Just 50 foreign-invested foreign advertising firms held 70 percent of Vietnam's advertising market, estimated to be worth 400 million U.S. dollars last year, while 3, 000 domestic ones share the remainder, local newspaper Vietnam Investment Review reported Monday.

Out of the 3,000 companies, only 100 are capable of competing with their foreign-invested competitors, Vietnamese Deputy Minister of Culture and Information Dinh Quang Ngu said, noting that the 50 foreign advertisers operate in Vietnam via joint ventures and representative offices.

"Domestic advertising firms have a dire shortage of skilled human resources, financial capability and international experience in competition with foreign-invested companies," he said.

Under the World Trade Organization (WTO) commitments, foreign- invested advertising firms will be permitted to establish branches in Vietnam by the end of this year, according to the Ministry of Culture and Information.

From 2009, they will be allowed to form wholly foreign-invested entities, and the existing limit of 49 percent of chartered capital they are permitted to contribute to ventures will be removed.

A master plan for the development of Vietnam's advertising industry is being drafted by the ministry focuses on developing human resources and establishing training centers.

According to figures released by the ministry, 80 percent of the turnover in the industry was in television and newspaper advertisements, and just 10 percent from billboards.

Now, there are 60 broadcast stations, and 700 newspapers in Vietnam.

Source: Xinhua