southeastasia newscollection - rosa-lux · 2019. 7. 4. · june 3 with a focus on accelerating...

S o u t h e a s t A s i a N e w s C o l l e c t i o n

Content

Content............................................................ 1

Vietnam ........................................................... 1

Economics ................................................... 1

Political Issues ............................................. 6

Social issues/ Domestic policies ................. 8

Environmental and Health issues .............. 10

Property market and land issues ............... 11

International cooperation .......................... 11

Cambodia ...................................................... 14

Laos ............................................................... 15

Myanmar ....................................................... 16

Contact .......................................................... 17

Disclaimer ..................................................... 17

Vietnam

Economics

Economic reform: Collective sector asked to improve

A mid-term business forum was held by Vi-etnam Business Forum (VBF) in Hanoi on June 3 with a focus on accelerating economic reform to facilitate business operations. This is a good chance for the Government officials, domestic and foreign businesses, donors and diplomatic corps to examine ways to improve Vietnam’s business climate. Experts say there is an increasing concern that the country will lag behind other countries unless its investment environment, adding that if Vietnam does not create a better investment climate, its FDI will keep falling. Last year, VBF warned that Vietnamese products faced the highly competitive advances from Myanmar, especially those of garments, footwear and decorations. Meanwhile, busi-nesses have expressed concerns about the slowness in equitizing and restructuring State-owned enterprises (SOEs), proposing to complete a legal framework on the Public-Private Partnership (PPP) model. Businesses have also affirmed that it is cumbersome administrative procedures that attribute to hindering investment attraction efforts, noting that it is time to act to support investors. Last week, the European Chamber of Commerce in Vietnam (EuroCham) announced its

Vietnam’s business climate index (BCI), say-ing business confidence and outlook among European firms in the nation has continued to improve. According to Eurocham, this is a healthy sign to demonstrate that European businesses are slowly regaining trust in the Vietnamese market. Other issues have also attracted public attention is the efficiency of the collective sector in the national economy. In this week, the Secretariat of the Com-munist Party of Vietnam (CPV) held a confer-ence in Hanoi to review 10-year implementa-tion of the 9th CPV's 5th plenum Resolution on continuing to innovate, develop and improve the efficiency of the collective economy. Though experts say cooperatives are an in-dispensable part of the economy, creating jobs, raising living standards and making im-portant contributions to ensuring social wel-fare, the collective economic sector has not yet overcome its weaknesses and has still recorded a slow growth rate and low contri-butions to the GDP. (VOV, Vneconomy, Laodong 3; Laodong, Vietnamnet, Nhandan 7)

Targeting economic growth: A focus of bad debts

Experts say it is still hard job to target econo-mic growth of about 5-5.3% for 2013 unless bad debts and enterprises’ weaknesses are addressed. Last week, the Vietnam annual economic report 2013 (VAER) named “On the bumpy road to future”, released by Vietnam Centre for Economic and Policy Research (VEPR) has affirmed that it shall be hard for the economy to reach the above-mentioned target – the level which is lower than what set by the Government - without strong commit-ments and implementation of policies on economic restructuring and growth model changing. According to experts, it is needed to solve ten of billions of US dollar of non-performing loans (NPLs) and revitalize strugg-ling firms. Statistically, the NPL rate was re-ported at 6% as of late Feb. 2013 and would be increasing rapidly without appropriate solutions. Experts assume if NPLs doubled from the current level, bank capital would be severely affected – then capital adequacy could be reduced by half from the current one. Meanwhile, the VAER 2013 has noted, it takes 10 years to solve NPLs in Vietnam rather than 3 years as expected by the Government. In the context that the number of firms with suspended operations and bank-ruptcy has hit 120,000, low demand has been

SOUTHEAST ASIA NEWS COLLECTION 03 June to 09 June, 2013

2

a cause behind the report forecasting inflation for 2013 to be 4.95%, the Government will need to harmonize policies to tame inflation and boost growth. According to the National Financial Supervisory Committee, there is a possibility of another rate cut of 0.5% in Q313 if the authorities remain comfortable with the inflation outlook and credit growth stays ana-emic. It is also forecast that the State Bank of Vietnam shall be likely to reduce the cap on the deposit rate further if it judges the recovery in business activity is too slow. Ac-cording to a Standard Chartered report on Vietnam’s economy released recently, though high interest rates is the key hurdle to Viet-nam’s economic recovery, accelerating the pace of structural reforms including in the banking and state-owned enterprise sectors and reviving the property market are more important than monetary easing to boost business activity and boost growth momen-tum. In the meantime, the report has also noted the Government’s approval of the Asset Management Corp to buy financial institutions’ bad debts represents progress. However, the AMC’s limited capital base of VND 500 billion has raised doubts about the efficacy of the program; its establishment is an important signal to the market that the Government is serious about the reform process. (VIR, Vneconomy, VTV, Vietnamnet 4)

HSBC cuts down GDP outlook despite of consumer confidence index up

HSBC in the latest report released on May 3 has just cut down its forecast for Vietnam’s GDP growth in 2013 5.1% from the previous 5.1%. Accordingly, the less optimistic predic-tion is due to soft global commodity prices, which have weighed on agriculture and ener-gy exports, and sluggish credit growth. Meanwhile, the national economy continues facing weak domestic demand, with manufacturing PMI contracted in May, retail sales dragged down, CPI slowly increased. Accordingly, growth is still resilient at about 5%; recovery process is very uncertain and has proved to be more sluggish than anticipated. However, the registered FDI print shows the country remains competitive with more inflows attracted. Statistically, the total FDI registered capital had surged to $5.1 billion (up 23.5% y-o-y) as of late May. Ac-cording to experts, most of the capital has been channeled into the manufacturing sector, providing employment and investment in times of fiscal and monetary austerity and weak domestic demand. In the meantime, a

market research firm, Nielsen has recently released the latest report on Vietnam’s consumer confidence (CCI) index with figure touching 96 points in Q113, an 8 point rise against Q412 and 2 points higher y-o-y. Ac-cordingly, a large number of local consumers are optimistic about Q113’s job market with 39% of positive outlook against Q412’s 34% but lower than Q112’s 50% and the regional average’s 61%. Also, 33% of online customers said this December shall be conducive to furniture purchase (up 4% against Q412 and 7% against Q112). Number of people planning to invest in securities jumped a significant 5%. Saving has remained the dominant Vietnamese consumer trend, in which as many as 71% of those surveyed reported planning monthly savings after essential expenses. However, local consumers were mostly concerned about economic performance, job security, health, the cost of living, and rising food prices. (Vne-conomy 4-5; VNA, Dangcongsan, Vef, Cafef 4; Tuoi-tre, Laodong, Thanhnien, Vietnamnet 5)

Exports see a rise of 15% in 1st 5 months

Export turnover hit $49.9 billion in the 1st 5 months (up 15.1% y-o-y). In May alone, overseas shipment revenue reached $10.8 billion, up by 7.6% against April and 11.8% y-o-y. Accordingly, state-owned firms posted a 2.1% export growth, while FDI sector was reported a rise of 23.3% in export revenue, including crude oil. In the meantime, Vietnam saw import values totaled $12 billion in May (up 9.4% against last month and 16% y-o-y), bringing the total imports in the 1st 5 months to reach $ 51.9 billion (up 16.8% y-o-y). Thus, trade deficit was estimated at VND1.2 billion in May and $1.9 billion in Jan-May period (equivalent to 11.1%and 3.9% of the total export revenues respectively). (Chinhphu, Vne-conomy, VIR 5)

Bad debts seen in other mirrors

Total non-performing loans (NPLs) in local credit card debt have reached about VND2 trillion ($96 million), as many as two times of 2012. The State Bank of Vietnam warned that it is an alarming rate as the NPLs in local credit card debt is equal to 1% of the country’s total bad debt. Statistically, some 20 million credit cards have been issued in HCMC alone – meaning 2-3 cards for each cardholder averagely. Experts say the current economic context has an impact on consumer loans in the form of credit card debt repayment. The customer’s solvency


