Ten most prominent economic events in Vietnam in 2006 selected by Saigon Times Groups journalists, economists and business

people 1. Tenth Party Congress The 10th Congress of Vietnams Communist Party (April 18-24) reviewed achievements and shortcomings of 20 years of doi moi (renovation) and determined to continue reform and international integration. A new, younger leadership was set up after the Congress. 2. Vietnam became WTO member Vietnam was admitted as the 150th member of the World Trade Organization on November 7. In midDecember, the U.S. approved the Permanent Normal Trade Relations (PNTR) with Vietnam, marking the countrys completion of its WTO joining process. 3. Successful organizationof APEC 14 Vietnam successfully organized the 14th Asia Pacific Economic Leaders Meeting in November, with the participation of leaders and officials from 21 member economies of the Asia Pacific Economic Cooperation (APEC) forum. 4. Record FDI attraction Foreign direct investment (FDI) in 2006 surpassed US$10 billion, the record since Vietnam began to receive this source of capital. 5. Good export revenue Vietnams exports in 2006 reached a record high of US$39.6 billion, up 22.1% on 2005. The gross domestic product (GDP) growth reached 8.2%, nearly the same as the rate in 2005. The consumer price index increased 6.6%, lower than 8.4% of 2005. 6. Stock market soared The stock market experienced phenomenal growth, with many businesses listing on the exchanges in Hanoi and HCM City. Its market capitalization soared, from US$460 million of 32 listed companies at the beginning of the year to US$8.7 billion of 92 companies by the years end. However, share prices were not stable. The Vietnam Index jumped from 304 at the beginning of the year to more than 800 on Dec. 20. The rise and fall was affected mainly by psychology, not by the performance of businesses. 7. New enterprise and investment laws The new Enterprise Law and Investment Law, which were approved by the National Assembly in December 2005 and took effect from July 1, 2006, mark a big progress in the reform process. The laws unleash the potential of the private sector and create a level playing field between domestic and foreign businesses and between the private and the State sectors. 8. Big corruption cases uncovered Many big corruption cases, with the PMU 18 and land sharing in Do Son as the typical cases, were investigated and prosecuted. The promulgation of the Anti-Corruption Law and the establishment of an anti-corruption agency shows the Governments determination in fighting corruption. 9. Heavy losses from natural disasters and epidemics The continuous occurrence of natural disasters, such as typhoons Chanchu, Durian and Xangsane, and epidemics in livestock and paddy caused heavy losses estimated at nearly VND20 trillion (US$1.25 billion). It will take many years to recover the damage. 10. Massive strikes More than 150 strikes occurred at foreign-invested enterprises (FIEs) at the beginning of the year, with the participation of 160,000 workers. The main reasons are low pay and poor protection of workers interests. The strikes subsided after the Government raised the minimum salary at FIEs.

Mi s kin kinh t ni bt nm 2006 c cc nh bo Thi bo Si Gn, cc nh kinh t v doanh nhn bnh chn: 1. i hi ng X i hi X ng CSVN nh gi li nhng thnh tu v nhng mt hn ch ca 20 i mi, quyt tm tip tc i mi v hi nhp quc t. Mt i ng lnh o mi, tr hn hnh thnh sau i hi. 2. Vit Nam gia nhp WTO

Vit Nam c cng nhn l thnh vin th 150 ca t chc thng mi th gii. Gia thng 11, Hoa K thng qua Quy ch quan h bnh thng vnh vin vi Vit Nam, hon thnh quy trnh gia nhp WTO. 3. T chc thnh cng APEC 14 Vit Nam t chc thnh cng Hi ngh Lnh o cc nn kinh t Chu Thi Bnh Dng ln th 14 vi s tham gia ca Lnh o v quan chc t 21 nn Kinh t ca Din n Hp tc kinh t Chu Thi Bnh Dng APEC. 4. K lc thu ht u t trc tip nc ngoi FDI. u t trc tip nc ngoi FDI vt qua 10 t la M, mt k lc k t khi Vit Nam bt u thu nhn ngun vn ny. 5. Kim ngch xut khu tng cao Kim ngch xut khu nm 2006 lp k lc vi 39,6 t la M, tng 22,1% so vi nm 2005. Mc tng tng sn phm quc ni (GDP) t 8.2%, gn bng tc tng trng nm 2005. Ch s gi tiu dng tng 6.6%, thp hn so vi 8.4% nm 2005. 6. Th trng chng khon pht trin vt bc Th trng chng khon chng kin mt s pht trin phi thng, vi nhiu doanh nghip nim yt trn sn giao dch H Ni v TPHCM.. S huy ng vn ca th trng ny tng cao t 460 triu la M ca 32 cng ty nim yt u nm ln n 8,7 t la M ca 92 Cng ty vo cui nm. Tuy nhin, gi c phiu th khng n nh. Ch s VinaIndex nhy t 304 ln 800 vo ngy 20 thng 12. S ln xung chu nh hng a phn bi tm l ch khng phi qua kt qu kinh doanh ca cc doanh nghip! 7. Lut u t v lut Doanh nghip mi Lut u t v lut Doanh nghip mi c Quc hi thng qua vo 12/2005 v c hiu lc vo 1/07/2007 nh du bc pht trin ln ca qu trnh i mi. Cc b lut ny khai thng tim nng ca b phn kinh t t nhn, to sn chi bnh ng cho cc doanh nghip trong nc v nc ngoi, gia t nhn v nh nc. 8. Nhiu v tham nhng b phanh phui Nhiu v tham nhng ln in hnh nh PMU 18 hay chia t Sn b iu tra v truy t. Vic trin khai Lut chng tham nhng v lp cc c quan chng tham nhng cho thy quyt tm chng tham nhng ca chnh ph. 9. Thit hi nng n do thin tai v dch bnh S xut hin lin tip ca thin tai nh bo Chanchu, Durian, Xangsane, dch bnh ca vt nui, cy trng gy thit hi gn 1.25 t la M. Phi mt nhiu nm mi khc phc c nhng thit hi ny. 10. Nhng v nh cng quy m ln Hn 150 v nh cng din ra t u nm cc doanh nghip u t trc tip nc ngoi vi s tham gia ca 160.000 cng nhn. Nguyn nhn chnh l do mc lng thp v quyn li ca cng nhn t c bo v. Cc cuc nh cng lng du khi Chnh ph tng mc lng ti thiu trong cc doanh nghip u t trc tip nc ngoi.

