Workers facing massive job losses in southern Vietnam

Wed, November 19th, 2008

Most textile and garment, footwear enterprises who are doing sub-contracts for foreign customers are facing difficulties. Due to unstable orders and having to pay for workers retention, factories had to close down. An FDI garment factory said their products were not selling because of the American economic recession. One sport shoes processing company, which has nearly 10,000 workers in Cu Chi district, said orders to companies are being decreased 20-30% in 2009.

PCI execs admit bribery over ODA in Vietnam

Mon, November 17th, 2008

Prosecutors claimed that PCI pledged bribes totaling US$ 2.6 million, about 10% of the contract value, in exchange for favors in awarding consulting contracts to PCI in connection with road construction projects in the city. The executives allegedly provided a total of US$ 650,000 in bribes in January and July of 2002, and continued to pay bribes thereafter. The prosecutors read oral statements they took from former PCI President in which he admitted PCI repeatedly bribed foreign government officials in other instances, in addition to the Ho Chi Minh City case.

As factories close, Chinese workers suffer, but factories in Vietnam could benefit

Sun, November 16th, 2008

The slowdown in China's exports contributed to the closing of at least 67,000 factories across China in the first half of the year, according to government statistics. Soon the labor-intensive factories churning out low-end products could disappear from southern China, and foreign companies could contract with similar factories in Vietnam and other countries where costs are lower.

Korean firms in HCMC told to improve labor relations

Sun, November 16th, 2008

Over the past 13 years, there have been 437 work stoppages at South Korean firms and 566 at Taiwanese companies, at southern provinces and cities, particularly in HCMC. Recently, many South Korean firms have also made headlines for owing billions of dong to local social insurance agencies, the organizations entrusted to collect workers; contributions for their retirement funds. Up until the end of September, 87 South Korean-invested businesses in HCMC owed the municipal Social Insurance Agency contributions totaling some VND42 billion (US $ 2.5 million), the city's Department of Labor, War Invalids and Social Affairs reported.

Death penalty should remain for bribery, corruption, say National Assembly legislators

Sun, November 9th, 2008

"It is necessary to retain death sentences for embezzlement and bribery to prevent people from engaging in the crimes, as our fight against corruption is now very fierce," representative Nguyen Dang Trung, Chairman of the Ho Chi Minh City's Bar Association, said at the discussion.

Profit no excuse for toxic water supply in Ho Chi Minh City

Sun, November 9th, 2008

Saigon River, the main source of water for residents in Ho Chi Minh City’s outer districts, contains poisonous amounts of toxic chemicals, according to a research released in June by environment experts. The river supplies some 324 million liters of water to the Tan Hiep Water Company each day, which supplies 300 million liters of that water to more than one million people in the city’s outer districts.

Vietnam firm plans $ 400 mlllion fund for property

Sun, November 9th, 2008

Vietnam became a popular emerging market for investors when the country joined the World Trade Organisation in late 2006, and local fund managers such as VinaCapital and rival IndoChina Capital thrived. But sentiment soured this year as inflation soared to 27.9 percent in September, partly because of a gaping trade deficit that threatens to turn into a balance of payments crisis if inward investment slows.

VND at 17,000 as offshore 12-month forward contracts at 20,000 VND/$

Sun, November 9th, 2008

"This adjustment is aimed at promoting exports and controlling the trade deficit," the Lao Dong newspaper said, quoting Nguyen Phuoc Thanh, CEO of Vietcombank, the country's top bank for foreign trade. Offshore non-deliverable forwards expected the dong to fall nearly 20 percent against the dollar from Friday's mid-point in the coming year, with 12-month contracts at 19,500/20,500.

Vietnam needs US$ 48 billion to develop highways, funding from World Bank, ADB, JICA

Sun, November 9th, 2008

The World Bank (WB) Acting Country Director in Vietnam Martin Rama pledged to increase levels of assistance to Vietnam in developing its transport infrastructure and to mobilise all available investment resources and sharing experiences related to forming sustainable management and financial mechanisms.

