ASEAN

VN Aims to Strengthen Relations with ASEAN, VietnamNews, July 20, 2010

Deputy Prime Minister and Foreign Minister Pham Gia Khiem yesterday had separate talks with his Laos counterpart and the foreign ministers from Thailand and Singapore to discuss measures to increase bilateral ties between Viet Nam and these countries. The meetings were held on the sidelines of the 43rd ASEAN Ministerial Meeting (AMM-43) and other ASEAN-related meetings in Ha Noi. During their talks, Khiem and his Lao counterpart Thongloun Sisoulith expressed delight at the special solidarity, traditional friendship and comprehensive co-operation between Viet Nam and Laos, which they said were all increasing.

Once-divided US Embraces Vietnam, AFP, July 19, 2010

Fifteen years after a divisive decision to normalize relations with Vietnam, the United States is finding to its surprise that the onetime foe has quickly emerged as one of its growing partners. Even if the Vietnam War -- which claimed 58,000 US and three million Vietnamese lives -- remains a contentious topic, as does Vietnam's human rights record, the two nations have steadily boosted cooperation on a range of issues. "As I look at all the friends in Southeast Asia, I think we have the greatest prospects in the future with Vietnam," said Kurt Campbell, the US assistant secretary of state for East Asian affairs. Secretary of State Hillary Clinton this week visits Hanoi for a regional meeting as well as talks on building relations with Vietnam. US officials see scope for growing ties in defense, including military exchanges.


U.S. - Vietnam

US House Holds Hearing on Agent Orange in Vietnam, Nhan Dan, July 17, 2010

The US House of Representatives Subcommittee on Asia, the Pacific and the Global Environment held a hearing on Agent Orange (AO) in Vietnam, in Washington on July 15. "It's a good hearing," said Eni Faleomavaega, Chairman of the subcommittee.

In an interview with Vietnam News Agency's reporter in the US, Congressman Faleomavaega added that the testimonies and answers given by Matthew Palmer, Acting Deputy Assistant Secretary of the US Department of State's Bureau of East Asian and Pacific Affairs; and John Wilson, Director of the Office of Technical Support under the US Agency for International Development Bureaus for Asia and the Middle East, helped US congressmen be better educated and better informed about the US-Vietnam co-operation in addressing the problems relating to AO victims in Vietnam, so that US law makers could have enough information to consider more funding for relating programmes.

Obama to Invite SE Asia Leaders for Summit in US: Clinton, AFP, July 23, 2010

President Barack Obama will invite Southeast Asian leaders to a summit in Washington later this year, US Secretary of State Hillary Clinton said Friday. "President Obama plans to invite ASEAN leaders to a second US-ASEAN leaders' meeting in the United States this coming autumn," Clinton said in remarks to the 27-member ASEAN Regional Forum security dialogue. The Washington talks will follow the inaugural meeting that Obama held last year in Singapore with his counterparts from the Association of Southeast Asian Nations (ASEAN).

Customs

Export Value Likely to Jump 16pct in 2010, VietnamNews, July 15, 2010

The Industry and trade ministry estimates the value of exports will jump 15.6 percent to $66 billion this year against 2009. But it warns that the promotion of exports during the next six months will be difficult because of the fragile world economy.

Defense

China-ASEAN Dispute Stalls S.China Sea Projects: Diplomat, AFP, July 19, 2010

Plans for joint development in disputed South China Sea territories have hit a snag over persistent disagreements between China and the ASEAN bloc, a diplomatic source said Monday. China and the Association of Southeast Asian Nations remain in dispute over Beijing's claim to the entire sea area, the source said, and China's approach of dealing with individual ASEAN claimants instead of the grouping as a whole. The plans for joint development by China and the 10-member ASEAN would include marine research and possibly oil and gas exploration, the diplomat said.

