Term Life Insurance or Whole?

Term life insurance, also called temporary insurance, covers a person against death for a limited time, the term. For example, the term might be until children are grown, or until college is paid for, or until retirement. You pay for the policy period and at the end of the term, the contract or policy expires. If no claims are made against the policy during the term, you don't receive any benefits after the policy expires, just like auto or homeowners insurance.

Whole life insurance, also called permanent insurance, is permanent and does not expire (assuming you continue to pay the premiums). It provides coverage similar to term life insurance, but it also provides an investment vehicle. A portion of the premium goes for life insurance, while the rest goes into an investment account. This account can be either an interest bearing account or a variable (stocks and bonds) investment account.

Which is better (our opinion)? Young families with large financial obligations are usually better off with term life insurance policies. The substantially lower premiums enable them to purchase sufficient coverage to protect against loss of income. Any discretionary investment funds can be placed in other vehicles (mutual funds, money market accounts, etc.) that are likely to generate returns similar to or better than life insurance policies. Whole life insurance is often purchased by people for tax and estate planning purposes. You should consult with your financial advisor.

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Choosing an Agent

Almost all life insurance companies sell their products through agents, rather than directly to the public. Some companies use "captive" agents, who can only represent one company. Most of the competitive term life insurance providers (such as those featured at this site) use independent agents, who are free to represent several companies. These agents can help you select from a variety of products and companies to tailor a plan.

You should first obtain an online life insurance quote, and then select an independent agent.

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Specialty Life Insurance

Some life insurance companies have started to offer specilty products, such as no-exam life insurance, which is issued without a medical exam. Some polices are issued online.

Term life insurance(From Wikipedia, the free encyclopedia)

Term life insurance is the original form of life insurance and is considered to be pure insurance protection because it builds no cash value. This is in contrast to permanent life insurance such as whole life, universal life, and variable universal life.

Term life insurance provides coverage for a limited period of time, the relevant term. After that period, the insured can either drop the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis.

Term insurance functions in a manner similar to most other types of insurance in that it satisfies claims against what is insured if the premiums are up to date and the contract has not expired, and does not expect a return of Premium dollars if no claims are filed. As an example, auto insurance will satisfy claims against the insured in the event of an accident and a home owner policy will satisfy claims against the home if it is damaged or destroyed by, for example, an earthquake or fire. Whether or not these events will occur is uncertain, and if the policy holder discontinues coverage because he has sold the insured car or home the insurance company will not refund the premium. This is purely risk protection.

Contents [hide] 1 Usage 2 Annual renewable term 3 Level Term Life Insurance 4 Payout Likelihood and Cost Difference 5 See also 6 External links

[edit] Usage

Because term insurance is a pure death benefit, its primary use is to provide for covering financial responsibilities of the insured. Such responsibilities may include, but are not limited to, consumer debt, dependent care, college education for dependents, funeral costs, and mortgages.

[edit] Annual renewable term

The simplest form of term life insurance is for a term of one year. The death benefit would be paid by the insurance company if the insured died during the one year term, while no benefit is paid if the insured dies one day after the last day of the one year term. The premium paid is then based on the expected probability of the insured dying in that one year.

Because the likelihood of dying in the next year is low for anyone that the insurer would accept for the coverage, purchase of only one year of coverage is rare.

One of the main challenges to renewal experienced with some of these policies is requiring proof of insurability. For instance the insured could acquire a terminal illness within the term, but not actually die until after the term expires. Because of the terminal illness, the purchaser would likely be uninsurable after the expiration of the initial term, and would be unable to renew the policy or purchase a new one.

This issue is frequently overcome by a feature in some policies called guaranteed reinsurability included on some programs, that allows the insured to renew without proof of insurability.

A version of term insurance which is commonly purchased is annual renewable term (ART). In this form, the premium is paid for one year of coverage, but the policy is guaranteed to be able to be continued each year for a given period of years. This period varies from 10 to 30 years, or occasionally until age 95. As the insured ages, the premiums increase with each renewal period, eventually becoming financially unviable as the rates for a policy would eventually exceed the cost of a permanent policy. In this form the premium is slightly higher than for a single year's coverage, but the chances of the benefit being paid are much higher.

[edit] Level Term Life Insurance

Much more common than annual renewable term insurance is guaranteed level premium term life insurance, where the premium is guaranteed to be the same for a given period of years. The most common terms are 10, 15, 20, and 30 years.

In this form, the premium paid each year is the same, and is based on the summed cost of each year's annual renewable term rates, with a time value of money adjustment made by the insurer. Thus, the longer the term the premium is level for, the higher the premium, because the older, more expensive to insure years are averaged into the premium.

Most level term programs include a renewal option and allow the insured to renew for a maximum guaranteed rate if the insured period needs to be extended. Typically this clause is invoked only if the health of the insured deteriorates significantly during the term.

[edit] Payout Likelihood and Cost Difference

Both term insurance and permanent insurance use the exact same mortality tables for calculating the cost of insurance, and a death benefit which is income tax free, as long as the policy is in force and premiums are current; however, the premiums are substantially different.

The reason the costs are substantially different is that term programs may expire without paying out, while permanent programs must always pay out eventually. To address this Permanent programs have built in cash accumulations vehicles to force the insured to "self insure" making the programs many times more expensive.

