Vietnam says no new foreign cigarette ventures
HANOI - Vietnam has decided not to develop cigarette manufacturing
joint ventures with foreign firms in the future, official media reported on Thursday.
The Vietnam News daily quoted a government decree as saying the government would not
allow new projects on subcontracted production for foreign companies, either.
It said licences could be granted for production for export, subject to the
prime minister's approval, and businesses in which the Vietnamese partner
holds a stake of 51 percent and upwards, however.
The decree would take effect from November 11.
Vietnam's tobacco industry is state-controlled, with sales from state-run
Vietnam Tobacco Corp (Vinataba) accounting for nearly 60 percent of
the market share.
Vinataba also runs two joint ventures with British American Tobacco Plc
and Philip Morris Cos. Inc.
.
In July the Industry Ministry had drawn up a plan to restructure 22 tobacco companies nationwide to make the industry a state
monopoly by early 2003.
Official media have put the sector's annual sales at around 58 billion cigarettes in a country of 80 million.
In May, the World Health Organisation estimated that more than half the men and four percent of women in Vietnam are
addicted to smoking and 7.3 million people would die young from smoking-related diseases.
Reuters - October 25, 2001.
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