Sep 30, 2011

Vietnam - Insurers reach agreement on raising student insurance premiums

VietNamNet Bridge – Twelve non-life insurance companies and insurance company branches in Khanh Hoa province have reached an agreement on raising the insurance premiums for students, from 60,000 dong to 80,000 dong. Meanwhile, the commissions schools can get from the insurers will increase to 35-40 percent of the insurance policies’ values.


Right after the academic year 2010-2011 finished, representatives of 12 insurance companies in Khanh Hoa province, including the big names such as Bao Viet, Bao Minh, Bao Long, Pjico, and AAA, signed an agreement with the commitments on insurance premiums, liabilities, insurance benefits and the commission policies which will be applied to the 2011-2012 academic year. 

Insurance premiums increases raise anger

Under the agreement, the insurance premiums will be raised to 80,000 dong per student per year. Hien Thuc, a parent living in Nha Trang City, said that she cannot understand why the insurance premiums have been raised so dramatically.

“The newly applied insurance premiums are overly high. At the parents’ meeting recently, the teacher could not explain why the student insurance premiums have increased so sharply,” she said.

Pham Van Tu, a senior executive of PTI Insurance, one of the 12 insurers that signed the agreement, explained that with the higher insurance premiums, the liabilities will also increase.

“In previous years, when the premiums were low, parents complained that they only got small sums of money for compensation. Therefore, by raising the insurance premiums, we aim to ensure the students’ benefits,” he said.

Meanwhile, other insurers said that they need to raise the insurance premiums because of the high inflation. As the healthcare service fee and the medicine prices have increased, if the previous insurance premiums keep unchanged, in case of accidents, students will only get small sums of money for compensation.

Phung Dac Loc, Secretary General of the Vietnam Insurance Association, believes that insurers have the right to set up insurance premiums, and insurance liabilities of the services they are providing. However, he said that insurers are now allowed to discuss and get united in applying the same insurance premiums.

Insurance premiums up, commissions higher

Insurers explain that they need to raise the insurance premiums in order to be able to pay higher for compensation. However, in fact, part of the money will go to the schools’ coffers.

A director of an insurance company has revealed that under the current laws, the commissions must not be higher than 20 percent. However, in fact, insurers have to offer the commissions of 35-40 percent to schools. Besides, insurers are always asked to spend additional money to sponsor the important events of the schools.

In general, insurers and schools signs the agreements which stipulate that 10 percent of the commissions will be paid to insurance agents, while the other 10 percent will be paid to the schools for taking necessary measures to minimize risks. So, a question has been raised that where the remaining 15-20 percent of commissions will go?

Vo Thi Thanh, a parent, whose child is going to the Phuoc Dong Primary School in Nha Trang City, said that she does not want to take insurance polices when she knows that 40 percent of the sum of money is not the real value of the products.

A behavior of competition law violation

Bach Van Mung, Director of the Competition Administration Department (CAD), an arm of the Ministry of Trade and Industry, has affirmed that the 12 insurers that signed an agreement on raising insurance premiums have violated the current competition law.

Some years ago, CAD once released a decision to punish 19 insurance companies that joined hands to increase the vehicle insurance premiums.


Source: NLD



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Vietnam - Northern Vietnam fronts typhoon Nesat

VietNamNet Bridge – Typhoon Nesat, the fifth major storm this year, is forecast to strike between the northern provinces of Quang Ninh and Ninh Binh today, September 30; with wind speeds expected to reach 117km/h.

Meanwhile, rising floodwater in the Mekong Delta - the highest level over the past decade - has broken several dykes in upper-stream provinces, killing at least three people from An Giang Province.

The government has asked provinces from Quang Ninh to Ninh Binh to evacuate all people living in areas vulnerable to Typhoon Nesat before the storm hits land, to strengthen dykes and to mobilize forces to help farmers harvest crops and the preparation of rescue resources.

According to the National Hydro-meteorology Forecast Centre, the typhoon will weaken when it reaches the mainland but it will bring strong winds, rough seas and heavy rains in the northern and central provinces. Sea water is forecast to rise to 3-5m high and rains in the northern region, including Hanoi, will reach 150-300mm.

Meanwhile, a cold spell was forecast to hit the northern region on September 30 with the temperature in Hanoi dropping to 20-21 degree Celsius, the center aid.

