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US Senators Request Fair Decision on Vietnam Shrimp Lawsuit

Eight US Congress members on November 18 sent letters to the Department of Commerce (DoC), urging it to ensure a fair and balanced final decision concerning the shrimp anti-dumping case against Vietnam and five other countries.

"The DoC took a fair approach to the pending final determination of anti-dumping duties on shrimp imports from Vietnam, China, Thailand, India, Ecuador and Brazil," two US Senators and six Representatives said in their letters to Secretary Donald Evans.

The letters also expressed concerns over the DoC's discretionary methodology. "It may unfairly create or inflate dumping margins for most of the foreign shrimp companies under probes," the letters said.

These letters come on top of another batch of letters sent to the DoC recently signed by a total of 18 lawmakers expressing concerns about the anti-dumping petitions and its impact on the US economy.

On July 6 this year, the DoC said in a preliminary ruling that Vietnam sold shrimp to the American market at below-market prices and its exporters must be subjected to import duties, ranging from 12.11% to 93.13%.

The DOC is set to decide final dumping duties for China and Vietnam on November 29 and for Thailand, India, Ecuador, and Brazil by December 17 this year. The US International Trade Committee will then rule whether these countries dump their shrimp into the US market or not by early December. (Liberated Saigon Nov 18 p1, Thanh Nien Online Nov 22)

US Imports More Vietnam's Rubber Latex

The exports of Vietnamese rubber latex products to the US market has increased sharply in recent months of this year, especially the higher natural quality of CV50, CV60, according to Dinh Van Tien, Vietnam General Rubber Corporation (Geruco)'s official.

"The shipment of Vietnamese high quality rubber latex to the US are increasing and we expects to sell around 20,000 tons at the average prices of 1,350-1,400 a ton, $100-150 a ton higher than normal products." Tien said.

The US automobile, plastic and even airplane industries are demanding different types of rubber latex such as CV50, CV60, which Vietnam can produce en mass, for their industries. Geruco entered the US market in 2003 with export volume of around 10,000 tonnes last year.

Geruco, Vietnam's largest rubber latex producer and exporter, has plans to open a representative office in the US to tap the potential market, according to a Geruco official.

Tien, Head of Geruco's Export Import Department also added that China has now become Vietnam's largest rubber product importer, bringing more opportunities for local producers. In the past 10 months of this year, the corporation exported more than 114,550 tonnes of rubber, earning over $139 million.

In related news, Geruco is getting closer to planting 15,000 hectares of rubber trees in Laos as the company still awaits the license to invest abroad from the Ministry of Planning and Investment. Binh said. "If it gets the license before the end of the year, the first 2,000 hectares would be covered with rubber trees next year."

Vietnam has become the world's sixth largest rubber producer and the world's fourth rubber exporters, following Thailand, Indonesia and Malaysia, according to a recent report of the World Rubber Association. Currently, the country's total rubber plantation areas are 450,000 hectares and exploitation and processing output reached 400,000 tons per year, 85% of which are for exports. (Countryside Today Nov 18, VNA Nov 18, Investment Nov 22 p2, VOV Nov 22)

Vietnam Airlines to Buy 14 New Aircraft in 2005-10

The Vietnam national flag carrier, Vietnam Airlines, will purchase ten A321 from Airbus and four Boeing 7E7 from Boeing group between 2005 and 2010, according to the corporation's fleet development plan newly approved by the government.

The plan aims to increase the airline's fleet to 73 in 2010 and enable Vietnam Airlines to achieve annual growth of over 20% in the period. Vietnam Airlines hopes to serve 10 million passengers and 190,000 tonnes of cargo in 2010.

By 2005 the corporation will have a total of 41 planes, from 37 currently (six Boeing 777-200 ER, seven Boeing 767-300s, four Airbus A321 and ten A320, eight ATR 72s and two Fokker 70s).

Besides aircraft models from giants Airbus and Boeing, the government also underlined that Vietnam Airlines could negotiate and study possible purchases of other kinds of aircraft manufactured by Russia and other countries, provided that the economic effects and safety of the models were highly guaranteed.

The national flag carrier, which operates 20 direct international routes and three indirect ones, has forecast to carry roughly five million passengers, including 2.4 million foreigners, and 85,000 tons of cargo, and gain revenues of VND11.2 trillion ($713.4 million) this year. It served four million passengers and 74,000 tons of cargoes last year. (Investment Nov 22 p2, New Hanoi Nov 22 p3, Vietnam Economic Times Nov 22 p3)

Vietnam, Chile Ink Agreement on Fisheries, WTO's Accession

Vietnam and Chile have committed to boost their cooperation on fisheries and have finalized negotiations on Vietnam's bid to join in the World Trade Organization (WTO).

President Tran Duc Luong and his host President Ricardo Lagos Escobar witnessed the signing on Thursday as part of Luong's visit to Chile from November 18-21.

