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BUSINESS IN BRIEF 17/9
2016-20
State budget released for 20 fields
The
Prime Minister has signed a decision on the criteria and distribution of the
Stage budget for the 2016-20 period.
According
to the decision, the State budget's development and investment fund will be distributed
to socio-economic infrastructure projects in 20 fields.
These
include agriculture-forestry-irrigation and aqua-culture, industry, trading
and traffic, as well as waste treatment, museums, culture and sports. Also on
the list are tourism, science, information services and technology, as well
as communications, education, health and food hygiene and society. Rounding
up the list are the environment and natural resources, State management,
national defence and the national reserve.
The
State budget's distribution must serve the implementation of development
plans for the 2011-20 socio-economic development strategy and the 2016-20
National Development Plan. The budget will also fund government-approved
long-term projects.
The
2016-20 State budget will give top priority to developing the mountainous
bordering island and ethnic minority areas as well as poor regions.
This
move aims to narrow the gap in income, living standards and economic
development amongst regions across the country.
The PM
has urged provinces and cities to allocate funds for expediting key projects.
The
PM's decision highlights the criteria for development and the distribution of
investment funds.
The
distribution takes five issues into consideration for each province or city.
These are population; development level; land acreage; the number of
districts; and other miscellaneous criteria, such as being a former base for
the war resistance effort or being a border region.
Vietnam-Japan
agricultural cooperation to thrive
Besides
new official development assistance (ODA) commitments, Vietnam and Japan
expect to sign a number of important cooperation deals in agriculture during
Party General Secretary Nguyen Phu Trong’s visit to Japan on September 15-18,
reported a newspaper.
The
thriving Vietnam-Japan relations have reached a Strategic Partnership for
Peace and Prosperity in
The
number of Japanese investment projects into
According
to the Foreign Investment Agency under the Ministry of Planning and
Investment,
Japanese
investors and local government leaders have held many meetings in recent
times. It’s noteworthy that more Japanese investors are keen on investing in
agriculture, especially hi-tech agriculture.
Yasuzumi
Hirotaka, JETRO managing director in
A
representative from Fujitsu Group, which supplies Akisai Cloud services in
agricultural management, told the newspaper that there is a huge potential
for agricultural cooperation between Japanese and Vietnamese businesses such
as management technology, processing, packing and distribution.
However,
to turn the opportunity into reality requires strong reform in investment
environment, particularly administration procedures, customs, tax, and human
resources, he said.
Bilateral
agricultural cooperation has witnessed significant breakthroughs in recent
times.
Shrimp
sector hopes to recover exports to US
Shrimp
exports to the
The US
Department of Commerce (DOC) has released the final results of the 9th period
of review (POR 9) on anti-dumping tariffs imposed on Vietnamese frozen shrimp
products from February 1, 2013 to January 31, 2014.
Accordingly,
the average tariff dropped slightly to 0.91 percent from 0.93 percent as
announced in the preliminary results in March 2015 but sharply from the 6.37
percent imposed in the POR 8.
According
to the Vietnam Association of Seafood Exporters and Producers (VASEP), the
Minh Phu Seafood Corp bears the highest rate at 1.39 percent (this figure has
been cut from the preliminary outcomes of 1.5 percent), Thuan Phuoc Corp at
1.16 percent (higher than the preliminary outcomes of 1.06 percent) and Sao
Ta Foods JSC at zero percent.
Secretary-General
of the VASEP Truong Dinh Hoe said the reduction in tariffs is partly due to
the DOC calculation of the tariff rates based on appropriate data from three
countries:
With
the new rate, Vietnamese shrimp exports to the
Furthermore,
contending with similar products, the reduction will help the shrimp industry
to increase its competitiveness in the
However,
it is difficult to forecast the exact shrimp export outcomes in the remaining
months of this year due to complicated consumption trends and exchange rates,
Hoe said.
