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Bài 58: Tourist turns to sustainable tourism When Frédéric Tiberghien Frédo first visited Vietnam 20 years ago as a tourist, he wanted to see more of the country.He was already linked to the country, being born to a French father and Vietnamese mother, but he lost both of them in an accident in France when he was young, and was raised by his maternal grandmother, according to a 2011 report in the Kien Thuc (Knowledge) online newspaper He worked as a carpenter and a horse keeper in France and England before deciding to visit his mother's native country.In his fifties now, he is no longer a tourist Vietnam has become home And, he is known as Frédo Binh Frédo's transformation from a curious tourist to a charmed one and to a tour operator himself has been accompanied by a motivation to preserve the country's beauty, the culture of its ethnic minority residents and improve the living standards of communities in a sustainable manner Over the years he has initiated community projects in many localities in the northern highlands In Cao Bang Province, he established a small museum introducing local culture to foreign tourists In Lao Cai Province, he built a bridge that made it easier and safer for children to attend school In Yen Bai Province, he founded a nursery school and a community "culture house." He has also helped improve sanitary facilities like toilets and septic tanks at various localities His most impressive achievement, however, is probably the eco-tourism project he began in 2006 in Yen Bai Province's Ngoi Tu Village, which is home to Dao ethnic families Because of the project, locals are able to augment their incomes from farming by participating in the tourism industry They have also developed a better awareness of environment protection Many villagers have become professional tour guides able to speak foreign languages "It is slow but lastingly effective to promote Vietnam's image through sustainable tourism," Frédo told the An ninh thu (Capital security) newspaper "Green tourism is not only about sustaining the environment where it happens, but also about how local culture is conveyed to visitors," he said When he first arrived in Vietnam and visited Hanoi's famous Old Quarter, he felt the "depth of the culture of the peaceful country." In 1994, he took adventurous trips to the northern highlands on a Minsk a motorbike produced in Belarus During those trips, he was not only charmed by the beautiful landscape but also the culture of ethnic minority people he met "Then I suddenly thought about doing tourism to earn a living," he said Frédo said he printed ads about his motorcycle tours and posted them at places frequented by foreign tourists in Hanoi "Unexpectedly," it was "effective," as he received many phone calls and bookings, he said In 1997, he founded a travel company called Compagine Bourlingue, which was also known as Freewheeling Tours in English He asked the ethnic minority residents to join him in offering homestay experiences for foreign tourists in their villages Years later, he came upon Ngoi Tu Village on the banks of the Thac Ba Lake in Vu Linh Commune He was totally captivated by the scenery and the way local people preserved their traditions and customs So, he bought a stilt house there and developed it into an eco-lodge that can accommodate 60 people Once again, he invited local people to join him in the eco-tourism project He taught them French and English He also sent them to Hanoi, where they were trained in being tour guides as well as other aspects of the hospitality industry He also worked to raise their awareness about protecting environment and their culture, and earning a living in sustainable ways Speaking about his project, Luong Xuan Hoi, secretary of Vu Linh Commune's Party Unit, said local people's life has changed a lot since they began participating in tourism Previously, it was not easy for them to earn more than VND2 million ($94.65) a month, as they only did farm work, but now, that has changed The way Frédo has done tourism, moreover, has contributed to the preservation of local culture, the official said Frédo himself has changed a lot over the years He can speak both Vietnamese and the Dao people's language fluently Although he is based in Hanoi, he visits and stays in the village often, and has learnt a lot about the Dao culture, from the meaning of pillars in their traditional houses to the practice of burning incense and offering chicken to the spirits before building houses He loves in particular the festival that Dao people celebrate at the beginning of the spring to mark the start of a new rice season "It is a beautiful aspect of culture," he said "People thank the plants, heaven and the earth for giving them a good life and harvest." He regularly takes his 10-year-old son to Ngoi Tu, where the boy plays with local children And, like his father, he has learnt to speak Vietnamese and the Dao language very well Frédo is divorced and has two children Trang 59 : Lack of government support blamed as more firms shut The number of companies shutting up shop rose last year while fewer new ones were incorporated, reflecting the poor business environment and the government's failure to support business According to a recent report by the Vietnam Chamber of Commerce and Industry (VCCI), the number of businesses that shut down or suspended operations increased by 6.29 percent last year to over 54,200 Most of them were in the finance, banking, and real estate The number of newly established firms declined by 9.9 percent to 69,900 Their total registered capital was estimated at VND467.3 trillion (US$22.3 billion), also down 9.9 percent from 2011 Vietnam now has just 300,000 firms, compared to nearly 700,000 during the past decade Most of firms operating in Vietnam now are mainly microenterprises, which have less than 10 employees, and small ones with 10-50 workers In 2011 some 39 percent of medium-sized companies reduced their staff size and became small firms while percent of small firms became microenterprises The average number of staff in a Vietnamese firm decreased to 34 in 2011 from 74 in 2002 Pham Thi Thu Hang, general secretary of the VCCI, said Vietnam lacks medium-sized and large enterprises that take part in the global supply chains Only 2.1 percent of firms are medium-sized, the report said Ineffective measures The VCCI blamed the situation on the poor business environment and the government's ineffective support measures, which benefit only large firms According to the Doing Business 2013 report by the World Bank, Vietnam ranks 99th out of 185 economies for ease of doing business The VCCI said the country's business environment has not improved much over the past decade and remains below average Administrative procedures, despite being reformed for many years, still remain tortuous, hindering businesses, Vu Quoc Tuan, chairman of the Vietnam Handicraft Village Association, said The government has proposed amendments to the tax law to cut corporate income tax and also reduced interest rates to help businesses But companies said the measures have not really worked since their biggest difficulty now is to liquidate inventories, not high tax or interest rates Some 73 percent of firms polled by the VCCI said large inventories were their biggest concern The Ministry of Finance last week announced plans to cut corporate income tax to 22 percent on January next year from the current 25 percent It plans to bring it down further to 20 percent in 2016-20 