Canon targets US$1 bil. in export revenue Canon Singapore has revealed its ambitious target of US$1 billion in export revenue and product diversity from Vietnam. Canon has been the largest exporter in northern Vietnam in the past two years, and our target for this year is to reach US$1 billion, said Mike Asao, chief representative of Canon Singapore in Vietnam. Last year, the company posted export revenue of US$700 million. Canon has provided consumers with high quality and diversified business and consumer products, including laser printers, copiers, faxes, cameras, photo printers and scanners. So far, the company has invested US$370 million in the bubble jet printer manufacturers in Vietnam. It aims to maintain a yearon-year growth rate of 30%. Asao noted that Vietnams economy was growing fast and Canon was seeing an even more progressive

development in the next few years. Therefore, the need for office automation and photographic equipments will be likely to soar, and the company will focus on this sector. Canon has established ink-jet and laser beam printer production facilities in Hanoi. Last year, it surpassed many giants to become the leading exporter of information technology products in Vietnam. Honda, Yamaha build second motorcycle plants Honda Vietnam Co. (HVN) will build a second motorcycle plant soon to meet local customers diversified needs for motorcycles. Work on the new plant next to the companys existing plant in Vinh Phuc Province will begin this week. The US$65-million facility is scheduled to operate in the second half of 2008 with annual capacity of 500,000 units, most of which will be scooters. Together with the existing plant, it will raise Honda Vietnams annual production capacity to 1.5 million units. In 2006, HVN achieved record sales of 851,000 units, up 27% against 2005. Sales in the first half of this year reached 500,000 units, a 27% year-on-year growth. From 1998 when the company launched its first motorcycle model until the end of June 2007, more than 3.7 million units were sold. HVN has exported motorcycles and spare parts to other countries since 2002, becoming the first manufacturer in Vietnam to export this kind of vehicle. Last month, another Japanese motorcycle maker, Yamaha Motor Vietnam (YMV), also started construction of its second motorcycle factory in Noi Bai Industrial Park, Hanoi. The US$43-million plant, due to begin production in October 2008, has raised YMVs investment capital from US$80 million to US$123 million. The firms sales in the first six months of this year reached 250,000 units, a year-on-year increase of 80,000 units. Experts forecast that customers in Vietnam will buy three million motorcycles this year. FPT ventures into financial market The State Securities Commission (SSC) has granted FPT Corp. approval to establish a securities firm, paving the way for Vietnams leading information technology company to expand operation to the financial market. The FPT Securities Joint Stock Company, with initial registered capital of VND200 billion, is expected to start operation in mid-August in the fields of brokerage, securities trading, consulting and custody. FPT holds a 25% stake in the company and shareholders the balance. To further deepen its presence in the financial market, bourse-listed FPT is seeking approval to set up a fund manager and a commercial bank. The company will team up with institutions and shareholders as well as contribute VND150 billion to the commercial joint-stock bank, and VND36.3 billion to the fund management company. FPT Securities Co. is the fourth securities firm licensed so far this year. At present, there are about 60 securities firms in Vietnam.

