program will be listed on website and connected with
owners of other Internet access points. They will also be provided with free Internet
management software.

326. Around 1,000 Internet access points, mainly in big cities, are expected to be included
implemented in the program in the first year, Yahoo! Vietnam general director Vu Minh
Tri said.
“Vietnam has a high growth rate of Internet users, our firm is expanding involvement in
the country, Tri also said, noting that the partnership helped promote the information
technology development and benefits Vietnamese users.
Intel’s survey revealed that Internet access points in Vietnam’s public places record an
average growth rate of 15%, accounting for 60% of the total users.
Vietnam currently has almost 20 million Internet users, more than six million of whom
are internet service subscribers, representing 23.5% of the country’s population. The
current rate is forecast to rise to 35% in 2010. (Vietnam Economic Times July 14 p21)
5.5 Mln Vietnam Computers Attacked by Viruses in June
More than 2,600 new computer viruses attacked around 5.5 million computers in
Vietnam last month, said Vietnam’s leading cyber security center.
Most of the viruses had originated abroad, said Nguyen Tu Quang, director of the Hanoi
University of Technology’s Bach Khoa Inter-network Security.
In particular, more than 1.2 million computers were infected with the Chinese-born W32
Kavo virus and its variants in the previous month, the BKIS Director added.
After first appearing in Vietnam in September last year, W32 Kavo now has more than
3,190 variants spreading throughout local networks, according to the center.
According to BKIS, 59 company websites were attacked by local and foreign hackers last
month.
Computers infected with the virus can be controlled by other users who can hide files on
infected computers and use their programs. BKIS had also found security holes in the
websites of 30 agencies in the telecommunications, banking and securities sectors.
Statistics from BKIS showed that, of the 6,752 viruses that appeared in Vietnam in 2007,
only 14 of them originated locally.
Last year, about 90,000 computers in Vietnam were infected with a virus each day,
causing the country’s computer users a total loss of VND2.4 trillion ($150 million).
(News July 15 p6, New Hanoi July 15 p5, Labor July 14 p7, Vietnam Panorama)

327. Foreign Investment:
Vietnam Targets to Disburse $10 Bln FDI This Year-Official
Vietnam is expected to disburse up to $10 billion of FDI this year out of the pledged $40
billion, Phan Huu Thang, head of the Ministry of Planning and Investment’s Foreign
Investment Department was cited by the Tuoi Tre (Youth) newspaper as saying Tuesday.
“The figure is achievable because big cities such as Ho Chi Minh City, southern Dong
Nai, Binh Duong provinces, the magnet of FDI projects, have not updated their FDI
figures to the department” Thanh noted.
In the first six months this year, $5 billion FDI capital was implemented, Thang said.
The government of Vietnam has strong determination to curb inflation to stabilize the
macro situation by adopting to cut 10% public investment, 25% of G-bonds investment.
(Tuoi Tre Online Jul 15)
Tourism:
Furama Resort Danang Becomes Vietnam’s Leading Resort
The five-star Furama Resort in the central city of Danang has won the “Vietnam’s
Leading Resort” title for 2008 by the World Travel Awards, the most prestigious awards
program in the international travel industry, state media has said.
A total of 800 nominated companies and organizations were holding their breath to see if
they had captured one of the coveted awards, bringing the recipients worldwide
recognition as supreme center’s of excellence.
As designed, Furama Resort Danang covers almost 4 hectares on Vietnam’s Bac My An
sea beach. It was 198 orientally elegant rooms equipped with state-of-art utilities.
The awards cover Bangladesh, Brunei, Cambodia, China, Hong Kong, India, Indonesia,
Japan, the Republic of Korea, Laos, Malaysia, Macau, Singapore, Taiwan, Thailand and
Vietnam, among others.
“The awards are not gold medals,” said Graham Cooke, President and Founder of the
highly respected World Travel Awards. “But they certainly carry the same kind of kudos
and international acclaim that the gold medal winners receive.” (Vietnam Economic
Times July 10 p4, VietNamNet July 12)
Politics & Law:
Vietnamese, Russian Communists Enhance Ties
Standing member of the Secretariat of the Communist Party of Vietnam (CPV) Central
Committee, Truong Tan Sang, affirmed the importance of traditional relations with

328. Russia and the Russian Communist Party while receiving the secretary of the Russian
Communist Party (RCP) Central Committee, Dmitri Novikov July 14 in Hanoi.
Sang said he believed the one-week visit to Vietnam by the RCP delegation, with
Novikov as leader, will make contributions to fostering the traditional friendship between
the two parties and people.
Novikov spoke highly of the role, position and prestige of the CPV as well as the
achievements Vietnam has gained during the renewal process.
He said he hoped the two parties increase meetings, and information and experience
exchange to enhance the Russia-Vietnam traditional friendship and comprehensive
cooperation toward strategic partnership.
He also informed Sang of the results of his talks and meetings with officials from Party
agencies and localities of Vietnam. (Website of CPV Jul 14, VNA)
PM: Vietnam to Open Embassy in Israel to Beef up Cooperation
Vietnam will open its embassy in Israel soon in order to expand the bilateral and
multifaceted relationship with the focus on economics, trade, investment and education
with Israel, Prime Minister Nguyen told Israeli Ambassador to Vietnam, Ephraim Ben
Matityau.
“Vietnam will create more favorable conditions for Israeli investors to effectively do
business in,” Premier Dung noted.
In return, Ephraim Ben Matityau said Israel will help train 200 students of agriculture
next year.
Israeli groups and corporations want to invest in oil and gas exploitation, oil refinery
construction, energy, insurance, hospitality and salty treatment.
Early this year, Vietnam and Israel started the first round of negotiations of the Vietnam-
Israel Investment Protection Agreement, the Vietnamese Ministry of Foreign Affairs said.
The bilateral trade between Vietnam and Israel has sharply increased in recent years after
the two countries signed the bilateral trade and investment agreement in 2004. The two
way trade reached $113 million in the first nine months of 2007, up 50% from a year ago,
the ministry said.
Last year, an Israeli company signed a $1 billion contract with Vietnamese shipbuilder,
Vinashin. (Vietnam News Agency Jul 15, Foreign Ministry’s Web site)

329. Labor & Education:
South Korea to Extend Contract for Vietnam Laborers
The South Korean Government will extend labor contracts for overseas laborers,
including Vietnamese from next month, according to the Ministry of Labor, War Invalids
and Social Affairs.
Accordingly, Vietnamese and other overseas laborers in South Korea will be allowed to
work in the foreign country for five years.
Earlier, overseas laborers were only allowed to work in South Korea in 3 consecutive
years and they have to come back home for one month before Korean businesses
reemploy them for additional two years.
The labor contract extension is said to be a positive move by the South Korea
government after hearing lots of overseas laborers’ complaints about losses caused by its
earlier law.
South Korea also remains a potential labor market of Vietnam. Last year, 10,490
Vietnamese laborers got jobs in South Korea, up nearly 5,000 compared to the figure of
2006. With the number, Vietnam is leading top ten countries allowed to send laborers to
the market.
Vietnam sent more than 6,200 laborers to South Korea in the first six months of this year,
according to the Overseas Labor Management Department.
South Korea will need 15,000 Vietnamese workers this year. (Vietnam Economic Times
July 14 p2, People’s Police July 14 p2, Vietnam Panorama)
Health & Environment:
Vietnam: 16 Firms Illegally Raise Medicine Prices
Sixteen pharmaceutical enterprises have illicitly hike retail prices without the Vietnam
Drug Administration’s permission, Tran Quang Trung, Chief Inspector of the Ministry of
Health (MoH) said July 14.
The ministry’s inspectorate is considering punishing them as there is no sanction
regulating disciplines for this kind of violation, only via the administration’s punishment
of revoking import or trading licenses, said Trung without naming the violators.
Some retailers have taken advantage of the administration’s recent announcement
concerning the drug price adjustment to raise the prices of some medicine items by 20%
to 50% while the acceptable hikes for the first phase of 5%-10%, Cao Minh Quang,
Deputy Health Minister.

330. Others display only an ambiguous price list that makes it difficult for the government to
prevent price increases that infringe on patients’ rights.
The ministry has set up two interdisciplinary inspection teams to check medicine prices
in the northern and southern regions, the teams have fined some units in Hanoi for
violations of not displaying price tables and not giving red invoices.
From July 8, Ho Chi Minh City-based Viet Ha Company had its license revoked to
import finished medicines, expect for import of drugs for urgent epidemic prevention,
due to its illegal drug price hike, said the administration.
Medicine prices have increased 8.93% since early 2007, said the administration.
The ministry forecast that Vietnam will spend $1.36 billion on drugs this year, a surplus
of 16.5% in comparison with previous estimation of foreign health organizations.
On average, the country’s per capita medicine consumption is estimated to reach $15.2
this year, up 13.43% on-year. (Labor Jul 15 p1)
Work on $18-Mln General Hospital Starts in Southern Province
Bach Tuyet Ltd., Co. has kicked off construction of a general hospital worth VND288
billion ($18 million) in the southern province of Binh Phuoc, Saigon Liberation
newspaper reported.
The hospital, which will have 250 sickbeds, comprises of many wards such as obstetrics,
pediatrics, infection, odento-maxillo-facial and ophthalmology.
Bach Tuyet general hospital occupying nearly two hectares in Phuoc Long town will
provide diagnosis and treatment for local residents and patients from the Central
Highlands region, and train health workers for local remote areas, said the newspaper.
The newspaper, however, did not mention the expected completion time of the hospital.
(Saigon Liberation Jul 15 p12)
Culture & Society:
Vietnam’s Hosting Miss World 2010 Unclear: Ministry Official
The RASS has worked against the official procedures when it announced that Miss
World 2010 pageant would be organized in Vietnam before asking the authorities’
permission,” Le Ngoc Cuong, Head of the Ministry of Culture, Sports and Tourism’s
Performing Arts Agency told Vnexpress newspaper online last weekend.
The U.S.’s RASS Group signed with the Miss World Organization a memorandum of
understanding to secure the right to host the event in the country and announce it to the
media.

331. Correctly, the host must submit their plan to the Ministry of Culture, Sports and Tourism.
The ministry will pass the plan to the Performing Arts Agency for verification. If the plan
is feasible, the agency will submit it again to the Ministry, which will consult related
ministries and agencies before sending it to the government for approval. If the plan is
adopted by the government, it will be licensed and announced to the public.
However, Cuong said, we have not yet received any document from RASS regarding the
organization of Miss World 2010 contest in Vietnam.
This did not follow the country’s legal procedures, he affirmed.
Organizing a beauty contest is a social activity to advertise Vietnam so the Vietnamese
state also facilitates the hosting. However, we have to obey principles, particularly being
careful in signing any contract with a foreign partner, Cuong added.
Le Xuan Than, Vice Chairman of Khanh Hoa province, where the Miss Universe 2008’s
coronation took place July 14 with the victory of Miss Venezuela, said he received
RASS’ announcement that perhaps Miss World 2010 pageant would be organized in the
province.
RASS CEO Hoang Kieu also told Vnexpress’ correspondent that he wishes and would try
his utmost to bring the pageant to Vietnam. This is a big opportunity to advertise
Vietnamese culture and tourism and it is also a big charity event, he said, adding Khanh
Hoa authorities and RAAS submitted July 11 an application to host the event to the
Ministry of Culture, Sports and Tourism. (VnExpress Jul 11)
Australia to Grant 126 Wheelchairs to Vietnamese Elderly
The Australian Embassy in Vietnam will grant 126 wheelchairs costing $10,000 to
elderly and handicapped people in central Vietnam via the Direct Aid Program (DAP)
and the Rotary Australia World Community Service (RAWCS), a state media said July
15.
The project will benefit people in the five central provinces of Thanh Hoa, Nghe An, Ha
Tinh, Quang Binh and Quang Tri, Public Affairs and Cultural Relations Manager of the
embassy, Dinh Thi Viet Anh, said.
The embassy July 14 donated 26 wheelchairs to elderly and invalid people in central
Thanh Hoa province.
It will provide a financial assistance of AUD90,000 ($87,000) a year to 10-12 small
development projects in Vietnam, Anh added.
The projects aim to alleviate human suffering in disadvantaged communities in Vietnam,
she said, noting that priority areas include health, education, infrastructure and

332. environment. (Thanh Nien Daily July 15 p3, HCMC's Police July 15 p2, Labor July 15
p7, Youth July 15 p6, The Elderly July 9)
Vietnam Detects 160 Women, Children Trafficking Cases in H1
Vietnamese authorities detected 160 women and children trafficking cases in the first half
of the year, arrested 299 traffickers and brought 185 to courts.
The figures were heard at a meeting for mid-year review held by the Government
Steering Board on Women and Children Trafficking Control in Hanoi on July 14.
Addressing the meeting, Maj. Gen. Trieu Van Dat, deputy general director of the Police
General Department under the Ministry of Police said the crime has shown a growing
trend towards foreign involvement, which has made the fight more difficult.
Seriously, the police forces razed some rings trafficking men and infants, he added.
In the six month period, authorities also received 238 trafficked women and children to
return home and integrated into the community. (People’s Police Jul 15 p2)
Vietnam Police Bust Gun-Smuggling Ring
Police forces in seaport city of Haiphong have unearthed a gun-smuggling ring that
allegedly sold guns related to assassination of a customs official recently, the HCMC City
Law newspaper said.
The municipal investigation police agency of C17 said they had arrested Vuong Tai Phu,
a weapon trader, who is found guilty in selling guns to Luu The Nhuong, the killer, the
newspaper said.
The local police forces seized two guns and 32 bullets, an old-fashioned gun barrel, a
sports gun. Phu confessed buying weapons in Mong Cai of northern Quang Ninh
province.
In late April this year, at the UN General Assembly, Vietnam reiterated its stance to favor
the action agenda to prevent and eliminate illegally trafficking of light weapons of any
forms.
Use of weapons is prohibited in Vietnam.
Vietnamese police have busted several weapon smuggling cases since the beginning of
this year. (HCMC Law Jul 15 p2)
Waterway Accidents Kill 89, Injure 21 in Jan-June

333. Vietnam saw 150 waterway accidents in the first half of this year, which killed 89 and
injured 21, the Quan Doi Nhan Dan newspaper said, citing the Waterway Traffic Police's
latest report.
Although the number of accidents increased by 32 cases, the fatalities dropped 13.5%, the
Vietnam News Agency said.
The country also witnessed 141 water transport vehicles sink, causing a loss of VND26
billion ($1.6 million).
The overloaded vehicles, poor management of river routes and waterway transport
services were blamed for the rising number of accidents.
Traffic police nationwide fined 743 stations, over 1,870 vehicles and 97 floating fish-
breeding cages for violating water traffic regulations. (People's Army July 14 p8, Viet
Nam News)
Stock Market:
ACB Okayed to Raise Equity to VND5.8 Tln
HCM City branch of the State Bank of Vietnam (SBV) has turned green light to Asia
Commercial Bank (ACB) to raise its chartered capital to over VND5.8 trillion from
current VND2.63 trillion, the Tuoi Tre newspaper reported.
The increase consists of VND1.47 trillion from reserve fund and VND1.7 trillion from
capital surplus, the paper said, quoting SBV sources.
As planned, the HCM City-based lender would have scaled up its chartered capital to
VND6.355 trillion.
The SBV has, however, rejected the plan, saying that it has not yet approved the increase
of VND550 billion pursued by ACB from issuing convertible bonds in the first phase of
2006.
In the first half of 2008, ACB, Vietnam's biggest listed bank by assets, attained pre-tax
profits of VND1,000 billion. The figure is expected to increase to VDN2.5 trillion for the
whole this year. (Youth Jul 15 p15)
Sacombank Cancels Share Issue to Raise Capital
The Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has decided to
cancel its plan to issue additional shares to raise more fund in order to maintain stable and
safe growth and avoid share price dilution, Vietnam News Agency reported.

334. The bank will not issue additional VND889.7 billion shares to its existing shareholders,
three million shares to its senior staff, and 1.286 million shares to foreign investors from
August 8 to September 20.
The State Securities Commission (SSC) has allowed Sacombank to issue only VND667.3
billion worth of shares to pay 2007 dividend at 15% at 20-to-3 ratio.
Shareholders should register as of July 25 to receive the dividend. The extra shares will
be listed on the southern bourse September 15.
Under the initial plan, Sacombank will scale up its registered capital to VND6.048 trillion
($378 million) from current VND4.449 trillion ($278.1 million) by issuing extra VND1.6
trillion from shareholders.
Sacombank, Vietnam’s second biggest listed bank behind Asia Commercial Bank (ACB)
by assets, said it earned pretax profit of VND754 billion in the first six months, up 23%
on year, and its total assets expanded 95% on year to VND74.9 trillion. (Vietnam &
World Economy Jul 14 p6, Vneconomy Jul 13)
ABT Posts Net Profit of VND22.7 Bln in H1, Up 19.2%
Ben Tre Aquaproduct Import and Export Joint Stock (ABT) reported that it netted profit
of VND22.7 billion ($1.4 million), an increase of 19.18% against the same period last
year.
The company’s net revenue reached VND240.2 billion ($15 million), increasing 20.3%
on year.
The figure of net profit and revenues finished 57.4% and 48.03% of the year's target.
This year, ABT set a target to produce 9,000 tons of seafood product for net profit of
VND39.6 billion, and a net revenue of VND500 billion, with dividend payment at
between 30% and 40%.
The company recently announced it would pay cash dividends for the second half of 2008
at a ratio of VND1,500 per share in August.
ABT shares closed down 2.5% at VND39,600 each on 96,760 shares changed hands.
(Securities Investment Jul 11, APT)
Jul 15: Vietnam Shares Gain on Stronger Recovery Hopes
Vietnam's shares ended higher Tuesday as local investors continued buying on
expectations that the market will recover by the end of this year on stable economy.

335. “More and more players are pumping cash in securities with hopes that the current
recovery whirl will drive the key index to 500 soon and even higher next week,” one
trader with VNS Securities said.
“After some listed giants such as Vinamilk and Sacombank reported big earning for the
first half, investors are looking for many other companies to announce profitable results,”
he said.
Listed companies often released their second-quarter operational results from middle
July.
“Investors are buying to catch the recovery trend after state media said the market is
forming a middle-term uptrend,” the trader added.
VN-Index today gained 11.86 points, or 2.53%, at 479.8.
Market volume totaled 9.7 million shares valued at VND330 billion Tuesday, up from 7.9
million shares valued at VND249 billion Monday.
TTP, today’s most active stock, rose 2.7% at VND22,500 on 927,530 shares, including
1,600 shares bought and 832,280 shares sold by foreigners.
SAM, the second most active stock, closed up 2.9% at VND28,700 on 790,790 shares, of
which foreign investors bought 17,290 shares and sold 507,680 shares.
PPC surged 3% at VND31,000 on 652,970 shares, including 416,100 shares bought and
4,000 shares sold by foreigners.
BT6 is the most advancer, rising 3% at VND51,500 on 6,380 shares changing hand.
In the downside, AGF fell 2.2% at VND31,000. Of 176,520 shares traded, foreigner
bought 2,200 shares and sold 148,170 shares.
KRM is the most decliner, losing 2.8% at VND38,000.
In total, 143 stocks ended higher, eight lower and one unchanged.
All four fund certificates closed higher. (HOSE July 15)
Vietnam News
July 14, 2008
Inter-bank Forex Rate: $1=VND16,510

336. Banking & Finance:
Vietnam Central Bank Tightens Forex Agent’s Operation
The State Bank of Vietnam (SBV) has issued a decision to re-adjust regulations on
operation of foreign exchange desks, the SBV website said July 11.
Under the new Decision No.21/2008/QD-NHNN, replacing the Decision No. 1216/2003/
QD-NHNN dated October 9, 2003, the central bank has ordered 3,600 domestic money
desks to re-apply for their license to trade foreign currencies.
The move is aimed to ensure money changers to follow regulations on foreign currency
management of the central bank, according to the decision, which didn’t say when the
new decision will come into effect.
Money desks need to re-apply in the next three months or so, the decision said.
The central bank will only allow money changers to operate from hotels of at least three
stars, border gates, travel agents, airline offices, entertainment areas for foreigners and
shopping centers, the decision said, but did not disclose when it will come into effect.
Authorities have the right to revoke the license of any money changers who won’t sell
dollars to banks.
July 12, the buy/sell rate for USD/VND at Vietcombank and at Vietnam Export Import
Bank (Eximbank) was VND16,813/VND16,848 and VND16,813/VND16,848,
respectively.
In Hanoi, people crowded jewelry shops and foreign currency exchange agents to buy
U.S. dollars as the buy/sell rate dropped to VND16,900/VND17,000 on the same day.
Agents are selling the dollar at VND16,800 to customers trading more than $1,000.
The exchange rate of the dollar on the black market tumbled after the SBV ensured a
sufficient supply of dollars to meet basic goods importers’ demand.
East Asia Bank, Sai Gon Commercial Bank, the Bank for Investment and Development
of Vietnam (BIDV) and the Technological and Commercial Joint Stock Bank
(Techcombank) agreed to sell the dollar at listed prices to all clients.
Individuals with legitimate needs for dollars, including studying abroad, travel, and
overseas medical treatment, can also buy dollars from the bank, said BIDV chairman
Tran Bac Ha. (Labor Jul 14 p3, www.sbv.gov.vn Jul 11(
Dong A Bank Eyes Overseas Remittance Up 20% to $1.2 Bln in 2008

337. Dong A Commercial Joint Stock Bank is eyeing to transfer $1.2 billion of overseas
remittance via its Dong A Remittance Co., this year, an increase of 20% from 2007, said
Le Tri Thong, the bank’s deputy general director and chairman of the company.
In the first six months this year, the company transferred $631 million remittance,
reaching 52.6% of the yearly plan, he said.
Dong A Remittance Co. helped overseas Vietnamese send home $1 billion in 2007,
accounting for a 20% market share in Vietnam.
In the first half this year, some other banks also saw significant remittance transfer such
as Sacombank with transferred value of $420 million, or ACB with remittance surging
125% on year.
Recently, DongA Bank has cooperated with MoneyGram to provide a door-to-door
overseas remittance forwarding service for Vietnamese.
Nick Cunnew, the regional director of MoneyGram Asia-Pacific and Southeast Asia, said
that with more than three Vietnamese people living abroad, the country’s remittance
market holds full potential.
According to the Committee for Overseas Vietnamese, remittances sent to Vietnam last
year reached $5.5 billion, an increase of $1 billion from 2006. (Young People Jul 14 p7)
Samsung Life Insurance Enters Vietnam Market
South Korean-based Samsung Life Insurance Company will open a representative office
in Vietnam on July 17, the Vietnam Economic Times reported.
The company received license for establishment of the office on April 17.
The office will study a business model suitable to Vietnam market and a strategy to
penetrate to and tap business opportunities in the country.
Samsung Life Insurance is a key member of Samsung Electronics Company as well as
Samsung Group. It reported insurance premiums of $27.6 billion in 2007, holding the
largest market share of 28% of income insurance in South Korea.
The company is running 11 offices, including one in Vietnam, in seven countries.
(Vietnam Economic Times Jul 14, Investment Jul 14 p3)
[Samsung Life Insurance explores Vietnam market
Hanoi (ANTARA News/Asia Pulse) - Samsung Life Insurance Company inaugurated
Tuesday its representative office in Hanoi, marking its presence as one of South Korea's
leading insurers in Vietnam.

338. South Korean Ambassador to Vietnam Im Hong Jae said the opening of the
representative office was an indication of Samsung Life Insurance Company's confidence
in the future growth of the Vietnamese insurance market.
Samsung Life will join 35 other foreign life and non-life insurers to explore the insurance
market in Vietnam where 5 per cent of the population currently have life insurance.]
AIG Introduces Export Credit Insurance in Vietnam
American International Group, Inc. (AIG) has started providing export credit insurance
service for Vietnamese exporting companies through its affiliate in the country, state
media reported.
The service will help Vietnamese exporters reduce credit risk and enable them to be more
able to negotiate with importers and increase their international competitiveness, said
Christopher Shortell, the credit insurance vice president of AIG in Asia and China.
Export credit insurance provided via AIG Vietnam Non-life Insurance Company will
make it possible for an exporting company to obtain a bank loan that could amount to
90% of the value of the products, he said.
When buying export credit insurance, a company may also have opportunity to obtain
credit from many other sources.
Vietnam is a potential market for export credit insurance service as the country has a
wide range of export items including agricultural products, seafood, industrial products
and handicrafts.
There, however, has been few export credit providers in Vietnam while domestic
companies know little about the service. The Government has not yet put in place any
incentive policies to support this kind of service. (www.ven.org.vn Jul 11)
Trade:
U.S., E.U, Japan Remain Vietnam’s Biggest Apparel Importers in H1
The U.S. remained Vietnam’s largest apparel export market in the first half, with an
export turnover of $2.4 billion, accounting for 57% of the Asian country’s total export
value of the product, the Vietnam Textile and Garment Association (Vitas) said.
The European Union (E.U.) came in second with $780 million, while Japan ranked third
with $360 million.
Vitas said despite growing material prices, Vietnam raked in close to $4.2 billion from
textile and garment exports in the period, an on-year rise of 20%.

339. The US Department of Commerce’s failure to find proof of anti-dumping conduct of
Vietnam’s textile and garment industry was a good sign for the sector’s export activities
in the time to come, the association added.
This year, Vietnam hopes to earn $9.5 billion from shipping apparel products abroad, up
23% against last year.
To reach the yearly target, local businesses should make greater efforts to make an export
turnover of $5.3 billion in the second half when they still face difficulties, including
increasing material prices, high loan interest rates, human resource shortages, and high
inflation, Vitas Chairman Le Quoc An said.
An said that in addition to the challenges, the industry has many advantages. He said it
has received a lot of orders and there is no concern about anti-dumping lawsuits.
The official recommended businesses increase exports of high value-added and new
products in order to reduce the impacts of monitoring operations imposed by importing
nations.
Enterprises should be more active in expanding into new markets, particularly in the
Middle East and Africa, and fix their shortcomings in management and productivity, An
said. (VNA Jul 11)
Vietnam Imports $614.4 Mln Goods from Indonesia in Jan-Apr
Vietnam reportedly spent $614.44 million importing commodities from Indonesia in the
first four months of this year, said the Ministry of Industry and Trade’s website.
In April, the country imported $172.18 million from the ASEAN country, said the
website.
In the first four months, Vietnam bought vegetable oil and grease worth $104.23 million,
$53.7 million paper products, $44.5 million machines and equipment, $41.2 million steel
and iron, $40 million auto spare parts, and $39.1 million petroleum products.
Vietnam’s total exports to Indonesia, however, were not made available. Crude oil, rice,
coffee, garments and textiles, plastic products, rubber, sugar, coal, computers and
electronic products, seafood products, foot wears and vegetables are the country’s key
export items. (Vinanet Jul 14)
Industry:
Vietnam PM OKs Land to Oil Refinery, Petrochemical Projects in Central Vietnam
Vietnamese Prime Minister Nguyen Tan Dung has recently approved 3,070 hectares for
an oil refinery, a petrochemical industrial park and Phu Yen Naphtha Cracking

340. petrochemical complex in central Phu Yen province, state media reported, citing the
government sources.
Of the total, 410 ha is to build a $1.7-billion Vung Ro oil refinery in Hoa Tam commune
of Dong Hoa district, Phu Yen province by a joint venture between Technostar
Management Ltd. of the U.K. and Russia's Telloil.
Meanwhile, 2,600 ha was approved for infrastructure construction of $11-billion Hoa
Tam petrochemical industrial park and Phu Yen Naphtha Cracking petrochemical
complex, which is invested by Singapore’s SP Chemicals.
The rest of the land will be allocated to Hoa Tam resettlement project.
The aforementioned projects will be added to lists of works using land between 2006 and
2010 of Phu Yen province.
Vietnam now has no oil refineries. The first Dung Quat is under construction in central
Quang Ngai province with expected operation in next February.
The country was estimated to have spent $5.92 billion importing 6.81 million metric tons
of petroleum products in the first six months of 2008, up 68.9% on year and 4.42%,
respectively. (Vietnam Economic Times Jul 14 p3, Investment Jul 14 p2, Vietpan)
Vietnam Likely to Encounter Steel Shortage in Two Months
Vietnam may lack steel in two months unless the government allows firms to reflect true
world steel prices, the Vietnam Investment Review newspaper cited Nguyen Thanh
Chuy, deputy general director of Vietnam Steel Corp. (VSC), as saying.
Many steel companies stopped importing steel or even re-exported steel billets because
global prices had skyrocketed while the local price has not increased since March, 2008,
Chuy said.
Chuy said world prices of steel billets have gone up to $1,200 per ton while VSC
companies still have to sell their steel at VND15.2 million per ton, equivalent to the steel
billet price of $850 per ton.
Raising steel prices is necessary, said the second proposal by Vietnam Steel Association
sent to the government at the end of June.
To avoid losses, almost all steel companies have not signed contracts to import steel
billets since March, leaving Vietnam in danger of lacking steel billets in the coming
months, it said, adding several steel companies’ re-exportation of steel billets contributed
to the country’s likely shortage of billet steel.

341. At present, the country has stockpile of 255,000 tons of steel and 300,000 tons of steel
billets. This stockpile of steel and billets is still sufficient for the domestic demand in July
and August, Chuy said. (VIR Jul 14 p11)
Apparel Sector Facing Huge Difficulties despite High Export Growth
Vietnamese textile and garment makers are facing difficulties despite their high export
growth in the first half this year, said Le Quoc An, chairman of the Vietnam Textile and
Garment Association (Vitas).
“The sector made export revenues of $4.2 billion in the first half, representing 44.21% of
the yearly target of $9.5 billion and increasing by 20% on-year. It may reach $5.3 billion
export turnover in the second half thanks to a lot of orders,” An added.
He, however, said local garment enterprises are facing many difficulties, including capital
shortage and workforce crisis.
At present, the enterprises are very difficult to borrow loans and they can not raise prices
of their products despite rising material prices, An added.
In addition, serious labor shortage and continuous strikes have hit hard the industry.
The difficulties made profits of the Vietnam National Textile and Garment Group
(Vinatex), the country’s biggest apparel maker, reduce to VND119 billion ($7.21 million)
in the first half, representing merely a half of the set target.
The textile and garment sector is now Vietnam’s biggest forex earner, excluding crude
oil, making up 15% of the country’s total export revenues. It is employing 1.2 million
workers. (VietNamNet, Vnexpress)
Business:
Vietnam Real Estate Market Continue Confronting Difficulties-Property Analyst
Vietnam’s real estate market will be encountering difficulties in a year and half to come
due to the global economic recession and shortage of investment capital, Prof PhD Dang
Hung Vo, former Deputy Minister of National Resources and Environment told the Voice
of Vietnam in a recent interview.
Most real estate project developers are based mainly on bank loans, and now banks have
recently refrained from providing loans for real estate projects and other sensitive areas to
dampen speculation, Mr Vo said.
Asked whether the market will be frozen, Mr Vo pointed out that will depend on
implementation of measures to curb inflation by the government of Vietnam.

342. To effective deal with speculation, Prof-PhD Vo proposed renewing the tax on land use,
the government has asked the Ministry of Finance to compile and adjust the revised
ordinance on tax and land use.
Vo said he already mentioned this issue several years ago.
“The tax is always an effective tool for regulating profits on the market, limiting
imaginary demand and breaking “bubbles” that drive up prices in the real estate market
and create over-speculation,” Mr Vo noted.
The Vietnamese national assembly has approved a resolution to allow foreigners to own
houses from Jan 1 next year and Mr Vo called this resolution a reasonable policy in the
integration process and will have positive impact on the local real estate market.
However, realty developers have faced toughest-ever challenges as prices of property
dived 50%-60% in the first five months, and dropped 10% in June this year.
If the downtrend doest not stop, three fourths of the real estate companies in Ho Chi
Minh City will go bankrupt in a couple of months, the Ho Chi Minh City Real Estate
Association said. (VietnamNet, Voice of Vietnam Jul 13, cafef.channelvn.net Jul 6)
Central Vietnam Economic Zones Pulls in $1.66 Bln Investment
The Chan May-Lang Co Economic Zone (EZ) in central Thua Thien-Hue province has to
date attracted 30 investment projects totaling VND27.47 trillion ($1.66 billion), Vietnam
News Agency reported.
So this year, the zone lured seven projects worth VND18.3 trillion ($1.1 billion),
including three foreign-invested ones.
The Chan May-Lang Co EZ, 70 kilometers southwest of Hue city, has a natural acreage
of 27,108 hectares, covering Lang Co town and three communes of Loc Thuy, Loc Tien
and Loc Vinh of Phu Loc district with a population of 41,000.
Thua Thien-Hue province has concentrated on developing infrastructure for tourism
services in Lang Co beach and put in operation the Chan May deep-water port which is
able to receive over 50,000-tonne ships.
The province also offered tax and land rent incentives to lure more investors to the Chan
May-Lang Co EZ, which is expected to be a momentum for central Vietnam’s economic
development along with the economic zones of Chu Lai, Dung Quat and Nhon Hoi.
(Vientam News Agency Jul 13)
Acer Names New Distributor in Vietnam

343. Computer provider Acer appointed the Petrosetco Distribution Company as an authorized
agent in Vietnam July 11, the Thanh Nien newspaper reported last Saturday.
Petrosetco was established last October to distribute telecommunications and IT products.
Its network covers eight cities and provinces, including Hanoi, Haiphong, Danang, HCM
City and Can Tho.
Vietnam is a potential market with the personal computer market demand grew 210% in
the first quarter on year with strong sales of laptops, a survey by International Data
Corporation (IDC) of Vietnam shows.
Imported laptops showed a growth of 64% and represented 15% of the total units in the
personal computer market.
The commercial computer market also showed a 19% growth in sales, compared to last
year’s first quarter.
Another IDC and Gartner survey also showed that the growth rate of the global computer
market is expected to surpass 12% this year.
Vietnam might enjoy a higher rate, Dao An Khanh, general director of Acer Vietnam,
said, adding that last year Vietnamese bought some 250,000 laptops and consumers are
expected to buy 60% more this year. (Young People July 12 p2, Investment July 14 p3)
VinaPhone to Invest $1 Bln in 3G Development
Vinaphone, one of the three largest mobile-phone operators in Vietnam is planning to
invest $1 billion to develop the third-generation (3G) mobile network in the upcoming 15
years, the Buu Dien (Post) newspaper reported Monday.
“The investment would help our company ensure 3G service quality when it gets the
license,” Vinaphone Director Hoang Trung Hai said, adding that his company has made
careful preparations for the service.
Though lagging behind regional countries in deploying the third-generation (3G) mobile
network, Vietnam has potentials for this technology development, Hai said, noting that
3G service will help ease overloads and problems of 2G service.
At present, the Ministry of Information and Communications is preparing to grant
licences to four enterprises to offer 3G service by the end of this year. However, all seven
mobile service providers: MobiFone, Vinaphone, Viettel Mobile, S-Fone, EVN Telecom,
HT Mobile and GTel, said they have had technology infrastructure and development
strategy ready for 3G service business.
If mobile-phone networks get licenses to offer 3G service in 2008, the service will be
available in 2009, Hai added.

