Viet Nspanm seeks spanvispantion investment

Viet Nam is creating a framework to stimulate private investment in the aviation industry. — File Photo

by Ngoc Duy

HA NOI (Biz Hub) — Viet Nam is creating a framework to stimulate private investments in the aviation industry, as public-private partnerships for development of this sector has become a trend in the region.

Nguyen Duong, the deputy director of the Civil Aviation Authority of Viet Nam’s (CAAV’s) airport management department, made this announcement at the Southeast Asia Airport Expansion Summit in Ha Noi yesterday.

“I hope that in the very near future, we will see the participation of private and foreign investors in airport development, as well as the aviation industry in Viet Nam,” he said, adding, “This is the way things should go.”

Duong said the new aviation law, which took effect on July 1, had aimed to promote the roles of private investors.

The booming growth in the aviation market is posing a great demand for better airport infrastructure, requiring greater financing and knowhow from the private sector.

From 2010 to 2014, the domestic aviation sector grew on average 12 per cent per year in terms of passenger traffic, with annual numbers of passengers increasing from 21.07 million to 33.16 million.

In freight, the market posted an average growth rate of 12.67 per cent per year, with annual quantities of cargo rising from some 460,000 tonnes to more than 741,000 tonnes.

Notable growth was also reported during the period at some international airports such as Cam Ranh, which grew at 25.5 per cent per year, Vinh at 34.8 per cent per year, and Phu Quoc at 24.7 per cent per year.

Even Tho Xuan, a small airport in central Thanh Hoa Province, witnessed 70.5 per cent growth per year in the last two years.

Duong said these were challenging Viet Nam’s airport system, and the number of airports were to be increased from the present 22 to 26 by 2020.

National flag carrier Vietnam Airlines had changed from a state utility into a joint stock company, and airport businesses would also be privatised “sooner or later”, he said.

The CAAV would be no exception, he said, adding that this firm was expected to offer 25 per cent of its equity to the public while retaining a 75 per cent State stake in the future.

The declaration of the ASEAN Single Aviation Market is likely to be signed by December 2015, and is expected to fully liberalise air travel and allow ASEAN airlines to co-operate in the region.

“However, the capacity at congested airports will be a real concern,” said Neil Bentley, vice president of aviation in Asia Pacific, at AECOM.

“Major airports in the region are thinking of a ‘bigger picture’ and either new runways or new airports are being planned for most major cities to meet booming travel demands,” he said.

Some airports in the Philippines, Singapore and Hong Kong are tending to promote the public-private partnerships for their future upgrades, he said.

“What the private participants really need is a very sound and reliable legal framework, to make sure that their investments will be secure in the long term,” he told Viet Nam News.

“Privatisation is not a case of the government exiting the industry. It is very important that the government understands that it has ongoing roles that need to be properly structured to enable growth and capacity,” he said.

Earlier this year, Vietnam Airlines, Vietjet and some private businesses asked to buy the operational rights to a terminal at Noi Bai Airport in Ha Noi. The T&T Group, VinGroup and the Sungroup are reportedly eyeing Phu Quoc Airport in the south.

Bentley said that while Southeast Asia was a leader in terms of globalisation of the aviation market, there were obstacles for a partnership between airlines and airports.

“Airlines are customers of airports. Airlines basically want to minimise the charges, while airports of course want to get a fair return on their assets,” he explained.

On-Block Gmbh General Manager Reinhard Zeiler noted that airline returns are inadequate even in good years, with the average net profit per departing passenger being some $2.56.

“Airports continue to enjoy market power over both airlines and their customers, leading to prices that are higher than they should be and service standards that are lower than they should be,” he quoted International Air Transport Association official Tony Tyler as saying. — VNS

Source: bizhub

Viet Nspanm seeks spanvispantion investment

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Terrace rice paddy photo among the best in the National Geographic Photo Contest

Terrace paddies in North Viet Nam by Nguyen Quynh Anh

(Photo: nationalgeographic.com)

The photo depicts terraced rice paddies in Tu Le Valley, northern Yen Bai province at the beginning of the new season with the H’mong people crossing on their way home at the end of their work day.

