The government has assigned the Ministry of Planning and Investment to draft an instruction to further encourage a second foreign direct investment wave. The government is planning to further decentralise licensing of such projects.

Politics 

- The Deputy Prime Ministers of Vietnam and Cambodia, Nguyen Sinh Hung and Hor Namhong, on August 21 discussed specific measures to increase the efficiency of their existing bilateral economic and commercial cooperation in Phnom Penh.

- The General Secretary of the Communist Party of the Vietnam Central Committee, Nong Duc Manh, left Hanoi on August 22 to start an official visit to China.

- Prime Minister Nguyen Tan Dung received the General Secretaries of Japan's two ruling parties in Hanoi on August 21. 

- The National Assembly argued Monday about whether votes of confidence aiming to remove or approve officials in elected and appointed positions are legal under the amended law on organizing the body. 

- The Government recently issued a decree regulating compensation for losses and punishment for wasteful spending. Under the decree, those committing offences involving the management and use of State funds and business assets can be fined up to VND100 million.

Business 

- Many plastics companies have to reduce their production by 50-60% in order to avoid losses caused by higher material prices. Material prices have increased by 10% compared to two weeks ago, now costing $1,400/tonne. 

- The government has assigned the Ministry of Planning and Investment to draft an instruction to further encourage a second foreign direct investment wave. The government is planning to further decentralise licensing of such projects. 

- The workshop on Vietnam – Japan economies yesterday heard that the business and investment environment in Vietnam has improved ‘considerably’. Japanese investors are now tending to set up production bases in Vietnam instead of China. 

- The HCM City Peoples’ Committee has asked the Prime Minister to agree to a power plant project to be backed by Singaporean SembCorp Utilities Group (build – operation – transfer). The 700 MW plant is proposed to be located in Hiep Phuoc Industrial Zone. It will take two years to build the plant and will be operated for 30 years before transfer to the city. 

- The Vietnam Construction and Import – Export Corporation is planning to issue VND650bil ($40.62mil) worth of shares, of this amount, VND450bil ($28.12mil) will be sold to employees, while the remaining VND200bil ($12.5mil) will be sold via the stock exchange. 

- Tra and basa prices have increased again in the Cuu Long River Delta provinces, now fetching VND12-12,500/kg. At these prices, the farmers are profiting of VND500/kg. 

- Vietnamese rubber exporters have reduced shipments to China, leading to an export price increase. The prices are forecast to reach yuan19,000/tonne by early September. Latex prices have increased by yuan300/tonne, however, exports have reduced 30% due to supply shortage. 

- The Ministry of Transport has approved a project to hiring chief executive officers for the Vietnam Automobile Industry Corporation (Vinamotor). The salary offered to Vietnamese citizens will be VND30-40mil a month, while for foreigners it is VND50-60mil ($3,750). 

- The Vietnam Construction Federation has announced its ‘black list’ of 43 projects that have proved to have ‘problems’. 

- Korean Kumho Asiana Group will continue its expansion into Vietnam with the construction of an automobile tire plant in the southern province of Binh Duong in late October, said Sun Jongsun, incoming general director of Kumho Tire Vietnam Co.

- HCM City has so far this year licensed 168 Foreign Direct Investment (FDI) projects worth $1,065 million, representing a four-fold increase on the corresponding period last year. This brings the total number of the city-based operative FDI projects to 2,058 with a combined investment capital of over $13,532 million. The past eight months also saw an additional investment of $200 million in 70 FDI projects in HCM City. 

- Hanoi has decided to build a financial and banking centre for an investment capital amount of between $300 and 500 million early next year on 25ha in the new urban area to the west of West Lake. 

- By June 30 this year, non-life insurance sales had reached VND3.2 trillion (about $189 million), representing a jump of 25 percent against the figure in the first six months of last year, said the Vietnam Insurers Association.

- Medevice 3S company in the southern province of Binh Phuoc has opened a factory to make condoms for export. Ninety percent of its products will be shipped to Brazil. The factory, capitalised in the first phase at $2.6 million, can produce 145 million condoms a year and it is expected to earn $3.5 million annually. Medevice 3S is a joint venture between the Nha Bich Co. Ltd. of Vietnam, the ShinHeng Company of the Republic of Korea and the Tradecentre Company of Brazil. 

Social 

- Local people in Phu Tan district, southernmost Ca Mau province, saved the lives of 16 foreign fishermen caught in distress on August 19. The fishermen, including two Indonesians and 14 Cambodians, were rescued while being adrift at sea.

- A photo exhibition featuring the life of General Vo Nguyen Giap was opened in central Quang Binh province on August 21 on the occasion of his 95th birthday.

- As many as 40 people were killed or listed as missing as torrential rains and floods hit northern, central and Central Highlands provinces from August 16-20.

- Electricity of Vietnam has connected 892 of the planned 976 remote communes to the national power grid but rough terrain is hampering the project’s final stages.

- Quan Doi Nhan Dan (People’s Army) publisher has published a collection of essays, compositions, presentations and other pieces of writing by General Vo Nguyen Giap, former top leader of the People’s Army of Vietnam.

- The Vietnam Association for Victims of Agent Orange/Dioxin and the HCM City Cinematography Association will hold a trans-Vietnam fundraising tour through 15 provinces and cities beginning Wednesday lasting through September. 

- Soc Trang province People's Committee has decided to spend VND8.7 billion on note-books, textbooks for Khmer pupils and children of social policy benefiting and poor families. This is aimed at helping them in the new 2006-2007 school year. 