Deputy Prime Minister, Hoang Trung Hai, has instructed the National Steering Committee for Flood and Storm Prevention and Control to set up three missions to monitor storm prevention efforts at Quang Ninh, Hai Phong, Thai Binh and Nam Dinh provinces and another mission to check flood control work in the Mekong Delta region.

Provinces from Quang Ninh to Nghe An are instructed to ban vessels from operating offshore and urge local authorities to prepare houses, mines, ports and construction projects ahead of the storm.

Local authorities in these provinces have actively taken measures to cope with the flood and prepared rescue forces and vehicles, and the border guard reported more than 39,700 vessels with over 179,000 people on board have been directed to anchor in safe areas.

In the Mekong Delta province of An Giang, 4,000 ha of rice are inundated and more than 2,000 houses flooded. More than 100 households moved to safer places in face of rising floodwater and the predicted effects of Typhoon Nesat. So far, the floods have broken 125m of dykes in the province and damaged 110km of roads.

Flood waters in the Tien and Hau rivers, the two main tributaries of the Mekong Delta, have been rising fast in recent days because of high tides and floods in the upper Mekong River and are forecast to continue to rise next month.

In An Giang Province, the Tien River's water rose to 4.75m, 0.25m above the third warning level and is forecast to rise to 4.9m on October 2. The Hau River's water rose to 4.1m and will continue to rise to 4.3m on October 2, 0.3m above the third warning level, reported by the National Steering Committee for Flood and Storm Control.

In Dong Thap Province, a 30-meter section of the Ca Mui dyke in Tan Hong District's was broken on Wednesday, flooding more than 520ha of rice. The Tan Hong People's Committee mobilized thousands of people and resources to reinforce the dyke, which was eventually overcome by the rising waters and five other key dykes in Tan Hong, which protect more than 3,500ha of rice, are being threatened by floods.

More than 1,090 ha of rice in Kien Giang Province were inundated and nearly 400ha of which was destroyed. The local authorities have given VND9 billion ($432,000) for farmers to pump water out of rice fields.

More than a thousand soldiers, police and local armed forces have been mobilized to help localities protect dyke systems, raising the total number of people joining this force to over 14,000, who hope to strengthen more than 380km of dykes.

Local authorities have evacuated people in high-risk areas to safer places and supported local citizens to harvest crops and mobilize all available forces to protect dykes.

Pupils of pre-schools, primary schools and secondary schools remain out of school due to the floods.

Floods kill eight in Mekong Delta 

Floods caused by Typhoon Nesat have so far claimed the lives of eight people in the Mekong Delta, according to the National Steering Committee for Flood and Storm Prevention and Control. 

An Giang Province has suffered the most, with 3,500 houses flooded, nearly 100km of roads and 4,000ha of rice inundated, and 125m of burst dykes. 

According to the National Centre for Hydro – Meteorological Forecasting, the typhoon is moving west-northwest in the direction of the northern provinces of Quang Ninh and Nam Dinh. The centre has warned northern provinces of the likelihood of flooding and landslides.

In several northern provinces including Quang Ninh and Hai Phong, people from flood-prone areas have been told to evacuate, while students were given the day off school yesterday as a safety precaution. In the north central province of Thanh Hoa, students have been given two days off to help their families harvest the rice.

People in Quang Ninh, Hai Phong prepare to cope with typhoon Nesat:






















































































Typhoon Nesat landed in Quang Ninh and Hai Phong at around 12pm, September 30, blowing away the roofs of hundreds of houses. In Hanoi, over 20 trees uprooted in strong wind. Here are the first photos of storm in Quang Ninh and Hai Phong:







Wind blew up the iron roof of a house in Quang Ninh.




A tree collapse in Ha Long City.





A fishing boat was sunken in Van Don, Quang Ninh.









Some roads in Ha Long city are flooded.























PV


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Vietnam - Many foreign investors cancel business expansion plans in Vietnam

VietNamNet Bridge – Representatives of foreign invested enterprises’ associations say a lot of their member companies have decided to cancel the plans to make further investments in Vietnam, while keeping the “wait-and-see” attitude.


The World Economic Forum (WEF) has released the 2011-2012 report on the global competitiveness late last week, which showed that Vietnam fell by six grades from the last year’s report. Prior to that, a lot of foreign investors expressed their optimism about the investment environment in Vietnam which has become less and less attractive.

Cheap labor force – the advantage became a weak point
The cheap labor force was once considered the biggest attractiveness of the Vietnamese market, which helped investors optimize their investment costs in Vietnam.