The annual contest is accepting entries from all around the world between September 1 to November 16 this year, classifying them into three official categories – People, Places and Nature.

The entries selected in the evaluation round will proceed to round two where the judges will select a first place winner in each category based on the following criteria: creativity, photographic quality and ingenuity and authenticity of the content.

The First Place Winner in each Category will receive US$2,500, and his/her winning photograph will be published in National Geographic magazine.

One Grand Prize Winner will receive, in addition to the First Place prize, US$7,500, and a trip to the District of Columbia, USA from January 13 to January 15, 2016 to participate in the National Geographic Photography Seminar. Trip includes round-trip coach class air transportation between a major airport near Winner’s home and Washington, DC; three (3) nights’ hotel accommodations in Washington, DC; a behind-the-scenes tour of National Geographic headquarters; and access to the all-day Seminar on January 14, where Grand Prize Winner’s winning entry will be projected. The Grand Prize is non-transferable and no cash alternative is available. Approximate retail value (“ARV”) of the Grand Prize is US$11,000-$14,000 (depending on cost of the flight from First Place Winner’s home country). Any difference between actual retail value of Grand Prize and ARV will not be awarded.

The mountainous Yen Bai province is home to thousands of hectares of terrace rice fields, which were recognised as national heritage sites in 2007. The area is about 1,000 metres above sea level, making it impossible to grow rice fields as they are in the delta. Thus, local residents grow their own rice on terraced fields to prevent the water from flowing downhill.

Terraced fields in Yen Bai are beautiful all year round. Visitors in March are treated to the sight of glittering ponds before locals transplant rice seedlings from April to May. After May, the hills are covered in green until the fields start to turn yellow with ripe rice in early September.

During the harvest in October, the golden rice field stands out of green forests, creating a magnificent picture in Viet Nam’s northern area.

Terrace rice paddy photo among the best in the National Geographic Photo Contest

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Hespandquspanrters in span condo?

According to the Law on Enterprise (2005), corporations are not eligible to be headquartered in condominiums used for a residential purpose. However, in certain cases enterprises may base their head offices in apartment buildings registered for mixed-use purposes.

The Law on Enterprise (2005) stipulates: “The head office of an enterprise is the place for contact and transaction of the enterprise; it must be located within the territory of Vietnam, have a definite address, including house number, street name (or alley) or name of commune, ward, township, district, provincial town, provincial city, province or city under central authority; telephone and facsimile numbers and email address (if any).” Neither does the Enterprise Law nor its guiding documents have regulations prohibiting corporations from having their headquarters in apartment buildings.

Currently, there are many opinions stating that condominiums were designed and built solely for dwelling purposes. Therefore, it is considered inappropriate to the construction purpose and use when enterprises place their headquarters or offices in such buildings. However, PLF suggests examining the Regulation on Management of Condominium Use enacted with Decision No. 08/2008/QD-BXD by the Ministry of Construction on May 28th, 2008. It clearly states that “a multi-storey building with mixed-use purposes”, often referred to as a condominium with mixed-use purposes, has areas that can be used for various purposes, aside from residing. In reality, it is quite common to see the ground level or other floors of an apartment building being rented to supermarkets, stores, head offices, an other businesses.

Under the direction of the Ministry of Construction, stated in Official Dispatch No. 2544/BXD-QLN dated November 19th, 2009, owners of residential purpose-built condominiums are not permitted to alter such buildings’ designated use by setting up offices, stores, businesses or production facilities. On the other hand, there are two options in regards to multi-storey buildings with mixed-use purposes:

(1) In cases where the areas utilized for offices, stores… are separate from residential areas, they must be arranged and managed as similarly as business and service constructions;

(2) In cases where such areas are inseparable, which leads to failed application of separate management provisions, particularly when the office area does not meet working conditions in compliance with Building Regulations and Standards, corrective measures must be taken in a timely manner. However, Official Dispatch No. 2544/BXD-QLN has yet to provide guidelines on the implementation of such measures.