344. VinaPhone currently provides coverage in 64 provinces and cities in Vietnam and has
links with mobile operators in more than 60 countries and governed territories. Its
subscribers hit 12 million.
Vietnam now reports around 58 million phone subscribers. (Post July 14 p6, Vietnam
Panorama)
VNPT to Change Fixed Phone Numbers in 53 Localities in Oct
The Vietnam Posts and Telecommunications Group (VNPT) will change its inland phone
numbers from six to seven digits in 53 provinces and cities starting from October 5, 2008,
the Lao Dong (Labor) newspaper reported last Friday.
The number ‘3’ will be added before the first digit of the current phone number to make
the new one, a VNPT official said, adding that the regional codes stay unchanged.
In order to create favorable conditions for subscribers, both the old and the new numbers
will be available for use during the transferring time, he also said.
The 53 localities consist of An Giang, Ba Ria – Vung Tau, Bac Lieu, Bac Giang, Bac
Kan, Bac Ninh, Ben Tre, Binh Duong, Binh Dinh, Binh Phuoc, Binh Thuan, Ca Mau,
Cao Bang, Dong Thap, Gia Lai, Ha Giang, Ha Nam, Ha Tinh, Hoa Binh, Hung Yen,
Khanh Hoa, Kon Tum, Lang Son, Lao Cai, Lam Dong, Long An, Ninh Binh, Ninh
Thuan, Phu Tho, Phu Yen, Quang Binh, Quang Nam, Quang Ngai, Quang Ninh, Soc
Trang, Son La, Tay Ninh, Thai Binh, Thai Nguyen, Thua Thien – Hue, Tien Giang, Tra
Vinh, Tuyen Quang, Vinh Long, Vinh Phuc, Yen Bai, Dien Bien, Lai Chau, Dak Lak,
Dak Nong, Can Tho and Hau Giang.
Earlier, VNPT also changed its fixed phone numbers in six provinces and cities, namely
Danang, Dong Nai, Kien Giang, Ha Tay, Hai Duong, Haiphong, Nam Dinh, Nghe An
and Thanh Hoa.
The country’s largest telecommunications group finished the equitization process of its
20 affiliates during 2005-2007, raising its total number of equitized entities to 39.
It plans to push ahead the equitization of its key affiliates this year.
VNPT group secured net revenues of VND45.3 trillion ($2.8 billion) in 2007, a year-on-
year increase of 14% against those of 2006. Sixty per cent of these revenues came from
its two mobile operators, MobiFone and VinaPhone. (Labor July 11 p3)
Agel Vietnam Debuts

345. Agel Holding Co has just made Agel Vietnam, the 6th branch in the Asean bloc and 47th
arm in the world to introduce skin care products and Gel Nutritionals products in
Vietnam, the state-run newspaper of Industry and Trade said.
Agel Vietnam will distribute skin products namely Ageles of seven different types.
Agel Vietnam is 90%-invested by the U.S. Agel Holdings.
Vietnam is a potential cosmetic market with 21 million women, cosmetic product users,
who is estimated to spend $755 million on cosmetics, skin care and make-ups products.
(Newspaper of Industry and Trade Jul 13)
Foreign Investment:
MPI: Vietnam Expects $40 Bln FDI This Year
Vietnam is expected to receive pledged foreign direct investment of $40 billion this year
to double last year’s pledged figure, Vietnam News Agency cited the Ministry of
Planning and Investment as saying.
With a series of projects being negotiated, Vietnam expects a total FDI capital of $40
billion this year thanks to long-term economic prospects, Phan Huu Thang was quoted by
the agency as noting.
In the first six months, Vietnam reported a pledged $31.6 billion FDI, surpassing 48% of
2007’s figure with 55.4% invested into industry and construction and 44% in services,
Thanh said.
The Asean country disbursed $5 billion during the period. (Vietnam News Agency Jul
11)
S.Korea Remains Biggest Foreign Investor in Vietnam
South Korea has so far poured $13.5 billion into Vietnam, taking the lead among 80
foreign countries and territories making direct investment in the country, Vietnam News
Agency said.
Of the total, some $2.7 billion was invested into Vietnam’s stock market and the rest are
into construction projects, the news source said.
Last year, South Korean companies invested $4.58 billion in Vietnam, ranking the first
among foreign investors in the Southeast Asian country for the two consecutive years.
Keangnam Group was the biggest South Korean investor in Vietnam in 2007 with a $1-
billion project to build the 70-storey Hanoi Landmark Tower in Hanoi.

346. It was followed by Charmvit Group, which will build a $500 million 27-storey Hanoi
Plaza Twin Tower with a five-star hotel and a high-end office building.
The Korea Trade Investment Promotion Agency (Kotra) said that not only small and
medium-sized businesses but also more big firms from South Korea are eying Vietnam’s
key industrial sectors such as petrochemical, oil refinery and steel projects.
The agency, however, noted that businesses from South Korea have still complained
about poor infrastructure, high land price as well as lack of information about Vietnam’s
investment environment. (Vietnam News Agency Jul 13, Vietpan Database)
Vietnam, Malaysia JV Licensed for $120-Mln Project in HCM City
Aseana BDC Company, a joint venture between Aseana Properties of Malaysia and the
Binh Duong Joint Stock Company, July 11 received a license from Ho Chi Minh City’s
authorities for a $120-million residential area, Vietnam News Agency said.
The joint venture will build Horizon Place residential area on 8,400 square meters in the
southern commercial hub’s district 4.
The area, which houses two apartment buildings, an office building and a trade center, is
slated for construction in this fourth quarter and completion in 2012.
The Ministry of Planning and Investment (MPI) said that between January and June this
year, the city lured over $7 billion of foreign direct investment (FDI), a record in the past
20 years and equal to the total FDI attracted in the past three years.
The southern hub is now home to 2,837 valid FDI projects with registered capital totaling
nearly $24.4 billion, the MPI said.
The largest FDI projects are a $3.5-billion Berjaya international university township
which is soon be signed and a $1.2-billion Teco software park which received license on
June 16. (Vietnam News Agency Jul 11, Vietnam Economic Times Jul 14 p1)
Tourism:
Brunei Firm Okayed to Build $4.3 Bln Tourist Complex in Central Vietnam
New City Properties Development Co. Ltd. from Brunei has got a license to build a high-
grade tourism complex to the tune of $4.3 billion in the central Phu Yen province of
Vietnam, the Thanh Nien newspaper said last Saturday.
To cover 565 hectares in Tuy Hoa city, the project will feature luxury resorts, 4,300 five-
star and 8,900 four-star hotel rooms, 160 high-grade villas, a 36-hole golf course and
many other service facilities.
It is scheduled for completion in 2017.

347. On the occasion, Phu Yen province also granted investment licenses to three new and two
expanded projects with a combined capital of $64 million. These projects are expected to
create jobs for more than 33,000 workers.
Phu Yen has a lot of beautiful natural landscapes and some cultural and historical places
so that they can be built to become zones for tourism resting hunting climbing and
swimming.
The province's tourism developing project includes the following contents. - Upgrading
and expanding the system of hotels in Tuy Hoa Town building the coastal lines Tuy Hoa
- My A and some separated resorts at the My A Beach. (Vietnam Economic Times July
14 p1, Young People July 12 p3, Labor July 12 p7)
Politics & Law:
Vietnam Urged to Enhance Ties with Asia, Africa, Latin America
Vietnam should share its experiences in poverty reduction with Asian, African and Latin
American countries as well as learn about economic development experiences from
developed countries in the regions, Former Vice President Nguyen Thi Binh said.
Binh, who is also vice chairwoman of the Afro-Asian People’s Solidarity Organization
(AAPSO), made the statement at the 5th national congress of the Vietnam Committee for
Solidarity and Cooperation with Asia, Africa and Latin America in Hanoi on July 11.
During the congress, participants discussed measures to maintain and accelerate
solidarity and cooperation with people in the three regions.
They said the committee should coordinate with organizations in the regions to hold
workshops to promote mutual understanding and help boost cooperation in culture,
economics and science.
The participants elected the 12-member Presidium for the 2008-2013 tenure, with Pham
Van Chuong, former director of the Commission of External Relations of the Party
Central Committee being chairman.
The Vietnam Committee for Solidarity and Cooperation with Asia, Africa and Latin
America, whose forerunner is the Committee for Solidarity with Asia, was set up in
October 19, 1956.
It has been seen as the most active member of the AAPSO in Asia and has made
contributions to campaigns to boost solidarity with people in Asia, Africa and Latin
America. (VNA Jul 11)
Fund to Protect Vietnamese Citizens Outbound Launched

348. A fund to protect and assist outbound Vietnamese citizens officially came into effect July
6, with an initial budget of VND20 billion ($1.25 million), the foreign ministry
announced.
The fund will enable government agencies abroad to assist Vietnamese citizens when
they are in need, including in cases of temporary arrests on charges of violating the
resident country’s law, said the fund’s director Duong Chi Dung, who is also the director
of the Foreign Ministry’s Consulate Affairs Department.
There is a growing number of incidents with many Vietnamese citizens because the
number of Vietnamese living abroad is keeping rising.
The fund will cover non-refundable and refundable expenditures.
Non-refundable grants will be used to help protect people’s lives and moving them to
safe places in case of war, conflict, natural disasters, epidemics, terrorism attacks and
kidnappings.
Refundable expenditures include advance payments for hospital fees, medicines, air
tickets to return to Vietnam, accommodation and food, funerals, cremations and the
transportation of deceased citizens.
Those receiving them will have to make written commitments to pay back the money.
However, Vietnamese people residing overseas, who buy local insurance, are not eligible
to the special support.
Speaking at a press conference in Hanoi July 11, Deputy FM Dao Viet Trung said as the
number of Vietnamese living abroad is on the rise, there is a growing number of incidents
involving many Vietnamese citizens beyond their means or finding themselves in trouble
and needing assistance from the State.
Vulnerable groups include trafficked people, overseas laborers, people getting married
with foreigners and fishermen.
Since 1998, over 7,000 Vietnamese women and children were trafficked across borders.
In 2007, over 653 local fishermen were detained due to illegal fishing.
Prior to the establishment of the fund, almost victims were self-rescue and received
financial supports from international organizations, particularly the International
Organization for Migration (IOM), to return back home. (VNA Jul 11, Saigon Marketing)
Labor & Education:
Israel Helps Vietnam Train Education Managers

349. The Israeli Embassy is joining hands with the Hanoi Teachers’ Training College in
organizing a course on educational management with the aim to provide knowledge and
skills in leadership and management for local educational managers, state media said.
The course starts July 14 and will end July 18.
Trainees will learn about education outside school, skills to work in groups,
communication, decision making and leadership in education.
About 60 officials from schools and education and training departments in the country
will attend the course.
Education cooperation has been one of the main pillars of relations between Vietnam and
Israel since the establishment of diplomatic ties in 1993. (People’s Army July 11 p8)
Health & Environment:
Vietnam’s Institute Succeeds in Making H5N1 Vaccine for Humans in Lab
The Nha Trang Institute of Vaccines and Medical Biological (IVAC) in central Khanh
Hoa province has successfully produced the first five batches of 5,000 doses of influenza
vaccine A/H5N1 for humans in its labs, the An Ninh Thu Do (Capital Security)
newspaper reported July 14.
The vaccine (FLUVAC) has proved its immune effects on tested mice and chickens, said
the institute.
Currently, the IVAC is seeking the Ministry of Health (MoH)’s approval to conduct tests
on humans.
It will continue produce an additional 5,000 doses of the vaccine for human tests.
In March this year, the Military Medical Institute started the human trial of H5N1 vaccine
on produced by the Vaccine and Bio-Medical Products Company No. 1 (Vabiotech)
under the National Institute of Hygiene and Epidemiology (NIHE).
The two-period trial will be tested on 270 volunteers during eight months to determine
the vaccine’s safety and the suitable dosage.
Since early this year, Vietnam has reported four H5N1 human infections and all of
patients died after hospitalization, raising the country's total infections and deaths since
November 2003 to 105 and 51, respectively. (Capital Security Jul 14 p2, Vietpan)
Vietnam to Host 6 ASEAN Environmental Events in Oct
Vietnam will host six important ASEAN environmental events from October 5 to 12 to
discuss issues relating to natural and biodiversity conservation, climate change, rising sea

350. level, water resource management and environmental protection, the Sai Gon Giai Phong
(Saigon Liberation) newspaper said Monday [July 14].
The events include the 1st East Asia Environment Ministerial Meeting, the 11th ASEAN
Environment Ministerial Unofficial Meeting, the 7th ASEAN Plus 3 Environment
Ministerial Meeting, the 4th Trans-border Smog Meeting, the 1st East Asia Environment
Exhibition and the Prize-presenting Ceremony for ASEAN Cities with Sustainable
Environment.
The meetings will map out an action plan to implement the declarations by leaders at the
third East Asia Summit (EAS) in Singapore on energy, climate change and environmental
protection.
Participants will include Environment Ministers of ASEAN member countries, Japan, the
Republic of Korea and China, ASEAN Senior Officials on the Environment (ASOEN)
and the ASEAN Secretariat.
Deputy Minister of Natural Resources and Environment Tran Hong Ha said at a
conference July 11 held in Hanoi, the events will be a good chance for Vietnam to gain
experience from other countries on environmental protection when climate change has a
direct impact on Vietnam and its environmental security. (Liberated Saigon July 14 p1,
VNA, VietNamNet Bridge July 13, Labor July 11)
U.K, Taiwan Donate EUR500,000 to Build Wildlife Rescue Center in Vietnam
The United Kingdom's Monkey World-Ape Rescue Center and Taiwan's Primate Rescue
Center have funded EUR500,000 (nearly $795,000) to build a wildlife rescue center,
specializing in primate at the Nam Cat Tien National Park in southern Dong Nai
province.
The National Park July 12 put into operation the 30 hectare center inside original forests
on the Tien (Fairy) island between the Dong Nai River and the Da Hoai River, the
Vietnam News Agency said Monday [July 14].
The center will conduct researches on rare primates’ habitat to farm rescued animals in
the natural environment before releasing them into the forests.
It consists of 10 cages on 700 square meters, a feed-processing factory and an office for
experts acting like a “Hospital in the Forest.”
The “Hospital” has a main task to rescue, provide medical treatment and take care of rare
animals after rescuing them from cages and before releasing them to the nature.
The two foreign organizations have sent their experts to the Nam Cat Tien National Park
to help local colleagues fulfill their mission. (Vietnam News Agency July 13)

351. Germany, Australia Grant EUR4.4 Mln for Biosphere Reserve in Southern Vietnam
Southern Kien Giang authorities and the German Agency for Technical Cooperation
(GTZ) will sign a EUR4.4 million grant deal July 16 to 18 to preserve the Vietnamese
province’s biosphere reserve, the Cong An Nhan Dan (People’s Police) newspaper said
Monday [July 14].
Of the sum, EUR4 million will come from the German government and the Australian
Agency for International Development (AusAID) and EUR400,000 from the reciprocal
capital of Vietnam.
The project will be implemented in Phu Quoc and U Minh Thuong National Parks, and
the coastal preventive forests of Kien Luong, Hon Dat, An Minh and An Bien districts.
Its first phase will be conducted from now up to 2011. (People's Police July 14 p6)
Culture & Society:
Vietnam to Conduct National Population & Housing Survey in Apr 2009
Vietnamese Prime Minister Nguyen Tan Dung July 10 gave the green light to a plan
conducting a national population and housing survey April 1, 2009, local media reported
July 14.
The 15-day survey is aimed to collect basic data of population and houses across Vietnam
to serve research on population and housing development.
Results, which will be publicized in the third quarter of 2010, inform an assessment of
the implementation of the 2000-2009 socioeconomic development plan and assist in
mapping out a development plan for 2010-2020.
Data taken from the survey will also help monitor Vietnam’s implementation of the UN
Millennium Development Goals.
Deputy Prime Minister Nguyen Sinh Hung was appointed as the chairman of the steering
board for the general population and housing survey.
The census, the second of its kind in Vietnam, is estimated to need around VND255
billion ($15.94 million), up 2.8 times against the first conducted in 1999.
Currently, Vietnam is the world’s 13th most populous country with 86.5 million people.
Vietnam reports the world’s highest population density at 252 residents/km2 in
comparison with the world average of 35-40, welcoming over one million newborns each
year. (Vietnam Law Jul 14 p2, Vietnam Financial Times Jul 14 p1, VNA Jul 11)

352. Stock Market:
Vietnam Stock Market Forming Medium-term Upward Trend
Vietnam’s stock market is forming the medium-term upward trend after exceeding the
short-term trend by rising for 14 consecutive sessions, the Tin Tuc newspaper reported.
A new cash flow is being poured into the market, helping it maintain the upward trend for
such long time, the media said.
The last weekend session saw a surging demand of local investors, who bargain-hunted
such blue-chips as Phu My Fertilizer (DPM), Sacombank (STB) and Saigon Securities
Inc. (SSI), the newspaper cited International Royal Securities Co. (IRS) as saying.
A series of positive information about Vietnam’s macroeconomic situations have been
disclosed, such as high foreign currency reserve, inflation lowered, FDI surged and GDP
growth maintained, which help ease pessimisms about future of the market.
In addition, two other investment channels, gold and dollar, cooling down, also propped
up money flows to the stock market.
Nguyen Quang Tung, director of a South Korean investment fund in Vietnam, said his
fund and some others considered the 400 point level is an ideal time for investment.
Therefore, the market has such a strong purchasing power.
Nguyen Son, head of the Market Development Committee, under the State Securities
Commission, said Vietnam has opened more than 430,000 accounts for individual
investors and about 2,000 accounts for institutions as of June 30, 2008, increasing by
30% and three times, respectively, from the beginning of this year.
An analyst from IRS, Nguyen Khac Duan, said technical factors indicated that Vietnam’s
stock market index started to form a bullish trend for medium term, from three to six
months.
The trend will be certainly confirmed in case the index maintains upward for two weeks
more, he said.
Another IRS analyst said shares will continue to rise or stay flat because they have
reasonable prices, which are equal or twice against book values now. (News Jul 14 p4)
Vietnam Bank to Auction VND500 Bln Long-term Bonds
The state-owned Vietnam Development Bank (VDB) will sell VND500 billion ($31.3
million) of government bonds in its third tranche via the Hanoi Securities Trading Center
July 16, the Vietnam Economic Times reported.

353. The bank will auction VND300 billion ($18.8 million) in 10-year bonds, and VND200
billion ($12.5 million) in 15-year bonds, which will be issued July 18.
The bonds will be offered at par value under the book-entry form and then listed on
HASTC.
VDB, one of the country's two policy lending banks, couldn’t to sell VND500 billion in
15-year bonds in its first tranche in March as the ceiling coupon offered by the bank was
only 8.8%.
Commercial banks has been reduced the interest rate recently, putting higher hope on
government bond's auction. (Vneconomy Jul 14, Labor Jul 14 p3)
Vinamilk Posts VND777 Bln Pretax Profit in H1, Up 35.8%
Vietnam Dairy Products Joint Stock Company (Vinamilk), the country's leading milk
producer, reported it earned pretax profit of VND777 billion ($48.6 million) in the first
half of this year, up 35.8% on year.
The company made revenues of VND4 trillion ($250 million) in the period, an increase
of 27% over the first half of 2007. Its profit and revenue figures accounted for 58.6% and
48.3% of the year's targets, respectively.
The dairy maker targets net profit of VND1.14 trillion and revenues of VND8.2 trillion in
2008, rising 18% and 23% over 2007. Its earning per share will be VND6,175 this year.
Vinamilk will scale up its registered capital to VND1.84 trillion from current VND1.75
trillion after it sells and lists 8.76 million shares on the Singaporean stock market.
(Vietstock Jul 11, CafeF, ATP Jul 10)
Vosco H1 Revenues up 59.2% at $77.3 Mln
Vietnam Ocean Shipping Joint Stock Company (Vosco) has said that it gained VND1.3
trillion ($77.3 million) revenues in the first half of the year, up 59.2% on year,
Vietnamese state media said.
Vosco made VND190 billion pre-tax profit in the first six months this year, or 118.07%
of this year’s target. The profit is accredited from the VND80 billion sale of two ships:
Fortune Fighter and Fortune Navigator.
The company has recently opened a brokerage agent in Ngo Quyen District, Hai Phong
City to offer securities services.
Vosco said that it will auction roughly 50.2 million shares Sept 12 this year on the Hanoi
Securities Trading Center.

354. After its share auction, Vosco will increase its registered capital to VND1.4 trillion with
state holding of a 60% stake, or 84 million shares.
Vosco netted a profit of VND36.5 billion in 2006, down from VND64.4 billion in 2005
and VND74.5 billion in 2004. (VietnamNet Jul 13, Transport Time Jul 14)
Jul 14: Vietnam Shares Rise on Middle-Term Uptrend Hopes
Vietnam's shares closed higher Friday for fifth straight day in a row on local buying after
state media reported that the market is forming an uptrend for middle term with a new
money inflow pumped in.
Sentiment becomes strong after the Tin Tuc newspaper cited an analyst at International
Royal Securities Co. (IRS) as saying that the continuous rise in past three weeks helped
drive the market toward the medium-term upward trend.
Investors are shifting investment from gold and dollar markets, which are cooling down,
to stock market ahead the improvements of macroeconomic situations in foreign currency
reserve, inflation, FDI and economic growth.
Buying interest is also boosted because an official of the State Securities Commission
revealed that number of individual accounts rose 30% and of institutions soared three
times so far this year.
“Demand for shares is increasing but supply is tight because investors hope shares to
further rise in coming weeks, with the index to hit 500 soon,” a Hanoi-based trader said.
VN-Index today rose 11.3 points, or 2.47%, at 467.94.
Market volume was 7.9 million shares valued at VND249 billion Monday, down from
11.3 million shares valued at VND379 billion last Friday.
TTP, the most active stock, closed up 2.8% at VND21,900 on 877,200 shares, including
646,100 shares sold by foreigners.
BBC, today’s second most active stock, rose 2.9% at VND28,400 on 390,810 shares, of
which foreign investors bought 36,700 shares.
HPG surged 3% at VND48,100 on 306,700 shares traded, including 26,600 shares bought
by foreigners.
DPM ended up 2.6% at VND56,000. Of 206,790 shares traded, foreigners bought 57,900
shares and sold 100,500 shares.
In the downside, ANV fell 2.8% at VND53,000 on 150,920 shares, including 66,000
shares bought and 147,080 shares sold by foreigners.

355. PAC lost 8.2% at VND41,400 on ex-right date.
In total, 142 stocks ended higher, seven lower and three unchanged.
All four fund certificates closed higher. (HOSE July 14)
Vietnam News
July 11, 2008
Inter-bank Forex Rate: $1=VND16,513
Banking & Finance:
Brazil Largest Bank Mulls to Open Branch in Vietnam
Banco do Brasil, the largest financial organization in Brazil, will consider opening a
branch in Vietnam, said Admilson Monteiro Garcia, the bank’s regional general director
for Asia.
Banco do Brasil will expand network to Asia in the coming months, and the opening of a
branch in Vietnam is possible, he said on the sideline of the forum “Brazil-Vietnam:
Building new partnerships” in Hanoi July 10.
The rising two-way trade between Vietnam and Brazil in recent years and the two
governments’ commitments for stronger bilateral economic ties are important factors for
Banco do Brasil to consider opening a branch in Vietnam, Garcia said.
Brazilian businesses are interested in Vietnam, he said, given that as many as 30 senior
officials from 16 Brazilian leading companies are accompanying President Luiz Inacio
Lula da Silva on a visit to Vietnam from July 9-10.
Meanwhile, Vietnamese enterprises are eyeing Brazil as a potential market.
During the forum, Banco do Brasil and the Bank for Agriculture and Rural Development
of Vietnam (Agribank) signed a memorandum of understanding on exchanging
information and supporting the Brazilian and Vietnamese businesses in their import and
export activities.
The signing was witnessed by Brazilian President Luiz Inacio Lula da Silva and
Vietnamese Deputy Prime Minister Hoang Trung Hai.
This is the first step of the two banks’ cooperation in the future, Garcia said. (VNA Jul
11)
Vietnam to Restrict Investment in Bank Establishments

356. Vietnam will restrain investments by state-owned enterprises (SOEs) to form banks as
SOEs allegedly invested into non-core business, the Government Office’s Deputy
Chairman Pham Viet Muon said at a press brief Thursday.
"The prime minister asked state-run economic groups and corporations to inform about
their investments in banking and finance and securities sectors. Only after the
government approves, they can invest," Muon said.
He said that the Vietnam Oil & Gas Group (PetroVietnam) is not permitted to hold stake
in Petro Vietnam Bank (Hong Viet Bank) because it is now the founding shareholder in
the Global Petroleum Commercial Joint Stock Bank (GP-Bank).
If PetroVietnam wants to found Hong Viet Bank, it must withdraw stake from GP Bank,
he noted.
Vietnam Textile & Garment Group (Vinatex) Chairman Le Quoc An said "Vinatex has
also planned to set up a new bank, but now it is not the proper time,"
Economic analysts expressed their worries over the establishment of too many banks.
Huynh The Du, lecturer of the Fulbright Program said "it is impossible to ban
establishment of new banks; however, management bodies can set higher requirements to
restrict establishment of new banks."
Vietnam now has total 93 domestic, foreign-invested and joint venture banks, 10
financial firms, 13 financial leasing firms and 998 people's credit fund.
The State Bank of Vietnam has so far received 53 applications to form new banks,
foreign bank branches and 100% foreign-owned banks. (Young People Jul 11 p6,
Vietnam Panorama)
BIDV Injects $26.3Mln in Domestic Market
Bank for Investment and Development of Vietnam (BIDV) distributed $26.3 million as
foreign currency assistance to domestic banks through the inter-bank market on July 8-9,
the Saigon Economic Times reported.
The move has helped stabilize domestic foreign currency market, which have witnessed
strong fluctuations over the recent months.
BIDV has not only satisfied the foreign currency demand of its customers but also helped
other banks to ensure their business, said Hoang Huy Ha, vice general director of the
Hanoi-based bank.
On July 8, BIDV pledged not to sell U.S. dollars at quoted prices and set aside 20% of its
dollar resources to sell to foreign banks on the inter-bank market.

357. The unlisted bank has also affirmed it has sufficient supply of dollars to meet demand of
enterprises, individuals, and even foreign banks. (Saigon Economic Times Online Jul 9)
Nearly 5% of Vietnamese Buy Life Insurance Policy
Less than 5% of Vietnamese population has bought life insurance policy with an average
cost of only $7 a person, said Peter Lai, general director of Cathay Vietnam Life
Insurance Ltd Co at the inaugurating ceremony.
Lai also revealed at the ceremony held in Hanoi July 8 that total life insurance premiums
in Vietnam account for only 1% of GDP.
The figures proved that Vietnam's life insurance potential remains high, which is to be
the reason why the Taiwanese Cathay Life opened its subsidiary capitalized at US$60
million in Vietnam, Lai added.
The opening of Cathay Life Vietnam is part of the Taiwanese insurer's long-term
development strategy in Asia.
Cathay Life Vietnam will have two offices in Hanoi and HCM City
Vietnam is now home to eight life insurer, including the only state-run Bao Viet. The
other seven are all foreign firms. (Pioneer Jul 9 p2)
Trade:
Industry and Trade Ministry Propose Cutting Paper Import Tax
The Vietnamese Ministry of Industry and Trade has sent a document to the Ministry of
Finance asking for cutting paper import tax from 5% to zero in an effort to cool down
domestic paper market, Vietnamese state media said Friday.
The Saigon Liberation newspaper reported that the ministry also suggested imposing 5%
value-added tax (VAT) on pulp and paper.
The MoIT also called for policies encouraging waste paper recycling and deducting VAT
on paper material, which had been used, for saving and environment pollution reduction.
The Vietnam Pulp and Paper Association said that Vietnam has been facing paper
shortage since June 2008, forecasting that the shortage will last until the third quarter of
2008.
Currently, prices of imported print paper are around $800 a ton in Vietnam. They are
forecast to rise to between $825 and $850 a ton in the coming time due to weak supply at
Asian market.

358. Tan Mai Paper JSC said prices of print paper will rise by VND1 million a ton at its
factories from July 15, averaging at VND17.4-18.6 million a ton. (Saigon Liberation July
11 p6, The Youth p14)
Industry:
Vietnam, Brazil to Boost Cooperation in Biofuels
Biofuel development and cooperation, particularly in field of ethanol, has topped the
agenda of meetings between visiting Brazilian president Luiz Inacio Lula da Silva with
Vietnamese leaders, state media reported.
“Biofuels is of great important to such countries like Brazil and Vietnam due to potential
of job creation, energy access diversification and democratization, reduction of world’s
dependence on polluting and expensive fossil fuel, and mitigation of greenhouse effect
emissions,” president Da Silva said.
“Biofuels may be a good choice to help countries escape from energy and food unsafety”,
he attributed.
Addressing a seminar entitled “Brazil-Vietnam: Building new cooperation” July 10,
Brazilian Minister of Foreign Trade, Industry and Development Miguel Jorge noted,
“Ethanol is a potential field by both countries [Vietnam, Brazil]”.
Vietnam and Brazil July 10 signed an agreement on scientific and technological
cooperation as a move to open bilateral coordination in the biofuel sector.
Brazil is the world’s first and sustainable biofuel economy with advanced technology and
competitive prices. Ethanol industry brings in $19 billion for the Latin American country
annually and creates over 30,000 jobs.
Vietnam plans to turn out 250,000 tons of ethanol and vegetable oil to fuel 1% of the
national gasoline demand by 2015.
The country’s first biofuel project is underway in central Quang Nam province since
April 2007. (Labor Jul 11 p6, Vietpan)
Holland Pledges EUR3.1 Mln to Build Biogas Cellars by 2010
The Dutch government has pledged EUR3.1 million non-refundable aids for a project to
build biogas cellars across Vietnam by 2010, the Nong Thon Ngay Ngay (Countryside
Today) newspaper reported.
The finance will help build an additional 140,000 biogas cellars in 50 cities and provinces
in Vietnam, the source said.

359. The project costs a total of EUR44.8 million, including EUR600,000 technical assistance
by the Dutch Development Agency and EUR3.5 million of Vietnamese reciprocal capital.
Vietnam is forecast to lack 8.6 billion kWh this year.
So far, 40% of Vietnam’s electricity output is dependent on hydropower sources that are
vulnerable to natural disasters such as drought.
The biogas is one of potentials alternative energy. Other includes solar, wind-to-power
and biomass which Vietnamese government encourages for development and usage to
offset the country’s power shortages. (Countryside Today Jul 10 p7, Vietpan)
Three Foreign Banks Lend $116 Mln to Ca Mau 2 Power Plant
Three foreign banks today [July 11] will clinch a credit deal to lend a total $116.25
million to Ca Mau 2 power project invested by state-owned oil monopoly PetroVietnam,
the Vietnam News Agency reported, citing PetroVietnam sources.
The banks are namely CALYON of France, KfW of Germany, and FORTIS of Belgium
and Holland, the sources said.
The loan aims to timely supply capital for PetroVietnam to complete the $430-million Ca
Mau 2 power project on schedule, according to the newspaper.
The 750-megawatt power plant is part of the $1.2 billion Ca Mau gas-power-fertilizer
project in An Khanh commune, U Minh district, southern Ca Mau province.
PetroVietnam put into use two turbines of the plant in June of this year, and will strive to
complete and operate the joint cycle of the plant in the fourth quarter of this year.
The group is set to suspend 112 projects this year worth around VND6 trillion ($363.63
million) in an effort to curb inflation and practice thrift under the government’s direction.
It is taking some drastic measures to add 1,360 MW to the national electricity grid in July
of this year in a bid to ease the country’s current severe power thirst. (Vietnam & World
Economy Jul 11 p5, Vietpan)
Vietnamese Cement Maker to Build VND1-Tln Steel Mill
Can Tho Cement Joint Stock Company will build a steel ingot refining mill worth more
than VND1 trillion ($60.6 million) in Mekong Delta Can Tho City, the Dau Tu
newspaper reported.
The factory, set to cover an area of 70 hectares of land at the O Mon Industrial Park, will
have an annual capacity of 350,000 tons.

360. The mill will become the first of its kind in the Mekong Delta region.
Earlier, the company was licensed to make a joint venture with Cambodia’s Omsaura
Co., Ltd to make a joint venture, namely ACAV-ICO Group Co., Ltd, based in Phnom
Penh.
The joint venture’s main operation is to exploit laterite ore in Baray district of
Cambodia’s Compongthom province with a capacity of 50,000 tons a month. (Investment
Jul 11 p1)
Lilama 18 to Develop $4.2 Mln Steel Factory in Southern Vietnam
Lilama 18 Joint Stock Co has invested VND70 billion ($4.24 million) to build a steel
fabrication and chemical-equipment factory in southern Binh Duong province’s Ben Cat
district, the Vietnam News Agency said Friday.
The mill is set to be capable of manufacturing 7,000 tons of equipment a year.
Currently, the facility is producing 2,200 tons of products, mainly for Binh Phuoc cement
factory and the Phu Huu cement grinding station.
It also produced 1,700 tons of equipment for export to Australia and Cambodia, servicing
the construction of the Brightwater Wood Processing plant and the Kampot cement
factory. (VNS Jul 11 p16)
Vietnam Central Province Encourages Exploitation of Quartz Sand
Central Thua Thien-Hue province is encouraging enticing investors to invest in
exploiting and processing of quartz sand – a plentiful source of material in Phong Dien
district, Vietnam News Agency said.
White sand covers an area of some 17,500 hectares in Phong Dien district, spreading over
communes of Phong Hoa, Phong Binh, Phong Chuong, Phong Thu and Phong Hien town.
Sand containing quartz covers an area of around 42 kilometers with estimated reserves of
more than 41 million cubic meters.
Quartz sand source in the district is able to supply to many industries like glass-making
and china and pottery production, opening chances and prospects for the development of
consumer-good production industry in the locality.
The local authorities have allowed VICO Minerals and Investment Joint Stock Company
to conduct studies on exploring, exploiting and processing quartz sand reserves in the
district.

361. Earlier, the province had licensed Hue Frit Glaze Joint Stock Company to invest in
mining white sand at Phong Hoa commune to serve production. The project worth
VND12 billion is aimed to supply around 40,000 tons of white sand a year for Phu Bai
Glaze Frit Factory. (Vietnam & World Economy Jul 11 p6)
Agriculture:
Vietnam Eyes $2 Bln Coffee Export Revenues Yearly
Vietnam has great potential of coffee production and will likely gain $2 billion from
coffee exports yearly, the Vietnam News Agency reported, citing analysts.
Luong Van Tu, chairman of the Vietnam Cocoa and Coffee Association (Vicofa), said
joining the World Trade Organization (WTO), Vietnam has opportunity to serve five
billion consumers with total expenses hitting $635 billion annually.
He said the world coffee consumption may rise by two million bag (60kilo/bag) a year,
and the volume will be 140 million bags in 2018.
Vietnam now has around 500,000 hectares under coffee cultivation, exporting 850,000
tons of coffee to 70 countries and territories worldwide yearly.
In the first half of 2008, the country’s coffee export revenues surpassed $1 billion despite
a sharp fall of export volume. (Vietnam News Agency July 10)
Vietnam Northern Province to Set up 85,000 Hectare Paper Material Forest Area
Northern Tuyen Quang province authorities have approved a project to set up more than
85,650 hectares of paper material forest for the An Hoa pulp and paper mill.
The project will be carried out in 105 communes of Tuyen Quang township and four
districts of Yen Son, Son Duong, Ham Yen and Chiem Hoa.
The An Hoa Mill with total investment of VND5 trillion will cover 222 hectares in Long
Binh An IZ, Vinh Loi commune of Son Duong district. Its construction is expected to be
completed in the second quarter of 2009.
Once operational, the mill will be able to produce 130,000 tons of paper yearly, by using
500,000 tons of timber and 200,000 tons of bamboo. (Saigon Liberation July 10 p2)
Navico Opens VND450 Bln Seafood Plant in Can Tho
Nam Viet JSC, or Navico, July 11 officially inaugurated Indian Ocean Seafood Plant
with the total investment of VND450 billion in Can Tho city, the Vietnam Association of
Seafood Exporters and Producers (VASEP) said on its Web site.