However, a lot of foreign invested enterprises have commented that the advantage has become a weak point when assessing the quality of the labor force in the market with 80 million people.

Foreign invested enterprises complain that they have to retrain workers after the recruitment, because they cannot find the workers ready for work without training. Of course, the enterprises have to spend big money and time on re-training.

In 2010, Intel Product Vietnam spent over 160 billion dong to sponsor the education cooperation and labor force development in Vietnam. 

Meanwhile, Erdal Elver, Chair and Managing Director of German Siemens, said that the company has to spend a lot of time and money to seek suitable personnel for the key positions in its plans to expand the company’s operation. However, it is always very difficult to find suitable candidates. Even after finding the people who can meet some key requirements, the company still has to send the people to the training courses in the region and in Europe.

Elmar Dutt, Managing Director of Tanner Vietnam, said that in order to find the people suitable for the posts, both officers and managers; the company always has to allocate budget for training the personnel for three years, both in professional knowledge and English skills.

Wait and see

When asked about the investment plan in Vietnam, representatives of EuroCham and the German Business Association GBA, said that member enterprises tend to wait and hope for more positive signals of the national economy to come. Meanwhile, in the immediate time, the enterprises have to cut down expenses, restructure production and try to seek new sources of income.

The “wait and see” attitude has been shown at the surveys conducted by EuroCham recently which showed the sharp falls in the confidence index of the enterprises in the business prospect in the Vietnamese market.

The business environment index has been decreasing steadily, from 79/100 points in the first quarter to 70 points in the second quarter and then to 63 points in the third quarter.

EuroCham’s Chair, Alain Cany, said that the high two-digit inflation rate remains the leading concern of the enterprises from Europe. 56 percent of enterprises which joined the survey in the third quarter of 2011 said that the high inflation has significantly affected their business, while 6 percent said the high inflation has been threatening their business.

AusCham’s Deputy Chair, Brian O’Reilly, also said that high inflation proves to be the biggest concern for the Australian investors in Vietnam. He said that Australian investors still want to make investment in Vietnam, but their interests in Vietnam have been lessened.

Meanwhile, Elmar Dutt, who is also GBA’s Chair, said that the biggest worry for German businesses is the prolonged uncertainties of the Vietnamese economy. German investors, who once thought about Vietnam as the number 1 destination in ASEAN region, now rethink their strategy. A lot of German companies are thinking of shifting their business to Thailand, Malaysia and Indonesia where they believe the business environments are more stable.


Source: TBKTSG



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Taiwan - Life-saving designs on show in central Taiwan


Taipei (The China Post/ANN) - The National Hsinchu Living Art Centre (NHCLAC) in central Taiwan will hold an exhibition on new designs of practical uses for people caught in distress or natural disasters from October 1 to 16.

On display will include 40 award-winning designs and products selected from more than 200 entries submitted by designers under age 35 in a contest held by the NHCLAC under Taiwan's Council for Cultural Affairs.

The main theme of the 2011 design competition is on disaster prevention and rescue to encourage designers to develop products that can effectively deal with abnormal situations in life.

People visiting the exhibition at the NHCLAC will not only have the chance of studying a wide range of feasible and useful items but can also get inspiration to come up with brilliant ideas that can help people cope with disasters like earthquakes, floods, tsunami or nuclear power plant incidents.

The exhibition, which is part of the 2011 Taipei World Design Expo, will also be held at the National Changhua Living Art Centre in Changhua for people in central Taiwan October 22-November 3.

The award-winning designs and products include handy ACR equipment that can more effectively help people in a medical emergency to augment other measures like CPR.

The ACR equipment is easy to use and can be installed at all public places to give timely medical aid when there are no people familiar with CPR available.

An "all-in-one" knockdown life-saving walking cane is also a handy tool in emergency. It contains useful instruments like flash light, alarm light, water container and filter, power supply, medical aid, etc., All these items are optional depending on personal needs.

The utility cane is ideal for use by senior citizens in daily life, for mountain climbers to cope with unusual situations, and for people in disasters.

Details about the exhibitions and addresses of the centres in Hsinchu and Changhua are available at websites www.nhclac.gov.tw or www.detekt.com.tw/nhclac2011. Interested people may also call (03) 526-3176 ext. 204.

