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Giving a boost to rural economic development

In Uncategorized on December 16, 2010 at 9:33 am




Giving a boost to rural economic development


QĐND – Saturday, December 11, 2010, 21:8 (GMT+7)

The development of the rural economy is still far from matching its potential. To stimulate their growth, Vietnam needs new practical solutions.


With more than 70 percent of the population living in rural areas, developing the rural economy is considered vital for the country. In recent years, the Party and State have issued many policies to improve the rural economy. The resolution No. 26-NQ/TW on agriculture, farmers and rural areas, enforced 2 years ago, has remarkably changed the structure of economy and labour force providing the basis for building a new model for rural areas.


Despite comprehensive promulgation of the policies, especially those related to bank credit, the imperfect implementation still limits the development of rural economy.


According to Nguyen Phong Quang, a member of the Party Centre Committee and Deputy Head of the Southwestern Steering Committee, it is crucial to have a plan for the rural economic development because it is the fundamental for the region’s sustainable development.


Over the past years, Vietnam has become a large exporter of rice, coffee and aquatic products. However, the farmers still face many problems and remain the poorest group of the society.


The average income of the urban residents remains two times higher than those of rural dwellers. The poverty rate in the countryside is 18.1 percent while it is only 3.1 percent in the urban areas.


Recent surveys show that farmers now want to change their occupations because it brings very low income. How to create jobs for young people in the rural areas is also a thorny issue.


There are several reasons for the problem. Firstly, the amount of agricultural land has been reduced sharply. The country now has 70 million ha of agricultural land but only 4 million ha is used for rice cultivation.


The Ministry of Agriculture and Rural Development (MARD) estimated that every year, about 73,300ha of agricultural land is taken back affecting nearly 2.5 million people. Over the past five years, the amount of agricultural land taken back reached more than 154,000, which means that the land used for rice cultivation has reduced by 7.6 percent.


Meanwhile, the policies for agricultural land have numerous problems and are outdated. MARD Deputy Minister Diep Kinh Tan said that besides these issues, the policies for agriculture development need to focus on transferring new knowledge and technology to farmers. They should also concentrate on how to use the state budget more efficiently to upgrade infrastructure in the rural areas.


At the last conference on comprehensive implementation of solutions to boost rural economy, the organisations and provinces across the country agreed that the ministries, departments, businesses and credit institutions should all engage in carrying out the already enforced policies. They should also join hands to work out new methods to help transform these policies into the reality.


The Minister of Industry and Trade, Vu Huy Hoang, said that the government needs to reorganise the production to meet the current conditions of the rural areas. It should also provide farmers with information on the markets and consumption.


Nguyen Van Giau, Governor of the State Bank of Vietnam, stressed that the conference provides a forum to tackle the problems of rural development.


Conference attendants also discussed ways to increase farmers’ access to banks credit and strengthen the linkage between farmers, scientists, entrepreneurs and bankers. They also debated on the role of the Vietnam Farmers’ Union. Many administrative agencies and economic institutes proposed to expand the outlet and export of agriculture products, minimise risks in production, encourage the farmers to apply new technologies and provide them with training courses.


Also at the conference, the banks, the unions and associations signed 7 cooperation agreements to develop rural economy.


Source: VOV


Source: QDND

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APEC leaders commit to strengthen economic co-operation

In Uncategorized on November 16, 2010 at 1:55 am

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Gold sets record high amid economic fears

In Uncategorized on November 9, 2010 at 4:51 am

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ASEAN economic senior officials meet in Hanoi

In Uncategorized on October 28, 2010 at 1:39 am




ASEAN economic senior officials meet in Hanoi


QĐND – Wednesday, October 27, 2010, 20:39 (GMT+7)

ASEAN economic senior officials gathered in Hanoi on October 27 to review procedures and documents for the ASEAN Economic Community Council Meeting on October 28.


They discussed measures to strengthen the ASEAN economic community in 2015 and the methods members could achieve their own economic goals.