362. The plant, with total capacity of 700 tons fish materials a day, is expected to help deal
with a large amount of oversized tra and basa catfish being stockpiled.
Navico said the new plant will increase its total capacity to more than 1,000 tons a day,
and help keep its first position in exporting seafood in Vietnam.
As of June 11 2008, Navico signed contracts to buy more than 40,000 tons of oversized
catfish from farmers, under direction of Deputy Prime Minister Hoang Trung Hai.
Navico’s net profit in the first quarter of 2008 decreased 30.23% on year to VND6
billion. (Vasep July 10)
Business:
State-owned Enterprises Post VND510 Tln Revenues in H1, up 50% Year
The government of Vietnam said on its Web site that 74 out of 100 state-owned groups
and corps in total posted aggregate revenues of VND510 trillion ($30.9 billion) in the
first half this year, up 50% on year despite the country’s economic difficulties.
Up to 97% of the corps reported profitable operations, Deputy Minister of the
Government Office Pham Viet Muon told a press briefing Thursday [July 10] in Hanoi.
“The state-owned groups and corporations, the backbones of the country’s economy,
have played a pivotal role in stabilizing the country’s economy despite difficulties, global
economic slow down squeezed by soaring oil prices and inflation,” Muon noted.
Deputy Minister Muon also hailed the roles played by the Vietnam Northern Food
Corporation, or Vinafood 1, and the Vietnam Southern Food Corporation, or Vinafood 2,
in cooling down rice fevers to stabilize the market in late April and early May this year,
Vinachem and its affiliates for stabilizing fertilizer prices.
PetroVietnam imported 60,000 metric tons of liquefied gas to keep gas prices stable and
reduced 10%-15% of fertilizer prices, Muon added.
Deputy Finance Minister Tran Xuan Ha also told the meeting that 76 groups and corps
had raised VND514.465 trillion by the end of 2007, up 1.36 folds compared with the
equity.
To iron out concerns raised by mass media about investments by groups and corps in
recent months, Deputy Minister Ha said several of groups and corps invested a total
VND7.37 trillion in banking, finance and real estate, accounting for only 2.16% of their
equity and 0.92% of their assets value.
In the first half this year, Vietnam sold shares in 62 state-owned firms, bringing up the
total of privatized firms to 3,786 now. Currently, Vietnam has 1,720 state-owned
companies. (Government Jul 10)

363. Vietnam PM Okays Construction of Vietnam-Laos Border Region
Vietnamese Prime Minister Nguyen Tan Dung July 9 approved a plan to build Vietnam-
Laos border zone by 2020 into an area for economic exchange between the north and the
west of the country, Vietnam News Agency reported.
Under the plan, the region will focus on developing forestry development and protection
and biodiversity, agricultural production, mining, construction material industries as well
as key irrigation and hydro power projects.
The plan also specifies development orientation of the regional space and technical
infrastructure and prioritized projects in the five and ten-year period.
The targeted region will include 10 provinces of Dien Bien and Son La in the north,
Thanh Hoa, Nghe An, Ha Tinh, Quang Binh and Quang Tri, Thua Thien-Hue and Quang
Nam in the central Kon Tum in the Central Highlands, covering over 95,240 square
meters.
The government will build prioritized policies to lure domestic and foreign investment in
region to develop border economic zones, economic zones, industrial parks, tourism sites,
training and medical centers, trade centers and other infrastructures in urban areas.
(Vietnam News Agency Jul 10, Vietnam Economic Times Jul 11 p4)
Vietnam Airlines Selected as Sole Carrier for 60th Miss World
The national carrier Vietnam Airlines will be the official and sole carrier for the 60th Miss
World to take place in Vietnam from mid-Sep to Oct 2010, the Youth newspaper
reported.
Under a Memorandum of Understanding (MOU) signed with U.K.’s Miss World Co,
Vietnam Airlines will cover all transport for the beauty contest during one month, the
paper said.
The 60th Miss World is expected to receive 130 contestants from many countries and
territories worldwide, in addition to famous singers and music bans.
Pham Ngoc Minh, general director of Vietnam Airlines, said the event will be held in
coincidence with celebrations of the millennium anniversary of Hanoi-Thang Long,
giving the country the chance to show it is a dynamic, rapidly integrating and attractive
country that still maintains the value of its traditional culture.
Minh said the event is a big opportunity for Vietnam Airlines to show its role as a
national air carrier, promising to try its best to promote Vietnam culture and people to the
world. (The Youth July 11 p4)

364. Politics & Law:
Vietnam, Brazil Sign Four Cooperation Documents
President Nguyen Minh Triet and his visiting Brazilian guest, President Luiz Inacio Lula
da Silva, witnessed July 10 the singing of four significant cooperation documents, local
media said.
They include a memorandum of understanding (MoU) on the establishment of an
Intergovernmental Joint Committee, a bilateral Agreement on Science and Technology
Cooperation, an MoU on fighting poverty and a MoU on sports Cooperation between
Vietnam’s Ministry of Culture Sports and Tourism and Brazil’s Ministry of Sports.
Earlier, the two leaders discussed measures to boost the bilateral relations as well as
international issues in common concern.
The Vietnamese president affirmed his country wanted to enhance multifaceted ties with
Latin American nation, particularly in economy, trade, investment, oil and gas, fisheries,
education, health and poverty reduction.
The Brazilian president, in reply, said the two nations have targeted to raise bilateral trade
to $1 billion by 2010 and the figure will probably be higher if the two sides take
advantage of every cooperation opportunities for long-term benefits.
The two leaders reached an agreement on continuing to enhance bilateral cooperation in
international organizations and multilateral forums such as the UN, the WTO, the Non-
Aligned Movement and the forum for East Asia-Latin America Cooperation.
Triet said Vietnam supported Brazil in its bid for non-permanent membership of the UN
Security Council in 2010.
They also agreed on the necessity to urgently reconsider the world’s food production
system, as well as to soon complete the WTO Doha Round negotiations.
President Luiz later met with top leaders of Vietnamese Government, Communist Party
and National Assembly, General Vo Nguyen Giap.
“I could not leave Vietnam without visiting the general,” Lula told him at his French
colonial mansion in Hanoi, where Giap presented him with a copy of “Unforgettable
Years and Months,” one of his many historical memoires.
The PM Dung told the guest would create favorable conditions for Brazilian businesses
to invest long-term in Vietnam and expect Brazil to help Vietnam with coffee planting
and processing as well as bio-energy development.
The Brazilian president and his delegation of 16 leading firms also attended a “Vietnam-
Brazil economic conference: Building new partnership”.

365. Deputy PM Hoang Trung Hai told the conference Brazil currently ranks 65th among
nations and territories investing in the country. (Labor Jul 11 p1, Vietnam News p2, VOV
News Jul 10)
Labor & Education:
Vietnam May Stop Sending Workers to Czech Republic
Vietnam may stop sending laborers to the Republic of Czech, the Saigon Giai Phong
newspaper reported Friday.
The Ministry of Labor, War Invalids and Social Affairs (MOLISA) said that Vietnam has
hardly sent workers to this market for a long time, explaining that Vietnamese workers
who are paid with good salaries in the Czech Republic have to wait in hopelessly.
In fact, the Czech Republic has temporarily stopped granting entry visa for Vietnamese
laborers due to chaos in the market.
MOLISA, and the Ministry of Police, Foreign Affairs, and Justice July 10 held a meeting
in an effort to deal with the situation. The ministries proposed the government to either
stop sending laborers or draft requirements to limit the number of workers to the market.
No final decision has been made at the moment.
Currently, around 50 Vietnamese companies join labor export activities to Europe,
including the Czech Republic.
The country generated more than 42,000 overseas jobs in the first six months this year,
fulfilling 49% of the year’s target. Of the figure, 17,252 came to Taiwan (China), more
than 6,200 to Malaysia; around 6,400 to South Korea and 2,400 to Japan, According to
the Bureau of Administration on Overseas Workers under MOLISA.
Vietnam aims to create 85,000 overseas jobs this year. (Saigon Liberation July 11 p11,
Vietnam Panorama)
UNESCO Vietnam Inks First Education Pact with Local Group
The Vietnam National UNESCO Committee and Nguyen Hoang Group have recently
signed an agreement on cooperation in education and training, state media has said.
This is the first deal the Vietnam National UNESCO Committee signed with a domestic
partner to promote international cooperation and boost educational activities, including
cooperation with foreign countries and international organizations.

366. The pact aims to promote cooperation with UNESCO in the development of a high-
quality information school (iSchool) system, Deputy Foreign Minister Ngyen Van Tho,
who is also chairman of the Vietnam National UNESCO Committee, said.
The system will be implemented in the 2008-2009 school year, he said.
Under the deal, the Vietnam National UNESCO Committee will provide the Nguyen
Hoang Group with information relating to major trends of UNESCO’s education and
training development to promote cooperation in the iSchool system.
Nguyen Hoang Group, which is specialized in information technology, runs Vietnam’s
most modern computer production factory in Ho Chi Minh City, has the task of
reviewing and assessing advantages and disadvantages in implementing UNESCO’s new
ideas at the iSchools.
Vietnam National UNESCO Committee will be supportive of improving education
quality, using English at schools, and training teachers in order to build international-
standard schools in Vietnam.
Currently, Vietnam has 357 universities, institutions and colleges. The proportion of
students to Vietnam population is 136/10,000. The communist country targets increase of
the ratio of students to population to 200/10,000 by 2010, and 450/10,000 by 2020. (VNA
July 8, Vietnam Panorama)
Vietnam Polls Public for Syllabi & Textbooks
The Vietnamese Ministry of Education and Training (MoET) July 7 started gathering
public ideas and suggestions on syllabi and textbooks at a public referendum at
http://diendan.edu.net.vn with the aims at further improving and perfecting them in the
near future, state media has said.
The move has been followed current typical mistakes in textbooks published by the
Education Publisher including knowledge content, dictation, marks, figures, ways of
expression, inexact style and quotation, term translation mistakes, and different
information among books.
All individuals, organization, educators, managers, scientists and pupils can voice their
ideas at the forum or they can send them by email at gopyGK@moet.edu.vn.
Feedback must be given in 20 days. Special cases which need more time must have
approval from MoET leaders.
If necessary, the Department of Information Technology can co-ordinate with the
Education Publishing House and related agencies in order to organize online seminars
and collect ideas at http://hop.edu.net.vn/sgk.

367. Valuable ideas will receive awards.
Previously, MoE assigned the Vietnam Union of Science and Technology Association to
collect ideas on syllabi and textbooks for all subjects. However, because of limited time,
the union could only give an initial assessment.
The department is assigned to organize the forum, while the publisher, the Departments
of Primary Education and Secondary Education, the Vietnam Education Science Institute
and various groups of authors are responsible for acquiring, exchanging and giving
feedback to ideas on the forum.
Vietnam has spent a lot of money on textbooks and curricula over the last several years.
Especially the country spent VND30 billion ($1.87 million) on textbook and curricula
reforms at all levels in 2007. However, current system and materials are inadequate and
regressive. (Young People July 8 p2, Vietnam Panorama)
Health & Environment:
WB Signs $60 Mln Deal to Improve Healthcare Service in northern Vietnam
The World Bank and the State Bank of Vietnam Thursday [July 10] signed a $60 million
credit agreement for a $66 million project to improve healthcare services in district
clinics in northern Vietnam, Vietnamese state media said Friday.
The fund is to be funded by the International Development Association (IDA) under the
WB, the Ha Noi Moi newspaper said.
The project will focus on improving professionalism of health workers, piloting a
healthcare model, upgrading district hospitals and funnel cash for implementation of the
program 139 to help the poor have access the service, the paper said.
The Ministry of Health will be in charge of conducting in Bac Kan, Cao Bang, Dien
Bien, Lai Chau, Ha Giang, Lao Cai, Son La from now to Feb of 2014. (New Hanoi
Online Jul 10)
800,000 Vietnamese Get Burned A Year - Health Min
Vietnam witnessed 800,000 people suffering from burns a year, or nearly 1% of total
population, the Tien Phong (Pioneer) newspaper said, citing the Ministry of Health
Friday [July 11].
Public poor awareness of burn treatment before hospitalization is blamed for an
increasing number of burn patients, the National Institute of Burns said at a conference to
review the “Prevention Burns in the Community” project held in Hanoi July 10.

368. The $70,000 project, which has been funded by the U.S-based AIG and the Asia
Foundation through the institute, helped increase the number of the burn patients getting
the right treatment before being taken to hospitals to 72% from 30%.
Under the project, the institute provided training courses to raise awareness of treatment
burns in the community and improve skills of medical staff.
Addressing the event, PhD Nguyen Viet Luong of the institute said it saw the increasing
number of victims getting burned by electric shocks, fires during past hot summer days,
especially children in rural areas.
However, 95.4% of healthcare centers now lack equipments to treat burns and only
200,000 burn patients of a fourth of total burn patients were treated, according to a result
of the project's survey.
Up to 89% of surveyed medical staff at 200 healthcare units at commune and district
levels has not been trained to treat burns, 93% of staff does not have burn treatment
documents and 83% of units lack medicines to treat on spot.
The most serious burns result in scarring and deformities. (Pioneer July 11 p2)
WB Report: Hanoi, HCMC Hardest-affected by Environment Pollution
Hanoi and Ho Chi Minh City are listed among cities in Vietnam, which are hardest-
affected by environment pollution, according to a recent survey conducted by the World
Bank in 10 biggest cities in Vietnam.
The amount of smokes and rubbish dumped in the capital city and Ho Chi Minh City
accounts for 50% of the total discharged in Vietnam, the Phap Luat Thanh Pho Ho Chi
Minh City newspaper said.
In Hanoi, the environment is being polluted by different factors with heavy metals
accounting for 46.9% of lands polluters and organic substances making up 46.7% of air
polluters and water environment pollution accounts for 41.2% of the biologically oxygen
demand.
Meanwhile, Ho Chi Minh City’s water sources pollution dirtied by chemicals accounted
for 59.1%, and water polluted by heavy metals made up 52.5%, air pollution represented
50%.
Tran Hong Ha, head of the Ministry of Natural Resources and Environment’s
Environment Protection Department said that the bank’s figures do not reflect real
situation but seem to be warning enough.

369. The World Bank said the Asean country needs $2.5 billion a year to combat environment
pollution. Vietnam used only $450 million in 2004 to clean environment, a fifth of the
required fund.
“We [the WB] want to support the government of Vietnam to deal with environmental
challenges during its development process,” Magda, manager of operations and policy for
the World Bank East and the Asia Pacific region’s Environment and Social Development
Department said. (HCMC Law Jul 9 page Advertisement)
Culture & Society:
Vietnam Deputy PM Urges for Probe into Kidney Smuggling Ring
Vietnamese Deputy Prime Minister Truong Vinh Trong has just requested the Ministry of
Police to start an urgent probe into a kidney-smuggling ring that is blamed for a son
death, Tin Tuc (News) Online said Friday.
Deputy PM Trong called for the probe after To Cong Son, father of To Cong Luan, 22,
who was cheated to sell kidney in China and recently died, made his denunciation, the
paper said.
Luan health reportedly worsened before his death after he was returned from China
recently.
Luan was among five victims cheated to have sold kidneys in China.
More than 7,000 Vietnamese are seeking kidney transplants, out of total 72,000 people
who are under hospital treatment because of kidney failures, according to state media.
(News Online Jul 10)
Vietnam Sentences to Death Two Taiwanese for Drug Smuggling
An Giang province’s people court issued penalty sentences over Taiwanese, Lee Chin
Wen and Wei Chun Lung, on charge of trafficking 2.5 kilos of heroin, the Thanh Nien
newspapers said.
Other four defendants, including Phan Thi Cam Tu, Huynh Thi Anh, Huynh Thi Thuy
Em and Lin Chao Hung were sentenced to respectively 20 years, 18 years and three years
in jail.
The gang trafficked heroin from Cambodia to Vietnam by road and from Vietnam to
other Asian countries and Australia by air. The ring was busted by local police in May
2007.
They confessed to using a warehouse in Vietnam for heroin brought in from other
countries.

370. Under Vietnamese laws, trafficking more than 600 grams of heroin or 20 kilograms of
opium is punishable by death. (Young People Jul 11 p2)
Hanoi Oks Establishment of 7 First Private-owned Notary Offices
The Hanoi capital authorities have recently approved establishment of first seven private-
owned notary offices, one year after the Law on Notarization took effect, the state-run
VietNamNet Bridge published by the Ministry of Information and Communication said
Friday.
The establishment of these private-owned notary offices will help reduce pressures of the
state-run agencies and cut administrative procedures, analysts said.
Two of them will be located in Cau Giay district, and others will be in Ba Binh, Hai Ba
Trung, Thanh Xuan, Hoang Mai, and Dong Anh districts.
These offices had to wait for one year before being approved. The Hanoi Department of
Justice will check these offices, train staff and grant licenses within ten days.
Meanwhile, HCM City authorities have recently approved a scheme to develop
notarization from now to 2010.
HCMC will have an additional 10 private-run notary chambers more from now to 2010.
Currently, Vietnam has 140 state-run notary offices with nearly 400 employees, including
six offices in Hanoi and six agencies in HCM City. (VietNamNet Bridge July 11, Vietpan
Database)
Wartime Shrapnel Bomb Explosion Kills 3 in Central Vietnam
A war-era shrapnel bomb left in the Vietnam War exploded July 10 in central Quang Tri
province’s Hai Chanh commune, killing three children instantly, the Tuoi Tre newspaper
said Friday [July 11].
The victims namely Tran Duy Quyet, 14, Pham Nhu Hoi, 13, and Dao Ba Thanh, 12.,
may have played with the bomb while they were feeding their buffaloes on the Ruong
Cay hill in Cau Nhi Phuong village, Pham Nhu Nam, village head said.
The local authorities said that several unexploded shrapnel bombs were also found at the
site after the incident.
The Quang Tri province, 620 kilometers south of Hanoi, was the location of one of the
fiercest battles during the Vietnam War.
The U.S. warplanes dropped some 15 million tons of bombs on Vietnam during the war.
The bulk of the unexploded ordnance remains in the central and southern Vietnam,

371. particularly around the demilitarized zone that divided northern and southern Vietnam
until the end of the war in 1975.
Wartime bomb explosions left 15,000-20,000 deaths and injuries with a fifth being
children a year. (Young People July 11 p2, Vietnam Agriculture July 11 p2, Youth July
11 p3, Great Unity July 11, www.earthtimes.org, Dan Tri Online July 10,
www.abc.net.au)
Stock Market:
State Groups, Corps Invest $460.6 Mln in Stock, Banking and Finance
The state-owned groups and corporations had invested total VND7.37 trillion ($460.6
million) in securities, banking and finance sectors by the end of June 2008, said the
government’s Steering Committee for Enterprises Reform and Development.
The figure is summarized based on the reports of these utilities, the committee announced
at the press conference July 10.
Accordingly, 13 groups and corporations invested in securities and financial investment
funds with total value of VND1.061 trillion ($66 million), equal to 1.3% of their equities
and 0.13% of total assets.
As many as 19 state-owned groups and corporations pumped VND4.426 trillion ($277
million) in establishing commercial banks, accounting for 1.3% of equities and 0.55% of
assets.
Total investments in setting up securities companies reached VND420 billion ($26
million), equivalent to 0.12% of their equities and 0.05% of assets, with the participation
of 13 groups and corporations.
As many as 18 state powerhouses poured VND1.463 trillion ($91 million) in real estate
sector, making up 0.43% of equities and 0.18% of assets.
In total, investments of the state groups and corporations in these sectors occupy 2.16%
of their equities and 0.92% of their assets.
Pham Viet Muon, deputy head of the committee, said the figure is not big, but several
corporations have used the state equities, development investment funds and capital for
infrastructure construction to invest in financial sector, causing bad effects on their core
businesses.
Vietnam now has eight economic groups, including VNPT, Vinacomin, PetroVietnam,
EVN, Vinashin, Vinatex, VRG, Bao Viet, and 96 corporations and large-scaled state
companies. (Securities Investment Jul 10)

372. Vietnam Privatizes 30 SOEs in H1
Vietnam privatized 30 state-owned enterprises (SOEs) out of the total 62 SOEs
rearranged in the first six months of 2008, said Pham Viet Muon, deputy head of the
Steering Committee for Enterprises Reform and Development.
The privatization process goes slowly at snail pace, but it is suitable in the current socio-
economic situation, he said.
In 2006, the government planned to privatize more than 1,500 SOEs by 2010.
However, “the stock market slumped recently and purchasing power weakened. Even if
we had issued shares, no one would have bought them,” he said.
“Trying to pursue the original target is impractical. The government will adopt measures
to accelerate the process.”
Vietnam has privatized total 3,786 SOEs so far.
The country now has 1,720 state wholly owned companies, including seven groups, 86
corporations, 1,099 independent state-owned companies. In addition, there are four state-
owned commercial banks.
Six state corporations and one state-owned bank have undergone privatization.
The state-owned groups and corporations own 100% registered capital in 524 affiliate
companies, hold more than 50% stakes in 738 privatized companies and less than 50%
stake in 672 companies.
These groups and corporations play key role in the economy, helping the government to
regulate the macro economy. In 2007, their goods and services production accounted for
40% of GDP.
To implement the government’s anti-inflation measures, they have suspended 609
projects worth VND34.2 trillion ($2.14 billion) so far this year.
Muon said that most of the 3,786 privatized companies, especially those the state holds
controlling stake, still retained their old management mechanism. (VOV Jul 11, Vietnam
Financial Times Jul 11 p1, ThanhNien Daily Jul 11 p3)
Stock Market Watchdog Suspends BBT Stock
The Ho Chi Minh City Stock Exchange (HOSE) July 10’s afternoon issued a decision to
halt transactions of Bach Tuyen Cotton Corp’s shares from Friday [July 11] due to having
losses in the two consecutive years, the state-run Vnexpress.net said Friday.

373. This is the second stock that has been suspended over the past seven years of HOSE’s
operation after Binh Trieu Mechanic Co, it said.
Le Nhi Nang, vice director of HOSE said “BBT shares will be suspended for a couple of
years to come to clarify BBT’s operations,”
“In 2006’s financial statement, the company reported a profit of VND2.2 billion,
however, HOSE has found out it wrong, but a real loss of VND8.4 billion and a loss of
VND6.8 billion last year,” Nang noted.
Under the stock regulations, if any firm has a loss in three years in a row, it will be
removed out of the bourse and transferred to the over-the-counter market.
Bach Tuyen has faced difficulties in operations because in late May roughly 200 workers
went on strike to ask for pay rise and working time reduction. BBT also delayed its
financial statement of 2007.
BBT shares closed up Thursday in the seven straight session at VND8,800 on 57,800
united traded. (vnexpress.net Jul 10)
Stock Market: Jul 11: VN-Index Surpasses 450 Benchmark on Earning Hopes
Vietnam's shares ended higher Thursday on local investors continuing to buy after
Vinamilk reported its first-half earnings rise 27% on year, implying that inflation did not
hurt consumer goods.
“Investors continued to bargain-hunt many shares, after Vinamilk, the current biggest
market capitalized stock, announced huge profit of VND777 billion in the first six
months, meeting nearly 60% of the yearly plan,” a trader in HCM City said.
Not only Vinamilk, Sacombank yesterday also reported six-month profit up 23% to
VND754 billion, causing positive sentiment among local players, he said.
“Inflation will certainly have bad impacts on companies’ operations, but the good
performance of two leading listed firms help ease investors’ concerns,” the trader said.
VN-Index today gained 10.04 points, or 2.25%, at 456.64.
Market volume totaled 11.3 million shares valued at VND379 billion Friday, down from
12.3 million shares valued at VND406.6 billion Thursday.
HPG, the second most active stock, was adjusted down 28.5% at VND46,700 on ex-right
date. Of more than 1 million shares traded, foreigners bought 10,000 shares.
PGC, today’s second most actively traded stock, gained 2.8% at VND14,700 on 668,040
shares, of which foreign investors bought 12,180 shares and sold 460,000 shares.
VNM closed up 2.6% at VND118,000 on 289,280 shares, including 209,030 shares
bought and 191,260 shares sold by foreign investors.
STB surged 2.7% at VND26,500 on a trade of 336,910 shares.
SGT fell 3% at VND29,500 on 216,530 shares, including 4,150 shares bought and 90,500
shares sold by foreigners.
In total, 131 stocks ended higher, 10 lower, 10 unchanged and two untraded.
All four fund certificates closed higher.

374. Vietnam News
July 10, 2008
Inter-bank Forex Rate: $1=VND16,518
Banking & Finance:
Vietnam’s Inflation Continues to Be Tamed in July
Vietnam’s consumer price index (CPI) will continued to be curbed in July thanks to the
government’s inflation controlling measures, the domestic market management
department of the Ministry of Industry and Trade forecast.
Nguyen Cam Tu, deputy minister of MIT and head of the department, said inflation will
slow down in July because anti-inflation measures will take effect if there is no problem
arisen in the market.
Ahead unpredictable fluctuations of the global oil market, the Government of Vietnam is
actively implementing measures to stabilize the oil and gas prices in domestic market in
order to curb inflation and stabilize macro economy, Tu said.
“Up to now, prices of petroleum are still kept stable,” he said.
In addition, the Government has built a roadmap for controlling prices of essential goods.
The Ministry of Finance will inspect prices of 14 key commodities in production and
consumption in near term.
The General Statistics Office said that Vietnam’s CPI rose 2.14% in June from May, the
lowest rise in a single month since the beginning of this year and much lower than the
rise of 3.91% in May. (VNA Jul 8)
Vietnam Central Bank Further Controls Monetary Market
Governor of the State Bank of Vietnam (SBV) Nguyen Van Giau has called for stricter
control over monetary and banking activities in a move to stabilize local market, the SBV
website reported.
In an official dispatch sent to the heads of credit agencies July 8, Giau ordered them to
closely monitor activities related to interest rates, exchange rates, loans, and foreign
currency.
Giau also requested bank leaders to impose strict penalties on banks and credit agencies
as well as individuals who are violating the regulations.
A week after setting up a hotline, the central bank has received many complaints and
suggestions about banking and credit issues from the public, businesses agencies and
organizations throughout the country.

375. Many complained that the credit agencies have been applying a higher interest rate than
what the state bank’s has stipulated. Many credit agencies took fees for the loans. (VNS
Jul 10 p3, www.sbv.gov.vn Jul 8)
Vietnam: Banks Report High Profit in H1 Despite Economic Difficulties
Local banks in Vietnam posted high profits in the first six months this year in spite of
economic difficulties, the Dan Tri (Intellects) newspaper said Friday.
Sai Gon Thuong Tin Commercial Bank (Sacombank), Vietnam’s second biggest listed
bank behind Asia Commercial Bank (ACB) by assets, said it had pretax profit of
VND754 billion in the first six months, up 23% on year, and its total assets expanded
95% on year to VND74.875 trillion.
Sacombank mobilized more than VND64.230 trillion deposit and total outstanding loans
reached VND38.33 trillion during the period.
In the first six months this year, the Bank for Investment and Development of Vietnam
(BIDV), the country’s second biggest state-owned bank by assets, obtained a pretax profit
of VND604 billion, up 44% on year, its total assets rose 10.3% on year to VND224.261
trillion, representing 57% of the year’s target.
BIDV raised VND159 trillion, up 11.82%, and lent a total VND130.39 trillion, up 31.9%
on year.
Meanwhile, the Military-run Bank (MB) posted a profit of VND450 billion, accounting
for 61% of the year’s target in Jan-Jun. MB saw its total assets growing VND30 trillion,
total deposits rising more 20% and outstanding loans increasing 25% compared with the
start of the year.
The monetary market has signs of improvement after the State Bank of Vietnam is trying
best efforts to stabilize by setting hotlines, tightening supervision over the credit
activities, particularly the dollar hoarding. SBV recently released more than $400 million
to stabilize the forex market.
BIDV has recently announced cutting 0.2%-0.6% of interest rates and pledged to ensure
sufficient supply of foreign currencies. (dantri.com.vn Jul 10)
U.S. Dollar Prices Slightly Go Down in Vietnam
Prices of U.S. dollars continued to fall on both official and free markets Wednesday,
proving the success of a series of monetary polices recently launched by the State Bank
of Vietnam (SBV), state media reported.

376. On July 9 afternoon, gold shops offered to buy dollars at VND16,950 and sell at
VND17,030 each while commercial banks announced to sell the greenback to selected
enterprises right in line with their listed prices.
The central bank yesterday adjusted official exchange rate down to VND16,521/$1 from
VND16,522 a day earlier.
With daily USD/VND trading band allowed at plus or minus 2%, the state-owned
Vietcombank, the leading forex bank in Vietnam, bought dollars at VND16,840 and sold
at VND16,848, vs VND16,845 bid on the same day.
At present, importing enterprises and individuals find it easy to buy the U.S. dollars from
banks at the quoted prices with no additional fees.
Commercial banks started to sell out dollars right after SBV Governor asked to closely
monitor monetary and banking activities, including those related to foreign exchange
rates.
Almost all banks said that they will sell dollars to companies importing commodities
used for local production and consumption and for processing export products. They,
however, will not provide dollars for importing luxury goods.
Individuals having legitimate demands for dollars such as studying abroad, travel, and
overseas treatment will also be able to buy dollars from banks.
The Bank for Investment and Development of Vietnam (BIDV) has affirmed it has
sufficient supply of dollars to meet demand of enterprises, individuals, and even foreign
banks.
The Hanoi-based lender will sell dollars at quoted prices and set aside 20% of its dollar
resources to sell to foreign banks on the inter-bank market. (VnEconomy Jul 10,
VnExpress Jul 10, HCM City Law Jul 10 p6)
Deposit Insurance Vietnam Allowed to Use Funds for Investment
The Ministry of Finance has just issued a circular to allow the Deposit Insurance of
Vietnam (DIV) to use temporary idle money for investments in a bid to offset costs and
ensure capital adequacy.
Under the circular, DIV will be allowed to deposit its idle money at the State Treasury,
the State Bank of Vietnam, the state-owned commercial banks and the grade-A joint
stock banks.
DIV will also be able to buy government bonds, bonds and bills of central bank and
above-mentioned banks.

377. The Finance Ministry asked DIV to make report about its investments quarterly and
yearly. (Labor Jul 9)
Trade:
Vietnam to Raise Special Consumption Tax on Casino, Games to 30%
The Vietnamese Finance Ministry is working on a draft law on special consumption tax
and will likely raise the tax on casino and electronic games to 30% from current 25%, the
state-run Vnexpress.net said Thursday.
Casino and games, which are provided for only foreigners, are discouraged in Vietnam,
and the ministry is proposing to hike the tax, the paper said.
Besides, the ministry is also proposing raising tax on alcohol of 20 degrees and upwards
to 60% from current 40% and excluding air conditioners labeled 90,000 BTU,
automobiles of more than 24 seats from special consumption tax.
The casino, lottery and lottery-like business in Vietnam generates annual revenues of $1
billion, and the Haiphong casino opened in 1992 posts a revenue of VND100 billion a
year.
Compared with other regional countries such as the Philippines with 16 casinos,
Cambodia 23 casinos, the number of casinos in Vietnam is much smaller.
The U.S. Oak Tree Realty group is considering investing $5 billion to build a high-class
resort named the “Rising Sun” on a total area of 500 hectares in central Danang city,
which will include a golf course, a sports zone, cable cars, a high-class hotel, a casino and
villas.
Once it is licensed, the project will become the biggest of its kind in Vietnam and
generate 10,000 jobs. (vnexpress.net Jul 10, Vnmedia, Vietpan Database)
Vietnam to Tighten Control over Gas Production, Trading
The Vietnamese Ministry of Industry and Trade is compiling a decree to manage gas
production and trading, and plans to submit it to the government for approval in
December this year, Hoang Tho Xuan, director of the Ministry of Industry and Trade’s
Market Department.
Under the decree, gas production, trading, extracting and refilling will be centrally
managed by the Ministry of Industry and Trade instead of by six or seven ministries as
present, Mr. Xuan told the Tuoi Tre (youth) newspaper.
The ministry will also reorganize gas agents by authorizing operations of only general
agent and retail agents in order to avoid intermediary and unreasonable price hikes, he
attributed.

378. Gas traders in Vietnam have applied five price increases in addition to four price cuts
since the beginning of this year in the wake of global gas rate fluctuations and local
supply.
Vietnam now has around 100 gas trading companies, including 10 bid companies that
import and distribute LPG in the domestic market.
Currently, foreign-led joint venture companies hold over 50% of the market. They
usually adjust selling price monthly. (Youth Jul 10 p2)
Industry:
PetroVietnam Invests $226.24 Mln in Overseas Oil, Gas Projects
State-owned oil monopoly PetroVietnam has to date invested $226.24 million in 21 oil
and gas exploration and production projects abroad, the Thoi Bao Kinh Te newspaper
reported July 10, citing the group’s sources.
Of the capital, $202.21 million has been pumped into oil and gas production and
development projects and $24.3 million in exploration operations, the source said.
Among the mentioned projects, 15 are underway, one is to start soon, one has been
recently inked, and two have ended.
In the first half of this year, PetroVietnam produced total 10.8 million tons of oil
equivalent from 7.2 million tons of crude oil and 3.6 billion cubic meters of natural gas.
The group plans to produce between 15.5 million and 16 million tons of crude oil this
year.
It aims to attain record revenues of VND300 trillion ($18.29 billion) this year, up 40.58%
on year. (Vietnam Economic Times Jul 10 p4, Vietpan)
PetroVietnam Supplies 3.5 Bln Cu.m of Dry Gas in H1
The Vietnam Oil and Gas Group (PetroVietnam) provided 3.5 billion cubic meters of dry
gas for the domestic market in the first half of this year, surpassing 11% of its target,
Vietnam Economic Times newspaper reported July 10.
The gas was transported via the country’s current three gas pipelines of Bach Ho, Nam
Con Son and PM3-Ca Mau.
The group also supplied 32,000 tons of condensate and 124,000 tons of LPG, meeting
107% and 136% of the targets set for the period.

379. PetroVietnam targets to produce 16 million tons of crude oil and 7.5 billion cubic meters
of gas in 2008.
It also aims to attain record revenues of VND300 trillion ($18.29 billion) this year, up
40.58% on year, the Vietnam News Agency reported, citing the group’s figures.
(Vietnam Economic Times Jul 10 p3, Vietpan)
EVN Plans to Halt over 500 Projects due to Capital Shortfall
State-owned Electricity of Vietnam Group (EVN) has planned to halt over 500 works
valued at VND1,802 billion ($109.21 million) due to current severe capital shortage, the
Thanh Nien (Young People) newspaper reported, citing EVN figures.
Of the total, 453 are works of power grid, telecom, and construction projects with a
combined investment capital of VND1,196 billion ($72.48 million); 47 are works of
power source projects costing VND606 billion ($36.72 million), EVN said.
EVN, however, warned that the halt may lead to more severe power thirst in the coming
time.
The group is now carrying out 40 power source projects and 200 power grid projects with
a voltage of between 220 kV and 500 kV.
EVN will strive to put in use some power projects including Tuyen Quang, Dai Ninh,
PleiKrong, Buon Kuop, Ba Ha River, and A Vuong hydropower plants; and Quang Ninh,
Haiphong 1 and O Mon 1 thermal power plants within 2008 and in early 2009.
Earlier, EVN announced that ten hydropower projects in Vietnam with a combined
capacity of 2,443 MW may be lagged behind schedule this year as many commercial
banks have stopped disbursement due to lack of liquidity.
The group said it needs around VND11.86 trillion ($178.78 million) from now to the
year’s end to develop power generating and transmission line projects.
EVN has recently complained about a loss of VND2.1 trillion ($127.27 million) due to
power purchases from the national oil monopoly PetroVietnam group. (Young People Jul
10 p4, Vietpan)
Vietnam to License Largest Iron Ore Mining Project This Month
Vietnam’s Ministry of Natural Resources and Environment is expected to allow Thach
Khe Steel Joint Stock Company to start a project on the country’s largest iron ore
deposits in central Ha Tinh province in late July, reported the Coal-Minerals Magazine.
The magazine, which is published by Vinacomin, cited Ho Duc Binh, director of the
company, as saying that the mining project worth of $650 million will be inaugurated

380. soon, and “the first tons of iron ore from the Thach Khe deposits are expected to be rolled
out in around late 2010,” Binh said.
The Thach Khe Steel JSC will also build a steel refining complex with total capacity of 4
million tons a year in the province’s Vung Ang Economic Zone to process iron ore from
the Thach Khe mine.
In addition, the company will plan to build a steel mill with an annual capacity of 2
million tons with total investment of $1 billion in the first phase. The construction of the
factory is set to start in early 2009 and completed in 2010. The mill’s capacity will be
raised to four million tons a year in the second phase.
Binh said the Thach Khe Steel JSC signed a consultation contract with a Chinese firm in
April 2008 in China.
The company will spend more than VND3.5 trillion for site clearance of nearly 5,000
hectares of land for both projects, mining iron ore and building the steel mill.
Thach Khe deposit was discovered by Soviet and Vietnamese geologists in the 1960s
with estimated reserves of 554 million tons, enough for the company to mine in 47 years,
Binh added. Zinc content in Thach Khe iron ore is high, at 0.075%.
The Thach Khe Iron Joint Stock Company was established in May last year with total
chartered capital of VND2.4 trillion ($150 million).
The nine founders are Vietnam Coal and Mining Industries Group (Vinacomin)
contributing 30% of total capital, Ha Tinh Mining and Trading Company (Mitraco) 24%,
Vietnam Steel Corp. 20%, Vietnam Posts and & Telecommunications Group (VNPT)
4%, Song Da Corporation 5%, Bank for Investment and Development of Vietnam
(BIDV) 5%, Vietnam Shipbuilding Industry Group (Vinashin) 5%, Binh Minh Import-
Export Co. Ltd. 4% and Thang Long Minerals & Metallurgy Joint Stock Company 3%.
Recently, Vung Ang Economic Zone’s authorities have granted investment certificate to
Taiwan’s Formosa to invest a total of $15 billion to build the Son Duong deepwater port
and a steel refining complex with a capacity of 7.5 million tons/year in the first phase and
15 million tons/year in the second phase. The steel complex will use imported iron ore.
In addition, Ha Tinh Steel Joint Stock Company is also developing a $65 million steel
mill capable of turning out 200,000 tons/year in the first phase and 500,000 tons in the
second phase. The factory will be operational next year.
Thus, the Vung Ang Economic Zone will house a steel refining complex with a combined
capacity of up to 20 million tons a year in the near future. (Coal-Minerals Magazine Jul
10 p1)

381. Vietnam Govt OKs to Explore Two Iron Ore Mines in Central Province
Deputy Prime Minister Hoang Trung Hai yesterday [July 9] approved to explore Nui
Vom and Nui Khoang iron ore mines in central Quang Ngai province, state media
reported.
Projects to mine iron ore deposits will then be developed based on estimated reserves.
Exploitation licenses will be considered after exploration reports are ratified by the
reserve assessment council.
The Deputy PM asked the Ministry of Natural Resources and Environment to work with
the Ministry of Industry and Trade and the Quang Ngai People’s Committee to grant
exploration licenses in accordance with the current regulations. (VNA Jul 10)
Vietnam Decentralizes Licensing Power Projects
The Vietnamese Ministry of Industry and Trade has issued a decision to decentralize
licensing of power operations in order to normalize administrative procedures so as to
attract more investors in the sector, Vietnam News Agency reported, citing the ministry's
sources.
Under the decision, the ministry will be in charge of licensing large-sized power plants
that are important to the national socio-economy, defense and security. The ministry also
has the right to license power transmission and import and export operations.
The National Electricity Dispatching Center (Ao) will confer power generation licenses
to power plants with minimal capacity of 3 MW, and to power wholesale, retail,
distribution and consultancy.
Meanwhile, municipal and provincial governments will be authorized to grant power
generation permissions to power plants with capacity of below 3 MW, and to power retail
and distribution in rural areas.
Licensing of power generation will be divided into two phases of investment and
commercial power generation, the ministry said.
Before the issuance of the decision, almost all licenses for power operations were granted
by the Ministry of Industry and Trade, which sometimes caused overload and led to
investors’ long-awaiting and their discouragement.
Vietnam is facing a severe power thirst that is estimated at 8.6 billion this year. The
figure will climb to 36 billion kWh in 2020 and 120 billion kWh in 2030. (Vietnam &
World Economy Jul 10 p5, Vietpan)

382. Agriculture:
Vietnam to Speed up Hybrid Paddy Production
Vietnam will have to boost hybrid paddy production in order to ease its dependence on
hybrid paddy import, the Ministry of Agriculture and Rural Development (MARD) said.
At the meeting reviewing production of 2007-2008 paddy crop in northern provinces,
Deputy Minister of MARD Bui Ba Bong said the MARD will call on big local companies
to participate in producing F1 hybrid paddy.
He said Vietnam now needs 15,000-18,000 tons of F1 hybrid paddy yearly, but local
supplies can meet only 3,500-4,000 tons, or only 24%, forcing the country to meet more
than 13,000 tons per annum.
Nguyen Tri Ngoc, head of the Plantation Department said total F1 hybrid paddy area will
be around 1,200 hectares, down by 50% from previous years.
Ngoc noted that biggest difficulty faced by Vietnam in producing hybrid paddy is
shortage of variety. But local companies prefer importing hybrid paddy to producing it
because it cost less.
The minister said if Vietnam does not speed up hybrid paddy production, it can not fulfill
target to expand hybrid paddy area to 75% in 2010 from current 25%.
To deal with problem the Plantation Department suggested setting up hybrid paddy center
in central Quang Nam and Thanh Hoa provinces, and central highlands Dak Lak
province. (Vietnam & World Economy July 10 p7, The Labor p3)
Catfish Exports Fetch $610 Mln in H1
Vietnamese seafood companies raked in $610 million from exporting 260,000 tons of tra
and basa catfish in the first six months of 2008, a key seafood export item of Vietnam,
the Young People reported, citing the Vietnam Association of Seafood Exporters and
Producers (VASEP).
The exports accounted for more than 32% of the country’s total seafood export value,
followed by frozen shrimp and squid exports with 31% and 7.4%, respectively.
In Jan-May, the country exported 209,054 tons of catfish, totaling $486.869 million, up
48% in volume and 31.3% in value over the same period of 2007.
The VASEP said the high export revenues were attributed to increasing demands from
such major markets as EU, Middle America and Middle East.
Early this year Vietnam target $1.2 billion catfish export revenues.

