3 companies, 1 individual banned in World Bank-financed projects

The World Bank announced Wednesday the debarment of three companies and one individual for sanctionable practices in projects financed by the bank in Vietnam and Indonesia.

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Kellogg Brown & Root Pty Ltd (KBR Pty) is banned for two years with conditional release following an investigation by the WB’s Integrity Vice Presidency (INT) into violations of the Consultant’s Guidelines under a WB-financed water supply project in Vietnam.

The announcement said KBR Pty, an Australian subsidiary of KBR, Inc., misrepresented the availability of key consultants during contract negotiation and execution, which resulted in KBR Pty being awarded the contract and led to delays in contract execution.

The WB said this settlement follows the debarment of another company, Social and Environmental Development Joint-Stock Company (SECO), and its Managing Director, Mr. Nguyen Xuan Doan, who were also involved in the same sector in Vietnam.

SECO engaged in a scheme to defraud the World Bank's client under a WB-financed water supply project and has been declared ineligible to participate in WB-financed projects for the next five years.

The WB also announced the debarment of Indonesian company PT Amythas Experts and Associates for a period of three years for fraudulent practices in relation to a WB-financed community development and poverty alleviation project.

The announcement said KBR Pty, PT Amythas Experts and Associates, and SECO cannot be awarded a contract, or otherwise participate in new activities under World Bank Group-financed or executed projects during the debarment period.

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Parboiled rice exports to increase

Vietnam hopes to increase export of parboiled rice by a third next year to 400,000 tonnes.

Rice loading at Saigon port (Source: VNA)

President of the Vietnam Food Association, Truong Thanh Phong, said production of parboiled rice would not only increase the diversity and quality of Vietnamese rice but also help farmers make the most of the summer-autumn wet rice crop.

This year’s planned exports of at least 300,000 tonnes would meet 10 percent of annual global demand for the variety.

Parboiled rice refers to paddy boiled in the husk and is favoured by many people for its nutritional value.

In some countries, especially in areas with people with high incomes, parboiled rice is increasingly replacing white rice.

Phong said parboiled rice fetches a USD50-60 higher export price per tonne than 5 percent broken white rice.

Parboiled rice from Vietnam , the world’s second largest rice exporter after Thailand , was exported to countries in East Europe, Africa, and Asia at USD570 on average, Nguyen Ngoc Trung, general director of Vinh Phat Investment Corporation, which exported 42,000 tonnes this year, said.

Experts say the quality of Vietnamese parboiled rice is quite high, which gives it a competitive advantage over regional rivals such as India and Pakistan.

The Vietnam Southern Food Corporation will soon complete construction of three more plants to parboil rice for exports. They will be operational next year, producing 300,000 tonnes a year, while the rest of the export target will be made up by private producers.

The country started exporting parboiled rice last year, shipping more than 10,000 tonnes. But despite the fact that this kind of rice fetches a higher price, Vietnamese producers are hesitant about investing in this field.

An executive from a Mekong Delta-based rice firm attributed this to the higher amount of investment required than for processing white rice.

But grabbing market share from top exporter Thailand and others was the main challenge for Vietnamese producers, the executive said.

The summer-autumn crop is usually harvested during the storm season, and if Vietnam captures at least 30 percent of the international market share, farmers will be less worried about their harvest.

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Transport Ministry to inspect taxi firms at Tan Son Nhat Airport

The Ministry of Transport has demanded an inspection of 11 taxi firms operating at Tan Son Nhat International Airport.

The Ministry of Transport has demanded an inspection of 11 taxi firms operating at Tan Son Nhat International Airport.

The firms include Airport Taxi, Sai Gon Tour Taxi, Festival Taxi, Happy Taxi, Savico Taxi, Vinasun, Mai Linh, Phuong Trang, Hoang Long, Petrolimex and Vina taxi.

The inspection will focus on vehicle and driver registrations, ensure their fees are made public, quality of vehicles, parking lots, and regulations on selecting and training drivers.

On December 17, the taskforce will work with the Southern Airport Corporation and Tan Son Nhat Airport Operating Control Centre on the taxi firm check.

Many passengers have complained about overcharging and bad attitudes from taxi drivers at Tan Son Nhat International Airport.

The Ministry of Transport recently conducted checks on nine taxi companies in Ho Chi Minh City, suspending two for violating regulations. Earlier, the ministry also suspended the operations of Mua Xuan and Phu Gia taxi firms in Hanoi.

According to Sai Gon Tiep Thi Newspaper, while Ho Chi Minh City is restricting the expansion of its taxi fleet, taxi from other localities such as Dong Nai, Binh Duong, Khanh Hoa and Hanoi, are flocking to the city to fill the chasm.

Ta Long Hy, Chairman of the HCM City Taxi Association, said this had led to unfair competition between companies operating outside of HCM City and local firms.

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Ministry turns eyes to developing cocoa industry

The Ministry of Agriculture and Rural Development has set its sights on bringing 35,000 hectares under cocoa farming and increasing exports of the bean and other products to USD60 million by 2015.

In a report, which it released at the International Cocoa Conference held on Dec. 13 in Ben Tre Province , the ministry said the country now grew cocoa on a total of 20,100ha. The annual output of cocoa beans is 240 tonnes while exports are worth 520,000 USD, it said.

While 4,555ha are in the Central Highlands , by far the largest area under the crop is in the Mekong Delta – 12,115ha.

Delegates at the conference said with the area under cocoa in the country remaining tiny, the yield is low. Besides, the cocoa products are not of high quality since farmers consider it a subordinate crop after coconut, cashew, coffee, pepper, and fruits, they pointed out.

Only 2,300ha of cocoa is intensively cultivated, the report said.

