~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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[Year 2002]

Vietnam to end state telecommunications monopoly

HANOI - Vietnam's 27-year state telephone monopoly will end in June when a second company begins offering limited service in Ho Chi Minh City, official media reported Wednesday. Saigon Posts and Telecommunications, a joint-stock company, has been licensed to begin offering service starting June 1, according to the Thanh Nien (Youth) newspaper.

"This will be a breakthrough and a good sign for telecommunications providing service," Thanh Nien reported. All telephone, Internet and mobile phone services in Vietnam now must go through state-owned Vietnam Posts and Telecommunications (VNPT). However, Saigon PostTel will only be permitted to operate in limited areas of Ho Chi Minh City rather than to expand its service to the entire city with a population of 5 million and other cities and provinces. The rule effectively limits the number of Saigon PostTel's subscribers to about 500,000.

Another military-owned company, the Army Electronics and Telecom Company (Vietel), is also seeking a license to join the market. Vietnam has two mobile phone service providing companies, and five Internet service providers, though all must be licensed and route their systems through VNPT.

Deutsche Presse Agentur - March 13, 2002.


Vietnam's Cashews to be Sold Online

HANOI - Vietnamese cashew nuts will make their Internet debut today under a new deal to sell them online through the Securities Trading Centre. The nuts will be traded via the US Nuttrade.com website from the STC floor, marking the first time that an agricultural commodity is traded thus, according to the Vietnam Cashew Association (VCA).

VCA is partnering with Nuttrade, a US global industrial nut trading group, to jointly sell cashew nuts over the Internet, association officials said. Nuttrade is providing computer equipment and software free of charge to the HCM City STC for transactions. With the Nuttrade system, cashew companies trading on the HCM STC will have direct access to the latest market information on trading partners, prices, crops, and weather in the region and around the world.

Cashews will be traded between 2-5pm three times per week during a six-month pilot phase, according to the VCA, but trading sessions may be extended to five times weekly during harvest seasons or periods of rising demand. Cashew buyers will be charged 0.5 per cent fee on the total value of each transaction, the VCA says. VCA reports that Vietnam exports about US$150 million of cashews each year. Despite unfavourable conditions last year, cashew exports topped 38,000 tonnes, valued at US$125 million.

These figures have drawn the attention of a number of American and European importers, which have since signed up to purchase Vietnamese cashews over the Internet. Online deals comprise 90 per cent of the world cashew market and 60-70 per cent of all other nuts. The arrival of online trading should create plentiful new opportunities for the Vietnamese cashew, the association said. Some experienced traders have expressed doubt that the new online market will succeed in Vietnam in the short term.

They point out that the online trading requires both sellers and buyers to fully understand international practices and to act with a high level of professionalism. If there are excessive offers but too few buyers, local traders will need to follow the rules of the free market and adjust prices or learn to be patient, experts say. It may also be difficult to broaden the scope of trading if demand is flat and supply is not increasing. The success of Nuttrade.com will attract international buyers to Vietnam, and hopefully pave the way for other industrial nuts such as coffee and pepper to enter into online trading world.

Vietnam News Agency - March 13, 2002.