Bài 58: Tourist turns to sustainable tourism When Frédéric Tiberghien Frédo first visited Vietnam 20 years ago as a tourist, he wanted to see more of the country He was already linked to the country, being born to a French father and Vietnamese mother, but he lost both of them in an accident in France when he was young, and was raised by his maternal grandmother, according to a 2011 report in the Kien Thuc (Knowledge) online newspaper He worked as a carpenter and a horse keeper in France and England before deciding to visit his mother's native country In his fifties now, he is no longer a tourist Vietnam has become home And, he is known as Frédo Binh Frédo's transformation from a curious tourist to a charmed one and to a tour operator himself has been accompanied by a motivation to preserve the country's beauty, the culture of its ethnic minority residents and improve the living standards of communities in a sustainable manner Over the years he has initiated community projects in many localities in the northern highlands In Cao Bang Province, he established a small museum introducing local culture to foreign tourists In Lao Cai Province, he built a bridge that made it easier and safer for children to attend school In Yen Bai Province, he founded a nursery school and a community "culture house."He has also helped improve sanitary facilities like toilets and septic tanks at various localities His most impressive achievement, however, is probably the ecotourism project he began in 2006 in Yen Bai Province's Ngoi Tu Village, which is home to Dao ethnic families Because of the project, locals are able to augment their incomes from farming by participating in the tourism industry They have also developed a better awareness of environment protection ===>>>>>1 Many villagers have become professional tour guides able to speak foreign languages "It is slow but lastingly effective to promote Vietnam's image through sustainable tourism," Frédo told the An ninh thu (Capital security) newspaper "Green tourism is not only about sustaining the environment where it happens, but also about how local culture is conveyed to visitors,"he said When he first arrived in Vietnam and visited Hanoi's famous Old Quarter, he felt the "depth of the culture of the peaceful country." In 1994, he took adventurous trips to the northern highlands on a Minsk a motorbike produced in Belarus During those trips, he was not only charmed by the beautiful landscape but also the culture of ethnic minority people he met "Then I suddenly thought about doing tourism to earn a living," he said Frédo said he printed ads about his motorcycle tours and posted them at places frequented by foreign tourists in Hanoi "Unexpectedly,"it was "effective,"as he received many phone calls and bookings, he said In 1997, he founded a travel company called Compagine Bourlingue, which was also known as Freewheeling Tours in English He asked the ethnic minority residents to join him in offering homestay experiences for foreign tourists in their villages ===>>>>>2 Years later, he came upon Ngoi Tu Village on the banks of the Thac Ba Lake in Vu Linh Commune He was totally captivated by the scenery and the way local people preserved their traditions and customs So, he bought a stilt house there and developed it into an ecolodge that can accommodate 60 people Once again, he invited local people to join him in the eco-tourism project He taught them French and English He also sent them to Hanoi, where they were trained in being tour guides as well as other aspects of the hospitality industry He also worked to raise their awareness about protecting environment and their culture, and earning a living in sustainable ways Speaking about his project, Luong Xuan Hoi, secretary of Vu Linh Commune's Party Unit, said local people's life has changed a lot since they began participating in tourism Previously, it was not easy for them to earn more than VND2 million ($94.65) a month, as they only did farm work, but now, that has changed The way Frédo has done tourism, moreover, has contributed to the preservation of local culture, the official said Frédo himself has changed a lot over the years He can speak both Vietnamese and the Dao people's language fluently Although he is based in Hanoi, he visits and stays in the ===>>>>>3 village often, and has learnt a lot about the Dao culture, from the meaning of pillars in their traditional houses to the practice of burning incense and offering chicken to the spirits before building houses He loves in particular the festival that Dao people celebrate at the beginning of the spring to mark the start of a new rice season "It is a beautiful aspect of culture,"he said "People thank the plants, heaven and the earth for giving them a good life and harvest." He regularly takes his 10-year-old son to Ngoi Tu, where the boy plays with local children And, like his father, he has learnt to speak Vietnamese and the Dao language very well Frédo is divorced and has two children ===>>>>>4 Trang 59 : Lack of government support blamed as more firms shut The