However, the 22 percent rate would apply earlier to small and medium-sized enterprises from July as they are most vulnerable in the depressed economy, Deputy Minister of Finance Vu Thi Mai said The ministry has also announced a 30-50 percent cut in value added tax for developers of affordable housing from July Mai said they play an important role in helping low-income buyers and bringing greater liquidity to the property market Nguyen Nhan Phuong, chairman of the Association of Small and Medium-Sized Enterprises of Bac Ninh Province, said the tax reduction would not benefit small and medium-sized firms that are already in deep trouble It benefits only firms with sound operation that are making profits, he said "Most of the weak companies, which should have received support from the government, will not benefit because they have no profits to pay taxes," he explained Small and medium-sized firms now find it hard to sell their products, and the government should help them study and update them on foreign markets, he said Many companies, whose products can be competitive in foreign markets, have not been able to enter them, he added Meanwhile, the State Bank of Vietnam has cut lowered the maximum deposit rate to 7.5 percent from percent, the first cut this year following six in 2012, raising expectations of cuts in lending rates But economist Le Tham Duong said interest rate cuts no longer excite expectations for the economy "Why will firms borrow when demand is weak and inventories remain high?" he asked Tran Thi Hong, director of electrical home appliances maker Phuong Hong, said interest rates, despite being cut, remain too high especially for small firms Her company's bank loans carry over 12 percent interest, but all are short-term, since she does not dare make long-term credit decisions now "We will borrow only when the rates go below percent," she said The VCCI suggested that the government should support firms by minimizing the import of unnecessary products, thus boosting demand for domestic products Trang 60 : Chinese imports monopolize major vegetable market Cho Lon in Ho Chi Minh City, famous as Vietnam's Chinatown, a repository of Chinese culture, has a rival The Hoa Dinh Market, around 30 kilometers from Hanoi, could well be hailed as another Chinatown The market in Bac Ninh Province is one of the biggest agricultural produce suppliers in the country, and most of its products come from across the border It used to trade in local products which were famous nationwide, but many farmers since the late 1990s have left their fields and switched to trading Chinese produce which are several times cheaper than local ones and thus earns them bigger profits A major problem with this is the lack of official supervision of the whole process The imports are not taxed or checked for safety The market trades between 200 and 400 tons of all kinds of vegetables every day, providing stock for distributors and vendors to sell to consumers in smaller markets in Hanoi and other provinces, as also down south in Ho Chi Minh City "A hundred percent Chinese You won't find a Vietnamese thing," said a trader named The The owns a warehouse of around 300 square meters that stores 60-70 tons of garlic and onions in packages labeled with no other language but Chinese, and it is among many such warehouses in the bustling market He told undercover Thanh Nien reporter to feel safe taking stock from his store, as "the Chinese have special preservation methods and their produce can be stored for a long time without getting rotten." The produce is transported from Tan Thanh border gate in Lang Son Province, around 100 kilometers away, after it is imported from Hunan, Sidong, Jiangxi and Jiangsu provinces in China An area more than 60,000 square meters (around 15 acres) near the border, three times larger than Hanoi's major wholesale market Long Bien, is used to gather the imported produce before they are picked up by trucks Customs figures compiled over the first five months this year show that Chinese carrots and potatoes are priced between VND3,500-3,700 (around US16 cents), between two to three times cheaper than prices in Hanoi markets Chinese raw produce imports to Vietnam are exempt from tariffs and trade in fresh vegetables is free of value-added tax Nam, a dealer at the border who owns trucks that deliver the Chinese produce to Bac Ninh, said suppliers like The would resell them at prices many times higher "They can pocket VND140-150 million ($6,640-7,110) a trip (of around 30 tons) "That is not to mention times when prices of Chinese produce drop even lower, and traders with large pockets would store a lot of these, waiting for prices to go up and make even bigger profits." Vendors buying from The would accept the prices as they can mix the products with local ones and tell buyers that they are Vietnamese produce so that they can charge higher prices Some vendors not even bother to mix them, and just sell Chinese imports as locally produced fruits and vegetables They said the Chinese imports are not only cheaper, but also look better because they are big, plump and smooth, though they not smell as good as locally grown produce Nam said dealers like him also have their own way to increase profit by overloading their trucks, usually up to three times its designed capacity A 10-ton truck would carry 30-35 tons "The more we can carry, the more money we make." The trucks usually leave the border at night and arrive early in the morning, and traders in Bac Ninh are charged VND220,000 ($10) a ton for the delivery Trucks coming from around the country to buy the stock also arrive at night Nguyen Van Cuong, head of Vo Cuong ward in the province's capital town, also named Bac Ninh, said many local farmers have become rich pretty fast with trade in Chinese produce Some families have been able to buy their own trucks for transporting the goods, he said Cuong said there are around 20 major household businesses that have become prominent in the region They earn between VND2-3 billion ($95,000-142,300) a year, locals said Vietnam's per capita GDP in 2012 was $1,596 Numerous uncounted small traders also make more than $5,000 a year, they said Cuong said that when local crops are out of season, between 80 to 90 percent of the supply at the market is brought from China through Tan Thanh border gate Bac Ninh market managers said the traders almost always managed to produce legal import documents and quality certificates for their stock So far this year, they have imposed fines of VND8 million for the import of eight tons of garlic of unclear origin which they seized But Nam said the inspections not prove a thing as customs officials are already bribed to let the cargo pass without close inspection, and the traders can "buy necessary papers later." Toxic stuff Authorities in the Central Highlands town of Da Lat in June dumped 26 tons of potatoes from China after samples tested positive for excessive levels of a toxic insecticide called chlorpyrifos, although the owner had produced adequate safety certificates during earlier inspections Surveillance over two years showed the trader had been importing potatoes from China and local vendors were mixing these with local produce to cheat consumers In May this year, a wholesale market on the outskirts of Ho Chi Minh City banned traders from selling Chinese ginger after tests found high levels of adicarb, a highly poisonous carbamate pesticide, in a sample Official figures say that Vietnam imported around 150,000 tons of Chinese produce in the first four