He
added that the shrimp sector is facing competition from several countries,
such as
The
France
pledges to support Vietnamese firms in Paris
Representatives
from the Paris Chamber of Commerce and Industry and French businesses pledged
to facilitate Vietnamese enterprises’ operations in
The
event was jointly hosted by the Trade Office under the Vietnamese Embassy in
France and the Vietnam Chamber of Commerce and Industry (VCCI).
In his
speech to open the workshop, Trade Consellor at the Vietnamese Embassy Nguyen
Canh Cuong highlighted the potential for Vietnamese enterprises in the local
market thanks to the Vietnam-European Union (EU) Free Trade Agreement
(VEFTA).
He
also underlined the contributions of the traditional practice and customs to
facilitating access to investment opportunities in the host country.
The
Vietnamese diplomat suggested that Vietnamese firms actively participate in
France-based trade promotion events to connect with potential partners.
The
host affirmed that the EU attached significance to the trade relationship
with
French
experts noted that Vietnamese enterprises need to improve their product
quality to enhance their competitiveness.
Representatives
of the Vietnam-Cambodia-Laos-France (VCL – France Business Club), with nearly
2,000 members from 42 countries, also expressed their willingness to support
Vietnamese firms in the country.
Exports
from the
According
to statistics announced by the RoK government on September 15, exports to
On
September 14, the Korea Trade and Investment Promotion Agency (KOTRA) invited
17 major state-owned and private businesses to business sessions in
The
two countries also signed a free trade agreement in May, under which
The
RoK will do the same on 95.4 percent, or 11,668 out of the total 12,232
products, imported from
Trade
between the two countries exceeded 26 billion USD last year, the highest
value since the two established diplomatic ties in 1992.
Vietnamese
food, beverages on show at WorldFood Moscow
Fourteen
Vietnamese enterprises are showcasing the best of their agricultural products
at the international food exhibition WorldFood Moscow, which kicked off in
the Russian capital city on September 14.
The
event has attracted hundreds of businesses working in the food and beverage
industry from 36 countries and the host,
It
features 11 exhibition sections, including meat and poultry; fish and
seafood; fruits and vegetables; confectionery; oils, fats and sauces; dairy
products; and tea and coffee.
Canned
vegetables, frozen seafood, milk and beverages are among the Vietnamese
products being introduced at WorldFood Moscow.
A
notable exhibitor is TH Group, which is at the event to promote its dairy
products and seek partners to export its goods to
TH
Group Chairwoman Thai Huong said her company’s participation also aims to
improve the standing of
Last July,
the group disclosed its plan to invest over 1 billion USD in a dairy cow
farming and milk processing project in
Nguyen
Thu Thuy, Deputy Director of the Export Supporting Centre under the
Vietnamese Ministry of Industry and Trade’s Trade Promotion Agency, said
WorldFood
Moscow, held annually since 1992, will run through September 17.
Deputy
Prime Minister Vu Van Ninh had bilateral meetings with global economic
leaders in
While
meeting with Secretary-General of the UN Conference on Trade and Development
(UNCTAD) Mukhisa Kituyi, Deputy PM Ninh, who is also Head of the Inter-sector
Steering Committee for Economic International Integration, hailed the UNCTAD
for promoting economics in developing countries, including Vietnam.
He
also extolled its assistance to
Secretary-General
Mukhisa Kituyi congratulated
He
said the UNCTAD will continue to coordinate with
The
Deputy PM later met with WTO Director-General Roberto Azevedo, who recognised
the role of
In
recent years, Vietnam has worked to shift to a market economy with deeper and
wider engagement in the global economy, Azevedo said, adding that trade
activities have helped the country reduce poverty and improve local living
standards.
While
meeting with Deputy Director at the Advisory Centre on WTO Law (ACWL) Cherise
M. Valles and senior lawyer Leo Palma, Deputy PM Ninh highly valued the
cooperation spirit and goodwill of ACWL lawyers in supporting personnel
training in Vietnam in the short and long term.
He
said he hopes the ACWL will continue assisting
The
same day, Deputy PM Ninh participated in the 62nd session of the UNCTAD’s
Trade and Development Commission, which focused on the global development
strategy trend and foreign debt management.