Insurance industry studies show that it is very unlikely that the death benefit will ever be paid on a term insurance policy.^{[citation needed]} One study placed the percentage as low as 1% of policies paying a benefit. The low payout likelihood allows term insurance to be relatively inexpensive. The low payout percentage is a combination of there being a low likelihood (in the aggregate) of a random, healthy person dying within a short period of time. Because of the low likelihood of an insurer having to pay a death benefit, term insurance seems better when considered in terms of coverage per premium dollar basis - by a factor of up to 10.

[edit] See also

• Permanent life insurance
• Whole life insurance
• Universal life insurance
• Variable universal life insurance
• Buy term and invest the difference
• Life Insurance

[edit] External links

• Chart Comparing Different Types of Life Insurance
• Learn About Life Insurance - Insurance Information Institute Life Insurance Learning Center
• The Life and Health Insurance Foundation for Education
• Life Insurance Articles, Editorials and News
• A History of Life Insurance in the United States through World War I
• Illinois Department of Financial & Professional Regulation, Division of Insurance, Slavery Era Policies Report August 2004
• Code of Ethics, National Association of Insurance and Financial Advisors

Retrieved from "http://en.wikipedia.org/wiki/Term_life_insurance"

Categories: Articles with limited geographic scope | All articles with unsourced statements | Articles with unsourced statements since February 2007 | Types of insurance

Term Life Insurance

In summary, do some product research first, using a service like Budget Life, and then get a USA life insurance quote online. (For Canada life insurance, get a Canadian quote.) Then select a life insurance agent based on criteria such as trust, experience, and access to a wide selection of products. Your goal should be to find, and then stick with, an agent who can help you put together the best possible life insurance plan for your specific needs.

About Life Insurance

Paying for life insurance hurts! But few can do without it. The key is to buy life insurance only for losses that you can not replace, such as your income. Avoid narrowly defined life insurance policies that only cover specific loss of life, such as accidents, plane crashes or cancer. You're better off with insurance for any loss of life for a small increase in premium.

Don't skimp on life insurance. But remember that people with no dependents may not need life insurance policies at all. To estimate the amount of a life insurance policy, use our life insurance calculator. Most life insurance consultants estimate five to ten times your annual income. Smoker life insurance costs two to three times as much as non-smoker.

Jane Bryant Quinn advises how to find the best term life insurance quotes in When Your Term Life Insurance Expires. Budget Life uses the Term4Sale database recommended by Ms.Quinn for term life insurance comparisons.

Do you know how long you are going to live? See our article on life expectancy, or this related article on life insurance settlements. We take a somewhat contrarian view on these topics, so let us know what you think

Walcott - Squad will be there for Eduardo the entire time

While Eduardo is still in their thoughts, Arsenal’s focus is remains very much on the job in hand, according to Theo Walcott.

The youngster revealed that the best way the team can overcome the adversity of last weekend is to take all three points when Aston Villa visit Emirates Stadium this Saturday. Walcott also told of the feeling within the squad in the days that followed the Croatian striker’s horrific injury.

“Of course Eduardo has been on our minds,” Walcott told Arsenal.com. “It was a quiet coach ride home and felt just like a loss in truth.

“We had a couple of days off and then actually went bowling to keep our team-spirit up. A couple of lads went to see him yesterday and reported back to the rest of us.

“But we have tried to forget about it in a way and concentrate on Saturday.

“We don’t all want to rush there and then gradually stop. It will be more difficult for him in later months so we want to be there for him the whole time he is out.”

Eduardo’s absence, coupled with Robin van Persie’s lack of fitness leaves the door wide open for someone to seize a role up front. After grabbing his first Premier League goals at Birmingham, Walcott believes he is the man to do it.

“I feel upbeat, I feel confident,” he continued. “The goals helped and they gave me a boost so hopefully I can take that into Saturday.

“It was nice to get a poacher's goal. My agents have told me I need more of those. Then the second was more about the kind of player I am. Left-foot too, which is something people have questioned me about.

“Now I just have to improve with every game and time will tell [if I can fill the striker’s role]. After all, the boss picks the team so when I do play I will just do my best.”

[ Wednesday, February 27, 2008]

Mesothelioma-Introduction

Malignant mesothelioma is a rare cancer that occurs in the thin layer of tissue that covers the majority of your internal organs (mesothelium). Doctors divide mesothelioma into different categories based on what part of the mesothelium is affected by cancer. Mesothelioma that occurs in the tissue that surrounds the lung (pleura) is called pleural mesothelioma and is the most common form. Mesothelioma that occurs in the tissue in your abdomen (peritoneum) is called peritoneal mesothelioma and accounts for 10 percent to 20 percent of all mesotheliomas. In rare cases, mesothelioma can also occur in the lining around the heart (pericardium) and in the lining around the testicles (tunica vaginalis).

Between 2,000 and 3,000 people are diagnosed with mesothelioma in the United States each year. Men are more likely to develop mesothelioma than are women. It's more common in older adults — most people with mesothelioma are 65 and older — though mesothelioma can be diagnosed at any age.

