Wood material import on the rise

VNBusinessNews.com - Wood material import reached more than US $23 million in a week from June 16th to June 24th, up by 15% against the previous week, according to statistics.

The recent continuous increases in wood material imports could hint at a recovery of the domestic wooden industry.

Vietnam increasingly imports Xylia xylocarpa and oak. While Xylia xylocarpa is imported from Myanmar, oak mainly comes from the USA.

Most of imported wood materials will then be used in the building industry, or to make household wooden goods in Vietnam. >>Full Story...

Fuel company will not separate from Vietnam Airlines

VNBusinessNews.com - The Ministry of Industry and Trade’s Competition Council has overturned an April decision to separate Viet Nam Air Petrol Company from Vietnam Airlines, its parent company.

The decision was made at a June 26 appeal hearing after the council had ruled in favor of the separation last April, Thoi Bao Kinh Te Saigon Online reported Tuesday.

The council said the new decision aimed to protect the national flag carrier.

The separation had been proposed by foreign-invested Jetstar Pacific Airlines, which runs multiple flight routes in Vietnam. The proposal came after the fuel supplier, known as Vinapco, had cut off fuel supplies to the budget airline on April 1 last year following an argument over prices.

While rejecting the separation proposal, the council said it was still upholding a fine of VND3.37 billion (US$192,000) against Vinapco for the unilateral fuel cut.

The council said Vietnam Airlines’ jet-fuel supply company had abused its monopolistic power and flouted the Law on Competition.

The fine is equivalent to 0.05% of Vinapco’s revenue in 2007, the newspaper said, adding the maximum fine could be up to 10% of the revenue for such violation.

To strengthen competition and weaken Vinapco’s monopoly, the council has suggested that the government license PetroVietnam Jet Fuel Joint-Stock Company, an affiliate of Petrolimex, as soon as possible to allow it to supply fuel to domestic and foreign airlines. (TN) >>Full Story...

Doosan Vina wins multi-million dollar contract

VNBusinessNews.com - The Doosan Vina company in the Dung Quat economic zone will produce equipment for thermal power plants under a contract worth 70 million USD from the Republic of Korea (RoK) group, Doosan Heavy Industries and Construction.

The contract has been signed between the RoK group and the German group Siemens to supply two heavy recovery steam generators to the Nhon Trach II power plant in the Dong Nai industrial zone, Doosan President and CEO GeeWon Park said on July 9.

To shorten production time, the group will produce the main parts of the generators at Doosan Vina, he said, adding that the group’s advanced technology will be applied throughout every stage, from design, to production, transport, installment and trial operation for the project.

The project will commence in mid next year and wrap up in 2011.

The Doosan Vina company, a 300 million USD investment project, has five factories, employing more than 1,700 workers in Quang Ngai province. The company is expected to earn 200 million USD from exports this year and 800 million USD by 2013. >>Full Story...

Vietnam Airlines makes steady ascent through rough weather

VNBusinessNews.com - Flagship carrier Vietnam Airlines has announced that it was able to maintain growth in the first half of the year despite the ‘one-two punch’ dealt by the global economic recession and A/H1N1 flu.

The national carrier conducted almost 32,320 safe flights, carrying nearly 4.5 million passengers, including 1.6 million foreigners, a year-on-year rise of 0.6 percent.

The seat occupancy rate for the reviewed period was around 72.5 percent and total revenues reached more than 11.3 trillion VND.

Along with the Government’s assistance and the recovery of the national economy, the corporation has taken a number of measures to prevent its decline such as maintaining its scale of operations and its flight schedule and raising the quality of its service on both domestic and international routes.

In contrast to a number of foreign aviation firms that have had to pare down their operations, their staff and their overhead due to the ongoing financial crisis, Vietnam Airlines has opened three more domestic routes and kept all its employees on the payroll without cutting either salaries or bonuses.

Apart from promoting Vietnam ’s image abroad, the airline has implemented a new passenger service system, an online payment service as well as consolidating joint venture cooperation.

In April, Vietnam Airlines signed an agreement to enter SkyTeam, the world’s second largest airline alliance, in order to make preparations to become an official member in June 2010.

To increase its competitiveness and modernise its fleet, last month, Vietnam Airlines signed a contract to purchase 16 A-321 aircraft and a memorandum of understanding on an order for two A-350 XWBs from Airbus.

Early this month, the airline conducted direct flights on four new routes and adjusted flight paths for the Tan Son Nhat Airport in order to reduce flying time on nine routes by 4 to 10 minutes per route.

In addition, the corporation saved between 6-7 million USD on fuel costs in the first six months of the year, and continues to regard fuel saving as a critical task for the remaining months of the year.

Vietnam Airlines has set out to transport around 9.4 million passengers and attain a turnover of around 24 trillion VND this year.

The corporation is currently using 52 planes for 19 domestic and 23 international routes. (VNA) >>Full Story...

Prime Minister approves foreign-funded projects

VNBusinessNews.com - The Prime Minister has approved three foreign-funded projects, including a 1.5 million EUR project to prevent flooding in Ho Chi Minh City, with aid from the Dutch Government.

Another project will receive funding from the Netherlands’ Cordaid organisation to improve the living conditions for people in Chu Hreng and Ngoc Bay communes in Kon Tum town in Central Highlands Kon Tum province.

The project will be carried out over three years.

The PM also approved a mine clearance project in the central province of Quang Tri funded by the Japanese Government through the Japan-ASEAN Integration Fund (JAIF). >>Full Story...

Competition to‘energize’ power market

VNBusinessNews.com - Draft regulations on a competitive power-generation market in Vietnam were discussed at a seminar held in Hanoi on July 9.

The draft includes seventeen chapters and 209 articles, outlining the rights and responsibilities of each participant in the future market.

In order to develop this kind of competitive market in Vietnam, it is necessary to ensure that all the shortcomings of the electricity sector’s current model be addressed, and the sector be operated under market mechanisms, Deputy Minister of Industry and Trade Do Huu Hao told the seminar, which was hosted by his ministry together with the Electricity Regulatory Authority of Vietnam and New Zealand’s consultancy firm PB Associates.

PB Associates briefed attendees on key points of the draft regulations. It also made comparisons between the proposed regulations with those of other countries.

Experts attending the seminar also shared their opinions on the draft.

The Electricity Regulatory Authority of Viet Nam will continue completing the draft regulations for submission to the Ministry of Industry and Trade.

Final regulations on a competitive power-generation market are expected to be launched later this year, and the market is scheduled to be operational in Vietnam in the 2010-2011 period. (VNA) >>Full Story...