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BUSINESS IN BRIEF 9/7
VNA,
Rolls-Royce in talks over aircraft engine deal
Vietnam Airlines
(VNA) and Rolls-Royce are in talks over the national flag carrier’s plan to
buy engines for 14 Airbus A350 aircraft, heard a meeting on Thursday between
the Ministry of Transport and Rolls-Royce CEO John Rishton.
At the meeting, the
transport ministry also mentioned VNA’s plan to purchase engines for 19
Boeing 787 aircraft and invited Rolls-Royce to join the bidding.
Rishton expressed
interest in this plan, describing it as a good chance for Rolls-Royce to
cement ties with VNA and
Many aircraft of
the air carrier are currently powered by Rolls-Royce engines.
Aircraft engines
made by Rolls-Royce have high reliability and reasonable operating cost.
Rolls-Royce often ensures prompt delivery of necessary equipment for aircraft
maintenance and repair, said the transport ministry.
Rolls-Royce is a
world leader in aircraft engine manufacturing, having supplied engines to
over 300 air carriers and 4,000 civil aviation firms.
Six Vietnamese
exhibits taking part in the Sri Lankan Home & You Exhibition in
The stands, jointly
organised by the Vietnamese embassy and Vietnamese companies,
introduced beautiful images of Vietnamese land, people, culture and
tourism as well as the country’s lacquer paintings and souvenirs.
The exhibition
attracted 200 stands featuring building materials, timber and agricultural
goods, electronic products, handicrafts, gifts, toys, clothes, footwear, home
appliances and food from domestic and international businesses.
On the sideline of
the event, the Vietnamese Embassy on July 5 held a get-together with a number
of Vietnamese businesses and their 50 Sri Lankan partners to seek cooperation
opportunities..
Trade counselor
Phung Trong Tuan praised Vietnamese enterprises’ participation as a
contribution to strengthening bilateral economic and trade ties.
Dealing
with trade lawsuits
Despite enjoying
impressive export growth over the past five years,
According to the Ministry
of Industry and Trade’s (MoIT) Competition Authority, trade lawsuits arise
from both export growth and economic slowdown.
The widespread
financial and economic crisis has forced down the purchasing power of
Vietnam’s key
export commodities are employing relatively basic technology with little
added value, such as seafood, garments and textiles, footwear, and wood and
timber furniture.The success of these commodities is fuelled by low labour
costs and the country’s natural advantages.
Price competition
has increased the risk of anti-dumping lawsuits. A number of Vietnamese
businesses have even engaged in contract price wars with each other, hurting
exports more generally and creating more lawsuits.
The Competition
Authority says
These calculations
often reveal anti-dumping ranges as much higher than the real prices of
Vietnamese products, prompting domestic producers in importing countries to
file legal challenges.
The MoIT admits
that despite the great efforts of exporters and business support units,
Vietnamese business capacity for coping with anti-dumping lawsuits remains
limited.
Insufficient legal
knowledge and anti-dumping regulation misunderstandings exacerbate the
problem.
Anti-dumping
lawsuits over shrimp, catfish, and leather & footwear exports indicate a
rising trend threatening huge losses for Vietnamese businesses already under
considerable stress.
The Competition
Authority argues that apart from improving their competitiveness, domestic
businesses should keep their basic anti-dumping knowledge as up to date as
possible, standardise their accounts, and preserve all data as evidence
that could refute any dumping allegations.
Particular attention
should be given to market solutions, such as shifting competition by price to
competition by quality and diversifying both products and markets.
Vietnam
International Arbitration Centre (VIAC) Chairman Tran Huu Huynh says
international arbitration permits disputing parties to specify the
organisation serving as arbitrator, the place of arbitration, and the
language in which arbitration is undertaken.
Both national and
international laws can be employed to settle disputes. The final verdicts
issued by arbitrators are recognised and valid in nearly 150 nations.
A concurring
Competition Authority representative notes Japanese experiences demonstrate
the importance of hiring qualified trade lawyers before initiating any legal
action.
New cotton
plant will aid garments sector
Work on
construction of the Phu Hung cotton plant will start in the central
With a total
investment of US$12 million, the plant is expected to be put into commercial
operation in August next year with an annual capacity of 21,600 spools.