Mesothelioma is closely linked to exposure to asbestos — a natural fiber that was once used in manufacturing a wide variety of industrial and household products. Mesothelioma rates have increased during the past 20 years in response to the widespread use of asbestos in the past. Many industrialized countries now limit asbestos use and enforce laws to protect workers who may be exposed. Researchers predict these efforts will lead to fewer cases of mesothelioma in the future.

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Mesothelioma

This section of CancerHelp UK tells you about mesothelioma. It includes symptoms and causes of mesotheliona, tests and treatment, living with mesothelioma and current research.

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Mesothelioma

Mesothelioma is a form of cancer that is almost always caused by previous exposure to asbestos.^[1] In this disease, malignant cells develop in the mesothelium, a protective lining that covers most of the body's internal organs. Its most common site is the pleura (outer lining of the lungs and chest cavity), but it may also occur in the peritoneum (the lining of the abdominal cavity) or the pericardium (a sac that surrounds the heart).

Most people who develop mesothelioma have worked on jobs where they inhaled asbestos particles, or have been exposed to asbestos dust and fibre in other ways, such as by washing the clothes of a family member who worked with asbestos, or by home renovation using asbestos cement products. Unlike lung cancer, there is no association between mesothelioma and smoking

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Vioxx Attorney

A Vioxx attorney offers clients expertise in the side effects of this common arthritis pain medication. Vioxx attorneys are familiar with the very specific regulations that govern medical products liability; a Vioxx attorney can usually provide more accurate information than a regular attorney.

The advantage to retaining a Vioxx attorney is that the victim will be represented by an attorney who understands their problems. Experienced Vioxx attorneys understand the long-term implications of the side-effects for plaintiffs and their families, which means Vioxx attorneys are prepared to fight to ensure that their clients receive full and proper compensation. Many Vioxx attorneys are able to obtain large settlements from defendant corporations without having to go to trial. Vioxx attorneys can also help victims and their families form reasonable expectations and make sound decisions.

A Vioxx attorney has experience representing victims of Vioxx side effects, such as cardiac arrest. An experienced Vioxx attorney fully understands the implications of this serious problem, and the liability of manufacturers. Consulting a Vioxx attorney early on can help victims receive appropriate medical treatment and legal representation. An experienced Vioxx attorney is likely available in your area, and can discuss the merits of your case at no charge.

For more information on Vioxx side effects and your legal rights, please contact us.

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VIOXX IN THE NEWS

• November 13, 2007 - Vioxx Settles for $4.85 Billion
• October 29, 2007 - Vioxx Users Want Medical Monitoring
• September 18, 2007 - Lawsuit Filed Over Vioxx
  

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If you have taken Vioxx and suffered a heart attack or stroke, call a qualified Vioxx attorney to preserve your legal rights and potential settlement. Vioxx attorneys listed on the right or left panel will be able to help you determine the best course of action in regards to your situation and/or claim, which could potentially include a Vioxx class action lawsuit if enough people in a given area suffer similar damages, or you may be better off filing an individual lawsuit claim. These LawInfo Lead Counsel qualified Vioxx attorneys will be able to provide the legal assistance you need, and can provide quality representation.

As soon as you contact a Vioxx attorney, you will know whether or not your damages will result in a settlement or litigation. While pharmaceutical and defective drug litigation, like Vioxx litigation lawsuits, are governed by federal laws, state statute of limitation laws may still apply. There is only a certain amount of time to evaluate your potential Vioxx class action lawsuit claim, contact Vioxx attorneys to take action now.

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Wenger - Taylor comments were 'excessive'

Arsène Wenger admits he made some "excessive" comments about Martin Taylor following Saturday's game at St Andrews.

Passions were running high during the Arsenal manager's post-match press conference after a game in which Eduardo sustained a broken leg from the Birmingham defender's challenge and the visitors let two points slip in the final seconds due to a debatable penalty.

Wenger was strident in his view on Taylor's tackle but later he re-assessed his own viewpoint.

“It was a highly emotional afternoon and we were all shocked by the injury to Eduardo," he said. "On reflection, I feel that my comments about Martin Taylor were excessive. I said what I did immediately after the game, in the heat of the moment.”

Eduardo - I am determined to overcome this injury

By Richard Clarke

Eduardo has given his account of the terrible events at Birmingham City on Saturday.

The Croatian, 25 on Monday, broke his leg following a challenge from Blues defender Martin Taylor in the third minute of the game at St Andrews. He was taken to hospital and underwent surgery that night. The striker has since returned to a London-based hospital for further treatment.

Speaking for the first time after the incident, the summer signing from Dinamo Zagreb ruled himself out of the rest of the season and Euro 2008 in the summer however he added that he is 'determined to overcome this injury'.

“I don't remember the incident very well and it is not something that I want to see again on television or in the newspapers," said Eduardo.

"All I remember is that when I fell, I looked down at my foot and it had turned the other way. The rest is just a blank. It was an unfortunate situation but these things can happen in football.

“I am unsure at the moment of the extent of the injury and how long I will be out of action for but I know that I won't be able to play for Arsenal for the rest of the season or be ready in time for the Euros this summer.

"But I'm not worried about that. My concentration and determination is on making as quick a recovery as possible. I am determined to overcome this injury.

“I would like to thank the medical team here at Arsenal for their efforts as well as the staff at Selly Oak Hospital who carried out the operation on Saturday night. Everyone there made me feel as comfortable as possible.