number of companies shutting up shop rose last year while fewer new ones were incorporated, reflecting the poor business environment and the government's failure to support business According to a recent report by the Vietnam Chamber of Commerce and Industry (VCCI), the number of businesses that shut down or suspended operations increased by 6.29 percent last year to over 54,200 Most of them were in the finance, banking, and real estate The number of newly established firms declined by 9.9 percent to 69,900 Their total registered capital was estimated at VND467.3 trillion (US$22.3 billion), also down 9.9 percent from 2011 Vietnam now has just 300,000 firms, compared to nearly 700,000 during the past decade Most of firms operating in Vietnam now are mainly microenterprises, which have less than 10 employees, and small ones with 10-50 workers In 2011 some 39 percent of medium-sized companies reduced their staff size and became small firms while percent of small firms became microenterprises The average number of staff in a Vietnamese firm decreased to 34 in 2011 from 74 in 2002 Pham Thi Thu Hang, general secretary of the VCCI, said Vietnam lacks medium-sized and large enterprises that take part in the global supply chains Only 2.1 percent of firms are medium-sized, the report said Ineffective measures ===>>>>>5 The VCCI blamed the situation on the poor business environment and the government's ineffective support measures, which benefit only large firms According to the Doing Business 2013 report by the World Bank, Vietnam ranks 99th out of 185 economies for ease of doing business The VCCI said the country's business environment has not improved much over the past decade and remains below average Administrative procedures, despite being reformed for many years, still remain tortuous, hindering businesses, Vu Quoc Tuan, chairman of the Vietnam Handicraft Village Association, said The government has proposed amendments to the tax law to cut corporate income tax and also reduced interest rates to help businesses But companies said the measures have not really worked since their biggest difficulty now is to liquidate inventories, not high tax or interest rates Some 73 percent of firms polled by the VCCI said large inventories were their biggest concern The Ministry of Finance last week announced plans to cut corporate income tax to 22 percent on January next year from the current 25 percent It plans to bring it down further to 20 percent in 2016-20 However, the 22 percent rate would apply earlier to small and medium-sized enterprises from July as they are most vulnerable in the depressed economy, Deputy Minister of Finance Vu Thi Mai said ===>>>>>6 The ministry has also announced a 30-50 percent cut in value added tax for developers of affordable housing from July Mai said they play an important role in helping low-income buyers and bringing greater liquidity to the property market Nguyen Nhan Phuong, chairman of the Association of Small and Medium-Sized Enterprises of Bac Ninh Province, said the tax reduction would not benefit small and medium-sized firms that are already in deep trouble It benefits only firms with sound operation that are making profits, he said "Most of the weak companies, which should have received support from the government, will not benefit because they have no profits to pay taxes,"he explained Small and medium-sized firms now find it hard to sell their products, and the government should help them study and update them on foreign markets, he said Many companies, whose products can be competitive in foreign markets, have not been able to enter them, he added Meanwhile, the State Bank of Vietnam has cut lowered the maximum deposit rate to 7.5 percent from percent, the first cut this year following six in 2012, raising expectations of cuts in lending rates But economist Le Tham Duong said interest rate cuts no longer excite expectations for the economy "Why will firms borrow when demand is weak and inventories remain high?"he asked Tran Thi Hong, director of electrical home appliances maker Phuong Hong, said interest rates, despite being cut, remain too high especially for small firms Her company's bank loans carry over 12 percent interest, but all are short-term, since she does not dare make long-term credit ===>>>>>7 decisions now "We will borrow only when the rates go below percent,"she said The VCCI suggested that the government should support firms by minimizing the import of unnecessary products, thus boosting demand for domestic products ===>>>>>8 Trang 60 : Chinese imports monopolize major vegetable market Cho Lon in Ho Chi Minh City, famous as Vietnam's Chinatown, a repository of Chinese culture, has a rival The Hoa Dinh Market, around 30 kilometers from Hanoi, could well be hailed as another Chinatown The market in Bac Ninh Province is one of the biggest agricultural produce suppliers in the country, and most of its products come from across the border It used to trade in local products which were famous nationwide, but many farmers since the late 1990s have left their fields