Once completed, the
plant will generate jobs for 200 workers and produce 100 percent cotton yarn
with average output of 240 tonnes per month.
The development
strategy for the garment industry has been approved by the Prime Minister and
the Ministry of Industry and Trade for the Central Region, including Quang
The region is the
manufacturing centre of the country's textile industry, and the plant will
help it to stay competitive when various free trade agreements are signed,
said Vinatex deputy chairman Le Tien Truong, adding the plant would set a
national industry standard.
As the driving
force behind the Vietnamese textile and garment industry, Vinatex has also
formed a joint-venture with
According to
Vinatex, the two sides had come to an agreement to build a US$120 million
fibre production plant in the
Both Vinatex and
Itochu Group are in the legal stages with plans to start construction of the
plant at the end of this year.
Since last year,
multiple foreign fibre, yarn and textile producers had come to
Large firms like
Hong Kong's Texhong Group,
The Hong Kong-based
apparel manufacturer TAL Group late last month revealed plans to boost
investment in
The Hong Kong
clothing producer first entered the local market in 2004 with a US$40 million
garment and textile factory in
However, the
country also spent around US$5.4 billion on importing raw materials for the
sector, up 21.1 percent against last year.
Experts said that
the sector was appealing to global investors who were hoping to foster local
production of Vietnamese garment and textile products.
New EU
tariff scheme: opportunities and challenges
The revised EU
Generalised System of Preferences (GSP) scheme offers lower tariffs, helping
goods from developing countries, including
These issues were
discussed at a recent seminar on the EU’s new GSP rules and opportunities for
The new GSP rules
will enter into effect on January 1 next year.
Trade and
investment between
From 1995-2012,
bilateral trade grew nearly 20 times, from US$1.5 billion to US$29 billion.
In 2012 alone, the
EU for the first time surpassed the
The high level of
supplementary assistance and less direct competition mark a prominent point
in Vietnam-EU bilateral trade.
Franz Jessen, EU
Ambassador and Head of the EU Delegation to
Around 49 percent
of
Next year’s new GSP
rules will give a further boost to
Analyzing the
challenges for
Consequently, the
market share of imports from
In the face of
these challenges, businesses need to promote consultations with MoIT and
monitor the negotiation process on Vietnam-EU trade, in order to adopt a
flexible market strategy and encourage the EU to continue granting
preferences from its new GSP scheme.
Former Industry and
Trade Minister, Truong Dinh Tuyen said the countries applying GSP for
GSP brings benefits
such as low import tariffs, increased production capability, job creation and
assured growth.
Thanks to GSP,
However, certain
GSP limitations require Vietnamese businesses to fully grasp criteria such as
the rule of origin, graduation criteria and conditions for competition, Tuyen
said.
Participants at the
seminar said that, in the context of
It is essential to
make the best of the EU’s GSP rules based on the three basic conditions:
where goods fully meet rule of origin; goods are transported directly from
beneficiary countries to the EU and evidence on the origin of products must
be included, they noted.
The fourth round of
the EU-Vietnam Free Trade Agreement (EVFTA) negotiations concluded in the
Belgian capital,
The Vietnamese
delegation was led by Deputy Minister of Industry and Trade, Tran Quoc Khanh,
while the EU representatives were headed by Mauro Petriccone, Director for
Asia and
Both sides
expressed their delight at progress made during the negotiations from July
1-5, which focused upon trade in goods and services, investment, customs co-operation,
technical barriers to trade (TBT), sustainable development and legal issues.
The two chief
negotiators said that both
The next round of
negotiations is scheduled to be held in
Once the FTA is
eventually signed, it will benefit
The EU is now
As of January 2013,
the EU had 1,810 projects in
IFC
supports Vietnamese businesses
The Vietnam Joint
Stock Commerical Bank for Industry and Trade (VietinBank) and the
International Finance Organisation (IFC) have signed a US$120 million trade
agreement to help Vietnamese businesses enhance their imports and exports.
The agreement
is within the framework of the IFC’s Global Trade Finance Program
(GTFP), which is being implemented in over 150 countries through more than
500 banks.
It will help
promote trade in newly emerging markets through linking local financial
organisations with international banks and create conditions for these
organisations to supply competitive trade finance services.
The programme will
help VietinBank to cover payment risk when granting trade financing to local
small and medium-sized enterprises.