Speaking
at the opening session, the Deputy PM said in 1990,
In
1993,
He
said he hopes through similar sessions of the UNCTAD, the Vietnamese
Government will have opportunities to learn about the debt management efforts
of other countries and the interests of foreign sponsors.-
Slow
localization rate troubles RoK manufacturers
The
The
Korean news service recently reported that though Samsung Electronics has
been operating in
In
addition, most of the companies making up the 36% are Korean-Vietnamese joint
ventures doing business in the country as opposed to businesses that are
owned and operated independently by Vietnamese.
At
present, 32 domestic companies are in the supply chain of Samsung
Electronics, four (out of a total of 90) are primary partners and 28 are
secondary subcontractors supplying parts via Korean invested companies.
The
concern by Samsung, and in particular its stockholders, is that the lower
levels of local firms in the supply chain has resulted in substantially
higher costs than anticipated due to increased costs associated with
importing.
For
calendar years 2013 and 2014 Samsung imported components costing US$15
billion and US$20 billion respectively and given the thin profit margins in
the industry the effect on bottom line profits is huge.
LG
Electronics has the same trouble Business Insider reported as it had
originally stated in its investment plan for the Haiphong Complex that it
expected its local component procurement would be at least 50%.
However,
only one Vietnamese company is supplying components to LG Electronics as of
now.
Under
the circumstances, the
"We
always welcome
Currently
Samsung is looking for local manufacturers to produce 200 different kinds of
components, irrespective of whether they are owned and operated by Vietnamese
owners or are foreign invested.
Deputy
General Director Nguyen Van Dao of Samsung Vina shared Young’s sentiments
explaining that Samsung is a global manufacturer and accordingly all
companies in its supply chain have to meet with international standards.
General
Director Han Myoung of Samsung Vietnam Sup in turn suggested prospective
Vietnamese companies that want to join the supply chain should continue to
work hard to meet the grade.
With
strong perseverance and determination they will succeed Myoung said, after
which it will be no big deal to become part of the Samsung production chain.
Wood
products rank second among exports to China
The
situation and trends of trading wood products between
Despite
For
the first half of the year, Vietnamese wood products fetched more than US$425
million from the Chinese market, ranking second among all Vietnam’s export
items to China.
Participants
argued that trade of wood products between Vietnam and China will be greatly
affected by free trade agreements (FTAs) regulations including China-ASEAN
agreements on the trade in goods and services.
To
Xuan Phuc from Forest Trends said that participation in FTAs will help the
government and business sector rearrange production models of the wood
industry and encourage more businesses to devise a sustainable production
strategy.
Despite
low inflation this year, the Government should remain cautious when offering
support to boost economic growth, said director of the State Bank of
Some
experts have recently suggested that the Government introduce monetary
loosening packages to boost economic growth, noting that the current consumer
price index (CPI) remained low. They were concerned that a further decline of
CPI could cause negative affects on the nation's economic growth.
According
to the General Statistics Office, for nearly the past decade, CPI in August
fell 0.07% against the previous month and rose only 0.61% against December
last year.
August
was also the third month this year, after January and February, which saw the
CPI reduced, compared with the previous month, the office reported.
According
to experts, if the index continues a downward trend it will not be suitable
for supporting growth in an emerging economy like
Admitting
that the inflation rate is currently low, Dong said that the main task of the
central bank was to stabilise inflation and the value of the Vietnamese dong,
and creating trust among the public, as well as domestic and foreign
investors.
Therefore,
Dong said the central bank needed to remain very cautious about offering
support packages, adding that a premature decision might only not help, but
could harm the Government's past success in controlling inflation.
Not
denying that a move to support economic growth at the moment was necessary,
Dong said support should come not only from the banking industry, but also
from other sources, such from the State budget or the capital market.
In
fact, Dong said, no country, anywhere in the world, required that only their
banking industry provide money for the purpose of economic growth. In other
countries, the main task of a central bank was to stabilise the macro economy
and inflation, Dong said, adding that the mobilisation of capital resources
for investment mainly came from other sources, such as the capital market.