Canon t mc tiu 1 t la M gi tr xut khu Canon Singapore cng b mc tiu y tham vng t 1 t la gi tr xut khu v a dng sn phm ti Vit Nam. ng Mike Asao, trng i din Canon Singapore ti Vit Nam cho bitCanon tr thnh nh xut khu ln nht min Bc Vit Nam trong 2 nm qua, v mc tiu ca chng ti trong nm nay l t 1 t la. Nm ngoi, cng ty ny t kim ngch xut khu 700 triu la. Canon cung cp cho khch hng nhng sn phm cht lng cao, a dng v chng loi nh my in laser, my photocopy, my fax, my in nh v my qut (scan). n nay, cng ty u t 370 la M cho cc nh my sn xut my in phun. H t mc tiu duy tr mc tng trng hng nm l 30%. ng Asao lu rng nn kinh t Vit Nam pht trin nhanh v Canon nhn thy s pht trin vt bc hn trong nhng nm tip theo. Do , s cn thit ca cc thit b ngnh nh v cc thit b t ng vn phng chc chc s tng cao, v Canon tp trung vo lnh vc ny. Canon thit lp cc thit b sn xut my in phun v my in laser H Ni. Nm ngoi, Canon vt qua nhiu i gia tr thnh nh xut khu dn u v sn phm cng ngh thng tin Vit Nam.

Honda, Yamaha xy nh my th 2 Honda Vit Nam (HVN) s xy dng nh my xe my th 2 p ng nhu cu xe my a dng ca khch hng ni a. Vic xy dng nh my mi c bn cnh nh my hin nay ti Vnh Phc s c bt u trong tun ny. Nh my 65 triu la theo k hoch s i vo hot ng vo na cui nm 2008 vi cng sut 500.000 chic/nm, phn ln trong s l xe tay ga. Cng vi nh my hin ti, sn lng nm ca Honda Vit Nam s ln n 1,5 triu chic. Nm 2006, HVN t mc bn hng k lc 851,000 chic, tng 27% so vi nm 2005. Lng bn ra trong na u nm nay t 500,000 chic (27% nm). K t 1998 khi HVN a ra i xe my u tin cho n cui thng By/2007 c hn 3.7 triu chic xe my c bn ra. HVN xut khu xe my v ph tng ra nc ngoi k t nm 2002, tr thnh nh sn xut u tin Vit Nam xut khu mt hng ny. Vo thng trc, mt nh sn xut xe my Nht Baen khc l Yamaha Motor Vit Nam (YMV), cng khi cng nh my th 2 ti Khu Cng Nghip Ni Bi. Nh my 43 triu ny s i vo sn xut vo thng 10/2008, nng vn u t ca YMV t 80 ln 120 triu la. Lng bn ra ca cng ty trong na u nm nay l 250.000 chic (mc tng hng nm 80.000 chic). Cc chuyn gia d on rng khch hng Vit Nam s tiu th 3 triu xe my trong nm nay. FPT tham gia th trng ti chnh U ban chng khon Nh nc va ph duyt cho Tp on FPT thnh lp Cng ty chng khon, m ng cho Cng ty Cng ngh thng tin hng u Vit Nam ny m rng hot ng sang th trng ti chnh. Cng ty C phn chng khon FPT vi vn ng k ban u 200 t ng kin s bt u hot ng vo gia thng 8 trong lnh vc mi gii, mua bn chng khon, t vn v bo lnh. FPT gi 25% c phn, cc c ng nm gi phn cn li. thm nhp su hn vo th trng ti chnh, FPT cng ty nim yt trn th trng chng khon ang tm s chp thun thnh lp mt qu v mt ngn hng thng mi. Cng ty s phi hp cng cc trng i hc v cc c ng cng nh ng gp 150 t ng vo ngn hng c phn thng mi v 36,3 t ng vo Cng ty qun l qu.. Cng ty chng khon FPT l cng ty chng khon th t c cp php trong nm nay. Hin ti c khong 60 cng ty chng khon Vit Nam.

Solution To Labor Problems Vietnam has confirmed many times that it boasts an abundant work force, capable of meeting the socioeconomic development. However, in reality, the quality of Vietnams human resources is still a hard problem to solve By the end of last year, Vietnam has a work force of 45.3 million, three-fourths of which is in rural areas. Nguyen Dai Dong, head of the Department for Labor and Jobs under the Ministry of Labor, War Invalids and Social Affairs, says, however, that after years of development, Vietnams labor market is not up to scratch. Dong says only 32% of the Vietnamese labor force is trained with 14.4% having undergone short training courses. A report on the labor market released by the ministry shows that Vietnam is severely lacking in highly skilled labor and service workers in the fields of finance, banking, tourism and salesmanship. This shortage has prompted companies to turn to foreign human resources in spite of their high costs. In the labor export sector, Vietnamese guest workers in foreign countries are mostly low-skilled. Meanwhile, labor demand has been on the constant rise both quantitatively and qualitatively in recent years as it has been spurred by the ever-growing number of new companies. The quality of the labor force has been a topic of hot debate in many conferences and meetings. In a ministry-hosted reviewing conference earlier this year, Labor Minister Nguyen Thi Hang voiced her concern over the news that Thailand has planned to send its workers to work in Vietnam eight to 10 years from now. She said the Vietnamese work force could lose the battle on its home ground. We will