Delegates recommended that modern technologies should be used for processing cocoa beans to achieve higher quality.

The ministry is seeking sustainable development of cocoa production and thus a gradual rather than sudden increase in the area under the crop.

It is developing plans for producing international standard cocoa in the country. Thus far in Vietnam , only 541ha have been certified by UTZ Kapel as meeting international standards in cultivation, harvesting, and post-harvest activities.

There are 12 UTZ certified co-operatives in several provinces like Dak Nong, Dak Lak, Binh Phuoc, Dong Nai, Tien Giang, and Ben Tre.

The delta provinces of Tien Giang and Ben Tre are developing organic cocoa cultivation.

The ministry said demand for certified Vietnamese cocoa products is rather high among international buyers.

Cargill Vietnam is the leading buyer of cocoa from farmers and processors in the Central Highlands and the delta.

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Vietnam plans bright future for solar energy

Despite boasting great potential for solar power development, Vietnam has just made little use of it due to a lack of a detailed roadmap and incentive policies.

Big initial investment hinders solar power development in Vietnam

A recent seminar on the issue, held by Vietnam Green Generation Network, Live & Learn Environmental Education, and the Rosa Luxemburg Institute Vietnam, concluded that the country urgently needed to address the issue.

Future energy sources

The development of renewable energy, including solar energy, is an indispensable trend if the country is to meet rising energy demands as a result of socioeconomic growth and the population boom.

Prof. Dang Dinh Thong, from Hanoi University of Technology's Institute of Engineering Physics, said there had been a global trend to diversify energy sources.

“Solar energy is environmentally friendly, almost entirely carbon dioxide gas emission-free, easy to install and can operate everywhere,” Thong shared.

By early 2011, global solar power output reached 40,000 MW. Of that figure, 16,600 MW were installed in 2010 with Germany contributing half the total.

The world’s solar power generation capacity in 2010 represented half of Vietnam’s annual power demand, he noted.

Over the past five years, solar power capacity has increased by 50% per annum thanks to research development efforts, industry support and Feed-In Tariff (FIT) prices for renewable energy.

According to Thong, in Vietnam, solar energy potential can be spread across the country, areas ranging from the central city of Danang, southwards boasting the potential to produce 140-175kcal per square centimetre per year.

Do Duc Tuong, head of DEVI-Renewable Energies, a renewable energy development institute, said Germany was leading the world in solar cell installation technology. The country was the first to issue a Renewable Energy Act or EEG that has fostered renewable energy industry development.

Germany’s solar energy capacity increased from 1,800 MW in 2008 to 3,800 MW in 2009 and 7,400 MW in 2010.

The country has issued new price lists for solar power and renewable energy in general, which will become effective from January 2012 with prices decreasing by 9% per year.

Big initial investment

Thong shared that in Western countries, a solar energy system costs from USD8,000-USD10,000 per kilowatt-peak (kWp) with a solar cell module costing between USD4,000 and USD5,000 per kWp. The initial investment is rather high compared to other energy sources such as coal, oil and gas, and hydropower, which hinders solar energy development in Vietnam.

Tuong explained that Germany can develop solar power very quickly as it has a clear development roadmap. The German Government also offers incentives to foster the domestic installation of solar power with long-term support.

“They encourage people to develop renewable energy, including solar power, and to connect it to the national power grid. If households consume less than the power capacity they connected to the national grid, the government will pay them at higher rate than the national average power price. Otherwise, if they use more than what they produce, they will be charged at a government-supported rate,” Tuong clarified.

Vietnam’s total solar power capacity to date is estimated at from 1.6-1.8 megawatt peak (MWp). Of the figure, between 25% and 30% is installed at households, 35% developed by the telecommunications industry and 35% by the waterway traffic industry.

Separate solar cell systems are installed at households in mountainous and remote areas.

Systems that combine solar cells with diesel-fuelled power generation sources, or with hydropower sources, or with wind energy sources or with battery sources are installed in some villages and communes with funding from the Vietnamese Government or international donors. The telecommunication industry also develops some hybrid solar panels.

Vietnam has installed a grid-connected solar panel system at the Ministry of Industry and Trade’s office.

A hybrid solar panel system was installed in the central province of Gia Lai with German funding, with another developed in Cu Lao Cham in the central province of Quang Nam funded by Sweden, Thong added.

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Vietnam among the top spenders for telecom in Southeast Asia

A recently released survey by Yahoo showed that Vietnam tops Southeast Asian countries in spending on mobile Internet services, with an average of USD24 per month.

Vietnam ranks second only to Malaysia in terms of internet access from mobile devices.

In Vietnam most internet users from mobile devices are men between the age of 15 and 24. Many of them use "smart phones" which can be bought for between VND2-4 million (USD95.2-190.47). The prices are quite low compared to the the services offered, including internet access and numerous applications.

David Jeffs, Head of Yahoo! Insights, said, “Currently, in Vietnam mobile internet users account for one-third of the country’s total internet users. We expect this rate to sharply increase in time to come, particularly in the cities of Danang and Can Tho.”

Another finding of the survey was that, while other Southeast Asian countries used access to the mobile internet to use social networking sites, in Vietnam it is mostly used for chat, email and searches.

Nokia is the most popular mobile phone used for mobile Internet services in Vietnam, accounting for 51% of the market share, followed by Samsung (16%), LG (7%), Apple (6%), Sony Ericsson (5%), Q-Mobile (4%) and Blackberry (3%).

Mobifone is the largest mobile internet service providers in Vietnam, holding 60% of the domestic market share. The runners-up are Viettel with 26%, Vinaphone (11%) and Vietnammobile (1%)

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