[Intl-tobacco] Vietnam says no new foreign cigarette ventures (fwd)

[Robert Weissman]

Vietnam says no new foreign cigarette ventures
Source: Reuters, 2001-10-25 HANOI, Oct 25 (Reuters) - 

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.