months this year, mostly garlic, onions and apples A report on the website of the Ministry of Industry and Trade earlier this month cited experts as saying Vietnam has a much smaller cultivation area than China and cannot engage in the same large-scale intensive farming Hence local prices cannot compete with Chinese imports, they said Trang62: In Vietnam, unsustainable ‘modernization’ too much for sanitation services Huynh Thanh Long said he and his neighbors close all their doors and windows whenever they are at home but that doesn’t keep the awful stink from the Ba Bo Canal out of the house “Pollution often forms a thick layer of foam on the surface of the flowing water,” said the resident of Ho Chi Minh City’s Thu Duc District RELATED CONTENT According to the city’s anti-inundation center, pollution in the estate investors canal is a combination of wastewater from residential areas and Real destroying Vietnam capital’s industrial zones upstream rivers Pollution in big cities is common in Vietnam, threatening public Like us on Facebook and health and sustainable growth, experts say scroll down to share your Vietweek recently reported serious pollution in Hanoi’s rivers, comment the result of untreated wastewater being discharged from series of new urban areas built without wastewater treatment facilities “Over the last 20 years, the government of Vietnam has made considerable progress on the provision of wastewater services in urban areas, investing nearly US$250 million annually in recent years,” said Le Duy Hung, a senior urban specialist in Hanoi “However, keeping pace with rapid urbanization is challenging and it is estimated that $8.3 billion will be required to provide wastewater services to Vietnam’s urban population between now and 2025,” Hung, who is also a leading researcher at the World Bank’s Vietnam Urban Wastewater Review, wrote in a report released on January 20 The report focuses on the specific challenges that Vietnam faces as a result of increasing environmental pollution associated with rapid urbanization It also evaluates the performance of the wastewater sector in Vietnam It found that although 60 percent of households dispose of wastewater through a public sewerage system, much of this goes to the drainage system with only 10 percent of the wastewater treated Hung said estimated economic losses resulting from poor sanitation stood at $780 million per year, or 1.3 percent of the country’s GDP “Financing needs are still very high, estimated at $8.3 billion for sewerage services to an estimated urban population of 36 million by 2025,” he said Industrialization problem Apart from untreated wastewater from residential areas, pollution also comes from industrial zones, threatening public health and sustainable growth Recently, many farmers in HCMC’s Cu Chi District complained that they not have water for nearly 400 hectares (988 acres) of rice due to pollution in the Thai Cai and An Ha canals They accused the SEPZONE - Linh Trung Industrial Zone of discharging untreated wastewater to pollute the canal Vietnam’s first industrial parks opened in 1991 as part of thedoi moi reform movement, and there are currently more than 189 industrial parks and 878 export processing zones nationwide in 57 of the country’s total 63 cities and provinces Vo Thanh Thu of the Vietnam Chamber of Commerce and Industry’s international trade policy advisory committee said that rapid industrialization over the past 20 years had led to a boom in industrial parks and export processing zones However, it has also led to serious pollution, leading to conflicts with local residents “Only half have established waste treatment plants,” Thu said at a recent seminar on the issue, organized by the People and Nature Reconciliation (PanNature) a Vietnamese non-profit organization Thu said that toxic waste is discharged without treatment, causing serious pollution to the environment The committee urged the government to review industrial park and export processing zone zoning plans and encouraged agencies to cooperate to improve the monitoring of environment regulations Action needed Researchers estimated that investment levels of at least $250 per person are needed annually in the East Asia region over the next 15 years to manage wastewater and septage that is generated by the urban population In another World Bank report, entitled East Asia Pacific Region Urban Sanitation Review: Actions Needed, researchers examine what is holding back the sector and recommend ways to expand and improve urban sanitation services in an inclusive and sustainable way in Vietnam, Indonesia and the Philippines The region’s rapid urbanization is an engine of economic growth but poor quality sanitation leads to unsustainable development, with economic losses of 1.3, 1.5 and 2.3 percent of GDP in Vietnam, the Philippines and Indonesia, respectively “Worldwide, about 2.5 billion people lack adequate sanitation and 660 million of them live in East Asia and the Pacific Region,” said Charles Feinstein, World Bank sector manager for energy and water “Inadequate sanitation takes a tremendous toll on the quality of peoples’ lives, the environment, and the economy,” he said “But the good news is investments in sanitation yield high returns.” According to the report, poor sanitation has a significant impact on public health in the region including chronic poor health caused by diarrheal disease and an increased risk of disease epidemics such as cholera It calls for developing people-centered policies, promoting cost-effective technical solutions, developing sustainable institutions for quality services and developing viable financial schemes Returns on sanitation investments are also high Worldwide, every US dollar invested in sanitation yields $5.50 in return in terms of economic benefits In East Asia, this rate of return is even higher, with every US dollar spent yielding $8 in return, according to the World Health Organization Trang 63 : Doing good to feel good Over the last 12 years, the life of Marc De Muynck, a 64-year-old French veteran, has been ruled by the simple desire to help those less fortunate than him When he came to Vietnam in 2001 after retiring from the military, he was a tourist, but also on a mission of delivering gifts from a French veteran association to an orphanage in the Mekong Delta province of Dong Thap The Frenchman was stricken by the plight of the abandoned children After the three-month trip, he returned to his home, Arras in Northern France, and interned with a volunteer organization engaged in humanitarian activities around the world He worked with several non-governments until 2007 when he returned to Vietnam and started projects on his own "My volunteering experience with some NGOs did not satisfy me I did not really find my place Very often, a volunteer is given a specific task and has very little or no involvement in projects or decision-making," said Muynck, whose friends call him Minh During his first years in Vietnam, Muynck initiated several different projects, from helping upgrade a nursery in his residential neighborhood in Ho Chi Minh City which was often flooded during torrential rains, to building houses for poor people in the southern province of Dong Nai The projects were conducted in cooperation with humanitarian organizations or his friends, acquaintances and even tourists who donated medicines, school stationeries, and toys Two years later, he founded the association Les Enfants du Dragon (The Children of the Dragon) with his friend, Bui Huy Lan, a