They also discussed a document that will be signed to strengthen economic co-operation between ASEAN and its partners. Inner bloc co-operation will present two important documents: a Protocol to Provide Special Consideration for Rice and Sugar and a Protocol to Implement the Eighth Package of Commitments. They will also review a document between ASEAN and China to facilitate trade and grant certificates of origin.


Officials also evaluated some ASEAN co-operation activities to create the best conditions for businesses to operate.


Source: VOV


Source: QDND

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Geithner in China for talks on economic ties

In Uncategorized on October 25, 2010 at 9:35 am

US Treasury Secretary Timothy Geithner held talks with his Chinese counterpart Sunday on economic ties amid tensions over China’s currency, which Washington believes is undervalued.


Geithner met Vice Premier Wang Qishan in the eastern coastal city of Qingdao a day after a Group of 20 finance ministers meeting wrapped up in South Korea.


Washington has long argued that China’s currency, the yuan, is being kept grossly undervalued in order to help Chinese exporters.


Beijing counters that loose US monetary policy is driving down the dollar and causing a wave of capital to flood emerging markets in search of higher yields.

US Treasury Secretary Timothy Geithner, pictured on October 23, held talks with his Chinese counterpart Sunday on economic ties amid tensions over China’s currency, which Washington believes is undervalued.

The G20 talks ended on Saturday with an agreement to avoid tit-for-tat currency devaluations and aim for “more market-determined exchange rate systems”.


Following the Geithner-Wang talks, the US Embassy released a statement saying they “exchanged views on US-China economic relations”, without giving further details.


But in an interview conducted ahead of the meeting, Geithner said he believed China would let the yuan appreciate.


“They recognise it’s important to the world. China recognises that and I think we’re going to see them continue to move,” he told Bloomberg Television, in comments published Sunday.


The US Treasury chief said that China had some way to go in loosening its grip on the yuan, Bloomberg reported.


“But I think they’re committed to do that, because they recognise it’s in their interest,” the channel quoted him as saying.


Beijing has bristled at criticism from Washington about the value of the yuan, which some lawmakers have charged is undervalued by as much as 40 percent, giving Chinese exporters an unfair trade advantage.


US President Barack Obama is likely to meet Chinese President Hu Jintao on the sidelines of the G20 summit in Seoul from November 11-12. Obama is scheduled to attend the meeting, but Hu’s attendance has not been officially announced.


In a statement released on Saturday, Geithner said the G20 meeting agreed that a “gradual appreciation” in the currencies of major trade-surplus nations was required.


“Countries with significantly undervalued exchange rates committed to move towards more market-determined exchange-rate systems that reflect economic fundamentals, as China is now doing,” Geithner said in the statement.


But further efforts to stabilise international economic imbalances were necessary if the recovery from the global financial crisis was going to be successful, he added.


“This requires a shift in growth strategies by countries that have traditionally run large trade and current account surpluses, away from export dependence and toward stronger domestic demand-led growth,” Geithner said.


“This entails a range of policy changes, as you can see in the very broad range of domestic reforms being undertaken by China.”


Geithner was scheduled to return to the United States Sunday following his talks with Wang, US officials said.

Last week, China announced that Hu would visit the United States in January next year, as the world’s top two economies seek a way to sort through a host of disputes.

The US trade deficit with China ballooned to a new record in August, sharply widening the overall trade gap, according to official US data released this month.

The two sides are also at odds over a series of trade disputes and human rights issues, such as the case of jailed dissident Liu Xiaobo, who was awarded the 2010 Nobel Peace Prize, sparking Beijing’s anger and Washington’s praise.

Source: SGGP

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Geithner in China for talks on economic ties

In Uncategorized on October 24, 2010 at 7:54 am

BEIJING, Oct 24, 2010 (AFP) – US Treasury Secretary Timothy Geithner held talks with his Chinese counterpart Sunday on economic ties, likely touching on the thorny issue of China’s currency, which Washington believes is undervalued.


Geithner met Vice Premier Wang Qishan in the eastern coastal city of Qingdao a day after a Group of 20 finance ministers meeting wrapped up in South Korea, a US official said.