In his speech at
the signing ceremony on July 5, Nguyen Van Thang, VietinBank Director
General, said the capital will facilitate domestic business activities.
Since its launch in
In the 2013 fiscal
year, it has committed to the provision of US$800 million - a record high
guarantee for banks.
Nathalie Louat,
IFC's senior manager of financial markets in East Asia and the Pacific, said
by supporting banks' capacity to deliver trade finance solutions, IFC has
helped businesses to maintain their import-export activities and contribute
to ensuring stable growth despite having liquidity difficulties.
As VietinBank’s
strategic partner since 2011, IFC currently holds 8.03% of the bank’s equity
stake.
Second
aircraft spare parts factory to take shape
Japanese firm,
Mitsubishi Heavy Industries Ltd will build a second factory in 2014 to
manufacture spare parts for the Boeing 777 in
Group officials
said on July 5 that the new facility will be located near the original
factory in
Meanwhile, the
factory in
The factory in
Finance
Ministry holds dialogue with Korean businesses
The Ministry of
Finance on July 5 organised a dialogue conference with
Attendees included
Deputy Finance Minister Hoang Anh Tuan, RoK ambassador to Vietnam Ju Dae Joo
along with Korean entrepreneurs in
Representatives
from the General Department of Taxation of Vietnam (GDTV) gave a brief
introduction of tax policy mechanisms issued since September 2012 and new tax
policies to be promulgated in the time to come.
They mentioned
solutions to ease business difficulties such as extending the payment of
corporate income tax and value added tax and reducing land rental.
They also gave a
presentation on the Laws on amendments and supplements to some articles of
corporate income tax and tax management which were recently approved by the
National Assembly.
Addressing
the conference, Deputy Finance Minister Hoang Anh Tuan pledged efforts to
create the best possible conditions for foreign-invested businesses including
those from the RoK.
The finance sector
will consider proposals from businesses to fine-tune tax and customs
policies, Tuan said.
The Korean
ambassador praised the Vietnamese Government’s efforts to adopt new tax and
customs policies and expressed the hope that the annual dialogue conference
will help Korean businesses develop on a firmer foundation.
Vietcombank
at 445th in world’s top 1,000 banks
The Banker Magazine
has placed the Bank for Foreign Trade of Vietnam (Vietcombank) at 445th in
its list of the world’s top 1000 banks.
Vietcombank jumped
91 positions from its 2012 ranking, leading all other Vietnamese banks
included in the list. Vietcombank has advanced a total of 141 places since
2010.
The bank was third
in the five highest ranked Asian banks with the best growth rate in tier 1
capital.
The Banker’s
rankings are based on tier 1 capital and criteria including general assets,
profit, and bad debts.
The Banker’s annual
international bank listings are eagerly anticipated by the world’s finance
and banking sector.
The Ministry of
Construction and the People’s Committee in the central city of
The condominiums
are located near Rong and Tran Thi Ly Bridges, and have joint investments by
Duc Manh Company and 579 Construction and Investment Company.
The four
condominium projects comprise of more than 1,000 apartments, with each
apartment over an area of 53.44 square meters, at a total cost of VND500
billion (US$24 million).
Each apartment will
cost from VND300-350 million ($14,000-16,486) with two bedrooms, a restroom,
a living room and a kitchen.
As per schedule,
the four projects will be built within 27 months and buyers will receive the
apartments in the third quarter of 2015.
At the
groundbreaking ceremony, the investors donated VND100 million to poor
families in An Hai Tay Ward of Son Tra District and My An Ward of Ngu Hanh
Son District.
Nguyen Van Binh,
Governor of State Bank of
Metro Line 2 will
start from Tay Ninh-An Suong bus station in District 12, and will run through
Truong Chinh, Cach Mang Thang 8, Pham Hong Thai, Ham Nghi Streets, Ben Thanh
Market, crossing
The first phase of
the Metro Line will be 11.322 kms, including the underground length of 9.315
kms.
The route will have
11 terminals, including 10 underground stations.
The US$1,375
billion project will be financed by Asian Development Bank, European
Investment Bank (EIB) and KFW-German Development Bank and expected to be
complete by 2016.
Ministry to
penalize contractors of Expressway for delay
The Ministry of
Transport will penalise some contractors of Hanoi-Lao Cai Expressway for
delays in carrying out the project as per contract terms.