3

gets worse because their income is reduced. In principle, the use of credit card will be suspended if the customer fails to repay the minimum payment for 2 consecutive monthly announcements in account statement from the bank. In recent years, the race to issue credit cards between local banks has led to the bitter reality, making many banks turned a blind eye to some mandatory conditions in financial viability for customers. Eventually, many customers have chosen to withdraw the money directly from their credit card accounts to pay the wages of their employees and repay the interests of their bank loans to the loss of 6-7% of annual interest rate payment for cash withdrawal to the issuing banks. In another development, police in Binh Duong prevented employees of 7 banks from taking goods from a local firm named Truong Ngan as a measure to partly recover outstanding debts. Actually, the firm has yet to repay debts totaling about VND600 billion ($29 million) to Military Bank, VIB, Oricombank, Vietnam Bank for Agriculture and Rural Development, Maritime Bank, Vietinbank and Techcombank; while the value of the 3,000 tons of coffee in the firm’s store was estimated at only VND100 billion. The incident has raised a question of the bad situ-ation facing many firms amid hard difficulties. (VTV, Vneconomy, VIR, Tuoitre 7, 9; Laodong, VTV, Thanhnien 9)

Efforts needed to carefully check big-scaled foreign invested projects

The latest report released by the the Ministry of Planning and Investment (MPI) shows that investors have poured more capital into the projects being implemented in addition to new projects. Concretely, there have been so far 160 FDI projects raising investment capital, totaling more than $3.4 billion (up 14% y-o-y and higher than the average rate of 9% of the country. A major contribution of FDI increase is the Japanese investor’s contribution $2.8 billion in the Nghi Son oil refinery project in Thanh Hoa. Many projects in the fields of energy and raw materials are also being targeted by foreign investors expansion plans. Though FDI projects increas-ing capital help bring billions of US dollars, experts feel concerned about the licensing of these as they may change the master plan. For instance, the nation has some 4-5 petrochemical projects awaiting permission or being implemented alongside the Dung Quat oil refinery, so it is needed to be cautious in allowing these to increase capacity to avoid

affecting domestic market’s supply-demand. The most recent project waits for permission is the $27-billion petrochemical project in Binh Dinh. In May, the MPI said one of the reasons has made the low quality of FDI inflows was the competition among provinces in attracting FDI, of which some provinces license projects causing environmental pollution, using and exploiting natural resources inefficiently. It is advised that the MPI should promote some changes in investment licensing process, by which provinces will send FDI projects to the MPI for consideration before sending to the Government for approval. (Vietnamnet, Vef, Laodong, Thanhnien, Tuoire, Saigontimes 9)

Tourism sector takes action against weakness to enhance service quality

On June 8, int’l Sea and Island Tourism Fair 2013 - the 1st of its kind in Vietnam opens in Nha Trang city of the central province of Khanh Hoa, which has attracted many int’l tourism businesses. Also, a special workshop of the Association of Southeast Asian Nations (ASEAN) Tourism Marketing Task Force will be held during the three-day fair; while 2 seminars on sea travel and tourism product development will also take place on this occasion. Though there are many potential for the country’s tourism industry development, it is advised that tourism sector must find solutions to deal with several problems in the industry so as to improve the country’s attractiveness. The Government on Jun. 6 has pointed out 7 problems that desperately need improving, including lax management, lack of responsibility by managers, insufficient warning information for tourists, lack of long-term strategies for tourism services, price gouging and cheating, robbery, and overcrowding at several tourists sites nation-wide. The Government has also urged rele-vant bodies to find out drastic measures to improve the situation, including even putting up cameras at major airports so as to better control taxi operations for instance. Mean-while, the Ministry of Culture, Sports and Tourism are required to continue efforts to work out a new slogan for the country’s tourism industry with due attention paid to hospitality while submiting to Prime Minister for approval an instructive to intensify tourism safety and security before mid-June. In the meantime, the Hanoi Taxi Association has set up a hotline to deal with complaints about dishonest taxis drivers in response to increasing number of taxis swindles; while the


4

Hanoi Toursim Department plans to launch hotlines in a bid to detect and deal with any crime against tourists. Earlier, the municipal tourism sector discovered tourists had been the target of theft, fraud and overcharging, which has blacken the image of the capital city in the eyes of foreigners. In April, a taxi driver, which charged an Australian couple nearly VND1 million for a 7km ride in Hanoi was fined VND20 million, had his labor con-tract terminated, and forced to return the money. Experts suggest Vietnam setting up a tourism police force to better protect its for-eigner and domestic tourists, noting that many other neighboring nations including Thailand, Laos, Cambodia, and Singapore have already established such forces to ex-perts. Actually, the country’s tourism image has been influenced by street vendors and beggars, crimes, and rip-offs at hotels and restaurants. In Ho Chi Minh City, the authori-ties have set up a unit to protect tourists, but this force needs strengthening as the number of int’l arrivals is on the rise, while even more cases in which tourists robbed or ripped off have been reported. (Tuoitre 7, 9; Dantri, Chinhphu 9; VTV 8; VNA 4, 8)

United efforts to go against US wrong decision on shrimp levy

Vietnamese shrimp processors and exporters are working with relevant agencies, lawyers and shrimp breeders to fight back the US Department of Commerce (DOC)’s recent levy of anti-subsidy duty on frozen warm-water shrimp imported from Vietnam, with rates of 5.08- 7.05% imposed. According to the Vietnam Association of Seafood Exporters and Processors (VASEP), once the decision takes effect, Vietnam’s shrimp exports will face both anti-dumping and anti-subsidy tariffs, making it harder for exporters to survive in the US market where their products make up a big share, noting that the move will also adversely affect 600,000 shrimp farmers and workers nationwide. Though the DOC is scheduled to make its final decision on the issue on August 10, VASEP at its press conference held on May 31 protested the DOC’s move, calling it unfair and asking for its reconsideration of the deci-sion. Meanwhile, Vietnamese exporters have described the US DOC’s move as absolutely unreasonable with no persuasive factual evi-dence. Vietnamese firms have said they shall continue fighting the decision by campaign-ing for more reasonable duty rates. In another development, Vietnam has succeeded in ex-

panding its market, with 203 seafood proces-sors licensed by the National Food Safety and Quality Service of Argentina (Senasa) to ex-port to the country. In Aug. 2012, Senasa released a warning on food safety for Viet-namese seafood processors following a fact-finding trip to Vietnam. Since 2010, Argentina has emerged as Vietnam’s 4th largest trading partner in South America. Argentina will be one of the most potential markets for Viet-namese enterprises to boost their exports, especially frozen seafood in the years to come. (Nguoilaodong, VTV, VNA, Dantri, Vnexpress 8; VOV, Chinhphu, Dantri 5)

Policies to fight against foreign manipula-tion

The Circular 08/2013/TT-BCT issued by the Ministry of Industry and Trade, which takes effect on June 7 with the aim to prevent foreign-invested enterprises (FIEs) from manipulating the local market. Accordingly, FIEs licensed for export can only buy agricultural products from local traders but are banned from buying directly from local farmers and also banned from organizing commodity purchasing networks in Vietnam for export. According to the Ministry of Agriculture and Rural Development (MARD), in the field of animal feed production, FIEs make up 70% of the local market share, of which CP Livestock Joint Stock Co is holding 40, 50, and 18-20% of the local market share of chicken, chicken eggs and animal feed, respectively; while there are 12 FIEs buying and exporting 50-60% of the total coffee production of Vietnam in the central high-lands. In the pepper industry, purchasing and export by FIEs made up for 37% of total national exports in 2012. Analysts say that many FIEs are trying to evade the law by simply paying the high price to reap a harvest from farmers, while the law states they have to invest in establishing farming areas for that. In the meantime, many local firms, which have to obey the law, have invested a lot, from seed to agricultural materials in farmers, but receive nothing as the farmers turn their back on them after the harvest and sell to FIEs. Additionally, the competition of farm produce purchases between FIEs and foreign traders has affected the planning of raw material zone and processing clusters. Yet, experts warn that the new circular may discourage FIEs from investing in local agricultural infrastructures and ink off-take agreement with local farmers. For instance, some 30 FIEs are cooperating with the MARD


5

in realizing the national public-private partnership program, setting up infrastructure for agricultural productions, investing in seed, technical training for farmers, and supporting their access to quality certification. Some FIEs express the Circular goes against market rules, and creates monopolies for local firms in agricultural raw materials purchasing, thus disabling local farmers from selling their products at market prices, he said. It is ad-vised that the crux of the current problem is the lax relationship between corporate purchasers, processors and exporters with farmers, noting that in the chain of profit distribution, the farmers directly receive a very small proportion of the interest compared to the exporters while in the long run, domestic firms have to set up close links with farmers towards sustainable production and consumption. On the other hand, the majority of FIEs dominate the market thanks to strong capital and human resources, which help to increase market competitiveness; so the state should encourage and support oriented business investment in the agricultural sector on the basis of harmony of interests between domestic firms, FIEs and farmers. Earlier, new regulation of the southern province of Vinh Long stapulates that Chinese traders should register with local authorities if they want to buy sweet potatoes from farmers. Chinese traders have traditionally purchased purple sweet potatoes from farmers to export to China in recent years first with high pay but then ceased purchase - leaving farmers with huge losses. (Vneconomy, VTV, Tuoitre, VIR, Vef 4)