- Binh Duong province's Disabled People and Orphans Supporting Association has handed over 203 scholarships worth over VND120 million to orphans and disabled children.

- HCM City Youth Union Central Committee opened in Hanoi on August 20 a conference for Youth Union cadres of schools nationwide in the 2005-2006 school year.

- The Overseas Vietnamese Association in Vientiane, Laos, opened an art festival on August 19 to celebrate the August Revolution (August 19) and the National Day (September 2) of Vietnam. 

- Funding required for Programme 134, which will provide minority people with housing, land for housing and production, and safe water in the next two years was estimated to cost from VND1,800-1,900 billion.

- The Prime Minister has decided to increase capital investment for projects under Socio-economic Development Programme 135 targeting disadvantaged communes in remote and mountainous areas in 2006. Capital investment for infrastructure improvement projects will be raised from VND500 million to VND700 million per commune and from VND100 million to VND120 million per commune for production development schemes.

- Chief of Vietnam Airlines’ Security Department Tran Tien Dung said on Monday that the airline would sue three passengers who said their luggage contained bombs in two instances that caused losses of VND400-500mil for the firm. 

- A group of 39 overseas Vietnamese who made great contributions to Vietnam’s resistance war arrived in Hanoi on Monday, August 21, to begin a visit to the home country that will last on September 4. 

- Deputy Prime Minister Nguyen Sinh Hung signed a decision to hold a complete survey of economic and administrative establishments nationwide on July 1, 2007. 

- More than 65% of over two million diabetes sufferers in Vietnam don’t know that they have the disease, according to reports released at a seminar held in Hanoi last Saturday. 

Lifestyle, Travel and Sport 

- All 34 contestants for the Miss Sport on Monday waited with baited breath to see who would take the crown. After the winner is announced, the contestants will run for the title of Miss Friendly.  

- The 2006 Mekong Experimental Theatre Festival will open at Hanoi's Hong Ha Theatre on August 28, offering local and foreign art troupes a chance to exchange views on experimental stage art. Thirty artists and actors from China, Cambodia, Laos, Thailand, the Philippines, and Indonesia will join the event.  

- Hanoians were treated to Japanese traditional dances and songs played with traditional musical instruments on August 21 as part of the opening ceremony of the 2006 Japan Festival. Part of the activities of the year to promote Japan-Vietnam cultural exchange, the Japan Festival, is being held in Vietnam for the first time. 

- The exhibition themed “Beautiful days in Vietnam” has been launched in Hanoi. Paintings by 72-year-old Canadian artist Rene Lemay are on display. During his multiple trips, his paintings have been inspired by daily life in Vietnam. 

- More than 400 objects reclaimed from five shipwrecks off the coast of Vietnam have been showcased from today in Can Tho Museum. The exhibition was co-organised by Can Tho Museum and Vietnam Museum of History. 

- Hanoi has approved a proposal submitted by its tourism department to install the first 70 public computer terminals to provide information for domestic and foreign tourists. The computers will be installed at hotels, bus and railway stations, historic places, and popular public places. 

- Many travel agents have reported that the number of tourists booking tours has not increased even though National Day offers a three-day weekend this year. 

- A 2006 tourism programme, called "Pilgrimage to the Roots", has so far this year attracted more than 4 million visitors to the three northwestern provinces of Yen Bai, Lao Cai and Phu Tho.  

- The HCM City Department of Culture and Information will focus on 28 projects to enlarge and improve the city’s lacking cultural works as part of a two-part plan for 2020. The four main cultural works are the Phu Tho Circus and Variety Theater in District 11, the Opera and Ballet Theater in District 1, the Cultural Complex in District 1 and the Ho Chi Minh City General Museum at the new Thu Thiem urban area in District 2.

- Hanoi topped the medal tally with six gold, six silver and six bronze medals, beating HCM City who came in second with four gold, one silver and five bronze medals at the National Games Gymnastics and Sports Aerobic Championships.

- Vinh Long cyclist Nguyen Duc Loc fended off Trinh Van Sang of Hanoi in a nail-biting uphill finish to take the 88km 9th stage of the Mekong Delta Cycling Championship yesterday.

- Police say they are taking a closer look at more than four topflight matches this season for alleged match fixing. Suspicions arose after Tien Giang's 2-0 win over Da Nang in the V-League's penultimate round of games on August 13.

- Inspectors are auditing the Hanoi-based National Training Centre No 1 following allegations that a series of financial wrongdoings were committed including slush funds and dodgy purchases.

- Japanese baseball lovers and sports equipment producers of Saitama province granted 3,000 baseballs and 100 gloves to Vietnamese players. 

Sci-tech, Health & Environment 

- A framework agreement on scientific and technological cooperation between Vietnam and Japan was signed in Hanoi on August 21. Under the agreement, each side will ensure favourable conditions for individuals and units from both private and public sectors to join cooperative activities.

- The United Nations Food and Agriculture Organisation (FAO) and the HCM City University of Agriculture and Forestry have successfully raised a species of parasitic bees that are able to kill stag beetles. The university will transfer the technique to help farmers in central Thanh Hoa province restore their coconut groves if it receives a request. 

- The Ministry of Industry is devising a scheme to develop bio-fuel until 2015 with a vision to 2020, aiming to produce E10 petroleum and bio-oil to partly replace the current used fuels. 

- More than 100 second-level domain names ending in .vn used by Vietnamese banks have been registered for re-selling by non-banking entities, said the Vietnam Internet Network Information Centre.  

VietNamNet Bridge