In summary, corporations seeking to use condominiums to base their head offices in, must consider whether the area they plan for their headquarters are eligible for other uses (such as to build offices, businesses and production facilities, etc.) apart from the residential purpose. Due to the fact that enterprises are not permitted to place their head office in a condominium solely built for residing, it is essential to ask its investor or owner for crucial documents detailing the use of the apartment area planned for the head office. Furthermore, enterprises must note that business registration authorities may decline granting Business Registration Certifications to those whose headquarters are based in apartment buildings.

PLF – LAW FIRM

Hespandquspanrters in span condo?

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Parents struggle with school fees

Many Vietnamese parents struggle to cover the so-called “voluntary contribution” to class and school of their children as a new school year starts.

The contribution is usually a payment that is recommended and collected by a representative group of parents in a class or a school. Parents voluntarily pay at the first meeting of students’ parents and teachers in an academic year.

This year, voluntary contribution once again incensed parents because the cost seemed higher.

Local media, for the last few days, reported an estimated payment for first grade in Vo Thi Sau Primary School, a public school in HCM City. The school needed up to VND66.6 million (US$3,000) to improve class facilities including two air conditioners, a TV, a printer, a bookshelf and window curtain.

There are 47 students in the class, meaning that parents of each student would pay about VND1.5 million ($66.7).

In addition, they are suggested paying another VND1.5 million to give day-care assistants about VND2 million ($89) per month each. Parents of the class also contribute VND400,000 ($15.7) each to the parents’ association of the school.

The voluntary contribution of over VND3 million ($133) was a financial burden for many couples, especially low-income earners.

Viet Nam’s current minimum wage varies from VND2.15 million ($96) a month in rural areas to VND3.1 million ($137) in major cities like Ha Noi and HCM City.

A father of a first grader in Vo Thi Sau School told vnexpress.net that he did not understand why students’ parents have to pay to buy schooling facilities and allowances for day-care assistants that should have been covered by the school with collected tuition fees and Government’s grants.

A mother of a second grader in the same school said last year, she paid VND 2.2 million as voluntary contribution to help modernise the school facility and this year VND 2.1 million.

The Vo Thi Sau School principal Nguyen Ha Phuong Thanh said students’ parents proposed and collected the voluntary contribution by themselves.

“It’s good when parents join in to improve the learning conditions for students,” she said.

Last month, ahead of the new school year, headlines over so-called voluntary contributions or informal school fees hit local media. Some schools in Ha Noi were reportedly suggesting parents buy new school uniforms or school stationery despite the fact that the existing ones were still good.

However, many parents shared the thought that they would rather to meet the bill than make their children the black sheep in class.

Vuong Thanh Nhan, mother of an 11th grader in Ha Noi and also a member of a parents representative group in her son’s class for years, said that the key to develop and operate “Voluntary contribution” fund was transparency.

In some cases, parents were upset about proposed voluntary contribution because they had no idea about it prior to parents-teacher meetings, she said, adding that the parents and teachers must keep in touch to find what the students need.

She said that there were regulations on voluntary payment by parents.

“Any extra fundraising must be discussed and agreed upon by parents in class. Those who want to contribute more, we welcome,” she said.

She said that a parent representative group also sent regular accounting reports to parents of students in class. — VNS

Parents struggle with school fees

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Vietnam to ban tourism activities on ‘lobster island’ near Nha Trang

An island off the south-central Vietnamese province of Khanh Hoa has emerged as a new destination for domestic and international ecotourists, but now islanders and holidaymakers may be upset to know that it is not zoned for tourism development out of national security reasons.