383. Last year, the country exported 386,870 tons of processed tra and basa from nearly one
million tons of materials, earning nearly $1 billion, up 34.4% on year.
The major markets for Vietnam’s tra and basa catfish include the European Union,
representing 48% of the total revenues, followed by Russia with 9.2%, ASEAN countries
with 7.9% and the U.S. with 6.9%. (Young People July 10 p2, VASEP July 10)
Vietnam Mulls Way to Develop Key Farm Produce Items
Officials from the Ministry of Industry and Trade and relevant bodies discussed ways to
develop key farm produce items including coffee, cocoa, pepper and cashew nuts in a
meeting in Hanoi July.
The workshop is part of program evaluating the World Trade Organization (WTO)’s
impacts on the development of Vietnam economy after nearly two years since the country
joined this organization.
Luong Van Tu, former Deputy Minister of Trade, said Vietnam is now one the biggest
exporters of coffee, pepper and cashew nuts in the world, but production of those items
are still small in scale, and the items are mostly under raw form.
Doan Trieu Nhan, an official from the Vietnam Association of Cocoa and Coffee said
coffee sector is now facing four major problems, including product quality, food safety
and hygiene, stable coffee development and coffee area stabilization.
Chairman of management board of Trung Nguyen JSC Dang Le Nguyen Vu said coffee
quality improvement should be given priority to build up Vietnam coffee brand names on
the world market.
Vietnam is now the world’s second biggest coffee exporter behind Brazil. The country’s
export revenues from coffee increased from $20 million 20 years ago to more than $1.64
billion in 2007.
Meanwhile, Nguyen Thai Hoc, vice chairman of the Vietnam Cashew Association
(Vinacas) said Vietnam has great potential in exporting cashew nuts, but most of the
country’s exported cashew nuts are raw.
Hoc said the local cashew sector should focus on big cashew nut processing factories
with modern facilities to ensure safe and hygienic products.
Vietnam now has more than 200 cashew nut processing factories with capacity of
between 600,00 and 700,000 tons per year.
In terms of pepper sector, Vietnam has kept its first position in the world in exporting
pepper since 2003. Its pepper has been exported to 80 countries and territories

384. worldwide. The country is now home to 10 pepper processing factories meeting
international standards like ASTA, and ESA.
Vietnam exported 571,000 tons of coffee, 72,000 tons of cashew nuts, and 48,000 tons of
pepper in the first half of 2008, earning $1.18 billion, $374 billion, and $170 million,
respectively. (Vietnam Economic Times July 10 p6, Vietnam Law p11)
Business:
Swiss Group Takes over Two Hotels in Vietnam
Switzerland’s Mövenpick Hotels & Resorts started taking over two hotels in Vietnam
from July 1 as part of its business expansions in the country, Vietnam News Agency said.
The two hotels are Omni Hotel Saigon in Ho Chi Minh City and M Hotel in Hanoi,
Mövenpick said.
The name of Omni Hotel Saigon in Phu Nhuan District was promptly changed to
Mövenpick Hotel Saigon, while management of the hotel will be phased in following a
three-month renovation period from July 15 to October 15.
Both the Mövenpick Hotel Saigon and Hanoi are located in busy business areas in HCM
City and Hanoi with state-of-the-art facilities including outdoor pools, fitness centers,
spas and sporting areas.
Mövenpick Hotels & Resorts is an upscale international Swiss hotel chain. The chain
currently operates 64 hotels with 14,392 rooms in 20 countries; 34 hotels are under
construction and are set for completion by 2010. Mövenpick also operates five luxury
cruise ships on the Nile and Lake Nasser. (Vietnam Economic Times July 10 p4, Thanh
Nien Daily July 8)
Vietnam Gov't Rejects Car Registration Fee Hike
The Vietnamese government has denied a proposal by the Ministry of Finance to raise
vehicle registration fees, state media reported.
The ministry previously mulled over raising registration fees to 7% from current 5% for
less-than-seven seat cars and to 2% for other means of transport.
Anticipating a rise, people rushed to buy vehicles to avoid the extra fees, livening up the
Vietnamese automobile market scene.
In line with Vietnam's WTO commitments, import tariffs on all kinds of automobiles will
be cut to 70% after seven years of WTO membership, said Deputy Chief of the Taxation
Policy Agency of the Finance Ministry Nguyen Van Phung.

385. As a result, the tariffs on all kinds of automobiles imported from ASEAN and WTO
members are to be 70% in 2014 and 0% in 2018.
The Finance Ministry is now examining fees applied to all kinds of automobiles to
complete the detailed project on amendment of the Law on Automobile Registration Tax.
The registration tax on under-ten-seat vehicles is expected to go up to 10% from the
current rate of 5%. The maximum registration tax applied to the two largest cities of
Hanoi and Ho Chi Minh City could be 15%.
The increase in registration tax aims to control the number of private means of
transportation, especially cars, he explained.
Statistics from the Vietnam Register showed that the country is currently home to more
than 20 million automobiles and motorbikes. The figure is predicted to increase to 24
million units by 2010. (Business Forum Jul 8)
Vietnam FPT Software to Open Malaysian Subsidiary
FPT Software, a subsidiary of the Financing and Promoting Technology Corporation
(FPT) of Vietnam, will establish an affiliate in Malaysia later this week, the Thoi Bao
Kinh Te newspaper reported Thursday.
The new affiliate, FPT Software Malaysia is the fourth overseas of FPT Software, FPT
Software Malaysia Managing Director Phan Hoang Son said.
The establishment of FPT Software Malaysia after Singapore-based FPT Software Asia
Pacific proved the corporation’s strong commitment to build a software export market in
Asia and the Pacific, FPT Software Asia Pacific Director Hoang Viet Anh said.
Malaysia is expected to become FPT Software’s key market due to its growing demand
for information technology resources, he said, adding that already-built strategic relations
with a number of Malaysia partners are considered one of the important premises for FPT
Software Malaysia’s future success.
FPT Software Malaysia is expected to bring home a turnover of $1.8 million this year,
$2.5 million in 2009 and $5 million a year later, FPT Software Malaysia Managing
Director Phan Hoang Son said.
FPT Software also plans to open another branch in Europe by 2010 in an ambition to
penetrate deeper into this lucrative market.
FPT Software firstly entered Europe in 2000 and has gained fruitful achievements in the
market. The company targets to obtain revenues of $48.5 million this year, $18.5 million
higher than that of 2007. (Vietnam Economic Times July 10 p1, Vietnam Panorama)

386. Foreign Investment:
Sanyo Vietnam to Pour $95 Mln in Making Electronic Parts in North
Sanyo Vietnam, an affiliate of Japan’s Sanyo Group, will today [July 10] receive a
license to invest $95 million in producing electronic parts in northern Bac Giang
province, the Thoi Bao Kinh Te newspaper reported.
The project, to cover an area of 60,000 square meters in Quang Chau Industrial Park, will
be kicked off this August.
Construction of the first factory and an office building are scheduled to be completed in
April 2009. The second factory is set to go on stream in early 2010.
After three years of operation, the factories will make total export revenues of more than
$300 million a year and provide jobs for some 12,000 workers. (Thoi Bao Kinh Te Viet
Nam Jul 10 p1)
BIDV to Hold Forum on Northwestern Investment Promotion
The Bank for Investment and Development of Vietnam (BIDV) Wednesday said that it
will join hands with northwestern provincial authorities to organize an investment
promotion forum in the region, the Thoi Bao Kinh Te newspaper said.
The forum, which will be opened in Lao Cai province’s Sapa town August 8, will be a
good chance for investors to come to northwestern Vietnam.
At the event, BIDV will introduce the region’s potentials and investment opportunities
and act as an information bridge between investors and the region.
The bank has also pledged to supply financial assistances and a banking service package,
including loans and insurance services, for investors with projects in six projects of Lao
Cai, Yen Bai, Ha Giang, Lai Chau, Dien Bien and Phu Tho.
BIDV will directly participate in the projects in these localities as a long-term and
profession partner. (Vietnam Economic Times July 10 p2)
Infrastructure:
Vietnam PM Approves VND287.8 Tln Hanoi Transport Infrastructure Plan by 2020
Vietnamese Prime Minister Nguyen Tan Dung Thursday [July 9] approved the Hanoi
transport infrastructure development plan capitalized at VND287.8 trillion ($17.4 billion)
on a total area of 13,800 hectares to account for 15% of the city’s land square by 2020,
the government said on its Web site.

387. Under the plan, VND117 trillion will be used to implement roads projects on 11,500
hectares, VND138 trillion for railway projects on 1,100 hectares, VND13.7 trillion for
waterway projects and VND13.8 trillion for international airports and terminals.
By 2020, public transport means will meet 35%-45% of the city’s transport demand and
reduce private-owned motorbikes to 30%.
From now to 2010, the capital city will focus on implementing several key transport
routes to reduce traffic congestion and beautifying activities to mark the 1,000-year
Thanh Long-Hanoi celebration.
In late May this year, the Vietnamese National Assembly approved the Hanoi capital
expansion scheme by merging the entire Ha Tay province, Me Linh district of Vinh Phuc
and four communes of Luong Son district of Hoa Binh province.
The city recently said it will hire foreign experts for its expansion plan, state media said.
(Government Web site Jul 9)
Central Vietnam Needs $145.6 Mln for Infrastructure Development by 2020
Central Vietnam is estimated to required over VND2.33 trillion ($145.6 million) for its
socio-economic development from now to 2020, with the focus on infrastructure
construction, Vietnam News Agency said Thursday.
Under a recently-approved plan, the region will build a road network of 1,300 kilometers
running from Thanh Hoa to Binh Thuan.
The region will get involved in construction of the north-south highway route and build a
tunnel running through Ca Mountain Pass to facilitate traffic in National Highway No. 1,
upgrade of the two railway sections of Hanoi-Vinh and Ho Chi Minh City-Nha Trang.
In addition, airports and seaports will be the region’s development priorities between now
to 2020, according to the plan.
Central Vietnam ranging from Thanh Hoa to Binh Thuan includes five central highland
provinces, attracted 140 new domestic and foreign-invested projects worth $4.2 billion in
2007, accounting for the country’s total newly-licensed capital in the year.
Last year, the region’s GDP growth reached 13%, higher than the country’s average
level.
However, central Vietnam’s FDI attraction is modest, making up just over 7% of the
country’s number of FDI projects and 11.7% of FDI capital.

388. The central region has set a target to obtain the economic growth of 10% and will focus
on developing service and industrial sectors from now to 2010. (Vietnam News Agency
Jul 10)
Politics & Law:
U.S to Carry out Humanitarian Projects for Central Vietnam
The U.S. government will implement humanitarian projects for central Vietnam, said
Ambassador Michael W.Michalak in his visit with General Consulate Kenneth J. Fairfax
to Danang city July 9.
Michael W.Michalak said the U.S. government is considering 26 proposals for a project
to support Vietnamese Argent Orange victims who are living surrounding the dioxin
hardest-affected Danang Airport.
Last year, the U.S granted $400,000 for the dioxin-contaminated airport clearance.
The U.S. Agency for International Development (USAID) is planning to increase aids for
projects on cleaning up environment and helping disabled people in the city and
neighboring provinces.
USAID has recently pledged to donate $1.5 million to a program to provide healthcare
and economic assistance to families with disabled people in central Danang city.
The U.S. government has provided a financial assistance of $43 million for Vietnamese
handicapped people since 1989.
Vietnam reported 4.8 million people exposed to AO/dioxin with three million AO
victims. (Labor July 10 p1, Vietpan database)
Labor & Education:
Bulgaria Seeking Vietnamese Laborers to Ease Shortage
Bulgaria wants to employ more Vietnamese workers who are suitable to the country’s
labor demands in an effort to ease labor shortage, Bulgarian Minister of Economy and
Energy Peter Dimitrov told the UK’s Financial Times.
Construction, tourism and information technology are the fields most lacking skilled
employees, said deputy chairman of the Bulgarian Industrial Association, Dikran
Tabeyan.
Between 80,000 and 100,000 jobs have not been filled this summer, he added.
The lack of laborers in Bulgaria is due to the fact the country’s skilled workers and
university graduates have flocked overseas to work in the past decade, Tabeyan said
admitted.

389. Vietnam and Bulgaria set up diplomatic ties in February 1950. Since then, the two sides
have ceaselessly promoted cooperation in all fields, including labor and social affairs.
Vietnam and Bulgaria have signed a cooperative agreement on labor cooperation.
Accordingly, they will increase exchanges of information and legal documents relating to
these issues. They will also consult each other in a number of areas such as making laws
regarding labor and social affairs, management of migrant laborers and vocational
training. (Vietnam & World Economy July 10 p10, Youth July 9 p16)
Health & Environment:
EC Grants EUR11.45 Mln for Health Services Development in Vietnam
The State Bank of Vietnam (SBV) and the World Bank (WB) July 9 inked a EUR12.85-
million health project with a EUR11.45 million grant from the European Commission
(EC), aiming to improve basic health services for Vietnam’s northern mountainous areas
and central highlands, said the WB’s office in Vietnam.
The Vietnamese government will contribute EUR1.4 million in reciprocal capital to the
project slated for implementation from 2008 to January 2010.
The project entitled “Healthcare support to the poor in northern uplands and central
highlands” will be implemented in the northern mountainous provinces of Lai Chau, Dien
Bien, and Son La, and the central highlands provinces of Kon Tum and Gia Lai, and will
benefit around 3 million local residents.
The project is designed to improve the health status of the poor and ethnic minorities by
supporting delivery of priority health care packages, such as maternal health care,
community-based malnutrition prevention and treatment, integrated management of
childhood illnesses, child immunization and reproductive health.
It also aims to support district health departments to better plan for the delivery of health
care services.
The project is part of a broader support program between the EC and the Vietnamese
government. (The People Jul 10 p8, Youth Jul 10 p4, Vietnam & World Economy Jul 10
p6, VNA Jul 9)
ASEAN-China Meeting on Drug Control Kicked off
Delegates from ten ASEAN countries and China, representatives of The UN Office on
Drugs and Crime (UNODC) met in Ho Chi Minh City July 9 to review joint measures to
control production, distribution, and use of drugs.
The 7th annual ASEAN-China Cooperative Operations in Response to Dangerous Drugs
(Accord) Task I & II Meeting reviewed public communication as part of efforts to reduce

390. drug demand and the advantages and difficulties in the drug fight, and devised plans for
the coming years.
Speaking to the participants, Major General Lam Minh Chien, deputy general director of
the Police Department, affirmed the Vietnamese government would focus on prevention
and control of drug use and has adopted various approaches in this effort together with
international community.
According to the statistics, 36,789 drug addicts were detoxified in the first six months of
this year, including 7,154 in rehabilitation centers and 1,726 in the community.
In the period, 2,551 drug users were vocationally trained after the detoxification and 153
people have found stable jobs. (Vietnam News Jul 10 p3, People’s Police p1)
Vietnam Provides Vitamin A for 4.53Mln Children in Jun
Around 4.53 million children from six to thirty-six months across Vietnam received free
vitamin A in June, making up 98.2% of the total needed children, announced the
Nutrition Institute under the Ministry of Health.
The institute also provided Vitamin A for 600,000 children between 36 and 60 months
got Vitamin A and vermifuge for 800,000 two- to five-year-old children in disadvantaged
provinces nationwide with the support from the Japan Fund for Poverty Reduction
through the Asian Development Bank.
With the assistance of the UN Children’s Fund (UNICEF), the institute has provided
vitamin A for children and pregnant women across the country for the past two decade
years.
The move has helped reduce blindness, raised illness resistance among children, reduced
the mortality rate and contributed to reducing health problems related to vitamin A
deficiency. (VNA Jul 9)
Culture & Society:
Vietnam to Host Miss World 2010
The Miss World Organization has decided to choose Vietnam to host the pageant in
2010, Thanh Nien newspaper said.
The signing ceremony of the agreement to secure the right to host the event was held in
the Sheraton Saigon Hotel in July 9 between the U.S.’s RAAS Group, representative of
the Miss World organizer in Vietnam, and the Miss World Organization’s Chairwoman
Julia Morley.
The ten-day survey and charity visit to Vietnam has actively impacted to the decision, the
chairwoman said at the ceremony.

391. RAAS CEO Hoang Kieu said pay about $10 million for the right to hold the Miss World
2010 pageant. The group will use proceeds from the international event for charity in
Vietnam, he added.
Central coastal city of Nha Trang, where the Miss Universe 2008 is taking place, is
scheduled to hold the beauty pageant in 2010.
The Mrs. World pageant will be also organized in Vietnam’s southern province of Ba
Ria-Vung Tau next year. (Thanh Nien Jul 10, Vnexpress.net Jul 10)
HCMC OKs 12 NGO-funded $5.8 Mln Projects in H1
Ho Chi Minh City authorities approved 12 NGO-funded projects valued at $5.8 million
and received $2.26 million worth of medicines and medical equipments from foreign
NGOs in the first half of this year, heard a conference held Wednesday [July 9],
Vietnamese state media said Thursday.
Statistics from the HCMC Union of Friendship Organizations (HUFO) showed that the
city has the largest number of international NGOs with 133 organizations, including 47
from Europe, 63 from America, and 23 from Asia-Pacific areas.
The city has received $46.5 million in aids from foreign NGOs over the past five year,
the Vietnam News Agency said.
Addressing the event, Vice Mayor Nguyen Thanh Tai awarded certificate of merits to
nine NGOs and two distinguished individuals for their contributions to the community.
Tai hailed contributions of international NGOs and said that they played a significant role
in contributing to the city's sustainable development.
HUFO also granted medals for peace and friendship to 21 NGOs headquartered in
Australia, Belgium, France, Germany, Japan, Singapore, Switzerland, Taiwan, the U.K,
and the U.S.
Participants include the city's officials, 150 representatives from NGOs, friendship
associations and diplomats. (Liberated Saigon July 10 p1, Young People July 10 p5,
VNA)
Stock Market:
Agribank Securities Arm to Make IPO in Q3
Agribank Securities Company (Agriseco), a subsidiary of the Bank for Agriculture and
Rural Development, said on it website that it would launch an initial public offering in
the third quarter of this year to transform itself into a joint stock company.

392. The firm plans to offer a 25% stake in the auction, selling shares at a starting price of
VND10,500 each. After the share sale, Agriseco will have a registered capital of VND1.2
trillion ($75 million) versus the current VND700 billion.
As a member of Agribank, Agriseco has received great assistance from the mother bank
to expand its network and business scope. The stock broker now has one branch, three
transaction offices and 43 order-receiving agents nationwide.
According to the annual report 2007 of the Ho Chi Minh Stock Exchange, Agriseco took
the lead in shares and bonds-dealing market share, and ranked third in bond brokerage
market share.
In 2007, Agriseco earned a pretax profit of VND129.5 billion ($8.1 million), up 215.9%
on year, and revenues of VND755.4 billion ($47.2 million), rising 27.2% against 2006.
The Vietnam Bank for Industry and Trade (Vietinbank) has recently also announced to
privatize its securities offshoot within this year. (www.agriseco.com.vn, CafeF Jul 8)
Sacombank Posts Profit of VND754 Bln in H1
Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), the country’s second
biggest listed banks said on its website that it earned pretax profit of VND754 billion
($47.1 million) in the first six months of this year, rising 23% on year.
The bank had total deposit of VND64.2 trillion, outstanding loans of VND38.3 trillion in
the period. Its total assets reached nearly VND74.9 trillion, up 95% on year, it reported.
Amidst difficulties of the Vietnamese economy and the banking industry, Sacombank
still maintained its stable and safe growth rate. It now takes lead among commercial joint
stock banks in operation network with over 225 transaction offices nationwide.
Sacombank is also the first Vietnamese lender approved to open branches in Laos and
Cambodia. It earlier launched a representative office in China’s Guangxi province.
The HCM City-based bank, with a registered capital of VND4.4 trillion, is currently
among blue-chips with high liquidity on the local stock market. Its shares are traded at
VND25,800 each. (www.sacombank.com.vn, Vietnam Economic Times Jul 10 p11,
Youth Jul 10 p15)
WSS, Vietinbank Chuong Duong Shake Hands in Financial Services
The Wall Street Securities Company (WSS) and the Vietnam Bank for Industry and
Trade (Vietinbank)'s Chuong Duong branch have clinched a cooperation deal to jointly
develop financial and securities services, local media reported.

393. Wall Street Gold JSC (WSG) and Vietinbank Securities Company have also joined the
comprehensive agreement.
Vietinbank Chuong Duong pledged to provide credit for WSS, WSG, customers of these
two firms, and manage securities accounts of WSS's investors.
The two stock brokers WSS and Vietinbank SC have also shaken hands in providing
professional securities services, underwriting contracts, corporate financial consultancy,
and securities investment consultancy.
The four sides will jointly establish gold order-receiving agents in the network of
Viettinbank Chuong Duong and Vietinbank SC.
WSS made its debut in Hanoi in April, with a registered capital of VND168 billion
($10.5 million). It targets to become the biggest securities company in Vietnam. (CafeF,
Business Forum Jul 8)
HOSE to Allow More Securities Firms to Test Remote Trading
The Ho Chi Minh City Stock Exchange (HOSE) plans to add more 45 securities
companies to test the new remote trading system from July 28, bringing the total number
of brokerages to apply such kind of trading to 70.
The action will be taken after 25 securities brokerages have tested the remote trading
smoothly, said HOSE deputy director Nguyen Manh Hung.
The exchange is upgrading the network system and also building a gateway to support
connection between the system of HOSE and securities companies, he said.
Remote trading will help accelerate market activity by allowing buy and sell orders to go
from brokerages directly to the bourse.
The current system requires representatives from securities firms to physically input the
order at the exchange. (Vietnam Economic Times Jul 10 p9)
Jul 10: Vietnam Shares End Up on Inflation Control Hopes
Vietnam's shares closed higher Thursday for the third day in a row on local buying on
expectations that the government will be able put inflation under control in coming
months, traders said.
“Buying interest remains high after the government affirmed it will keep oil prices steady
in the remaining months this year, which is expected to help ease inflation,” a Hanoi-
based trader said.

394. Nguyen Cam Tu, Deputy Minister of Industry and Trade, forecast that inflation will get
lowered in July when the government’s anti-inflation measures will take more effects, he
added.
VN-Index today rose 7.05 points, or 1.6%, at 446.6.
Market volume was 12.3 million shares valued at VND406.6 billion Thursday, down
from 14 million shares valued at VND508.4 billion Wednesday.
VTO, today’s most actively traded stock, gained 2.5% at VND16,600 on 1.3 million
shares, of which foreign investors bought 157,000 shares and sold 649,000 shares.
STB, the second most active stock, surged 2.8% at VND25,800 on a trade of 1.3 million
shares.
SAM closed 1.5% higher at VND26,400. Of total 653,590 shares traded, foreign
investors bought 23,180 shares and sold 293,700 shares.
DXP is the most advancer, rising 3% at VND20,600 on 4,700 shares.
In the downside, ITA closed down 2.6% at VND93,000 on 138,180 shares, including
51,140 shares bought and 55,130 shares sold by foreigners.
SJ1 is the biggest decliner, falling 4% at VND19,000 on 590 shares.
In total, 103 stocks ended higher, 40 lower and 10 unchanged.
All four fund certificates closed higher. (HOSE July 10)
Vietnam News
July 9, 2008
Inter-bank Forex Rate: $1=VND16,521
Banking & Finance:
BIDV Cuts Loan Rates, Ensuring Sufficient Foreign Currencies
The Bank for Investment & Development of Vietnam (BIDV), the country's second
biggest bank by assets, will lower lending interest rates from today [July 9] and ensure a
sufficient supply of foreign currencies, local state media reported.
BIDV is the first commercial bank in the country to reduce lending interest rate, which
has so far reached a ceiling level of 21%.

395. It is in response to the call by the local government and the State Bank of Vietnam to ease
difficulties for businesses and help curb inflation and stabilize the macro economy, said
BIDV's chairman Tran Bac Ha at a press briefing in Hanoi.
Under the BIDV’s interest rate reduction program, the rates on Vietnam dong loans will
decrease by 0.2%-0.6% and those on foreign currencies by 1%-2% against the currently-
offered levels.
Customers in key industries, such as oil, cement and steel and manufacturers of essential
goods such as medicines, foods, water and transport companies will also enjoy cheaper
loans.
As of late June, the Hanoi-based lender had total assets of VND224.26 trillion and total
outstanding loans of VND130.39 trillion, up 10.3% and 31.9% on-year, respectively.
BIDV raised VND159.08 trillion in deposits in the first six months, 22% of which were
in foreign currencies. BIDV's deposit growth surpassed the 7% growth of the whole
banking sector, Ha said.
The unlisted bank reported a pre-ax profit of VND604 billion in the first six months of
this year, up 44% on-year as it processed more payment services such as domestic and
international settlements.
Ha said the lending interest rate cuts would reduce VND320 billion from BIDV's annual
profits this year which was projected to rise 48.8% after a jump of 82% in 2007
BIDV has actively participated in the monetary market, playing a leading role in
stabilizing exchange rates in the forex market as instructed by the SBV.
BIDV plans to set up its financial offshoot in Czech and Hong Kong in the third quarter
of this year and a joint venture bank in Russia late 2008. (Youth Jul 9 p15, Young People
Jul 9 p7, People Jul 9 p8, Vietnam Economic Times Jul 9 p5)
Vietnam Uses Hotlines, Money to Buy Info to Combat Forex, Goods Hoardings
Vietnamese authorities have recently taken bold steps to set up hotlines and use money to
fight forex, goods hoardings and speculations in order to stabilize the economy and
combat soaring inflation, Vietnamese state media said.
The Ministry of Finance has just issued a regulation to pay at most VND50 million
($3,000) for information in the fight against goods speculation, hoarding and fake
commodities, the Thoi Bao Kinh Te newspaper said Wednesday.
The ministry also said that information denouncers will enjoy 10% of the value of each
contraband or smuggling case and maximal VND30 million in case of goods confiscated
for destruction or contrabands of small values.

396. Early this month, the State Bank of Vietnam, the country’s central bank, said it decided to
set up hotlines to deal timely with foreign currencies hoarding to stabilize the forex
market. The bank recently widened forex trading band to plus and minus 2% and released
about $400 million to stabilize the forext rates.
Prime Minister Nguyen Tan Dung in his urgent dispatch Tuesday declared a war against
goods hoarding and speculations by requesting all heads of provinces and cities
nationwide to tighten supervision over consumer goods prices quotations.
The government ordered no prices hikes of essential goods until the end of this year.
To cool down overheated economy, the government has lowered the country’s GDP
growth rate to 7%, planned to cut 10% of the public investment and a fourth of g-bond
investment projects, curb credit growth to less than 30% this year. (Vietnam Economic
Times Jul 9 p2)
DongA Bank, MoneyGram Jointly Offer Remittance Forwarding Service
Dong A Joint Stock Commercial Bank (DongA Bank) July 8 signed a cooperation deal
with an international money transfer business to provide a door-to-door foreign
remittance forwarding service.
The service will be carried out within 12 hours for clients in big cities and 24-36 hours
for those in other localities.
MoneyGram Asia-Pacific and Southeast Asia Regional Director Nick Cunnew said the
service is significance of clients, particularly the elderly. He also said that the remitters
and beneficiaries are not required to pay any supplementary fees for this door-to-door
service.
Dong A Bank General Director Tran Phuong Binh said in the first six months of this
year, a total $631 million in foreign remittance passed through his bank. The figure was
$1 billion last year. (Young People Jul 9 p7)
Vietnam to Further Control Banks’ Capital Hikes
The State Bank of Vietnam (SBV), the country’s central bank, will tighten control over
the increase in registered capital of joint stock commercial banks.
The SBV has just amended the regulation on shareholder, stake and registered capital of
joint stock banks, in which banks must show the scheme of capital increase approved by
shareholders and the demand for the hike.

397. Joint stock banks have to point out how much capital to raise and how many times of
issuance. They are also required to prove efficiency of operation based on the increased
capital and to show growth of assets, credit, deposits, borrowings and profitability.
Lenders have to evaluate governance, management and control of the board of directors
and managers and internal control system upon the new capital scale.
The SBV asked its branches in provinces and cities to appraise and evaluate the capital
hikes of joint stock banks and supervise their operations.
Over the past two years, joint stock banks have been racing to raise their registered
capital in order to expand business and improve competitiveness.
According to the Decree 141/2006/ND-CP dated November 22, 2006, joint stock and
joint venture banks are required to boost their registered capital to at least VND1 trillion
by the end of 2008 and VND3 trillion by 2010. (Chinhphu Jul 9)
Trade:
U.S. May Grant GSP to Vietnam Next Fall
The U.S. may grant the Generalized Systems of Preferences (GSP) to Vietnam exports
next fall, a sign proving the ex war foes are tightening the closer trade and investment
cooperation ties after Premier Nguyen arrives in Washington recently, Vietnamese state
media said.
Now Vietnamese exports to the U.S. market are imposed with differed taxes and if GSP
is approved Vietnam like other exporters to the U.S. will have a number of commodities
exempted tax and other goods to enjoy preferential taxes, Vietnam News Agency said.
The U.S. normally applies GSP to countries which are WTO members and granted
Permanent Normal Trade Relations (PNTR) and Vietnam now satisfies both
requirements.
During the recent landmark visit by Vietnamese Prime Minister Nguyen Tan Dung to the
U.S. June 23 to 26, President Bush reaffirmed that the U.S. is considering Vietnam’s
request to join GSP program.
Between Jan and April, bilateral trade between Vietnam and the U.S. jumped 36.93% to
$4.72 billion, the U.S. Department of Commerce said. Of which, Vietnam exported $3.64
billion worth of commodities, up 21.92% and imported $1.08 billion goods, up 133.41%
on year.
The bilateral trade is expected to surpass $15 billion this year, as compared with $12.444
billion in 2007. (Vietnam News Agency Jul 8, Vietpan Database)

398. Industry &Trade Ministry Urged to Tackle Production, Export Difficulties
Deputy Prime Minister Hoang Trung Hai has asked the Ministry of Industry and Trade
(MoIT) to take measures to solve production and export difficulties in the remaining
months of this year, local media reported.
The cabinet official made the request at an online conference held by the MoIT in Hanoi
July 8 to review its activities in the first half of this year and work out tasks for the
second half.
The MoIT was also requested to ensure an adequate supply of essential commodities and
assist businesses, particularly those working in the oil and gas, garment and power
sectors, to iron out snags and achieve a steady growth in the rest months of the year.
If the Dung Quat oil refinery is not put into operation in February 2009 as scheduled, it
will fail to secure a 30% balance in national oil reserves, said Mr Hai.
He also asked the power sector to resume power production and shorten the test-run
period of the Ca Mau 1& 2 and Nhon Trach 1 power plants to ensure an adequate supply
of power for daily production and domestic use.
“For any reasons, EVN is blamed for the current power outage that badly affects
production in particular and the whole economy in general,” Hai noted.
“The national economy will incur more difficulties in the second half of this year if these
issues are not addressed properly,” the deputy PM said.
He reaffirmed the Government’s determination to curb inflation, considering it a top
priority task, and stressed the need to cut down on sources of capital allocated for
inefficient projects to invest in highly efficient key projects.
Speaking at the conference, representatives from PetroVietnam said that it has stopped
and delayed 112 projects totaling VND6 trillion ($365.85 million), accounting for nearly
20% of total capital registered with the government this year in a bid to curb inflation.
Meanwhile, EVN said it decided to cancel 500 projects worth VND1.8 trillion ($112.5
million), making up 4.18% of its total investment this year.
During the meeting, Deputy PM Hai also urged the MoIT to work closely with its
affiliates to seek out solutions to boost exports and reduce imports with the aim of
balancing the trade deficit. He said the ministry must enhance its management capacity to
stabilize the domestic market and ensure a good balance between the supply and demand
of essential commodities.
The industry and trade sector aims to increase exports by 25% in the second half of this
year to reduce the trade deficit, said the MoIT minister Vu Huy Hoang, adding that it

399. strives to keep the trade deficit of less than $20 billion, and to ensure an adequate supply
of essential commodities. (VOV Jul 8, News Jul 9 p1&5, Capital Security Jul 9 p1&5)
Vietnam Grants Automatic Export License to Iron, Steel Items
The Vietnamese Ministry of Industry and Trade has decided to temporarily apply the
granting of automatic export license to iron and steel items, state media reported.
The ministry demanded granting automatic export license to iron and steel must be
conducted under the form of confirming merchants’ application for iron and steel export.
When doing export procedure, beside the export file under Customs body’s regulations,
exporters will have to present to the Customs agency application for iron and steel export
that has been confirmed by regional Export-Import Management Department under the
Ministry of Industry and Trade.
The ministry said regional Export-Import Management Department will consider
confirming traders’ application for iron and steel export for next times when these traders
have exported 80% onwards of the volume that has been granted with automatic export
license earlier. (Vietnam News Agency Jul 9)
Industry:
Vietnam Prepares for $10 Bln Oil Refining-Petrochemical Project in South
Sate-owned oil monopoly PetroVietnam and relevant ministries and agencies July 8
gathered in Vung Tau city to discuss measures speeding up preparations for $10 billion
Long Son oil refining-petrochemical project in southern Ba Ria – Vung Tau province,
state media reported, citing PetroVietnam sources.
The Vietnamese government has approved in principle the project that will cover a total
1,320 hectares, PetroVietnam said.
The project comprises an oil refinery costing at least $6 billion and a petrochemical
complex valued at around $3.78 billion to be abjection to the refinery, PetroVietnam
attributed.
PetroVietnam, Vietnam National Chemical Corp (Vinachem), and two Thai firms SCG
Chemical and Thailand Plastic Company-TPC are set to carry out the project with hoped
completion in 2013.
Once implemented, the project will push around 1,044 households with 4,016 people in
Long Son island of Long Son commune in Vung Tau city, the municipal government
said.