U.S. Challenges China on Island Chain, New York Times, July 23, 2010

Opening a new source of potential friction with China, the United States said on Friday that it was ready to step into a tangled dispute between China and its smaller Asian neighbors over a string of strategically sensitive islands in the South China Sea. Secretary of State Hillary Rodham Clinton, speaking in Vietnam at a meeting of the Association of Southeast Asian Nation, or Asean, said, "The United States has a national interest in freedom of navigation, open access to Asia's maritime commons and respect for international law in the South China Sea."

The United States, she said, was prepared to facilitate multilateral negotiations to settle competing territorial claims something sought by Vietnam, which borders the South China Sea and has had deadly clashes with China over some of the islands. In 1974, China seized a group of the islands, the Paracels, from Vietnam, and in 1988 warships from the two nations traded fire in another set, the Spratlys, sinking several Vietnamese boats.

Energy

Russia Eyes SE Asia Nuclear Power Plant Development, Reuters, July 20, 2010

Russia aims to help Southeast Asian countries build nuclear power plants and develop its safe use in the fast-growing region, officials said on Tuesday. Russia's State Atomic Energy Corporation, or ROSATOM, would cooperate with the ASEAN Centre for Energy to organise a seminar in Hanoi in September to introduce officials from the Association of Southeast Asian Nations on the safe use of nuclear power, a draft to the Russia-ASEAN official meeting said. Several countries in the 10-member ASEAN such as Vietnam, Thailand and Indonesia have plans or have decided to move forward to build nuclear power plants to offset electricity shortages.

Energy Takes Centre Stage in Vietnam - Russia Ties, Saigon Times Daily, July 15, 2010

Energy cooperation will be the highlight in the bilateral relations between Vietnam and Russia, said Vietnamese Party general Secretary Nong Duc Manh during meetings with top leaders of Russia during an official visit. Manh, currently in Russia, and the host country's deputy prime minister Alexander Zhukov on Saturday discussed ways for strengthening comprehensive bilateral ties between the two nations. They two sides highly appreciated agreements signed between the two governments in late 2009, particularly those on oil and gas, energy and military technology sectors. They agreed to enhance the coordination role of the Vietnam-Russia Inter-governmental Committee on Economic, Commercial, Scientific and Technological Cooperation as well as accelerate the implementation of the signed pacts.

Huge Potential For Wind Power, Vietnam Business News, July 17, 2010

Vietnam's potential for wind power development far surpasses that of some other Southeast Asian countries, particularly Thailand, Laos and Cambodia A study by the World Bank shows that Vietnam is capable of generating 513,360MW of wind power annually. Figures from the Ministry of Industry and Trade on Vietnam's renewable energy indicate that this source of power will rise by some 5 percent. Vietnam is planning to develop energy sources that can replace fossil fuels in 2015-2025. Wind power and solar power are expected to account for half that amount.

India Interested in Buying BP Assets in Vietnam: Reports, AFP, July 21, 2010

Energy-hungry India is interested in buying BP's assets in Vietnam, an Indian government minister said Wednesday, as the country looks to obtain more energy supplies for its fast-growing economy. "We are trying," Oil Minister Murli Deora told Dow Jones Newswires by telephone from Vietnam. Deora said Indian state-run firms would hold talks with PetroVietnam -- the largest oil producer and second-largest power producer in Vietnam -- about acquiring BP assets, Dow Jones reported. The Press Trust of India reported separately that India is pitching to buy the British energy giant's stake in the 1.3-billion-dollar Nam Con Son gas project in Vietnam, one of the country's biggest foreign investment projects.