The Vietnamese government will ban all tourism activities on Binh Ba Island, according to a directive by Prime Minister Nguyen Tan Dung that takes effect on November 6.

Binh Ba Island, around 60km from the provincial capital city of Nha Trang, is the largest island in Cam Ranh Bay, home to a military base of the same name.

The island, along with Chut Isle and Hoi Cape, also in Cam Ranh Bay, should be kept tourism-free to ensure security for the Cam Ranh Military base, the premier said in the directive released on September 22.

The developers of all investment projects in Khanh Hoa and the south-central province of Ninh Thuan, whose construction and implementation may be connected to Cam Ranh Bay and the military base, must ask for advisories from the Ministry of National Defense before seeking approval from the government or the prime minister, according to the document.

With sea and island tours becoming trendy in Vietnam, Binh Ba, also known as the “island of lobsters,” has attracted many holidaymakers in recent years.

Tourists will travel to Cam Ranh City and board passenger ships to get to Binh Ba, where they will explore the natural landscapes, clean beaches and fresh lobsters, and stay overnight at the local houses offering homestay service.

Many islanders have thus jumped into the tourist industry by offering homestay, dining and other services to embrace visitors.

A corner of Binh Ba Island. Photo: Tuoi Tre

“The coming ban on tourism development will have adverse impacts on the tourist service providers on Binh Ba,” Nguyen Van Hung, director of a travel firm that operates tours to the island, told Tuoi Tre (Youth) newspaper.

Hung said there are no tourism facilities on Chut Isle and Hoi Cape, so Binh Ba will be the only out of the three to be affected by the governmental decision.

Dao Van Hoa, chairman of Cam Ranh City, said the local administration has recommended that people not invest in tourism on Binh Ba Island and in Cam Ranh Bay.

“Khanh Hoa authorities are in charge of licensing projects in these areas, but most of the tourism services on Binh Ba have been offered by islanders without obtaining a license,” Hoa told Tuoi Tre.

The Cam Ranh administration will consider providing support to help Binh Ba islanders switch to other types of business when they are forced to stop serving tourists, once the directive becomes effective, the official added.

Tran Minh Hai, deputy director of the Khanh Hoa Department of Planning and Investment, also said his agency has never licensed any tourism project on Binh Ba.

There are in fact two resort projects under construction on the island, a source with knowledge of the matter told Tuoi Tre on Tuesday.

Hai also said tourists must declare their visits to Binh Ba to local authorities, and they are not allowed to stay overnight there.

But it is common for tourists to spend a night on the island to enjoy the sunrise the following day.

An islander, however, told Tuoi Tre that only Vietnamese nationals are able to do so as foreigners and overseas Vietnamese are prohibited from staying overnight.

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Vietnam to ban tourism activities on ‘lobster island’ near Nha Trang

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VN tourism"s litspanny of woes

Foreign visitors shop for souvenirs at Bac Ha Market in Lao Cai Province. Up to 5.69 million international tourists visited the country through September of this year, marking a year-on-year drop of 5.9 per cent. — VNS Photo Thai Ha

HCM CITY (Biz Hub) — Poor services, lack of attractions, and myopic authorities have helped cause a decline in foreign visitor arrivals since last October.

Statistics from the Viet Nam National Administration of Tourism revealed that 5.69 million international tourists visited the country till September of this year.

This was a drop of 5.9 per cent over the same period last year. In September, international visitors to Viet Nam were estimated at more than 626,300 arrivals, decreasing 5.8 per cent against the previous month after posting rises in July and August.

Markets which posted the biggest falls in the number of arrivals to Viet Nam included Cambodia, which dropped 43.5 per cent over the same period last year, Thailand, which was down 27.6 per cent, and Laos that dropped 25.9 per cent, in addition to China, which went down 18.2 per cent, Indonesia, which dropped 13.2 per cent, and Russia which saw a drop of 10.6 per cent.