The two leaders also presented the earmarking of a letter of intent in preparation for the signing of a Framework Agreement on Scientific and Technological Cooperation between the Vietnamese Ministry of Science and Technology and the National Committee on Scientific and Technology Research of Chile.

At a business forum between Vietnamese and Chilean businesses held in Santiago on the same day, Luong urged that Vietnamese enterprises should seek more business opportunities to sell its major products of rubber, garment items, rice, coffee and civil electronics to Chile and other South American countries. He asked his businesses to promote the imports of pulp, wine and seafood from the Latin American country.

The export figure between Vietnam and Chile was reported at $26.9 million in 2003 and at $18.49 million between January and August this year. Vietnam exported footwear, garment and textile products, fine arts and handicraft to Chile while importing pulp, wood and fish powder.

Luong participated in the 12th Asia-Pacific Economic Co-operation (APEC) forum in Santiago from November 20-21. (Vietnam Economic Times Nov 22 p1, Labor Nov 20 p1)

Vietnam President Meets Leaders at APEC Summit in Chile

Vietnamese President Tran Duc Luong had talks with other top leaders in an effort to increase bilateral relations with those countries during the 12th Asia-Pacific Economic Co-operation (APEC) summit in Santiago, Chile from November 20-21.

President Vladimir Putin of Russia told Luong, that he attaches importance to multi-faceted cooperation with Vietnam, adding that his country will send the Duma Chairman to visit the Southeast Asian country next year for the 55th anniversary of bilateral diplomatic relations, and will hold a Russia cultural day in Hanoi.

Putin asked for Vietnam's further support for the Vietnam-Russia Oil and Gas Joint Venture Enterprise (Vietsovpetro), which he said is a symbol of the cooperation between the two countries.

The two leaders also affirmed their continued co-ordination in the United Nations and other international organizations and forums, particularly in the fight against the abuse of the human rights, terrorism fight and interference in other countries' internal affairs

In his meeting with Canadian Prime Minister Paul Martin, Luong urged that the Canadian government will continue to give more aid to Vietnam, particularly on hunger and poverty reduction, environment protection and justice reforming, and encouraged Canadian enterprises to invest in the Asian country.

The PM pledged that his country supports Vietnam's efforts to join in the World Trade Organization (WTO).

Luong also met with Chinese President Hu Jintao and Indonesian President Susilo Bambang Yudhoyono.

Also on the sidelines of the APEC summit, President Luong met with representatives of the US business community. They mentioned the role of Vietnam as the host of the coming APEC 2006, the country's economic situation and measures to boost its economic growth, and its bid to join in the WTO. (Youth Nov 22 p16, The People Nov 22 p1)

Foreign Rep Offices Forbidden from Trading Securities

Representative offices of foreign securities trading organizations are not allowed to carry out securities-related business operations in Vietnam, according to a decision issued recently by the country's Ministry of Finance November 18.

Under the decision, those representative offices only function as market researchers to seek and promote opportunities of development co-operation in securities and the securities market with Vietnamese economic organisations.

In addition, the Ministry also prohibits representative office staff from representing or working for other businesses or entrepreneurs operating in securities in Vietnam.
The decision also stipulates that only the Vietnamese State Securities Commission (SSC), the country's stock market regulator, has the power to license, inspect and monitor the operations of those offices.

Vietnam stock exchange now has 25 listed stocks and one fund certificate with total market value as of today at around VND3.8 trillion ($242 million) and nearly 200 governments bonds worth VND24 trillion ($1.5 billion).

SSC has recently given operation licences for two investment fund management companies. (VNA Nov 22, New Hanoi Nov 22 p3)

Prof. Stiglitz Visits Vietnam for Policy Dialogue Initiative

Professor and Nobel laureate Joseph E. Stiglitz and Professor Robin Burgess are currently on a 10-day visit to Vietnam participating on the Initiative for Policy Dialogue (IPD).

During their visit, Mr. Stiglitz, former World Bank vice-president and chief economist, and Dr. Robin Burgess, senior lecturer at the London School of Economics and researcher of the UK National Bureau of Economic Research, will hold meetings with government officials, academics and foreign donors to discuss trade policies to further boost the country's private sector and expand the banking system.

This is Prof Stiglitz' fourth visit to Vietnam. Two previous visits saw him join with other IPD economists in 2001 and 2002, hosted by United Nations Development Program (UNDP). His first visit, in January 2000, was under the auspices of the World Bank.

Prof. Stiglitz's current visit is timed to coincide with the Government's internal discussions leading to the preparation of the new five-year socio-economic development plan for the period 2006-2010.

The IPD visit also coincides with the launch of the Vietnamese-language edition of the economics textbook Covering Globalization, recently published by the Culture and Information Publishing House of Vietnam.