“The two sides exchanged views on US-China economic relations and the preparation for the (G-20) leaders summit in Seoul,” a statement released by the US Embassy said following the talks.


US President Barack Obama is likely to meet Chinese President Hu Jintao on the sidelines of the summit in Seoul from November 11-12. Obama is scheduled to attend the meeting, but Hu’s attendance has not been officially announced.


US officials refused to detail the specifics of the Geithner-Wang talks, but they likely included China’s currency, the yuan, which Washington believes is being kept grossly undervalued in order to help Chinese exporters.

US Treasury Secretary Timothy Geithner arrives at a press conference following the G20 Finance Ministers and Central Bank Governors meeting in Gyeongju, S. Korea on October 23, 2010. AFP

China counters that irresponsibly loose US monetary policy is driving down the dollar and causing a wave of capital to flood emerging markets in search of higher yields.


In a statement released Saturday, the US Treasury chief said the G20 meeting agreed that a “gradual appreciation” in the currencies of major trade-surplus nations was required.


“Countries with significantly undervalued exchange rates committed to move towards more market-determined exchange-rate systems that reflect economic fundamentals, as China is now doing,” Geithner said in a statement.


But further efforts to stabilise international economic imbalances were necessary if the recovery from the global financial crisis was going to be successful, he added.


“This requires a shift in growth strategies by countries that have traditionally run large trade and current account surpluses, away from export dependence and toward stronger domestic demand-led growth,” Geithner said.


“This entails a range of policy changes, as you can see in the very broad range of domestic reforms being undertaken by China.”


Geithner was scheduled to return to the United States Sunday following his talks with Wang, US officials said.


Last week, China announced that Hu would visit the United States in January next year, as the world’s top two economies seek a way to sort through a host of disputes.


Beijing has bristled at criticism from Washington about the value of the Chinese yuan, which some lawmakers have charged is undervalued by as much as 40 percent, giving Chinese exporters an unfair trade advantage.


The US trade deficit with China ballooned to a new record in August, sharply widening the overall trade gap, according to official US data released this month.

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Source: SGGP

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Robust economic recovery in East Asia, says WB

In Uncategorized on October 20, 2010 at 11:03 am

The economic recovery in Vietnam in particular and in East Asia and the Pacific in general is robust, said the World Bank in its latest East Asia and Pacific Economic Update.

The WB Update was announced at a press briefing in Hanoi on Oct. 19.


According to the Update, Vietnam ’s economy has recovered strongly with a GDP growth of 5.3 percent in 2009 and is on the way to the target of 6.5 percent this year. The nation’s foreign investment rose from USD6.9 billion in 2009 to USD7.6 billion in 2010.


In addition, manufacturing companies’ relocation of plants in Southeast Asia is benefiting Vietnam as its workers’ salaries are low and its sea-bordered position is favorable for attracting investment capital.


The Update notes that output has recovered to above pre-crisis levels throughout developing East Asia, and is expanding at near pre-crisis rates in some countries.


Real GDP growth is likely to rise to 8.9 percent in the region in 2010 (6.7 percent excluding China), up from 7.3 percent in 2009 and in line with the average growth rate during the 2000-2008 period. Private sector investment is once again driving growth, confidence is on the rise, and trade flows have returned to pre-crisis levels.


Yet, greater confidence in the region’s growth prospects and concerns about tepid economic expansion in advanced economies is creating the need for policymakers to perform a delicate balancing act — in particular, around the return of large capital inflows and appreciating currencies.


“Should inflows remain strong, especially against a background of weak global growth, the authorities will be faced with the challenge of balancing the need for large capital inflows — especially foreign direct investment — with ensuring competitiveness, financial sector stability, and low inflation,” said Vikram Nehru, World Bank chief economist for the East Asia and Pacific region.


The East Asia and Pacific Update which is published twice yearly is the WB’s comprehensive review of the region’s economies.