Vietnamese-French dentist based in Northern France, to help poor people and orphans in the Mekong Delta and part of the central region With 11 core members, a dozen volunteers, and the support of local governments, other NGOs, and numerous fundraisers, the association tries to meet every need of the needy It has built houses, bridges, ensured clean water supply to poor localities, provided scholarships and bicycles, opened free English and French courses for children, supported teacher training projects, supplied walking sticks for the elderly, entertained sick children and organized camping trips for orphans Les Enfants du Dragon also runs farms that culture spirulina a kind of nutritious algae usually recommended as food supplement to combat malnutrition and supplies it to orphanages and centers About one-third of the farms' output is for sale to generate funds for the association's activities What motivates him is, Muynck said, the smiles of children when they are given gifts like bicycles, and the tears of happiness of a poor family when given a roof above their heads "Man can only feel happy when helping people who are less lucky than himself, when bringing joy to kids without parents." After 12 years, what does he feel about his work? "I have not finished my mission yet." He said his "foremost" desire now is to carry out the association's "heart project" an orphanage for about 100 children in the southern province of Long An When the project is finished, he will see if he wants to take a short rest, he said "But, for now I still have enough energy to help other people ["¦] There is always more to do, to better." Sweet lifestyle While most of the association's core members are French and Swiss nationals living in their own countries, Muynck, despite having his own family in France, is among the few members who are based in HCMC so that they can work directly with local governments, volunteers, and beneficiaries "I am retired, and I like the sweetness of the Vietnamese lifestyle, and the southern heat." He said one of difficulties he faced at the beginning was building a stable network of volunteers Initially lots of people volunteered, but many would also retreat quickly, either because they found the work hard and time-consuming, or because they did not get the recognition they expected from the association's leaders, and perhaps even more from beneficiaries, he said "But, in the end, we managed to form a small but strong and united team of loyal members." Currently, there are a dozen of full time volunteers, both Vietnamese and French expats, working with Les Enfants du Dragon Occasionally, foreign donors also come to visit their beneficiaries and take part in volunteer work like building houses for the poor, and playing with children they had adopted by providing financial assistance These days Muynck is busy checking the progress of construction sites, visiting beneficiary families, attending meetings organized by local authorities, and updating the association's website and his personal blog to keep members and supporters informed He also joins other members in finding partners and donors online Dr Lan, who is in charge of the association's work in France, said Muynck has done his job "very well," and thanks to him, Les Enfants du Dragon's activities are always "transparent." 30s, lads-on-tour drinking experience And because of this, such Westerners expect to be served and waited on Any concept of Vietnam being an interesting living, breathing, heterogeneous society is put on the back burner, if at all In this way, Vietnam (and Southeast Asia more generally) becomes reconstituted as a Western playground, set up so foreigners can get drunk and stoned cheaply Vietnamese agency does not play a part in these conceptions of the country, which is why such tourists think they can shout at service sector workers without feeling any guilt Overhearing such phrases as, “I ordered Hawaiian pizza, you idiot!” or “NO I WANT THREE BEERS THREE! THREE! NOT ONE! CAN YOU UNDERSTAND THAT!?” or “What the hell you think you’re doing? Stop trying to rip me off!” is, sadly, not uncommon on Pham Ngu Lao Street When backpackers aren’t busy abusing workers, who only exist, in the eyes of these tourists, to serve Westerners, they are often attempting to “respect” Vietnamese culture This, of course, is always a patronizing reformulation of the idea of “culture” so it becomes seen as static and simple, rather than being complex, multi-layered, and in flux, as all “cultures” always are Such an attitude allows tourists to think that showing respect equates to refraining from touching people on the head, rather than, say, seeing the Vietnamese as equals Of course, not all foreigners in Vietnam are tourists - there are thousands of expats in the country A sense of Western superiority is also, sadly, present amongst this group – many live entirely with other Westerners, and have social circles that consist almost totally of foreign faces Vietnamese friends that expats have are seen as quirky exceptions rather than the norm Despite this, many such expats feel that they are able to make great, ground-breaking insights into Vietnam and its people, such as “Vietnamese people don’t have a concept of the future – they just live for the moment,” or “they haven’t developed modern thought yet,” and “they don’t understand the idea of getting regular customers, they always try to rip me off even though I go there every day.” These are just a few examples of the dozens I’ve heard Such “insights” are made from what expats consider to be a higher, superior level “I’ve done much more for this f***ing country than you have,” said one English teacher who couldn’t get a shirt for the price he wanted These attitudes, from both tourists and expats, are just small examples of a structural racism that exists across the globe Such attitudes of Western superiority are, at best, naïve, ignorant, and orientalist, and, at worst, poisonous and racist When people talk about Vietnam as a “developing” country, the hidden presupposition is that this means Vietnamese people are developing, in their consciousness and attitudes, from an earlier stage to an advanced stage that Westerners have already reached Anything that is not exactly like it is in the West is seen as inferior, an aberration to the developed norm (which is always a white, Western European norm) We must get over this attitude of superiority Othering the Vietnamese as inferior will not allow us to fully engage in Vietnam’s society (and indeed, we often see ourselves as outside, judge mental observers), and will not allow us to approach Vietnam with an open mind There are a millions of different people in Vietnam, doing a huge variety of different activities We should be humble and open to listening to these varied lived experiences, without judgement, simplification or superiority Trang 105 : Cancer a water-borne disease in southern Vietnam Nguyen Van Minh's parents are among at least 50 people in a commune in Tien Giang Province who have died of cancer over the past five years, and concerns over arsenic-laden groundwater are escalating in the Mekong Delta "My father died of stomach cancer and my mother died of blood cancer Neither smoked nor drank," said the farmer who lives in Thoi Son Commune, which is located in the province's My Tho Town Do Tien Hoa, a medical worker in the commune's Thoi Hoa Hamlet and many local residents believe that arsenic, a carcinogenic substance, in their tap water is responsible for the high incidence of cancer in their