Financial Services

INSURANCE- Life Insurance Market Reports High Growth, Vietnam Business News, July 16, 2010

The life insurance market, according to preliminary statistics, continued to have significant growth in the first six months of 2010 with 25 percent increase in revenue from new insurance policies (not including Bao Viet). The optimistic signs of the market have encouraged life insurance businesses to have faster move. Till the end of 2010, they plan to simultaneously launch series of new products, strongly focusing on the segments for retirement insurance, group insurance and health insurance, etc
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Hanoi Targets GDP Growth of 11 to 11.5 pct in the Last Six Months of 2010, Vietnam Business News, July 16, 2010

The Hanoi People's Council, on the afternoon of July 13, has conducted discussions on the implementation of socioeconomic and defense security tasks in the first six months and set targets for the last six months of 2010. According to the report of Hanoi People's Committee, the city has maintained good economic recovery and achieved good growth. In the first six months, the city's GDP is estimated to go up by 10.1 percent, equivalent to 2.5 times, compared to the same period of 2009. Of that, industrial and construction sector rose by 11.5 percent, while service sector, agriculture forestry and fishery products went up by 9.1 percent, 7.3 percent, respectively.

Food & Agriculture

Powdered Milk Being Sold as Fresh Product in Vietnam, Asia One, July 16, 2010

Many of the locally produced "fresh" milk drinks on sale in the country are actually produced from powdered milk - despite producers claims to the contrary, according to the Ministry of Industry and Trade's Competition Control Department. Dairy cows in Viet Nam produce about 30 per cent of the fresh milk on the market, which means most of the rest, more than 60 per cent, is made from powdered milk, the department said. Vu Thi Bach Nga, head of the Department's Consumer Protection Unit, said in Ha Noi last Saturday there was a massive discrepancy between the amount of pure fresh milk produced by domestic cows and the amount sold by businesses as originating in Viet Nam.

Salty Water, Parched Earth: Vietnam's Mekong Paddies Dry Up, AFP, July 17, 2010

The rivers that should nourish his thirsty rice paddies are too salty, and the rains are late this year. Dang Roi does not know if he will be able to salvage anything from this spring's crop. Vietnam is the world's second-biggest rice exporter and the Mekong Delta, where Roi farms, accounts for more than half of its production. But Roi's paddy fields in Ben Tre province are burning up during a drought which meteorologists say is the worst in decades. The dry season should have ended already, but in the yard of Roi's house in Que Dien commune, barrels that collect rainwater for his family's cooking and washing show the desperate situation. They are half-full, or empty. Experts say Vietnam is one of the countries most threatened by climate change, whose effects are seen in worsening drought, floods, typhoons, exaggerated tides, and rising sea levels.

Export Drop Hits Prices for Vietnam Rice Farmers, AFP, July 18, 2010

Over-production and lower exports have left rice farmers in Vietnam's Mekong Delta holding on to their stocks in the face of lower prices, analysts say. Vietnam is the world's second-largest exporter of rice and the Delta accounts for more than half of the country's production. But surpluses, the beginning of the wet season, and a shortage of places for drying wet rice are adding up to heavy potential losses, says Vo Tong Xuan, an internationally-recognised rice expert. He fears Vietnam will lose one million tonnes of the grain this season.

Vietnam - Poultry farming on the rise, Meat Trade News Daily, July 21

In Viet Nam, about 74 per cent of the population lives in rural areas and 65 per cent depend on agriculture for their livelihood. Small-scale household based production accounts for about 70 per cent of the total livestock production in Vietnam. Livestock plays an important role in generating rural income in Vietnam; an estimated 8.3 million households produce poultry and seven million households produce pigs. Increasing incomes have resulted in a higher demand for livestock products. The average annual meat consumption in Vietnam is about 40kg per capita and is projected to increase to 57kg per capita by 2020. Pork accounts for the majority of meat consumed (76 per cent) followed by poultry meat (13 per cent) and red meat (nine per cent).

Health & Life Sciences

Vietnam Publishes Human Rights Magazine, Bloomberg, July 15, 2010

Vietnam, often criticized by Western governments and international groups for its poor human rights record, has published the first issue of a human rights magazine to help counter what it calls "erroneous and hostile allegations," state media reported Thursday. The official Vietnam News Agency quoted Foreign Minister Pham Gia Khiem as praising the country's major achievements over the past 25 years following reforms that push Vietnam to exercise better human rights. "Hostile forces, however, have constantly abused the issues of democracy, human rights, religion and ethnic minorities to slander, distort and interfere in our development," Khiem was quoted as saying.

