Vietnam Overseas

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September 29th, 2009

Unreasonable pricing scheme paves way for steel imports to flood market

17:04′ 29/09/2009 (GMT+7)

VietNamNet Bridge – With prices of domestically made steel products overly high, Chinese, Thai and Indonesian steel are likely to take advantage.

While the ingot steel and finished steel products’ prices have been dropping sharply in the world market due to oversupply, domestic prices have been continuously increasing. By the end of September 2009, the steel price has increased by 400,000-500,000 dong per tonne.

Domestically made steel products have been escalating for several months. A tonne of bar steel is now selling at 11.6 million dong, while a tonne of coil steel at 11.3 million dong (not including value added tax VAT). The retail price in HCM City market has reached 12.4 million dong and 12.1 million dong per tonne, respectively, which represents the 300,000 dong per tonne increase in comparison since the beginning of the month.

Meanwhile, the ingot steel price in the world’s market has dropped to $490 per tonne, a sharp decrease of $40-60 per tonne over the last month.

Despite the sharp fall of ingot steel prices in the world’s market, domestic producers still do not intend to slash sale prices.

Experts say steel production cost now in Vietnam is about $600 per tonne, which means that with the sale price of $630-640 per tonne, producers make profits of $30-40 per tonne, or 500,000-700,000 dong per tonne.

Meanwhile, experts, say,100,000 dong per tonne would be considered the ideal profit in steel production.

Analysts say the reason behind the refusal to drop prices is that steel producers only accept price cuts when they have big stocks and they cannot sell products due to low demand. However demand remains high.

Meanwhile, when asked why they do not slash sale prices, steel mills said that they need to maintain high prices in order to cover the losses they incurred in 2008.

In the meantime, however, foreign made steel products are flowing into Vietnam. Steel is being imported in large quantities from Malaysia, Thailand, Indonesia and China. According to the Vietnam Steel Association, the imports are about 40,000-50,000 tonnes a month.

According to Dao Dinh Dong, head of the market division under the Vietnam Steel Corporation (southern office), in general, Chinese steel mills put out 42-43 million tonnes a month. However, the output soared to 50.7 million tonnes in July and 53 million tonnes in August. This has resulted in large stocks in the context of decreasing demand and sharp falls in steel price.

Therefore, Chinese mills have targetted exports to neighbouring countries, including Vietnam, by offering very competitive prices.

Dong is worried that Chinese steel producers’ export may be boosted further by the decision by Vietnam’s government to allow the higher VAT tax fund of 12 percent instead of five percent, possibly to take effect in October 2009. If this happens, China made steel will become even more competitive.

Nguyen Tien Nghi, Deputy Chairman of the Vietnam Steel Association, has warned that if domestic producers do not adjust the sale prices, they will not be able to sell products.

VietNamNet/VnMedia

September 29th, 2009

Vietnam Telecom draft discussed

(29-09-2009)

HA NOI — Draft laws on telecommunications and wireless radio frequencies were discussed at the 24th session of the National Assembly Standing Committee which opened in Ha Noi yesterday.

During the six-day meeting, under the general direction of Chairman Nguyen Phu Trong, deputies will discuss six draft laws up for approval by the National Assembly and Government reports on the implementation of socio-economic tasks.

Other subjects include State budget estimates for 2010 and the adjustment of Ha Noi’s administrative boundary.

During yesterday’s morning session under NA deputy chairman Nguyen Duc Kien, deputies focused on regulations on telecommunications inspections.

Chairman of the NA Office, Tran Dinh Dan, said a regulation that telecommunication service users have the right to sue services providers for poor quality was not feasible.

He said this was because “checking telecommunication quality is a technical issue that normal people could not do”.

Chairman of the NA Law Committee, Nguyen Van Thuan, and head of the NA Committee for People’s Aspirations, Tran The Vuong, said it was essential to provide clear regulations on telecommunications investment priorities, particularly for remote and mountainous areas.

At the afternoon session, deputies discussed a draft Law on the elderly and the law on health examination and treatment.