Plan for agricultural restructuring debated

A conference was held by the Ministry of Agriculture and Rural Development (MARD) to discuss the plan for restructuring agriculture to increase the sector’s value and foster its sustainable development. Since the country first adopted economic reforms over 25 years ago, agriculture has played a significant role in ensuring food security and creating jobs for 70% of the population, the drive to reduce poverty and promote national economic development. Yet the growth is primarily driven by increases in the area under cultivation and number of crops yearly, not technological advances; while agricultural production has also negatively impacted environment by reducing biodiversity, depleting natural resources and causing water pollution. It is advised that the agricultural sector needs to reform in order to improve people’s lives, protect the environment and

add more value to agricultural products. Agricultural output has been on the rise since 2000 but its share of GDP fell from 24.5% in 2000 to 21.6% in 2012. In another develop-ment, the State Bank of Vietnam has been urged to consider increasing credit quota to farming households. At a conference was held in Hanoi on Jun. 8 to seek solutions to difficulties facing rice production, animal husbandry and fishery sectors, it is advised that financial assistance is needed to help farmers to maintain production. Also, relevant bodies have been asked to seriously implement the Prime Minister’s decision on purchasing 1 million tonnes of rice for stockpiling in a bid to stimulate the market demands and ensure profits for rice far-mers. MARD says weakening demands and the downward trend in price are affecting rice exports of all major rice export countries. For Vietnam, it exported 2.79 million tonnes of rice (up 1.14% in volume in the 1st 5 months) but the total rice inventories amounted to 1.7 million tones - putting pressures on the domestic rice price. Also, lower purchasing power as a result of the economic crisis and rising input costs have eaten into farmers’ profits; while hard access to capital plus high interest rate are posing more problems. (VTV, VNA 9; Vneconomy 7; Vietnamnet, Tuoitre, Thanhnien 6, 8; Laodong 6)

EU- Vietnam trade cooperation looked

The EC’s Trade Representative has informed that they shall on Jun. 11 unveil the Trade Sustainability Impact Assessment (TSIA) for the EU-Vietnam Free Trade Agreement (E-VFTA) and report an update of the 3rd round of EVFTA negotiations occurred recently. A preliminary report on the TSIA shows the agreement will greatly benefit Vietnam but it will force the country to transform the nation-al economy towards opening more to int’l trade. Meanwhile, the Vietnamese Foreign Ministry and the EU delegation to Vietnam on Jun. 4 held a seminar to launch the Vietnam–EU Strategic Dialogue Facility as part of the Vietnam–EU Partnership and Cooperation Agreement (PCA) with the aim to help Vi-etnam realize other cooperation activities within the PCA. Accordingly, the PCA signed in Jun. 2012 meets the demand on a new legal framework, and is a manifestation of the rapidly increasing and dynamic relations be-tween Vietnam and the EU, marking a mile-stone in the development of ties towards equality and comprehensive coopera-tion. Actually, the implementation of the


6

2011-2012 PCA has successfully concluded, and the two sides are now discussing the 2013-2014 stage. In the meantime, the EU representatives also announced the launch of the Vietnam–EU Strategic Dialogue and relat-ed activities to run in 2013. Accordingly, the EU delegation to Vietnam will provide 2.9 million EUR over 2013-16 with a focus on policy related research, technological support, organizing seminars and training courses. The two-way trade between the two sides in 2012 exceeded $29 billion (up nearly 20% y-o-y) and EU nations are among the leading inves-tors in Vietnam. By late Mar. 2013, 22 of the 27 EU members invested in 1,299 valid pro-jects in Vietnam with registered capital worth $17 billion. In another development, the Eu-ropean Chamber of Commerce (EuroCham) has prepared for the launch of Green-Biz 2013 – European green business solutions for Vi-etnam, focusing on key sectors of green pro-duction and consumption with a spotlight on food and health, and resource management focusing on energy and waste-treatment, and green education and green mindset. Through the past events, Green-Biz has attracted spe-cial attention of many relevant bodies and businessmen, hoping that the event will bring more investment, business and information exchange opportunities between Vietnamese and European businesses. The Green-Biz 2013 Expo will feature thematic zones, thus companies exhibiting can target their buyer groups. (QDND 5,9; Chinhphu, Daidoanket, VNA 5; VOV, Vietnamnet, Thanhnien, Nhandan 9)

Policy to help stock market more liquidity from foreign investors

Foreigners might be allowed to own bigger stakes in listed firms in the time to come. A draft regulation has been under discussion to boost the country's stock markets, including the above-mentioned proposal offered to foreign investors. Accordingly, the regulation aims to encourage more foreign inflows into Vietnamese bourses; while the plan raising the 49% foreign shareholding limit by 10% shall help lift the benchmark VN Index. A slowing economy hamstrung by banks laden with bad debts and uncertainty about the Government's ability to tackle structural problems are the main reasons for the exchange's allure. Experts say this is a good policy and it shall help the market with more liquidity from foreign investors, bringing more foreign capital. According to Reuters, the additional stakes made available to foreigners shall be restricted to non-voting shares, which

some traders say might dampen enthusiasm. Some foreign investors has pointed out that the move is not strong enough for them to put money in for the long term. VN Index and Hanoi Stock Exchange Index have a combined market capitalization of almost $45 billion against $420 billion in Thailand. The Vietnam State Committee of Stock say anoth-er plan is under debate for merging the country's two bourses. (Vneconomy, Thanhnien, Cafef, Vef 8)

Political Issues

5th session of the National Assembly (NA)XIII

The National Assembly XIII’s on-going 5th session has been in live televisized debates on a number of the important issues, including the 1992 Constitution draft amendments, draft laws such as amendments and supplements to a number of articles of the Law on Emulation and Reward, amendments and supplements to some articles of the Residence Law, and the draft Law on Employment; votes of confidence on persons holding positions elected or approved by the NA to be cast on June 10; Government’s bonds on construction projects. Also 1 deputy prime minister, 4 ministers and the head of the Supreme People’s Procuracy shall answer deputies’ questions about pressing issues of voter concern. The hearing will begin on 12 Jun. 2013. (VOV, VNA, Tuoitre, QDND, Daidoanket, Dangcongsan 8)

Deputies debate the revised Constitution: No change to country’s name and Party’s role A recent report by the NA Standing Committee indicates individuals and organizations abroad and at home have contributed over 26 million comments on 1992 Constitution draft amendments since the poll was launched in Jan. 2013 in line with Resolution 38/2012/QH13 adopted by the NA earlier. A majority of NA deputies suggested keeping the country’s name unchanged as the Socialist Republic of Vietnam, which has been in place since Jul. 1976 and enshrined in the 1980 and 1992 Constitutions. This is to continuously affirm the goal and path of building and developing the socialist-oriented country. However, some opinions say the Socialist Republic of Vietnam should be changed into the former name of the country in 1945 as the Democratic Republic of Vietnam. explaining that this name is closely connected with the birth of the first


7

republican regime in Vietnam and that it was officially stated in the Declaration of Independence read by President Ho Chi Minh on Sept. 2, 1945 and that the name affirms a reality in which the country’s political regime is republican and the State of Vietnam’s nature is democratic. Meanwhile, deputies also agreed to the role of the Communist Party of Vietnam in its leadership over the country as stated in Article 4 of the Constitution. Most of deputies have affirmed it is undeniable that the great achievements gained by the nation in the past years have resulted from the sound leadership of the Party. For economic sectors, deputies have agreed that the definition of the nature of the economy plays a crucial role and is a decisive factor to the orientation of socialist state development in Vietnam, adding that the socialist-oriented economy aims to ensure every member of society enjoys economic benefits in a more equal and better manner. (Dangcongsan, Nhandan 4, 9; QDND, VOV 9; VNA, VTV 8-9; Dantri, Vnexpress, Vietnamnet, Tuoitre 4)