and switched to trading Chinese produce which are several times cheaper than local ones and thus earns them bigger profits A major problem with this is the lack of official supervision of the whole process The imports are not taxed or checked for safety The market trades between 200 and 400 tons of all kinds of vegetables every day, providing stock for distributors and vendors to sell to consumers in smaller markets in Hanoi and other provinces, as also down south in Ho Chi Minh City "A hundred percent Chinese You won't find a Vietnamese thing," said a trader named The The owns a warehouse of around 300 square meters that stores 60-70 tons of garlic and onions in packages labeled with no other language but Chinese, and it is among many such warehouses in the bustling market He told undercover Thanh Nien reporter to feel safe taking stock from his store, as "the Chinese have special preservation methods and their produce can be stored for a long time without getting rotten." The produce is transported from Tan Thanh border gate in Lang Son Province, around 100 kilometers away, after it is imported from Hunan, Sidong, Jiangxi and Jiangsu provinces in China ===>>>>>9 An area more than 60,000 square meters (around 15 acres) near the border, three times larger than Hanoi's major wholesale market Long Bien, is used to gather the imported produce before they are picked up by trucks Customs figures compiled over the first five months this year show that Chinese carrots and potatoes are priced between VND3,500-3,700 (around US16 cents), between two to three times cheaper than prices in Hanoi markets Chinese raw produce imports to Vietnam are exempt from tariffs and trade in fresh vegetables is free of value-added tax Nam, a dealer at the border who owns trucks that deliver the Chinese produce to Bac Ninh, said suppliers like The would resell them at prices many times higher "They can pocket VND140-150 million ($6,640-7,110) a trip (of around 30 tons) "That is not to mention times when prices of Chinese produce drop even lower, and traders with large pockets would store a lot of these, waiting for prices to go up and make even bigger profits." Vendors buying from The would accept the prices as they can mix the products with local ones and tell buyers that they are Vietnamese produce so that they can charge higher prices Some vendors not even bother to mix them, and just sell Chinese imports as locally produced fruits and vegetables They said the Chinese imports are not only cheaper, but also look better because they are big, plump and smooth, though they not smell as good as locally grown produce Nam said dealers like him also have their own way to increase profit by overloading their trucks, usually up to three times its designed capacity A 10-ton truck would carry 30-35 tons "The more we can carry, the more money we make." ===>>>>>10 Trang 106 : Samsung shifts plants from China to Vietnam to protect margins Samsung Electronics Co built the world's largest smartphone business by tapping China's cheap and abundant workforce Not for much longer: it's shifting output to Vietnam to secure even lower wages and defend profit margins as growth in sales of highend handsets slows By the time a new $2 billion plant reaches full production in 2015, China's communist neighbor will be making more than 40 percent of the phones that generate the majority of Samsung's operating profit The Suwon, South Korea-based company's second handset factory in Vietnam is due to begin operations in February, according to a Nov 22 statement on the local government's website Samsung surged past Apple Inc to the top of the mobile-phone industry by offering cutting-edge devices for more than $900 to basic models costing less than $150 With demand sagging in the most-profitable top end and Chinese rivals driving prices lower, Samsung is joining technology companies such as Nokia Oyj and Intel Corp to be drawn to Vietnamese wages that are about a third those in China "The trend of companies shifting to Vietnam from China will likely accelerate for at least two to three years, largely because of China's higher labor costs," said Lee Jung Soon, who leads a business-incubation team of the Korea Trade-Investment Promotion Agency in Ho Chi Minh City "Vietnam is really aggressive in fostering industries now." It seems to be working The government has approved $13.8 billion of new foreign projects this year through Nov 20, a 73 percent increase on a year earlier, according to the General Statistics Office in Hanoi South Korea led with $3.66 billion China's $8.4 trillion economy, 59 times the size of Vietnam's, received $97 billion of foreign direct investment although this was actually utilized in the first 10 months, percent up on a year earlier ===>>>>>182 Intel, the world's largest chipmaker, opened a $1 billion assembly and testing plant in Ho Chi Minh City in 2010 Nokia said its facility near Hanoi producing Asha smartphones and feature handsets became fully operational in the third quarter LG Electronics Inc (066570), Samsung's smaller South