The
banking industry should act only as a supplementary capital source for the
economy during a certain period, Dong said.
However,
currently in
The
ratio of medium- and long-term loans also remains high, accounting for up to
40% of the total loans.
These
ratios were high because
Vietnamese
brand to compete in powdered milk market
Late
last month, Nova has set foot in the powdered milk market with the launch of
the Anka Milk brand in cooperation with
According
to Nguyen Huu Liem, deputy chairman of Nova Group and chairman of Anova Milk,
the group’s subsidiary in charge of its milk operations, their primary target
is to raise the market share to 5% within the first three years. Powdered
milk is only the first step and will be followed by liquid milk and
milk-based dietary supplements.
Liem
is confident that Anova will be able to expand its distribution network as
Novaland, the real estate arm of Nova Group, is an investor in many large
real estate projects with tens of millions of residents in the future.
Nova
Group started the powdered milk project three years ago. In
“We
picked the children’s powdered milk segment because it is sensitive and
prices tend to fluctuate the most here. We want to create the most suitable
product to Vietnamese children,” Liem said.
Anova
Milk chose not to build a production and packaging plant in
The
cans that the milk comes in have traceability codes that enable consumers to
look up all information on each Anka product, from the origin of fresh milk
material to the quality verification process, manufacturing, the nutrition
formula, the manufacturing packaging date, as well as nutrition verification
and transport.
A
recent survey by Ipsos Vietnam on customers with children more than two years
of age in Ho Chi Minh City and Hanoi showed that 80% of them are at a loss
the first time they buy milk for their children, 66% do not know what the
criteria for good powdered milk are, 74% say the information on the label is
not enough to determine the quality of the milk, 78% say they will be more
confident if the product has a traceability code.
Competition
is tough on the powdered milk market with foreign brands making up 75% of the
more than 300 brands. Abbott has 120 products in
Nova
Group, formerly Thanh Nhon Ltd, was established in 1992 and has been
producing and trading veterinary medicine, aquaculture chemicals, and
pharmaceutical materials as well as building villas for rent. In 2007, the
company changed its name to Nova Group with two major fields of operation,
namely agriculture, with Anova Corporation, and real estate, with Novaland.
Dien
Bien Airport to have redesign, larger aircraft
The
Civil Aviation Administration of Viet Nam (CAAV) has asked the Ministry of Transport
to redesign
The
new layout aims at increasing the frequency of flights and to allow the
airport to handle larger aircraft, such as the Airbus A320/A321.
Explaining
the need for redesigning the airport, the CAAV's head, Lai Xuan Thanh, said
the airport currently only handles smaller aircraft traveling to Ha Noi –
Dien Bien or Hai Phong – Dien Bien, as opposed to mid-level flights to Da
Nang-Dien Bien and
Further,
the airport only sees four arrivals and departures per day, said Thanh.
Flights
are affected by local weather conditions and outdated navigational equipment.
Additionally,
the airport's runway is close to National Highway 12, causing safety
concerns, said Thanh.
According
to Thanh, at present many airlines, such as Vietnam Airlines, Vietjet Air and
Jetstar Pacific, plan to purchase Airbus A320/321 and larger aircraft from
2020 to 2030.
"However,
the current infrastructure of the Dien Bien Airport does not meet the
requirement for developing the airlines, as well as the demands of passengers
and goods being transported in the future", he said.
As
planned, the redesign will include a new runway and extending the current
runway, said Thanh.
The
VN,
French firms eye freer trade
Vietnamese
and French enterprises can join hands in utilising business opportunities to
be brought by the Viet Nam-European Union Free Trade Agreement (VEFTA),
instead of competing for them, an official said.
During
a conference in Paris on Monday, Nguyen Canh Cuong, Trade Counsellor at the
Vietnamese Embassy in France, suggested that domestic firms should learn
French business culture while actively participating in large fairs and
exhibitions in France such as those in garment, food and beverage, as well as
in the support industry and agricultural machinery.