By News Desk in Taipei/The China Post | ANN



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Japan - Japan sizes up task of Fukushima waste disposal


TOKYO (Reuters) - Japan faces the prospect of removing and disposing of 29 million cubic metres of soil contaminated by the world's worst nuclear crisis in 25 years from an area nearly the size of Tokyo, the environment ministry said in the first official estimate of the scope and size of the cleanup.

Six months after the March 11 earthquake and tsunami triggered reactor meltdowns, explosions and radiation leaks at Fukushima Daiichi nuclear power plant on Japan's northeast coast, the size of the task of cleaning up is only now becoming clear.

Contaminated zones where radiation levels need to be brought down could top 2,400 square km (930 square miles), sprawling over Fukushima and four nearby prefectures, the ministry said in a report released on Tuesday.

Tokyo Metropolitan prefecture has a total area of 2,170 square kilometers (840 square miles).
The environment ministry has requested an additional 450 billion yen in the budget for the fiscal year from next April, Kyodo news agency reported.

The government has so far raised 220 billion yen ($2.9 billion) to be used for decontamination work, but some experts say the cleanup bill cost reach trillions of yen .

If a 5 cm (2-inch) layer of surface soil, likely to contain cesium, is scraped off affected areas, grass and fallen leaves are removed from forests, and dirt and leaves are removed from gutters, it would amount to nearly 29 million cubic metres of radioactive waste, the document showed.

This would be is enough to fill 23 baseball stadiums with a capacity of 55,000 spectators, and the government must decide where to temporarily store such waste and how to dispose of it permanently.
Japan has banned people from entering within a 20 km (12 mile) radius of the plant, located about 240 km (150 miles) northeast of Tokyo and owned by Tokyo Electric Power Co. Some 80,000 people were forced to evacuate.

The government aims to halve radiation over two years in places contaminated by the crisis, relying on both the natural drop in radiation as time passes and by human efforts.

The ministry's estimate assumes that cleanup efforts should be mainly in areas where people could be exposed to radiation of 5 millisieverts (mSv) or more annually, excluding exposure from natural sources.

The unit sievert quantifies the amount of radiation absorbed by human tissues and a mSv is one-thousandth of a sievert. Radiation exposure from natural sources in a year is about 2.4 mSv on average, the U.N. atomic watchdog said.

($1 = 76.655 Japanese yen)

(Editing by Ed Lane)



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Singapore - Collection of Lee Kuan Yew's speeches launched

SINGAPORE: A collection of former Minister Mentor Lee Kuan Yew's speeches, interviews and dialogues over four decades has been launched on Friday. 

Published by Cengage Learning, it is drawn from the collections of the National Archives of Singapore, as well as materials deposited over time from the office of the Press Secretary to Mr Lee, and the former Singapore Broadcasting Corporation.

It's also taken from agencies such as the Prime Minister's Office, Ministry of Information, Communications and the Arts.

Cengage Learning said the intent of publishing the collection is to give readers a better understanding of Mr Lee's role in the founding and development of modern Singapore.

Areas covered include Mr Lee's views and statements on Singapore's separation from the Federation of Malaysia, independence, Singapore's nation-building process and leadership succession.

Speaking at the launch of 'The Papers of Lee Kuan Yew', Mr Lee said whether for reflection or scrutiny, the papers capture issues and decisions that were both popular and unpopular, but necessary for the time.

And the compilation of his speeches may allow Singaporeans to understand the history in nation building, and more importantly to learn the lessons from the past.

He stressed that Singaporeans have to understand the underlying values on which the nation was built.

The collection is presented in a 10-volume set and is available in a case-bound edition at US$2,800.

The next series of Mr Lee's works will cover his term as Senior Minister to current years, and is planned to be released in the last quarter of 2012.

- CNA/cc



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Hong Kong - CapitaMalls Asia forays into Hong Kong

SINGAPORE: Singapore-listed mall developer CapitaMalls Asia has received in-principle approval for a secondary listing in Hong Kong.

It plans to list by way of introduction, without raising any new equity, on the mainboard on October 18.

CapitaMalls Asia may not be raising new capital from its listing in Hong Kong, but the move will allow the mall developer to widen its investor base here in Hong Kong and by default China.

This is expected to help improve its market visibility and trading liquidity - which then opens up additional sources of funding for the company.

CapitaMalls Asia is a unit of CapitaLand - Southeast Asia's biggest developer by market cap.

It has shopping malls across Asia, but China is seen as a key market.

Currently, the Chinese mainland accounts for 44 per cent of its total property portfolio, by market value.