The original version of the book had been published in the US by Columbia University Press. The book, edited by Anya Schiffrin and Amer Bisat - is the first economics textbook aimed at reporters in developing and transition countries that cover finance and economics. Prof Stiglitz wrote a lengthy introduction to the book.

"I have been impressed by Vietnam's rapid economic growth," he said. "I am looking forward to hearing about how the country is working to sustain this growth and about government efforts to use this growth to benefit the poor and people in the rural sector."

"I also hope we can help government and party officials think through Vietnam's trade policy and plans to further develop the private sector and strengthen the banking system," he added.

Jordan Ryan, the UNDP Resident Representative in Vietnam, welcomed the visit of the Nobel Laureate Joseph Stiglitz and his IPD colleagues. "Vietnam faces many development challenges. By bringing world class experts like Prof Stiglitz to Vietnam, UNDP hopes to offer strategic advice and stimulate dialogue around global experiences," Mr Ryan noted.

Prof Stiglitz was awarded the 2001 Nobel Prize in economic science. His book, Globalization and its Discontents has sold nearly one million copies and has been translated into 28 languages. He was a member of the Council of Economic Advisors from 1993 - 1995, during President Clinton administration, and served as CEA chairman from 1995 - 1997. He served as Chief Economist and Senior Vice-President of the World Bank from 1997-2000.

Robin Burgess is a reader in economics at the London School of Economics and a faculty research fellow at the National Bureau of Economic Research. His expertise is in development and he has written extensively on rural banking, labor and trade.

The Initiative for Policy Dialogue is an international network of economists founded by Prof. Stiglitz with the support of the Ford, Rockefeller, MacArthur, and Mott Foundations, and is based at Columbia University in New York. For more information about IPD, please see www.policydialogue.org. (VietNamNet Nov 22, Young People Nov 22 p1)

VNCI Claims Low GCI Won't Impact Competitiveness

Vietnam's dramatic slip of 17 places in the Growth Competitiveness Index (GCI) in 2004 does not mean Vietnam is less competitive, according to the Vietnam Competitive Initiative (VNCI).

David Ray, Economic Expert and Deputy Manager of the project said he was skeptical of the World Economic Forum's (WEF) 2004 report rankings as the method for sample selection that the WEF uses could lead to an erroneously lower GCI.

Vietnam's economy has the highest economic growth in the world, Mr Ray told a workshop on Vietnam's national competitiveness held in Hanoi on November 19, backed by the USAID economic development project.

The World Bank has forecast a 7.2% GDP growth for Vietnam in 2004, ranking 4th among global economies. "Very few countries will experience this rate of growth, and this is not the picture of an economy that is less competitive," Mr Ray said.

Mr Ray also pointed out that Vietnam's encouraging achievements in regulations and institutional reform towards the market economy have not been considered in grading.
The environment for private sector operation has been considerably improved since the 2000 Enterprises Law, reflected by the continuous increase of the registered investment capital of the sector. Bills on bankruptcy and competition have been discussed for the National Assembly's approval, a trend of further improvement in business environment.

However, he emphasized that Vietnam must maintain ongoing reforms. Improving business sentiment, setting up a fair business field for all economic sectors, and strengthening the private sector are the main tasks for Vietnam's economic reform.

During a National Assembly session late last month, Vietnam's Finance Minister Nguyen Sinh Hung also said the WEF report was "not accurate" as it was based on its inspections of only a small number of businesses. He on the contrary affirmed that the competitiveness of Vietnam's economy is improving, although it is not really excellent.

He cited a recent survey conducted by the Vietnam Chamber of Commerce and Industry (VCCI) with 230 enterprises on business climate and competitive capability, which showed that most enterprises maintain a positive outlook over the competitiveness with optimism on business prospects for the next three years. Over 80% of the enterprises said they expected to expand their scope of business, while only less than 20% expressed the opposite.

Economists meanwhile said that government agencies and policy makers in Vietnam should learn lessons from the WEF report because it was independent, objective and prestigious.

In recognition of the decline in the global competitiveness report, Dr. Le Dang Doanh, a member of the think-tank of the Vietnamese government, urged speedier and more thorough reform in all aspects in the country in order to reverse the trend.

"We [Vietnam] are in a race with other countries for development and we are lagging behind," the leading economist said, adding that Vietnam should try its best to make progress in comparison with other nations rather than with its own past, and reform is a must.

In the WEF's 2004 report which polled over 8,700 business leaders in 104 economies worldwide, Vietnam received the worst ratings for the high level of corruption (97), poor public institutions and the low level of technological readiness. (VietNamNet Nov 20, Vietnam Financial Times Nov 22 p3)

Most US Citizens Agree to Compensation for Agent Orange Victims

The majority of Americans have agreed to compensation for both US soldiers in the Vietnam War and Vietnamese residents, who were affected by Agent Orange, according to a poll conducted by Zogby International from November 12 through November 13.