Partnering with Vietnam in the Fight Against HIV/AIDS, U.S. Department of State, July 22, 2010

On July 22, Secretary of State Hillary Rodham Clinton and Vietnam Minister of Justice Ha Hung Cuong signed the "Partnership Framework between the Government of the Socialist Republic of Vietnam and the Government of the United States for HIV/AIDS Prevention and Control." The Partnership Framework provides a five-year, joint strategic plan for cooperation by the Government of Vietnam, the U.S. Government, and other stakeholders to support a strategic and collaborative response to HIV, while supporting health services for people living with HIV/AIDS. In doing so, it also contributes to the U.S. President's Emergency Plan for AIDS Relief (PEPFAR) global goals for prevention, care, and treatment.

Clinton Presses Vietnam on Human Rights, The Wall Street Journal, July 22, 2010

U.S. Secretary of State Hillary Clinton publicly pressed Vietnam to further open its political system amid concerns about the Communist government's crackdown on democracy activists and the Internet. Mrs. Clinton made her comments Thursday during a two-day visit to Hanoi aimed, in part, to herald the strengthening U.S.-Vietnam relationship 15 years after the two nations normalized ties. The American envoy said growing ties between Washington and Hanoi could serve as a model for reconciliation among former wartime foes. Still, Mrs. Clinton emphasized that Vietnam's emergence as an Asian economic power depends on its willingness to open its political system. The American envoy said that Hanoi, even as Washington's friend, should expect to face pressure from the West on human rights.

ICT

Vietnam Tackles Online Games, News24, July 16, 2010

The Vietnamese government has ordered its ministries and agencies to tackle the harmful effects of online games, state media and officials said on Friday. "Clearly online games have had a bad influence on players," said Tran Ngoc Huong, chief inspector of Ho Chi Minh City's Department of Information and Communication. "They affect players' health, learning and cause social crimes when players don't have money." According to the Vietnamese government's figures, there are 44 local and 35 foreign online game providers in Vietnam. Violent online games account for 77% of the total, gambling games for 9% and 14% involve football, dancing or racing. There has been a public and media outcry recently about the negative influence of online games after several murders by youngsters. In April, a 16-year-old schoolboy allegedly cut his grandfather's throat after he was refused money for online games.

Vietnam Telecom Conference Set for 26 August 2010, IBwire.com, July 17, 2010

As one of the largest and fastest growing telecommunications markets in Asia, Vietnam is the perfect setting for the conference. Low service rates, market deregulation, sustained upgrading of the telecom infrastructure, partial privatisation of government-owned entities, the expansion of 2G coverage, and the development of 3G services all suggest a pattern of continued rapid growth. The Vietnam Telecom Growth Conference aims to provide information, strategies, and skills to help companies increase subscribership, diversify services, retain customers, minimise the impact of the ongoing mobile services price war, and support growth. The theme of the 2010 conference is "Maximising Growth Opportunities in Vietnam." In accordance with this theme, several workshops, panel discussions, and presentations have been designed to help telecom companies make the most of the Vietnamese market.

Intel to Renew PSU Vietnam Scholars Program, Portland Business Journal, July 19. 2010

Intel Corp. plans to extend the Vietnam Scholars Program the company offers in conjunction with Portland State University. Santa Clara, Calif.-based Intel, which employs around 15,000 in Hillsboro, will put another $2.5 million into the program, which provides two-year scholarships to Vietnamese students. The program trains students who could return to work in Intel's largest global assembly and test site, in Ho Chi Minh City.

Infrastructure

Vietnam May Change High-speed Railway Funding to Revive Plan, Manila Bulletin, July 17, 2010

Vietnam Railways Corp., the state- owned train operator, may make changes to the funding plan for a proposed $56 billion high-speed line after the National Assembly rejected the project last month. A revised feasibility study for the Hanoi-Ho Chi Minh City bullet train may also be submitted by early next year, Nguyen Manh Hien, an executive in the rail company's international relations department, said at a conference in Hong Kong Saturday. Vietnam Rail may seek $35 billion of government funds to help to pay for the line, Nguyen said. The rest would be from public-private partnerships and from overseas sources including Japan, the World Bank and the Asian Development Bank, he said. He didn't say which parts of the plan may be changed.