"I would also like to say how touched I am by the many messages of support I have received and to be surrounded by my loved ones at this time.”

No-frills carrier gets nod to raise ceiling fare

Budget carrier Pacific Airlines has received permission from the finance ministry to increase the maximum one-way fare from Ho Chi Minh City to Hanoi from VND1.375 million to VND1.55 million next month.

The carrier has been allowed to keep its nine different categories of cheap fares.

Six of them cost between 55 and 80 percent of the ceiling fare, and the remaining super-cheap tickets cost from VND15,000 to 50 percent of the maximum fare.

Pacific Airlines had a makeover as a no-frills airline in February last year.

The state-run Vietnam Airlines too has submitted to the Vietnam Civil Airline Bureau for approval new airfares on domestic routes.

Cultural festival in northern Vietnam tainted by disturbances

The Lim Festival, one of the most important traditional events in the northern Bac Ninh Province, was tainted by multiple disturbances this year ranging from dirty food stalls to rowdy gamblers.

Festival activities were organized in specific areas of Lim Town from February 18-20 this year, instead of on Lim Hill like in past years, easing visitor overcrowding.

Local police were successful in improving traffic security and safety by barring motorcycles from infringing on the performance areas.

These planned measures, however, were overwhelmed by the hundreds of food stalls swarming the central lanes of the festival, turning it into a sullied market.

Worse yet, raucous gambling activities in various corners distracted numerous tourists.

The traditional games featured at the festival center on the main attraction of the Quan Ho folk song performance, in which male and female singers take turn to improvise ditties in response to one another.

Indicative of this year’s problems, a group of Quan Ho singers gave a performance and presented baskets to request money at the same time.

Conference deliberates Vietnam’s export potential

Trade counselors must “fight” to find more markets for Vietnamese products, Prime Minister Nguyen Tan Dung said at the 2008 Trade Counselor Conference held Wednesday in Hanoi.

The conference, organized by the Ministry of Industry and Trade, gathered trade counselors, officials from countrywide trade and industry departments, and industrial associations’ representatives.

At the conference, Dung acknowledged the significant contribution of the trade industry but urged trade counselors worldwide to work harder to help the country reach the US$59.3 billion export target this year.

Last year, export revenues reached $48.56 billion, a 21.9 percent increase compared to 2006.

Minister of Industry and Trade Vu Huy Hoang said a lack of communication between trade counselors and local businesses and authorities has been a major factor hampering the ministry’s market expansion efforts.

“Trade counselors have not given local businesses much information, feedback or advice on trade with the host countries,” Hoang said.

“Nor have they been active in organizing trade promotion programs abroad.”

For their part, few local businesses have taken the initiative to contact trade counselors to express interest and concerns.

Hoang promised to improve communication channels between the two sides.

Head of the Ministry of Industry’s and Trade’s export and import department Pham The Dung said the most important information trade counselors can share involves giving reviews and forecasts of host countries’ markets.

“Based on trade counselors’ reports, local exporters can plan accordingly,” Dung said.

Hoang emphasized the importance of trade counselors’ responsibility, saying that, “In addition to ensuring export growth, they must also persuade foreign investors to come to Vietnam and brief domestic businesses on investment projects in host countries.”

Herculean task

The question of how to boost exports was discussed at great length with delegates concurring that much needed to be done to increase the country’s exports.

Hoang cautions that despite steady growth in recent years, Vietnam’s exporting businesses are still small and vulnerable.

“Our exports are easily affected by such external factors as price fluctuations, trade barriers and imported raw materials,” Hoang said.

Trade counselor in Japan Vu Van Trung said a major reason explaining the small growth in Vietnamese exports to Japan was a lack of diverse products, stressing that the country should explore the export potential of new products rather than simply relying on traditional items.

Prime Minister Dung agreed and urged local producers to look beyond the country’s current 29 major export items.

“Fruits, vegetables, mechanical and bamboo products, for instance, can be produced and exported more,” he said.

Yet, according to Trung, even tradition-al export products needed to be improved on.

Unattractive designs and labeling, he said, is a major setback to exports.

Another shortcoming of local products, according to the delegates, is product safety.

Trung said agricultural producers in particular need to ensure product safety or foreign importers may return their products.

“If we don’t diversify our products and improve its quality, we will find it difficult to compete on the international market,” he added.

PetroVietnam nears deal for KPI, Idemitsu refinery JV

State oil group PetroVietnam is moving closer to an agreement with Idemitsu and Kuwait Petroleum International to form a joint venture to build Vietnam’s second refinery, the 170,000 bpd Nghi Son plant.

“Talks with Idemitsu and KPI are underway and some significant progress has been reached, including some special treatment granted to the foreign investors,” an official from PetroVietnam said Wednesday.

PetroVietnam has said it would grant investors in Nghi Son refinery the right to sell directly to the domestic retail market, which up untill now, remains closed to foreign companies.

Crude oil imports for use in the refinery will be exempt from taxes, and so will exports of oil products, the group has said.

It was unclear what shares each investor would hold in the US$6 billion refinery, which will use 100 percent foreign crude oil when it is put into operation in 2013.

PetroVietnam is currently the sole investor in Vietnam’s first oil refinery, the 140,000 bpd Dung Quat refinery, which is scheduled to go on-stream early next year.