possibly have to export manual workers and import skilled labor. That means we will lose in our own potential market. The low quality of the work force has resulted in difficulties in boosting labor export, too. It is paradoxical that Vietnam can easily expand its marketplace for labor export. But as it fails to find enough workers meeting the skill demand by employers, it has to close those newfound markets not long afterwards. The latest example relates to Qatar. Qatari authorities announced they would receive 50,000 Vietnamese workers. However, after a short while, hundreds of Vietnamese visiting workers were forcibly sent home because they failed to meet workmanship demand or violated the host countries laws. As a result, Qatar is considering its policies on receiving Vietnamese labor. Whats more, the low labor quality has also sent salaries of high-skilled labor soaring because recruiters have had limited choices in this regard. A yearly research on investment costs released by Japan External Trade Organization in May indicates that salaries of personnel of middle-management or higher levels in Vietnam is surging drastically, especially in HCM City. While the salary increase for labor with a university degree or higher in other countries is 7%, it is 40% in Vietnam, the research says. This can be considered one of the biggest disadvantages of Vietnam in attracting foreign investment. Labor experts contend that the most severe human resources shortage is in information technology, finance, auditing, law and most of manufacturing industries. In addition, the English command of the Vietnamese labor force is still inadequate although in reality this situation is improving thanks to the fact that more and more expatriates have come to work in Vietnam and Vietnamese trained abroad have returned home. Measures in sight? In response to the human resources problem, both the Government and the Labor Ministry are implementing ambitious training plans to tackle it. Nguyen Dai Dong says that the ministry has proposed a five-point scheme related to the labor market development. These points include: development of labor supply, development of labor demand, acceleration of market transactions, reform of salaries and wages, and completion of labor market institution. Of them, the most important issue is the development of vocational training on a national scale. In a May conference on vocational training and labor export, Prime Minister Nguyen Tan Dung expressed his worry about the low rank of Vietnams productivity in the world ranking and the countrys jobless pool of 10 million. Recently, the Prime Minister endorsed the National Program on Jobs up till 2010, which will allocate VND6 trillion for vocational training for the next four years. The program aims to provide job opportunities for 50 million workers, create new jobs for 2 million a year, and pull down the unemployment rate in urban areas under 5% by 2010. Hopefully, the new government determination will help improve the labor quality in Vietnam in the future.

Gii php cho vn lao ng. Vit Nam tng nhiu ln khng nh nim kiu hnh v lc lng lao ng di do cng kh nng p ng s pht trin ca kinh t, x hi. Tuy nhin, trn thc t, cht lng ca ngun lao ng Vit Nam vn l mt vn nan gii. n cui nm ngoi, Vit Nam c lc lng lao ng ln ti 45,3 triu ngi, 3/4 s l t cc vng nng thn.ng Nguyn Dai Dong(hi hi mnh khng bit chnh xc tn ng ny!) trng phng lao ng v vic lm thuc b lao ng, thng binh v x hi cho rng tuy vy, trong nhng nm sau ca qu trnh i mi, th trng lao ng Vit Nam vn cha t ti ch tiu ra. ng Dong cho bit ch c 32% lc lng lao ng Vit Nam c o to cng vi 14,4% c tri qua cc kho o to ngn han. Mt bo co c b a ra ch r rng Vit Nam ang thiu trm trng nhng lao ng tay ngh cao v i ng nhn vin trong cc lnh vc: ti chnh, ngn hng, du lch, thut kinh doanh. S khan him ny khin cc cng ty hng ra nhng ngun nhn cng ngoi nc bt chp gi c ca. V mt xut khu lao ng, hu ht cc lao ng Vit Nam nc ngoi u c tay ngh thp.