"Vietnam fully and seriously observes WTO admission commitments" - Deputy PM

Sun, November 9th, 2008

"During the past two years, generally speaking, Vietnam has fully and seriously observed its commitments for WTO admission, including commitment on opening the domestic goods and services market, as well as multilateral commitments on complying to WTO regulations," said Deputy PM and Minister of Foreign Affairs Pham Gia Khiem.

Flood-hit Vietnam on storm alert, coffee at risk

Sat, November 8th, 2008

Rain during the coffee harvest could halt the process, expected to peak late next week, and may also prevent farmers from drying beans outdoors, thus delaying delivery to port.

Retracing the path toxic powder took to food in China

Sat, November 8th, 2008

How the same substance that had killed pets and was officially banned in China as an additive in food just last year wound up in baby formula and so many other food products is a story of desperate farmers, complicit chemical companies, and government officials who looked the other way. All were part of a system that allowed the network of melamine dealers to thrive. China's melamine trade is run by a criminal syndicate that has relied on chemical companies and underground laboratories for its supply.

Downturn Projected in Business Travel, International Travel

Sat, November 8th, 2008

The outlook for business travel is a 3.7 percent decline in volume projected for 2008 and another 2.7 percent decline forecasted for 2009. Companies are making decisions to scale back in the current environment and business travel is no exception. Business, meeting and convention travel volume is expected to begin to recover in 2010 (+2%).

U.S. unemployment rate reaches 14-year high

Sat, November 8th, 2008

The U.S. unemployment rate soared to a 14-year high in October, supporting economists' warnings that the current downturn will rival the worst recessions since the end of World War II. The economy contracted in the third quarter and is expected to shrink at an annual rate of up to 4% in the fourth. Businesses are cutting back sharply and household spending drops as their homes and savings lose value. In the 1981-82 recession, the worst since World War II, the unemployment rate peaked at 10.8%. It rose as high as 7.8% after the 1990-91 recession and topped out at 6.3% in the aftermath of the 2001 downturn.

U.S. retail sales worst in 30 years as consumers cut spending sharply

Sat, November 8th, 2008

Shoppers have cut purchases of discretionary items like clothes or computers and in some cases are carefully planning when they buy the most basic necessities. The crisis reduced spending even among the wealthy. Same-store sales fell 16.6% at upscale department store chain Saks Inc, 15.7% at Nordstrom, and 20% at Abercrombie & Fitch.

U.S. October auto sales slump, GM sales down 45%

Sat, November 8th, 2008

Falling consumer confidence and the worsening credit crunch kept buyers away from showrooms in the "worst October." "There is considerable pent-up demand from the last three years, but until the credit markets open up and consumer confidence improves, the entire U.S. economy - and any industry like autos that relies on financing - will suffer."

PCI admits to tax evasion for corrupt payments in Vietnam

Sat, November 8th, 2008

"PCI received orders in 2001 and 2003 from a Ho Chi Minh City office, known as PMU (the project management unit), for a highway construction project in the city and promised a PMU executive bribes totaling 2.6 million dollars (about 286 million yen). Based on the promise, PCI offered two bribes, 600,000 dollars in December 2003 and 540,000 dollars in September 2004, according to the prosecutors."

Japan's International Cooperation Bureau representatives visit Vietnam regarding alledged corruption

Sat, November 8th, 2008

Both Vietnamese and Japanese Governments viewed the PCI case as very serious. Japanese relevant organizations accused PCI and its four former leaders in connection with Japanese ODA projects in Vietnam.

India's outsourcing bubble is bursting

Thu, November 6th, 2008

The collapse of top US financial firms will cause a dramatic slowdown in hiring among outsourcing companies. The banking, financial services and insurance sectors account for 40 per cent of revenues for India's $ 52 billion outsourcing industry (as of 2007-2008).

Government targets economic downturn prevention

Mon, November 3rd, 2008

They discussed three groups of major solutions, which concentrate on the performance of monetary and fiscal policy to stabilize the macro economy, stepping up production and improving the quality of the economic growth, and boosting exports and ensuring the sufficient supply of necessary goods for production and the daily life.