Korean rival, is building a new 400,000 square meter complex to make TVs and appliances as part of a $1.5 billion investment plan Young workers "The country is politically stable and has a young, increasingly well-educated workforce," LG said in an e-mailed statement "Like Korea, Vietnam understands what it takes to rebuild an economy after a devastating war." Samsung's new plant is expected to make 120 million handsets a year by 2015, said two people familiar with the company's plans, who asked not to be identified because the matter is private That would double the current output from the country and compares with the 400 million global total Samsung shipped last year In an e-mailed response to questions, the company declined to comment With about one-third of the global smartphone market, Samsung may eventually produce as many as 80 percent of its handsets in Vietnam, said Lee Seung Woo, an analyst at IBK Securities Co in Seoul who has been tracking the company for more than a decade "The handset business is all about assembling well-sourced components,"Lee said "The most important thing is manpower." Record growth After setting up in China in 1992, Samsung now has 13 manufacturing sites and seven research laboratories there, according to its June sustainability report The 45,660 employees in China make up more than 19 percent of Samsung Electronics' global workforce, the largest source of labor outside South Korea, it said Record economic growth that made China the second-biggest economy has fueled wage inflation, pricing many workers out of low-end jobs The base monthly salary for a factory worker in ===>>>>>183 Beijing was $466, compared with $145 in Hanoi, according to a 2012 survey of pay by the Japan External Trade Organization While this growth has created an emerging class of potential Chinese buyers of Samsung products, consumers wants more for less Features once reserved for top-end devices, such as highdefinition screens and faster processors, are being added to cheaper handsets China last year surged past the U.S as the biggest smartphone market, and sales there will reach 350 million units this year -more than double U.S demand, according to estimates by industry analysis firm IDC In China, though, three-quarters of devices sold for less than $250, compared with a fifth in America, IDC said Sales double Globally, smartphone sales will more than double to 1.7 billion units by 2017 at the same time average prices will drop to $265 from $337, IDC said in a Nov 26 report "The rule of the game is now changing to how much market share you can win over rivals,"said Hong Sung Ho, an analyst at LIG Investment & Securities Co in Seoul "Many companies are now scratching their heads to figure out how to cut manufacturing costs." Samsung's complex in the Yen Binh Industrial Zone of Thai Nguyen province, north of Hanoi, will pay no tax for the first four years, and half the full rate the following 12 years, the local government's website shows A $1.2 billion Samsung Electro-Mechanics Co (009150) factory announced making camera modules and circuit boards, along with other Samsung plants, will get half their infrastructure rent subsidized Under a so-called strategic partnership, Samsung said it will also help Vietnam build social infrastructure, and nurture key industries such as petrochemicals and shipbuilding, according to the South Korean conglomerate Close to home ===>>>>>184 Shares of Samsung have fallen 7.4 percent this year, compared with a 1.5 percent drop in the benchmark Kospi index, and the stock is headed for its first annual decline since 2008 While tax breaks and cheap workers are lures that other countries such as India and Indonesiacould offer, Vietnam's location closer to existing Samsung production bases in China and South Korea is an extra incentive, according to Than Trong Phuc, managing director of technology-focused investment fund DFJ VinaCapital LP in Ho Chi Minh City "Other countries can match or even beat the incentives that Vietnam is offering, but Vietnam is very close to Samsung's supply chain,"said Phuc "You see Korean companies everywhere you look in Vietnam, right and left." ===>>>>>185 Trang 107 : Vietnam executive search market has grown at snail's pace: headhunter In Vietnam it is very difficult for firms to find candidates for CEO jobs because of the shortage of managerial experience Many have to hire expats even if they prefer Vietnamese, who would have a better understanding of the country's culture, business environment, and legal system, managing director of recruitment firm Navigos Search Nguyen Thi Van Anh tells Vietweek Vietweek: How you assess the executive recruitment market? Nguyen Thi Van Anh: The economic slowdown has affected demand for mid-level and senior staff, which include those in the position of deputy director upwards, and experienced engineers Amid the high production costs, high inventories of goods, and lower demand, firms cannot expand their business They have to find ways to cut costs, including on personnel The pressure to cut costs is