Trong khi , nhu cu v nhn lc trong nhng nm gn y ang gia tng tri ngc hn, c v cht lng v s lng do c thc y bi s pht trin lin tc ca cc cng ty mi. Cht lng ca lc lng lao ng ang l ch ca cc cuc tranh ci ny la trong nhiu hi ngh, hi tho. Trong cuc hp gia cc b trng u nm nay, b trng b lao ng, b Nguyn Th Hng trnh by mi quan tm v thng tin cho rng Thi lan ln k hoch a ngi lao ng sang Vit Nam trong 8 n 10 nm ti. B a ra nhn nh rng ngi lao ng Vit Nam c th b tht bi trong cuc chin trn mnh t ca mnh v " chng ta rt c th s phi xut khu nhng lao ng chn tay v nhp nhng lao ng lnh ngh. iu c ngha l ta s tht bi trn chnh th trng y tim nng ca mnh." Cht lng ca lc lng lao ng thp cng gy ra nhiu kh khn trong vic khuyn khch xut khu lao ng. cng tht l mt nghch l khi cho rng Vit Nam c th m rng phm vi thng mi i vi xut khu lao ng. Nhng do tht bi trong vic tm kim nhn cng p ng nhng yu cu k thut ca ngi s dng lao ng, Vit Nam phi ng ca nhng th trng mi khng lu sau khi pht hin. V d mi nht l vi Quata. Chnh ph Quata thng bo h s tip nhn 50,000 cng nhn Vit Nam. Tuy nhin, mt thi gian ngn sau , hng trm cng nhn tm thi b gi tr v nc do khng p ng c yu cu tay ngh hay vi phm nhng lut l ca nc bn. Do , Quata ang phi xem xt li chnh sch nhp lao ng VIt Nam ca mnh. Thm vo , cht lng nhn cng thp cng y mc lng cho nhng lao ng lnh ngh ln cao bi cc nh tuyn dng c s la chn rt hn ch trong im ny. Nghin cu hng nm v gi c u t ca t chc ngoi thng Nht Bn trong thng 5 cho thy mc lng cho nhn vin qun l cp trung bnh hay cao hn Vit Nam ang tng mnh, c bit l ti thnh ph H CH Minh, ng thi:" trong khi mc lng cho ngi lao ng c mt bng i hc hoc nhiu hn cc nc khc tng 7% th Vit Nam t l l 40%. y c th xem nh mt tr ngi ln nht ca VIt Nam trong vic thu ht vn u t nc ngoi". Cc chuyn gia v lao ng khng nh rng nhn cng khan him nht l trong cc ngnh nh: cng ngh thng tin, ti chnh, k ton, lut v phn ln cc ngnh cng nghip ch to. Thm na, trnh ting Anh ca lc lng lao ng Vit Nam vn cha tng xng mc d tnh trng ny ang dn c ci thin nh vic ngy cng nhiu ngi ngoi quc n lm vic Vit Nam v ngi Vit Nam tu nghip nc ngoi tr v nc. Gii php tip theo gii quyt vn d ngun nhn lc, c chnh ph v b lao ng ang thc hin nhng k hoch o to y tham vong. ng Nguyn Dai Dong cho bit b ra mt h thng gm 5 mc lin quan n s pht trin ca th trng lao ng. Nhng im l: mc pht trin ca lao ng cung cp, s pht trin ca nhu cu lao ng, s hi thc ca th trng giao dch, thay i ca mc lng cng tin cng v s hon thin ca c quan th trng lao ng.i v h vn quan trng nht l vn o to hng nghip trn quy m quc gia. Trong cuc hp v o to hng nghip & xut khu lao ng hi thng 5, th tng chnh ph Nguyn Tn Dng bc l s lo lng cu mnh v th hng thp ca VIt Nam trong nng sut lao ng trn bng xp hng th gii v nhm ngi tht nghip ca c nc c khong 10 triu ngi. Gn y, th tng chnh ph thng qua chng trnh ca quc gia v vic lm cho n nm 2010, n s phn phi 6 nghn t ng cho o to hng nghip trong 4 nm ti. Chng trnh hng t cung cp c hi lm vic cho 50 triu cng nhn, to vic lm cho 2 triu ngi mi nm v n nm 2010 gim t l ngi tht nghip trong cc thnh ph xung cn 5%. Hi vng s quyt tm ca chnh ph mi s nng cao cht lng lao ng Vit Nam trong tng lai!

Sacombank receives best bank award Euromoney, a British finance-banking magazine, granted the Best Bank-Vietnam 2007 award to Saigon Thuong Tin Bank, or Sacombank, on July 17. Sacombank is the only bank in Vietnam to receive this award this year. The bank was selected based on its sustainable growth prospect, performances, risk management, IT application, management and contributions to the finance-banking industry. FPT provides advanced health care services

FPT Telemedicine Center, under FPT Group, has just launched the remote health care services that have been licensed by the Health Ministry for the first time in Vietnam. Truong Xuan Tung, FPT Telemedicine director, said the center would initially provide remote cardiovascular health care and consulting services for membership holders with modern equipment imported from Switzerland and Israel. Nguyen Kim opens second store Saigon-Nguyen Kim Shopping Center has inaugurated its second store selling home appliances at 79B Ly Thuong Kiet St., Tan Binh Dist., HCM City. The 4,000-square-meter store sells more than 5,000 items made by JVC, LG, Panasonic, Philips, Samsung, Sanyo, Sony and Toshiba. Until 2010, Nguyen Kim will raise the number of its supermarkets in Hanoi, HCM City, Danang, Binh Duong and Can Tho to nine.