Source: Reuters

Mercedes-Benz begins 2008 in overdrive

German vehicle manufacturer Mercedes-Benz sold 276 units in January 2008, a 176 percent year-on-year jump.

This includes 120 cars of which the new C-Class accounted for 85 and the E-Class for 35.

It also sold 156 Sprinter minibuses.

Elsewhere, sales rose by 7 and 12 percent respectively in the US and Western Europe outside Germany to record levels of 18,300 and 27,900 units.

In Germany, sales rose by 13 percent to 15,500 units.

In the Asia Pacific region, the company sold 11,700 units, a 19 percent jump.

Old motorbikes trace the past

An expat returns to homeland Vietnam to satisfy his hobby of collecting and restoring old motorbikes that have mesmerized him by shape and working sound.

Danny Dung thinks an old vehicle is closely connected to its owners, so he always tries to get as much information as possible about them when he is buying motorbikes.

He can live another life when he rides it, if he knows enough, he says.

Dung is known as one of the real fans of old motorcycles in Saigon.

It is his and his friends’ strong love for the machines that started the trend of buying classic bikes in the densely-populated city.

As a child in Vietnam, Danny Dung showed his interest in engines, but he could only afford old bicycles which he customized.

In the early 1980s, he made bikes with strange lights and sounds, which his friends still remember.

Danny Dung emigrated to the US in the late 1980s and took a course in mechanics.

He joined a Harley Davidson club in California.

“Perhaps Asian people are ashamed of their small body, so they don’t like big motorcycles.” There were only a few Asians in the club he says.

“For me, whenever I heard the sound a Harley made, I felt mesmerized by it and I decided to save up for one to join the club.”

Danny could afford to buy one second-hand.

He traveled and met many Harley fans in the US and found collecting old motorbikes was interesting.

Danny believes old motorbike lovers always have a philosophy about their hobby.

He says, “For me, old motorbike users are historians of mechanics because they keep track of human inventions.”

In the early 1990s, Danny returned to Vietnam for a visit.

A short time later, he and a few Vietnamese friends established an old Vespa club, the first in HCMC.

The old Vespa scooters came back to life again and became objects of pride.

Lots of youth, middle-aged people and foreigners came to Danny to find a bike.

When old Vespa scooters got hard to find, Danny started to look for old German BMW motorbikes from1945 to 1950.

It seemed like Danny waved a magic wand and turned piles of old engines into luxury toys for BMW lovers.

Saigon saw the reappearance of vehicles that produced powerful sounds.

“Most old BMW customers are foreigners living and working in Vietnam,” Danny said.

“Their big body is suitable for western people, and they are very expensive.

The cheapest one is over US$5,000.” His reputation traveled far and foreigners came from abroad to Danny to buy an old BMW.

Customers tried to find him because he could make old engines work as well as new ones.

He could also keep the original color and shape of the vehicles and add something decorative.

Then old BMWs became rare too, but Danny’s old motorbike passion was still strong and he saw a man on an old Harley Davidson.

He began another hunt and has bought a dozen of the classic American machines.

He spends his time and energy repairing and restoring them and sharing his interest with others.

Most people who come to buy old Harleys from Danny are foreigners.

Danny is willing to sell them to anyone who is passionate about old motorbikes and knows their value.

However, there is one exception - the Harley Davidson that was used to escort the former Saigon Regime’s president Nguyen Van Thieu.

One person offered US$10,000 for it, but Danny refused.

Apart from old Harleys, Danny has rare motorbikes like a German TWN and old cars like a Chevrolet Impala, a Camaro, and a 1955 Ford Customline.

Some film makers have rented Danny’s cars for movies, giving his old cars new lives and greater value.

Danny has also found a market for spare parts and set up a busy little factory for hand-made parts for the old motorbikes and cars.

As a result, he has an income to fund his passion for classic vehicles.

While everyone is moving forward with modern equipment, Danny and his friends are finding value in old machines.

He says, however, he doesn’t feel excluded from the modern flow because everyone has a past.

Vietnamese resort named the best in the world

Vietnam’s Nam Hai Resort & Spa has been named the best resort in the world in the Travel + Leisure magazine’s annual Design Awards.

A panel of seven design industry experts lauded Nam Hai in Hoi An is ancient town as a stylish take on local, single-story, thatched-huts, in the March issue.

Travel + Leisure praised the property for its creative qualities, including its dark wood elegance and rich materials.

The 35-hectare resort, which opened in December 2006, features traditional residences of Vietnam, nha ruong, creatively re-interpreted to accommodate modern technologies and amenities.

Most of the resort’s 60 one-bedroom villas and 40 pool villas border the sea around a horseshoe-shaped spit of sand.

This is the fourth year Travel + Leisure has held the awards.

Nam Hai has established a reputation as one of the world’s great resorts.

Earlier this month, luxury travel site Globorati.com named it one of the top 10 most romantic hotels for couples.

Government may reduce rice exports in 2008

Vietnam may cut rice exports this year to ensure the country has sufficient supplies for its own use, Tien Phong newspaper reported, citing Vice Minister of Industry and Trade Nguyen Thanh Bien.

The ministry hasn’t decided whether to sell to other countries, which have ordered 1.5 million tons of rice, the report said, citing Bien.