locality It appears that the residents' suspicions are well founded Unlike previous studies that linked arsenic contamination to groundwater near the surface, a recent study by a group of California-based scientists found increasing contamination of carcinogens in numerous deep wells in the Mekong Delta New poison depths Chronic arsenic poisoning is said to be a factor in cardiovascular diseases, skin lesions and numerous forms of cancer These diseases may take years to manifest While the symptoms of arsenic poisoning are treatable in the short-term, there is no way to reverse its long-term affects Faced with arsenic contamination, many people have dug deeper wells for cleaner water, but scientists have recently found increased arsenic contamination in the new depths as well Drilling deeper wells has become common in the search for clean water but new research from Stanford University's School of Earth Sciences has found that even deep wells might not remain arsenic-free Researchers suggest that the contamination occurs as arsenic is squeezed from ancient clay sediments surrounding the wells The scientists reviewed 42,000 well measurements taken throughout the multi-aquifer system of Vietnam's Mekong Delta and in an area spanning more than 1,000 square kilometers (386 square miles), arsenic was found in nearly 900 deep wells "Historically, deep wells often tested arsenic-free," said Laura Erban, a doctoral student in environmental Earth system science at Stanford and the lead author of the study In some cases, the wells were contaminated when deep-pumping projects inadvertently transported shallow arsenic, or other substances that help mobilize arsenic, to greater depths But in the Mekong Delta, it appears that there is an entirely different, and previously unsuspected, process contaminating deep wells, the report said It said when water is heavily pumped from an aquifer, surrounding clay layers compact, and water is expelled as the land sinks "If this expelled water contains substances such as arsenic, the groundwater can become contaminated Land subsidence the gradual sinking of land due to excessive pumping is common in delta environments and can be measured," the report said The impacts of arsenic contamination from deep groundwater extraction may be reduced by quantifying the extent of deep groundwater arsenic, limiting heavy pumping and treating extracted groundwater to meet health standards, it said According to Steven Gorelick of the Stanford University, co-author and project investigator on the study, the implication of these findings for the Mekong Delta region, and potentially other arsenic-prone aquifer systems like it is that deep, untreated groundwater is not a safe long-term water source "Deep wells that test clean upon installation, as those bordering the focus area, may not remain arsenic-free over time as pumping promotes compaction and release of arsenic or arsenicmobilizing solutes from deep clays." To reduce the impacts of arsenic contamination from deep groundwater extraction, water managers should consider a suite of measures, he said "These include first understanding the nature and extent of deep groundwater arsenic, limiting intensive extraction, treating or blending extracted groundwater to meet health standards, and possibly screening pumping wells over intervals of deep aquifers that are distant from confining clays, among other water management strategies aimed at health-risk reduction." Depleting source People in Tien Giang's Thoi Son Commune were using tap water supplied by two stations pumping from two deep wells without any treatment for drinking and cooking, the Voice of Vietnam news website quoted Hoa, the medical worker, as saying Tran Thanh Thao, deputy director of the Tien Giang Health Department, said relevant agencies had collected tap water samples in the commune and found a high concentration of arsenic However, it is unclear if arsenic contamination is responsible for cancer in the commune, local authorities said Scientists from the Pasteur Institute in Ho Chi Minh City have collected hair and urine samples of 100 local residents for testing but the results are not available, they said Increasing pollution as well as salination of surface water have over the years forced many residents to switch to groundwater, leading to overexploitation of the resource and, experts say, rising arsenic threat To Van Truong, former director of the Southern Institute for Water Resources Planning, said increasing demand due to growing population and seawater encroachment has led to a reliance on groundwater "This increases the risks of arsenic consumption for local residents in the Mekong Delta," he said According to the Center for Water Resources Planning and Investigation, groundwater has been declining both in quality and quantity nationwide Results from many monitoring stations show increasing contamination of manganese, arsenic and ammonia, according to a report the agency released in July In May, authorities in Tien Giang's Cai Lay District announced that a source of tap water for more than 200 households in Phu Cuong Commune has a high concentration of arsenic Many residents, fearful that they have been consuming the carcinogenic substance, are using bottled water as an alternative, while waiting for the commune authorities to drill a new well Concerns over arsenic-laden tap water have spread widely in the Mekong Delta There are more than 400 well water stations in Dong Thap Province, but not many people have been using their water recently, fearing that it is not safe According to the provincial Preventive Health Center, a test of 295 stations in late 2011 found 191 of them supplying unsafe water, including 110 with high concentrations of arsenic There are dozens of thousands of household wells in the Mekong Delta, from 100-300 meters deep, the Ministry of Natural Resources and Environment said Duong Van Ni, a lecturer at the Can Tho University, said many people in the Mekong Delta provinces of Ca Mau and Bac Lieu have been using groundwater to mix with sea water to breed shrimp "It's so wasteful Many people think groundwater is endless and that they can just drill new wells if the old ones get polluted or go dry," he said "Arsenic can leak into groundwater in abandoned wells." Trang 106 : Samsung shifts plants from China to Vietnam to protect margins Samsung Electronics Co built the world's largest smartphone business by tapping China's cheap and abundant workforce Not for much longer: it's shifting output to Vietnam to secure even lower wages and defend profit margins as growth in sales of high-end handsets slows By the time a new $2 billion plant reaches full production in 2015, China's communist neighbor will be making more than 40 percent of the phones that generate the majority of Samsung's operating profit The Suwon, South Korea-based company's second handset factory in Vietnam is due to begin operations in February, according to a Nov 22 statement on the local government's website Samsung surged past Apple Inc to the top of the mobile-phone industry by offering cutting-edge devices for more than $900 to basic models costing less than $150 With demand sagging in the most-profitable top end and Chinese rivals driving prices lower, Samsung is joining technology companies such as Nokia Oyj and Intel Corp to be drawn to Vietnamese wages that are about a third those in China "The trend of companies shifting to Vietnam from China will likely accelerate for at least two to three years, largely because of China's higher labor