Most deputies agreed the law should only cover those with Vietnamese nationality and not foreign elderly people living in Viet Nam.

They said this was necessary to conform with Viet Nam’s policies and taking into account the limitations of the budget.

Participants agreed that 60 be set as the minimum age to qualify for both sexes.

Another issue agreed upon was that beneficiaries of social welfare must be elderly poor people not taken care of by relatives. Those aged 80 and above are eligible for monthly social welfare payments, whether or not they had a pension or social insurance. — VNS

September 29th, 2009

Mobile Phone Lottery in Vietnam

VNBusinessNews.com - Pacific Lottery Corporation is pleased to announce that the Government of Vietnam has issued all final approvals required for the introduction of mobile phone purchasing of authorised lottery games, exclusively using the Corporation’s proprietary Mobile Phone Lottery Technology Platform (”MobiLot”).

 

The receipt of the Ministry of Finance’s approval was the last regulatory hurdle and clears the way for the immediate commercial use of the Corporation’s new MobiLot technology by the state run on-line Lottery program in Vietnam.

 

This new mobile phone application developed and solely controlled by the Corporation, will allow the Vietnamese general public direct access to purchasing lottery products from the state run on-line lottery program via the convenience of their individual mobile phones. The approval of mobile phone purchases of lottery products is a Vietnamese first and also heralds a major global shift in the current delivery methods used by national lotteries. No longer will Vietnamese players be limited to purchasing their lottery products only from land based retailers using traditional lottery terminal distribution channels. This exclusive approval for the Corporation is a result of the government’s appreciation and acceptance of PLC’s proven concept in connection with its previously launched retailer based on-line lottery program in October 2008.

 

PLC will immediately begin the implementation and integration process with all Vietnamese state owned mobile phone carriers for this new, exciting and cutting edge service, which is expected to be launched within the next 100 days. Recent estimates suggest that the country has up to 40 million registered mobile phones users and most estimates expect this market to grow to 55 million by next year. This high mobile phone adoption rate supports the Corporation’s expectation that this new mobile phone distribution channel will result in significant expansion of the lottery player’s accessibility to the state run on-line lottery program, thereby exponentially increasing its sales power and accompanying lottery sales performance.

 

This major milestone development within the global lottery industry helps thrust PLC to the forefront of the next generation of technological advances. As mobile phone business applications become more generally accepted and widely used, the Corporation believes this historic application for general public purchasing of lottery products directly via their mobile devices, will reverberate throughout the global lottery industry.

 

PLC has agreed to supply its MobiLot technology to the Vietnamese lottery authority under the same terms and conditions of its existing and exclusive ten (10) year on-line lottery technology supply and services Agreement, which runs until 2018. The Corporation will receive gross compensation of 8 % on all lottery sales processed through this new mobile phone application. The current Agreement also covers all necessary operational details required for the seamless integration and installation of PLC’s MobiLot technology within its existing proprietary Optimal Lottery Integration System (”OLIS”), which exclusively powers the Vietnamese On-line lottery program. Furthermore, the Corporation has all necessary resources required to complete the full integration process of this landmark event in the Corporation’s development.

 

Vietnam is a country of approximately 90 million people with a fast growing adoption rate for new mobile phone technologies. The national lottery market in Vietnam has annual revenues of over 1.3 Billion US-Dollars. The unauthorised So De market has been estimated to have a turnover of approximately 3.5 Billion US-Dollars, thereby establishing the total turnover potential of the Vietnamese lottery market at almost 5.0 Billion US-Dollars annually. Recently, the Corporation was advised by one of the leading Vietnamese mobile phone carriers that its largest value added service, worth approximately 200,000 US-Dollars per day in revenues, is generated by customers paying a small service fee for the automatic downloading to their mobile devices of the daily results of the Hanoi Lottery draw.

 

With the foregoing in mind and in conjunction with the daily live, prime time broadcasting of the lottery draws on Hanoi TV, one of the top rated TV stations watched nationally, throughout Vietnam, both the Corporation and the Government lottery authorities expect the use of direct mobile phone lottery purchasing to significantly increase the online lottery’s market share by providing Vietnamese lottery players with greater ease of access and convenience for their everyday lottery purchases.

