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The Vietnam News

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Vietnam PM says SARS outbreak has hurt tourism

TOKYO - Vietnamese Prime Minister Phan Van Khai said on Wednesday that a deadly flu-like virus that has wreaked havoc in Asia has led to a drop in travellers from Japan, putting a dent in his country's tourism industry. Khai stressed, however, that Vietnam had taken steps to contain Severe Acute Respiratory Syndrome (SARS) and that the scope of the outbreak was limited.

"The disease has had a significant impact on tourism in Vietnam. Tourists from Japan in particular have decreased sharply," said Khai, speaking through an interpreter, adding that flights between Japan and Vietnam have been hit by cancellations. Hopes that Vietnam had shut the door on SARS were scuttled when reports of more SARS infections in the southeast Asian country came to light this month. The World Health Organisation said another four cases of SARS have been reported since April 3, all in rural Ninh Binh province.

Until the emergence of the four cases, there had been no incidences outside of the northern city of Hanoi and Vietnam had hoped the disease had been beaten. The SARS virus has killed more than 100 people and infected more than 2,800 people in about 20 countries. There have been four deaths from SARS in Vietnam and 66 infections.

Japanese investment

A major aim of Khai's visit to Japan that ends on Saturday, is to secure an increase in Japanese investment. Japan is Vietnam's largest trading partner and was its third biggest foreign investor between 1988 to 2001 with total investment of $4.1 billion, Vietnamese data shows.

"I want Japanese investors to be more daring in making investments," said Khai, who noted that Japan and Vietnam on Monday had agreed in principle on an investment accord. The accord, when implemented, would seek to encourage Japanese investment in Vietnam by ensuring Japanese firms are treated the same as Vietnamese firms when applying for permission to conduct investment. It would also grant Japan most favoured nation status for investment. Once it comes into effect, the accord would also prohibit the setting of requirements on the use of locally made parts.

Japanese officials say this could help prevent the recurrence of spats similar to the one that flared up last September when Vietnam irked foreign investors by suddenly imposing quotas on imported motorcycle parts. When Vietnam imposed the import limits, which were dropped in January, three of the biggest motorbike assemblers in Vietnam -- Japan's Honda Motor Co Ltd , Suzuki Motor Corp and Yamaha Motor Co Ltd <7272.T> -- either halted or slowed output.

Khai also called for an increase in trade with Japan. "I would like Japan to create conditions so Vietnamese products can get into Japan easier so that the amount of trade can increase," he said.

By Masayuki Kitano - Reuter - April 9, 2003.


SARS hits Vietnam's tourist industry

Vietnam's tourism industry is facing a serious crisis, with the hotel occupation rate falling last month to 40 percent due to the pneumonia outbreak. A senior official from the National Tourism Administration, Vu The Binh, said SARS had pushed the tourism industry into a serious crisis. Mr Binh said many tours were cancelled and the number of international arrivals, especially from Europe and Japan, were down to a critical level while the hotel occupation dropped from 98 percent in the first two months to 40 percent in March.

According to the World Health Organisation, the disease has infected 62 in the country, of which four have died and 44 recovered. Everyday, thousands of foreigners enter Vietnam with about 30 percent of them coming from China and Hongkong, where most of the SARS fatalities have been.

ABC Radio Australia - April 10, 2003.