"Today, our exposure in China is about US$2 billion. But in terms of the assets that we manage, it's already about US$8 billion, because of the funds that we manage. What we mean is that we want to double that, in the next three to five years to US$16 billion," said Mr Lim Chee Beng, CEO of CapitaMalls Asia.

Earlier this week, CapitaMalls Asia formed a US$1 billion joint-venture with Suzhou Industrial Park to develop a retail mall and two office towers.

It's also teaming up with Hong Kong developer Hang Lung Properties to build high-end shopping malls, with its first project to be in Kunming.

CapitaMalls Asia has a healthy pipeline of projects across the region and is planning to add another 26 malls in the next three years, on top of the current 70.

"We view this as a long-term strategic move. We recognise that (liquidity is not going to be there), but that's no worry for us because we're well traded in Singapore. But over time, we believe that will be corrected," said Mr Lim.

In initial market reaction to the news, research house RBS said CapitaMalls Asia's longer-term valuation may move closer in-line with its Hong Kong partner Hang Lung Properties, currently trading at 0.9 times fiscal 2011 earnings.

CapitaMalls Asia now trading at 0.77 times.

- CNA/cc



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Myanmar - Myanmar regime ready to work with Suu Kyi: minister

YANGON - Myanmar's government is ready to work with opposition leader Aung San Suu Kyi and her party if it re-enters the official political arena, a minister said Friday after talks with the dissident.

"If the NLD (National League for Democracy) officially registers under the law, we always welcome working with the NLD," labour minister Aung Kyi, the liaison between Suu Kyi and the regime, told reporters.

Suu Kyi's party won a 1990 election but was never allowed to take power.

It boycotted the first ballot in 20 years, held last year, largely because of rules that would have forced it to expel imprisoned members. As a result it was delisted as a political party.

Suu Kyi, the 1991 Nobel Peace Prize winner, said after Friday's talks that she would discuss the issue of re-registering with senior party members based on political developments.

"We accept that an election is a part of a democratic system," she added.

Presidential adviser Ko Ko Hlaing told AFP earlier in September that the law that prevents prisoners from being party members could be revised.

Myanmar is now ruled by a nominally civilian government but its ranks are filled with former generals.

Suu Kyi has hailed signs of political change in Myanmar after almost half a century of military rule, but says it is unclear whether President Thein Sein will be able to carry through his reform pledges.

The labour minister said he also discussed the government's plans for another prisoner amnesty with Suu Kyi.

The government has not yet said whether the anticipated release would include any of the country's roughly 2,000 political detainees.

"We agreed to continue further dialogue," Aung Kyi added.

The meeting, which lasted more than an hour, was the third between the pair since the democracy icon's release from seven straight years of house arrest last November, shortly after the widely criticised election.

The opposition leader also met Thein Sein -- a former junta prime minister -- for the first time in the capital Naypyidaw in August.

- AFP/ls



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Myanmar - Myanmar suspends dam project after rare outcry

YANGON - Myanmar's new army-backed government has suspended a controversial $3.6 billion hydroelectric power project following rare public opposition, a government official said on Friday.

Opposition to the dam has been building as pro-democracy and environmental activists test the limits of their freedom under the new nominally civilian regime, which is dominated by former military officers.

President Thein Sein told lawmakers in the capital Naypyidaw that work on the Chinese-backed Myitsone dam on the Irrawaddy River in northern Kachin state would be halted during the term of the current government.

"The president decided to stop the dam project because the government is elected by the people and the government has to respect the will of the people," said the official, who did not want to be named.

Environmentalists have warned the dam project would inundate dozens of villages, displace at least 10,000 people and irreversibly damage one of the world's most biodiverse areas.

For the people of Kachin, the Myitsone dam has come to symbolise the struggles they have faced for decades as a marginalised ethnic group in the repressed nation under almost half a century of military rule.

Police last week arrested a man who staged a rare solo protest against the project outside a Chinese embassy building in Yangon.

They also blocked a rally this week by people seeking the release of political prisoners and an end to the Myitsone project, electricity from which is destined for neighbouring China. No arrests were made on that occasion.

"For the contract with the Chinese company, both sides will discuss it based on goodwill," the official said.

Protests are rare in authoritarian Myanmar, where pro-democracy rallies in 1988 and 2007 were brutally crushed by the junta. Demonstrators must have permission from the authorities.

- AFP/al



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