Ensuring national food security and stable domestic prices will be the top priority, according to the report.

A record cold spell in northern Vietnam has seriously hurt the country’s agricultural production, the government said in a statement last week.

Workers load a ship with rice at the Saigon Port

The month-long cold weather, started in mid-January, killed 31,000 cattle and destroyed more than 110,000 hectares (271,800 acres) of paddy, according to the Ministry of Agricultural and Rural Development.

Vietnam has set a target for rice exports of 4.5 million tons in 2008, according to the ministry.

Source: Bloomberg

Australian firm wins $70 mln steel deal in Vietnam

Australia's Vietnam Industrial Investments Ltd. has won a licence to invest $70 million in steel ingot production in northern Vietnam, the official Vietnam News Agency said.

The firm would build a plant in the port city of Haiphong over the next 24 months to supply 500,000 tons of steel ingots annually to its two other steel plants nearby, the agency said in a report late on Tuesday.

Vietnam Industrial Investments runs five subsidiaries in the Southeast Asian country, with the two in Haiphong producing steel wire rod and steel reinforcing bars.

The demand for steel in Vietnam, spurred by annual economic growth of more than 8 percent and a real estate boom, would rise 20 percent this year after a 42 percent surge last year to 10.3 million tons, industry experts said.

Source: Reuters

Vietnam’s first satellite launch delayed until April 10

The date for launching Vietnam’s first satellite into orbit has been put off until April 10, an official of the Vietnam Post and Telecommunications Group (VNPT), said Saturday.
The satellite, Vinasat-1, was initially scheduled to be launched at 132 degrees east on March 29 but was then delayed until April 2.
Vietnam registered to release the satellite in 1999 with the International Telecommunications Union.
The second delay was intended to ensure that the launch would be a complete success, Nguyen Quang Hung, deputy director of VNPT’s Satellite Information Center, said.
He added that VNPT has completed business plans for the satellite and is seeking polices for capitalizing on its use.
Vinasat-1 will be able to provide more than 200 digital television channels along with tens of thou-sands of Internet data transmission and telephone channels.
The US$180 million satellite is expected to cover Vietnam, Laos, East Asian nations, India and Australia, and has a projected lifespan of 15 years.
The lift-off of Vinasat-1 will also help improve the country’s telecom network and save around $15 million per year by not having to rely on other, foreign satellites.
The send-off on April 10 may be broadcast live on Vietnam Television.
Source: VNA

January automobile sales soar 156 percent

Auto sales in Vietnam in January soared 156 percent from a year earlier to 12,084 vehicles as well-off consumers switched from motorcycles, the Vietnam Automobile Manufacturers Association said over the weekend.
Toyota sold 1,841 vehicles in January, accounting for 15 percent of sales by all 16 car makers and selling 62 percent more vehicles than a year earlier, the association said in its monthly annual report.
Ford Motor Co.’s sales jumped 70 percent from last January to 809 units as it reported strong sales of the popular Focus sedans, the sport utility vehicle, Ford Everest, and its all new Ford Escape SUVs.
GM Daewoo also reported robust growth, with sales jumping 131 percent from January 2007 to 1,005 vehicles due to strong demand for its Captiva utility vehicle and Centra sedan.
Dealers said buyers still had to wait months to drive the models home.
The Finance Ministry was considering reducing special consumption tax on cars which now stands at 50 percent, state media reported.
Source: Reuters

Catfish exporters look forward to good season

Processors based in the Mekong Delta are enjoying the first fruits of an increasing international demand for Vietnamese catfish tra and basa.
Analysts estimate catfish fillet exports to rise to US$1.2 billion this year from $1 billion, thanks to increasing demand and prices.
Among the major reasons for this is a decreasing supply of other varieties of fish.
Eastern European countries, for instance, are set to restrict cod fishing starting this year.
Many predict Eastern Europe will overhaul Central America as the second biggest importer of Vietnamese catfish after the European Union this year.
Last year, it ranked fourth behind the Middle East.
Catfish processors in the delta businesses resumed work as early as the fourth of the New Year – Tet was on February 7 – scrambling to procure catfish, and pushing up their prices by VND500 per kilogram to VND15,500.
Large players expanding
Major exporters plan to expand processing facilities as well as the catfish farms they run.
Duong Ngoc Minh, head of the Tien Giang Province-based Hung Vuong Joint Stock Company, which accounted for over 10 percent of the country’s total catfish fillet exports last year, said his company planned to open two large plants soon in Vinh Long and Dong Thap provinces.
With seven other smaller processing facilities located near catfish farms across the delta, Hung Vuong aims to export 50,000 tons of fillet this year, valued at $120-130 million.
Minh said the firm’s 5,000 Tien Giang-based employees would have to work weekends to meet the burgeoning export demand.
Nguyen Van Dao, the head of another Tien Giang-based processor, Go Dang Joint Stock Company, said his firm’s 2,000 workers had returned to work earlier than usual after Tet since there were plans this year to increase catfish exports by a fifth to 14,000 tons.
Go Dang is also thinking about either expanding its existing plant or building a new one to increase production.
Another major exporter, Ben Tre Forestry Aquaproduct Import and Export Company (Faquimex), is set to spend VND50 billion (over $3 million) to build a second catfish processing plant with a capacity of 5,000 tons a year.
The factory is expected to be up and running next September.
Large exporters like Faquimex and Hung Vuong also plan to expand their catfish farms.
Nguyen Hoai An, vice president of Faquimex, one of the few exporters to farm its own fish, said his company would enlarge its current 120 hectares of saltwater ponds and 50 hectares of freshwater ponds.
Hung Vuong’s Minh said his company owned 120 hectares of catfish farms in Tien Giang, Ben Tre and Vinh Long and had tied up with ten households in the same provinces to farm another 100 hectares.
Providing the households financial and technical assistance to farm and buying all their fish was an efficient way to secure raw material, he added.
However, all these only meet 80 percent of Hung Vuong’s needs.
Small fish farmers gaining
The bright prospects for processed catfish exports this year translate into big gains for independent fish farmers, on whom medium and small exporters rely.
A catfish farmer in Tien Giang said it cost VND13,000 to raise one kilogram of catfish, but it fetched VND15,500 on the market.
“So if I farm one hectare, I can make a profit of at least VND500 million a year,” she said.
Experts warned, however, that signs of speculation were appearing.
Go Dang’s Dao said if speculation and increasing demand pushed up raw fish prices to VND17,000 per kilogram, many businesses would suffer losses.
Benefits trickle down to workers
The optimistic forecast has prompted some producers to increase workers’ wages and benefits.
Hung Vuong, for instance, plans to increase monthly wages by 15 to 20 percent to VND3 million.
Others are building apartments to take care of their workers’ housing needs in an attempt to retain then.
Minh said the overall picture was positive, predicting “If raw fish quality and prices remain stable and the international market sustains its demand, Vietnam will surely hit the $1.5 billion mark in catfish fillet exports in 2010.”