costs," said Lee Jung Soon, who leads a business-incubation team of the Korea Trade-Investment Promotion Agency in Ho Chi Minh City "Vietnam is really aggressive in fostering industries now." It seems to be working The government has approved $13.8 billion of new foreign projects this year through Nov 20, a 73 percent increase on a year earlier, according to the General Statistics Office in Hanoi South Korea led with $3.66 billion China's $8.4 trillion economy, 59 times the size of Vietnam's, received $97 billion of foreign direct investment although this was actually utilized in the first 10 months, percent up on a year earlier Intel, the world's largest chipmaker, opened a $1 billion assembly and testing plant in Ho Chi Minh City in 2010 Nokia said its facility near Hanoi producing Asha smartphones and feature handsets became fully operational in the third quarter LG Electronics Inc (066570), Samsung's smaller South Korean rival, is building a new 400,000 square meter complex to make TVs and appliances as part of a $1.5 billion investment plan Young workers "The country is politically stable and has a young, increasingly well-educated workforce," LG said in an e-mailed statement "Like Korea, Vietnam understands what it takes to rebuild an economy after a devastating war." Samsung's new plant is expected to make 120 million handsets a year by 2015, said two people familiar with the company's plans, who asked not to be identified because the matter is private That would double the current output from the country and compares with the 400 million global total Samsung shipped last year In an e-mailed response to questions, the company declined to comment With about one-third of the global smartphone market, Samsung may eventually produce as many as 80 percent of its handsets in Vietnam, said Lee Seung Woo, an analyst at IBK Securities Co in Seoul who has been tracking the company for more than a decade "The handset business is all about assembling well-sourced components," Lee said "The most important thing is manpower." Record growth After setting up in China in 1992, Samsung now has 13 manufacturing sites and seven research laboratories there, according to its June sustainability report The 45,660 employees in China make up more than 19 percent of Samsung Electronics' global workforce, the largest source of labor outside South Korea, it said Record economic growth that made China the second-biggest economy has fueled wage inflation, pricing many workers out of low-end jobs The base monthly salary for a factory worker in Beijing was $466, compared with $145 in Hanoi, according to a 2012 survey of pay by the Japan External Trade Organization While this growth has created an emerging class of potential Chinese buyers of Samsung products, consumers wants more for less Features once reserved for top-end devices, such as high-definition screens and faster processors, are being added to cheaper handsets China last year surged past the U.S as the biggest smartphone market, and sales there will reach 350 million units this year more than double U.S demand, according to estimates by industry analysis firm IDC In China, though, three-quarters of devices sold for less than $250, compared with a fifth in America, IDC said Sales double Globally, smartphone sales will more than double to 1.7 billion units by 2017 at the same time average prices will drop to $265 from $337, IDC said in a Nov 26 report "The rule of the game is now changing to how much market share you can win over rivals," said Hong Sung Ho, an analyst at LIG Investment & Securities Co in Seoul "Many companies are now scratching their heads to figure out how to cut manufacturing costs." Samsung's complex in the Yen Binh Industrial Zone of Thai Nguyen province, north of Hanoi, will pay no tax for the first four years, and half the full rate the following 12 years, the local government's website shows A $1.2 billion Samsung Electro-Mechanics Co (009150) factory announced making camera modules and circuit boards, along with other Samsung plants, will get half their infrastructure rent subsidized Under a so-called strategic partnership, Samsung said it will also help Vietnam build social infrastructure, and nurture key industries such as petrochemicals and shipbuilding, according to the South Korean conglomerate Close to home Shares of Samsung have fallen 7.4 percent this year, compared with a 1.5 percent drop in the benchmark Kospi index, and the stock is headed for its first annual decline since 2008 While tax breaks and cheap workers are lures that other countries such as India and Indonesiacould offer, Vietnam's location closer to existing Samsung production bases in China and South Korea is an extra incentive, according to Than Trong Phuc, managing director of technology-focused investment fund DFJ VinaCapital LP in Ho Chi Minh City "Other countries can match or even beat the incentives that Vietnam is offering, but Vietnam is very close to Samsung's supply chain," said Phuc "You see Korean companies everywhere you look in Vietnam, right and left." Trang 107 : Vietnam executive search market has grown at snail's pace: headhunter In Vietnam it is very difficult for firms to find candidates for CEO jobs because of the shortage of managerial experience Many have to hire expats even if they prefer Vietnamese, who would have a better understanding of the country's culture, business environment, and legal system, managing director of recruitment firm Navigos Search Nguyen Thi Van Anh tells Vietweek Vietweek: How you assess the executive recruitment market? Nguyen Thi Van Anh: The economic slowdown has affected demand for mid-level and senior staff, which include those in the position of deputy director upwards, and experienced engineers Amid the high production costs, high inventories of goods, and lower demand, firms cannot expand their business They have to find ways to cut costs, including on personnel The pressure to cut costs is higher in some fields with high personnel costs like services A wave of personnel cuts has occurred since 2011 But the middle- and senior-level markets have not seen a mass reduction because there are only a few positions for mid-level and senior employees in each company, and it is very difficult for companies to find talent Some other firms even take advantage of the current dull recruitment market to scour for talents for top positions though it is costly It is easier for them to recruit employees now as they can have more options and time to assess candidates It will be too late if firms leave executive search and recruitment until the economy recovers and their production and business bounce back It is very difficult to find executive talent, especially CEOs, in Vietnam FPT has not been able to find a CEO for a long time In the field of information and technology, many Vietnamese and foreign firms wish to set up software development centers in the country, but they cannot find enough engineers to meet their demand because of the supply shortage The qualifications of local engineers are not enough to meet the requirements of employers Many of our engineers not know foreign languages, and are not updated on the developments in their fields Candidates for CEO jobs lack managerial experience and strategic vision So many firms still have to recruit expats for the position though they prefer Vietnamese, who have better understanding of the country's culture, business environment, and legal system FDI flows have increased this year Have they impacted the executive recruitment