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.