Sacombank nhn gii thng ngn hng tt nht Euromoney tp ch Ti chnh Ngn hng ca Anh Quc - trao gii thng Ngn hng tt nht Vit Nam 2007 cho Ngn hng Si gn Thng tn (Sacombank) vo ngy 17/07. Nm nay, Sacombank l ngn hng duy nht ca VN c nhn gii thng ny. Sacombank c chn la da trn trin vng pht trin bn vng, kt qu kinh doanh v s qun l ri ro, vic qun l v ng dng cng ngh thng tin cng vi nhng ng gp trong lnh vc ti chnh ngn hng. FPT dch v chm sc sc kho cao cp Trung tm cha bnh t xa, thuc tp on FPT va khai trng dch v chm sc sc kho t xa u tin ti Vit Nam theo giy php ca B Y t. Theo gim c Trng Xun Tng, Trung tm s bc u cung cp t vn v chm sc sc kho tim mch cho cc hi vin vi cc thit b hin i nhp t Thu S v Israel Nguyn Kim khai trng siu th th 2 Trung tm mua sm Si Gn Nguyn Kim va khai trng siu th th 2 chuyn bn cc thit b gia dng ti 79B L Thng Kit,qun Tn Bnh, TP HCM. Ca hng rng 4000m2 bn hn 5000 chng loi hng ho ca JVC, LG, Panasonic, Philips, Samsung, Sanyo, Sony and Toshiba. n 2010 Nguyn Kim s nng con s siu th ca mnh ti H Ni, TP HCM, Nng, Bnh Dng v Cn Th ln con s 9. Low-Cost Carriers Take Off S ct cnh ca hng khng gi r

- Strong public demand and high economic growth in Vietnam are spurrirrng the development of homegrown low-cost air carriers - >Tng trng kinh t Vit Nam tng cao v nhu cu ca cng chng cng mnh m iu ny thc y vic pht trin vn chuyn hng khng gi r trong ni a tng theo. - The aviation market in Vietnam has been growing strongly in recent years in line with the countrys strong economic development, which has boosted the demand for business and leisure travel. ->Th trng hang khng Vit Nam pht trin mnh m trong nhng nm gn y cng vi s pht trin mnh v kinh t ca t nc thc y nhu cu kinh doanh v v du lch tiu khin. - The potential of the market has attracted the interest of international air carriers, especially low-cost airlines. At present, 40 international airlines have services to and from Vietnam on 55 routes. Their participation is set to become more favorable as Vietnam is committed to opening its skies under its international agreements, and its Civil Aviation Law has set easier requirements for foreign airlines operations here. ->Tim nng ca th trng ny thu ht s quan tm n vic vn chuyn hang khng quc t, nht l hng khng gi r. Hin nay, 40 hng hng khng quc t c dch v bay n Vit Nam trn 55 tuyn. S tham gia ca h c thit lp tr nn thun li hn bi v Vit Nam cam kt m ca lnh vc hng khng theo cc Hip nh quc t m Vit Nam k kt, v Lut hng khng dn dng Vit Nam to d dng hn nhng nhu cu cu ca hot ng hng khng nc ngoi y.

- According to the Ministry of Transport, the local aviation market has maintained high growth, averaging 20% a year, and has a lot of room for development. In particular, low-cost air carriers will be very attractive to local consumers as the majority of travelers are low-income earners and they are very sensitive about prices. ->Theo B Giao thong Vn ti th th trng hng khng a phng duy tr mc tng trng cao, trung bnh 20% mi nm, c nhiu kh nng pht trin. c bit l hng khng gi r s rt hp dn khch hng trong nc bi v phn ln khch du lch c thu nhp thp v h rt nhy cm vi gi c.

- Several foreign low-cost air carriers were quick to launch services to Vietnam. In April 2005, Tiger Airways launched its first flights from Singapore to Hanoi and HCM City, becoming the first foreign low-cost air carrier to operate in Vietnam. In October that year,AirAsia of Malaysia joined in with flights from Kuala Lumpur toHanoi, and one year later with flights from Bangkok to Hanoi. Late last year, Jetstar, a low-cost subsidiary of Australias Qantas Airways, started flights from Sydney to HCM City. These low-cost carriers have enjoyed good business, as their flights have an average seat occupancy of 80%. ->Nhiu hng hng khng gi r nc ngoi nhanh chn n Vit nam khai trng dch v ny. Thng 4-2005, hang Tiger Airways khai trng chuyn bay u tin t Singapore n H Ni v thnh ph H Ch Minh, tr thnh hng hng khng nc ngoi gi r u tin hot ng Vit Nam. Cng hi thng 10-2005, hng AirAsia ca Malaysia tham gia vi chuyn bay t Kuala Lumpur n H Ni v mt nm sau vi chuyn bay t Bangkok i H Ni. Sau vo nm ri, hng gi r Jetstar, mt cng ty con ca Australia's Qantas Airways bt u nhng chuyn bay t Sydney n Tp HCM. Nhng hng hng khng gi r ny t c vic kinh doanh tt bi v s gh trung bnh ca chuyn bay t 80%. - Most low-cost air carriers are upbeat about the domestic aviation market. AirAsia is asking for permission to operate flights from Kuala Lumpur and Bangkok to HCM City in addition to its daily flights to Hanoi. Its move is expected to be put into effect soon, as Tan Son Nhat International Airport has just opened a new terminal able to handle up to 10 million passengers. Tiger also plans to increase services. ->Hu ht cc hng hng khng gi r ny u u th th trng hng khng ni a. Hng AirAsia ang xin cp php hot ng cc chuyn bay t Kuala Lumpur v Bangkok n TP HCM, hn na cc chuyn bay hng ngy n H Ni. Bc i ca h d nh sm i vo hot ng, khi sn bay quc t Tn Sn Nht va m nh n khch mi c th p ng c 10 triu lt khch. Hng Tiger cng d nh tng thm nhiu dch v.

