Local press highlight 10th February 2009

1 - Japanese special ambassador hopeful of resuming ODA by April

Prime Minister Nguyen Tan Dung and Vietnam-Japan’s Special Ambassador Sugi Ryotaro met in Hanoi on Feb. 9 to discuss the resumption of Japan’s provision of ODA to Vietnam, which could be reinstated as early as April.

The Prime Minister  welcomed the Japanese messenger and pledged that his government would do its utmost to transform its relationship with Japan into a strategic partnership, in the interests of both nations.

Referring to the PCI scandal that led to Japan deciding to suspend its provision of official development assistance to Vietnam, Dung reiterated his government’s firm stance in the ongoing battle against corruption and expressed regret over Japan’s unilateral decision to halt its flow of ODA into Vietnam at a recent donor’s meeting.

He made it clear that following the discovery of the scandal, the Vietnamese Government immediately asked the Japanese side to provide relevant information and documentation and cooperate in investigating the case. Vietnamese investigative agencies have started legal proceedings against the suspects, while the Supreme People’s Procuracy has sent a dispatch to the Japanese Prosecution Institute to provide evidence in order to bring the case to justice in line with the law.

Until now, Vietnam had not received a reply from the Japanese judiciary, despite the fact that the Vietnamese side had met all of the requirements of their Japanese counterparts. Japan’s ODA decision sparked negative public opinion and affected bilateral relations, which are now faring well.

He concluded by stressing that Vietnam had previously used Japan’s ODA in an effective manner and expressing his hopes for Japan’s early resumption of providing ODA to Vietnam.

The Japanese ambassador expressed his personal regret over Japan’s suspension of ODA. He said that the Japanese Government was hoping to resume the aid in April and pledged to do his best to contribute to the resumption.

Sugi Ryotaro also announced the details of a campaign to provide 50 fire engines to Vietnam, offer Japanese jobs to Vietnamese nurses and promote cultural and cinematographic cooperation among business circles in the two countries./.

(Website Vietnam Plus/ VNA)

2 - Vietnam to slash tour prices till September-end

The Vietnam National Administration of Tourism (VNAT) is to carry out a national tourism promotion campaign until the end of September in order to encourage domestic tourism and attract more foreign tourists to the country.

Under the programme, VNAT will ask travel agencies and hotels to commit to reducing their prices by up to 50 percent and call upon local airlines to participate in this campaign. In addition, VNAT will conduct a broader campaign to promote Vietnam via the Internet and other mass media, as well as hosting tourism events and festivals to encourage domestic tourism.

The administration is also to launch a new range of tourism products and intensify tourism promotion activities.

 VNAT has to date created 99 discounted package tours for tourists from countries including Japan , ASEAN, France , Western Europe , China , Australia and New Zealand . It also plans to launch an additional 60 competitively-priced domestic tours.

On January 21, the Prime Minister signed a decision regarding a 50 percent-VAT reduction for travel, transport and hotel businesses. VNAT also proposed a 30-percent cut in corporate income tax rates for businesses involved in the tourism sector./.

(Website VietnamPlus/VNA)

3 - PetroVietnam eyes Singapore listing

On February 8, 2009, PetroVietnam Finance Co announced that the company will list shares on the Singapore Stock Exchange once it takes its listing overseas sometime this year.

 According to the company’s general director, the company has finalised its review of this stock market and has concluded that Singapore is a good destination.

PetroVietnam Finance Co has targeted making the offshore listing before the end of this year. Although it will take a long time to finalise every step of this plan, PetroVietnam Finance Co is attempting to carry it out as soon as possible. The listing will also depend on what’s happening on both domestic and overseas markets.

The financial offshoot of PetroVietnam Group has also announced its targets for 2009, including revenues of 5 trillion VND (287 million USD) and a profit of 1 trillion VND   (57.5 million USD). In 2008, PetroVietnam Finance earned 4.47 trillion VND         (255.4 million USDS) but made a profit of only 8.5 billion VND (485,000 USD).

Explaining the low level of profitability, the general director said that in the context of market turmoil, the company set up a provisionary fund worth 2.14 trillion VND from the revenues it generated last year, aiming to reduce our risks from financial investments.

(website VietnamPlus/VNA)