market? Registered capital is not important, only disbursed capital Investors have demand for executive talent only when they execute their projects in Vietnam We see an increase in demand for senior employees in some Japanese invested enterprises, but it is not a sharp rise In what sectors firms face the most difficulty in executive search and recruitment? It is difficult find CEOs in all sectors Vietnamese can meet the requirements for middle-level positions Most deputy directors and directors in firms are local people It used to be difficult 5-7 years ago for employers to find local people for even the director's position in their companies, so they used to employ expats Now Vietnamese people have learned managerial skills, so directors in most companies are locals I hope Vietnamese people's qualifications improve in the next few years, and CEO recruitment will become easier Many multinational companies rotate employees between countries for staff training They could move their employees in Thailand, Singapore, or Indonesia to Vietnam and vice versa This way they are also training Vietnamese employees, helping improve the qualifications of local workers How you assess the attractiveness of the Vietnamese market to foreign employees? Many candidates from Japan, Hong Kong, Singapore have applied for jobs we advertise on our website Some expats are willing to work in Vietnam because of political stability, high development potential, and acceptable income But senior candidates will not want to work in Vietnam because they want to develop their capacity in developed and competitive markets like the US and Japan The Vietnamese market is very small, so the size of firms is also small Does Vietnam have a true executive recruitment market? Not yet Vietnam opened up for foreign direct investment over 20 years ago, and workers need more time to meet the requirements of firms Firms' needs in terms of both quantity and qualification have not been met yet The shortage of senior employees will be even more serious when the economy recovers and labor demand bounces back The number of university graduates is very large, but their capabilities cannot meet firms' requirements Hasn't it been too long? After all Vietnam opened its doors more than 20 years ago? Yes, it has been too slow The changes in our educational system have not caught up with economic development, failing to meet the requirements of employers FPT has even had to start a university to serve need for employees Vietnam will become less competitive in attracting FDI unless the government carefully reconsiders the issue We would have to compete with other countries in attracting FDI by increasing workers' productivity, not by offering low wages The productivity of Vietnamese workers is low compared to that of those from China, Thailand, and Malaysia How are the salaries offered to executives? The highest salaries are often seen in the financial and banking sector CEO of banks could get hundreds of thousands of dollars a year, or even $1 million CEOs in the manufacturing sector could get $200,000-300,000 a year Expats often get higher salaries than local employees in the same positions, maybe because of employers' higher expectations REVIVED DEMAND In the first half of 2013 moderate growth was reported across a broad array of sectors including industry and services, showing positive signs for business revival The demand for executive staff has remained steady through the economic downturn, according to job website vietnamworks.com The increase in FDI flows into Vietnam in the first six months of 2013 could also help boost demand for executive talent, as new investors look for senior managerial talent to head their enterprises VietnamWorks' report says that demand for director/CEO positions increased by 20 percent in the first half of this year compared to a year earlier The industries with the biggest increase in demand included manufacturing with 66 percent, retail/wholesale trading with 64 percent, technology/engineering with 39 percent, and medical services/healthcare with 36 percent Trang 108 : Labor market to rebound in 2014 The labor market is expected to see a rebound this year, especially with a huge increase in investment from Japan and South Korea IT, marketing, and customer service continue to lead the demand for labor, Jonah Levey, founder and CEO of job company VietnamWorks tells Vietweek What is your expectation for the labor market in 2014? Jonah Levey: 2013 witnessed an amazing recovery in the labor market Q1 saw no change in labor demand, but from Q2 on, demand kept rising at a steady pace of more than 10 percent each quarter compared to the same period of 2012 Overall, labor demand in 2013 increased percent compared to the previous year This upward trend is expected to continue into 2014, especially with a large amount of investment coming from Japan and South Korea Major cities like Hanoi and Ho Chi Minh City will be the hubs of job supply due to their strategic positions as centers of commercial activities However, places like Bac Ninh and Binh Duong will also post a lot of jobs thanks to the flourishing industrial parks Which sectors will have the biggest demand and offer the best salaries this year? IT, marketing, and customer service continue to lead the labor market’s demand side However, we see great growth in other industries like import-export, which increased its labor demand a whopping 38 percent in Q4 of 2013, compared to the same period of 2012 As for salary level, popular sectors tend to be those that offer the most competitive compensation package for employees In this economic climate, applicants flock to jobs that promise financial stability Japanese and Korean companies are among the most popular employers According to VietnamWorks’ survey, seven out of the 10 most desired companies belong to Japanese and Korean groups The economic slowdown has changed society’s perception of jobs, with some sectors becoming less attractive to workers and others more attractive What you think about this? There is always a fair reason for any change, especially in the labor market As I mentioned above, in the current economy, people prioritize financial stability in choosing their employers Highly qualified individuals look for a decent compensation package that will allow them to not only survive but also live comfortably in a time associated with rising costs of living Industries that promise good financial compensation like banking and finance, as usual, attract a lot of job seekers Technology companies have also become great potential employers in Vietnam, similar to what has happened in the world in the last few years By contrast, the production sector has become less attractive to highly qualified individuals who prefer to work in central downtown districts instead of industrial parks The change has profound ramifications for the labor market On the part of job seekers, signing themselves up for trendy and highly-compensated careers like banking and finance can be a promising decision, but there is a great deal of competition just to get an entry-level position in these industries On the other hand, the less attractive sectors can be unexpectedly rewarding and much easier to enter On the employers’ side, companies in popular sectors will have a hard time choosing the right talents in a crowded pool of applicants, some of whom are only in it for a generous compensation At the same time, companies in less popular sectors will struggle with the task of finding qualified talents with such