Source: SGGP

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ADB raises Vietnam’s economic forecast to 6.7 pct

In Uncategorized on October 13, 2010 at 3:56 am




ADB raises Vietnam’s economic forecast to 6.7 pct


QĐND – Wednesday, September 29, 2010, 20:54 (GMT+7)

The Asian Development Bank (ADB) increased Vietnam’s economic growth forecast for 2010 from 6.5 percent to 6.7 percent while lowering the inflation projection to 8.5 percent.


In its Asian Development Outlook 2010 Update (ADO Update) released in Hanoi on Sept. 28, ADB also revised upward Vietnam’s GDP growth to 7 percent in 2011 from its April forecast of 6.8 percent.


“Vietnam has consolidated its macroeconomic stability, and as a result we are making upward adjustments in our growth forecast for both 2010 and 2011, while lowering the projections for inflation,” said Ayumi Konishi, ADB Country Director for Vietnam.


According to ADB Senior Expert Lei Lei Song, Vietnam is performing well in the context of the global crisis.


“The shift from strong fiscal and monetary stimulus implemented during the global recession to a more balanced policy stance helped to stabilise financial and economic conditions and, together with the global economic recovery, paved the way for solid economic growth this year,” he said.


According to the General Statistics Office, Vietnam’s GDP growth rate reached 6.5 percent in the first nine months of 2010.


Vietnam’s neighbouring economies, such as China, continue their robust growth next year, which will help Vietnam ’s economy grow, Song added.


China’s robust growth will demand more Vietnamese exports, contributing to the Southeast Asian country’s growth, he said.


Vietnam’s exports to China will continue to surge in the future, according to the senior expert.


Director Konishi said as Vietnam is a low-middle-income country in the next ten years, the country will have to face different challenges, including how to raise the efficiency of the economy.


One of the issues Vietnam should focus on in its economic development strategy for the next 10 years is to identify its role in the ASEAN bloc, he said, suggesting the country produce higher value products in its efforts to speed up national industrialisation and modernisation.


He also recommended that Vietnam pay attention to taking measures to narrow income gap in its development plan and attach environment protection to development.


According to Yumiko Tamura, ADB Principle Country Specialist, who is also Country Deputy Country Director, developing Asia countries, including Vietnam, are recovering with speed and vigour.


ADB forecast that these countries will see average growths of 8.2 percent in 2010 and 7.3 percent in 2011.


Source: VNA


Photo: VOV


Source: QDND

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Economic growth remains high

In Uncategorized on October 13, 2010 at 3:55 am




Economic growth remains high


QĐND – Saturday, October 02, 2010, 20:19 (GMT+7)


All economic sectors have achieved high growth and many exports have improved and are likely to meet their targets a month ahead of schedule.

High growth in all fields


The General Statistics Office (GSO) under the Ministry of Planning and Investment (MoPI) says that, over the past nine months, all sectors have achieved higher growth than the period before. Economic growth increased from 5.83 percent in the first quarter to 6.4 percent in the second, and 7.16 percent in the third.


Despite the impacts of droughts and storms, agricultural production still rose by 4.6 percent compared to the same period last year and epidemics were controlled.


According to the MoPI, industrial production value increased by 13.8 percent to nearly VND 574,000 billion, a year-on-year increase of 200 percent, making it the sector with the highest growth.


Processing and manufacturing accounted for 89.4 percent of the industry’s total production value, reaching a 14.7 percent growth rate, 6 percent higher than the previous period.


Some major products achieved high growth of 16.4-121.2 percent, including powdered milk, sport shoes, glass, trucks, chemical paint and cement.


Nguyen Thanh Bien, deputy Minister of Industry and Trade, said at a meeting on October 1 that in the reviewed period the sector made up two-thirds of the country’s total export value with US$35 billion, a year-on-year increase of 33.3 percent.


To maintain growth in the three remaining months, the industry must accelerate the production of products with high consumer demand to balance supply and demand as well as to fulfill targets set for industrial production and export.