Draft laws continued being tabled for debates Deputies continued debating some draft laws at their plenary session in this week. Con-cretely, a report on the draft law on amendments and supplements to a number of articles of the Law on Emulation and Reward (LER) was delivered by the Home Ministry before discussion. Accordingly, in the eight years since it was implemented, the LER has produced significant changes in various campaigns to encourage officials, soldiers and the public to realize their socio-economic tasks and enhance national defence, security and external affairs; but the current law defines a wide range of subjects and general commendation criteria overlap-ping in and requiring appropriate amend-ments and supplements. For the draft law on amendments and supplements to some articles of the Residence Law (LR), opinions focus on activities that should be banned, conditions for permanent residence registration in centrally-governed cities and validity term of temporary residence register. Concretely, most of the deputies agreed with the need to amend and supplement several articles of the LR but some deputies were concerned the draft amendments and sup-plements do not cover all situations related to managing residence issues, suggesting the current regulations for 2-year temporary resi-dence should be maintained to avoid further

administrative procedures for residents wish-ing to extend their stay. Lawmakers also debated in groups the draft Law on Employment (Dangcongsan, Nhandan, QDND, VOV, VTV 9; VNA 8, 9)

Deputies discuss Government bonds for construction Deputies at their Jun. 7 plenary sitting of the ongoing session debated the results of supervising the implementation of the Law on Thrift Practice and Wastefulness Prevention in using Government bonds for infrastructure construction over 2006-12. During the session chaired by NA Vice Chairwoman Nguyen Thi Kim Ngan, 37 deputies from 30 provinces and cities voiced their opinions, focusing on the issuance of legal documents on thrift practice and wastefulness prevention, and other legal documents relating to the use of Government bonds in the period. They also exchanged views on achievements as well as shortcomings in distributing Government bonds and implementing the Law on Thrift Practice and Wastefulness Prevention in using Government bonds for infrastructure construction. (Daidoanket, Laodong, Nhandan, Tuoitre, Vietnamnet 8)

Party Resolution responds to issues of climate change, natural resource and environment

The 11th Central Party Meeting of Vietnam at the end of its 7th session has approved a Resolution on responding to climate change, natural resources management and environ-mental protection. Accordingly, the nation will be able to actively adapt to climate change, prevent natural disasters, reduce greenhouse gas emission, exploit and use natural resources more appropriately, effectively and sustainably by 2020 in order to ensure the quality of living environment and maintain the ecological balance towards a green economy. It is expected to reach the current environmental standards of the regional developed industrial countries by 2050. For climate change, the country will focus on improving the forecast capacity, enhancing the climate change monitoring capacity of relevant agencies, improving public awareness on actively preventing natural disasters and adapting to climate change, and reducing human and property losses caused by natural disasters. Vietnam has set to be active in preventing and mitigating the effects of tides, flood and salinity resulting ftom sea level rise in localities lying along the coastal


8

regions. For natural resources management, the country shall prevent water and forest resource reduction, ensure a balance in land resources for development, improve land use and resource exploitation efficiency in an effective and sustainable manner, and mini-mize raw mineral exports. Regarding environment protection, 70% of sewage shall be treated before pouring into river basins, 85% of hazardous waste and 100% of medical waste will be solved, and 65% of waste will be recycled. The country aims at supplying safe water for 95% of urban residents and 90% of rural population, controlling and addressing environmental pollution. Also, Vietnam shall expand the area of natural reserves to over 3 million ha and forest coverage to 45%. (VTV, Chinhphu, Vi-etnamnet, Laodong, Daidoanket, Dangcongsan 6)

Nation affirms to cope with common challenges

Deputy Defence Minister Nguyen Chi Vinh made the remark in his speech delivered at the plenary session of the 12th Asia Security Summit (Shangri-La Dialogue) in Singapore, emphazing that promoting defense cooperation for a combined strength to cope with common challenges is one of the coun-try’s key measures to maintain peace, stability, cooperation and development in the region. According to Vinh, ASEAN nations have gained the common sense, strong determination, collective efforts and effective cooperation, calling on the countries to continue building confidence, saying the best way of building confidence is action. Vietnam as co-chairman of ADMM Plus Experts Working Groups on Humanitarian Assistance and Disaster Relief with China, is about to send military personnel to join the field exercises on Humanitarian Assistance, Disaster Relief and Military Medicine in Brunei in Jun. 2013. Vinh suggested the ASEAN Ministers of Defence consider the signing of a no-first-use-of-force agreement in order to consolidate the mutual trust among ASEAN countries, saying the experience gained from this will be eventually expanded to the nations of the Asia-Pacific Region. According to Vinh, Vietnam is willing to cooperate with all concerning parties to seek a basic and long-term solution to the issues in the East Sea on the principles of int’l laws, especially the UN’s 1982 Convention on the Laws of the Sea, stressing that the gradual modernisation of Vietnam’s army not only serves the legitimate self-defense rights but also enhances the

capabilities to restore the consequences of wars, deals with non-traditional security issues and takes part in the production activities, thus contributing to the national construction. Finally, Vinh has said the inhumane actions against the fishermen are unacceptable. (VOV, Vietnamnet, Nhandan, QDND, Tuoitre, Thanhnien, Dangcongsan, Vietnamplus 3)

Social issues/ Domestic policies

Plan to realize e-Government adopted

Vietnamese Prime Minister Nguyen Tan Dung has just signed the Decision 896/QD-TTg to approve the master plan on streamlining administrative procedures, citizenship papers, and databases to population management over 2013-2020. Accordingly, the plan aims to comprehensively renovate population management towards modernity and speed up application of IT in processing administrative procedures, cutting admin procedures and citizenship papers, and contributing to the development of e-Government in Viet Nam. Thus, individuals shall not have to repeatedly declare their basic information, make copies of or certify their original citizenship papers. Over 2013-2014, a steering committee, which is set up soon, will focus on improving legal framework for granting personal identification numbers, building database on population; reviewing and systematizing administrative procedures, citizenship papers; proposing ways to cut down on admin reform; while the 2015-2020 period shall grant personal identification numbers. It is expected that the plan, once implemented, will help save at least VND 1,600 billion annually. (Chinhphu, Dangcongsan, Dantri, VTV 9)

Nation targets int’l standard in poverty levels

The nation is striving to improve the quality of poverty reduction to make its poverty line close to the int’l standard by 2015 and beyond. At present, a person is considered poor if his or her monthly income was VND400,000 or less in rural areas and VND500,000 or below in urban areas. Though it is not too hard to meet the target, challenges of achieving sustainable poverty reduction are being ahead as it is not an easy task amid economic difficulties. Thus, it is impossible to continue implementing poverty reduction and social welfare policies so rapidly now. In fact, the National Assembly (NA) also needs to reconsider its budget allocation, with priority given to social


9

welfare. Accordingly, 20% of the total will be allocated for education, 8% for health care and 2% for science. In the context of economic restructuring, Vietnam should focus on increasing the number of jobs in the formal sector to ensure better salaries and other benefits for workers; while the nation needs to help the unemployed with free training and appropriate counselling services. Though a Government report delivered at the on-going session of the NA XIII has said that the poverty rate falls by 2% on a national level and 7% on the district level, a survey recently conducted by the NA Committee for Social Affairs has pointed out that up to 75% of near poor households still do not have access to medical insurance services and that the level of poverty relapse remains high at some 4-7%; while the number of near poor households accounts for 7% of the total - posing a great challenge in the fight against poverty. (VOV, Laodong, Vietnamnet, Thanhnien, Tuoitre 8)

Lethal injection for death penalty to kick-starts very soon

Figures show that more than 170 prisoners facing the death penalty shall begin receiving their sentence via lethal injection since Jun. 27. Actually, since the law on execution con-cerning criminal cases has taken effect on 1 Jul. 2011, over 500 prisoners have been handed the death sentence with shooting method. Now, the full implementation of the project has almost been completed. The Public Security Ministry has affirmed that they are confident of guaranteeing the successful execution of the reformed methods of the death penalty, adding that the actual drugs used for lethal injection are no longer allowed to be imported because of EU restrictions. Yet, the Ministry of Health has taken steps to manufacture the drugs domestically. (Dantri, Vnexpress, Laodong, Hanoimoi 7)