As they must compete for customers, foreign budget airlines have plans to lower fares. Tony Fernandes, chairman of AirAsia, said his airline was trying to lower the fare for a single trip from Kuala Lumpur to Hanoi to as low as US$10 to give more opportunities for low-income people to realize their dream of flying. He said this at a press briefing to announce the opening of the Kuala Lumpur-Hanoi route in October last year. Khi h phi cnh tranh v khch hng, th cc hng hng khng gi r c k hoch h thp tin v. Ch tch hng AirAsia, Tony Fernandes, ni hng hng khng ca ng ang c gng h thp tin v xung 10 USD i vi chuyn bay mt lng t Kual Lumpur n H Ni to c hi cho nhng ngi c thu nhp thp thc hin gic m c bay. ng pht biu vi bo gii thng bo vic m tuyn Kuala Lumpur - h Ni vo thng 10 nm ri.

Late last month, AirAsia signed a letter of intent with Vietnam Shipbuilding Industry Group (Vinashin) to establish a low-cost airline joint venture in Vietnam. The joint venture, named VinaAirAsia, has legal capital of US$30 million, with Vinashin holding a 70% share and AirAsia the remainder. Vinashin chairman and chief executive Pham Thanh Binh said VinaAirAsia would start operation in July next year, with a fleet of nine aircraft. The shipbuilding giant andAirAsia were expected to officially sign an agreement for the joint venture on September 20.

Mi thng ri, hng AirAsia k mt th d nh cng vi Tp on Cng nghip ng ti thnh lp Lin doanh hng khng gi r Vit Nam. Lin doanh VinaAirAsia, c vn php nh 30 triu USD, trong Vinashin chim gi 70% c phn, AirAsia chim gi phn cn li. Ch tch v Gim c iu hnh Vinashin, ng Phm Thanh Bnh ni VinaAirAsia se bt u hot ng vo thng 7 nm ti, vi mt phi i gm 9 chic my bay. Tp on ng tu v hng AirAsia d nh k tha thun lin doanh chnh thc vo 20 thng 9.

With this venture, AirAsia has become the second foreign investor to hold a stake in a Vietnamese airline; Qantas acquired a 30% stake worth US$50 million in Pacific Airlines in April. AirAsia is preparing to begin services to HCM City to attract more passengers flying between Vietnam and Malaysia. Vi lin doanh ny, AirAsia tr thnh nh u t nc ngoi th hai gp vn vo hng hng khng Vit Nam; Quatas chim gi 30% vn, tr gi 50 triu USD vi hng Pacific Airlines hi thng 4. AirAsia ang chun b khai trng dch v bay n tp HCM nhm thu ht hnh khch i my bay nhiu hn gia Vit Nam v Malaysia.

Other low-cost air carriers in the region like Thailands Nok Air have plans to operate services to Vietnam. Hng hng khng gi r khc trong vng ging nh Thailand's Nok Air c k hoch hot ng dch v bay n Vit Nam.

On the domestic front, Pacific Airlines, the first low-cost air carrier in Vietnam, officially started operation under its new form in February. Luong Hoai Nam, Pacific Airlines managing director, said he was stunned with the big success of the first day of operation, when more than 10,000 tickets were sold online, evidence of the huge demand for low-cost air travel by local consumers. For just VND15,000 (nearly US$1) consumers can now fly between HCM City and Hanoi, a price that is a hundred times lower than the standard fare for the route. Nam said that to be able to offer such a super cheap fare, his airline has to cut costs to a minimum, such as selling tickets via the Internet and serving no meals on flights. V phng din ni a, hng vn ti hng khng gi r u tin Vit Nam, Pacific Arilines chnh thc i vo hot ng theo m hnh mi ny vo thng ging. Gim c hng Pacific Airlines, ng Lng Hoi Nam ni rng ng b ngc nhin v s thnh cng ln vo ngy hot ng u tin, khi c hn 10.000 v trc tuyn c bn, chng t nhu cu i vi khch du lch a phng bng hng khng gi r rt ln. By gi, vi ch cn 15.000 VND (tng ng 1 USD) khch hng c th bay i v v gia TP HCM v H Ni, mt loi gi thp hn gi chun n 100 ln i vi tuyn ny. ng Nam ni rng c th ngh mt loi gi siu r, hng ca ng phi ct gim chi ph n mc nh nht v nh bn v qua mng internet v khng phc v n trn chuyn may.