The World Tourism Organisation’s statistics revealed at a recent meeting in Ha Noi that the number of foreign arrivals to Viet Nam rose by an average 8.9 per cent during the past decade, far exceeding the average growth rate of the world at 3.4 per cent.

However, the number of foreign arrivals to Viet Nam has been on a downward trend this year from a year ago, suggesting that the country’s tourism industry needed to be improved to fully tap its potential and attract foreigners.

“International visitor numbers have declined relentlessly since October 2014,” Tuoi tre (Youth) newspaper said in a report. “Tourism authorities blame the fluctuations in the Russian rouble for the decline in Russian tourism arrivals.”

But at the same time visitor numbers are growing in to other countries in the region.

Thailand, for instance, saw the number of visitors rise by 27.4 per cent in the first eight months of this year.

Cambodia has also reported consistent growth. According to statistics from its Ministry of Tourism, international tourist numbers topped 2.3 million in the first six months, up 4.6 per cent.

It had received more than 4.5 million visitors last year, a 7 per cent rise.

It would be hard for Vietnamese tourism to compete since neighbouring countries like Thailand, Cambodia, Singapore regularly launch interesting promotions and tourism products, tourism experts said.

The newspaper quoted analysts as saying the slump in Viet Nam’s tourism is because of poor promotion and a dearth of products.

A clip titled “Welcome to Viet Nam” launched on social media and YouTube by the Ministry of Tourism was hailed by professional tour operators.

The newspaper quoted the analysts as saying that if something like this had been done sooner and on a regular basis, Viet Nam’s tourism would not be a basket case like now since the country has many more interesting things than shown in the clip.

If beautiful images of Viet Nam are shown regularly, there would be more international visitors to the country, Matthew Underwood, director of Matterhorn Communications, a PR company which counts many resorts in Viet Nam among its clients, said.

Information about Viet Nam is scarce in many countries, with many even thinking the country was at war recently.

A director of an international travel company with a representative office in Viet Nam said the number of European visitors his company brought to the country this year had fallen by double digits.

It had to find customers in other markets but this had not been enough, he said.

“We organised fam trips, bringing journalists and representatives of travel companies to Viet Nam, but our Vietnamese partners charged us.” — VNS

Source: bizhub

VN tourism"s litspanny of woes

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VNAT celebrates World Tourism Day 2015

(Photo: Thu Thuy)

Speaking at the ceremony, Mr. Nguyen Van Tuan – Chairman of Viet Nam National Administration of Tourism emphasized annual World Tourism Day (September 27) is an international event which aims at fostering the international community’s awareness of the significant contribution of tourism to national socio-economic development. This year"s theme for World Tourism Day is "One Billion Tourists, One Billion Opportunities", which has affirmed tourism as a powerful force that provides valuable and sustainable livelihood opportunities for millions of people, fosters multicultural understanding and develops friendship between communities and nations. He encouraged all people to work together to maximize the immense potential of tourism for inclusive economic growth, protect environment and promote sustainable development.

Mr. Bruno Angelet – Ambassador, Head of European Union Delegation to Viet Nam informed the European Union and Viet Nam celebrate the 25th anniversary of diplomatic relations this year. The European Union is an important partner of Viet Nam and has supported tourism training, capacity improvement for Viet Nam tourism. He spoke highly of Viet Nam tourism’s development in infrastructure, growth rate, professionalism and preservation of national traditional cultural values.

In her speech, Ms. Mary McKeon – Chief Advisor of the ESRT Programme stressed that World Tourism Day is an occasion to highlight the immense potential of tourism for socio-economic development and investment opportunities. Furthermore, the event is a valuable tool for raising the awareness of Responsible Tourism and its impact on tourism development.

In the framework of the ceremony, hundreds of tourism students collected rubbish around Hoan Kiem Lake and paraded by electric cars around Ha Noi old quarter. These activities aimed at creating a green tourism environment and raising community’s awareness of responsible tourism.

Hong Nhung

VNAT celebrates World Tourism Day 2015

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