Minister Dinh La
Thang has instructed the Vietnam Expressway Services Company (VEC), investor
of the project, to verify credentials of the contractors who are running
behind schedule.
He has ordered VEC
to replace those contractors who are unqualified to construct and complete
the project. They will also not be sanctioned any other transport related
project in future.
Minister Thang
criticized VEC for not taking the initiative earlier to sort out the delay
issues which has impeded the progress on the Expressway.
He has ordered the
Company to prompt contractors to speed up construction of Yen Bai-Lao Cai and
Hanoi-Vinh Phuc stretches to open for traffic at the earliest.
According to
Statistics Singapore, four major product groups recorded export values
exceeding SGD 100 million (US$ 78 million) – machinery, equipment and tools;
phones and spare parts; paper and paper products; plus glass and glass
products.
Rice and seafood
exports were also higher than last year's figures.
Two-way trade
turnover totalled SGD15.8 billion (USD12.3 billion last year, of which
SGD 2 billion (US$ 1.56 billion) came from Vietnamese exports.
Anti-dumping
probe on stainless imports
The decision was
announced by the Viet Nam Competition Authority (VCA) under the Ministry of
Industry and Trade.
The decision,
realised by directive No.4460/QD-BCT signed by deputy minister Tran Quoc
Khanh earlier this week, came after a complaint by two local steel makers,
POSCO VST Co Ltd and Hoa Binh Inox Joint Stock Company.
The plaintiffs said
that steel products from those exporters were being sold at much lower prices
than locally manufactured steel.
The investigation
will be conducted by the VCA on batches of products imported between April 1,
2012 and March 31, 2013.
Cold-rolled stainless
steel is the third commodity
Shipping
industry faces troubled waters
A number of
shipping companies in
The Vietnam
Maritime Administration published a report about shipping development plan
from 2013-2020, with view to 2030. The report said that
The Baltic Dry
Index (BDI) remains at 700 points, 11,793 points lower than 2008. Ship rental
costs also sharply declined from USD72,970 to USD7,150 per day, per vessel of
standard ship between 60,000 and 80,000 DWT.
In the meantime
shipping companies wait for the situation to turn around. Many experts said
that when the BDI reaches 3,000 points things will look better for the
industry. For now, however, competition for domestic companies remains tough.
The report also
pointed out several other shortcomings, such as old ships, or vessel types
that are not in demand.
As of this year,
about 40% of cargo ships were over 15 years old and do not meet international
requirements for maritime safety, which
The report went on
to say, "We should focus on domestic transport and shorter routes. It is
unrealistic to expect to create a fleet capable of 8.4-9.6 million DWT by
2015. It is also unreasonable to continue expanding our shipping fleet amid a
market with declining demand."
According to the
Vietnam Maritime Administration, 40% tonnage of vessels will be cut down so
that, by 2015, the total tonnage of the Vietnamese fleet will be reduced to
2.5 million DWT.
As of April, the
number of ships was only 570 compared to last year, when it was 1,755. The
Vietnam National Shipping Lines (Vinalines) decreased their fleet by 13.
Official
pledges more support for farmers
In order to improve
farmers’ incomes, it’s necessary to work out detailed policies which will
bring about practical benefits instead of vain promises, one official has
said.
Nguyen Quoc Cuong,
who has just been re-elected Chairman of Vietnam Farmers’ Association, said,
“The government’s recent policies and mechanisms have helped rural
agricultural development, aiding both farmers and production. But this has
not been enough in the eyes of farmers. Now we must hammer out more practical
policies that will better their situations."
According to Cuong,
the association would focus on vocational technical training. The past
programmes implemented were said to be ineffective.
Cuong said that
they provide training for one million rural labourers annually, 70% of whom
are expected to move to work in other industries, and 30% to remain in
agriculture.
"Our focus
will be to train farmers in their field and those who receive vocational
training will be put in programmes that meet the needs of society," he
added.
He emphasised the
importance of improving the business practices of agricultural workers and
endowing them with a sense of responsibility to the community and the nation.
Le Van Duan, a
delegate from
Nguyen Thanh Phong,
Chairman of An Giang provincial Farmers’ Association said that even though
most people in the locality do farm work and have helped ensure national food
security, they face many difficulties and are a vulnerable class.