a limited supply of labor Experts have warned about the oversupply of workers in some sectors like banking, finance, and property, and the shortage of skilled workers in manufacturing How can these be balanced? One possible measure is to push for a more serious career guidance program A lot of college students in Vietnam not know what they have to to become appealing to employers In addition to getting high scores at school, college students should participate more in activities like volunteering or internships The experience gained through these activities will help them become familiar with professional work environments as well as prepare them for the reality of working in certain sectors As a result, students will have a better sense of who they really are as a professional and which industry is best suited to their interests and abilities What should Vietnam to improve the quality of its workforce? Rather than focusing on the weaknesses of Vietnamese workers, I would like to talk about a more pressing problem: how to improve Vietnamese the labor force’s quality It is a big question for policymakers and educators However, employers themselves can also help Recruiting skilled workers is a major challenge in Vietnam, and the situation is very likely to worsen in the coming years as demand for skilled talents continues to grow faster than supply Universities and vocational schools are not generating enough graduates to meet the demand More importantly, many graduates from Vietnamese universities and trade schools not possess the skills and ability required of foreign enterprises or top local businesses That is why companies like Intel, FPT Software, and others are spending billions of dong on training VietnamWorks.com delivered over 2.8 million job applications to over 8,000 employers in 2013 Employers come to us because they want more and better candidates to apply for their jobs In addition, companies with the means will continue to invest heavily in training to bridge the gap between the talent they require and the talent available in Vietnam Are firms willing to pay higher salaries for workers with better qualifications when many of them only seek low-cost workers? The problem is that a lot of times it is not about the costs; it is about the overall benefits that a company can get from an employee If an employee contributes greatly to the growth of a company, he/she should be rewarded with a decent compensation package that reflects his/her value to the company Many companies already have effective human resource policies to retain and reward their most valuable talents For example, Japanese company Evolable Asia uses the “probation bonus” approach to rewarding talents in Vietnam: any employee who passes the probation period will receive a one-time bonus of half a month’s salary Companies are willing to invest in their most valuable employees The most pressing question right now is not whether firms want to pay high salaries, but whether there are good enough employees who deserve competitive compensation packages Trang 109 : Vietnam remains firm on controversial airport project Central government wants to go ahead with a multi-billion dollar plan to build the Long Thanh Airport in Dong Nai Province, as the project is set to be voted by lawmakers in June The Ministry of Transport has rejected proposals by a group of constituents who want to expand the current Tan Son Nhat airport instead of building a new one in Dong Nai Province Plans for the new airport also envisage building a new golf course at Tan Son Nhat on land that critics say could be used for airport expansion instead In response to constituents in Tan Binh District – where Tan Son Nhat is located – who say they have no need for a golf course, the ministry has argued that the construction of the Long Thanh airport will satisfy demands that Tan Son Nhat cannot because the number of passengers is increasing In a petition last month, the constituents said Vietnam should not build Long Thanh airport, which is expected to cost at least US$7 billion in the first stage because the country is still poor Vietnam should not use official development assistance to build the airport while the Tan Son Nhat airport has not even been fully exploited yet, they said They also demanded a revocation of plans to turn the airport’s buffer zone into a golf course instead of using it to expand the current airport In its response, the transport ministry said Tan Son Nhat airport served 20 million passengers in 2013 and it would be overloaded soon Expanding Tan Son Nhat to serve 40-45 million passengers a year will be costly and unfeasible because it is located in the residential area only seven kilometers from the city center, Tuoi Tre (Youth) quoted a ministry document as saying The transport ministry said Ho Chi Minh City, Dong Nai, Binh Duong and Ba Ria - Vung Tau provinces are major airline transport markets that link to bustling air transport routes in Southeast Asia A major international airport is necessary to meet domestic and regional demand and Long Thanh is a better place than other airports in the area, it said Regarding the golf course project at Tan Son Nhat, the ministry said it was approved under proposals from the ministries of defense, construction and planning and investment after being reviewed by other relevant ministries New airport At a meeting to discuss the construction of Long Thanh airport on March 27, transport minister Dinh La Thang reaffirmed that the project is necessary for the country’s development He instructed relevant agencies to clarify the necessity of the project and the choice to build it in Long Thanh instead of Bien Hoa, Can Tho or Da Lat and why Tan Son Nhat should not be expanded instead According to the Airports Corporation of Vietnam, the Long Thanh airport is expected to serve up to 100 million passengers and five million tons of goods a year by 2030, becoming a major airport in Southeast Asia The first stage is scheduled for completion in 2020 to serve 25 million passengers and 1.2 million tons of goods a year, with an investment of $7 billion In January, Dong Nai authorities met with relevant agencies to discuss the resettlement of local residents for the Long Thanh airport project A total of 5,381 households of more than 17,000 residents will be affected by the project, including 3,321 households that will have all their land revoked Compensation for affected residents is expected to be more than VND20.77 trillion The project is set to be built on an area of 5,000 hectares (12,400 acres) overlapping six communes in Dong Nai’s Long Thanh District At a government teleconference last December, authorities in HCMC and Dong Nai both supported the construction of Long Thanh airport “Without a new airport, Tan Son Nhat will be overloaded in two or three years,” said HCMC mayor Le Hoang Quan Dinh Quoc Thai, chairman of the Dong Nai People’s Committee, said the government should facilitate the Long Thanh airport project so the province will develop stronger and more quickly soon However, Nguyen Xuan Thanh, director of the Public Policy Program at the HCMC-based Fulbright Economics Teaching Program, told Dat Viet newspaper that his team had assessed the project and found it to be financially-ineffective "No investor is interested in investing in the airport under a BOT [build-operate-transfer] project It will need to use ODA [official development assistant] The problem then is that the whole country has to pay the debt.”

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