Exports made progress


Mr Bien said that, by the end of September, the country’s exports hit US$51.5 billion, up 20.5 percent compared to the same period last year. Exports in September alone reached US$6.1 billion.


The foreign directed sector’s exports in the first nine months of this year are estimated to hit US$23 billion, up 40.1 percent over the same period last year.


23 out of 26 products achieved high export growth over the past nine months, and 6 of them increased by more than 50 percent. During that time, 13 products earned more than US$1 billion from exports, with garments topping the list at over US$8 billion, up 20.6 percent.


Le Van Dao, vice president of the Vietnam Textile and Garment Association (VTGA), said garment exports surpassed US$1 billion per month over the past three months and the sector will be able to meet its set target of US$10.5 billion in November.


Dao said that garment businesses have orders for the end of this year and even for the beginning of next year. Except for the EU market, exports to major markets, such as the US and Japan have achieved high growth. Thanks to Free Trade Agreement between ASEAN, Japan, and the Republic of Korea, exports to these markets rose sharply, the RoK rose 80 percent and Japan rose 15 percent.


According to a report from the Ministry of Agriculture and Rural Development, agricultural, forestry and seafood exports are estimated to reach US$1.75 billion, bringing their total export value in the first nine months of this year to US$13.93 billion, up 23.3 percent.


Five products exporting more than US$1 billion are seafood, coffee, rubber, wood and particularly, rice. Vietnam has exported 5.6 million tonnes of rice, earning US$2.59 billion, up 12.3 percent in volume and 15.2 percent in value.


The export price of rice in September declined slightly compared to the previous month, however, it is nearly equal to that of Thailand.


As a result of price hikes, rubber exports rose significantly. In nine months, 531,000 tonnes of rubber have been exported, bringing in US$1.45 billion, up 10.9 percent in volume but nearly 200 percent in value.


Seafood exports reached US$3.5 billion in the reviewed period, leading the agricultural industry in exports and raking third in the list of products with the highest export values after garments and crude oil.


Forestry exports still gained positive results with an estimated export value of US$320 million in September, bringing the total value over nine months to US$2.6 billion.


Although coffee exports still faces difficulties, the country shipped 925,000 tonnes of coffee in the reviewed period, earning US1.23 billion, up 4.2 percent in volume and 0.9 percent in value.


Mineral products, such as coal and crude oil declined sharply. In nine months nearly 14.7 million tonnes of coal worth US$1.16 billion were exported, down 17 percent in volume but up 16.2 percent in value, while 6.08 million tonnes or US$3.67 billion worth of crude oil was exported, down 44.3 percent in volume and 22.2 percent in value.


Import-export targets to be fulfilled a month ahead


According to the GSO, imports in September are estimated to reach US$7.15 billion, bringing the total import value for the first nine months to US$60.08 billion, up 22.7 percent compared to the same period last year.


More than US$1 billion of 13 products were imported, including machinery, equipment, tools, petroleum, steel, cotton, electronics, computers and components.


The trade deficit in September was US$1.05 billion, bringing the nine month total to US$8.6 billion, accounting for 16.7 percent of total export value.


Exports have experienced strong growth since the beginning of this year, 1.6 percent in the first quarter and 17 percent in the first six months of this year. It is estimated they will triple the amount in the set plan.


It is expected that import-export value will meet the set target a month ahead of the schedule. The Government’s target for a trade deficit not over 20 percent will probably be achieved.


However, the MoIT still asked its member units and businesses to continue accelerate production to ensure the balance of supply and demand for essential commodities to meet domestic consumption and exports.


They must step up investment and capital disbursement for projects so Vietnam will less dependent on imported materials.


In addition, departments must pour more investment into projects, especially electrical projects or projects to improve the production capacity of exports.


Source: VOV


 


 


 


 


 


 


Source: QDND

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Flood-stricken Pakistan faces economic catastrophe

In Uncategorized on August 18, 2010 at 7:26 am

KARACHI, Aug 18, 2010 (AFP) – Pakistan faces economic catastrophe after the devastating floods that have wiped out farmland and ruined infrastructure, with feared losses of billions of dollars likely to set back growth by years.