September 28th, 2009

Vietnam: Rise of the New Fast Food Nation


Published on Monday, February 27, 2006 by the Independent / UK


As Vietnam enjoys unprecedented economic growth, its people have discovered a taste for high-calorie, high-fat, Westernised food - and are beginning to suffer the consequences.

by Jeremy Laurance

  

Outside the Rex hotel in the centre of Saigon - the name by which most residents still refer to Ho Chi Minh City - the evening rush hour is a scene of motorised pandemonium. Tens of thousands of scooters sweep along the six-lane highways, blithely ignoring the rules of the road, like herds of migrating wildebeest across the Serengeti plains.

As darkness falls, clusters of tiny plastic tables and stools spread across the pavements - improvised street-side restaurants to feed the armies of office workers. The acrid smell of pigs’ trotters seared over charcoal braziers beside pans of meat bubbling on spirit burners fills the humid night air.

The transformation of this war-ravaged rural economy into a booming industrial power is happening at astonishing speed. Ten years ago, the bicycle was the dominant mode of transport. Now it is the motor scooter. Back then crisps, cola and ice-cream were novelties and fast-food restaurants featured only in Western magazines. Now they are part of the everyday scene. Vietnam, like its neighbour China to the north, is experiencing double-digit economic growth. Cranes festoon the skyline, factories complain of a shortage of labour - 20,000 extra workers are needed in the south of the country - and people are being drawn in growing numbers from the country to the towns.

But progress has a price. Across the Far East, growing urbanisation, rapid industrialisation and increasing obesity associated with decreased physical activity is fuelling an epidemic that has killed as many as AIDS but has received a fraction of the attention.

The disease is diabetes, and its incidence is accelerating around the world. From 170 million affected in 2000, doctors predict the total will rise to 370 million by 2025, leading to an epidemic of amputations and blindness, the two commonest effects of the condition. Developing nations will be hardest hit; they bear 90 per cent of the burden but have only 10 per cent of the resources to deal with it.

Professor Pierre Lefebvre, president of the World Diabetes Foundation (WDF), told an international conference in Hanoi last week that there was a worldwide explosion in the disease.

“If we do not change this we face a catastrophe. It is called the tsunami disease. We know it is coming and it will come if we do not do something to prevent it.” On the streets of Hanoi and Ho Chi Minh City, fast-food chains such as Kentucky Fried Chicken are starting to appear, alongside the snack bars, cake shops and mobile food carts catering for the worker on the move.

Traditional dishes that have sustained people over generations are disappearing, to be replaced by Western-style cooking that uses more fat, salt, sugar, oil and meat. Ordinary restaurants now offer a special version of the standard Pho Ga - chicken noodle soup - aimed at more affluent office workers that contains 22 per cent more calories than the basic dish.

The casualties of the trend can be seen in hospitals around the country. Squatting on an iron bedstead covered with a thin straw mat, Le Quang Can, aged 58, is unaware of the threat the disease poses to his life.

He arrived at the endocrinology clinic in Thanh Hoa province in northern Vietnam, 90 miles south of Hanoi, at 7 am for a routine test. He has unexpectedly been kept in for observation because his blood sugar level is sky high, and he could slip into a coma at any moment.

A retired soldier with six children, Mr Can waits for the insulin with which he has been injected to bring his blood glucose level down. He wears a woolly hat and blue pyjamas against the cold - it is winter in north Vietnam and a chill wind is blowing down from China. He and his wife work in the rice fields and the doctor will later warn him that unless he controls his diet he could end up a blind amputee, dependent on his family. Outside, scores of patients wait patiently on the steps under the corrugated iron roof for the results of tests carried out in the morning. The clinic, funded by the WDF, sees 130 diabetes patients a day in this provincial town, one of the poorest in Vietnam, and the scale of the need it has uncovered has persuaded the government to set up similar clinics across the country.

