Thứ Ba, 13 tháng 11, 2012

Deputies rise to question time

National Assembly Deputy from Mekong Delta Tra Vinh Province Nguyen Thi Kha, poses questions for State leaders. — VNA/VNS Photo Nhan Sang

Minister of Industry and Trade Vu Huy Hoang responds to deputies' questions yesterday. — VNA/VNS Photo Nhan Sang


HA NOI (VNS)With burning issues surrounding petrol problems, inventory clearances and the inundation of low-quality products in the domestic market, yesterday's National Assembly question and answer session was a heated affair.

Minister of Industry and Trade Vu Huy Hoang was the first member of the Government summoned to answer queries raised by NA deputies.
Hoang admitted there are still shortcomings in market management, causing the deluge of low-quality and fake products to flood the domestic market.
A large number of goods have been smuggled into Viet Nam but the relevant authorities failed to prevent this due to a lack of resources and inadequate handling measures, he said.
Hoang urged consumers to shun fake and low-quality products to eliminate these products from the market, while adding that stronger management would also help the cause.
In response to deputy Dong Huu Mao's query on petrol market competitiveness, Hoang said that under the Government's Decree 84, all domestic enterprises would be qualified petrol wholesalers provided that they met requirements. This excludes foreign enterprises. To date, four non-State-owned enterprises have been granted petrol wholesaler status, so a competitive petrol market has already been formed in Viet Nam.
Many deputies expressed concern over petrol quality. In response, Hoang said: "It's important that the management of petrol imports is tightened," pointing out that up to 70 per cent of petrol consumed by Viet Nam is imported.
He also said a large volume of temporarily-imported petrol had not been re-exported, but was in-fact sold in the domestic market instead to earn illegal profit. He estimated the figure to be 15 per cent of all temporarily imported petrol, but it had not resulted in a loss of State revenue.
Minister of Finance Vuong Dinh Hue said the temporary petrol import and re-export must be maintained in accordance to the Kyoto Convention. However, he said, enterprises must provide guarantees when temporarily importing petrol or pay tax in advance (to be re-funded after export), to prevent tax evasion.
Regarding the huge losses of Viet Nam National Petroleum Corporation (Petrolimex), Hoang said he had not received the audit report on the 2011 financial statement of Petrolimex.
Meanwhile, General Auditor Dinh Tien Dung said the report had been issued and sent to relevant ministries, adding Petrolimex's losses totalled VND1.4 trillion (US$66.67 million) last year.
He also said that the relocation of residents for the construction of hydroelectric plants should be a focus, stressing that planning should be revised, if needed, to ensure local lives and production aren't disrupted.
Regulations
"The ministry will improve regulations on new urban area project development, so that investors must strictly follow development planning and roadmaps to complete infrastructure," Dung said, adding that an urban development management board is needed to ensure property projects conform with neighbourhoood infrastructure projects.
Dung will continue the Q&A session this morning.
Meanwhile, business leaders and voters have criticised Hoang, suggesting the Minister of Industry and Trade took too narrow a view of the market economy.
Vu Vinh Phu, Chairman of the Ha Noi Super Market Association, said he was not happy with the way the minister covered the settlement of large inventories, food safety and market control.
"He only talked about large inventories of steel and cement, not about consumer goods," said Phu. "In reality, consumer goods are piling up in inventories," he added.
Phu agrees it is important to invest more in technology and improve production efficiency. But he feels the minister forgot to mention a very important factor, the need to improve people's purchasing power by generating more jobs and widening the market.
He said the minister should have taken measures to control cross border trades and imposed stricter sanctions on illegal trade and on corrupted officials who turn a blind eye.
Duong Van Binh, director general of the October 10 Textile Company Limited wanted the minister to focus more on what the Government would do to even out the comparative advantages enjoyed by other enterprises.
Pham Van Thu, a pensioner from An Cuu precinct, central Hue City and Colonel Phan Thanh Son, from southern Binh Duong Province, wanted the Government to pay more attention to price stabilisation during this year's Lunar New Year festival – particularly focusing on essential commodities.
Another pensioner, Nguyen Van Phuong, from An Cuu, wanted Minister Huy Hoang to talk more about specific mechanisms and policies for people who have to resettle in other regions because of the hydro-power plant construction.
"Their lives are now in very difficult," said Phuong.
Minister confident
Speaking at the National Assembly's question-and-answer session yesterday afternoon, Construction Minister Trinh Dinh Dung said he is confident the real estate sector will learn lessons from past mistakes.
Responding to Ha Noi deputy Chau Thi Thu Nga's question, Dung said, "Viet Nam's frozen property market is the result of past spontaneous and unplanned development which far exceeded demand.
"Meanwhile, property product structures are unreasonable because of abundant properties being built for high-or-middle income people while housing for low-income citizens has benn neglected.
"Moreover, as most developers are enterprises with low liability, they usually rely on bank loans and customer deposits to develop property projects," he said, adding that when credit for property developments are tightened, the market is likely to freeze.
As short-term solutions to help construction enterprises overcome difficulties and low-income earner access housing, the minister urged investors to shift commercial housing projects into social housing ones, mentioning the Government's land use fee and tax incentives.
Banks should continue offering loans for those who wanted to buy houses, while first-time buyers of social housing should be exempted from value-added-tax, he said.
Meanwhile, the ministry is reviewing property projects, those with uncleared ground will be stopped while on-going projects will be restructured to conform with the national housing strategy 2011-20 which focuses on social housing.
According to reports from 44 cities and provinces nationwide up to last August, real estate inventories were worth VND40.75 trillion (US$) including nearly 16,500 unsold apartments, over 4,100 low-rise buildings and nearly 26,000sq.m of office space.
The young real estate market needs a concerted effort from the Government, localities and enterprises to overcome this difficult time," he said.
Meanwhile, deputy Phung Van Hung from northern Cao Bang Province, said it seemed late for the ministry to start reviewing property projects.
Moreover, most of the unsold real estate products were those intended for the high-end market. Shifting commercial housing projects to social housing projects would also require money, so, he questioned who would pay the added cost.
Deputies also questioned the minister over the lack of basic infrastructure including schools, hospitals, transport system and market in new urban areas which causes major problems for residents.— VNS

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