400. Ba Ria – Vung Tau province will grant licenses for Long Son oil refining-petrochemical
industrial zone, oil refining-petrochemical and port project soon, said Tran Minh Sanh,
chairman of the provincial People’s Committee.
Without major oil refineries, Vietnam now has to import almost of petroleum products.
The country was estimated to have spent $5.92 billion importing 6.81 million metric tons
of petroleum products in the first six months of this year, up 68.9% on year and 4.4%,
respectively.
The first oil refinery Dung Quat is under construction in central Quang Ngai province
with expected operation in next February to process 6.5 million tons of crude oil a year
and meet more than 33% of the domestic demand. (Young People Jul 9 p17, The People
Jul 9 p2, VTC News Jul 8, Vietpan)
EVN Loses VND2.1 Tln due to PetroVietnam-sourced Power Purchases
State-owned Electricity of Vietnam Group (EVN) have so far lost up to VND2.1 trillion
($127.27 million) due to power purchases from the national oil monopoly PetroVietnam
group, said EVN general director Pham Le Thanh.
EVN buys PetroVietnam-sourced power at 8 US cents/kWh but sells out at only 5 US
cents/kWh, Thanh told Tuoi Tre (Youth) newspaper in a recent interview.
EVN purchases all of electricity generated by PetroVietnam; however, in fact
PetroVietnam produces so modest power amount that hits only 150 MW June 30 out of
total expected 1,800 MW, Thanh attributed.
In early May when rains came more frequently and the water levels of hydroelectricity
lakes rose considerably, EVN mobilized maximal capacities of its hydropower plants to
feed the national demand instead of using PetroVietnam’s expensive power.
The EVN’s leader agreed to a suggestion of universalizing power generation while
pointing out that competitive power price is an essential factor to attract investors.
Regarding recent consecutive blackouts, Mr. Thanh said it is unavoidable as the national
power system is facing a power shortage of around 2,000 MW due to unstable operations
of some newly-operated power plants, breakdowns at some turbines, suspension of some
outdated turbines for maintenance, and low water levels at main hydropower lakes.
EVN always prioritizes production and people’s essential demand like hospitals, schools,
clean water supply, traffic signals and jails; however, it seems to disagree with power
supply for public lighting system at night.
Of 36.44 billion kWh Vietnam produced in the first half of this year, EVN produced
25.33 billion kWh, up 10.7% on year while the rest of 11.11 billion kWh was mobilized
from local and foreign sources, up 15.6% on year.

401. EVN plans to spend $160 million on buying 3.5 billion kWh of electricity from China in
2008, up 31% compared to 2.67 billion kWh of electricity of last year. (Youth Jul 9 p3,
Vietpan)
Vietnam Steel Production Up 6.7%, Consumption Up 8.2% in H1
Vietnam’s rolled steel output reached 1.96 million tons in the first half, up 6.7% on-year
and steel sales hit 1.82 million tons, a rise of 8.2% on-year, the Thoi Bao Kinh Te Viet
Nam newspaper reported, citing the Ministry of Industry and Trade.
In the period, the world’s steel market as well as Vietnam’s was impacted by China’s
policy on limiting steel ingot exports, so Vietnamese ingot import reduced.
At present, price of ingot imported from China is standing at $1,200-$1,300/ton.
Abiding by the government’s direction on curbing inflation, selling price of construction
steel by enterprises under the Vietnam Steel Corporation is some VND2 million/ton
lower than joint ventures’.
Construction steel prices are forecast to increase in final months of the year. (Thoi Bao
Kinh Te Viet Nam Jul 9 p1)
250,000-ton-of-clinker-per-day Plant Goes on Stream
Cong Thanh cement plant was officially put into operation yesterday [Jul 8] in northern
central Thanh Hoa province after two years of construction.
The production line, test-run from July 7-8, turned out more than 1,000 tons of clinker.
The factory has a planned capacity of 250,000 tons of clinker a day in the first phase.
The new cement plant is expected to make annual revenues of VND650 billion ($39.4
million) and contribute VND30 billion to the local budget each year. (Thoi Bao Kinh Te
Viet Nam Jul 9 p2)
Military-Run Company Starts EUR15 Mln Shipbuilding Contract
The Song Thu Company under the Ministry of Defense July 7 began building the first
vessel under a EUR15 million contract signed with the Netherlands’s Damen Shipyard
Group, Vietnam News Agency reported.
The first fast crew supplier 5009 (FCS2009), designed by Damen, will be is 50.3 meters
in length, 9.2 meters in width and 4.2 meter in height.

402. The ship will have a steel hull and large deck and is capable of accommodating 80
people.
Over the past five years, Song Thu and Damen have joined hands to build ships used for
cleaning up oil spills and for Vietnam’s maritime police and navy to conduct rescue
work.
The Vietnamese shipbuilder June 10 launched a 5,600 HP tug boat central Danang city,
the first of four boats being built under a VND300-billion contract signed with the United
Arab Emirates, the news source said.
State media said the firm has seen a sharp increase in revenues with around VND400
billion ($25 million) last year, up from up from VND160 billion in 2006, VND102 billion
in 2002 and VND60 billion in 2001. (Vietnam News Agency Jul 8, Vietpan Database)
380 Firms Gather for Int’l Precision Engineering Exhibition
More than 380 companies have arrived at Hanoi to participate in the fourth Vietnam
International Precision Engineering, Machine Tools and Metalworking Exhibition and
Conference (MTA) which was opened today [July 9], Vietnam News Agency reported.
Eighty percent among those are from 25 foreign countries and territories, including
prestigious international trademarks.
Businesses at the MTA Vietnam 2008 will showcase their best and the latest advanced
technologies to Vietnam’s automatic, precision engineering, electric, electronics and
other industries, the Vietnam Chamber of Commerce and Industry (VCCI) said.
The technologies will include the latest solutions for the production of metal and sheet-
metal cutting, cutting tools, metal forming, test and measurement tools, that are expected
to help increase business profits and efficiency.
This is the first time the exhibition has been held in Hanoi after three previous successful
editions in Ho Chi Minh City, according to the VCCI, the event organizer.
The four-day event will take place at the Giang Vo Exhibition Center. (Vietnam & World
Economy Jul 8 p8)
Agriculture:
Vietnam Rubber Export Prices Hit Roof
Export prices of Vietnamese rubber were still high over the past six months and hit
record highs in June, helping increase the country’s export revenues by 7.2% in the first
half of 2008, an official from the Vietnam Rubber Association (VRA) said.

403. Tran Thi Thuy Hoa, general secretary of the VRA said Vietnamese rubber export prices
hit roof at $2,875 a ton in June, up 31% on year and by $600 a ton from January 2008.
In June, Vietnam exported 40,000 tons of rubber, bringing the country’s total rubber
export volume to 227,892 tons in the first six months of 2008, down nearly 20% on year.
The exports brought in $574 million to the country, up 7.2% on year, Hoa said.
Major importers included China, South Korea, Taiwan, Japan, and Germany.
Vietnam expected to export around 780,000 tons of rubber worth $1.5 billion in 2008, up
4% and 2.3% on year, respectively. (The Youth July 9 p14)
Vietnamese Paper Producers Ask for Zero Import Tax
Vietnam Pulp and Paper Association (VPPA) has suggested the Government reduce
import tax on paper to 0% from current 5% in order to prevent paper prices from soaring,
local media reported.
The association said prices of paper products increased by 21% in Vietnam so far this
year, forecasting that the prices will surge further in the near time due to increased oil
prices, thin paper material supply and high pulp import cost.
“Vietnamese paper producers can not help raising prices as pulp imports account for
nearly 70% of demand,” the Vietnam Agriculture reported, citing the association.
Meanwhile, local producers are finding hard to access bank’s loan to import pulp and
material materials as lending interest rate has reached 21% from 8% last year.
The VPPA forecast domestic demand for paper will hit 1.98 million tons yearly by 2010,
including 1.15 million tons of packing, 385,000 tons of newspaper, and 325,000 tons of
other kinds of paper.
To meet demand, local paper industry will have to build pulp mills with above
100,000-150,000 tons per year, and paper mills with above 200,000-250,000 tons a year.
In the first half of 2008, spent $403 million on importing 509,000 tons of paper, up
44.9% on year in value and 29.6% in volume, the General Statistics Office said. (Vietnam
Agriculture July 9 p3, Vietnam Economic Times July 9 p1)
Vietnam PM Okays 560,000 Ton Fertilizer Plant in Thanh Hoa
Vietnamese Prime Minister Nguyen Tan Dung has agreed to construction of a fertilizer
plant with total capacity of 560,000 tons yearly in Nghi Son IZ, Tinh Gia district, central
Thanh Hoa province.

404. The plant is part of the national chemical development program by 2010 and toward
2020.
HCM City-based Cong Thanh Cement JSC, the project investor, will invest around $670
million to build the plant.
The project is expected to create jobs and increase domestic fertilizer supply for northern
central region.
Vietnam reportedly spent $1.029 billion importing 2.185 million tons of fertilizers in the
first six months of 2008, up 130.9% on year in value despite a slight rise of 17.8% in
volume, report by the General Statistics Office (GSO) showed. (Saigon Liberation July 9
p11)
Business:
Vietnam Auto Sales Rise 141% in H1
Auto sales in Vietnam rose 141% on year to 68,609 units in the first half of this year
despite a considerable decrease in terms of volume last month, according to statistics
released by the Vietnam Association of Automobile Manufacturers (VAMA).
On-year increase was led by sales of commercial vehicles, which were up 225% from a
year ago, while passenger car sales growing 90% to 12,296 units, the association said.
The statistics also showed that local carmakers sold 9,749 units in June 2008, up 60%
from a year ago but down 1,745 units over May as a result of the government’s policy to
limit consumption in the context of soaring inflation and high trade deficit.
In the period, Japan's Toyota topped the list with 12,510 units sold, followed by domestic
companies Vinamotor with 14,594 units and Truong Hai with 11,295.
Some joint ventures also saw growth. Honda sold 790 units in June (+ 164), Mercedes
232 (+ 21), and Hino 388 (+ 104).
The Ministry of Finance has two times raised the import tax on car parts so far this year.
Car imports in the first six months surged 247% to $1.6 billion, with the volume of fully
assembled vehicles jumping more than 400% to 42,000 units, government figures show.
Following table is the breakdown of car sales, market shares and the growth of the 17
VAMA carmakers in January-June 2008.
On Year
Sale Growth
No Car marker (Unit) (%)
1 Vinamotor* 14,594 N.A.

405. 2 Toyota 12,510 +53
3 Truong Hai 11,295 +153
4 Vinaxuki 5,517 +110
5 GM Daewoo 6,883 +151
6 Ford 3,887 +89
7 Honda 3,606 +115
8 VinaStar (Mitsubishi) 1,770 +2
9 Isuzu* 2,070 +52
10 Visuco (Suzuki) 1,728 +70
11 Mekong (Fiat, Ssangyong, PMC) 1,268 +239
12 Hino* 1,497 +230
13 Mercedes-Benz Vietnam 1,134 +32
14 SAMCO 347 +43
15 VMC (BMW, Mazda, Kia) 281 -41
16 Vinacomin – Vinacoal* 222 +100
17 Vindaco (Daihatsu) N.A -100%
Total 40,087 +141%
Note: *: not including bus chassis. (VAMA Release June 2008, GSO June 2008)
Vietnam Fashion Industry Yet to Mature: Seminar
The lack of talented designers, unprofessional distribution networks and great
dependence of imported material imports have hindered Vietnam’s fashion industry, said
a seminar organized in Ho Chi Minh City July 4.
Dang Minh Hanh, director of the Fashion Design Institute (Fadin), said most local
designers have not been trained thoroughly and have uncreative designs.
Viet Tien, one of the top brand names in Vietnam fashion, requested 50 professional
designers from Fadin, which could only provide five. The Viet Tien Garment Company
plans to use VND100 billion ($6.06 million) to recruit professional designers.
Fashion with no outstanding features cannot meet the demands and tastes of potential
customers, said Nguyen Trung Tin, deputy chairman of the HCM City People's
Committee.
Only 30% of locally made clothes are designed by Vietnamese designers, while 70% are
copied from international designers, according to the International Garment&Textile
Training Centre.
Tin also emphasized the important role of distribution networks in Vietnam's fashion
industry.

406. Vietnamese fashion still lacks access to international trading centers because the
available distribution is limited, unprofessional and unconcentrated, said Tin.
The Viet Tien Garment Company and Vera International Corporation have now set up a
more effective distribution outlets to establish brand recognition and product orientation
via a chain of retail shops where customers can become exposed to its products first hand.
(VietNamNet Jul 7, Vnexpress Jul 7)
Vietnam Airlines Once Again Postpones Direct Flight to the U.S.
The national flag carrier Vietnam Airlines will not be able to launch a direct flight to the
U.S. this year as scheduled, the Tien Phong (Pioneer) newspaper reported, citing the Civil
Aviation Administration of Vietnam (CAAV).
The administration explained that it has to delay the flight because it has not yet
increased its flight safety management ability.
Vietnam Airlines had planned to launch the flight late this year, after several times of
delay to meet strict requirements on flight safety by the U.S.
The U.S. Trade and Development Agency (USTDA) has supported $1.4 million to a
three-phase project helping Vietnam increase flight safety management ability.
Pham Ngoc Minh, general director of the Vietnam Airlines said the carrier will face a lot
of difficulties in opening the fight, noting that competition by other international airlines
is the biggest hindrance.
Currently, around 11 or 12 airlines are offering services on the Vietnam-US route.
An aviation analysts said Vietnam may set up direct flight to the U.S. late second quarter
of 2009 at soonest. (Pioneer July 9)
Foreign Investment:
Vietnam Gtel, Russia VimpelCom Set up Joint Venture
Vietnam’s GTel and Russian telecommunications provider Vimpel-Communications
July 8 inked a cooperative pact to establish a mobile telecommunications joint venture in
Vietnam called GTEL-Mobile, the Thanh Nien newspaper reported Wednesday.
Under the deal, Gtel will hold a 60% stake in the joint venture and VimpelCom will
invest $267 million for a 40% stake in Vietnamese joint venture.
Global Telecommunications Corp., a Vietnamese state-owned business, and its subsidiary
GTEL TSC, are VimpelCom's partners in the venture. VimpelCom will receive 40%
earnings in GTEL-Mobile, while Global Telecommunications will hold 51% and GTEL
will own 9%.

407. Vietnam earned VND33 trillion ($2 billion) in revenues from telecom activities in the
first half of 2008, up 32% on year, according to the Ministry of Information and
Communications.
Local telecom companies also reported 12.8 million new phone subscribers in the six-
month span, raising the total number of phone subscribers in the country to 61.8 million.
Of the figure, mobile phone subscribers account for 78.8%.
At present, Vietnam’s average teledensity is 69.5 phones per 100 residents. (Young
People July 9 p2, Youth July 9 p6, The People July 9 p2, Vietnam Economic Times July
9 p13, Saigon Liberation July 9 p1)
Infrastructure:
Vietnam Southern Province to Say “No” to New IPs by 2010
The southern province of Dong Nai has said “No” to any more new industrial parks (IPs)
or upgrade industrial clusters into IPs from now to 2010, following a decision of the
provincial People’s Committee to limit pollution.
The committee said the province will also pay more attention to collecting and treating
industrial solid waste at the current IPs which are now in alarming pollution.
Dong Nai now tops the country in the number of industrial park with 27 cover more than
7,000 hectares, of which, 55% are filled by projects.
However, just 11 IPs among these have built waste treatment systems; therefore; only
20,000 cubic meters of sewage released from province’s 13 industrial parks are treated
each day.
Under the decision, 94 companies in Bien Hoa IP are scheduled to be moved to other
areas to ease pollution in the Dong Nai River.
The committee said that halting construction of new IPs will help province further focus
on upgrading infrastructure and calling investment into existing parks, with priorities
given to hi-tech projects.
The province’s IPs have to date attracted 928 foreign direct investment (FDI) projects
worth some $13.1 billion, making Dong Nai rank the third position in FDI attraction in
Vietnam. (Vietnam & World Economy July 8 p5, Vietnam News Agency July 7)
Tourism:
EU to Fund EUR12 Mln for Vietnam to Develop Tourism Human Resources

408. The European Union (EU) has pledged that it will fund EUR12 million to help Vietnam
develop tourism human resources from now up to 2010, the Lao Dong Xa Hoi newspaper
said, citing the Vietnam National Administration of Tourism (VNAT).
Of the sum, EU will finance EUR10.8 million, and EUR1.2 million from the
correspondent capital of Vietnam, the newspaper said.
The project aims to improve standard and quality of tourism human resources and help
the government and businesses maintain quantity and quality of trained human resources.
The project will also focus on raising the quality of tourism human resources that will
meet professionalism requirements and award 13 certificates for restaurant and tourism
operators.
Vietnam’s tourism sector reported VND37 trillion ($2.3 billion) revenues in the first half
of this year, fulfilling 60.7% of its yearly plan.
The country is targeting to receive 4 million-4.4 million foreign visitors and 19
million-20 million domestic tourists with total revenues of VND56 trillion, or $3.5 billion
this year.
The tourism sector now contributes 8% to Vietnam’s national GDP. (Social Labor July 8
p2, VietNamNet Bridge)
Politics & Law:
CPVCC Meeting to Debate Vietnam Societal Foundations
The Communist Party of Vietnam’s Central Committee (CPV) has started a week-long
meeting to discuss urgent economic issues related to agricultural production, status of
farmers and working class, and the role of intellects in stormy urbanization today [July
9], Vietnamese state media said Wednesday.
Communist Vietnam, a success story known for its sustainable and high GDP growth
rate, is shifting to a market-oriented economy by building more IPs and EPZs, but is
neglecting its 4,000-year agricultural production strengths, implicit threats undermining
the country’s food security, analysts said.
Fundamentals of Vietnam’s agriculture-based society are being shaken by fast
urbanization, which is turning Vietnam into a massive construction site and pushing aside
more farmers whose lands taken reached up to 50,000 hectares each year for non-
agriculture purposes between 2001 and 2007, they said.
Agriculture and Rural Development Minister Cao Duc Phat recently warned that with
such a rapid urbanization and industrialization pace Vietnam is facing food security
problems.

409. Between five million and six million Vietnamese still lack foods and this group is always
most vulnerable to any economic restructuring, the World Bank’s recent report said.
And more than 70% of the country’s population is farmers according to state media.
Le Dang Doanh, a leading economist in Vietnam, has recently warned of unprecedented
impacts by FDI pouring into the Asean country’s real estate.
Now it is high time for policy makers and one-ruling party to take a review, they said.
At the plenum this time CPVCC, one of Vietnam’s most powerful body, will also discuss
the role of working class and intellects in the context of global economic integration with
unprecedented and tough challenges from WTO club, the Lao Dong newspaper said
Wednesday.
As up to 50% of the university graduates are unqualified and have to be retrained,
according to the Vietnamese Ministry of Education and Training’s latest statistics.
Former Minister of Trade Truong Dinh Tuyen, who has a radical voice, proposed that
intellects need favorable conditions to contribute to the country’s policy making.
Party Chief Nong Duc Manh recently mentioned contributive roles of intellects to the
country’s development, a rare change seen in the ruling leadership. (Labor Jul 9 p1, HCM
City Law Jul 9 p3, Vietpan Database)
Vietnam Condemns Terrorist Attack to Indian Embassy in Afghanistan
Vietnam strongly condemns the barbaric attack on the Indian Embassy in Afghanistan’s
capital of Kabul on July 7 and sent deep condolences to families of the victims,
Vietnamese foreign ministry spokesman Le Dung said.
The Vietnamese spokesman made the statement July 8 in response to correspondents’
questions about Vietnam’s reaction to the suicide bombing at the Indian embassy, which
left 41 lives and injured 150 others.
UN Security Council’s July President, Vietnamese Ambassador to the UN Le Luong
Minh released Monday a statement, saying the members of the Security Council have
underlined the need to bring the perpetrators, organizers, financers and sponsors of this
reprehensible act of terrorism to justice, and urge all States, in accordance with their
obligations under international law and relevant Security Council resolutions, to
cooperate actively with the Afghan authorities in this regard.
As the UN Security Council President, Vietnam will chair discussions and meetings in
July on a series of complicated issues such as those related to Kosovo and Myanmar, the
deployment of the UN-African Union joint peacekeeping force in Darfur, and the nuclear

410. issues of Iran and the Democratic People’s Republic of Korea. (Vietnam News Jul 9 p3,
Website of Government Jul 9)
Brazilian President Starts Vietnam Visit
Brazilian President Luiz Inacio Lula da Silva will arrive in Vietnam today to start his
two-day visit at the invitation of the host President Nguyen Minh Triet, local media said.
The trip is part of the Brazilian President’s Asian tour to Japan, Vietnam, East Timor and
Indonesia.
Luiz, being accompanied by Brazilian foreign minister, a delegation of government
officials and businesses, is scheduled to hold talks with President Triet, Party General
Secretary Manh, Prime Minster Dung, National Assembly Chairman Trong, meet with
local businessmen and attend a conference “Vietnam-Brazil: Building New Partnership”.
Vietnam and Brazil offered a joint statement on building the bilateral comprehensive
partnership on the occasion of Vietnamese Party Chief's visit to the South American
nation May last year.
Brazilian Ambassador to Vietnam Lima Neto affirmed the trip will usher in a new
chapter in the relationship with Vietnam.
The Brazilian diplomat believed more leading Brazilian businesses would invest in
Vietnam following the visit.
Neto also said he saw untapped potentials for the two countries’ future cooperation in
culture, sports and tourism, apart from investment and trade. He underlined his country’s
possible assistance to Vietnam in developing a more professional football.
Vietnam and Brazil will celebrate 20th diplomatic ties anniversary in 2009, the
ambassador said, adding a Brazilian film festival will be held in Hanoi this week and a
painting exhibition will take place in Brazil next year to congratulate the event. (Labor
Jul 9 p2, VNA Jul 8)
Czech Pledges 47.3 Mln Krones to Vietnam This Year
The Czech Republic has committed to grant 47.3 million krones to Vietnam this year, up
from 10.5 million krones in 2004, Czech Charge d’ Affaire in Vietnam Roman Musil July
8 said.
Czech Republic has added Vietnam to list of countries that will receive top priorities, he
affirmed.
The Czech Republic has granted a total $18 million ODA for Vietnam. The two-way
trade was $130 million last year, doubling the figure five years ago.

411. Prime Minister of Czech Mirek Topolanek has recently paid a four-day trip to Vietnam
with a series of cooperation pacts and contracts worth up to $2.6 billion signed between
the two sides. (Labor July 9 p2)
Labor & Education:
600,000 Sit for 2nd Session of University Entrance Exam Today
Around 600,000 students are taking part in the second phase of this year’s university
entrance exams, accounting for 66.79% of the total applicant turnout for the phase,
according to statistics from the Ministry of Education and Training (MoET).
The rate is roughly the same with that of the first session, the ministry revealed.
The examinees take tests for group B (math, chemistry, and biology), group D (math,
literature and foreign languages), group C (literature, history and geography) and groups
M, N, H, R, S, T and K.
As planned, they participate in math, biology, history, literature tests today and will take
tests for the other subjects tomorrow.
The phase will end July 10 and the exams for three-year junior colleges will begin on
July 15-16.
This year, the total number of applicants for the entrance exams is 2.2 million, an 18%
increase compared to last year. The ministry decided to raise 2008 enrollment quota for
universities, colleges and vocational training schools to 12%, 22% and 12% on year,
respectively.
The ministry has postponed plans to merge the high school graduation exam and
university entrance exam until 2010 after public concerns about apprehensions on the
merger.
Vietnam reported 2.6 million holders of university and higher education degrees by the
middle of 2007, accounting for 4.5% of the national total workforce by the time.
(People’s Army July 9 p1, Youth July 9 p7, The People July 9 p1, Labor July 9 p2, New
Hanoi Jul 9 p1)
Health & Environment:
Modern TB Hospital to be Built in Vietnam Southern Province
The southern province of Dong Thap July 7 gave the green light to establishment of a
tuberculosis (TB) hospital worth VND94.8 billion ($5.92 million), the Young People
newspaper reported.

412. The modern hospital with 100 sickbeds will occupy 22,611 square meters in My Tho
commune, Cao Lanh district, said the provincial authority.
The project, which will run from 2008 to 2011, is expected to help more TB patients
receive treatment.
Vietnam now ranks 13th among 22 countries having the largest number of (TB) patients
worldwide.
Up to 44% of Vietnam's population are infected with TB, said a recent meeting held in
Hanoi to mark International Tuberculosis Day [March 24].
The country diagnoses around 145,000 new TB patients annually with the fatality rate of
23 per 100,000 residents or 20,000 deaths. (Young People Jul 9 p2)
Vietnam Revokes License of Drug Firm for Illicit Price Hike
The Vietnam Drug Administration under the Ministry of Health has decided to withdraw
Ho Chi Minh City-based Viet Ha company’s license to import finished medicines from
July 8, expect for import of drugs for urgent epidemic prevention, due to its illegal drug
price hike, local media reported today [July 9].
The company’s branch in Hanoi intentionally raised prices of imported medicines higher
than those listed by the administration, said Truong Quoc Cuong, Head of the
administration.
The company also was asked to adjust these drug prices to the old prices and informed it
to the administration before July 10.
The withdrawal showed the ministry’s determination to avoid massive and unreasonable
increases in the local drug market.
Medicine prices have increased 8.93% since early 2007, said the administration.
According to the ministry’s estimate, Vietnam will purchase $1.36 billion worth of drugs
this year, up 16.5% from the previous estimation of foreign health organizations.
On average, the country’s per capita medicine consumption is estimated to reach $15.2
this year, up 13.43% on-year.
Domestic drug production value is estimated to reach $749 million and total import
spending will be $815 million in 2008. (Youth Jul 9 p2, News Jul 9 p1, The People Jul 9
p8)
Vietnam Loses VND814 Bln due to Calamities in Jan-June

413. Vietnam suffered losses of over VND814 billion ($49.3 million) caused by natural
disasters in the first half of this year, up VND720 billion ($43.6 million) on year, the
Vietnam News Agency said, citing the General Statistics Office.
The long cold spell in early 2008 destroyed 200,000 hectares of paddy, killed 122,000
cattle, 1,000 pigs and 290,000 poultries.
The localities supported VND199 billion ($12 million), VND81 billion of which comes
from the government's preventive funds, to help people overcome difficulties.
Deputy Minister of Planning and Investment and chief of GSO, Nguyen Duc Hoa,
emphasized that the country needs to prepare well to tackle with the unusual weather to
minimize damages and losses due to the calamities.
Last year, natural disasters cost Vietnam VND11.5 trillion ($697 million) and left 1,350
people death, injured and missing. (VNA July 9, GSO)
Stock Market:
Local Listed Firms Delay Overseas Listing
Many Vietnamese listed companies including large-scaled businesses such as Vinamilk,
SSI and FPT have to delay their overseas listings and wait for proper time due to
unfavorable domestic and world economic situations, the Securities Investment
newspaper reported.
These enterprises had planned to list on the Singapore Stock Exchange within this year.
In which, the State Securities Commission (SSC) has consider the listing of Vinamilk on
the exchange as a pioneer.
Ngo Thi Thanh Tam, secretary for foreign affairs of the Saigon Securities Inc (SSI)
confirmed that the company would postpone the listing on Singapore until early 2009
because of economic difficulties.
The stock market of the local country is also falling, so the listing at this time is not a
good idea, Tam said. Previously, SSI had planned to float nearly 36 million shares on the
Singapore bourse.
Bui Quang Ngoc, deputy general director of the Corporation for Financing and
Promoting Technology (FPT), said his firm has not yet had any specific listing plan for
2008.
"Our company now has to cope with difficulties in the domestic economy, especially the
issue of foreign currency to import equipment and goods for production and trading, so
we have not thought about the issue," Ngoc added.

414. Meanwhile, a representative from Vinamilk, although worried about the current
economic challenge in the world, said the company will surely list in Singapore within
this year.
Procedures on the listing have been completed, and Vinamilk is just waiting for the reply
from the Singapore exchange and from the SSC, he said.
As planned, the milk producer will issue 5% of its registered capital to raise capital in the
foreign market.
Nguyen Vu Quang Trung, deputy director of the Hanoi Securities Trading Center, said he
supported domestic enterprises to float overseas. However, it is not high time now.
(Securities Investment Jul 8)
Sacombank's Property Value Rises Nearly 100%-Savills Vietnam
The assets value of 68 realty categories the listed Saigon Thuong Tin Commercial Bank
(Sacombank) is holding nationwide is now VND1.64 trillion ($102.5 million), rising
97.74% compared with its initial value, according to the appraisal report of Savills
Vietnam Ltd.
The property value of Sacombank has increased by 168% in Central and Western
Highland region, 73% in HCM City and 75% in the Western and 35% in the Northern
regions.
STB’s property at No.324 Chanh Hung St., Ward 5, District 8, HCM City is now valued
at VND32 billion, up 223.8% over the beginning price, or the general warehouse in Song
Than IP (Binh Duong) is worth VND208 billion, up 517.2%.
Sacombank set up Sacombank Financial Group in May, which is specializing in financial
and non-financial services.
Savills Vietnam Co. Ltd. is a member of the U.K.-based Savills Group, the world leading
real estate service provider. It was set up in May 2007 after Savills acquired Chesterton
Petty Vietnam. (www.sacombank.com.vn, Vneconomy Jul 9, CafeF, New Hanoi Jul 8)
Golden Bridge Holds 49% Stake in Click&Phone Securities
Nhap and Goi (Click&Phone) Securities Company said early this week that it scaled up
its registered capital to VND135 billion ($8.4 million) from VND30 billion after it
recently sold a 49% stake, or 6.615 million shares, to Golden Bridge.
With the stake holding, the Seoul-headquartered Golden Bridge Investment and
Securities Ltd has become a strategic partner in the Vietnamese stock broker.

415. Click&Phone and Golden Bridge are also working to set up Golden Bridge Research
(GBRV) Ltd. specializing in investment and business consultancy, marketing and
investment promotion.
With the support of Golden Bridge, Click&Phone will improve its capacity to affirm its
position on the Vietnam's stock market and penetrate into the regional securities market,
said Dao Huu Hanh, chairman of Click&Call.
Golden Bridge is now managing two funds investing in Vietnam, with total capital of $63
million. Currently, it is holding a 24.8% stake in another Vietnamese stock broker,
Haiphong Securities Co. (Haseco). (Investment Jul 9 p2, Vietnam Economic Times Jul 8
p10)
Techcombank Okayed to Set up Securities Co
Vietnam Technological & Commercial Joint Stock Bank (Techcombank) has got thump-
up from the State Securities Commission to set up Techcombank Securities Co. Ltd.
The company is allowed to carry out such services as securities brokerage, dealing,
issuance underwriting, investment advisory and custody.
Techcombank is required to prepare technical facilities and human resources for the new
company.
Vietnam has licensed 93 securities companies by the end of June 2008. (Vietnam
Economic Times Jul 8 p9)
TCM to Offer VND1 Tln Convertible Bonds
Thanh Cong Garment and Textile Joint Stock Company (TCM) announced that it would
issue 10 million convertible corporate bonds valued at VND1 trillion ($62.5 million) to
domestic and foreign individuals and institutions.
TCM will issue the 3-year bonds in many tranches in one year with at an annual coupon
equal to average 12-month savings interest rate of four state banks including Agribank,
Vietcombank, BIDV and Vietinbank at the time of issuing.
The bonds will be converted at 1-to-3 ratio in the first and second year, and 1-to-2 ratio in
the third year.
The garment maker's bond issue is aimed to raise fund for its real estate projects.
In the first quarter, TCM netted profit of VND9.8 billion and obtained revenues of
VND270.8 billion. (Vneconomy Jul 8)

416. Jul 9: Vietnam Shares End Up on Lower Inflation Hopes
Vietnam's shares closed higher Wednesday for the second straight day as local investors
continued to buy blue chips on hopes that inflation will slow down in coming months
after the government asked ministries, agencies, localities and businesses not to raise
prices of essential goods.
“Many investors start to believe inflation will be abating in July after several banks have
just reduced their interest rates, including the state lender BIDV," a trader with Thu Do
Securities said. "It means that the government's measures to stabilize macro economy are
taking effects."
“Investors are eyeing at bluechip stocks because of their high liquidity, while penny
stocks were sold for profit-taking after they had risen over the past two weeks," he said.
VN-Index today gained 2.84 points, or 0.65%, at 439.55.
Market volume totaled 14 million shares valued at VND508.4 billion Wednesday, down
from 14.7 million shares valued at VND521.9 billion Tuesday.
STB, the most active stock today, rose 2.9% at VND25,100 on 2.8 million shares
changing hands.
DPM, the second most active stock, closed at VND51,500, up 3% from yesterday,
becoming the most advancer. Of total 1.8 million shares traded, foreign investors bought
411,430 shares and sold 212,200 shares.
HPG jumped up 2.5% at VND62,000 on 579,010 shares, including 91,820 shares bought
by foreigners.
Some other blue chips closed higher, such as FPT up 2.7%, PVD up 2.8%, PPC up 3%
and SSI up 2.9%.
SAM ended down 2.62% at VND26,000, pulled down by strong foreign selling. Of total
589,350 shares changing hands, foreign players bought 13,510 shares and sold 227,280
shares.
VNM lost 2.6% to close at VND112,000. Foreign investors bought 164,360 shares and
sold 64,810 shares among total 287,040 shares traded.
In total, 86 stocks ended higher, 55 lower, 11 unchanged and one untraded.
Among four fund certificates, three closed higher and unchanged. (HOSE July 9)
Vietnam News
July 8, 2008

417. Inter-bank Forex Rate: $1=VND16,522
Banking & Finance:
Interest & Forex Rates Start to Fall in Vietnam
Domestic monetary market has started to cool down with interest rates and foreign
currency exchange rate seeing remarkable falls, mostly thanks to a series of measures
taken by the State Bank of Vietnam (SBV), the Vietnam News Agency reported.
Statistics from the SBV showed that interest rates for VND deposits offered by state-
owned commercial banks hovered around 17%-18%/year last week while joint stock
commercial lenders kept the rates at 18%-18.5%, down 0.5%-1% against late June.
Last week, KienLong Bank introduced the highest ever interest rate in Vietnam at 20%
per year. However, after just one day in existence, the SBV forced it to reduce the rate to
19% per year.
In the inter-bank market, the interest rates for VND loans with less-than-one-week
periods also decreased. The overnight interest rate is currently stayed at 17.43% per year
and the rate for one week loans is at 19.85% per year.
Regarding the foreign exchange rate, the SBV said that domestic forex market has
changed positively after the central bank decided to double VND/USD daily trading band
to +/-2%.
July 2, the VND/USD exchange rate among commercial banks varied from VND16,840
to VND16,848, 1.35% higher than those offered before the decision was made.
The exchange rate on the free market on the same day was between VND17,400 and
VND17,550, a decrease of 2.25%.
Analysts believed that interest rates for both VND deposits and loans will be suitably
adjusted soon thanks to the SBV's efforts to improve safety of credit system.
The SBV affirmed that the public would be timely informed of the bank’s measures to
manage the country’s banking system, especially information related to interest rates,
exchange rates and foreign currency management. (VNA Jul 8)
Vietnam: Domestic Banks Trapped, Chance for Overseas Banks-State Media
Many domestic banks in Vietnam, which are still being trapped in property and stocks,
are struggling to raise funds while overseas banks are emerging as tough rivals with
robust assets growth recently, the state-run newswire www.vietnamnet.vn published by
the Ministry of Information and Communications said Tuesday.