These
events would help firms establish new partnerships and devise suitable business
strategies to catch up with opportunities that the VEFTA would offer, he
said.
French
experts at the event agreed that both
Nguyen
Thi Sinh from the VCL- France Business Club, which has about 2,000 members
from 42 countries, said that her club was willing to support Vietnamese firms
in doing business in France and co-operate with the country's enterprises.
Over
the past years, the value of Viet Nam's exports to France registered an
average annual growth of 5 to 7 per cent to 2 billion euros to 2.5 billion
euros (US$2.26 to $2.825 billion) a year, while its imports from the European
nation reached about one billion euros ($1.13 billion).
Key
products exported from
In
term of investments, French businesses have pumped $28 million into 14
projects in
State
agricultural firms planning share offerings
State-owned
agribusinesses are going down the equitisation path, with several already
completing their initial public offerings or close to doing so.
Vietnam
National Tea Corporation (Vinatea) will make an IPO of almost 11.8 million
shares today at the Hanoi Stock Exchange at a reference price of VND10,000
(US$0.44).
Nine
parties, including an institutional investor, have registered to buy slightly
more than the total number of shares on offer, according to HSX.
Another
1.6 million shares have been earmarked for employees and nearly 23.6 million
will be sold to strategic shareholders.
After
the equitisation, the company's chartered capital will be worth VND370
billion ($16.3 billion).
Earlier
this month the Vietnam National Vegetable, Fruit and Agricultural Product
Corporation (Vegetexco) sold 27.67 million shares to the public, raising more
than VND278 billion.
Vegetexco
will sell 60 per cent to strategic investors.
The
Ministry of Agriculture and Rural Development (MARD) has so far turned 10 of
its corporations into joint stock companies.
Valuation
of the Vietnam Forest Corporation and Vietnam General Corporation of
Agricultural Materials is underway, and their equitisation plans are expected
to get approval next quarter.
The
remaining three corporations earmarked for equitisation by the ministry will
complete the process next year.
According
to Deputy Minister of Agriculture and Rural Development Ha Cong Tuan,
equitisation of farming and forestry businesses face various difficulties,
and any solution that does not safeguard the interests of land-owning
households, the Government and the businesses would result in complaints and
even law suits.
Another
obstacle was that the agricultural sector did not make high profits, he said.
But
one encouraging sign was that large corporations like Vinamilk, TH Milk and
Vingroup were showing interest in the sector, he said.
Businesses
want to acquire entire companies that are equitised with one condition – the
companies should possess large areas of land for them to make major
investments and deploy new technologies.
Thai
Huong, chairwoman of dairy firm TH Corporation, said there were large areas
of idle farmlands but they were fractured into tiny lots, and acquiring them
one by one would take time and involve tortuous procedures, which put
potential investors off.
MARD
has established a working group to attract investment in the agricultural
sector, with the participation of tens of major companies.
One of
the group's targets is to work with local authorities on large land funds on
which investors could develop large projects, and this is expected to help
speed up equitisation of companies in the farm sector.
Power
prices stable for 2015
The
Electricity of Viet Nam (EVN) and the Viet Nam Coal and Mineral Industries
Group (Vinacomin) have assured electricity prices will remain unchanged until
the end of the year.
The
commitment was made following public concern about the possible electricity
price hike after these groups reported a loss caused by fluctuations in
foreign exchange rates.
Earlier
this month, three large conglomerates of the Ministry of Trade and Industry,
including EVN, Vinacomin and the Viet Nam Oil and Gas Group (PVN) reported
losses of trillions of dong as a result of changes in foreign exchange rates.
EVN
reported losses of around VND12 trillion (US$53.2 million) while Vinacomin
reported losses of around VND1.6 trillion ($71 million).
These
groups said they had borrowed large amounts of foreign exchange to invest in
big projects.