The country’s worst ever humanitarian disaster has ravaged an area roughly the size of England, affected 20 million people, exacerbated a crippling energy crisis and raising fears of social unrest.

Pakistani flood survivors take shleter in a destroyed structure on the banks of Kabul River in Nowshera. AFP

“It seems we’re doomed to walking through a dark tunnel. We’re on an unending path of misery,” said Morio Pahore, a farmer from small town Thul in southern Pakistan who is now living in a tent on a highway.


Shirtless, his face burnt dark by the sun, the greying 50-year-old said he lost everything when the rains fell and the river burst its banks.


“We had goats and buffalo and a wooden hut. We had grain to eat. The river ate everything, leaving the whole family hungry and empty-handed.


“I don’t think we can start again for many years. Everything is under water and even if the river recedes, the water will be there for a long time.”


It is a tragedy repeated millions of times over for farmers and peasants across the country who saw their livelihoods washed away in minutes after the floods first hit three weeks ago.


Agriculture accounts for 20 percent of Pakistan’s gross domestic product. President Asif Ali Zardari said it would take two years to provide farmers with crops, fertilisers, seeds and food. Experts say it will take far longer.


On top of that, floods have inflicted widespread damage on infrastructure. In cities, flood waters have destroyed electricity installations, roads and phone lines.


The World Bank, which has announced a 900 million dollar loan for Pakistan, expects the economic impact to be huge, indicating that direct damage was greatest in housing, roads, irrigation and agriculture.


It estimated crop loss at one billion dollars, saying the full impact on soil erosion and agriculture could only be assessed when the water recedes around mid-September.


“We have lost around 20 percent of our cotton crops. The destruction of corn, rice, sugarcane, vegetable crops and fish farms are enormous as well,” Ibrahim Mughal, who heads the independent Agri Forum organisation, told AFP.


Damage to cotton, rice, sugarcane and maize will hit the export sector, the main source for Pakistan’s forex reserves. Textiles and agriculture account for about three quarters of Pakistan’s 21 billion dollar export target this year.


“The floods have eaten three million tons of cotton — over 20 percent of our 14 million bales for this year. It will negatively affect by 25 percent large-scale manufacturing and ultimately impact on exports,” Ashfaq Hasan Khan, a former government economic adviser, told AFP.


There are fears that Pakistan risks running up a higher fiscal deficit which would lead to increased government borrowing.


Before the floods, the country had a healthy forex reserve of 16.45 billion dollars, thanks to a 11.3 billion dollar IMF rescue package meant to stave off Pakistan’s worst balance of payment crisis and 30-year-high inflation in 2008.


After recording its lowest growth in a decade, GDP had been expected to grow by 4.5 percent in the fiscal year ending June 30, 2011, but the floods could shave at least one percent off growth estimates.


“Our assessment suggests Pakistan could achieve about 3.5 percent GDP growth rate this fiscal year,” Khan said. “It means a loss of around two billion dollars.”


Pakistan’s UN envoy in Geneva, Zamir Akram, has said reconstruction in northern areas alone could cost 2.5 billion dollars.


Food prices are already rising and there are fuel shortages in some areas.


The director general of the Pakistan Electric Power Company, Muhammad Khalid, told AFP they faced losses of more than four billion rupees (47 million dollars) due to the floods with some grid stations wiped out.


Around 1,000 villages in flood-hit districts of southern Punjab are without power, said Jamshaid Niazi, spokesman for Multan Electricity Supply Company. “Our two grid stations are badly affected,” he said.


“The loss is huge. We have to install new poles, wires, feeders etc.”


Experts have urged the government — already weak and unpopular — to move quickly, warning that the losses could fan unemployment and social unrest.


“The peasants are our lifeline, so by not helping them we are in fact committing suicide,” Agri Forum’s Mughal said.


“Jobless people can become criminals if they can’t get employment. In this case the number of such people is in the millions.”

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Source: SGGP