418. Due to not loaning local property and stock investors in recent months [apart from money
they bought government-bonds] foreign-invested banks have their good liquidity, rapid
growth and capacity raised in many areas in Vietnam, the newswire said.
In the first half this year, foreign banks and joint venture banks saw their total assets
growing 33% and outstanding loans expanding 50%, much higher than 8% and roughly
20% by the local banking systems.
So far, the outstanding loans the foreign-invested banks have lent have accounted for
only 9.3% of Vietnam’s total banking sector, however, their dollar loans have made up
29.5% of the country’s total dollar lending, the newspaper said.
Vietnam’s retailing banking sector is a promising land with 85 million people, and they
are focusing on small and medium businesses.
HSBC, ANZ and Standard Chartered are taking the lead among them. Standard Chartered
opened a branch and launched retail banking services July 1, 2008. ANZ plans to open
four more transaction offices by the end of the year, and some more branches in Hanoi
and HCM City thereafter.
Meanwhile, most domestic banks postponed plans to expand networks due to financial
difficulties between Jan and Jun while foreign banks tried to enlarge their networks.
(VietnamNet Jul 7)
Taiwanese Insurer Cathay Enters Vietnam
Cathay Vietnam Life Insurance Ltd Co will officially operate in Vietnam from today
[July 8], more than half a year after obtaining business license from the Ministry of
Finance, the Dau Tu Chung Khoan (Securities Investment) newspaper reported.
Taiwan-based Cathay insurer is the first Asian company setting up life insurance arm in
Vietnam so far, the paper said.
Cathay Vietnam has $60 million in chartered capital, which is more than the minimum
VND600 billion ($37.5 million) as regulated by Vietnam law.
At present, Cathay has over eight million customers in Vietnam and targets to expand
business to China.
Vietnam is now home to eight life insurer, including the only state-run Bao Viet. The
other seven are all foreign firms. (Securities Investment Jul 7 p7)
Trade:
Vietnam PM Urges to Regularly Control Goods Prices

419. Vietnamese Prime Minister Nguyen Tan Dung has sent a dispatch to provinces and cities,
asking to regularly inspect and control the selling prices of goods in order to prevent
speculation, the government of Vietnam said on its Web site Tuesday.
Provinces and cities have to boost market management activities to ensure goods to be
sold at the right quoted prices and to avoid hoarding, speculation and smuggling of
goods, especially essential commodities such as food, oil and gas, steel, cement, fertilizer
and medicines.
Violations will be heavily punished.
The PM also urged ministries and agencies, businesses and localities to boost production
to ensure the supply of goods to meeting consumption demand of people.
The state economic groups and corporations must focus on production to enrich supply of
commodities in domestic market, while obeying regulations on price management,
helping the Government to stabilize market.
Recently, prices of many commodities have kept surging, which is partially attributed to
speculation. (Chinhphu Jul 8)
Vietnam-U.S. Trade Soars 36.93% to $4.72 Bln in Jan-Apr
Bilateral trade between Vietnam and the United States in the first four months of this year
jumped up 36.93% to $4.72 billion, said the U.S. Department of Commerce (DOC).
Of the sum, Vietnam exported $3.64 billion worth of commodities, an on-year rise of
21.92%, and imported $1.08 billion worth of commodities, a dramatic increase of
133.41% during the period.
With these figures, Vietnam witnessed a big trade surplus of $2.56 billion with the giant
economy of the U.S.
Among Vietnam’s key exports to the U.S., garments and textiles topped the list with
$1.526 billion, up 27.49% on-year, followed by woodwork products and interior
decoration with $435 million, up 25.1%, footwear with 375 million, up 13.29%, seafood
with 206.7 million, up 11.7%, and farm produce with 212.1 million, up 14.57%.
Vehicles, machineries, aircraft and aviation accessories, steel and plastic products,
livestock feeds and meat and meat-related products are Vietnam’s major imports from the
U.S.
Two-way trade between the two countries is expected to surpass $15 billion this year, as
compared with $12.444 billion in 2007. (Pioneer Jul 8 p13, The People Jul 8 p8, VOV Jul
7)

420. Vietnam to Boost Leather, Footwear Exports to U.S.
The Vietnam and Leather Association (Lefaso) will organize a foreign visit for its
member enterprises to participate in the World Shoe and Accessory fair in the U.S. from
July 27 to August 4, the Nguoi Lao Dong newspaper online reported.
The delegation will also survey Mexico’s footwear market, the newspaper said.
The tours are aimed to boost footwear exports to the North American market.
These activities are part of the national trade promotion program 2008, so the state will
support 100% costs for stands.
Vietnamese footwear exports to the North American market are increasing. Last year’s
exports saw an increase of 20% compared to the previous year. (Nguoi Lao Dong online
Jul 4)
2nd Chinese Goods Fair to Open in Hanoi This Week
The Vietnamese Ministry of Industry and Trade (MoIT) and the Chinese Commerce
Union will jointly organized the second Chinese goods fair at the Hanoi Friendship
Culture Palace from July 10 to 13, Vietnam Economic Times newspaper reported.
Around 100 Chinese and Vietnamese enterprises will showcase their products such as
fashion, packing machines, household electricity appliances, power-loom and sewing
machines.
The four-day fair is expected welcome around 50,000 visitors.
Vietnam and China have particularly seen the marvelous growth in economic ties, with
the two-way trade reaching $15.8 billion last year, surpassing far from the target of $15
billion by 2010.
China currently is one among Vietnam’s biggest investors with a total of 561 projects
worth up to $1.8 billion. (Vietnam Economic Times Jul 8 p4)
Vietnam Gas Traders Cut VND5,000/Cylinder
Gas traders in Vietnam including Saigon Petro, PetroVietnam Gas, Vina Gas, Gia Dinh
Gas, Than Tai Gas and Hong Moc Gas have recently decided to cut retail prices by
between VND3,000 and VND5,000 per 12-kilogram canister, state media reported.
This is the fourth price fall in the country's gas market in addition to five gas price hikes
since the beginning of this year. The latest gas reduction happened April 1.

421. From today [July 8], a 12-kilogram canister is priced at between VND271,000-
VND275,000, Vnexpress reported.
Decision by Vietnam's sole gas processor, Dinh Co, to decrease gas price by $20/ton with
fix-term deals and by $5/ton with direct purchase contracts, and governmental policy to
stabilize goods prices are attributed to the slight fall in the domestic retail gas price, gas
companies said.
The gas traders also hope the tumble will boost local gas purchasing power in the coming
time.
Vietnam now has around 100 gas trading companies, including 10 bid companies that
import and distribute LPG in the domestic market.
Currently, foreign-led joint venture companies hold over 50% of the market. They
usually adjust selling price monthly. (Labor Jul 8 p7, Vnexpress Jul 8)
Industry:
INTERVIEW: PetroVietnam, Petroleos de Venezuela to Sign Deal in Late 2008
PetroVietnam and Petroleos de Venezuela S.A will sign an association agreement by the
end of this year as part of preparations to build an oil refinery in southern Vietnam,
Venezuela Ambassador Jorge R Uzcategui told Vietnam News Agency on the occasion
of his country’s National Day.
Oil cooperation undoubtedly constitutes one of the key points of Vietnam-Venezuela
cooperation, and PetroVietnam and Petroleos de Venezuela S.A have rapidly and
substantially advanced in negotiation to build the refinery in Vietnam, Jorge R Uzcategui
noted.
“This oil refinery is programmed to use extra heavy crude oil of the Orinoco Oil Belt, the
mayor deposit of hydrocarbons in the world, proceeding from Junin II block whose
potential is over 40 billion barrels,” Jorge R Uzcategui said.
This crude oil will be exploited, improved and transported by a company combing
PetroVietnam and Petroleos de Venezuela. The products obtained at the to-be-
Vietnamese oil refinery will be destined to cover a large part of the national demand and
the surplus will be for the regional markets, the ambassador added.
PetroVietnam and Petroleos de Venezuela have been working on an integrated study
since 2007 on establishing the deepest hydrocarbon deposits of the traditional area of
Maracaibo Lake.
We are convinced that oil cooperation between Vietnam and Venezuela will make great
strides in progress and will contribute immensely to beefing up the bilateral cooperation,
he said.

422. Vietnam is now hurrying to complete construction and installation of its first $2.5 billion
oil refinery of Dung Quat, which is expected to be operational next February. Once fully
operational, the refinery will process 6.5 million tons of crude oil a year and meet more
than 33% of the domestic demand. (Vietnam News Agency, VietnamNet Jul 7, Vietpan
Database)
Vietnam, Ecuador Ink Oil Cooperation Deal
State-owned oil companies of Vietnam and Ecuador have recently clinched an agreement
to start their cooperation in oil and gas fields, the Kinh Te & Do Thi (Urban & Economy)
newspaper reported, citing PetroVietnam's sources.
Chairman Luis Jaramillio of Petroecuador and Deputy General Director Do Van Hau of
PetroVietnam July 2 signed the cooperation deal in the Ecuador's capital Quito.
Under the two-year agreement, the two sites will have coordination in exploration,
production, transportation, storage, processing and trading of crude oil, Mr Jaramillo said.
They will also boost cooperation in fields of services for oil and gas activities, and staff
training and research for biofuels, Mr. Hau said.
PetroVietnam and Petroecuador are going to set up a commission to outline bilateral
cooperation plan focusing on trading and scientific research; developing, applying and
providing technical services.
Vietnamese state-owned oil monopoly PetroVietnam plans to sign three oil contracts with
two companies namely Zarubeznhep and OAO Gazprom of Russia and with PDVSA
Venezuela this year, CEO Dinh La Thang said.
PetroVietnam aims to produce between 15.5 million and 16 million tons of crude oil this
year.
The group produced 7.2 million tons of crude oil and 3.6 billion cubic meters of natural
gas; obtained revenues of VND142,342 billion ($8.67 billion), and contributed
VND50.53 trillion ($3.08 billion) to the state budget in the first half of this year. (Urban
Economy Jul 7 p3)
PetroVietnam Strives to Add 1,360 MW to National Power Grid in Jul
The state-owned oil monopoly PetroVietnam group is taking some drastic measures to
add 1,360 megawatts to the national electricity grid in July of this year in a bid to ease the
country’s current severe power thirst, the Lao Dong (Labor) newspaper reported, citing
the group's sources.

423. Of the total, 300 MW will be mobilized from Phu My power plants, 750 MW from Ca
Mau 1 power plant and the rest of 310 MW from Nhon Trach 1 power plant.
To this end, PetroVietnam and Siemens contractor will continue trial run of Ca Mau 1
power plant by July 31 to prepare for official operation while operating turbines at rush
hours in the evening and days off to reduce the current power shortfall.
The group strives to raise power output of Nhon Trach 1 power plant to 310 MW in mid-
July this year by putting into operation its turbine 2.
In addition, PetroVietnam has joined hands with Talismas to accelerate oilfield
development while reaching an agreement with Petronas to prioritize gas supply for
Vietnam.
PetroVietnam also plans to raise capacity of Nam Con Son gas pipeline to 20 million
cubic meters a day in late July this year so as to better fuel Nhon Trach 1 and Phu My
power plants despite of the hike to 16.5 million cubic meters per day in late May this
year.
Vietnam is forecast to face a power shortage of between 1,500 MW and 2,500 MW from
7:00 am to 9:00 pm daily in July this year.
The country's power consumption is estimated at about 230 million kWh a day, bringing
total surcharges this July to about 7.15 billion kWh of power while the current
serviceable capacity of its power system may only peak at between 12,500 MW and
12,800 MW. (Labor Jul 8 p1)
NCS Pipeline’s Capacity to be Raised to 20 Mln Cu.m/Day in Jul
The Nam Con Son Gas Pipeline’s capacity will be upgraded to 20 million cubic meters
per day in late July from the current 16.5 million cubic meters, said the PetroVietnam
group.
The upgrade aims to increase gas supply for Nhon Trach 1 power plant and the Phu My
power complex, helping generate more power for the thirsty-power economy.
Currently, the pipeline’s staff and PetroVietnam Gas are closely working with BP to
install the second line to raise the pipeline’s capacity, said Hoang Minh, general director
of the pipeline.
The pipeline’s capacity has been successfully upgraded to 16.5 million cubic meters daily
from 15 million cubic meters since late May without any incidents, Minh added.
The move has brought about high economic efficiency, especially satisfying gas demand
for fertilizer and electricity production, he noted.

424. The 370-km Nam Con Son pipeline offshore southern Ba Ria Vung Tau province is part
of the $1.3-billion Nam Con Son project, the largest foreign oil and gas project in
Vietnam with partners being PetroVietnam, UK's BP, India's ONGC and the US's
ConocoPhillips. (Labor Jul 8 p1, Urban Economy Jul 8 p5, Vietnam & World Economy
Jun 30 p7, Vietpan)
Vietnam Targets Clean Coal Output of 50 Mln Tons by 2010
Vietnam is targeting to produce between 48 million and 50 million tons of clean coal by
2010 under Vietnam’s coal industry development strategy until 2015, a vision to 2025
approved by the prime minister yesterday [July 7], state media reported.
The strategy said the coal sector will become an industry with high competitiveness and
advanced technology compared with other regional countries in terms of exploring,
mining, sorting, processing and using, capable of meeting coal for domestic demand and
ensuring national energy security.
The coal industry will operate according to the market mechanism, integrate into regional
and international market under the state regulation and a competitive coal market will be
soon set up. The state will regulate coal prices through tax policy and other management
tools.
By 2010, the coal sector is aiming to complete surveying and assessing the coal deposits
at the depth of 300 meters in the Northeast coal basin and exploring part of the Red River
delta coal basin. It will finalize surveying and assessing the Red River delta coal basin by
2015.
The industry will basically prevent the causing of environmental pollution and water
sources by 2010. It will also meet all environmental standards at mine sites by 2020 and
will stop illegal mining, processing and business of coal.
The Ministry of Industry and Trade said that Vietnam produced 22.4 million tons of coal
in the first half this year. Around 20.52 million tons of coal was sold in the period, of
which, 9.3 million tons were domestically consumed, up 13% on-year, meeting the
demand of big consumers. (Thoi Bao Kinh Te Viet Nam Jul 8 p1, Lao Dong Jul 8 p1,
www.vtc.vn Jul 8)
Vietnam Approves to Mine Copper Ore in Cao Bang Province
Deputy Prime Minister Hoang Trung Hai has turned the green light to exploitation and
processing copper ore in Hoa An district of northern mountainous Cao Bang province,
the Thoi Bao Kinh Te Viet Nam newspaper reported.
The provincial authorities will coordinate with the Ministry of Natural Resources and
Environment to guide enterprises in working out a mining and processing project.

425. A capable enterprise will be licensed to exploit and process copper ore at the site under
the existing regulations. (Thoi Bao Kinh Te Viet Nam Jul 8 p1)
EVN Launches Nation Power Transmission Corp
State-owned Electricity of Vietnam Group (EVN) July 4 in Hanoi made debut its wholly
invested National Power Transmission Corp (NPT) with an initial chartered capital of
VND4.5 trillion ($274.39 million), state media reported, citing EVN sources.
NPT to be an independent accounting company comprises Power Transmission
Companies No. 1, 2, 3, and 4; and Northern, Central and Southern Power Projects’
Managing Boards.
The establishment of the corporation is aimed at supplying safe, stable, reliable and
continuous power transmission service, ensuring power supply to socioeconomic,
security and defense activities and effective production and business activities.
NPT specializes in managing the operations of and repairing power transmission grids;
investing and expanding the power transmission grids; providing consultancy in
investment, project management and supervision of construction of grid projects.
The newly-launched corporation will be responsible for investing in, operating and
managing power transmission grids with capacity of from 220 kV to 500 kV of the
national electricity system, said EVN CEO Dao Van Hung.
EVN plans to invest VND43 trillion ($2.6 billion) in building 40 power plants and
expanding the power grids this year. (VietNamNet Jul 5, Labor Jul 5, VNA Jul 4)
Vietnam Company to Invest over $606 Mln in Six Hydropower Plants by 2009
Duc Long Gia Lai Hydropower Joint Stock Company plans to build six hydropower
plants with a total investment of VND10 trillion ($606.6 million) between 2008 and 2009
in Vietnam, the Tien Phong (Pioneer) newspaper reported July 7.
Of the hoped plants with a combined capacity of 455 megawatts, three plants with a
capacity of 22 MW will be constructed in central highlands Gia Lai province.
A 60-MW Dong Nai 6A is expected for construction in central highlands Lam Dong and
southern Binh Phuoc provinces.
Meanwhile, 180-MW Dong Nai 6 will be built in central highlands Lam Dong and Dak
Nong provinces; and 280-MW My Ly in central Nghe An.
Vietnam is forecast to lack 8.6 billion kWh of electricity this year and the figure will
climb to 36 billion kWh in 2020 and 120 billion kWh in 2030.

426. The country plans to raise the total capacity of hydropower generation projects to more
than 18,000 MW and the annual output of over 80 billion kWh by 2015. (Pioneer Jul 7
p6)
Central Vietnam to Get 64 MW Hydropower Plant Soon
A hydropower plant with a capacity of 64 MW will start operating in central Vietnam in
May of 2009 to help ease the country’s current adverse power thirst, Industrial and Trade
Executives’ Briefing reported.
The Krong H'nang hydropower plant costing VND1.23 trillion ($74.54 million) is
expected to generate 254.4 million kWh of power per annum once fully operational.
Power Company No. 3 (PC3) joined hands with Vietnam Electricity Construction Joint
Stock Company to start work on the two-turbine plant in Dak Lak and Phu Yen provinces
in May of 2005.
Vietnam is forecast to lack 8.6 billion kWh of electricity this year and the figure will
climb to 36 billion kWh in 2020 and 120 billion kWh in 2030.
The country plans to raise the total capacity of hydropower generation projects to more
than 18,000 MW and the annual output of over 80 billion kWh by 2015. (Industry &
Trade newspaper page Special Jul 7 p10)
$300 Mln Hydropower Plants Built in Vietnam Central Highlands Province
Nearly 70 small-and-medium-sized hydropower plants worth over VND5 trillion
($304.87 million) have been built in central highlands Kon Tum province, Vietnam News
Agency reported, citing the provincial sources.
In the first six months of this year, the province saw 10 hydropower projects starting
construction at a total cost of VND2.8 trillion ($170.73 million).
The Dak Psi Hydro-electric Development Investment Company invests VND600 billion
($36.58 million) to build four plants namely Dak Psi 3, Dak Psi 4, Dak Ter and Dak Ter 2
with a combined capacity of 36 MW in the build-own-operate (BOO) form. Two of these
are expected to generate power by 2010.
Six other projects including Dak Po Ne 1, Dak Po Ne 2, Bo E, Dak Lay, Dak Psi 2, Dak
Psi 2B with a total capacity of 110 MW in the locality are also scheduled to be completed
by the year.
Power-thirsting Vietnam plans to raise the total capacity of hydropower generation
projects to more than 18,000 MW and the annual output of over 80 billion kWh by 2015,
under the national power development plan through 2015 and span to 2025, or plan VI.
(VNA Jul 5)

427. Vietnam: 3 Buildings Win 2008 ASEAN Energy Efficient Prizes
Three Vietnamese buildings have recently been awarded with the 2008 ASEAN Energy
Efficient Prizes, Ho Chi Minh City Energy Saving Center said.
Among the awardees, the HCM City-based Majestic Hotel won the third prize for re-
constructed building.
Meanwhile, Six Senses Hideaway Ninh Van Bay Building in Nha Trang City of central
Khanh Hoa province was honored with the third prize for tropical building; and Diamond
Plaza in Ho Chi Minh City with the prize for energy management system.
The prizes are under an annual contest called “ASEAN Energy Efficient Buildings”,
which was organized in Thailand between April and June this year with participation of
18 application forms for four building kinds from eight regional countries.
Ho Chi Minh City, southern economic hub of Vietnam, is expected to organize the next
contest in 2009.
Vietnam is facing an adverse power thirst, which is estimated at 8.6 billion kWh this
year. However, the country is estimated to waste around $1 million worth of energy a
year. (Laborer Jul 7 p2)
Agriculture:
Vietnam Produces 829.3 Mln Liters of Beer in H1
Vietnam reportedly produced 829.3 million liters of beer in the first half of 2008, up 13%
against the same period of last year, and meeting domestic demands, the Industry and
Trade newspaper reported.
Of the total, the Saigon Beer and Beverage Company (Sabeco) contributed 383 million
liters, up 24.5% and accounting for 46.18% of the country’s total.
Hanoi Beer and Beverage Company (Habeco) alone produced 163.9 million liters, up
2.3% on year, and accounting for 19.76%.
Vietnam now has more than 300 breweries, only five of them produce more than 100
million liters a year. The remainders are on a much smaller-scale and focus mainly on
draught beer.
The Ministry of Industry and Trade said with an annual growth rate of 18%, Vietnam’s
beer market will reach 3.5 billion liters by 2010. (Industry and Trade July 8 p6)
Vietnam: 300,000 Tons of Catfish Unsold in Mekong Delta Region

428. The Vietnamese Ministry of Agriculture and Rural Development said that up to 300,000
tons of cage-raised tra and ba sa catfish have not been bought from farmers in Mekong
Delta region despite the government’s direction, local media reported.
The ministry said from June 18 to July 4, local companies bought only 67,664 tons of
fish, and total stocked fish volume was 323,117 tons.
Meanwhile, local banks have lent the companies only 22% out of total VND1 trillion.
The ministry said the companies prefer buying fish on credit from farmers to borrowing
money from banks because of too high lending rates.
Deputy Chairman of People’s Committee of Dong Thap province Le Vinh Tam said the
banks have lent only VND81 billion out of VND200 billion, while the remainders were
for local farmers who want to continue breeding.
Local companies in Tien Giang province are also hesitating to borrow money from banks.
Meanwhile, local farmers are put in seriously miserable conditions because prices of
aquatic feed kept rising over the past month while prices of catfish have dropped to only
VND13,500-VND13,800 a kilogram.
At a recent meeting, the ministry called for closer cooperation between companies,
relevant bodies and localities to boost up the purchase, and strive to buy catfish at floor
price of VND14,000 a kilogram.
The Vietnam Association of Seafood Exporters and Producers forecast that seafood
processing companies will face catfish shortage in late this year, and early next year as
some 20% of catfish breeders decided to stop their business. (Young People July 8 p6,
Vietnam Economic Times July 8 p1)
Animal Feed Prices Hit New High Record in Vietnam
Vietnamese animal feed producers once again increased prices of their products to new
highs, blaming for the price hikes of animal feed materials and animal feed imports, the
Youth newspaper reported.
This is the ninth increase so far this year, bringing animal feed prices to record at
VND12,500 a bag of 25 kilo, double that of last year.
The producers said prices of almost all of animal feed imports and animal feed materials
have kept soaring. Prices of dried soybean oil-cakes jumped by 80% from late 2007, from
VND4,200 a kilo to VND7,700 a kilo, while prices of corn rose by 23% to VND4,200 a
kilo, from VND3,400 a kilo.

429. Vietnam imported $1.007 billion worth of animal feed and materials in the first half of
2008, up 84.1% against the same period of last year, the General Statistics Office (GSO)
reported.
Vietnam is now imposing 0% tax on imported animal feeds and animal feed materials.
(The Youth July 7 p14)
Business:
UNIDO Finances $9 Mln for Vietnam Business Registration Reform
The UN Industrial Organization (UNIDO) has pledged to provide $9 million in non-
refundable aid for Vietnam to promote the project on business registration reform,
Vietnam News Agency said July 8.
The technical assistance project will be carried out in the period of 2006-2010.
Prime Minister Nguyen Tan Dung has just approved the plan and appointed the Ministry
of Planning and Investment to make contact with the UN body and relevant agencies for
the implementation. (VNA Jul 7)
Turkish Airlines Opens Office in Vietnam
Turkish Airlines July 7 officially opened its first office in Vietnam by assigning Huong
Giang Aviation Co. to be its representative office in the country, the Vietnam Economic
Times reported.
The office is located at 99 Ba Trieu street, Hanoi city.
The office in Vietnam is part of Turkish Airlines’ plan to open a direct flight from
Bangkok, Thailand, and Istanbul, Turkey in 2008.
Under an agreement between Turkish Airlines, Thai Airways and Vietnam Airlines, the
three carriers will link flights from Hanoi and HCM City to Bangkok and Istanbul, from
which passengers will be carried to more than 100 other cities in the world.
“The agreement will pay the way for development of both culture and economy between
ASEAN and Middle Asia,” regional director of Turkish Airlines Bahri Yilmaz said at the
signing ceremony.
A two-way ticket for Vietnam-Bangkok-Istanbul flight will cost around $950-$1,100,
exclusive of tax and other charges.
The flight will take around 14 hours, including one hour and half from Vietnam to
Bangkok, and eleven hours and half from Bangkok to Istanbul. (Vietnam Economic
Times July 8 p4, VTCnews July 8)

430. Canon Vietnam Eyes $1.36 Bln Export Revenues in 2008
Canon Vietnam hopes to earn export revenues of $1.36 billion this year, compared with
$950 million last year, the Dau Tu (Investment) newspaper said.
The company will complete the second phase of its factory at Que Vo Industrial Park in
northern Bac Ninh province this mid-August. This is the biggest factory among three
factories of Canon in Vietnam.
Canon Vietnam started operation in 2002 with the initial sales of some $40 million.
The company had its sales strongly growing to $100 million in 2003, $200 million in
2004, $410 million in 2005 and some $700 million in 2006. (Dau Tu Jul 7 p3, Vietpan)
Foreign Investment:
Danish Businesses to Seek Opportunities in Vietnam
A Danish business mission will arrive in Vietnam October 6-12 this year to look for
business and investment opportunities in the fast growing economy of Vietnam, the
Vietnam Economic Times reported Tuesday.
These firms are specialized in mainly construction materials and saving energy and
environmentally friendly production activities.
The visit also aims to transfer technology secrets in the Business-to-Business (B2B)
Program for Vietnamese enterprises in the production of these materials.
The B2B Program supports the establishment of partnerships between Danish companies
and companies in Danida’s program countries and South Africa.
Local companies, who want to discuss cooperation chances with the guests from
Denmark, can contact the Danish Embassy in Vietnam before August 30 this year.
Last year, bilateral trade between Vietnam and Denmark reached around $300 million
and Vietnam enjoyed a slight trade surplus with Denmark, said the Ministry of Industry
and Trade.
The two-way trade turnover stood at $108.2 million, according to the ministry. (Vietnam
Economic Times July 8 p4, Vietpan Database)
Infrastructure:
Vietnam to Issue $100 Mln of Bonds for Noi Bai-Lao Cai Highway
The Vietnamese Ministry of Transport has recently asked the Expressway Development
and Investment Company (VEC) to urgently issue VND1.6 trillion ($100 million) of

431. construction bonds for Noi Bai-Lao Cai highway project, the Dau Tu (Investment)
newspaper reported July 7.
The ministry has asked VEC, the project investor, to submit the issuance plan in the
fourth quarter and VEC will use the proceeds for the project’s site clearance, the
newspaper said.
The ministry has also allowed VEC to approve design for each bidding package and
ensure the site clearance progress to prepare for the construction.
The Noi Bai-Lao Cai expressway, which is 264 kilometers in length running from Hanoi,
Phu Tho, Yen Bai and Lao Cai, will cost VND20 trillion (some $1.2 billion).
Of the total capital, more than $1.09 billion will be funded by the Asian Development
Bank’s loans (ADB).
VEC will start the work late this year and finish in 2010, the Thanh Nien (Young People)
newspaper said.
VEC, with a registered capital of VND1 trillion ($62.5 million), was selected by the
government and the Ministry of Transport as the main developer of country’s many
highway projects.
It has to date mobilized some VND38 trillion for the development of 369 kilometers of
expressway.
Vietnam is estimated to require nearly $48 billion to develop expressway network of
5,753 kilometers between now and 2020 under a plan approved by the Prime Minister
recently, the New Hanoi newspaper said.
The Southeast Asian country will prioritize the funds on expressways near socio-
economic centers like Hanoi, Ho Chi Minh City, Haiphong, Danang , Nha Trang and Can
Tho. (Investment July 7 p2, Vietpan Database)
Tourism:
Oman Joins $600 Mln Tourism Project in Vietnam Island
Oman’s State General Reserve Fund (SGRF) is joining hands with Vinaconex Investment
and Tourism Joint Stock Company (Vinaconex-ITC) in developing a tourism project
worth $600 million in Cai Gia-Cat Ba Island, off the northern coast of Haiphong, state
media has said.
SGRF will pour $20 million into Vinaconex-ITC and become its main strategic
shareholder, an official from Vinaconex-ITC said, adding that the 172-hectare project is
designed by Group 70/PACMAR Inc of the U.S.

432. The facility comprises three to five-star hotels, resorts, villas, a sports and entertainment
complex, an international conference center, a riverside trade center and many other
facilities.
“The project is scheduled to be completed by 2010. We are now calling for secondary
investors to build 102 villas, the Tung Thu hotel, the sports and leisure complex and
beaches for domestic tourists,” the official revealed.
Vinaconex-ITC plans to increase its chartered capital from the current VND300 billion
($18.2 million) by calling on more investors to share in our potential investment
opportunities.
Vietnam’s tourism industry is expected to receive 6 million-6.5 million foreign tourists
per annum by 2010, and the number of locals with an annual income reaching $3,000-
$5,000 is anticipated to increase remarkably in the next five years. These should be
considered very favorable conditions for the initial development of the local tourism-
property market. (VietNamNet July 3, Vietnam Panorama)
Politics & Law:
Capitals of Vietnam, Argentina Enhance Bilateral Ties
Mayor of Buenos Aires, the capital of Argentina, paid a working visit to Hanoi July 6-7
to boost the bilateral cooperation between the two capitals in urban planning and
management, personnel development and bilateral economic, trade and tourism, local
media said Tuesday.
Receiving Mayor Maurico Macri in Hanoi, President Nguyen Minh Triet applauded the
move of Buenos Aires’s leaders, believing the trip would contribute to tighten the
Vietnam-Argentine traditional relations.
The president also hoped the two countries’ businesses would enhance the exploration of
their respective markets and promote economic, cultural, educational and health care
cooperation.
Vietnam’s economy is opening its doors and ready to welcome foreign investors to
cooperate in all fields, Triet noted.
Mayor Mayor Macri briefed Triet of the working results with Hanoi authorities, in which
the two sides agreed to increase the exchanges of industrial and agricultural businesses
and officials delegations.
Argentina has strengths in agricultural production and processing and is willing to share
experiences with Vietnam in the fields, he said.
The bilateral trade between Vietnam and Argentina reached $387.6 million in 2007, up
56% on-year. Of which, Vietnam exported $48.53 million worth of goods, up 16% and

433. imported $339.07 million, up 64%. (The People Jul 8 p1, People’s Army p1, New Hanoi
p1)
Indochinese Countries Share WTO Experiences
Over 100 representatives from the Cambodian, Lao and Vietnamese governments and
businesses and international organizations gathered in Hanoi July 7 to share experiences
in joining the World Trade Organization (WTO) and implementing the WTO
commitments, said local media.
The symposium focused on three themes of globalization and world economy: current
trend and impacts on Cambodia, Laos and Vietnam, experiences in conducting
negotiations for WTO entry, and implementing WTO commitments”.
Participants also discussed issues related to international economic development and
integration at the event, which was co-organized by the Vietnamese Ministry of Foreign
Affairs and the German Hanns Seidel Foundation.
The symposium is a good chance for the Indochinese countries to exchange experiences
in tackling issues related to negotiations for WTO entry as well as forecasting and coping
with complicated developments in the regional and global economies, said deputy
Minister of Foreign Affairs Dao Viet Trung.
Joining the WTO has opened up many opportunities for Vietnam to promote socio-
economic development. Vietnam made impressive achievements in 2007 with GDP
growth of 8.5% and FDI attraction of $20.3 billion, Trung noted.
However, Vietnam is still facing difficulties in managing the macro-economy, including
controlling inflation and reducing the high trade deficit. To overcome these difficulties,
Vietnam is implementing short-term and long-term solutions to maintain sustainable
growth, he added.
Speaking at the symposium, President Hans Zehetmair of the Hanns Seidel Fund said that
the Vietnamese State’s intervention measures in the implementation of WTO pledges,
particularly in rural and agricultural development, will have a decisive role in the
country’s success during its integration process.
As new members of the global trade club, Cambodia and Vietnam shared experiences
with Laos in conducting negotiations for WTO entry. The three countries also agreed to
strengthen solidarity and boost co-operation for sustainable development. (New Hanoi Jul
8 p7, Vietnam Law Jul 8 p2, VOV Jul 7, VNA Jul 7)
Thai Supreme Commander Visits Vietnam

434. Supreme Commander of the Thai Royal Army, Boonsrang Niumpradit July 7 visited
Vietnam at the invitation of Chief of General Staff of the Vietnam People’s Army,
Nguyen Khac Nghien, local media said.
During the separate meeting, the two military leaders discussed the cooperation between
the Vietnam People’s Army and the Thai Royal Army in the coming years and exchanged
jointly views on issues of mutual concern.
They also pledged to work for increased solidarity and mutual understanding between the
two countries and the two armed forces for the sake of peace, friendship and cooperation.
Thai general Boonsrang Niumpradit and his entourage later paid a courtesy visit to
Defense Minister General Phung Quang Thanh. (HCM City Law Jul 8 p2, VNA Jul 7)
Cambodia Court Tries 5 Vietnamese on Vandalism, Terrorism
The Phnom Penh court early this month opened a hearing against five overseas
Vietnamese on charge of vandalism and terrorism, the Vietnamese state media said
Monday.
Those five Vietnamese citizens confessed their plot to mine Vietnam-Cambodia
monument in late July last year, the Lao Dong & Xa Hoi (Labor & Society) newspaper
said, adding that those vandalic accepted taking $6,000 from a group of Khmer people in
the U.S. and Canada.
The local court issued a conclusion that those Vietnamese committed terrorism crimes
and illegal explosive production, the newspaper said, but did not disclosing levels of
sentences. (Labor & Society Jul 6 p2)
Labor & Education:
Vietnam Drafts New Regulations to Facilitate CEOs Recruitment
The Vietnam Ministry of Labor, War Invalids and Social Affairs (MoLISA) is working
on draft regulations on hiring chief executive officers (CEOs), which will allow
businesses to decide the salary for the position, state media said.
The regulations are expected to remove a major hindrance for enterprises, particularly
state-owned, in CEO recruitment, which is facing difficulties due to a cap on salaries.
The government’s decree on wages issued in 2007 set a ceiling of VND25 million
($1,560) per month for CEOs of profitable enterprises. However, many foreign
companies pay Vietnamese CEOs salaries up to six times the ceiling level.
In the context of fierce competition for high-ranking personnel, salary is one of the first
factors for companies to attract talents. In other countries, the salaries of CEOs are often
much higher than politicians.

435. There were other barriers in hiring of CEOs, including the lack of regulations on CEOs’
power, responsibilities and qualifications as well as procedures for their appointment,
Hoang Minh Hao, vice head of the MoLISA’s Wages and Salary Department, said.
The Government earlier also gave permission for five state-owned economic groups to
pilot the hire of CEOs, including the Vietnam Motor Industry Corporation (Vinamotor),
the Vietnam Construction Glass and Ceramics Corporation (Viglacera), the Vietnam
Electric Equipment Corporation, the Vietnam Shipbuilding Industry Corporation
(Vinashin), and the Song Hong Construction Corporation.
However, only Vinamotor has so far hired a CEO with a monthly salary of $2,000 from
this July.
Vietnam now has around 44.4 million people of working age. Of the total workforce,
laborers in the state-owned sector accounted for 9.6%, those in the non-state-run sector
made up 88.8 % and 1.6% in the foreign-invested sector. (VNA Jul 7)
Culture & Society:
S.Korean NGO Supports Surgeries for Vietnamese Children with Heart Disease
Sunny Korea-the South Korean NGO, has granted $40,000 for operations of four
Vietnamese children born with heart disease, $10,000 each, in South Korea through the
National Fund for Vietnamese Children (NFVC), the Sai Gon Giai Phong newspaper said
Tuesday [July 8].
The Sunny Korea will also provide a financial assistance to their mothers who will arrive
in South Korea to care them, the newspaper said.
So far this year, the NGO has helped operate eight out of 12 children who will be
operated this year. It said it will help operate at least 10 children next year.
Between 2002 and 2006, the organization had operated 47 Vietnamese children with
heart disease in South Korea with total expenditures of $470,000.
Last year, Sunny Korea launched a program titled “For the children's heart” and donated
VND1.7 billion ($103,000) to help operate 70 children. (NFVC's website, Liberated
Saigon July 8 p2)
Vietnam’s Population Climbs to 86.5 Mln
The Vietnamese population has grown gradually since 2000, reaching 86.5 million by
June 2008, said the General Department of Population and Family Planning July 4.