Nation affirms gender equality progress

2 years after implementing the National Strategy on Gender Equality over 2011-20, some goals have been fulfilled. Speaking at the seminar on National Assembly (NA) deputies and 5-year implementation of the Law on Gender Equality on Jun. 5, the NA Vice Chairwoman Tong Thi Phong has confirmed Vietnam is one of countries has early approved the Convention on the Elimination of All Forms of Discrimination against Women. Actually, the Law on Gender Equality adopted in 2006 has created a

comprehensive legal framework for gender equality; but many challenges still remain to be overcome, which requires the nation to exert more effort in organizing the implementation of policies and finding measures to help women and girls enjoy equally the fruits of socio-economic development. According to the NA Committee for Social Affairs, the 5-year implementation of the Law on Gender Equality has received a positive response from the whole political system, affirming that the NA and Government of Vietnam have integrated gender equality goals and principles into many other important laws. Meanwhile, UN Coordinator in Vietnam Pratibha Mahta praised Vietnam’s progress in gender equality and improvement of women’s juridical capacity, emphasizing the need to get all relevant agencies involved in promoting gender equality, and bringing more opportunities for women. Statically, Vietnam is now one of countries having the largest numbers of female NA deputies regionally and globally. Later, a Vietnamese delegation led by State Vice President Nguyen Thi Doan attended the Global Summit of Women themed “Women: Creating New Economies” in Malaysia on Jun. 6-8 to share experiences on ways to promote int’l cooperation for the advancement of women in various fields. (VOV 5-6; Laodong, Vienamnet 6; Tuoitre 6, 7)

Latest figure of traffic accidents and ef-forts to ensure road safety

Latest figures show that more than 12,000 traffic accidents occurred nationwide in the 1st 5 months of 2013, killing 4,163 people and injuring 12,171. Meanwhile, the report delivered by the Ministry of Transport (MoT) to the deputies at the on-going session said that the MoT has proposed several amendments to the Decree 71 on road traffic violations and penalties. According to the MoT, drivers of buses and lorries top the list in terms of the cause of serious accidents so they should be banned from driving if they cause accident. Another issue has been under debate in which the MoT has said it is not suitable to punish customers for using substandard helmets but the producers and the market managers; while the Ministry of Public Security disagrees. In another devel-opment, the MoT said they would kick off a campaign nationwide to tighten control over speed limit compliance by drivers in Jul. 2013 with a view to improving road traffic safety and reducing accidents caused by speeding.


10

Accordingly, the MoT and the National Traffic Safety Committee on Jun. 7 issued a plan to launch a campaign to enhance traffic safety awareness and detect and punish violations on speed limits by all means of road transportation nationwide. Electronic warning signs about speed limits, which are based on weather conditions, different time periods in a day, and traffic volumes, will be installed in certain areas, including crowded residential areas to strengthen traffic safety; while information about the traffic situation on streets in different areas will be provided to vehicles’ drivers via mobile phones. In this week, at least 6 people died after a bus carrying over 30 passengers crashed into a mountain side and plunged into a ravine in the southern province of Khanh Hoa on Jun. 7. Also, 3 people were killed and 29 others injured after a Mai Linh bus plunged off a mountain road and fell into a five-meter-deep abyss in the central province of Quang Nam on Jun. 9. (Dantri 3; VOV 7; VTV, Vnexpress, Laodong 9; Tuoitre 8, 9; Vietnamnet 8)

Environmental and Health issues

Efforts to realize the national marine strategy

Vietnam is one of the top 10 countries with the highest ratio of coastline to its total land area, with 100 km2 of land per one kilometre of coastline – 6 times higher than the world average. The National Marine Strategy until 2020 aims to develop Vietnam into a strong, wealthy sea-based nation by the second de-cade of this century, targeting the marine economy to contribute 53-55% of overall GDP and 55-60% of the country's total export tur-nover by 2020 in line with protecting the country's sovereignty over its seas, ensuring national defense and security and as protec-ting the maritime environment. The 4th natio-nal Marine Economy Forum entitled “Green Marine Economy Development: Prospects and Challenges” was held by the Ministry of Natural Resources and Environment on Jun. 7 to discuss developing a green marine econo-my by 2020, as part of the Vietnam Sea and Islands Week 2013. The event attracted re-presentatives from 28 coastal provinces and cities nationwide and scientists in the nation and abroad. Participants also discussed ways to achieve the targets of the country's marine strategy by 2020 and create a green marine economy while its level of exploiting its sea resources still lags behind other regional countries. Additionally, a green marine eco-

nomy will faces risks related to climate chan-ge, ocean acidification, and the unsustainable development of fisheries and aquaculture farms. It is advised that a green marine eco-nomy will be developed as a sustainable, en-vironmentally friendly ecosystem that is able to respond to climate change, use cleaner technologies, and produce safe and highly competitive products. (VTV, VOV, Dangcongsan, QDND 8)

Ways to deal with climate change dis-cussed

Vietnam is assessed as one of the nations gravely affected by climate change. According to the latest scenario, by the late 21st century, Vietnam will see an average temperature increasing 2 to 3.4oC and sea level rising 1 metre, which shall flood 40% of land area in the Mekong Delta, 11% of the Red River area and 3% of other coastal provinces - meaning about 12% of the population would be affected directly and about 10% of GDP would be lost. An int’l seminar was held by the Ministry of Natural Resources and Environment (MoNRE) in Hanoi on Jun. 5 to discuss policies to efficiently deal with climate change in Vietnam. According to MoNRE, the Government of Vietnam has been well aware of both positive and negative impacts of climate change and taken strategic actions to effectively cope with climate change with support from the international community. The country has taken initiative in dealing with natural disasters and sea level rise, ensuring food and water security and social safety and reducing greenhouse gas emissions. Meanwhile, a ceremony was held on Jun. 5 to mark the World Environment Day (WED). Speaking at the event, Deputy PM Nguyen Thien Nhan has affirmed that Vietnam needs to focus on preventing environmental pollution in order to create a cleaner and healthier living environment for local residents today and in the fu-ture. Experts say that Vietnam is facing big environmental problems caused by human activity, with 60% of waste discharged into the environment without treatment, an official has warned, while calling for efforts to address the challenge. UN Resident Coordinator in Vietnam Pratibha Mehta suggested Vietnam establishing a environmentally-friendly lifestyle to minimize negative impacts on the environment and create a big alliance from the Government to social organizations and individuals to make


11

them join hands for a future environmentally-friendly and sustainable environment, adding that the country should create a legal framework by making laws and policies on environmental protection. (VNA 5-6; VTV, Tuoitre, Nhandan, Dantri, Vnexpress, Vietnamnet 6)

Nation sees 6 deaths from A/H1N1 A 24-year-old woman living in Ho Chi Minh City infec-ted with A/H1N1 avian flu died from respiratory and heart failure on Jun. 5 in Cho Ray hospital, bringing the total death from the virus to 6 so far this year.

This is also 2nd consecutive death from A/H1N1 within three days in the hospital. Earlier, a 61-year-old man living in the southern province of Dong Thap died at the hospital due to serious respiratory problems and heart failure. According to the World Health Organization, there are no signs of changes in the genes of the H1N1 virus. (Tuoi-tre 5, 6; Laodong, Vietnamnet, Thanhnien 5)

Property market and land issues

Ministry strives to say “no” to slow and ineffective golf projects The Ministry of Planning and Investment (MPI) has affirmed to the National Assembly deputies that they have checked all golf course projects nationwide. Accordingly, the MPI rejected 76 projects and revo-ked over 15,600 hectares of land from these projects.