Diabetes is a chronic disease which first disables its victims and then slowly kills them. An estimated global total of 2.9 million deaths, equivalent to the number killed by AIDS, were attributable to the disease in 2000, according to a study in Diabetes Care published in May 2005.

The most striking thing about the patients at the Thanh Hoa clinic is how few of them are fat. In the West, obesity is the chief driver of the epidemic - the Royal College of Paediatrics and Child Health has just released a new report showing that soaring levels of obesity among children in the UK are sparking a crisis of diabetes in under-16s. But Mr Can is lean and spry as are most of the other patients. Doctors do not know why Asians are more prone to the disease. One theory is that because of their slighter build, compared with Westerners, they have less muscle bulk and more fat, so do not need to gain much weight to put themselves at risk. Malnourishment in infancy or in the womb, which is known to increase the risk of diabetes, may also play a part. Seven out of 10 of the worst affected nations by the disease are in Asia. India already has a total of 31 million cases, the highest in the world, closely followed by China with 20 million. The Far East is expected to see the fastest growth by 2025, with a near doubling in the current total of 81 million cases to 156 million.

Becoming blind or losing a limb is a huge problem anywhere but in the developing world it is a disaster. In India, 45,000 amputations are carried out a year because of diabetes, all of them unnecessary with the correct care, according to Anil Kapur, vice-president of the WDF.

“We are faced with a diabetes pandemic,” Dr Kapur said. But the world only recognised infectious diseases as a threat. Of the $2.9bn (£2bn) given in overseas aid for health in 2002, just 0.1 per cent was allocated to chronic diseases including diabetes, he said.

The road to Thanh Hoa from Hanoi passes small village stores selling crisps, ice-cream and soft drinks, which are often cheaper than water. It is thronged with scooters but is free of the children - who once walked beside it to school - they now travel by bus. The disappearance of traditional diets and lifestyles and their replacement with junk foods and motor transport are believed to be behind the growth in the disease.

“As the economy grows, lifestyle and eating patterns change,” Dr Kapur said.

The public health message was to eat less and exercise more but this was hard to get across to people raised in the shadow of hunger, he added. Mothers are being urged to feed up their infants but then to curb the appetites of their adolescent children. Social custom, Dr Kapur explained, dictated that when food was available it should not be restricted. “Often in our society being overweight is seen as a sign of prosperity and good health. If you are well off you must have a paunch,” said Dr Kapur. Only half of people with diabetes are diagnosed, the remainder living in ignorance of their condition often until it is too late and they suffer irreversible side effects. Yet even those who find their way into care are poorly managed.

Three studies of diabetes care in Asia, covering 45,000 patients, found one- third had kidney damage, while a similar proportion had damage to the nerves in their feet and a smaller number were developing eye damage. Only one patient in five was properly controlled.

“Care is inadequate, complications are common. There is an increased economic burden on society, on the family and on the individual. Those who believe treating diabetes is expensive should change their opinion. Not treating it is very expensive,” Dr Kapur said.

The food companies exacerbate the problem with sales techniques such as mini-sizing, according to Gauden Galea, regional adviser for the World Health Organisation. Mini-sizing - selling soft drinks and fast foods in miniature portions - is a growing practice in the region. While the food companies argue they are offering customers a low cost option, Dr Galea claims it is a cynical way of boosting their business.

“They are sowing a taste for fast food by inveigling their way into people’s eating habits. As people become more affluent they move from mini size to super size.” But Dr Galea says the global trend towards increasing weight, which is fuelling the pandemic of diabetes, can be halted. Successful public health projects were carried out in Da Qing, China, a decade ago based on intensive education on diet and exercise, which led to a 47 per cent reduction in the incidence of diabetes over six years. Similar projects in the United States, Finland and India achieved comparable results.

“These projects demonstrate very conclusively that you can delay or prevent diabetes with only minor reductions in weight,” Dr Galea said. The challenge, he added, was to ensure that the care given to Mr Can could be delivered across the Far East.