“These people are
hard-working. Selling their products has been their biggest obstacle. Since
our rice has yet earn a name as a brand on the market, farmers are heavily
dependent on middle men to sell their crops," Phong said.
Vu Van Tham,
chairman of Quang
Vu Thi Lien Chau,
Vice Chairwoman of Lai Chau provincial Farmers’ Association, said farmers are
in desperate need for more support from from both the government and the free
market to reach a higher standard of living and improve in business.
Sales at
supermarkets slow due to high prices
Supermarkets are
likely to increase prices of many products following recent increases in
overhead such as worker pay and petroleum, causing worries among operators
that the price hikes may slow sales.
According to Vu
Vinh Phu, Chairman of the Hanoi Supermarkets Association, including both
recent rises in petrol, one litre of petrol is now VND1,000 more than before.
Since most goods bought in supermarkets are transported from the south,
petrol prices have an impact on the cost of products.
Wholesalers have
proposed increases of as high as 5% to 10% in coming weeks. The dilemma for
many supermarket owners is whether to pass on the higher cost to the
consumer, which could slow sales, or to take the losses.
A representative
from Intimex Hao Nam Supermarket said, "Currently, the prices of many
products at supermarkets are higher than they are in street markets. If these
costs continue to increase, we may not be able to complete. Right now we are
in negotiations with wholesalers for the best prices."
Prices of products
such as candies, beverages, fruits and clothes at supermarkets can be as much
as 20% higher than those in other markets.
Vu Thi Hau,
Director of Fivimart supermarket chain, said that many supermarkets receive
and sell goods on consignment, so if the producers' prices rise they will
have no choice but to pass the cost to the customer.
On the other hand,
food prices in many traditional markets have also been on the increase.
Heavy cost
burdens hindering export
At the seminar held
by the World Bank (WB) and the National Committee for International Economic
Cooperation on Thursday, Pham Minh Duc from the WB said the nation’s export
growth has averaged out an annual rate 17% over two decades.
Exports marked up
34% in 2011, 18% in 2012 and up to 20% in this year’s first quarter
regardless of global economic difficulties, he said.
However, these
successes are reaching their limits and are encountering lots of barriers
right in the country, from the lack of infrastructure to corruption practices
that cause the cost to swell up.
According to WB
infrastructure expert Paul Vallery, expenses that enterprises are paying for
logistics services in
“If
Expenses for
commodity stocktaking and warehousing amounted to US$261 million in 2012
alone, representing up to 15% of total container transport expenses in
Besides, many local
seaports are not yet used at full capacity, he said. Only 18% of the
potential of the new deep-water seaports at Cai Mep-Thi Vai is tapped at
present, which is projected to rise to 40% in 2020, and this has pushed up
the port’s expenses to a staggering US$1.2 billion, he stressed.
Foreign entities
must think twice over doing business in
WB chief economist
Deepark Mishra, meanwhile, ascribed the current costly logistics services in
At the seminar, Do
Xuan Quang, chairman of the Vietnam Logistics Business Association, noticed
transport fees account for up to 60% of logistics expenses and that the
nation is severely short of warehouses meeting modern criteria.
He pointed out the
inadequacy of infrastructure at home. For instance, he said, several ports
are built without being connected with passages and industrial parks like Cai
Mep, Hiep Phuoc and Cai Lan ports, resulting in a huge waste.
In the report
presented at the seminar, the WB proposes
No
fluctuation in deposits despite ceiling rate cut
There has been no
sharp fluctuation in bank deposits over the past week after the deposit rate
cap was lowered.
The ceiling
interest rate for Vietnamese dong deposits with terms of one month to less
than six months has been cut from 7.5% to 7%. There is no cap on the interest
rates for deposits with terms longer than six months.
Some banks like ACB
and Eximbank have brought down the interest rates for one and two-month deposits
to below 7%. Meanwhile, the rates for 6-12 month deposits are 7.2-7.5% per
year at most banks.
Nguyen Dinh Tung,
general director of OCB, said deposit volume had not swung too much to create
a trend. Citizens might have foreseen the deposit rate cut and do not feel
shocked, he explained.
As for U.S. dollar
deposits, he said there had been no marked fluctuation either although the
ceiling rate had been slashed to 1.25%. Total deposits in both local and
foreign currencies at OCB as of end-June had grown 16% over the same period
last year, he told the Daily.