higher in some fields with high personnel costs like services A wave of personnel cuts has occurred since 2011 But the middle- and senior-level markets have not seen a mass reduction because there are only a few positions for mid-level and senior employees in each company, and it is very difficult for companies to find talent Some other firms even take advantage of the current dull recruitment market to scour for talents for top positions though it is costly It is easier for them to recruit employees now as they can have more options and time to assess candidates It will be too late if firms leave executive search and recruitment until the economy recovers and their production and business bounce back It is very difficult to find executive talent, especially CEOs, in Vietnam FPT has not been able to find a CEO for a long time In the field of information and technology, many Vietnamese and foreign firms wish to set up software development centers in the country, but they cannot find enough engineers to meet their demand because of the supply shortage The qualifications of ===>>>>>186 local engineers are not enough to meet the requirements of employers Many of our engineers not know foreign languages, and are not updated on the developments in their fields Candidates for CEO jobs lack managerial experience and strategic vision So many firms still have to recruit expats for the position though they prefer Vietnamese, who have better understanding of the country's culture, business environment, and legal system FDI flows have increased this year Have they impacted the executive recruitment market? Registered capital is not important, only disbursed capital Investors have demand for executive talent only when they execute their projects in Vietnam We see an increase in demand for senior employees in some Japanese invested enterprises, but it is not a sharp rise In what sectors firms face the most difficulty in executive search and recruitment? It is difficult find CEOs in all sectors Vietnamese can meet the requirements for middle-level positions Most deputy directors and directors in firms are local people It used to be difficult 5-7 years ago for employers to find local people for even the director's position in their companies, so they used to employ expats Now Vietnamese people have learned managerial skills, so directors in most companies are locals I hope Vietnamese people's qualifications improve in the next few years, and CEO recruitment will become easier Many multinational companies rotate employees between countries for staff training They could move their employees in Thailand, Singapore, or Indonesia to Vietnam and vice versa This way they are also training Vietnamese employees, helping improve the qualifications of local workers How you assess the attractiveness of the Vietnamese market to foreign employees? ===>>>>>187 Many candidates from Japan, Hong Kong, Singapore have applied for jobs we advertise on our website Some expats are willing to work in Vietnam because of political stability, high development potential, and acceptable income But senior candidates will not want to work in Vietnam because they want to develop their capacity in developed and competitive markets like the US and Japan The Vietnamese market is very small, so the size of firms is also small Does Vietnam have a true executive recruitment market? Not yet Vietnam opened up for foreign direct investment over 20 years ago, and workers need more time to meet the requirements of firms Firms' needs in terms of both quantity and qualification have not been met yet The shortage of senior employees will be even more serious when the economy recovers and labor demand bounces back The number of university graduates is very large, but their capabilities cannot meet firms' requirements Hasn't it been too long? After all Vietnam opened its doors more than 20 years ago? Yes, it has been too slow The changes in our educational system have not caught up with economic development, failing to meet the requirements of employers FPT has even had to start a university to serve need for employees Vietnam will become less competitive in attracting FDI unless the government carefully reconsiders the issue We would have to compete with other countries in attracting FDI by increasing workers' productivity, not by offering low wages The productivity of Vietnamese workers is low compared to that of those from China, Thailand, and Malaysia How are the salaries offered to executives? The highest salaries are often seen in the financial and banking sector CEO of banks could get hundreds of thousands of dollars a year, or even $1 million CEOs in the manufacturing sector could get $200,000-300,000 a year ===>>>>>188 Expats often get higher salaries than local employees in the same positions, maybe because of employers' higher expectations REVIVED DEMAND In the first half of 2013 moderate growth was reported across a broad array to head their enterprises VietnamWorks' report says that demand for director/CEO positions increase The industries with the biggest