436. Vietnam now ranks 13th among the most populous countries worldwide, however, it only
places 108th out of 177 countries in terms of the human development index (HDI) and
the index of population quality, the department reported.
Each year, the country’s population increases by over one million people. In the first
quarter of 2008, Vietnam welcomed 18,000 newborns, up 7.2% on-year.
Vietnam is facing growing birth rates in 39 provinces and cities. Notably, Soc Trang, Son
La, Ho Chi Minh City, Hanoi and Ha Giang reported 25% higher than the same period
last year.
Seriously, the nation witnessed an alarming gender imbalance with 110 boys per every
100 girls in 35 out of its 64 localities in 2007.
Vietnam reports the world’s highest population density at 252 residents/km2 in
comparison with the world average of 35-40.
The average life expectancy of Vietnamese people is 71.3. (VOV Jul 5, Pioneer Jul 5,
HCM City Law Jul 5)
Vietnam Plans $62.5 Mln for Telecom Services in Poor Areas
The Ministry of Information and Communications (MoIC) will allocate around VND1
trillion or $62.5 million from the Public Telecom Fund to develop public telecom
services in rural and mountainous regions, state media has said.
The ministry has assigned four telecom companies, the Vietnam Post and
Telecommunications Group (VNPT), Viettel, EVN Telecom and SPT, to implement this
program.
Under the program, fixed phone networks will be installed in 254 communes that do not
have phone services this year, Deputy Minister Tran Duc Lai said.
In addition, around 30% of the total 2,000 communes without public Internet service
points will have this service this year while 600 public Internet service points using dial-
up mode will be upgraded to broadband mode.
The Public Telecom Fund will also offer free two-way communication services for
fishing boats and rescue activities.
By the end of May 2008, Vietnam’s average teledensity was 67 phones per 100 residents.
The total number of phone subscribers was 58 million. The country also had six million
Internet subscribers, equivalent to 19.5 million Internet users, reaching a ratio of 23% of
the population. (VietNamNet July 7, Vietnam Panorama)

437. Stock Market:
Vietnam to Tighten Control over Foreign Share Issuers
Vietnam’s Ministry of Finance said it will issue regulations to tighten control over
foreign institutional issuers in the country.
A foreign institution who wants to issue shares in Vietnam must be a listed organization
in a stock exchange cooperating with Vietnam’s State Securities Commission or the
Stock Exchange.
The foreign issuer is also required to have investment project approved in Vietnam and
have a Vietnamese securities company advice on offering and listing.
The institution must have the shareholders meeting’s resolution on selling shares and
listing in Vietnam and have business license and listing certificate in native country.
It has to submit its financial statements established under the international standards.
(Vietnam Economic Times Jul 8 p10, Securities Investment Jul 7 p7, VTC Jul 8)
Vietinbank to Privatize Securities Offshoot
The Vietnam Bank for Industry and Trade (Vietinbank)'s Securities Company has
received approval to make its privatization and change the operation model to a joint
stock company by the end of this year, said VietinbankSC's General Director Phan Quoc
Huynh.
The company has increased its registered capital to VND300 billion ($18.8 million) from
VND105 billion ($6.6 million). The capital source was mobilized from Vietinbank's
ownership capital.
VietinbankSC plans to scale up its capital to VND500 billion ($31.3 million) within this
year to meet the requirement of the Decree 14 on legal capital for securities companies,
and improve its competition capacity in the phase of pre-privatization, Huynh added.
The securities firm will list its shares on the local stock market after finishing the
privatization. The stake on offer, however, was not decided.
VietinbankSC, set up in 2000, is now one of the first stock brokers in Vietnam.
The mother lender Vietinbank also plans to make its initial public offering (IPO), and sell
a 25% stake to domestic and foreign investors by late this year, the second state-owned
bank privatized, behind Vietcombank. (Stock News Jul 7)
State Treasury to Offer VND500 Bln Bonds Jul 11

438. The State Treasury will auction VND500 billion ($31.3 million) worth of government
bonds at the Hanoi Securities Trading Center (HASTC) this Friday [July 11], marking its
eighth tranche, the Vietnam Economic Times reported.
The bonds include VND300 billion ($18.8 million) of three-year bonds and VND200
billion ($12.5 million) of two-year bonds, which will be issued July 15.
They will be offered at par value under the book-entry form.
In the seventh tender late June, the treasury sold only VND2 billion out of VND300
billion of two-year g-bonds offered to the public at an annual coupon of 11%.
The bank deposit interest rate, after rising up to 20% per annum, has been reduced when
the central bank said it would supervise and penalize any bank that offers too high
interest rate. (HASTC, Vietnam Economic Times Jul 7, Labor Jul 8)
Nine Vietnamese Firms Included in Global Stock Index
The U.S.-based investment consultancy group Russell Investments has added nine
Vietnamese listed companies to its Russell Global Index, the Financial Investment
newspaper reported.
These companies include the Corporation for Financing and Promoting Technology
(FPT), Sacombank (STB), PV Drilling (PVD), Itaco (ITA), Phu My Fertilizer (DPM),
Vinamilk (VNM), Pha Lai Thermopower (PPC), Vincom (VIC) and
Saigon Securities Inc (SSI).
Beside Vietnam, six other countries have also been added to the index, including Latvia,
Kazakhstan, Qatar, Slovakia, Tunisia and Ukraine.
Russell Global Index is a useful investment tool referred by many world securities
investors. The index is built on some typical companies, with such criteria as operation
sector, long duration and stable development.
In March, SSI was also been added into ML Frontier Index (Merrill Lynch) that consists
of 50 most active stocks from emerging markets. (Financial Investment Jul 7 p15,
VnMedia, Vietnam Panorama)
Tuan Chau Group to Issue bonds for Huge Villa Project
EuroCapital Securities Joint Stock Co and Tuan Chau Group have jointly signed an
agreement whereby EuroCapital would provide bond issue consultancy services to Tuan
Chau Group to raise fund for its "Long Chau Villas & Residences" project.
The 12-month bonds will be offered to domestic and foreign individuals and institutions.
The value of the bonds is estimated at VND1 trillion ($62.5 million).

439. Bond buyers will have preferential rights such as purchasing villas at favorable price,
favorable membership card at golf club and preferential fee of using the group's products
and services.
In late June, Tuan Chau Corp and T&H Ha Long Investment Co. officially announced the
joint project "Long Chau-Villa & Residences" worth VND5.7 trillion, the biggest
international-standard real estate project by the sea in Vietnam.
Long Chau project, with a long-term license for an area of 303.3 hectares, will be a
complex including over 1,000 luxurious villas by the bay, a 18-hole golf course on the
sea, a yacht wharf in Vietnam (the first one of its kind), a beach, five-star hotels, an
international trade center, entertainment areas and high-class flats by the sea, said Dao
Hong Tuyen, chairman of Tuan Chau Corp cum chairman of T&H Ha Long. (Securities
Investment Jul 6, Business Forum Jul 5, www.asset.vn Jul 5)
Ntaco Okayed to List on HOSE
The seafood producer Ntaco Corp has got in-principle approval from the Ho Chi Minh
City Stock Exchange (HOSE) to list on the bourse.
As planned, Ntaco will float its 10 million shares on the HOSE in the third quarter of this
year.
The An Giang-based company has a registered capital of VND100 billion. It paid a cash
dividend of VND1,700 a share in 2007.
In the first six months, the seafood producer has exported 2,800 tons of seafood products
worth $8 million, equal to the export revenues of the whole last year. (Securities
Investment Jul 7 p7)
Jul 8: Vietnam Shares Climb Up on Bluechip Buying
Vietnam’s shares ended slightly higher Tuesday as local investors bought in bluechip
stocks after state media said interest rates may be reduced, driving more investors to
stock market.
Local players returned to buy shares on the news that the state bank BIDV will lower
lending interest rates in both Vietnam dong and dollar, which will help ease the
borrowing burden for businesses, a trader with Kim Long Securities said.
“The macroeconomic situation is really getting better, enabling banks to reduce interest,”
he said.
“Along with strong foreign purchases, I think the key index will jump to 450 soon,” he
said.

440. VN-Index today rose 0.82 points, or 0.19%, at 436.71.
Market volume was 14.7 million shares valued at VND521.9 billion Tuesday, compared
with the record high of 24 million shares valued at VND832.6 billion Monday.
STB, today’s most active stock, closed up 3% at VND24,400 on a trade of 2.8 million
shares.
DPM, the second most active stock, rose 2% at VND50,000 on 1.8 million shares, of
which foreign investors bought 595,560 shares and sold 33,350 shares.
PVD surged 2.9% at VND89,000 on 682,590 shares, including 343,560 shares bought
and 6,810 shares sold by foreigners.
SJS is the most advancer, rising 3% at VND51,500 on 188,550 shares, including 83,940
shares bought and 1,500 shares sold by foreign players.
In the downside, PPC fell 2.9% at VND26,900 on 233,530 shares, with foreigners buying
6,060 shares and selling 38,190 shares.
DRC is the most decliner, falling 12.9% at VND31,100 on 50,050 shares.
In total, 55 stocks ended higher, 83 lower, 13 unchanged and two untraded.
Among four fund certificates, one closed higher, one lower and two unchanged. (HOSE
July 8)
Vietnam News
July 7, 2008
Inter-bank Forex Rate: $1=VND16,519
Banking & Finance:
State Budget Disbursement in H1 Meets 27.7% of Yearly Plan
The disbursement of state budget capital in the first half reached only 27.7% of the
annual estimates and that of government bond capital met only 13.4%, the Bao Ve Phap
Luat (Law Protection) newspaper reported.
The Ministry of Planning and Investment (MPI) said the implementation and
disbursement for projects funded by the development investment capital (from the state
coffer) and government bonds were slower than the projections.
The reasons are attributed to the surging prices of construction materials. Many projects
attracted no investor.

441. Even the ODA-funded projects faced difficulties due to higher input prices.
Total investment estimates for projects have to be increased, but there is a shortage of
capital to supplement to these projects, the ministry said.
A report from MPI and Ministry of Finance said Vietnam has cut more than VND17
trillion investments in projects in the first six months, half of which are government
bond-funded projects.
The Government of Vietnam has earlier this year planed to cut 10% of investments
sourcing from state budget, equal to VND13 trillion or VND14 trillion, in order to curb
inflation and stabilize macro economy.
The consumer price index (CPI) in June is lowered to 2.14%, the lowest rate in a single
month in the first half. (Law Protection Jul 7 p2, Financial Times Jul 7 p2)
Central Bank Pumps $400 Mln Dollar to Local Market Last Week
The State Bank of Vietnam (SBV), the country’s central bank, sold approximately $400
million of the U.S dollar to local banks last week, the Thanh Tra (Inspector) newspaper
cited a senior official of the SBV as saying July 5.
The supply of nearly $400 million dollar helped reduce foreign exchange rate and ease
demand for greenback in the domestic black market, the official said.
Gold shops say they buy the U.S dollar at VND17,150 sell at VND17,250 July 7, versus
VND17,250 bid July 4.
The central bank, meanwhile, fixes the official exchange rate of USD/VND at
VND16,519 July 7, down from VND16,520 July 4.
The SBV is increasing efforts to prevent dollar speculation after the U.S dollar has ever
rocketed to VND18,000 and even VND18,900/$1 at the free market in Hanoi.
Telling the Dau Tu Chung Khoan newspaper June 27, the SBV governor Nguyen Van
Giau said the bank had sold $5 billion foreign currencies to commercial banks since the
beginning of this year to stabilize foreign exchange market.
The central bank has just decided to double the daily trading band for the U.S dollar and
Vietnam dong to 2% from the 1% from June 27. (Inspector Jul 5 p8, Vietpan)
Vietnam Central Bank Puts Interest Rates Under Scrutiny

442. The State Bank of Vietnam (SBV) has made a document asking its branches to check
deposit interest rates currently offered by local credit institutions in an effort to force the
rates down, the SBV's website said July 3.
Under the Document No. 6076/NHNN-TTr dated July 3, 2008, the SBV governor has
requested local banks to review mobilization interest rates and set the rate at a rational
level in line with lending interest rates to reduce business operation costs.
All commercial banks setting average interest rate higher than 17.5% per year will have
to report their business plans, and the deposit interest rates must be set at rational levels
to ensure real profit for banks when giving loans at 21% at maximum.
The SBV has also threatened to make heavy punishment on the commercial banks which
offer high deposit interest rates, but do not have suitable business plans for the capital
mobilized at high cost, and cannot cover the expenses.
In the same move, the central bank has decided to establish 14 groups of inspectors who
will examine the deposit interest rates applied by the banks in HCM City.
Ho Huu Hanh, director of the HCM City Branch of the SBV, said that all the banks,
offering the interest rates of 19% and above, have been asked to adjust the interest rates.
Last week, KienLong Bank introduced the highest ever interest rate in Vietnam at 20%
per year. However, after just one day in existence, the SBV forced it to reduce the rate to
19% per year.
The State Bank of Vietnam has maintained the basic interest rate of 14% for July, which
means that the maximum lending interest rate is 21% per annum. (Investment Jul 7 p7,
Economy & Urban Jul 7 p5)
Fitch Rates BIDV Individual at D/E, ACB at D
The credit rating agency Fitch has affirmed the Bank for Investment and Development of
Vietnam (BIDV)’s Individual rating at “D/E” and Support rating at “4”, and the rating for
the Asia Commercial Bank (ACB)’s at “D” and at “5”, respectively.
“BIDV's Individual rating reflects its established franchise, good profitability and
improved asset quality,” Fitch said. “It also factors in the bank's still weak capitalization,
concentrated loan book and relatively unsophisticated risk management procedures.”
Although the authorities' propensity to support the bank is extremely high, given BIDV's
state ownership and franchise, Fitch expects a limited probability of external support
owing to uncertainties about the government's ability to do so.

443. “BIDV's Individual rating would benefit from stronger capitalization and from managing
the bank more commercially,” said Sabine Bauer, director in Fitch's Financial Institutions
team.
“In turn, downward pressure could arise should any significant deterioration in the bank's
financials come to pass as a result of the current volatile economic environment in
Vietnam,” he said.
Meanwhile, ACB's Individual rating is based on its good profitability, sound asset
quality, adequate capitalization and generally prudent management, with a focus on
liquidity.
However, the rating also factors in risks arising from the bank's recent rapid growth and a
now volatile and challenging economic environment.
Given ACB's relatively moderate size, Fitch believes that support from the authorities,
although possible, cannot be relied upon.
However, some liquidity/capital support from its 15.9% strategic shareholder, Standard
Chartered plc (rated 'A+'/Stable) may be available.
“If the current high inflation and interest rate environment in Vietnam persists, higher
credit costs will likely arise, placing pressure on ACB's Individual rating,” said Sabine
Bauer. (Thaipr.net Jul 4, Fitchresearch)
Eximbank Helps Enterprises Mitigate Forex Risks
Vietnam Export Import Commercial Bank (Eximbank) has launched various products
helping import and export enterprises minimize foreign exchange rate risks, the Vietnam
News Agency reported July 4.
Truong Van Phuoc, former head of foreign exchange department under the central bank
and now CEO of Eximbank said that those products would help exporters and importers
and fix a exchange rate to calculate their expenditure and product price.
“Eximbank will set aside $100 million and VND2 trillion to support import-export
enterprises via those products,” he said.
For exporters, Eximbank will offer the discount products in foreign currencies applied on
sets of export documents with the interest rate of 8.4% per annum, collect U.S. dollar
debts and lending products in the dong at 8.4% per annum as well. Exporters sell U.S.
dollar in line with the forex rate on the disbursement date.
For importers, Eximbank's products are loans at 8.4% per annum with the term that
enterprises must suffer forex rate exposure under deadline contracts or option contracts or
contracts with fixed forex rate.

444. With low lending rates, those products not only help enterprises lower input cost but also
help them avoid risks, Phuoc said, adding they could protect them from forex risk rate as
it was hard to say that if Vietnam dong continues devaluing in the rest of the year or not.
In the first four months this year, the U.S. dollar had appreciated from VND15,800 to
even VND19,500 before going down, or a fluctuation of 24% in six months so the risk of
forex rate is real, he stressed.
Eximbank is now the largest commercial joint stock bank in Vietnam with a capital of
more than VND12.6 trillion. (Young People Jul 4 p1, Vietnam Economic Times Jul 4 p2)
Vietnam’s Top Ten Satisfying Banks Announced
The Consumer and Business Research Center has announced the ten most satisfying
commercial banks in Vietnam 2008 rated in a poll.
The top honor is Asia Commercial Bank (ACB), followed by Vietcombank, DongABank,
Agribank, Sacombank, Vietinbank, BIDV, Eximbank, Techcombank and Oricombank.
The satisfaction criteria focus on three factors, including treasury, payment and financing.
The rating is aimed to encourage commercial banks to better develop. (Vietnam
Economic Times Jul 7 p2, Laborer Jul 7)
First Mobile Banking Service Launched in Vietnam
The Australia and New Zealand Banking Group (ANZ), which has been approved in
principle by the State Bank of Vietnam to incorporate its 100%-owned bank in the
country, officially launched the country’s first mobile banking service on July 4.
ANZ said the latest service would allow its customers in Hanoi and HCM City to carry
out banking activities at a time and location that suited them.
“People have limited time these days and this service will make banking easier,” ANZ
Vietnam Retail Banking General Manager Philip Crouch said.
Customers can call ANZ’s 24-hour toll free customer service center to arrange an
appointment for one of ANZ’s mobile banking managers to visit.
ANZ has recently announced plans to open at least four new outlets more in the
Southeast Asian country by the end of this year. (VTC News Jul 4)
GTZ, InWEnt Help Train Vietnam Banking Officials

445. The State Bank of Vietnam (SBV) said on its Web site that it has just signed an
agreement with Technical Cooperation (GTZ) and Capacity Building International
(InWEnt) of Germany on a training program for Vietnamese banking officials in the
2008-2009 period.
The program will focus on macro-economic management, monetary policies, financial
market, banking inspection, leadership skills and international integration in the banking
and finance fields.
Professors from U.S. universities and senior experts of central banks of Germany and
Australia are invited to give lectures to SBV branches’ heads and lecturers of Vietnam’s
Banking Institute and National University of Economics.
The SBV said this training program is an extension of a program it has already
implemented with GTZ since 2006 with the aim of developing a local sustainable
banking staff. (ww.sbv.gov.vn Jul 4)
Trade:
Vietnam, U.S. Ink MOI on Trade Acceleration
The U.S Agency for International Development (USAID) and the Vietnamese
Government Office and the Ministry of Foreign Affairs July 4 jointly signed a
Memorandum of Intent (MOI) on an extended project “in Support for Trade
Acceleration” (STAR) for the 2010-11 period, local media reported.
The signing took place on the occasion of USAID Director Henrietta H.Fore’s on-going
visit to Vietnam.
The project, which was first launched in 2001, has helped promote bilateral economic
relations with focus on Bilateral Trade Agreement (BTA) commitments, World Trade
Organization (WTO) commitments and Vietnam-U.S. Trade and Investment Framework
Agreement (TIFA), Minister, Director of the Government Office Nguyen Xuan Phuc
said.
With an annual budget of some $3 million to be fully covered by USAID, the STAR
project has also extended assistance in law making, administrative reforms,
implementation of intellectual property and human resource development, Phuc added.
The MOI, with higher financial commitments and broader goal, is expected to enable the
two parties to better implement the project in the next stage, thus contributing practically
to the Vietnam-US relationship in the interest of the two peoples.
Speaking at the signing ceremony, Henrietta H.Fore described STAR as the outcome of
increasingly stronger and deeper relations between the US and Vietnam.

446. She also said that with stronger financial commitments from the USAID, the MOI would
help expand STAR projects in Vietnam.
STAR is a program of cooperation between USAID and the Government Office which
represents almost 40 ministries, organizations and local administrations in Vietnam.
In the afternoon of the same day, Prime Minister Nguyen Tan Dung highly appreciated
the signing of the MOI on the extended STAR project as a practical contribution to the
Vietnam-U.S. relationship while receiving USAID Director Henrietta H. Fore.
The cabinet leader pledged that the Vietnamese Government would do its utmost to fulfill
its commitments to the U.S. as reflected in the Joint Statement released at the end of his
recent visit to the U.S.
This year, Vietnam is forecast to obtain a slight export increase to the U.S. to $11 billion
from $10.3 billion in 2007 despite the worry about the U.S. economy’s recession, said
MoIT.
The country is estimated to spend $1.7 billion on imports from the U.S., down 10.52%
on-year.
The U.S. is now Vietnam’s largest export market while the ASEAN country has been
listed among 30 biggest exporters to the U.S. in 2007, according to a report by the U.S.
International Trade Commission (ITC). (Youth Jul 5, VNA Jul 4)
Vietnam Fetches $627 Mln from Exports to Malaysia in Jan-Apr
Vietnam reportedly earned $627.86 million from goods exports to Malaysia in the first
four months of this year, said the Ministry of Industry and Trade (MoIT)’s website.
Of the sum, the country’s exports in April were $251.29 million, said the website without
giving on-year comparisons.
Crude oil remained Vietnam’s biggest cash earner with $346.51 million, followed by rice
with $58.54 million, seafood $14.77 million, coffee $14.55 million, electronics and
computers $8.64 million, tin $7.96 million and garments and textiles with $7.89 million.
Vietnam has incurred trade deficit with Malaysia for years, said the ministry, adding that
its major imports from the ASEAN country include chemicals, electronic products, iron
and steel products, transport equipment, textile and clothing. (Vinanet Jul 7)
Industry:
Vietnam to Triple Capacity of First Oil Refinery to 16.5 Mln Tons/year

447. The state-owned oil monopoly PetroVietnam group is seeking the Vietnamese
government’s approval to cooperate with foreign partners to triple annual capacity of the
Dung Quat oil refinery to 16.5 million tons, PetroVietnam CEO Dinh La Thang said.
Dung Quat oil refinery, the first of its kind in Vietnam, has been designed to have a total
capacity of 6.5 million tons, he said.
“The expansion will enable the refinery to operate more effectively to meet the domestic
demand for petroleum products and contribute to Vietnam’s energy security,” Mr. Thang
told the Vietnam Investment Review (VIR) newspaper.
The move will also take full advantage of available modern infrastructure of the oil
refinery in particular and Dung Quat economic zone in general, the official said.
PetroVietnam, however, has not yet specified the expansion schedule for Dung Quat oil
refinery.
The $2.5-billion oil refinery, with expected products of propylene, liquefied petroleum
gas (LPG), lead-free petrol, diesel and fuel oil, is under construction in central Quang
Ngai province, and is estimated refine 33% of the country’s entire demand for petrol and
oil once fully operational in February 2009.
Without major refineries, Vietnam has to import almost all of petroleum products for
domestic consumption. In the first six months, the country spent $5.92 billion importing
6.81 million metric tons of petroleum products, up 68.9% on year and 4.4%, respectively,
said the General Statistics Office (GSO). (Vietnam Investment Review Jul 7-13 p1)
PetroVietnam to Start New Oilfields Soon to Ensure Crude Oil Output
State-owned oil monopoly PetroVietnam group has planned to operate five new oilfields
sooner than its scheduled in a bid to fulfill its set target to produce between 15.5 million
and 16 million tons of crude oil this year regardless of current difficulties in production,
CEO Dinh La Thang said.
Mr. Thang told a press conference July 4 in Hanoi that amid growing crude oil prices in
the world, ensuring exploitation output is most important to boost export turnover, and
make more contribution to the state budget.
To this end, he said, the group is working urgently to tap five oil wells ahead of schedule,
including Su Tu Vang, Ca Ngu Vang, Phuong Dong, Song Doc and Bunga Orkid with a
combined production output of about 100,000 barrels a day.
Ca Ngu Vang (Gold Tuna) and Bungaorkid (Malaysia) wells are expected to bring out the
first barrels later this month [July], the official said.

448. Phuong Dong well will be tapped in August this year, and Su Tu Vang (Gold Lion) and
Song Doc in September.
Thang said PetroVietnam is calling for foreign investment in exploring and producing oil
and gas in potential areas, while seeking overseas investment opportunities and purchase
of oil and gas wells in Africa, America, former SNG countries and Southeast Asia.
The group is finalizing negotiations to sign contracts on oil and gas exploration and
exploitation in Russia and Venezuela, Thang said.
It is also taking drastic measures to speed up construction paces of national key oil and
gas projects.
In the first half of this year, PetroVietnam produced 10.8 million tons of oil equivalents
from 7.2 million tons of crude oil and 3.6 billion cubic meters of natural gas in the first
half of this year.
The group obtained revenues of VND142,342 billion ($8.67 billion), including $5.6
billion from crude oil exports, and contributed VND50.53 trillion ($3.08 billion) to the
state budget in the January-June. (Thanh Nien Daily Jul 6, VNA Jul 5, Labor Jul 5)
PetroVietnam to Launch Petrol Work Designing Company Soon
The state-owned oil monopoly PetroVietnam group July 8 will make debut
WorleyParsons Design Joint Stock Company (WPV) to improve competence in designing
oil and gas works, the Lao Dong (Labor) newspaper reported, citing the group's sources.
Petroleum Technical Services Joint Stock Corporation (PTSC), PetroVietnam
Exploration Production Corporation (PVEP), PetroVietnam Gas Corp (PV Gas),
PetroVietnam Construction Joint Stock Corp (PVC) and Australian WorleyParsons Sea
PTY Limited Company are expected to invest in the hoped joint venture.
WPV will operate in fields of designing oil and gas works; consulting research on oil and
gas economy, technology, construction and investment; and providing management
services.
The company is expected to recruit about 100 experts and design engineers this year and
its personnel will climb to 600 in 2010, said Mr. Timothy Ducan Elms, WPV's general
director. (Labor Jul 7 p3)
Vietnam Company to Build 600-MW Power Plant in North
The Vietnamese Ministry of Industry and Trade has recently approved Thang Long
Thermal Power Joint Stock Company to build a 600-megawatt thermal power plant in
northern Quang Ninh province, the Lao Dong (Labor) newspaper reported, citing the
ministry's sources.

449. The two-turbine plant will be built at a total cost of $865.5 million and it will generate
about 3.67 billion kWh of power per annum once fully operational in the second quarter
of 2012.
The Thang Long thermal power plant is estimated to use over 60 million tons of coal and
180,000 tons of diesel oil (DO) during its expected 30-year operation.
Power-thirsting Vietnam plans to build an additional 12 thermal power plants with a
combined capacity of between 6,300 MW and 7,000 MW in the northern key economic
zones by 2015.
The country’s power shortfall is estimated at 8.6 billion kWh for the whole year 2008, 36
billion kWh in 2020 and 120 billion kWh in 2030. (Labor Jul 7 p3, Vietnam Economic
Times Jul 7 p3)
Central Vietnam Province Okays 125-MW Hydropower Project
Central Quang Ngai province authorities have recently approved Dakdring Hydropower
Joint Stock Company to build a 125-MW hydropower plant in the locality later this year,
said Tran Minh Tuan, the company's general director.
The Dakdring hydropower plant costing over VND3 trillion ($187.5 million) will be
constructed in Son Tan commune of Son Tay district, the Vietnam Economic Times
newspaper quoted Mr. Tuan as saying.
The plant, which is the biggest of its kind in the province, is expected to partially help
ensure sufficient power supply for local Dung Quat economic zone once fully operational
in 2013.
Quang Ngai province has recently submitted to the Ministry of Industry and Trade for
approval a plan to build a $2.59 billion thermal power plant with a total capacity of 2,400
MW in local Dung Quat economic zone.
Vietnam plans to raise the total capacity of hydropower generation projects to more than
18,000 MW and the annual output of over 80 billion kWh by 2015, under the national
power development plan through 2015 and span to 2025, or plan VI. (New Hanoi Jul 7
p1, Vietnam Economic Times Jul 7 p3)
Agriculture:
Vietnamese Agronomists to Help Poor Countries Develop Agriculture
Vietnam is expected to send more agronomists to poor countries who are struggling to
boost agricultural production, the Voices of Vietnam reported.

450. The International Cooperation Department under the Ministry of Agriculture and Rural
Development advised the government to sign a tripartite agreement between Vietnam,
South Africa and Guinea to help Guinea develop agriculture.
Under the pact, 15 first Vietnamese agronomists arrived in Guinea in May 2008 to carry
out “Increasing Yield of Rice and Vegetable” project.
The ministry is also making preparation for the agreement between Vietnamese
government and the Food and Agricultural Organization (FAO) and Namibia, under
which 12 Vietnamese agronomists will go to Namibia to help the country develop
aquaculture.
The ministry has also submitted a draft on agricultural cooperation with African countries
to the government, after several countries in the region suggested Vietnam help them
develop farming and aquaculture.
Dr Vo Tong Xuan last month arrived in Nigeria and Ghana to survey project helping the
countries grow Vietnamese wet paddy. (VOV July 7)
Vietnamese Salt Priced Highest in the World
Thin supply has made salt prices at the domestic market rocket and be priced highest in
the world, Vietnamese state media reported Monday.
The Tien Phong (Pioneer) newspaper cited the Agricultural and Forestry Product
Processing and Salt Department as saying that price of imported salt to Vietnam is $70 a
ton at seaport, and it is selling for $100 a ton at domestic market. This price is said to be
highest in the world where salt is offered at between $20 and $25 a ton on average.
The department said the price will continue rising in the near time to come following the
consecutive increases of oil price at global market.
“Salt price in Vietnam will surpass $100 a ton,” a local salt trader said.
An analyst said salt price has risen 300% so far this year, mostly due to strong increase of
demand, but low supply.
The Ministry of Industry and Trade and the Ministry of Agriculture and Rural
Development asked for permission from the government to increase salt import quota by
200,000 tons in 2008, to calm down salt shortage.
The department said the country’s total salt import volume will hit 430,000 tons this year.
Vietnam’s total salt output in 2008 is estimated at around 900,000 and 950,000 tons, but
the country’s demand hit 1.3 million tons. (Pioneer July 7 p1)

451. Business:
Plastics Firms Facing Huge Difficulties on Soaring Material Price
Two thousand and two hundred plastics companies in Vietnam are facing difficulties with
several having closed their factories as material prices have rocketed 50% since the
beginning of the year driven by the fast increase in crude oil price, the Saigon Times
Daily reported.
Plastic materials are by-products from the oil refining process, so when the crude oil
price goes higher, pushing up prices of plastics materials, said Ho Duc Lam, vice
chairman of the Vietnam Plastics Association (VPA).
The price of plastics materials has increased nearly 50% compared to early this year. The
import price of plastic grains now has amounted to around $2,200/ton, Lam said.
Many medium and small plastics enterprises in the country have decided to close their
factories as one of the safe ways to avoid losses, he added.
Meanwhile, manufacturers could not constantly increase the price of their products due to
the harsh competition and the rejection from customers.
Many plastics enterprises said when they revised up the selling price by some 10%, the
purchasing power fell noticeably.
According to VPA, most of the imported plastic materials are from the Middle East,
Singapore, Taiwan and the U.S. It is more alarming for the country’s plastics industry
when the price of crude oil in the world is increasing daily.
In addition to the higher price of materials, materials are also in short supply at the
moment.
With unstable and unpredictable price of crude oil in the world, the price of plastic
materials could rise 15% by September this year, Lam forecast.
To deal with difficulties for the industry, the VPA early this month sent a petition to the
government asking for support in terms of financial treatment for the industry.
The VPA also asked the government to allow the import of wasted plastic materials for
recycling as a way to cut cost for the industry.
Vietnam reportedly earned $435 million from exporting plastic products in the first half
of the year, an on-year increase of 38.2%.
Among 39 countries and territories importing the plastics from Vietnam, Japan continued
to be the biggest with turnover of $74 million in the first five months of 2008, followed

452. by the U.S. ($58 million) and Cambodia (over $23 million). (Saigon Times Daily Jul 4
p1, VNA Jul 4)
Vidamco Opens $3 Mln Auto Showroom in HCM City
Vietnam-GM Daewoo Company (Vidamco), a South Korean automobile manufacturer
and importer, July 3 inaugurated a $3 million dealer showroom in HCM City.
The showroom, addressed at 928 SU Van Hanh Street in District 10, will display all of its
automobile brands as well as GM Daewoo auto parts and accessories, said Kim Jung In,
general director of Vidamco.
The brands available at the showroom, which was moved from Le Loi Boulevard in
District 1, include the five-seat Chevrolet Spark, Lacetti and Gentra, and the seven-seat
Chevrolet Captiva.
The company's factory in Tu Hiep commune, Thanh Tri district of Hanoi has an annual
output capacity of up to 10,000 passenger cars and 500 buses a year.
Since its establishment in 1993, the company has sold more than 41,000 vehicles and
secured a market share of 25% for five-seat autos in Vietnam.
In the first six months of the year, Vidamco reported total revenues of more than $70
million. The figure is expected to increase to $155 million by the year end. (Young
People Jul 4 p2)
Asiana Airlines Launches 3rd Flight in Vietnam
South Korea’s Asiana Airlines has launched its third flight to Vietnam linking Seoul and
central Danang city, Vietnamese state media said Monday.
Some South Korean 141 passengers on the A320 aircraft landed in Danang International
Airport July 5, expecting to have nice holiday in resorts in central provinces of Vietnam,
the Tuoi Tre (Youth) newspaper said.
Kang Joo An, chairman of the Asiana Airlines, said the carrier will conduct 15 flights to
the city from now to August 25, with two a week on Tuesday and Saturday.
Asiana Airlines is also offering flights from Seoul to Ho Chi Minh City and Hanoi. (The
Youth July 7, Young Peope July 7)
HCM City’s Leading Mobile Phone Retailer Opens Office in Hanoi
Ho Chi Minh City’s leading mobile phone retailer Vien Thong A has opened a Hanoi
representative office and showroom as part of its business expansions in the city,
Vietnam News Agency said Monday.

453. The company, which has 22 mobile phone outlets in HCM City, Binh Duong and
Danang, said it would also expand its network to other provinces in the North such as
Haiphong and Quang Ninh.
The firm, which sells Nokia, Samsung, Sony Ericsson, Motorola and BenQ-Siemens
brands, aims to sell 100,000 hand sets this year. The company earned VND1.8 trillion
($112.5 million) in 2007. (VNA July 5)
Foreign Investment:
Formosa Starts Largest FDI Project in Vietnam
Taiwan’s Formosa Heavy Industries Corp. July 6 began construction on a steel and sea
port complex worth $7.8 billion in the first stage, the largest foreign direct investment
(FDI) project ever licensed in Vietnam so far, state media reported.
The breaking-ground ceremony saw the participation of Prime Minister Nguyen Tan
Dung, who issued an order to kick off the Iron/Steel and Son Duong Port Complex
located at central Ha Tinh province’s Vung Ang Economic Zone.
In the project’s first stage, the Taiwanese investor will build an iron and steel plant with
an annual capital of 7.5 million tons and a deep-water seaport of 30 million tons per year,
Vietnam News Agency said.
Construction for this stage of the iron and steel plant and the port is scheduled for
completion within four and three years respectively, the agency said.
Once fully operational, the iron and steel is expected to provide jobs for nearly 10,000
laborers.
In the second phase, Formosa will pour an additional $8 billion to double the iron and
steel plant’s capacity to 15 million tons per year and increase the port’s annual capacity
to 60 million tons to enable it to receive ships of 200,000-300,000 tons, the agency
added.
Speaking at the ceremony, PM Dung wanted the Taiwanese company to speed up the
project and asked the firm to boost employment support for locals during the
construction.
Chairman of Formosa group Wang Wen Yen said the project, licensed late last month,
the iron and steel factory would become the largest in all of ASEAN, and one of the 15
largest 15 in the world.
Formosa Heavy Industries Corp., set up in 1954, has many plants around the world,
including in the U.S., China and Vietnam.

454. Vung Ang is located on a national highway that connects to the Cau Treo and Cha Lo
border gates leading to Laos and Thailand.
As of late 2007, Vung Ang EZ attracted 29 projects worth VND45 trillion ($2.9 billion),
mostly focusing in the areas of metalwork, engineering, and shipyard projects, according
to the local Saigon Times Daily.
Vietnam has two biggest steel reserves including Thach Khe in central Ha Tinh province
with 544 million tons and the Quy Xa in northern Lao Cai province with 122 million
tons. (Vietnam News Agency July 6, Labor Jul 7 p1, New Hanoi Moi Jul 7 p1)
Vietnam Warned of Unprecedented Impacts of Real Estate FDI-Economist
Le Dang Doanh, a leading economist in Vietnam, has recently warned of unprecedented
impacts by FDI pouring into the Asean country’s real estate because FDI investment
invested into realty has kept soaring, reaching $13.12 billion in Jan-Jun, accounting for
96% of the service sector’s total.
FDI-invested tourism projects only help boosting the development of the local tourism
sector, but have not helped create jobs for locals and accelerate technology transfer and
exports as well, Mr. Doanh cited by the An Ninh Thu Do (Capital Security) newspaper as
saying Monday.
Worse still, investors of FDI projects have the right to own lands, particularly farmlands
for 50 and 70 years, which will have bad impacts on the country’s socioeconomic plans
and food security, Mr Doanh emphasized.
Massively licensing FDI-invested realty and gold courses projects in recent years are
partly attributed to inflating lands and property prices, steel and construction materials,
analysts said.
FDI poured into the realty sector has accounted for 42% of the total, up from 35% in
2007, and 22% over the past 20 years, the newspaper said.
Ho Chi Minh City is taking the lead in Vietnam with FDI accounting for up to 80% and
19 biggest FDI-invested realty projects, the Ministry of Planning and Investment said.
Between Jan and Jun, Vietnam recorded $31.6 billion pledged FDI, tripling that last year.
(Capital Security Jul 7 p3, Vietpan Database)
Japan’s INAX Opens 6th Plant in Vietnam
Japanese-invested INAX Vietnam Ltd.Co. has just inaugurated a $20.5-million new plant
in southern Ba Ria-Vung Tau province, the 6th in Vietnam, the Vietnam Economic
Times reported Monday.