ADB to Help Vietnam Improve Vocational Training, VOVNews, July 18, 2010

The Asian Development Bank (ADB) will provide Vietnam with US$70 million to further improve its workers' skills. In its press release on July 16, the Manila-based financial institution said the loan, from its concessional Asian Development Fund, will go to the Vietnam Skills Enhancement Project, which is designed to offer quality training programmes in priority industries, in partnership with the private sector. The ADB said Vietnam's drive to improve vocational training to address a worsening shortage of skilled workers in key areas of its economy is getting its support.

Vietnam Airlines Selects Pratt & Whitney for Fleet Management Program, PR Newswire, July 19, 2010

Vietnam Airlines has signed a ten-year fleet management program agreement with Pratt & Whitney Global Service Partners covering the airline's fleet of PW4090 engines. Pratt & Whitney is a United Technologies Corp. (NYSE: UTX) company. "We are pleased to select Pratt & Whitney for our fleet management needs for our PW40906 engines," said Pham Ngoc Minh, president and CEO for Vietnam Airlines. "As an established OEM, we are confident that Pratt & Whitney's experience and flexibility will enhance our operations." "This agreement represents our first fleet management program with Vietnam Airlines," said Todd Kallman, president, Pratt & Whitney Commercial Engines & Global Services. "We look forward to providing outstanding service and support to Vietnam Airlines through our Global Service Partners network."

MIT Proposes EVN's Restructuring, Nguoi Lao Dong, July 20, 2010

Vietnam's Ministry of Industry and Trade proposes to the government the restructuring of the power industry and Electricity of Vietnam Group (EVN), following serious power shortages nation-wide. MOIT wants to separate electricity generation from other sections of the industry to allow more competitiveness in power generation. The ministry acknowledges problems such as inaccurate predictions of electricity demands and of the impact of the weather on the ability to supply. Newly built power plants run later than schedule. Also there is lack of transparency in the structure of the electricity industry, with EVN responsible for generating, transferring, distribution, sales and purchase of electricity and managing the system. In response, EVN's Chairman Dao Van Hung says that the main cause for power shortages is the lack of investment. A big group like EVN already has trouble finding funding. A new power generating company, Mr Hung says, will have even more financial problems. EVN, therefore, proposes the establishment of only one power-generating company separated from the group. If the model is successful, EVN will go ahead with separating other electricity generating units.

Other

Foreign Businesses Slow to Start in Vietnam: World Bank, Thanh Nien, July 16, 2010

It takes 12 procedures and 94 days to start a foreign business in Vietnam, slower than the average in the East Asia and Pacific region and the world, said a new report by the World Bank Group. A foreign business needed an average of 68 and 42 days to establish in regional and global countries respectively, said the Investing Across Borders 2010 report, which offers objective data on laws and regulations affecting foreign direct investment that can be compared across 87 countries.

Vietnam, China Hold Great Potential for Cooperation, VOVNews, July 17, 2010

Vietnam and China hold great potential and have many opportunities for further cooperation, Vietnam pledges to create favourable conditions for foreign businesses to invest in the country, said a ministry official. Minister of Industry and Trade Vu Huy Hoang, delivered this message at a dialogue forum in Hanoi on July 16 between the Ministry of Industry and Trade (MoIT), the Ministry of Planning and Investment (MoPI) and Chinese companies which are operating in Vietnam. Hoang spoke highly of the role played by the business communities of both nations in fostering the strong development of economic, trade and investment relations in recent years. The Chinese Ambassador to Vietnam, Sun Guoxiang, said the Government of China places great importance on developing economic and trade ties with its neighbours, especially Vietnam.

END MEMO

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