increase in demand included manufacturing ===>>>>>189 Trang 108 : Labor market to rebound in 2014 The labor market is expected to see a rebound this year, especially with a huge increase in investment from Japan and South Korea IT, marketing, and customer service continue to lead the demand for labor, Jonah Levey, founder and CEO of job company VietnamWorks tells Vietweek What is your expectation for the labor market in 2014? Jonah Levey: 2013 witnessed an amazing recovery in the labor market Q1 saw no change in labor demand, but from Q2 on, demand kept rising at a steady pace of more than 10 percent each quarter compared to the same period of 2012 Overall, labor demand in 2013 increased percent compared to the previous year This upward trend is expected to continue into 2014, especially with a large amount of investment coming from Japan and South Korea Major cities like Hanoi and Ho Chi Minh City will be the hubs of job supply due to their strategic positions as centers of commercial activities However, places like Bac Ninh and Binh Duong will also post a lot of jobs thanks to the flourishing industrial parks Which sectors will have the biggest demand and offer the best salaries this year? IT, marketing, and customer service continue to lead the labor market’s demand side However, we see great growth in other industries like import-export, which increased its labor demand a whopping 38 percent in Q4 of 2013, compared to the same period of 2012 As for salary level, popular sectors tend to be those that offer the most competitive compensation package for employees In this economic climate, applicants flock to jobs that promise financial stability Japanese and Korean companies are among the most popular employers According to VietnamWorks’ survey, seven out of the 10 most desired companies belong to Japanese and Korean groups The economic slowdown has changed society’s perception of jobs, with some sectors becoming less attractive to workers and others more attractive What you think about this? ===>>>>>190 There is always a fair reason for any change, especially in the labor market As I mentioned above, in the current economy, people prioritize financial stability in choosing their employers Highly qualified individuals look for a decent compensation package that will allow them to not only survive but also live comfortably in a time associated with rising costs of living Industries that promise good financial compensation like banking and finance, as usual, attract a lot of job seekers Technology companies have also become great potential employers in Vietnam, similar to what has happened in the world in the last few years By contrast, the production sector has become less attractive to highly qualified individuals who prefer to work in central downtown districts instead of industrial parks The change has profound ramifications for the labor market On the part of job seekers, signing themselves up for trendy and highly-compensated careers like banking and finance can be a promising decision, but there is a great deal of competition just to get an entry-level position in these industries On the other hand, the less attractive sectors can be unexpectedly rewarding and much easier to enter On the employers’ side, companies in popular sectors will have a hard time choosing the right talents in a crowded pool of applicants, some of whom are only in it for a generous compensation At the same time, companies in less popular sectors will struggle with the task of finding qualified talents with such a limited supply of labor Experts have warned about the oversupply of workers in some sectors like banking, finance, and property, and the shortage of skilled workers in manufacturing How can these be balanced? One possible measure is to push for a more serious career guidance program A lot of college students in Vietnam not know what they have to to become appealing to employers In addition to getting high scores at school, college students should participate more in activities like volunteering or internships The experience gained through these activities will help them become familiar with professional work environments as well as prepare them for the reality of working in certain ===>>>>>191 sectors As a result, students will have a better sense of who they really are as a professional and which industry is best suited to their interests and abilities What should Vietnam to improve the quality of its workforce? Rather than focusing on the weaknesses of Vietnamese workers, I would like to talk about a more pressing problem: how to improve Vietnamese the labor force’s quality It is a big question for policymakers and educators However, employers themselves can also help Recruiting skilled workers is a major challenge in Vietnam, and the situation is very likely to worsen in the coming years as demand for skilled talents continues to grow faster than supply Universities and vocational schools are not generating enough graduates to meet the demand More importantly, many graduates from Vietnamese universities and