EVN
supplies 50 per cent of total power required in the country while Vinacomin
was the third largest power supplier in
However,
Deputy Director General of EVN Dinh Quang Tri told Viet Nam Television (VTV)
yesterday that the electricity price would be kept unchanged from now until
the end of the year.
The
group earlier proposed that the government put in place measures such as tax
reductions and relaxations to support businesses, as well as policies to help
them tackle the problems arising out of foreign exchange fluctuations.
The
Ministry of Industry and Trade, at a conference yesterday discussed
opportunities and challenges arising from free trade agreements (FTAs) to
garment and textile firms in northern
According
to Deputy Director of the ministry's Department of Export-Import Tran Thanh
Hai, cuts on duties for garment products from
However,
the ministry pointed out that the support industry for the garment and
textile sector had not met the demand as
If the
situation did not improve, it would be hard for Vietnamese businesses to take
advantages of the FTAs, according to the ministry.
Experts
also urged businesses to pay attention to the rule of origin to take
advantages of FTAs. Hai said that this, in turn, would create the impetus to
promote the development of support industries.
Dang
Phuong Dung, deputy president of the Viet Nam Garment and Apparel
Association, urged garment firms to apply technology in production to boost
the added value of products while promoting brand building.
Dung
also stressed the importance of information dissemination to enhance the awareness
of businesses about FTAs and be prepared.
The
garment and textile industry of
Customs
statistics showed that the total export value of the garment and textile
sector in
Tra
Vinh invests $640 million
The
Cuu Long (Mekong) Delta
The
province's Department of Agriculture and Rural Development said the projects
would include the building of dykes, bridges, sluice gates, irrigation works,
clean water supply systems and resident-relocation areas.
The
project also includes forest cultivation to respond to climate change, and
production of animal and aquatic breeding stocks and crop seedlings.
Fishing
ports and shelter areas for fishing boats will also be built.
After
two years of restructuring agricultural production, Tra Vinh has invested
VND588 billion ($28 million) to build 10 irrigation works for aquatic
cultivation and five dykes and embankments, among other projects.
Private
investors and local residents have also dredged and built 500 small
irrigation canals in fields with a total length of 350km.
Last
year, the province's agricultural production value reached VND8.7 trillion
($410 million), a record increase, and up 6.7 per cent against 2013.
Over
the past two years, farmers have converted more than 3,100 ha of rice fields
to other crop cultivation areas.
In the
2015-16 sugarcane season, Tra Vinh has developed the first two sugarcane
large-scale fields with a total area of 46.5ha and the participation of 67
households in Tra Cu District.
To
encourage farmers participating in large-scale sugarcane fields, the Tra Vinh
Sugar Company has provided sugarcane seedlings and loans and guaranteed
outlets for participating farmers.
The
company's agriculture officials have also offered instruction to farmers in
sugarcane cultivation methods.
Huynh
Van Thao, head of the Tra Cu Agriculture and Rural Development Bureau, said
sugarcane in large-scale fields had developed well with fewer diseases,
promising a high-yield harvest.
Tra
Vinh has been growing rice on a large scale since 2011.
The
province now has 27 large-scale rice fields with a total area of 4,236ha in
the districts of Tra Cu, Chau Thanh, Cau Ngang, Tieu Can, Cau Ke and Cang
Long.
Farmers
who participate in large-scale rice fields are given 40 per cent of support
for rice seed costs and farming techniques, reducing production costs by
VND1.3-2.5 million ($60 - $120) per ha.
The
Tra Vinh Food Company has also guaranteed to buy paddy from participating
farmers.
Tran
Van Quan, a farmer who participates in a large–scale rice field in Tieu Can
District's Phu Can Commune, said his family had harvested 0.7ha of
summer-autumn rice with a yield of 5.25 tonnes.
At the
beginning of the crop, the Tra Vinh Food Company signed a contract to buy
Quan's rice at a price of VND4,600 (20 cents) a kilo. After deducting all
production costs, Quan earned a profit of VND14 million ($630) from the
summer-autumn rice crop.