Rents zoom as office space shortage hits HCMC

Rents rose by 40 percent last year in Ho Chi Minh City, the country’s business hub, and a similar trend is expected this year due to high demand and continuing shortage of space.
The chief of a real estate company in Go Vap District, HCMC, told Thanh Nien that his company had been looking in vain for a new office in the downtown area for over two weeks.

He had contacted many office buildings with monthly rents of under US$30 per square meter but there was no vacancy, he said.

“It’s hard to find a satisfactory place even if one has a lot of money, because of the demand.”

A real estate agent told Thanh Nien that he knew about an 80-squaremeter office available in a building in District 1 – but at a steep $5,600 monthly rent.

In addition, five years’ rent had to be paid in advance.

The agent himself would have to be paid a commission of six months’ rent.

DIFFERENT GRADES

• Grade A – Distinctive architecture (known architects and contractors), high rise building, large floor plate (>1,000 sq.m), preferably column free, ceilings > 2.8 m, efficiency, quality systems, Leadership in Energy and Environmental Design (LEED)
• Grade B – Good architecture, above 7 stories, floor plate between 500 and 1,000 sq.m
• Grade C – Functional, floor plate less than 500 sq.m

Office rents in Vietnam’s southern metro are so high that they ranked 17th out of 203 locations in 58 countries, according to a report released last week by Cushman & Wakefield, a leading global property services firm.

High demand and the continuing shortage of grade A buildings in the central business district (CBD) had seen rentals grow by 40 percent since last year, the report said.

This comes on top of a 20 to 30 percent hike every year for the past three years.

The average monthly rent for a grade A office is currently $50 to $60, and even $70 in some buildings in District 1 like Diamond Plaza, Metropolitan, Saigon Tower.

Grade B buildings go for $30 to $40.

The demand for office space has been escalating due to the city’s booming economy, strong growth in foreign investment, entry of multinationals, and new concerns regarding safety of working environments.

According to statistics from CB Richard Ellis Vietnam (CBRE), a real estate services company, the total existing supply is 665,500 square meters, including 81,000 sq.m. of grade A space, all of which has been taken.

Around 262,000 sq.m. of office space will come into the market this year, including 191,000 sq.m. of grade A and B space.

Yet, CBRE’s managing director, Marc Townsend, forecast monthly rent for grade A offices to jump to $65-70 per sq.m. this year excluding service charges and value-added tax.

Blaming this on inflation, he added that construction delays because of the rising costs of materials would make it harder to satisfy the demand.

Jones Lang Lasalle, a real estate services and financial management firm, added that the government’s opening up of the banking sector would also have a significant effect on the office apartment sector.

The entry of foreign banks would push up the demand for high quality office buildings.

It will take a dramatic increase in new supply across all building grades from 2009 onwards to lead to a softening of rents.