455. The plant, built on a 80,000 square meter site in Tan Thanh district’s My Xuan A
Industrial Park, is designed to produce 1.2 million square meters of face ashlars bricks
and 15,000 tons of materials for brick facing per year.
Initially, the plant will focus on the production of lumpy and plain tiles and particularly
bricks for angle facing.
“We still decide to expand investment in Vietnam where is home to many competitive
products as we believe in our business strategy”, said the company’s General Director
Hamada Yoichiro in a recent interview with the newspaper.
INAX’s ashlars brick products, which have been present in Japanese market for 80 years,
are also famous in many countries worldwide for their good quality and diversified
designs.
Additionally, INAX brings customers supporting products such as mortar, glue and anti-
wet substances for construction works. (Vietnam Economic Times Jul 7 p4)
Infrastructure:
Ground Broken on $466.3-Mln North-South Road
The Nam Cuong Group July 6 began construction on a north-south road worth a total
investment capital of VND7.7 trillion ($466.3 million) in northern Ha Tay province, state
media said.
The 63-kilometer road will pass through seven districts in Ha Tay from Phuc Tho (36
kilometers from Hanoi) to Phu Xuyen (35 kilometers from Hanoi), the Labor newspaper
reported.
The four-lane road will be 42 meters in width and have a separate 5-meter strip of trees.
Construction for the project will last four years under the Build-Transfer model, the
newspaper said.
Nam Cuong Group, which is selected by the provincial People’s Committee as the
contractor, will build the road with its own capital. In return, the committee will give the
firm land to implement other projects.
The company’s Chairman Tran Van Cuong said it would become the most modern road
to the capital when completed.
He also added that industrial and urban zones with a population of 500,000, trade and
services centers and cultural centers are expected to be built on both sides of the road.
Infrastructure such as electricity and communications will be set up underground, Cuong
said. (Vietnam News Jul 7 p2, Labor Jul 7)

456. Politics & Law:
UNHCR Praises Vietnam’s Solutions on Refugees
Vietnam has exerted serious efforts in solving refugee-related issues and implementing
successfully many humanitarian policies, Raymond Anthony Hall, United Nations High
Commissioner for Refugees (UNHCR) Representative for Southeast Asian region said
Jul 4.
Speaking after a fact-finding tour of Vietnam, Hall stressed if Vietnam continued these
efforts, it would become a typical example in implementing humanitarian policies for
refugees and immigrants.
The UNHRC official gave special interest to programs initiated by the Ho Chi Minh City
authorities to help Cambodian immigrants to settle down.
During his tour, Hall met with 12 highlanders repatriated to central highlands Gia Lai
province. Local authorities had helped these people stabilize their accommodation and
jobs, he said.
Wrapping up the visit, Hall affirmed he was pleased with what the Vietnamese
government had been doing to develop an economy based on political stability and
improvement of people’s living conditions.
In 2005-07, the Commissioner financed $750,000 to build infirmaries, schools and
kindergartens to serve the demands of repatriated Vietnamese refugees, according to
UNHCR Representative in Vietnam Vu Anh Son.
The UNHCR will continue its coordination with the Vietnamese and Cambodian
governments in dealing with existing issues in the coming time through a more
comprehensive plan of action, in which Vietnam will receive assistance in policy making
and technical solution, Son said. (Thanh Nien Daily Jul 5 p2, News p5, Youth p2)
USAID Committed to Long-term Aid for Vietnam
Director of the U.S. Agency for International Development (USAID) Henrietta H. Fore
has pledged to continue long-term aids to the nation’s socio-economic development,
Hanoi Moi online newspaper said July 5.
The USAID official made the commitment in Ho Chi Minh City on July 5 before ending
her three-day visit to the country.
Measures to mobilize strength of the state and private economic sectors as well as non-
governmental organizations are expected to top the agenda in USAID’s cooperation
program with Vietnam, she noted at the meeting with the city’s vice chairman Nguyen
Thanh Tai.

457. Fore also told her host that U.S. companies are willing to provide and transfer healthcare
and social services in addition to expanding their business activities Vietnam.
During her stay in the southern economic hub, Fore visited a drug detoxification center
using methadone that is funded by the U.S. President’s Emergency Plan for AIDS Relief
(PEPFAR).
She applauded joint efforts of the Vietnamese government and the city in helping drug
addicts give up the habit and integrate into the community, thereby reduce the spread of
HIV/AIDS and drug-related crimes.
The USAID’s aid for projects in Vietnam has increased to $70 million in 2008 from $6
million in 2003.
Of the sum, up to $45 million was poured into HIV/AIDS prevention projects. The
remaining was spent for the economic development, bird flu prevention and other
programs relate to environment protection, humanitarian aid and disaster mitigation.
Apart from the USAID’s fund, total aid for Vietnam of other U.S. agencies is estimated at
$129 million this year. (Hanoi Moi Online, VietnamNet Jul 5)
Vietnam, India Mark One-Year Strategic Partnership Ties
Vietnam and India Saturday [July 4] celebrated one-year of establishment of the bilateral
strategic partnership ties and expect bilateral trade to $3 billion this year, Vietnamese
state media said.
The strategic partnership relations were launched on the occasion of Vietnamese Prime
Minister Nguyen Tan Dung’s visit to India July 4-6 last year at the invitation of Indian
Premier Manmohan Singh, the second high-profile visit after Party Chief Manh’s in
2003.
The bilateral ties have witnessed comprehensive and significant changes on the trade,
investment fields since then, according to the Vietnam Friendship Associations
Confederation.
The bilateral trade expanded to $1 billion in the first three months this year, equaling $1.5
billion last year, and is expected to hit $3 billion this year, surpassing 50% of the Asean
country’s target set for 2010, the Thanh Nien (Young People) newspaper said.
India is among Vietnam’s biggest foreign investors.
Besides, Vietnam and India want to deepen the bilateral military ties by exchanging high-
ranking army delegation visits.

458. New Delhi will transfer 5,000 spare parts to help Vietnam’s aging Petya-class ships and
accept Hanoi’s request to train 50 naval dockyards personnel at Mazagon Docks, Indian
army officials said in the statement on the occasion of Indian Defence Minister A.K.
Antony’s visit to Hanoi Dec 16-18 last year. (Young People, Saigon Liberation Jul 5 p1,
Vietpan Database)
Vietnam, Thailand Fortify Political, Security Cooperation
The Vietnam-Thailand Political and Security Cooperation Working Group held their third
meeting in Bangkok on July 3 to discuss bilateral cooperation from now to 2010,
Vietnam News Agency said.
The meeting’s agenda is based on the agreement on the field signed in December 2006.
Deputy Foreign Minister Dao Viet Trung and Secretary General of the Thai National
Security Council Lieutenant General Surapong Puen-aiyaka co-chaired the meeting,
focusing on challenges to the two countries’ political and security cooperation when the
region and the world are dealing with non-traditional crimes, food security and energy
issues, human trafficking and natural calamities.
Head of the Vietnamese delegation expressed his belief that the bilateral cooperation in
the fields would contribute to promoting economic growth, politics, security and tourism
in each country region and the world as well.
Separately, two ships of the Vietnam People’s Army Navy joined the Thai Royal Navy in
a patrol on July 3 in order to boost friendship and mutual understanding and trust
between the two navies.
After the patrol, the two sides are scheduled to hold cultural and sport exchanges at the
Sattahip military port.
This was the first time Vietnamese naval ships went on an exchange tour with foreign
navy. (VNA Jul 3, 4)
Labor & Education:
Vietnam Joins UK-funded Connecting Classrooms Project
More than 30 junior high schools in Vietnam cities of Hanoi, Danang and Ho Chi Minh
City are taking part in an UK-funded project entitled “Connecting Classrooms-Asian
Dialogues” from July 7-11, the Lao Dong & Xa Hoi newspaper reported.
They will link with schools in the UK and six countries and territories in East Asia,
which include Japan, South Korea, Vietnam, Thailand, Indonesia, Malaysia and Taiwan,
to help broaden pupils’ and teachers’ horizons and allow them to work with their peers in
classroom-based curriculum activities and other areas of common interest.

459. The themes for the activities are climate change, sports and health, global citizenship,
environmental science, business, the future of the world, and science and invention.
School partnerships also provide opportunities for teachers to deepen their cultural
awareness, share effective practices and develop creative approaches to their teaching,
which help broaden the view of their students and prepare them for engaging with the
outside world.
The project is an initiative of the British Council and the UK’s Department for Children,
Schools and Families and within the framework of the education cooperation agreement
that the Vietnamese and the UK governments signed in March this year.
Since the UK and Vietnam established diplomatic ties in November 1973, the bilateral
relationship has been broadened in politics, economics, education, national defense and
other domains.
UK is now one of the biggest donors of Vietnam education.
Currently, around 5,000 Vietnamese students are pursuing education in the UK. The
number of visas granted to Vietnamese students by the UK Embassy in Vietnam
increased by 15% in 2007. (Labor & Society July 6 p11)
Vietnam Aims to Offer Training to 60,000 Ethnic People in 2008
Deputy Prime Minister Nguyen Thien Nhan has urged the Ministry of Labor, War
Invalids and Social Affairs and relevant agencies to offer vocational training chances to
60,000 ethnic people this year, the Thanh Nien newspaper reported Monday.
“The Party and State issued a series of policies to support ethnic minority groups,
including those on education and vocational training, and vocational training for ethnic
minorities must comply with socio-economic developments in localities,” Nhan said at a
national conference held in the Central Highland province of Dak Lak July 4-5.
Deputy PM Nhan-Minister of Education and Training, however, admitted weaknesses
and shortcomings such as the shortage of vocational training establishments, low
enrolment and poor quality of vocational training.
Reports presented by the MoLISA show that the northwestern, central highland and
southwestern regions, where most of ethnic minority groups live, currently have 10
colleges, 43 schools and 110 district-level vocational training centers. The figure can only
meet between 10% and 15% demand of the demand.
The central government is planning to increase capital for vocational training projects in
the regions to VND407.7 billion ($25.5 million) in 2008 from VND18.1 billion ($1.13
million) in 2007.

460. Currently, there are 53 ethnic minorities who total 13 million in Vietnam, accounting for
13.8% of the country population. In 2007, more than 60,400 minorities were trained for
various jobs. (Vietnam News July 7 p1, Young People July 7 p2, People’s Army July 7
p1, Labor & Society July 7 p3, Saigon Liberation July 7 p1)
Health & Environment:
Vietnam Hosts Int'l Seminar on Children Growth
The Vietnam Pediatrics Association, Abbott Laboratories Co co-held an international
seminar on children growth from July 5 to 7 in Hanoi, Ho Chi Minh City and Danang
city, the Thanh Nien newspaper said Monday.
The seminar aims to exchange methods to help children develop comprehensively brain
and body.
Participants at the event include 1,000 pediatrics doctors and nurses, and severe
professors from Spain, the U.S.
As many as 7,000 Vietnamese children die of undernourishment each year. Vietnam is
now named among 36 countries reporting the world's highest rate of children with
restricted growth because of poor diets.
By late 2007, the ASEAN country reported over 4 million under-five children with
malnourishment, of whom, 1.6 million or 21.2% of the country's total children were
underweight and 2.6 million (33.9%) were stunt.
Each percentage of stunt will cause an annual $20 million loss for the economy,
according to experts' calculation. (Young People July 7 p2, Vietpan Database)
Vietnam Reports 500,000 Abortions Annually
Vietnam, the world’s 13th populous country, has witnessed around 500,000 abortion
cases annually in recent years, according to preliminary statistics from the United Nations
Population Fund (UNFPA).
Half of the abortions are unexpected, and one third involves juveniles, said the
organization at a meeting to mark the World Population Day [July 11].
Up to one million of Vietnamese women at child-bearing age want to delay or avoid
being pregnant but they have not used safe contraceptives, leading to high number of
unexpected abortions that may affect women’s health, even cause deaths, the UNFPA.
Demand for contraceptives in Vietnam, which has been listed among the world’s top
three countries with the highest rate of abortions in recent years, will rise 40% in the next
15 years, the agency forecast.

461. The country needs around $132 million for contraceptive methods during the 2006-2015
period as foreign donors will stop funding for these activities.
Birth rate and the number of third-child births are increasing again in Vietnam, said
Nguyen Ba Thuy, Deputy Health Minister, elaborating that the number of newborns and
third-child births rose by 7.2% and 17.3%, respectively.
Vietnam’s population is forecast to soar to 88 million in 2010. (Capital Security Jul 7 p2)
HCMC to Build 100 Automatic Public Toilets to Protect Environment
The Petech Science and Technology Corp (Petech) will carry out the $2 million project to
install 100 automatic public toilets (APTs) across Ho Chi Minh City in a bid to protect
the city's environment, the Vietnam News Agency said.
Chairman of Petech Phan Tri Dung said those toilets will be equipped with smart doors
which are automatically locked and unlocked if pre-set as well as automatic flush,
deodorization and waste treatment systems.
Their price is just a third of similar imported products, he added.
The project is slated for completion later this year.
Petech plans to install an additional 2,000 APTs in other provinces and cities nationwide
following the HCMC project.
The corporation installed 26 other APTs in HCMC, Nha Trang, Danang and trains in
2006. It signed contracts to export 12 toilets ($39,000 each) to Barbados in 2007.
(Vietnam News Agency, VietNamNet Bridge July 7)
Culture & Society:
WB: Rich-Poor Gap Widening in Vietnam
The World Bank’s recent report on Vietnam said that the gap between the rich and the
poor has expanded remarkably despite the country’s sharp poverty reduction achieved
with 13.5 million people still being trapped in, the Cong Ly (Justice) report said Saturday
[July 5].
Between five million and six million Vietnamese still lack foods and this group is always
most vulnerable to any economic restructuring, the report said.
Those people with $1/day are defined the poor and the poverty reduction recently was on
the downtrend with poor families reducing to 16% in 2006, down from 28.9% in 2002
and 58.1% in 1993.

462. Poverty still concentrates on ethnic minorities groups residing mainly in northwestern,
central highlands and southwestern regions in rural areas.
About 1.4 million new workers are added to the manpower of the country each year.
Vietnam’s population is estimated to reach more than 86 million this year. (Justice Jul 5
p3)
Pilipino Manila Water Wins $15-Million Contract in Vietnam
Pilipino Manila Water Co. Inc. said Thursday it won a $15-million water supply
development and management contract in Ho Chi Minh City, the Thoi Bao Kinh Te Viet
Nam newspaper said July 7.
The five-year contract issued by Saigon Water Corp. is Manila Water's first project in
Vietnam, the company said in a statement.
“Under this World Bank-funded project, Manila Water will perform construction works
as well as leakage reduction and district metering area management service to reduce Ho
Chi Minh's non-revenue water,” it said.
Manila Water, the concessionaire for the east zone of Metro Manila, is a unit of
conglomerate Ayala Corp. and partly owned by Mitsubishi Corp.
Manila Water had earlier reported it was vying for projects in Hong Kong, Vietnam,
India and China. (Saigon Liberation Jul 3 p1, Vietnam Economic Times July 7 p2)
Stock Market:
Vietnam Should Mull over SOEs Privatization-WB Senior Official
The World Bank's Noritaka Akamatsu, Leading Financial Economist, said that the
Vietnamese government should continue carrying out its privatization of state-owned
enterprises (SOEs) to implement its international commitments on economic reform, the
Thoi Bao Kinh Te newspaper reported Monday.
However, he emphasized the government need carefully consider and calculate which
enterprises and economic sectors to be privatized in the coming months.
With macro-economic problems such as galloping inflation and trade deficit which are
worrying domestic and foreign investors, it is difficult for the government to sell state
stake at high prices, he said.
In order to boost the privatization effectively, Norikata Akamatsu suggested Vietnam
apply other forms of share sales to facilitate strategic investors to join the market.

463. Currently, strategic investors, who are very interested in privatized enterprises, are not
allowed to buy stake via initial public offerings (IPOs)'s auctions, which are now only for
public investors, but via negotiations with enterprises.
Besides, Vietnamese companies shouldn’t think they have to select strategic partners
before launching the IPO. “Choosing strategic shareholders before or after IPOs will
depend on the performance and operation sectors,” the expert said.
Recently, PhD. Vu Dinh Anh, vice head of the Institute of Price Market under the
Ministry of Finance also said Vietnam should promote the process of share sales as the
macro-economic situation may be improved in the remaining months of this year when
the government is determined to curb inflation.
In 2007, Vietnam privatized 150 SOEs, raking in over VND32 trillion in capital surplus
from IPOs, 4.66 folds higher than the state stake offered, official statistics showed.
(Vietnam Economic Times Jul 7 p15, Vietnam Panorama)
USAID to Provide Technical Assistance to HASTC
The U.S Agency for International Development (USAID) will continue building
technical assistance programs in the coming years to develop the Vietnamese stock
market to a new high, said Ms Henrietta Holsman Fore, director of USAID.
Henrietta Holsman Fore made the affirmation during her visit to the Hanoi Securities
Trading Center last weekend, the Thoi Bao Kinh Te newspaper reported.
USAID will focus on training and consultancy assistance programs related to the
securities trading market for public companies (UpCoM market) that is scheduled to be
run by HASTC soon.
An estimated 1,000 public firms have registered with the SSC, so it is necessary to build
a dedicated market for these companies, the newspaper said.
Vu Bang, chairman of the SSC, introduced with Ms Henrietta Holsman Fore and other
members about the operation situation of Vietnam's stock market, development strategies
of the market in general and the HASTC in particular.
In 2007, HASTC and USTDA finished the project of technical assistance to develop
HASTC of the U.S. government. Recently, the U.S. Department of Treasury also pledged
to support Vietnam in managing and issuing government bonds, and aid the SSC to
design the secondary market.
The assistances have great significance in tightening the cooperation relation between the
U.S. and Vietnam, state media said. (Vietnam Economic Times Jul 7 p9, Economy &
Urban Area online Jul 7)

464. SSC Agrees with ABBANK Share Sale to Malaysian Bank
The State Securities Commission (SSC) last weekend turned the green light to the An
Binh Commercial Joint Stock Bank (ABBank) to issue 40.6 million shares to its strategic
partner Malayan Banking Berhad (Maybank), state media said.
However, the SSC asked ABBank to make the share issue in line with the approval of the
central bank June 2, and announce information on the stock market prior to the issue.
In May, the State Bank of Vietnam (SBV) gave a license to the lender to sell a maximum
15% stake of its charter capital to one of the top Malaysian lenders Maybank which
valued the stake at $135.2 million.
Maybank has marked its presence in Vietnam with branches in Hanoi and Ho Chi Minh
City.
ABBank is now one of the fastest growing joint-stock commercial banks in Vietnam. Its
assets expanded to over $700 million at end-December 2007 from $42 million in
December 2005. (Vietnam Economic Times online Jul 7, Labor Jul 7)
Jul 7: Vietnam Shares End Down on Profit Taking
Vietnam’s stock market index closed lower Monday on local selling to take profit after
shares gained over last ten consecutive sessions.
“Domestic investors decided to sell after the index almost surged to the resistance level at
450 in the first trading session today,” an official at International Royal Securities said on
Vietnam Television.
“This is a correction session because shares have risen 20% over the past two weeks,” he
said.
“But with strong local interest which is fueled by positive macroeconomic signals, I think
prices will continue to go up this week.”
VN-Index today fell 3.79 points, or 0.86%, at 435.89.
Market volume hit the record high of 24 million shares valued at VND832.6 billion
Monday, far beyond 10 million shares valued at VND325.8 billion last Friday.
STB, the most active stock today, closed down 2.9% at VND23,700 on 3.8 million shares
changing hands.
DPM, the second most active stock, rose 2.3% at VND49,000 on 2.7 million shares, of
which foreign investors bought 1.4 million shares and sold 221,830 shares.

465. SSI rocketed 2.8% at VND36,800 on a trade of 2.1 million shares, including 1.5 million
shares bought and 92,680 shares sold by foreigners.
HPG advanced 2.6% at VND59,000 on 810,080 shares, including 312,790 shares bought
and 7,990 shares sold by foreign players.
PPC lost 2.8% at VND27,700 with foreigners buying 471,190 shares and selling 50,000
shares among total 646,410 shares traded.
In total, 18 stocks ended higher, 125 lower and 10 unchanged.
All four fund certificates closed lower. (HOSE July 4)
Vietnam News
July 4, 2008
Inter-bank Forex Rate: $1=VND16,520
Banking & Finance:
Vietnam’s Base Rate Forecast to Fall Slightly
The State Bank of Vietnam (SBV), the central bank, is expected to lower the base interest
rate in coming months amidst positive signals of inflation, the Laborer newspaper
reported.
The central bank continues to maintain the base rate of 14% per annum in July, the paper
cited Ho Huu Hanh, director of the SBV’s Ho Chi Minh City Branch, as saying.
However, the rate will be likely cut down slightly because inflation is forecast to be
curbed, the official said.
The SBV has raised the base rate three times so far this year with aim to control inflation.
Most recently, the central bank boosted the rate from 12% to 14% in June, when the
consumer price index (CPI) hovered to 26.8% on year.
Haruhiko Kuroda, President of Asian Development Bank, told the SBV Governor
Nguyen Van Giau at the Global Meeting on Emerging Markets Convenience that
Vietnam’s fiscal and monetary tightening measures had been appropriate and the country
could rein inflation.
Prime Minister Nguyen Tan Dung said during the visit to the U.S last week that the
government will strive to cut the inflation single-digit level in 2009. (Laborer Jul 2,
Young People Jul 3)

466. Int'l Credit & Debit Cardholders Feed on Forex Rate Difference
Asia Commercial Bank (ACB) has announced that it would collect a forex rate difference
fee of 6% for each foreign currency transaction, which is applied on both international
credit and debit cards, the VnExpress reported.
The HCM City-based bank previously offered a higher fee of 12%, equaling VND2,000
for each U.S. dollar.
ACB's Deputy General Director Bui Tan Tai said the bank has so far still imposed a fee
of 1%-1.5% on forex rate difference.
Tai attributed the higher fee to the fact that ACB had not had enough U.S. dollar to pay to
international institutions even though the bank had to buy U.S. dollar at VND19,000
each.
“ACB will gradually lower the fee in the coming weeks in order to utilize the usage of
international credit cards,” Tai said.
Similarly, Sacombank is applying a 2.1% fee for forex difference on both kinds of
international credit and payment cards.
VIB Bank collects a lower fee at 1%-1.1% of total trading value. As a measure of
compensating loss, the bank hiked the U.S. dollar lending rate as for credit cards to
1.75% a month instead of the previous 1.35%.
The State Bank of Vietnam has decided to widen the forex trading to plus and minus 2%
and ordered credit institutions to trade foreign currencies in the allowable amplitude in
replacement of two-price scheme previously.
In addition, commercial banks were required not to collect fees on foreign currency
transaction. (VnExpress Jul 2)
Vietnam Disburses $1.1 Bln ODA, Targets $2 Bln This Year-Ministry
Vietnam disbursed $1.1 billion of official development assistance (ODA) in the first half
this year, accounting for 58% of the year’s target, the Ministry of Planning and
Investment is cited by Vietnam News Agency as saying Friday.
The figure included $970 million soft loans and $130 million of non-refundable aids,
which was out of $1.3 billion ODA pledged in agreements with donors, the ministry said.
This year, the Asean country targets $2 billion ODA disbursement to include $250
million grants, the agency said.

467. Vietnam is forecast to have $1.3 billion in ODA pledged by donors by the end of the year
with $152 million grants and soft loans of $1.19 billion. (Vietnam News Agency Jul 3)
Singapore DBS Bank Launches Rep Office in Hanoi
DBS Bank of Singapore officially inaugurated its representative office in Hanoi July 3,
more than two months after receiving operation license from the State Bank of Vietnam,
the Ha Noi Moi newspaper reported.
The office is expected to facilitate relationships between Vietnamese companies and
DBS' vast client network in Singapore and Asia.
It will also help DBS extend business in Indochina, an area which is of great interest to its
customers from Singapore, Hong Kong and others in Asia.
Operating in 16 Asian markets, DBS Bank is one of the largest financial services groups
in the region and holds leading positions in corporate, SME and consumer banking,
treasury & markets, wealth management, securities brokerage, equity and debt fund
raising. (New Hanoi Jul 4 p4)
Prudential Vietnam and VNPost Ink Deal to Sell Insurance via Postal Network
The British life insurer Prudential Vietnam signed an agreement July 3 with the Vietnam
Post Corporation (VNPost) to sell its insurance products via the post office network of
the Vietnamese firm.
VNPost will help Prudential Vietnam collect insurance premium, make payment, provide
a unique package postal service designed for Prudential and provide other products for
the insurer.
The deal will help Prudential Vietnam sell insurance product via VNPost’s more than
3,000 post offices nationwide.
“VNPost is promoting cooperation in providing products and services for customers,
including those in financial, insurance and banking sector, in which Prudential Vietnam is
an important partner,” said VNPost General Director Do Ngoc Binh.
The postal financial services are applied with e-payment technology under banking
standard, he said.
Prudential Vietnam is now leading Vietnam’s life insurance market with a 41% market
share. (Youth Jul 4)
KienLong Bank Abolishes Deposit Rates of 20% Per Annum

468. Kien Long Bank (KienLong Bank) has decided to abolish deposit rate of 20% per annum
that was announced late June, after working with the State Bank of Vietnam (SBV)'s
HCM City branch on July 1.
At present, the HCM City-based bank is applying the highest interest rate of 19% per
year.
Ho Huu Hanh, SBV's HCM City branch's director said that banks with deposit rates of
from 19% and higher will be warned and required to adjust the interest rate benchmark.
The SBV has so far dispatched 14 inspector groups to inspect the deposit rates at banks in
HCM City.
However, up to late July 2, many banks still maintained dong deposit rates at high level
of from 19% such as Gia Dinh Bank (19.5% per year), Dai Duong (Ocean Bank) 19%
and Nam Viet Bank 19% per year.
Meanwhile, many banks have fixed the highest rate level at less than 19% per year like
Eastern Asia Commercial JS Bank (EAB), Asia Commercial JS Bank (ACB), Export
Import Commercial JS Bank (Eximbank), Saigon Thuong Tin JS Commercial Bank
(Sacombank), Oriental Bank, An Binh Bank, Viet A Bank, Western Bank and Vietnam
International Bank. (Pioneer Jul 3)
Trade:
Int’l Experts Discuss Vietnam’s Post-WTO Issues
Leading economists from the World Bank (WB) and the post-WTO Technical
Cooperation Program and agencies are gathering in Hanoi to share experience and
provide expertise on how to tackle issues arising in the post-WTO period in Vietnam,
local media reported July 4.
During the two-day symposium opened July 3, delegates delivered many reports on
various issues Vietnam have to deal with in the post-WTO period such as the non-market
economy, industrial and agricultural policies, institutional reform, financial and
investment services, technical barriers, intellectual property protection, social impact
from WTO admission and communications.
Adam McCarty from Mekong Economics – a leading economic consulting company in
the Greater Mekong Sub-region, said that Vietnam has coped with numerous issues,
particularly anti-dumping lawsuits after officially joining the WTO in January 2007.
The government of Vietnam should be consistent in economic management, particularly
in raising the awareness of businesses, and have lobbying for international economic
activities, he suggested.

469. Luong Van Tu, president of the Vietnam Cocoa and Coffee Association, pointed out the
fact that many countries want to make use of anti-dumping lawsuits with the aim of
safeguarding the domestic market while cornering the global market.
Dr Tran Dinh Thien from the Vietnam Economics Institute complained that Vietnam’s
market economy institutions remain incomplete and inconsistent even though the country
has carried out the Doi Moi (Renewal) process for more than 20 years.
“Vietnam needs to have a genuine market economy without too much relying on anti-
dumping programs,” said Thien.
According to experts, Vietnam’s weak enforcement mechanism for the protection of
intellectual property rights (IPR) has hindered the development of hi-tech industries, an
area in which Vietnam has huge potential.
Law consultant Thomas Treutler proposed that Vietnam should apply strong fines for IPR
violations and establish a specialized intellectual property court.
The symposium was co-held by the Ministry of Industry and Trade (MoIT), the WB, the
Australian Agency for International Development (AusAID) and the UK’s Department
for International Development (DFID).
According to a recent survey on impacts of WTO entry in Vietnam conducted by the
Multilateral Trade Assistance Project Vietnam II (MUTRAP II), Vietnam has reaped
many benefits from its admission to the global trade club over a year earlier.
Up to 84% of firms thought the relationship between the government and private
businesses has been improved since the country entered the WTO.
Administrative and customs procedures have been also improved, said the survey, adding
that over 70% of businesses were happy with improvements in registration and licensing
procedures. They, however, still complained that construction licenses and land lease
procedures were complex and costly.
The positive changes have helped the Asean country obtain a sharp rise in FDI last year
to $23 billion from $10 billion in 2006.
However, the country is facing an increasing trade deficit due to sharp rises in imports,
mainly machinery and equipment and consumer goods.
Additionally, links between local and foreign enterprises were not developing while
support industries continued to struggle. (VNS Jul 4 p3, VOV Jul 3, Youth Jul 4 p3)
Vietnam to Apply Zero Tax on Imports of Rice, Tobacco, Auto Parts from Laos

470. Vietnam will impose preferential import tariff of zero on rice, tobacco leaves and stems
and automobile parts originated from Laos within the tariff quota in 2008, said a recent
decision issued by the Ministry of Industry and Trade (MoIT).
Under the decision, Vietnamese traders are allowed to import rice, tobacco leaves and
stems and automobile parts according to the tariff quotas.
Notably, only traders licensed to import tobacco materials at import tariff within the tariff
quota by the MoIT are allowed to import, said the decision.
Importers of these products must declare certificates of origins granted by Laos
authorities in order to enjoy free import tariff.
The move is expected to further boost bilateral trade ties, said the ministry.
Vietnam and Laos have targeted the two-way trade at $1 billion by 2010 and $2 billion
by 2015, from $240 million in 2006. (New Hanoi Jul 2, The People Online Jul 3)
Vietnam: Steel Ingot Export Duty Likely to Reach 40%
The Ministry of Industry and Trade is planning to propose a 40% tax for steel ingot
exports while the Vietnam Steel Corp. (VNSteel) is suggesting a duty of 30% in a bid to
prevent ingot re-exports, the VietNamNet reported.
Experts said “exporters are still gaining big profits with the current 10% tax rate because
they imported steel ingot with cheap prices earlier.”
At present, steel prices are staying at around VND17 million/ton at the domestic market
while enterprises are re-exporting ingot with prices of $1,100-$1,150/ton. Thus, ingot
export prices are still higher than domestic steel prices.
Currently, China is offering steel ingot at $1,200-$1,300/ton. Meanwhile, Vietnamese
steelmakers are maintaining steel at prices of between VND15.2 million-VND17.5
million/ton (excluding VAT) on the domestic market in an effort to curb inflation.
Moreover, steel sales are now flat at the domestic market. The situation has pushed many
steel enterprises into difficulties so they have to re-export steel ingot to deal with
financial problems. (VietNamNet Jul 4)
Vietnam Garment Makers Ink Export Deals for Q3 at Higher Prices
Many Vietnamese garment companies have signed export contracts for the whole third
quarter of this year at higher prices than last year, the Ministry of Industry and Trade
cited by the VietNamNet.

471. MoIT said that this is a firm foundation for the sector to increase its export value in the
second half of this year.
According to the Vietnam Garment and Textile Group (Vinatex), in the first half this year
garment exports fetched $4.19 billion, up 20% on-year.
However, exports to the U.S. in particular and other countries in general face a number of
challenges due to the high exchange rate between VND and USD.
India has announced that cotton products from China, Thailand and Vietnam are being
dumped on the Indian market. (VietNamNet Jul 3)
Industry:
Premier Oil to Invest $400 Mln in Coming Years in Vietnam-CEO
Premier Oil Plc, a leading British independent oil and gas company, may invest $400
million in the next three years in Vietnam, Phil MacLaurin, Premier Oil’s country
manager said.
“Premier Oil [which firstly invested in Vietnam in Sep of 2004] has invested more than
$70 million in exploring the Nam Con Son Basin the first three years,” Phil MacLaurin
was cited by the Vietnam Economic News, published by the Vietnamese Ministry of
Industry and Trade as saying.
“Premier Oil uses high technology solutions to help pinpoint previously undiscovered
hydrocarbons and ensure most cost efficient technical solutions to maximize the recovery
of hydrocarbons from our oil fields.”
Techniques such as 3D seismic acquisition and processing allow experts to create
accurate models of rocks several kilometers below the seabed and to determine where oil
is trapped and how best to extract it, he noted.
Premier Oil has benefited from close links with local companies and institutes. Joint
ventures between PetroVietnam affiliates and major oil field contractors have serviced
Premier Oil’s drilling operations.
In 2006, the U.K.’s company conducted a drilling program, which discovered two oil
fields called Dua and Chim Sao and then has focused on fast track development of these
fields. It plans to pump first oil from Chim Sao in mid-2010, the paper said.
Premier Oil has been operating an exploration area in the Nam Con Son Basin in the East
Sea (South China Sea), 400 kilometers south of Ho Chi Minh City. (Vietnam Economic
News Jul 1 p21)
Vietnam to Raise Capacity of First Oil Refinery to 10 Mln Tons/year

472. The state-owned oil monopoly PetroVietnam group has sought permission from the
prime minister to cooperate with foreign partners to increase annual capacity of Dung
Quat oil refinery to 10 million tons, the Dau Tu newspaper reported, citing the group's
sources.
Dung Quat oil refinery, the first of its kind in Vietnam, was designed to have a total
capacity of 6.5 million tons, the source said.
The move aims to improve production, trading and operation efficiency of the refinery;
meet increasing domestic demand for petroleum products; and ensure the national energy
security, PetroVietnam said.
It will also take full advantage of available modern infrastructure of the oil refinery in
particular and Dung Quat economic zone in general, the group attributed.
PetroVietnam, however, has not yet specified the expansion schedule for Dung Quat oil
refinery.
The $2.5-billion oil refinery, with expected products of propylene, liquefied petroleum
gas (LPG), lead-free petrol, diesel and fuel oil, is under construction in central Quang
Ngai province, and is estimated refine 33% of the country’s entire demand for petrol and
oil once fully operational in February 2009.
Without major refineries, Vietnam has to import almost all of petroleum products for
domestic consumption. In the first six months, the country spent $5.92 billion importing
6.81 million metric tons of petroleum products, up 68.9% on year and 4.4%, respectively,
said the General Statistics Office (GSO). (Investment Jul 4 p1)
Vietnam Demands Sufficient Capital for Power Projects
Deputy Prime Minster Hoang Trung Hai has recently asked state-owned commercial
banks to ensure sufficient loans for power projects in order to ease Vietnam's current
severe power thirst, state media reported, citing the governmental sources.
Deputy PM Hai requested that banks should immediately negotiate with the state-owned
Electricity of Vietnam Group (EVN) to achieve a new and market-updated interest rate
for previous loans, adding that by this week end, if two sides do not finalize a new
interest rate, the State Bank will put forward a compulsory rate, the Nhan Dan (people)
newspaper reported.
The official urged EVN to continue restructuring its investments and facilitating
increased domestic and foreign involvement in addition to using the loans wisely and
only for effective and important projects.
The country's sole electricity distributor said it needs a total VND832,063 billion (over
$51 billion) to build power projects between 2008 and 2015.

473. Vietnam is predicted to lack between 1,500 MW and 2,500 MW from 7:00 am to 9:00 pm
daily in July this year, said the National Electricity Dispatching Center (Ao).
The country is forecast to lack 8.6 billion kWh of electricity this year. Meanwhile, 32 out
of 37 power projects planned for ground broking this year and to be operational in
2008-