Tra
Vinh plans to increase the area of large-scale rice fields to 9,281 ha by
2020. All large scale-rice fields will be planted under Vietnamese Good
Agriculture Practices (VietGAP).
The
province has targeted that half of large scale-rice fields will be operated
by co-operatives by 2020.
The
province has also called on investors to develop areas to cultivate
high-quality rice for export, and corn, sweet potato and other cash crops, as
well as sugarcane and speciality fruits, in the 2015-20 period.
It is
also seeking investors to produce plant seedlings and seeds for cultivation.
The
provincial People's Committee will use VND62 billion ($2.9 million) to
support co-operatives to develop linkages in production, processing and sales
on a large scale.
Tran
Trung Hien, director of the province's Department of Agriculture and Rural
Development, said some companies inside and outside Tra Vinh wanted to invest
in large fields in agricultural production to have stable material areas for
production and trade.
However,
cooperation between farmers and processing companies continued to be
problematic as farmers often violated their contracts with these companies by
selling produce to traders at prices higher than those agreed to in
contracts.
Therefore,
companies had been reluctant to sign contracts directly with farmers, he
said.
Nguyen
Phu Si, deputy director of the Tra Vinh Food Company, said the province's
Cooperative Alliance and the agricultural sector should support farmers to
set up co-operatives and co-operative groups, and produce rice on a large
scale.
This
would help avoid the situation of small-scale, scattered production, he said.
Ministry
discusses customs, taxes with S Korean firms
The
Ministry of Finance spoke with Korean firms late last week to provide latest
updates in tax and customs policies and heard complaints faced by businesses
during the implementation.
Deputy
Minister of Finance Do Hoang Anh Tuan said that the conference, organised
annually, aimed to tighten the connection between the Government's tax and
customs department and Korean firms in
Tuan
said the Korean business community was the largest FDI business community in
He
pledged that the Government of Viet Nam would strive to create favourable
conditions for the business community in general and for Korean firms in
particular.
According
to Jun Dae Joo, Ambassador of the Republic of Korea to Viet Nam, quoted by
the Ministry of Finance's e-portal, the government listening to difficulties
encountered by firms was of great importance as the business climate was one
among the major factors to be considered when businesses chose destinations
for their investments.
Joo
believed that the two-way trade between
At the
conference, the General Department of Customs answered queries of Korean
firms about corporation income tax, individual income tax, and value added
tax, apart from tax refunds and tax reductions.
The
rumour that Samsung is redirecting its investments to
In a
document sent to Viet Nam News from SEV yesterday, the company said the
reason for the decrease of first quarter sales of SEV was that SEV introduced
lots of the CNC equipment to produce a Galaxy S6 and S6 edge with a metal
case. Therefore, there were some special circumstances in the first quarter,
but the full year sales of SEV would maintain last year's level, or were
expected to decrease slightly.
"In
addition, Samsung Display has decided to invest an additional $3 billion in
Bac Ninh. If Samsung Display's Bac Ninh plant gets fully operational,
industrial production in the
Earlier,
the province's report on its international integration showed that the
localisation rate of Canon was 65 per cent while that of Samsung was 36 per
cent.
It
said the FDI into the province last year saw a decrease, staying at VND23
trillion ($1.02 billion).
One of
the reasons for the decline was due to a decrease in Samsung's production and
exports.
Statistics
from the provincial Department of Customs showed that in the first quarter of
the year, total import and export value of Samsung Bac Ninh were $3.1 billion
and $3.6 billion respectively. Those in the same period last year were $5.1
billion and $5.6 billion respectively.
Samsung
Thai Nguyen posted a surge in import and export value of $3.7 billion and
$3.6 billion in the first quarter of the year. The figures in the
corresponding period last year were only $246 million and $77 million.
The
department said Samsung Thai Nguyen was a large scale company and enjoying
100 per cent corporate income tax waiver.
This
was the reason why it chose a low-cost production area in
Vietnamese
automobile sales in August decreased 10 per cent to 18,236 units compared to
July, reported the Viet Nam Automobile Manufacturers' Association (VAMA).