In an interview with Saigon Tiep Thi, Nam said the growth potential for low-cost air travel in Vietnam was high. By his own estimate, fewer than half a million Vietnamese have ever boarded a plane. Meanwhile, travelers on domestic air routes total about four million people. Pacific runs services between HCM City, Hanoi, Danang, Nha Trang and Hue. It has plans to lease more aircraft to serve its growing business. H d nh Tr li phng vn trn bo Si gn Tip Th, ng Nam n rng tim nng tng trng i vi du lch bng hng khng gi r Vit nam l rt cao. Theo c tnh ring ca ng c t hn na triu ngi Vit Nam tng i my bay. Trong khi , tng khch du lch trn tuyn hng khng ni a khong 4 triu lt ngi. Hng Pacific ang khai thc dch v bay gia cc thnh ph HCM, H Ni, Nng, Nha Trang v Hu. H d nh thu nhiu my bay p ng cng vic kinh doanh ang pht trin ny.

Takeoff - Bay ln

Despite the great potential of the low-cost air travel market, Vietnam lacks human resources and facilities for low-cost air carriers to take off and fly high. Pacifics Nam said the shortage was the biggest hurdle for any company wanting to establish a low-cost carrier in Vietnam. Mc d th trng hng khng gi r c tim nng to ln, nhng Vit Nam cn thiu ngun nhn lc v kh nng v vn ti hng khng gi r bay ln v bay cao. ng Nam, hng Pacific ni rng iu cn thiu ny ang l tr ngi ln nht cho bt k cng ty no mun thit lp ngnh vn ti hng khng gi r Vit Nam

Nam said training staff took a lot of time and money, so Pacific had to employ foreign pilots and a large number of engineers. Vietnam Airlines and Pacific must send their pilots for overseas training at a cost of US$100,000-200,000 each, as they cannot be trained in Vietnam, he told the Saigon Times Daily, the Weeklys sister publication. ng Nam ni vic o to nhn vin cn nhiu tin bc v thi gian, v vy hng Pacific thu phi cng v mt s lng ln cc k s ngi nc ngoi. "Hng Hng khng dn dng Vit Nam v hng Pacific phi a cc phi cng i o to nc ngoi chi ph ln n 100.000 USD n 200.000 USD cho mi ln, bi v h khng th o to Vit Nam c" ng Nam tr li Saigon Times Daily, the Weeklys sister publication nh vy

He stressed that pilot training was a must as a budget airline would be at a disadvantage if all of its pilots were foreigners. Therefore, Pacific plans to send its staff overseas for pilot training in two years. ng nhn mnh rng vic o to phi cng l mt nhu cu cn thit bi v hng khng gi r s phi bt li nu mi phi cng u l ngi nc ngoi. V vy hng Pacific c k hoch gi cc nhn vin i nc ngoi o to phi cng thi hn 2 nm.

Specific airport facilities for budget airlines are also an important factor for the development of the lowcost air travel market, as they help the airlines cut costs and implement procedures quickly. In Malaysia, the government has built such facilities at Kuala Lumpur International Airport, which was opened in March 2006. Singapores Changi International Airport also has a similar airport center. However, Vietnam does not have any airport facilities for this purpose. Aware of this issue, the State Capital Investment Corp., a State investment arm, has sought Government approval to upgrade Gia Lam Airport in Hanoi as an airport for domestic and regional budget flights and air taxis. Nhng trang thit b c th cho sn gi r cng l mt nhn t quan trng cho vic pht trin th trng du lch hng khng gi r, bi v chng gip ngnh hng khng ct gim chi ph v th tc c thc hin nhanh chng. Malaysia, Chnh ph xy dng nhng trang thit b nh th ti sn bay quc t Kuala Lumpur c hot ng hi thng 3/2006. Sn bay quc t Changi Singapore cng xy dng mt trung tm tng t. Tuy nhin, Vit Nam khng c nhng trang thit b cho sn bay phc v theo mc ch ny. nh gi c vn ny, tp on u t vn ca Nh nc, mt chi nhnh u t ca nh nc trnh ln Chnh ph xin nng cp sn bay Gia Lm H Ni thnh mt sn bay thc hin cc dch v bay ni a v gi r trong vng v ta-xi hng khng.

It is expected that when adequate facilities and the right human resources for the low-cost air travel market are in place, the aviation market in Vietnam can achieve steady growth. Airlines and booking agents are looking to an explosive rate of 30% or higher this year against 15% last year. Nam is even more optimistic, as he expects the aviation market will soar 40-50% this and next year, based on the 40% growth Pacific gained in the first half of 2007 c tnh khi cc trang thit b y v ngun nhn lc p ng yu cu cho th trng du lch hng khng gi r, th th trng hng khng Vit Nam c th t tng trng n nh. Cc hng hng khng v cc i l bn v ang mong i mt l l 30% hoc cao hn nm nay 15 % so vi nm ri. Thm ch ng Nam cn ch quan hn, khi ng cho rng th trng hng khng s tng ln 40%-50% nm nay v nm ti, cn c vo tng trng t c ca Pacific trong 6 thng u nm 2007.