trade schools not possess the skills and ability required of foreign enterprises or top local businesses That is why companies like Intel, FPT Software, and others are spending billions of dong on training VietnamWorks.com delivered over 2.8 million job applications to over 8,000 employers in 2013 Employers come to us because they want more and better candidates to apply for their jobs In addition, companies with the means will continue to invest heavily in training to bridge the gap between the talent they require and the talent available in Vietnam Are firms willing to pay higher salaries for workers with better qualifications when many of them only seek low-cost workers? The problem is that a lot of times it is not about the costs; it is about the overall benefits that a company can get from an employee If an employee contributes greatly to the growth of a company, he/she should be rewarded with a decent compensation package that reflects his/her value to the company Many companies already have effective human resource policies to retain and reward their most valuable talents For example, Japanese company Evolable Asia uses the “probation bonus” approach to rewarding talents in Vietnam: any employee who passes the probation period will receive a one-time bonus of half a month’s salary Companies are willing to invest in their most ===>>>>>192 valuable employees The most pressing question right now is not whether firms want to pay high salaries, but whether there are good enough employees who deserve competitive compensation packages ===>>>>>193 Trang 109 : Vietnam remains firm on controversial airport project Central government wants to go ahead with a multi-billion dollar plan to build the Long Thanh Airport in Dong Nai Province, as the project is set to be voted by lawmakers in June The Ministry of Transport has rejected proposals by a group of constituents who want to expand the current Tan Son Nhat airport instead of building a new one in Dong Nai Province Plans for the new airport also envisage building a new golf course at Tan Son Nhat on land that critics say could be used for airport expansion instead In response to constituents in Tan Binh District – where Tan Son Nhat is located – who say they have no need for a golf course, the ministry has argued that the construction of the Long Thanh airport will satisfy demands that Tan Son Nhat cannot because the number of passengers is increasing In a petition last month, the constituents said Vietnam should not build Long Thanh airport, which is expected to cost at least US$7 billion in the first stage because the country is still poor Vietnam should not use official development assistance to build the airport while the Tan Son Nhat airport has not even been fully exploited yet, they said They also demanded a revocation of plans to turn the airport’s buffer zone into a golf course instead of using it to expand the current airport In its response, the transport ministry said Tan Son Nhat airport served 20 million passengers in 2013 and it would be overloaded soon Expanding Tan Son Nhat to serve 40-45 million passengers a year will be costly and unfeasible because it is located in the residential area only seven kilometers from the city center, Tuoi Tre (Youth) quoted a ministry document as saying The transport ministry said Ho Chi Minh City, Dong Nai, Binh Duong and Ba Ria - Vung Tau provinces are major airline transport ===>>>>>194 markets that link to bustling air transport routes in Southeast Asia A major international airport is necessary to meet domestic and regional demand and Long Thanh is a better place than other airports in the area, it said Regarding the golf course project at Tan Son Nhat, the ministry said it was approved under proposals from the ministries of defense, construction and planning and investment after being reviewed by other relevant ministries New airport At a meeting to discuss the construction of Long Thanh airport on March 27, transport minister Dinh La Thang reaffirmed that the project is necessary for the country’s development He instructed relevant agencies to clarify the necessity of the project and the choice to build it in Long Thanh instead of Bien Hoa, Can Tho or Da Lat and why Tan Son Nhat should not be expanded instead According to the Airports Corporation of Vietnam, the Long Thanh airport is expected to serve up to 100 million passengers and five million tons of goods a year by 2030, becoming a major airport in Southeast Asia The first stage is scheduled for completion in 2020 to serve 25 million passengers and 1.2 million tons of goods a year, with an investment of $7 billion In January, Dong Nai authorities met with relevant agencies to discuss the resettlement of local residents for the Long Thanh airport project A total of 5,381 households of more than 17,000 residents will be affected by the project, including 3,321 households that will have all their land revoked Compensation for affected residents is expected to be more than VND20.77 trillion The project is set to be built on an area of 5,000 hectares (12,400 acres) overlapping six communes in Dong Nai’s Long Thanh District ===>>>>>195 At a government teleconference last December, authorities in HCMC and Dong Nai both supported the construction of Long Thanh airport “Without a new airport, Tan Son Nhat will be overloaded in two or three years,” said HCMC mayor Le Hoang Quan Dinh Quoc Thai, chairman of the Dong Nai People’s Committee, said the government should facilitate the Long Thanh airport project so the province will develop stronger and more quickly soon However, Nguyen Xuan Thanh, director of the Public Policy Program at the HCMC-based Fulbright Economics Teaching Program, told Dat Viet newspaper that his team had assessed the project and found it to be financially-ineffective "No investor is interested in investing in the airport under a BOT [build-operate-transfer] project It will need to use ODA [official development assistant] The problem then is that the whole country has to pay the debt.” ===>>>>>196 [...]... that we visit the Dai Loc eco-tourism site belonging to Nguyen Cong Thanh, better known as Tu Thanh, in Son Dinh Commune It was late in the evening when we arrived at Thanh's place Ben Tre's reputation as "the land of coconuts"is well deserved and we were not surprised to see coconut palms with 50-70 fruits each right at the entrance Thanh, a middle-aged man, took us to a restaurant on the banks of the... noodle soup (bánh canh) ===>>>>>32 with mussels and coconut milk that Thanh's wife was going to teach us to cook Besides Thanh's eco-tourism site, there are many other places to visit in Cho Lach: a sandy beach on the banks of the Co Chien River in Son Dinh Commune; the Ba Ngoi and Tam Loc fruit gardens in Vinh Binh Commune; the Nam Cong ornamental garden with nation famous plants in Vinh Thanh Commune;... Aviation Administration of Vietnam (CAAV), Lai Xuan Thanh, concurred Public funds can meet just 60 percent of the need, and the rest should be raised from foreign and domestic private investors, according to the CAAV It is necessary to find investors with experience in the construction and management of airports, advanced technologies, and deep pockets, Thanh said "However, it is difficult to attract foreign... saplings from the HCMC University of Agriculture and Forestry in 2001, Thanh has successfully developed eight strains of cocoa and every year he provides more than 500,000 seedlings to farms nationwide After the refreshing drink, we were treated to bánh xèo hến(deepfried pancake, or sizzling cake, stuffed with mussels) cooked by Thanh's wife ===>>>>>31 Having had the pancake at many different places,... accompanied with sips of cocoa wine The dinner ended with durians, another fruit that Thanh is famous for Nicknamed "the durian witch,"he was the man who brought the famous Mon thong durian variety from Thailand into Vietnam during the 1990s and successfully grew it here I would highly recommend a boat ride with Thanh along the canal that runs through his garden He will provide the best form of "entertainment,"introducing... covers more than two hectares Guests are free to collect ripe durians that fall on the ground and eat them Or, at the coconut area, just tell Thanh, and he will pick whichever fruit you like and you can enjoy it on the spot We decided to spend the night at Thanh's place Contrary to our initial belief that it would be a homestay experience, we ended up staying in bungalows built in the garden to serve... private airline to be Japanese firms have expressed interest in grounded in the $10-billion Long Thanh Airport near Ho Vietnam Chi Minh City, work on which is expected to Like us on start in 2015 Facebookand scroll Another barrier to foreign investment is the down to share lack of specific policies, Thanh said your comment "We do not have clear regulations about which projects foreign investors can... small traders also make more than $5,000 a year, they said Cuong said that when local crops are out of season, between 80 to 90 percent of the supply at the market is brought from China through Tan Thanh border gate Bac Ninh market managers said the traders almost always managed to produce legal import documents and quality certificates for their stock So far this year, they have imposed fines of VND8... same large-scale intensive farming Hence local prices cannot compete with Chinese imports, they said ===>>>>>12 Trang62: In Vietnam, unsustainable ‘modernization’ too much for sanitation services Huynh Thanh Long said he and his neighbors close all their doors and windows whenever they are at home but that doesn’t keep the awful stink from the Ba Bo Canal out of the house “Pollution often forms a thick... said All airports are managed by the government except in certain cases approved by the government Most investors do not want to build airports under build-transfer contracts, but want to manage them, Thanh pointed out, saying this was also a deterrent to attracting investments "So, to encourage foreign investment in the field, we need to categorize airports and allow foreign investors to manage them."