Meanwhile, a report delivered to National As-sembly deputies at the on-going session, the MPI has pointed out that they review all golf course projects to ensure that these projects are licensed only if they do not use rice fields, forest and the land that is reserved for indust-rial parks and residential area projects. Statis-tically, there are 90 golf courses nationwide, which are located in 34/63 provinces and cities. So far, the MPI has eliminated 76 other golf course projects, revoking more than 15,600 hectares of land; while 29 have been put into operation, 22 are under construction. Speaking to the NA, the MPI has promised to revoke investment certificates of the golf course projects that are implemented slowly and ineffectively and strictly punish the inves-tors who break the rules on environment. (Vietnamnet, VIR, Vneconomy, VIR 9)

Social housing credit stimulus package disbursed

As reported, 5 commercial banks, including Agribank, Vietinbank, Vietcombank, BIDV and MHB are allocating the social housing stimulus package worth VND30 trillion ($1.4 billion) to house renters and buyers from early

Jun. 2013 to defrost the property market at an annual preferential lending rate of 6% for this year, of which Concretely, BIDV has registered to put aside a VND10 trillion ($400 million) credit package. The package targets to realize the Government’s Resolution 02/NQ-CP on bailout for home purchases. Yet, the Vietnam Cement Association has pointed out that $1.4-billion property credit package is expected to hit the spot, adding that the dormant property market hurt the operation of not only property businesses but also cement companies. Figures released by Vietnam Real Estate Association has said that approximately 150,000 apartments got stuck in 2 big cities Hanoi and Ho Chi Minh City by late Q113 while these apartments were main-ly in papers or partly-done. If these projects were underway, the demand for cement and other building materials would take off, so the current huge stockpile of building materials could be eaten into. According to experts, to clear inventories, the Government should allow firms to divide apartments into smaller units from 30-40sqm and with price in the range of VND500-600 million per unit to boost sales, noting that the VND30-trillion ($1.4 billion) is important to revitalize the mar-ket. Yet, experts suggest the loan interest rate should be kept lower than 5% annually and remain stable in 5 years and payment period be extended to at least 15-20 years. (Tuoitre, Vietnamnet, VIR, Vneconomy, Thanhnien, Laodong, Chinhphu 4, VTV 3, 4)

International cooperation

South China Sea, Sovereignty and Sovereignty Right

Historical documents to prove sovereignty over Hoang Sa and Truong Sa Nearly 200 documents and maps affirming Vietnam’s sovereignty over Hoang Sa (Para-cel) and Truong Sa (Spratly) archipelagos are on display in the central province of Ha Tinh at the week-long exhibition opened on Jun. 2 as part of the 2013 Vietnam Sea and Island Week. 95 exhibits include documents issued by Vietnamese feudal states from the 17th to the early 20th century and 16th maps published by China and Western countries, and three atlases printed in England, Germany and the US over 1626-1980. All these items affirm that Vietnamese states established and exercised sovereignty over the Hoang Sa and Truong Sa archipelagos throughout a long,


12

continuous period recorded in historical documents from Vietnam and foreign countries. Seashells collected by fishermen in the Hoang Sa and Truong Sa areas are also on display. The exhibition aims to raise public awareness, especially among the youth, of solidarity and responsibility for protecting and affirming Vietnam’s sovereignty over the two archipelagos. It also confirms the importance of the country’s sea and islands in national construction and defence. (VOV, VTV, Dai-doanket, Chinhphu, Nhandan, QDND, Dangcongsan, Tuoitre 3)

Conference affirms Int’l law as base to address East Sea disputes An int’l conference on controlling tension in the East Sea was held by the US Centre for Strategic and Int’l Studies on June 5-6 with the participation of about 250 representatives from the US, China, India, Japan, the Philippines, Taiwan and Vietnam, focusing on 3 main topics, including the importance of disputes in the East Sea, recent changes in the East Sea, and the East Sea’s role in regional politics. Attendees have expressed that territorial claims and disputes in the East Sea need to be addressed in line with int’l law, especially the 1982 UNCLOS. According to the US Department of State’s Bureau of East Asian and Pacific Affairs, the US does not back any parties in territorial claims or disputes in the East Sea, and does not support the use or threat of the use of force to settle disputes, affirming that relevant parties need to address disputes through peaceful means including diplomatic negotiation and reconciliation though 3rd parties and int’l arbitrators. The US hopes China and ASEAN soon start discussions on COC. Participants also discussed the role of intl law in controlling disputes in the East Sea and policies to intensify cooperation. (VNA, Vietnamnet, Tuoitre, Thanhnien, Dangcongsan 6)

Labor confederation organizes fisheries unions At the conference held on Jun. 8 to review 2 years of the pilot establishment of fisheries unions, Vietnam labor union has pledged to continue assisting fishermen nationwide to organize fisheries unions and improve the efficiency of offshore vessels. Figures show that 36 fisheries unions had been organized in 12 cities and provinces as of late May with about 6,000 members working on over 1,700 ships. Actually, fisheries unions has helped raise the awareness of fishermen and ship

owners of potential legal policies and rules on the exploitation and protection of aquatic resources, their responsibilities and behaviors in protecting national sovereignty over territo-rial waters, helped enhance solidarity and protected members’ interests in case of dis-pute and assisted them once accidents occur. In the time to come, more unions shall be set up while the existing unions shall be consoli-dated. Meanwhile, the Golden Heart Fund called to respond to the campaign ‘Sentimen-tal Net for fishermen in the two archipelagos with approximately VND38 billion ($1.8 milli-on) received for fisheries unions, fishermen and their families as of late May. (Daidoanket, QDND, Tuoitre, Dangcongsan 9; VNA 6, 9)

Vietnam – China express willing-ness to resolve existing challenges Vietnamese Deputy Minister of Defence Nguyen Chi Vinh has affirmed with his Chi-nese counterpart Mr. Chang during the 4th Vietnam-China defence dialogue held in Bei-jing on Jun. 5 that the activity helps reinforce the strategic trust between the two militaries, two Parties, States, and peoples, adding that both sides are willing to resolve the existing challenges and consolidate bilateral relationship in the interests of peace and their respective peoples. Vinh and the guest have stressed the need to have cooperation and consultations in multilateral security mechanisms without giving negative impacts to the interests of either country, saying the two militaries play an important role in helping their Parties and States settle disputes through peaceful negotiations and friendly consultations, thereby abiding by int’l law and the DOC. Vietnam proposed signing an agreement against the use and threat of naval force at sea, expanding cooperation, particularly in relation to the two countries navies, and officially recognising the need to treat fishermen at sea humanely. The guest has confirmed China is determined to follow the path of peaceful development, wishing to address sensitive issues with Vietnam without affecting the bilateral relations. (Tuoitre 6,8; VNA, VTV, Laodong, Thanhnien 6)

Vietnam boosts defense ties with Thailand and Australia

Vietnamese and Thai Air Forces will expand cooperation as a strategic partnership between the two nations. During the two Air Force Commanders’ talks held in Bangkok on Jun 4 on the sideline of the Vietnamese Air Defence and Air Force delegation’s 4-day visit


13

to Thailand, Commanders Phuong Minh Hoa of Vietnam and Prajin Jantong of Thailand has agreed to exchange high-level visits, strengthen training cooperation, share meteorological information, and consult on aviation medicine. At present, both Vietnam and Thailand are preparing for relationship upgrade and national defence ties as part of the bilateral relationship. Actually, the two nations signed a cooperative national defence agreement in 2012. Currently, Vietnam is striving to promote bilateral and multilateral cooperation with Thailand as part of the ultimate ASEAN Community formation goal in 2015. In another development, Vietnam and Australia have agreed to continue strengthening their bilateral relations in the fields of delegations exchange, dialogue consultations, English training, and medical military. At the reception for the visiting Commander of Australian Defence College Major General Craig Orme in Hanoi, Lieutenant General Vo Van Tuan, Deputy Chief of the General Staff of the Vietnam People’s Army has affirmed the MoU signed by the two nations in 2010 facilitate bilateral defence cooperation. (Nhandan, Dangcongsan, QDND, VOV, Daidoanket, Tuoitre 4, 5))

Nation be pro-active at World economic forum

Vietnam’s participation in the 22nd World Economic Forum (WEF) on East Asia in Myanmar on June 5-7 reflects the country’s policy of proactive and active int’l integration, contributing to efforts to increase connectivity and build an ASEAN Community. This is a good chance for Vietnam to consult and share viewpoints and experiences in development with other countries, with a view to finding solutions for our country’s sustainable economic development while joining hand with other ASEAN countries to complete the building of an ASEAN Community by 2015. At the event, Prime Minister Nguyen Tan Dung made an important key-note address at the opening session, which highlighted Vietnam’s consistent policy of building a dynamic and competitive market economy, stressing the importance of a peaceful, stable, cooperative and developing int’l environment on the basis of respect for int’l law; freedom of trade and investment via economic links and trustworthy and efficient cooperation among countries, in dealing with regional and global common challenges. Dung has affirmed that Vietnam will do its utmost to increase regional cooperation and connectivity in all

fields, contributing to building the ASEAN Community and economic corridors, especially the East – West Economic Corridor (EWEC). At a meeting with Myanmar President Thein Sein on June 6, PM Dung has pledged Vietnam’s support to Myanmar ’s ongoing reforms and help Myanmar successfully undertake the role as Chair of ASEAN in 2014. Thein Sein has suggested Vietnam sharing its experience and assisting Myanmar in the development cause. Both leasers also promised to work together to make preparations for a visit by Vietnam’s National Assembly Chairman Nguyen Sinh Hung to Myanmar in Jul 2013, stressing that Vietnam and Myanmar shall promote current cooperation mechanisms including the Vietnam–Myanmar Joint Committee, and annual political consultation between the two Foreign Ministries. It is expected that the two nations shall soon establish a security dialogue mechanism at deputy ministerial level. Especially, Dung and Thein Sein reached an agreement on expanding cooperation in the potential fields of mineral exploitation, aviation and construction. (VTV, Tuoitre 7; VOV, Dantri, Chinhphu 6 ; Dangcongsan, Daidoanket 9)