Le Thanh Trung,
deputy general director of HDBank, also informed there had been no sudden
change in dong deposits.
Most clients are
still exploring the market. Some have switched to deposits with terms longer
than six months given the forecast that deposit rates would fall further in
the near future, he said.
A banker predicted
there would be no other interest rate cut this year since inflation had been
forecast at 6% and the cap of 7% ensured positive interest rates.
Dang Bao Khanh,
general director of SeABank, said that while the deposit rate cap had been
reduced, the exchange rate between Vietnamese dong and the U.S. dollar had
been adjusted up 1%. Therefore, people still want to keep the greenback in
hope of a price rise.
There has been no
considerable fluctuation in U.S. dollar deposits at SeABank.
Meanwhile, at
HDBank, deposits in the greenback dipped slightly. It is still too soon to
tell whether citizens will switch from dong to the U.S. dollar or not, said
Trung.
HDBank achieved
15.02% growth in deposits in the first six months.
On the day when the
deposit rate cap was lowered, the exchange rate was raised to VND21,036 per
U.S. dollar. After that, banks increased their greenback selling prices to
the ceiling level of VND21,246.
However, the
exchange rate in the free market on Thursday suddenly rose to VND21,600 in
the morning and then declined to VND21,580 in the afternoon, versus VND21,400
the preceding day.
The interest rates
for the U.S. dollar deposits were 1.25% at all banks. The U.S. dollar deposit
rate cut is one of the moves that the central bank has taken to gradually
reduce dollarization in
LPG storage
investment increased
A liquefied
petroleum gas (LPG) cold storage facility with capacity of 84,000 tons is
under construction in Long An Province and expected to start operating by the
end of 2014 to help stabilize LPG prices.
Speaking to the
Daily on the sidelines of the Asian LP Gas Summit 2013 in HCMC on Thursday,
Nguyen Si Thang, chairman of the Vietnam Gas Association, said that the
US$200-million project is invested by VinaBenny Energy Joint Stock Company.
PetroVietnam Gas South Corporation is among shareholders of the enterprise.
Some 20% of the
work has been completed and the storage is expected to start operating at the
end of 2014 or early 2015, Thang said.
Along with the
60,000-ton cold storage PetroVietnam Gas Corporation launched into operation
in March, the two facilities will meet LPG storage and import demands, help
stabilize prices and meet increasing demands of local consumers.
Thang said that
local demand is expected to hit two million tons of LPG each year by 2017.
The nation’s output is 600,000 tons, meeting around 40% of this year’s demand
estimated at 1.5 million tons, while the remaining volume will be imported
from other countries.
The nation now has
two gas production plants in Dinh Co in Ba Ria-Vung Tau Province and Dung
Quat in Quang Ngai Province. There are two more gas projects underway, Nghi
Son in Thanh Hoa Province and Long Son in Ba Ria-Vung Tau Province.
Government
draft vision to 2020 disussed
A seminar was held
in Ha Noi on July 3 by the Central Institute for Economic Management (CIEM),
the Government Office and the Ministry of Home Affairs to discuss a roadmap
for implementation of a Government draft vision to 2020.
This is part of a
project funded by the Swedish International Development Cooperation Agency
(SIDA) to build a roadmap for the implementation of the Vietnamese Government’s
vision.
The draft vision
covers issues related to the economic restructuring process in Viet Nam,
macroeconomic management and governmental modernization until 2020 with a
focus on improving administrative procedures and helping people get easier
access to information and services by smart cards.
Paul Collins, an
international advisor said the Vietnamese Government’s plan to bring 600
young intellectuals to remote areas shows its determination to narrow the
widening gap of development in these localities.
As a middle-income
country, he maintained, Viet Nam will receive less ODA funding than before.
If the country fails to stimulate economic growth, it will lag behind.
More
regulations to handle financial, securities crimes
The Ministries of
Justice, Public Security, Finance; Supreme People’s Court and Supreme
People’s Procuracy has promulgated Circular 10/2013/TTLT- BTP- BCA-
TANDTC-VKSNDTC-BTC to guide the implementation of some articles of the Penal
Code.
The Circular covers
regulations to handle crimes in tax, financial-accounting, and securities
areas.