MARKET HIGHLIGHTS

SIGNIFICANT 2007 CONSTRUCTION COMPLETIONS

BUILDING MAJOR TENANT SQ M COMPLETION DATE
Petro Vietnam Petro Vietnam 16,000 Jul. 2007
Sacombank Tower Sacombank 17,700 Nov. 2007
SIGNIFICANT PROJECTS UNDER CONSTRUCTION

BUILDING MAJOR TENANT SQ M COMPLETION DATE
VP Tower VP Bank
15,540 Feb. 08
Centec Tower 23,000 Sep. 08
Sailing Tower 14,600 Sep. 09
CT Plaza Le Thanh Ton 35,000 Dec. 09
Asiana Plaza 32,000 2009
A&B Tower 30,000 2010
PRIME RENT AS OF DECEMBER 2007

Location Rent Growth % (pa compound)
US$ /sq.m/yr 5 years 1 year Short term trend
CBD 818 130 41 Up
CBD Fringe 474 - 30 Up
Airport Link 531 - 23 Up
Airport 303 - 25 Up
Racecourse 198 - 15 Up
Van Thanh 303 - 10 Up
Phu My Hung 264 - 22 Up
Expected year of completion Supply of new grade A, B & C buildings Expected supply (sq.m)
2008 40 261,949
2009 24 365,969
2010 10 288,156
TOTAL 74 916,074

Vietnam may raise auto import duties to ease traffic jams

Vietnam may raise automobile import duties to cut worsening traffic congestion fuelled by surging sales of imported and locally-assembled cars, state media reported Friday.
As traffic is choking the streets of Hanoi and Ho Chi Minh City, Prime Minister Nguyen Tan Dung has asked government ministries to draw up suitable tax policies on both imported cars and spare parts, Vietnam News Agency reported.
Proposals range as high as 70 percent import duty rates.
Customers who have heard about the possible tax increases are rushing to buy cars in anticipation of higher prices.
January sales of vehicles assembled in Vietnam rose year-on-year 156 percent to over 12,000 units, the Vietnam Automobile Manufacturers’ Association said, pointing to a 350 percent increase in the commercial vehicle sector.
Imports of completely built units shot up by an even steeper 421 percent year-on-year, with about 3,000 units worth almost US$50 million imported into Vietnam in January, said the Industry and Trade Ministry.
Vietnam moved from mainly bicycles to motorcycles in the 1990s and is now witnessing a rapid rise in car ownership, especially in the big cities.
The South East Asian country of 86 million people, last year cut car import duties several times from 90 percent, before it joined the World Trade Organization in January 2007, to the current level of 60 percent.

Dong drops after gov’t says to control prices more

Vietnam’s dong fell after the government said it is determined to curb inflation. Bonds fell Thursday.
“The government will take every possible measure to stop consumer prices from rising and to stabilize the market,’’ Deputy Prime Minister Truong Vinh Trong said.
The dong lost 0.07 percent to 15,969.5 against the US dollar in Hanoi, the first drop in almost two weeks, according to prices compiled by Bloomberg.
Government bonds dropped Thursday, with the yield on the benchmark five-year note rising 1 basis point to 8.59 percent, according to a daily fixing price from 10 banks compiled by Bloomberg.
A basis point is 0.01 percentage point.
Source: Bloomberg

Textile-garment earnings not all they’re cracked up to be

Textile and garment exports are the country’s number two revenue earner, but local producers lament mediocre profits.
Though textile and garment exports earned Vietnam’s second-largest revenues in 2007, producers’ dependency on increasingly expensive imported raw materials is hindering profits and threatening the industry.
Urban inflation and increasing wages are also burdening the industry, according to a local producer.
The textile and garment industry has been the country’s number two export earner since 1996 and the sec-tor produced US$7.8 billion in revenues last year, second behind crude oil, the country’s long-standing number one export earner.
But analysts have said that local textile and garment producers’ added value only made up 20 to 25 percent of the industry’s total export revenues due to the rising costs of imported materials.
Local manufacturers say they can’t get away from the imports because their foreign partners prefer products made from imported materials and the domestic industry does not produce high-quality and diverse raw material.
The dependency on imports is threatening business and production stability, according to insiders.
Experts estimate that as much as $6 billion out of the total $7.8 billion in earnings went to pay for raw imports.
The average export price of a local-brand shirt is around $4, $2.75 of which is spent on materials.
Due to perceived quality differences, made-in-Vietnam shirts under foreign brand names such as GAP, J.C.
Penney, Target and Sears are often sold for over $20 each.
A not-so-fertile field
In HCMC, which accounted for almost half of last year’s textile and garment exports, many producers say they are starting to reconsider the potential of their industry.
One textile and garment company head who wished to remain anonymous said he felt the industry was not the “right one” for him.
“Producing textiles and garments in HCMC is no longer a piece of cake as production costs are rising on the back of increasing prices and wages,” he said.
An official from the HCMC Association of Garment Textile Embroidery Knitting (AGTEK) estimated that 50 percent of member businesses have no intention of expanding while 20 percent want to slash production and the rest may move out of the city in the near future.
Some manufacturers have already moved in search of lower labor costs.
Nha Be Garment and Scavi have both established factories outside the city.
Others like Thanh Cong Garment Joint Stock or Garmex Saigon have diversified their businesses by building department stores in what many have said is an attempt to offset low production profits.
A handful of producers also said they are thinking about switching business altogether by converting their facilities into office buildings or apartments for rent.
Textile and garment producers also fear losing their workers to higher-paying jobs.
“At high production time, I’m always in the hot-seat, not knowing how many of my workers will leave me,” said HCMC textile producer Diep Thanh Kiet, who plans to gradually lay off his 800-strong workforce by the year’s end before he switches businesses.
“What is happening now – local textile businesses moving out of the city, diversifying their business, or simply shutting down – happened in Taiwan and Thailand many years ago,” he said.
“It is time that Vietnam reviews the lessons of these countries and creates her own solutions.”