Vietnam bonds ties with Malaysia

At the reception for the visiting Vietnamese Vice President Nguyen Thi Doan on Jun. 6 who were attending the 23rd Global Summit of Women, Malaysian King Sultan Abdul Halim Mu’adzam Shah have agreed to conti-nue co-operation between the two nations in fields of security, defense, labor, education and training, culture, sports, tourism, and oil and gas. Both sides said they were pleased with the developing friendship and multifa-ceted co-operation between the two count-ries, saying that the joint activities to celebrate the 40th anniversary of their diplomatic ties in 2013 will deepen mutual understanding and trust between Vietnam and Malaysia, strengthening the bilateral ties to look for-wards establishing a strategic partnership in the future. Doan and the King Sultan Abdul Halim Mu’adzam Shah have also pledged to strengthen co-operation at regional and int’l fora, including those in the framework of ASEAN and the UN, agreeing to comply with int’l law, especially the 1982 UNCLOS and strictly implement the DOC and build a COC at an early date, with a view to maintaining peace and stability in the East Sea and the region. It is said that the Malaysian King shall visit Vietnam soon. In the meantime, a busi-


14

ness forum between Vietnam and Malaysia was held in Kuala Lumpur on Jun. 7, attrac-ting about 100 businesses from both count-ries. Addressing the event, Vice President Nguyen Thi Doan highlighted the fine co-operative relations between the two countries and their businesses in particular. So far, Vi-etnam and Malaysia have signed a series of co-operative documents, including an agree-ment on investment encouragement and pro-tection, an agreement on economic, scientific and technological co-operation and a trade agreement. Malaysia is Vietnam’s 3rd biggest trade partner in ASEAN with two-way trade reaching $8 billion and investment capital totaled $11.3 billion through over 400 projects in 2012. Malaysia ranked the 7th largest inves-tor in Vietnam as of 2012. (Nhandan 6,7; Chin-hphu, Vneconomy, QDND, VNA, VTV 7)

Cambodia

US voices concern about ruling party’s decision

The US State Department spokesman Jen Psaki was deeply concerned about reports saying that opposition lawmakers have been expelled from Cambodia's National Assembly (NA), stressing that such a decision went against the spirit of a healthy democratic pro-cess. Psaki called on the Cambodian NA to allow all elected members to fulfill their com-mitment to serve the people, affirming that cutting down the salaries and parliamentary status of opposition party lawmakers shall hurt the democratic process in the nation. Earlier, 28 lawmakers of Cambodia's two op-position parties (SamRainsy and National Rescue) on Jun 5 were informed by a perma-nent parliamentary committee made up of the ruling Cambodian People’s Party that they were no longer valid deputies. According to the committee, the two parties had joined to form a new opposition organization ahead of July elections and were thus not eligible to remain as members of parliament. Meanwhi-le, members of the National Rescue Party (NRP) have said that such a decision to strip the status and salaries is an unconstitutional move, adding that According to Article 76 of the Constitution of Cambodia, the NA must have at least 120 members. In case the num-ber of lawmakers is less than the number stipulated in the Constitution, this will lead to the NA being dissolved before the mandate. (The Cambodia Herald)

July election attracts more than 8,000 observers

The National Election Committee (NEC) said that there are more than 8,000 national and int’l observers from 25 national and int’l NGOs have registered to oversee the July general election in Cambodia. According to NEC, more than 2,2 million voter information cards have been distributed to citizens in 24 cities and provinces, noting that the process will last until July 25th. It is expected that 5th legislature general election to be scheduled on Jul. 28th shall attract about 9.6 million re-gistered eligible voters to cast their ballots. So far, 8 political parties have registered to com-pete in the political event, which costs about $20 million; including the ruling Cambodian People’s Party (CPP), the opposition National Rescue Party (NRP), the Royalist Funcipec Party, the League for Democracy Party (LDP), the Cambodian Nationality Party, the Khmer Republican Party, the Khmer Anti-Poverty Party and the Khmer Economic Development Party. (The Cambodia Herald)

Genocide denial law approved

The Congress opened its session on Jun. 7 to discuss a draft of a denial law with only the participant of 86 members of the ruling Cam-bodian People’s Party (CPP) and the Royalist Funcipec Party; while 29 deputies of the op-position Parties Human Rights and Sam Rain-sy were not invited as their names had been removed by the 12-member NA permanent Committee. As results, the 5-article law was finally approved, criminalizing those who seek to downplay the crimes of the Khmer Rouge era. The representative of the CPP has pointed out that any denial of the atrocities committed by the Khmer Rouge is a serious insult to the spirits of the dead killed in that regime and hurts the victims’ families, saying that any form of expression to reject, deny and raise the value of the Khmer Rouge cri-mes are not considered as freedom of ex-pression. Earlier, the drafted law was initiated by Prime Minister Hun Sen with the aim to punish those denying the Khmer Rouge committed atrocities against the Cambodian people. According to the law, anyone found guilty of breaking it shall face some 6-24 months imprisonment and be fined some 1-4 million riels; while those working in a legal setting shall be fined some 50-100 million riels. Earlier, the draft law had made a big controversy. (The PhnomPenh Post, The Cambodia Herald)


15

NGOs hold political forum right before the July election

A major political forum to hear different politi-cal party's views on policies was held by NGOs – including Comfrel, CCC, GADC, Sila-ka, CCHR, DPA, VOD, CRRT, API, CPWP TI, CHRAC, and WVC. - on Jun. 6 in Phnom Penh to address issues and policies, including Economic and Land Reform; the Environ-ment, Forestry and Climate Change; Social and Human Development and Rule of Law, Good Governance and Access to Information. The forum has attracted more than 350 key community representatives as well and re-presentatives of authorities, with the aims to inform the public about the different views of parties about the Jul. 28 National Election. (The Cambodia Herald)

Nation receives $36-million loan from Japan

Cambodia and Japan signed on Jun. 5 a $36- million loan agreement to implement the two projects, including the clean water project in the provinces of Kampong Cham and Battambang and the human resource develo-pment project. Earlier, another aid agreement signed for implementing 3 projects. Meanwhile,

the two-way trade between Cambodia and Japan reached about $800 million in 2012 and Japanese investments in the country hit $259 million. (The Cambodia Herald)

Mass rally held demanding release of detained protestors

Around 2,000 garment workers have gathered on Jun. 5 in front of Kampong Speu Provinci-al Court to seek for the release of 8 people detained after a riot broke out at the Taiwane-se-owned Sabrina garment factory, in which 7 of whom are members of the Free Trade Uni-on of Workers of Cambodia and another from Coalition of Cambodian Apparel Workers’ Democratic Union. Earlier, police and military officers were deployed to the factory to stop the rioting. Workers joining the rally also de-manded an additional increase of $14 in wage and $5 bonus to cover healthcare costs. The riot broke out when the police tried to prevent workers from damaging the factory. (The Cam-bodia Herald, The Phnom Penh Post)

Laos

Nation finds hard to repatriate “illegal” foreign workers

As many as 3,900 foreigners (most are Chi-

nese and Vietnamese) working “illegally” in

Vientiane may be repatriated after failing to

meet the set criteria to gain a work permit.