The Circular is
scheduled to take effect since August 15 this year.
Business
types benefit from preferential customs
The Ministry of
Finance has promulgated the Circular 86/2013/TT-BTC to guide the application
of the priority regime in the State management of customs to eligible
enterprises.
These enterprises
include exporters of agricultural products, aquaculture, garments and
footwear and importers of materials for export production; and those certified
by the Ministry of Science and Technology as high-tech companies.
Beneficiary
enterprises must meet conditions relevant to law observation, tax payment,
revenue among others. They must apply accounting standards approved by the
Ministry of Finance.
Their annual
financial reports are verified by qualified auditing companies. They own no
overdue tax debts in two consecutive years.
The new Circular
will take effect since August 11, 2013.
Experts
urge caution in macro-economy control
Economic experts have
warned that Vietnam’s macro-economy must be controlled with caution as the
country faces an uphill task to achieve an economic growth of 5.5 percent, in
the context of tough economic conditions both globally and domestically.
In late June,
Director General of the General Statistics Office Do Thuc reported positive
signs in the national economy in the January-June period, with GDP growth
rate registering a quarter-on-quarter increase, while the consumer price
index inched up a mere 2.4 percent against December 2012, laying a solid
foundation to keep inflation below 8 percent this year.
The trade deficit
stood at 1.4 billion USD, equivalent to 2.3 percent of exports.
Head of the
Industrial Statistics Department Pham Hong Thuy said though the industrial
production index increased by only 5.2 percent in the first half of this
year, far lower than the 9.7 percent and 8.9 percent in the same period of
2011 and 2010 respectively, it is a fairly positive sign in the current
situation. In addition, the industrial sales index for the manufacturing and
processing sector rose 7.5 percent from the same period last year, bringing
inventories index to single digit.
Nevertheless, with
the 4.9 percent GDP growth in the first half of the year, the country must
achieve a growth rate of at least 6 percent in the second half in order to
fulfil the goal of 5.5 percent set by the National Assembly. This is expected
to be a very tough task.
The UN Economic and
Social Council forecast that the world economy could only pick up since 2014.
The situation is the same in Vietnam , when the essential goal is to control
inflation, stabilize macro-economy and strive for a suitable growth rate.
According to
analysts, Vietnam is likely to record an economic growth rate of 5.1 - 5.2
percent this year, lower than the 5.5 percent target. However, what is
important is the stability of the economy, laying the foundation for a
sustainable economic development over the long haul, not the growth rate,
they said.
GSO experts said
any economic stimulation move is not necessary at this time. Instead, the
Government should seek ways to mobilise social investment and drastically
shift the growth model away from capital and labour-intensive industries to
the sustainable knowledge-based model, and restructure the entire economy.
Samsung
seeks lower land rental
Samsung Complex in
northern Bac Ninh Province paid VND1.584 trillion (US$79.24 million) in tax
last year, according to the provincial People's Committee.
The information was
provided in a committee document sent to the People's Council. It asked for
financing from the State budget for investment in the infrastructure of Yen
Phong 1 Industrial Park to support the company's $1-billion-expanded project.
Samsung has
suggested the province help with 50 per cent of the land lease for the
expanded project.
According to the
People's Committee, the project was expected to boost Samsung's exports by $5
billion per year to about $17 billion, which would contribute to the
province's socio-economic development.
The project would
also contribute about $27.5 million in tax per year to the State budget while
creating jobs for 8,000 people.
According to the
General Department of Customs, about VND96 trillion ($4.57 billion) in taxes
was collected for the State budget in the first six months of this year, a
surge of 5.5 per cent year-on-year and meeting 40.4 per cent of the plan.
Thaco tax
deadline extended
The Truong Hai Auto
company (Thaco) was allowed to extend their deadline for paying import taxes
that are owed to the State, which amount to over VND1.2 trillion (US$75
million), from July 1, 2013 to June 30, 2014.
The approval was
given after Thaco reported that it currently has vehicles in stock worth more
than VND3.3 trillion ($157 million), and its debts to credit institutions hit
almost VND5.6 trillion ($267 million).
The economic
situation in Viet Nam and declining global markets have led to a drop in
worldwide car sales.
Source: VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VIR
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Thứ Hai, 8 tháng 7, 2013
Business
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