As many as 79% of a total 987 likely voters agreed that manufacturers of Agent Orange should recompense servicemen suffering from the chemical during the war. Only 11% others opposed the idea.

The poll also showed that 51% of the surveyed supported that Agent Orange factories should pay for Vietnamese citizens who were affected by the chemical agent while just 34% said the victims should not be compensated.

However, 64% of the interviewees said that the US government has a moral responsibility to compensate US servicemen and Vietnamese people influenced by Agent Orange compared to just another 18% who disagreed with the proposal.

The poll was commissioned by the Associated Television News (ATN) and the O'Leary Report.

The US army sprayed around 80 million liters of defoliants over many Vietnamese cities and provinces between 1961 and 1971.

To date, three million Vietnamese people have reportedly suffered from health problems as a result of exposure to these toxic chemicals. (People's Army Nov 19 p8, Youth Nov 18 p16)

Vietnam Jails 17 National Security Saboteurs

A Vietnamese court in the Tay Nguyen (Central Highlands) region has sentenced 17 local people to prison on charges of organizing others to illegally flee the country, destroying national unity, undermining security, and inciting public disorder.

The defendants received jail terms ranging from three to 10 years.

These people were accused of having abetted some ethnic minority persons to illegally flee Vietnam to neighboring Cambodia, according to the three trials which were held in the local districts of Dak R'Lap, Dak Mil and Cu Jut on November 16-19.

The court also said they abused the State policy on the freedom of religion to disseminate, distort and oppose the authorities while persuading minorities to take part in demonstrations.

All defendants were reported to express their repentance for their wrong doings during the trial. They besought forgiveness from the local people and tolerance from the State so that they could become productive members of the hamlet and community in time.

However, no information about whether these people come from ethnic minority groups or not, nor the time of their offenses were revealed.

At least 14 other central highlanders were sentenced in prison on the same charges in August and September. The exact number of criminals is not available.

Thousands of hill tribe people in the region have fled Vietnam to Cambodia following massive anti-government protests in February 2001 and in April 2004. More than 1,000 of them were already granted asylum in the United States, according to international sources.

The Vietnamese government has repeatedly blamed Ksor Kok and his "Montagnard Foundation Inc." (MFI) in the US for instigating and masterminding such reactionary activities in the region.

However, historians and sociologists say the root of the instability in the region is a lack of land for native ethnic minorities resulting from government policies to use a large area of fertile forestland for industrial crops and to allow many Kinh majority people to migrate into the region.

Hilltribe people, loosely known as Montagnards, account for a third of the region's 1.4-million population. They come from 35 different ethnic minority groups, including the Ede with 17.1%, Mnong 4.4%, Nung 3.8%, Tay 2.8%, and Gia Rai 2.8% and others 2.4%. Most of these people are now still trapped in poverty and are prone to being deceived by hostile forces to protest against the government and state. (People's Army Nov 21 p8, VoV Nov 22, Vietnam Panorama)

Vietnam, Japan Facilitate Implementation of Bilateral Investment Agreement

Vietnamese Minister of Planning and Investment Vo Hong Phuc and Japanese Ambassador to Vietnam Norio Hatori exchanged diplomatic notes on the implementation of an agreement on investment liberalization, promotion and protection between Vietnam and Japan, on Friday.

The agreement, which will come into effect on December 19, aims to ensure development of the two countries' economic cooperation based on commitments to expanding investment fields for Japanese investors, putting an end to investment limits, and fulfilling investment obligations as agreed upon.

The effectiveness of the agreement is expected to help increase Japan's investment into Vietnam and create new opportunities for the two countries' business communities.

According to the Japanese Ambassador to Vietnam Norio Hattori, many Japanese enterprises have been waiting for the agreement to take effect, in order to carry out their investment plan in Vietnam.

Vietnam and Japan reached the Bilateral Investment Agreement in November 2003 and also signed a joint initiative in December 2003 to protect the two countries' investors and improve Vietnam's business environment.

Japan is now the leading investor in Vietnam. By the end of October this year, Vietnam had attracted 478 Japanese investment projects with a total pledged capital of $5.088 billion, of which, $4.12 billion had been put into operation.

Japan is also one of Vietnam's major trade partners. Vietnam's exports to Japan stood at $2.9 billion in 2003, a 22.5% rise year-on-year, of which seafood earned $575 million, crude oil $284 million and rice $7.2 million. The country's import value rose 20.4% to around $2 billion, mainly from machinery and equipment, plastic materials, automobiles and motorbikes.

Japan has also committed to give Vietnam ODA of $837 million in 2004, compared with total ODA commitments of $2.834 billion for the country in the year. (Investment Nov 22 p5)