This
is seen as a sudden reduction in the domestic automobile market, which had
witnessed strong and continuous growth in sales since early last year.
However, part of the decrease was predictably reported, since August, or
lunar July, is known as Thang Co hon (month of lonely spirits) and believed
to be particularly unlucky – when people traditionally minimise their
purchases, especially vehicles.
Anticipating
slow sales, a number of automakers launched sales promotions in order to
maintain their sales or prevent a sharp decrease. For instance, Truong Hai
Automobile JSC (Thaco) had promoted Peugeot and many Kia brands, providing
increased insurance and offering service vouchers. In fact, customers of
Kia's New Sorento, Kia K3 and Kia Rondo could receive incentives worth VND65
million (US$2,888), VND30 million ($1,333) and VND24 million ($1,066),
respectively.
Thanks
to the promotion programme, the sales of Kia and Peugeot brands increased by
11 per cent and 28 per cent, respectively, in comparison with the previous
month. Meanwhile, almost all other VAMA firms saw reductions in sales.
However,
the sales growth in August was still 45 per cent higher than in the same
period last year.
Also,
VAMA reported that the growth rate in sales between imported completely built
units (CBUs) and complete knock down (CKD) units, which were
locally-assembled, continued to see a significant gap.
In the
first eight months of this year, the sale of CKD reached 105,267 units, an
increase of 54 per cent year-on-year. Meanwhile, CBUs saw 36,810 in sales, 67
per cent higher than the same period last year.
Imex
Pan-Pacific Trading eyes greater stakes in Sasco
President
of the Imex Pan-Pacific Trading Group Jonathan Hanh Nguyen has asked the
transport ministry's permission to purchase more stakes in Southern Airports
Services Company Ltd. (SASCO).
Imex
Pan-Pacific Trading Group plans to buy more stakes at Sasco, which deals in
air port services, including the supply of duty free shops. Photo
www.tinnongdulich.com
SASCO
is an affiliate of Airports Corporation of Viet Nam (ACV) and is among the
largest airport service providers in the country, operating airport duty-free
shops, restaurants, guest rooms and transport services.
Jonathan
proposed that the ministry allow his group to purchase more stakes in SASCO
when ACV, the largest shareholder in the company, withdraws its total
investment capital worth 51 per cent. The amount of shares sold by SASCO will
be decided by the ministry and ACV.
He
further pledged not to transfer the stakes bought from Sasco within a minimum
period of five years and to provide human resources training and management
technology transfers to help Sasco expand its market and improve the
efficiency of its business operation.
Imex
Pan-Pacific Group is currently a strategic shareholder of SASCO, with 16 per
cent ownership.
SASCO's
shares are being traded on the Upcom at a price of VND30,000 (US$1.3) per
share.
SASCO has
a charter capital of nearly VND1.32 trillion ($58.5 million). It reported a
year-on-year increase of 27 per cent in pre-tax profits in the first six
months of this year.
Last
year, the company earned more than VND2 trillion ($88 million) in turnover, and
VND92 billion ($4.08 million) in after-tax profits.
The
Imex Pan-Pacific Group has been working with the aviation sector for more
than 30 years, and has 25 years of experience in investing in and supplying
tax-free goods to several airports in
Vinachem
signs deal for salt mine project
Three
Vietnamese banks have signed a US$417 million agreement for the Viet Nam
Chemical Group that is developing a salt mine project in
The
The
three banks are the Viet Nam Development Bank (VDB), the Viet Nam Joint Stock
Commercial Bank for Industry and Trade (Vietinbank) and the Bank for
Investment and Development (BIDV).
The
loan deal will secure funding amounting to 80 per cent of the project
investment, in which BIDV will provide $161 million, Vietinbank $143 million
and VDB $113 million.
The
$522-million project, to be built over five years in
Vinachem
will also raise its own funds amounting to $105 million.
VEF/VNA/VNS/VOV/SGT/SGGP/Dantri/VET/VIR
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Thứ Năm, 17 tháng 9, 2015
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