Actually, most immigrants have worked main-

ly as hawkers, nail cutters and painters, beau-

ticians, scrap metal collectors and buyers;

while the others came to work for foreign-

owned investment projects but did not return

home upon the project completion. It is ex-

pected that the new rule shall be issued, first

to be applied in Vientiane and then other

provinces. Statistically, over 7,500 foreigners

were found to be working in the capital, of

which only 2,619 had work permits. In fact,

talks on the issue have been ongoing since at

least 2009 but the problem persists; while

analysts have been concerned about the in-

flux of foreigners. The Government has taken

more concrete steps to regulate the matter,

despite the fact that many officials admit that

such issues are complex and require time to

be resolved. (Vientiane Times,

www.thenationmultimedia.com)

Deputies in favor of amending tourism law

The Ministry of Information, Culture and Tourism told the National Assembly that it would be needed to amend the current Tourism Law in order to achieve greater growth in the sector. Actually, some articles in the law are not in line with the renovation policy of the Part. Though the new draft has proposed to amend 30 articles and add 7 articles, the chapters and parts remain unchanged. Meanwhile, deputies have praised the effort made in the draft law, say-ing that the tourism sector is one of the drivers to boost economic growth and sustainable development; but they have urged further efforts from tourist officials, affirming that more work needs to be done to better develop the marketing of Lao tourism. The final draft of the amended law shall be submitted for debate and approval at the NA's July session. Once it is approved and promulgated, it will be instrumental in developing the tourism sector and adding fuel to the fast-growing tourism industry in Laos. Over 1990-2012, the country recorded a growth rate in foreign tourist arrivals of 20.4% annually on average. Especially, the nation received over 3.3 million foreign tourists (equal to half of the country's total population) in 2012, generating total revenue of $513 million. In the meantime, the Ministry of

http://www.thenationmultimedia.com/


16

Labor and Social Welfare also told the NA that it is the right time to turn the two existing Prime ministerial decrees of 70 and 207 on social insurance into law to expand social insurance coverage for the benefit of the entire public, sharing benefits from strong economic growth. Once the newly-drafted law is approved, it will add fuel to the Government's efforts to double social insurance coverage for the population by 2015 in line with the target set to increase coverage to some 25-50% of the total population. (Vientiane Times)

Ministry affirms wage increases

The Ministry of Finance (MoF) has just confirmed that the state budget is sufficient to increase the salaries of state employees in the next fiscal year as promised by the Government but the plan shall be made at modest spending. Actually, the approval for a rise of wage in fiscal year has been made but officials in certain sectors including education have not benefited it for several months. Ana-lysts say the salary increase of almost 140% is really a big financial burden; while the MoF has pointed out that the slow payments are due other factors than financial difficulties. Earlier, Prime Minister Thongsing Thammavong issued a decree to raise officials' salaries for 3 consecutive years until 2015, by which the salary would be up from 3,500 kip to 4,800 kip per index in 2012-13 (a rise of 37%), to 6,700 kip per index in 2013-14 (91%), and to 9,300 kip per index in 2014-15 (165%); while an additional allowance of 760,000 kip per person per month to cover the cost of el ectricity, water, and clothing shall be approved. Under the plan, the Ministry will seek to collect domestic revenues as high as 20,017 billion kip for the coming fiscal year 2013-2014. (Vientiane Times)

Nation boost ties with with Canada, France, Belarus, and Slovakia

Laos and Canada have expressed to strengthen the bilateral cooperation between the two countries. This statement was made at the reception for the visiting Canadian Deputy Foreign Minister Morris Rosenberg. This was the first visit of a high-level foreign affairs delegation from Canada to Laos since the two nations established diplomatic relations in 1974. The two sides reviewed their cooperation over the past decades and discussed their future plans, while confirming their desire to make all efforts in strengthening their relations and future

cooperation. Laos proposed that Canada could support two Lao candidates in their bids for seats in the UN Population Fund Executive Board, and UN Human Rights Council over 2016-18; while Canada agreed to hold further discussions on the issue. In an-other development, Laotian Deputy Prime Minister cum Foreign Minister Thongloun has made working visits to France, Belarus and Slovakia as part of his weeklong tour. In Paris, Laos and France have agreed to exchanges their highest level delegations with the aim to consolidate the cooperative relations between the two sides. France has pledged to contribute to various development projects in the country, including the Nam Theun 2 hydropower project, rural development and infrastructure initiatives, heritage conservation projects. During the visit to Belarus, Laos and Belarus held talks on bilateral ties and signed a MoU for the establishment of a joint cooperation commission to boost governmental collaboration between the two sides. Earlier, Laos and the Slovak Republic have expressed their strong intention to broaden cooperation, especially in fields of economics, trade, investment and tourism. Both sides discussed ways to broaden their relations and cooperation in bilateral and multilateral frameworks. Laos and Slovakia signed a MoU on consultation and cooperation between the two ministries. (Vien-tiane Times)

Myanmar

Commitments made between difficulties and deep sea

Myanmar President Thein Sein formally ope-ned the 22nd World Economic Forum (WEF) on Jun. 6 with a call for increased investment in the country as it continues on its way to-ward democratic reform, saying they are wor-king hard to move from military rule to de-mocracy. In the meantime, speaking at the 22nd World Economic Forum (WEF) taken place in Myanmar on Jun 6, Myanmar's Nobel Peace Prize laureate Suu Kyi has said she does not want to inflame ethnic tensions, stressing the need to target specific actions rather than communities. Suu Kyi reiterates that it is necessary to go back to the rule of law. Earlier, Suu Kyi had received various criticisms for her failure to speak out against continuing ethnic conflicts across Myanmar. Also, Suu Kyi has affirmed that she shall tar-get the greatest needs of the people if selec-ted. According to Suu Kyi, amending Myan-


17

mar’s Constitution is the most difficult pro-cess in the world as it requires a 75% parlia-mentary approval and a subsequent 50% approval by eligible voters in a referendum. Suu Kyi pointed out that there were many aspects of the controversial 2008 Constitution which has currently prevented her from becoming president in 2015. Last week, Suu Kyi has expressed that Myanmar’s quasi-civilian Government is now 3 years into its reforms, it is falling short of its promises, stressing that the most pressing matter for the Government to address is poverty allevia-tion, improving the lives of Myanmar’s esti-mated 70% rural population by leveraging job creation. Statistics indicates 75% of people are unemployed; while there is not much investment to come in the country. (BNI)

Event to marl Global day of Action for Kachin

60 NGOs and campaign groups from 21 na-tions took part on Jun. 7 in a Global Day of Action to mark what they say is the 2nd anni-versary of military attacks by Myanmar Government forces against the Kachin Inde-pendence Army and Kachin civilians. Accord-ing to NGOs, the Burmese Army targets civili-ans during the military attacks, describing it as a war crime. Meanwhile, NGOs have affir-med that human rights abuses committed by the Burmese Army reported by the UN also indicate crimes against humanity. Actually, Kachin civilians have suffered from human rights violations, including rape of women and children, arbitrary execution, torture, forced labor, mortar bombing, burning and looting of villages. Figures released by a group of NGOS say that more than 100,000 Kachin civilians have had to flee from their homes to refugee camps; while the Burmese Government continues to restrict access for humanitarian aid to thousands of Kachin refu-gees. Though a 7-point agreement was sig-ned between the KIO and the Government during recent talks, a ceasefire hasn’t been reached and the situation on the ground remains tense. Representative for the KIO's Foreign Department has said in the statement the conflict is a result of the flawed 2008 Constitution as it lacks national equality. Ana-lysts say without a political solution which is the formation of a federal democratic Burma that guarantees self-determination for the Kachin and all ethnic nationalities, there can never be a durable peace in the country.” (BNI, The Myanmar Times)

ADB grants $500-million loan for tourism sector development

ADB said on Jun. 6 they agreed with Myan-mar tourism plan with a loan worth $500 mil-lion to help increase the nation’s tourism competitiveness, protect environmentally important areas, and safeguard ethnic groups. The plan was agreed in coordination with the Government of Myanmar and Norway for the implementing 38 specific development pro-jects in the time to come. Accordingly, this master plan outlines a path to welcoming more visitors to the country without threaten-ing our unique cultural heritage or endange-ring environments. It is predicted that the int’l tourist arrivals shall rise as high as 7.5 million by 2020 (up 700% from current figure); while the tourism sector shall gain $10 billion and generate up to 1.4 million jobs by 2020. Me-anwhile, Myanmar’s Minister of Tourism Htay Aung signed a letter of intent for the practice of smart tourism and a collaborative visa sys-tem along with fellow ASEAN nations. Ac-cordingly, thousands more tourists shall have the chance to visit Myanmar's golden sites. Actually, the Myanmar Government hopes to triple tourism to 3 million visitors annually by 2015. (BNI, The Myanmar Times)

Contact

Rosa Luxemburg Stiftung Hanoi Office

72 Xuan Dieu, Tay Ho

Hanoi

Vietnam

[email protected]

+84 4 37185836

Disclaimer

The provided information does not necessarily

reflect the opinion of RLS. The News Collec-

tion is not to be further published or distribut-

ed to any third party.

southeastasia newscollection - rosa-lux · 2019. 7. 4. · june 3 with a focus on accelerating...

Documents